Introduction to Foreign Exchange Markets

Being the main force driving the global economic market, currency is no doubt an essential element for a country. However, in order for all the countries with different currencies to trade with one another, a system of exchange rate between their currencies is needed; this system, is formally known as foreign exchange or currency exchange.In the early days, the system of currency exchange is supported solely by the gold amount held in the vault of a country. However, this system is no longer appropriate now due to inflation and hence, the value of one’s currency nowadays is determined through the market forces alone. In order to determine the value of a currency’s exchange rate, two main types of system is used which is floating currency and pegged currency.For floating exchange rate, its value is determined by the supply and demand of the global market where the supply and demand is bound by all these factors such as foreign investment, inflation and ratios of import and export. Normally, this system is adopted by most of the advance countries like for example UK, US and Canada. All of these countries have a similarity where their market is well developed and stable in economic terms. These countries choose to practice this system due to the reason where floating exchange rate is proven to be much more efficient compared to the pegged exchange rate. The reason behind this is because for floating exchange rate, the market itself will re-adjust the exchange rate real-time in order to portray the actual inflation and other economic forces. However, every system has its own flaw and so does the floating exchange rate system. For instance, if a country suffers from economic instability due to various reasons such as political issues, a floating exchange rate system will certainly discourage investment due to the high risk of suffering from inflationary disaster or sudden slump in exchange rate.Another form of exchange rate is known as pegged exchange rate. This is a system where the value of the exchange rate is fixed by the government of a country and not the supply and demand of the market. This system is called pegged exchange rate because the value of a country’s currency is fixed to another country’s currency. As a result, the value of the pegged currency will not fluctuate unlike the floating currency. The working principle behind this system is slightly complicated where the government of a country will fixed the exchange rate of their currency and when there is a demand for a certain currency resulting a rise in the exchange rate, the government will have to release enough of that currency into the market in order to meet that demand. However, there is a fatal flaw in this system where if the pegged exchange rate is not controlled properly, panics may arise within the country and as a result of that, people will be rushing to exchange their money into a more stable currency. When that happens, the sudden overflow of that country’s currency into the market will decrease the value of their exchange rate and in the end, their currency will be worthless. Due to this reason, only those under-developed or developing countries will practice this method as a form to control the inflation rate.However, the truth is, most of the countries do not fully practice the floating exchange rate or the pegged exchange rate method in reality. Instead, they use a hybrid system known as floating peg. Floating peg is the combination of the two main systems where one country will normally fixed their exchange rate to the US Dollars and after that, they will constantly review their peg rate in order to stay in line with the actual market value. The Foreign exchange market, or commonly known as FOREX, is the largest and most prolific financial market because each day, more than 1 trillion worth of currency exchange takes place between investors, speculators and countries. From this, we can deduce that the actual mechanism behind the world of foreign exchange is far more complicated than what we may already know, and that, the information mentioned earlier is just the tip of an iceberg.

4 Tips For Choosing a Reputable Forex Broker

Finding a Forex broker is a tough process to navigate through and for most people, the necessity of outside assistance is needed. Trying to trade in the Forex market without a broker could lead to devastating results for the normal trader. Similarly, hiring the wrong Forex broker can lead to the same result as trying to muddle through it alone. It is highly important that you be diligent in researching any prospective brokerage firms to handle your financial portfolio.A good Forex broker will supply you with clients that were successful and can attest to the specific broker's qualifications and success history. Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client history testimony should be present in any prospective Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the deciding factor.Another good morsel to test the reliability of any potential Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a good history or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a potential Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.A good avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you prospective referrals to great Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before committing to any formal agreement.The other factor in finding a good Forex broker is the margin of return that is offered. A Forex trading margin used to influence your money and many Forex brokers offer different margins. Finding a Forex broker, who gives a margin of ten to one isn't a very good find so it's worth the time to reinvest in research. Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching.

How to access the best Forex Training program

Forex stands for foreign exchange. It is the largest trading market of the world with an average daily trade of US$ 2 trillion and above. The market is held in high esteem for its long working hours, geographical dispersion and extreme liquidity. A trader with basic knowledge regarding forex trading can easily earn substantial profit in forex market. And to get the knowledge of forex trading, a trader can mull over forex training programs. Following is a brief note about the nature and worthiness of forex training programs. Forex training programs are available everywhere. Several forex firms have come up with forex training courses which are designed to boost a new trader before he lands in the forex market. The best place to get forex training is online. Just a single click will help you identify forex firms, who specialize in offering forex training programs through online method. With their help, you can get the basics of forex market and learn the ways to combat the odds of the forex market. Online method of forex training is good for newcomer for it helps him to get prepared with nuts and bolts of the trading market. Except online, a trader of forex market can also avail training programs from traditional classrooms. Several schools and colleges have been established to offer up to date information regarding forex trading to traders. Such training programs will help you get the basics of the forex market from its root. You can get practical experience of the trading market directly from the experts. You can also find quality books on forex trading written by experts from your nearest library. Experienced professional can also become good source for your forex education. Search out those, who have years of experience in forex trading. They can tell you what matter in the market and when to trade for earning substantial profit. Now, while selecting a forex training program, you need mull over a few important things. It is important for you to be sure about the worthiness of your forex training program. A good forex training should address the basics of the market. It should tell you how the forex market actually works. It should also talk about the risk control measures of fx trading. A good forex training program should also teach you the techniques to manage a forex trading account. With access to a good forex training program, you get a scope to remain up to date about the latest happening of the trading industry. Here, you get a scope to learn from the masters, who have years of experience in forex market. Forex training is always beneficial for a trader, even if he has a few months of practical knowledge in forex market. And for a new comer, it is a blessing.

Online Forex Trading - The Basics

Forex trading has become extremely popular the world over and has people from all different countries and backgrounds trading like only the professional traders could do just a short time ago. Until recently Forex trading was performed mostly by major banks and large institutional traders. The technological advancements that have occurred of late have transformed Forex into the playground of average traders like you and me.
It-s easy to find an online FX trading system, platform or software that can make it easy and fun to trade the market. Simply browse the web and you will be inundated with many exciting offers and promotions. There are many firms that sell or even give away free training software, charts or other useful tools for your future in Forex trading.
Foreign currency trading is done in pairs or combinations. For example, trading the Dollar versus Yen, the Euro vs. the Dollar or the British Pound against the dollar. The most popular currencies that are used for trading and investment purposes are the United States Dollar (USD), Japanese Yen, British Pound, Euro and Swiss Franc. The make up the major portion of all currency trading.
When you come across these currencies in the market you will see them written as a pair: USD/JPY (U S Dollar and Japanese Yen), EUR/USD (Euro and U S Dollar), USD/CHF (U S Dollar and Swiss Franc) and GBP/USD (British Pound and U S Dollar).
The vast majority of all day trades of foreign currency involve these five major currencies. Your goal as a trader is to pick out which currency will appreciate against another. If you can find or develop a system that will allow you to choose the correct direction a currency will be taking it is possible to make good profits in the FX market.
Most trades on the FX market are done by Forex brokers and dealers at major banking institutions across the globe. And since it is a world wide market that makes it a 24 hour a day market. The brokers or dealers work in different shifts so that major institutional traders can perform their trades 24 hours a day around the clock.
However, don-t be alarmed. You do not have to be awake all day and all night to trade the market. It is a simple matter of placing stop orders with brokers to buy or sell at pre-determined price levels even while you are sleeping. If your pre-specified price points are met the order will go through as planned. If your price points are not met the orders will not be placed or carried out. This is the key to stopping potentially big losses. You-d hate to be asleep when the market turned against you without a way to get out. Having specified price levels can save you a lot of stress in the market place. With stop orders you don-t have to constantly follow your currencies every second of the day. You can place your orders and then go about your normal daily routine.
The FX is unlike stock exchanges in that stock exchanges can be very volatile. The FX market is ordinarily a great deal smoother and doesn-t gyrate up and down as quickly or rapidly. The market is actually very easy to trade and is very liquid, meaning you can get your money in or out at any time. Placing an order can be done in a matter of seconds. If you have the temperament for this type of activity it can be a very worthwhile endeavor.

Forex Charting in the Stock Market

Forex stock is the top Foreign-American trading system. People that trade in these stocks will often use charts. Most traders invest in companies and will often use Forex strategies to choose when the right time to sell is or trade stocks, as well as when to buy stocks.Forex charting however changes its patterns in the stock market exchange.Stock markets often have highs/low cycles, which at what time the markets is at the lowest, the stocks send indicators, which help traders, to know the best, time to buy or sell stocks, nor is it the best time to trade.The stock market is different in a few ways from the Forex market. The patterns change, since when the market is low in Forex exchange, traders still have a potential of winning during the buy/sell, or trading phrase.The Internet makes available FREE Charts in Forex, which you can download. Use these charts as a guide before you invest in stock markets.Download the charts. Monitor the charts closely to learn how Forex markets work. The Forex charts often pay close attention to foreign markets in addition to the American markets.You will notice in the charts change in the market, which include the sell/buy, trade, asks/bids, etc. You will also see when investors are trading amidst companies and foreign countries.Forex charts have menus. The menus enable traders to shift between multiple companies. Forex charts also provide you tips, which you can use to understand the high/lows in stock marketing, as well as the right time to sell, buy or trade.Use the Internet to find help in relating to stock market or Forex charts. Look for the current currencies online. Forex charts will focus on these currencies, which include “EUR/USD, EUR/JPY, USD/CAC, GBP/USD,” etc. Forex charts will guide you through the stock rates. You will learn about bids/ask, highs/lows, pips, spreads, and other stock details.

Stock Market Money Management Skills

Let's start by saying: You can't be afraid to take a loss. The investors that are the most successful in the stock

market are the people who are willing to lose money.Having a strategy and/or a specific philosophy is an excellent starting point to investing but it won't mean a thing if you can't manage your money. As I have said a million times: without cash, you can't invest.Most investors spend far too much time trying to figure out the exact pivot point or perfect entry strategy and too little time on money management. The most important aspect to investing is cutting your losses, 90% of the battle is won by protecting your capital, regardless of the strategy.Most successful money managers only make money 50-55% of time. This means that successful individual investors are going to be wrong about half the time. Since this is the case, you better be ready to accept your losses and cut them while they are small. By cutting losses quickly and allowing your winners to ride the up-trend, you will consistently finish the year with black ink.Here are some methods that can help you with money management:Set a predetermined stop loss (you must know where to cut the loss before it happens ¡°this will help control emotions when the time comes)." A 7-10% stop loss insurance policy is best. Tighten the stop loss range in down markets and loosen the range in strong bull markets.Establish smaller positions if your account has had a recent losing streak (the losses may be telling you important information such as a critical turning point, it may be time to sell and get out).If you think you are wrong or if the market is moving against you, cut your position in half ¡°this is the best insurance policy on Wall Street."If you cut your position in half two times, you will be left with only 25% of the original position ¡°the remaining stock is no longer a big deal as your risk is very low."If you sell out of a trade prematurely based on a minor correction, you can always reestablish the position again.Initial position sizing plays a big part in money management ¡°don't take on too big of a position relative to your portfolio size. Novice investors should never use their entire account on one trade no matter how small the accountKnow when you would like to get out of a position after a considerable profit has been made. Signs of topping could be a climax run, a spinning top or higher highs on lower volume.Finally, cut any trade that doesn't act the way you originally analyzed it to act.With these guidelines, you will be well on your way to solid money management skills that will help you profit in Wall Street year in and year out. Always remember, you are going to take-on losing trades at least half of the time. This is a tough concept to accept for most novice investors but it a fact. If you don't cut losses, you won't be investing for very long as you will run out of cash and the desire to continue to invest.

Forex Top Ten

FOREX TOOLBOX

SigmaForex Provide Traders With Premium Forex Trading Tools that are useful for Advanced, Professional And Beginner Traders. Technical and Fundamental Analysts are working in developing these tools to meet our clients with highest levels of satisfaction.

There are a number of different tools in the forex trader's toolbox and one of the most important is the forex chart. In its simplest form, a forex chart is a graph of the performance of a currency pair over a set time period. Reading a forex chart is central to any trader's business and so it is important to be able to read them and to understand just what they mean.

A forex chart is plotted for a single currency pair such as the EUR/USD or AUD/CAD and shows the movement of the currencies concerned against each other over time. For instance, a EUR/USD chart shows you how the US dollar and Euro have moved against each other over the period for which the chart has been drawn.

Along the bottom of the chart is the timeline that can for example be divided into 15 minute, one hour, one day, one week, or longer time periods. Going up the right-hand side of the chart are incremental values that are usually set to run from a bit below to a bit above the bottom and top prices attained during the period in question. For example, for a EUR/USD chart the values may run from 1.2534 at the bottom to 1.2564 at the top.

A forex chart is useful because it gives a very clear and easy to read picture of how a currency pair is doing and you can see at a glance whether a currency is strengthening or weakening so that you can act accordingly. The selection of a time frame for a chart is also important as a short time scale can help you to see very minor trends while a long time scale can help you to identify longer term trends.

FOREX FUTURES AND STOCKS

SigmaForex helps private and institutional clients achieve their trading goals by offering an inclusive forex trading package, along with the state-of-art trading platform, real-time news and wireless access. We relegate to meeting and exceeding our customers' expectations with the utmost professionalism and integrity.

SigmaForex sums up the most important differences between foreign exchange market and futures marketare in :

Foreign exchange market against futures market

Liquidity

Forex market: close to two trillion dollars of daily volume.
Futures market: around 400 billion dollars on a daily basis.

Transaction costs

Forex market: Commission for free and narrow margins.
Futures market: the high fees committees.

Margin

Forex market: the fixed exchange rate, on the sidelines of every position.
Futures market: different levels of attitudes overnight on the sidelines of today's time positions.

Trade execution

Forex market: immediate implementation.
Futures market: consistent implementation.


All this makes the foreign exchange market very attractive to investors and traders. But I need to make something clear, despite the benefits of commercial foreign exchange market is notorious; it is still difficult to achieve commercial success foreign exchange market. It requires a lot of education, discipline, commitment and patience, like any other market.

FOREX CURRENCY

The forex market has been rapidly growing since the internet has grown into just about every home. Every person from around the world would love to make a second income, so this is the best place to start. You get to work in your spare time and make a good income. That’s not to say that it is easy. It takes time to learn and time to grow as a trader. One of the best teachers is experience. You’ll learn a lot when you start trading, just remember to stick to my advice and you’ll do fine.

You’re going to have a demo account available to you. As the currency trader, you’re going to want to try this out until you feel comfortable trading. It’s just a very good real simulation, except you don’t have to risk any money. I encourage people to use this until they feel good with their trading. There is no rush to put money in the market because you can lose it pretty fast if you’re not ready.

I think another important factor is cutting your losses. You’re going to have bad trades, just like everyone else. You need to learn to limit their damage. That’s why I set a stop loss point before I make the trade. Basically, you decide if the trade goes down to “x” value, you’ll sell it. It’s a simple and objective way of protecting your bottom line.

Profitable Forex Profitable Forex Trading A Beginners' Guide Downloadable Ebook and 47 Minutes MP3 Audio with Basic Tips and Special Tactics on Cur

Benefits of Forex Membership Sites

Forex Membership Sites - What They Offer

This article discusses what you can gain from joining one of the many online forex membership sites.

There are quite a few forex membership websites on the internet nowadays. There are sites that offer a one-off lifetime membership for a specific system or service, and there are monthly membership sites where you have to pay to remain a member. So what do these membership sites actually offer?

Well let’s start off my discussing one of the most common forex membership sites and that’s forex signal providers. If you do a search for ‘forex signals’ on the internet you will find hundreds, if not thousands of these sites. It has to be said that most of these sites are generally quite poor and do not offer the kind of profits that they claim to, but there are a small number of companies that do provide reliable, and more importantly profitable forex trading signals.

These sites appeal more to traders who haven’t been able to come up with their own profitable trading system, or those people who simply don’t have the time to watch and trade the markets all day themselves.

Similarly there are other membership-type sites that appeal to this type of trader and that’s automated trading robots. Although most can be purchased for a one-off fee, some of the more expensive and profitable robots require continuous monthly payments in order to pay for the license to continue using the robot or software.

Other forex membership sites are geared more towards those people who actually want to learn how to trade themselves. These websites tend to offer plenty of learning material and trading resources to help you become a profitable forex trader. Examples of some of the services offered includes videos, seminars, ebooks, trading systems, daily updates and one-on-one coaching.

These forex membership sites can become quite costly if you remain a member for several months. However they can also be invaluable because you will often get the chance to chat with, and learn from, the trading professionals and mentors behind the membership site as well as your fellow members via chatrooms and forums.

So overall forex membership sites can be extremely beneficial whether you simply want forex trading signals delivered to you, or want monthly use of an automated trading system, or if you simply want to learn how to become a profitable forex trader yourself. All of these sites are designed to help you make profits from forex trading so if they are successful at achieving this objective then they will more than pay for themselves.

For reviews of individual forex membership sites please click here to read James Woolley’s Forex Brotherhood review and Traders Club review.

Intermarket Analysis of Forex Markets

Most traders stress the role of fundamental information and historical single-market price data in analyzing markets for the purpose of price and trend forecasting. Traders do need to look back at past price action to put current price action in perspective, but they also need to look forward to anticipate what will happen to prices if their analysis is to pay off in the real trading world.

To be able to look ahead with confidence, however, traders need to look in one other direction, and that is sideways to what is happening in related markets, which has a major influence on price action in a target market. What are the external market forces that affect the internal market dynamics – the intermarket context or environment in which the market you are trading exists?

Moving beyond single-market analysis

Forex Options Market Overview

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large internationalcorporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market.However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forexoption market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currencyexposure via telephone or online forex trading platforms.

Forex Rates

Foreign currency exchange rates are what it costs to exchange one country’s currency for another country’s currency. For example, if you go to England on vacation, you will have to pay for your hotel, meals, admissions fees, souvenirs and other expenses in British pounds. Since your money is all in US dollars, you will have to use (sell) some of your dollars to buy British pounds.

Assume you go to your bank before you leave and buy $1,000 worth of British pounds. If you get 565.83 British pounds (£565.83) for your $1,000, each dollar is worth .56583 British pounds. This is the exchange rate for converting dollars to pounds.

If £565.83 isn’t enough cash for your trip, you will have to exchange more US dollars for pounds while in England. Assume you buy another $1,000 worth of British pounds from a bank in England and get only £557.02 for your $1,000. The exchange rate for converting dollars to pounds has dropped from .56583 to .55702. This means that US dollars are worth less compared to the British pound than they were before you left on vacation.

Assume that you have £100 left when you return home. You go to your bank and use the pounds to buy US dollars. If the bank gives you $179.31, each British pound is worth 1.7931 dollars. This is the exchange rate for converting pounds to dollars.

Theoretically, you can convert the exchange rate for buying a currency to the exchange rate for selling a currency, and vice versa, by dividing 1 by the known rate. For example, if the exchange rate for buying British pounds with US dollars is .56011, the exchange rate for buying US dollars with British pounds is 1.78536 (1 ÷ .56011 = 1.78536). Similarly, if the exchange rate for buying US dollars with British pounds is 1.78536, the exchange rate for buying British pounds with US dollars is .56011 (1÷ 1.78536 = .56011). This is how newspapers often report currency exchange rates.

As a practical matter, however, you will not be able to buy and sell the currency at the same price, and you will not receive the price quoted in the newspaper. This is because banks and other market participants make money by selling the currency to customers for more than they paid to buy it and by buying the currency from customers for less than they will receive when they sell it. The difference is called a spread and is discussed later in this booklet.

Forex Analysis

While some analyze their portfolios based on profit or loss; in the world of the FOREX Exchange, FOREX Analysis is one of the most important Keystones to successful investing. FOREX Analysis helps both large corporations, central banks, and private investors make the crucial choices to guide them to successful speculation and investment. FOREX Analysis sifts the reams of data, mountains of new articles, and miles of charts and reports to determine the most successful strategy to capitalize in the rates of exchange that are the means of transaction in the FOREX Market.FOREX Analysis takes a comprehensive look at both statistical and non-statistical information and weighs these factors with an eye towards seeking profit in the currency transactions between two countries. For instance let's say we are seeking to make a profit off the movement and conversion of Russian Rubles into British Pounds.Using FOREX Analysis we can determine who, or rather which end of the deal, can provide the most profit return to the eager investor. FOREX Analysis determines the cost and benefit of these investment strategies, and as we all know, this is crucial to determining the extent of investment and the potential for profit; otherwise why commit any funds, if not to reap the return on a much larger amount?FOREX Analysis is made much easier to the average investor if he has access to a brokerage, or a statistical information gathering service. The sheer volume makes collection on the most narrow of invest opportunities almost beyond the scope of the private individual. So having access to the best FOREX Analysis available can make the difference, and for that mater should be the rule of thumb, in considering any investing decision within the FOREX Market.The future of your money is going to be determined either by you or by the erosion of time. Using FOREX Analysis you can place safeguards not only to hedge the amount of your fortune, but also to increase the size and growth potential of your money. In short FOREX Analysis is a key essential to strategic successful investing.

Stock Trading

Stocks are shares of ownership in companies. People who buy a company’s stock may receive dividends (a portion of any profits). Stockholders are entitled to any capital gains that arise through their trading activity—that is, to any gain obtained when the price at which the stock is sold is greater than the purchase price. But stockholders also face risks. One risk is that the firm may experience losses and not be able to continue the payment of dividends. Another risk involves capital losses when the stockholder sells shares at a price below the purchase price.A company can list its stock on only one major stock exchange. However, options on its stock may be traded on another exchange. Where a stock is traded depends on both the requirements of the exchange and the decision of the corporation. Each exchange establishes requirements that a company must meet to have its stock listed. For example, to be listed on the New York Stock Exchange, a company, among other things, must have a minimum of 1.1 million shares outstanding with a market value of at least $100 million. But not all companies that satisfy NYSE requirements apply to have their stock traded on this exchange. Intel and Dell Computer, two very large and well-known corporations, satisfy NYSE requirements but choose instead to have their shares traded on the over-the-counter Nasdaq.The different exchanges tend to attract different kinds of companies. Smaller exchanges, such as the Nasdaq, typically trade the stock of small, emerging businesses, such as high-tech companies. In the United States, the AMEX lists small to medium-sized businesses, including many oil and gas companies. The NYSE primarily lists large, established companies.Most security trading is accomplished through brokerage firms. Persons and organizations that wish to purchase securities will call upon the brokerage firm to execute their transaction. To actually conduct the transaction on the stock exchange, the brokerage firm must have a membership, called a seat, on the exchange. Stock exchanges limit the number of available seats, and the cost of a seat on an exchange is high. During 2002 the price of a seat on the NYSE ranged from $2 million to $2.6 million. Brokerage firms that have seats not only can complete trades on the floor of the exchange but also have the right to vote on exchange policy.Brokerage firms are willing to pay high prices for exchange seats because of the profit opportunities available from membership in an exchange. Profits can be generated from the fees charged for the execution of trades as well as from trading on the firm’s own account. There are, however, risks associated with brokerage firm activity. For example, brokerage firms can lose money if their clients default on margin loans (loans obtained to purchase securities).

What is Forex

We had heard a lot of forex trading, but we don't have enough time to know what is forex exactly, because it have a very big books and courses to read.

Forex (Foreign exchange market) is an international money market where free purchase and sale of national currencies are conducted. Forex as we know it today was formed in 1970s after the world's leading countries switched from fixed to floating rates. Forex is a worldwide market for buying and selling currencies. Forex is short for foreign exchange, so when you mention "forex market", you are referring to the foreign exchange market.

Forex traders are represented by thousands of trading institutions such as international banks, central banks of different countries and commercial brokers for all types of foreign currencies. Forex trading or currency trading is always done in currency pairs. Forex advantages 24 hour trading, 5 days a week with non-stop access to global forex dealers.

Forex currency trading for beginners should always include a discussion of the effects of trade imbalances on the price of currencies in foreign exchange trading. The average of forex day trading sales is $ 4 trillion, with constantly increasing volumes of funds for forex conversion operations. As at any stock exchange market, a trade on forex occurs according to the demand and the proposal of a certain instrument. Trading the forex allows the trader to profit from both rising and falling currency prices and this market is not subject to recessions.

In the Forex Market, the money is bought and sold freely; this is the exchange of one currency over another. Foreign exchange trading views a budget surplus as a favorable factor in the worth of a currency while a deficit can lower the value of a currency when trading forex. As mentioned above, the advancement of technology has made forex trading available through the web. The forex market gives traders the ability to leverage their returns by up to 400:1 times the capital in their trading account. The Foreign Exchange Market, also referred as Forex market or FX market, was established between 1971 and 1973, when various central banks around the world introduced a free exchange rate regime, letting the currencies fluctuate driven by the market. Unlike other financial markets, the Forex market has no physical location, no central exchange.

Trading was done by phone orders almost exclusively at one time and they still are today but not as extensively. This is called "trading in pairs", for example: the US dollar against the Japanese yen, or the English pound against the yen, and so on. Forex traders are represented by thousands of trading institutions such as international banks, central banks of different countries and commercial brokers for all types of foreign currencies. One great advantage of trading currencies is you can profit in up and down markets, it is just acceptable to trade to the down side “Short” as it is to the upside “Long”.

Basically, it is a very large market where only currencies are exchanged each time transactions are carried out in Forex, a currency is bought and one is sold at the same time.

When quoting currency pairs, the first currency is known as the base currency and the second as the quote, if you think the US Dollar is going to be stronger than the Japanese Yen, you would buy the base (USD) Hoping that it would rise and sell the USD when you wanted to exit the trade. On the market, a buyer of any particular currency pair is basically indicating their confidence in the economy of that particular country.

Learn Forex Trading, Which Forex Strategy Is Right For Me

Learning to trade Forex is not an easy task, but by no means is it difficult either. Learning to trade Forex does not require a great intellect or a college degree. Doctors have failed as traders and construction workers have become millionaires. Trading is all about discipline, determination and perseverance.

The key is to understand who you are as a trader and trade to your strength. Leveraging your strength can be magnified by deploying the appropriate Forex trading strategy. There are hundreds, if not thousands of Forex trading strategies out there. Logic will tell us that there is a currency strategy out there which leverages our strengths. It is not a one-size-fits-all world. To immediately cut to the chase and take away the magic, it all comes down to two basic Forex strategies; trend-following and range-bound. All Forex trading strategies use a variety of indicators and combinations, MACD, Moving Averages, Stochastic, Chart Patterns, Candlesticks, Pivot Points, Fibonacci ratios, Elliott Wave analysis, Bollinger Bands and the list goes on and on. Let's take away the magic again. These indicators and studies are merely measuring support and resistance and trend in the Forex market.

But which strategy really works? This is the age old question?

First, we must understand who we are as traders. Does our personality fit the pip sniper mode or does our disposition attract us more towards swing trading. Finding your trading personality will mean studying and experiencing the different time frames and associated Forex trading strategies. Over time you will notice a higher level of success and/or comfort trading one style over others. Pay attention! The market is telling you where your skill is more capable of extract consistent profits for the market. This is why journaling is so important to your Forex trading routine.

Secondly, if you are using someone else¡¯s strategy, a most of us are, deploy this strategy without change until you fully and completely understand all aspect of the strategy through back-testing and actual experience. As I was told; dance the dance you have been taught until you learn a dance of your own!

Don¡¯t fall into the trap of jumping from strategy to strategy or combining different strategies when the one you are using doesn¡¯t yield immediate success. This is only a recipe for disaster. Take the time to really understand the trading strategy. Study the components individually so a deeper understanding of the strategic mechanisms is mastered.

Above all, know when and when not to deploy this strategy. You will not find consistent success implementing a trend following system in a range-bound currency market.

So what¡¯s the right strategy for you? It is simple, the one that works. It doesn¡¯t matter if it is complicated or simple, trend-following or range-bound, uses Fibonacci studies, pivot points or both. If you understand the components, internalize its use, and drive consistent profits into your trading account, then you have your Forex trading strategy.

It doesn¡¯t matter what the experts say, your account balance is the ultimate judge and jury for your Forex trading strategy.

4 Tips For Choosing a Reputable Forex Broker

Finding a Forex broker is a tough process to navigate through and for most people, the necessity of outside assistance is needed. Trying to trade in the Forex market without a broker could lead to devastating results for the normal trader. Similarly, hiring the wrong Forex broker can lead to the same result as trying to muddle through it alone. It is highly important that you be diligent in researching any prospective brokerage firms to handle your financial portfolio.

A good Forex broker will supply you with clients that were successful and can attest to the specific broker's qualifications and success history. Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client history testimony should be present in any prospective Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the deciding factor.

Another good morsel to test the reliability of any potential Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a good history or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a potential Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.

A good avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you prospective referrals to great Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before committing to any formal agreement.

The other factor in finding a good Forex broker is the margin of return that is offered. A Forex trading margin used to influence your money and many Forex brokers offer different margins. Finding a Forex broker, who gives a margin of ten to one isn't a very good find so it's worth the time to reinvest in research. Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching.

Bollinger Bands Can Give You a Huge Trading Edge

One of the critical pieces of forex education for any Forex trader is to understand the concept of standard deviation of price and how to use volatility to their advantage.

If you understand the concept you can easily apply it with Bollinger bands which are an essential tool for all forex traders.
Let's look at why Bollinger Bands are so useful and profitable, when incorporated in your Forex Strategy.

If you don't know what standard deviation is simply check our article on the concept , right, let's take a look at Bollinger bands.

Bollinger Bands Defined:

Bollinger bands are simply volatility bands drawn either side of a moving average.

You calculate Bollinger bands using the standard deviation of price over the same period as moving averages the mean price, then the volatility bands are plotted above and below the moving average.

Moving averages are used to identify the underlying trend of currencies and Bollinger bands take this one step further by:

Combining the moving average of the currency with the volatility of the individual market (or the standard deviation) ¨C this then creates a trading envelope ¨C with a middle mean price (moving average and 2 x bands (expanding or contracting) either side that reflect volatility or standard deviation.


As prices move away from the longer-term average, the standard deviation rises - and thus the bands will fluctuate in varying amounts, away from the average.


Why they work:

In any market, the value of a currency traded tends to rise slowly over the longer term.

Prices can and do spike quickly in the short term, but will normally return to the longer term moving average - which represents fair value.


The standard deviation of the outer bands (how far they are from the mean) shows how far prices are from longer-term value.


Most price spikes are caused by trader psychology with greed and fear to the fore and this can be graphically seen with Bollinger bands.

So how should you use Bollinger bands?

There are 3 main ways to use them:
1. Spotting price spikes: When the bands are a long way from the mean you can use Bollinger bands as profit taking signal on existing trades or use them to spot contrary trades.

2. Enter exisiting trends: If you have a good trend in the forex markets then you can use dips to the middle band to buy at fair value.
3. Entering new trends: When prices are trading in tight range and start to breakout with a change in volatility a great new trend could be emerging.

Bollinger bands can certainly give you a new dimension to your forex trading strategy and any currency trading system can benefit from the extra insight that they can give you.

A word of warning:

Like all technical indicators you should not use Bollinger bands in isolation to enter trades, however combined with timing indicators such as, the stochastic or RSI, then you have a powerful combination for greater FX profits.


With regard to forex education, knowing what standard deviation is and how to apply the concept through Bollinger Bands, will give you a huge trading edge, so make sure you use them.

Cut Your Losses and Let Your Profits

Did you know that many successful traders win less than 50% of their trades? Yes, top traders know that they can be VERY successful winning only 40% of the time.

How can that be?¡± you ask. Simple, really. They are truly following the old adage of ¡°Cut Your Losses and Let Your Profits Run. Let's see how this might actually work.

Suppose you had a stock pick, and it hit your stop loss at 98% of your entry price, which gives you a loss. You pick another stock, and again, it hits your stop loss, for another 2% ding to your account. Third time¡¯s the charm, and your stock pick gains 15% before falling back and triggering your trailing stop at 10% above your entry price. In other words, you made 10%.

In this example, you had two losers and one winner for a win/loss percentage of 33%, yet you are ahead by about 6%. You let your profits run and cut your losses short.

It is not easy having more losers than winners, because you can easily find yourself with 5, 10 or even a string of 20 losses in a row. But those numbers are deceptive, because each loss will be fairly small.

Think of it in terms of baseball. A player can have only a fair lifetime batting average and still be a great player if he hits a home run when he finally does connect with the ball.

It takes confidence in yourself as a trader to work a stock trading system that only wins less than half the time. It¡¯s not easy to be wrong most of the time. But that is why the market rewards such a strategy so highly, if it is done right.

In other words, don¡¯t dismiss a system out of hand because it has more losers than winners. As long as the average win is significantly larger than the average loss, you can be very successful with such a system in the long run.

So keep this in mind as you are searching around for the right strategy for you. Many small losses and a few big winners can be much more profitable then a lot of little winners and a few large losses that take it all back and then some.

Difference between the forex market and the stock market

When trading is done in the forex market, it requires at least two or more than two countries and it can take place anywhere in the world. In this market, one country is the investor and the other country is where the money is invested. In the majority of the cases, the transactions are done through the broker, such as a bank.Importance of the forex marketThe forex market involves a variety of transactions and countries. The countries that are involved in the forex market do trading in large volumes and invest a huge amount of money. It takes money to make

Forex trading account registration

When you open a Forex trading account, you will be asked to give various personal details, including your credit card details, so you will be able to make real cash trades. Some sites offer Forex trading free training wherein you are not required to give out your credit details in order to open and use the demo account.In most cases Forex trading registration is done online, even though sometimes you are required to register by fax. This is uncommon though and only occurs for the smaller Forex trading sites.Forex

The Big Ben strategy

Big Ben is a currency-specific trading strategy designed to capture the first directional intraday move that often occurs within the first few hours after the Frankfurt/London market openings, which begin at approximately 1 a.m. ET. The strategy works best with the British pound/U.S. dollar (GBP/USD) rate.Because this currency rate trades lightly outside of London trading hours, the surge in trading every morning in the U.K. gives it a “Å“real” market opening, which the strategy looks to exploit. Figure 1 shows pound/dollar trading is virtually nonexistent during Asian trading hours. When London opens, however, the pound/dollar accounts for nearly one-quarter of all forex trading. Currency rates with more continuous, 24-hour trading will have less of a distinct open/close as they pass through the different money centers.

FOREX-KILLER

Forex-killer software package is very intuitive and easy to use and understand. Forex Killer provides you the exact information you need to buy sell or hold like no other software or trading system currently available.The package and the learning videos really set the standards.Anyone into trading will find this package a great tool and have a lot of success with it. Highly Recommended

Starting to use Forex economic indicators

To get started, you should first keep a log of all the important Forex economic indicators' release dates. Keep a log or make a subscription to one of the economic journals, so you'll know the most important factors of that time. If you are trading in JPY, the Forex economic indicators need to be relevant to the currency type, of course.Each economic indicator tells you about a different aspect of the economy, and this should be translated in turn into the predicted movement of the currency price. Make sure you understand which aspect the indicator is about. For example, know that the GDP measures the growth of the economy while the PPI measures inflation. Don't worry, with some experience this will come naturally

Forex Economic Indicators

The execution of fundamental analysis in the Forex market is done through the use of economic indicators. These indicators point to the state of some economical factors in the country whose currency you wish to trade with.Economic indicators are published by various sections of the government and private companies. These statistics are analyzed by market investors to predict the direction of the Forex trading market. Forex economic indicators are published at fixed time intervals, and are followed by any serious online Forex trader.Since so many people are tuned to use them, Forex economic indicators have a large impact on prices of currencies of the Forex trading market. Most traders do not use fundamental analysis because economic indicators seem difficult. This however is wrong because following simple guides can help you stay updated with the important Forex economic indicators easily

Mini Forex Account

Rapid and fair trade execution. Market orders are confirmed within seconds at prices clicked on or accepted by the client. Furthermore, GCI has a "zero slippage guarantee" for all Forex Stop and Entry Stop orders that are placed at least one minute before the market reaches your specified price.Zero commissions for all accounts. Client trading performance is enhanced by eliminating all commissions.State-of-the-art trading software. The GCI trading software provides real-time prices in 23 major currencies, 5 equity indices, plus gold, silver, and crude oil. Live charts, and real-time P&L and account equity tracking are fully integrated into the free software. Windows-based and Java-based versions are available

Basic status of japanese yen

Characteristically, the Japanese yen traded corresponding to shifts in risk appetite throughout the past week, with extensive losses in the stock markets assisting to enhance the currency. These relationships are expected to hold in the upcoming future, whilst fundamentals should not have the important role to take. Nonetheless, there is going to be a few of Japanese indicators released that might be interesting enough for traders. On Monday, the statements from the Bank of Japan’s December conference, at the same time as the Monetary Policy Board swiftly cut rates by 20 basis points to 0.10%, is going to be released. Considering this policy movement, statements within the minutes is probably to be very bearish on outlooks for the Japanese financial system, worldwide growth, and financial market circumstances. On Wednesday, retail trade numbers might show a sharp 0.8% decline in utilization in December, showing the 4th straight month of reduction and indicating fading domestic requirement

Free Daily Forecast Forex

The Forex system is a relatively easy one to understand at its basic level but it can also be as intricate as you can possibly imagine. What the system actually is, is a way of trading currency from various parts of the world. These currencies are always traded in pairs and you need to purchase one currency with another in the hopes of making a profit whenever the difference between the two moves in your favor. A good example of this is that people will buy euros with dollars or perhaps the yen with the American dollar as well.People who have done Forex successfully in the past, often caution individuals from jumping on board too quickly because the entire system can be a little bit unpredictable. Currency prices tend to change on a whim according to news stories or perhaps world events that happen which can affect the part of the world in which the currency is operative. This can either work in your favor or against you so it is definitely something that is not for those who are unwilling to take a risk. That being said, there are also some indicators that will give you a good idea of how well something will do, barring any unforeseen circumstances

Forex Network

Unfortunately, when a couple marries, there are larger loans that the couple thinks about – in order to further themselves in their financial goals. A mortgage is one of these loans. The income of both partners will allow them to obtain a larger mortgage, but – how will the less than great credit affect the outcome of the loan? The higher risk that a consumer appears to the credit card agency or mortgage agency – the higher interest rate that will be offered on the loan. There are many solutions to this problem. Simply waiting until better credit has been established, while saving a larger down payment could decrease the effects of the bad credit score on your partner’s side. Many lenders are more willing to work with potential homeowners that are offering a larger down payment that can be applied against the mortgage.

FX Trading Station Overview

Real-time streaming quotesRapid Trade ConfirmationsSpreads as low as 1 pipsHedging FeatureReal-time P/L trackingReal-time summary view of all open positionsAll relevant trading information displayed on one screenMultiple Leverage options*Customize fonts, colors, window size and location24-hour Internet and telephone trading

Forex Trading Support and Resistance Levels

In this Forex trading guide we will try to describe in detail exactly what support and resistance means in the following Forex trading lesson. Support and resistance levels are important indicators that can be used to set stop loss and take profit orders using technical analysis.Support levels are the places where the price of the currency is expected to rise. This happens when there is enough demand for the currency in order to stop the downtrend and therefore causes it to go up.In order to recognize support levels in Forex trading, take a look at the Forex chart, and try to find a few lows that fluctuate in a horizontal line. This line will be set as the session's support level.

Euro Trading Tips

Learn to identify trends and trading opportunities with the euro. See and discuss important chart patterns and current events with a euro trader.Learn the best time to trade the euro. Learn how to anticipate movements and confirm trends in the euro. Discuss what’s happening in the euro today with a Power Course instructor.DailyFX+ Live11:00 am EST (16:00 GMT) and 7:00 pm EST (00:00 GMT)Experience the power of DailyFX+ in a live video walkthrough!Discuss current market movements. Discuss the day's price action. Identify signals for immediate trading. How to use DailyFX+ to find trades

eMoney market account

It is a recognised fact that the current world economy is not doing great at the moment and therefore it is important for us to consider preemptive measures to secure our savings. This is to ensure that the future is guaranteed for us and our children. One of the ways to do so is through long-term fund savings that only certain reputable banks can provide. A Buffalo, New York-based bank called M&T Bank is now offering money market account services online. Saving has never been so easy and effective and you can find out more about their services through their website. With the current economic recession that the world is currently in, one certainly needs to go through all available options in order to ensure that your hard-earned money is saved and that guaranteed returns is assured.

Consumer Price Index (CPI)

This Forex trading economic indicator is published by the Bureau of labor statistics in the U.S. Department of Labor, every 13th of a month. The economic index is relevant for the passing month, and measures the price of a fixed basket of goods and services that is bought by consumers. This is the most used measure of inflation, an important tool for the Forex trading market.It is important to state that this Forex economic indicator does not measure technological commodities which change in price, and this is something the CPI has been criticized for.When you use the CPI to measure Forex trading price changes, you should always remember to take into consideration the movements in the food and energy prices, because they can change and rise or drop regardless of the Forex currency or the inflation levels

How to Choose a Forex Trading Website

So you've decided, rightfully so, that online Forex trading is a profit venue that you want to explore. This is a smart choice because of the earnings options and other advantages the Forex trading market offers.If you are wondering how to get started in the online Forex business just follow the following page guidelines and you'll be on your way to become a better forex trader.Choosing the initial forex broker is important even before you try them out and trade. To select the right Forex trading broker for you, you need to examine the following factors and then decide which forex broker suits you best.
Posted by hussainforex

DOUBLING STOCKS

Just in case you did not already know, it is the first commercially available stock trading robot made by the same guy in this case michael who made a similar stock trading picking robot for Goldman-Sachs which is now responsible for the over $4 billion in profits which they make. So why should you try Doubling Stocks?1. it is so easy to use to make money, all you have to do is to wait for the newsletter to come and it usually comes on the sunday of each week it might come late if there are not able to come up with any trades2. you have a 56 day guarantee, so you are free to try it out for almost 2months and if you still do not like it you are free to return it

Forex

Don't have the time to trade your own account? We believe a managed forex account can give an investor who cannot watch the market 24 hours a day an opportunity to participate in the exciting world of forex trading. A forex managed account is also ideal for those investors who prefer to have their capital managed by professionals. This is a viable solution for individuals or companies looking to diversify into Forex without hands-on involvement. It is an effective way for retail investors to benefit from the knowledge, resources and experience of an investment manager without

The aim of forex trading

The aim of Forex trading is to make profit with increasing or decreasing currency prices. A trade is place when you expect the value of a specific currency to increase. In a currency pair, when the currency you buy increases, you must sell the other currency to make a profit. An open trade, or open position, this a trade in which you have already bought or sold a currency pair, but have not yet bought back an the same amount. The five most popular currency pairs in Forex at the moment are USD/Yen, Euro/Yen, Pound/USD, Swiss franc/USD, and the Euro/USD.

Forex account activation and confirmation

Because we are dealing with real money accounts, you are required to verify your details and your email, through various needed steps. Before you sign the terms and conditions of the Forex trading account, make sure you understand what the site is offering. You should make sure you understand about the various conditions that include:- The Forex site's hours of operation and the availability of live support.- The bid/ask spread that the site offers for major currencies, in relation to what other sites offer.- Make sure that proper leverage is available through the margin per trade.- Find out about The minimum account size and lot size.- Check that there are no small print or hidden commissions that the site's operators prefer you don’t know about.- If you can, try out the Forex trading platform, as well as the charting and technical analysis options beforehand.- Check the general contract and make sure you save it along with the requoting policy on your computer.