Sunday, June 17, 2007

Forex Trading - Trading the Forex for Profits

Forex trading is the trading of different types of foreign currencies, sometimes just called currency trading.

While forex trading used to be limited to large banks and institutional traders, advancements in technology have allowed smaller traders to be able to benefit from forex trading as well, via the different online trading platforms now available.

About 85% of daily forex trading involves currency trading of the major currencies of the world, usually four major currency pairs. Currency trading usually involves the US dollar against the Japanese Yen, the British pound against the US dollar, the US dollar against the Swiss franc and the Euro against the US dollar.

Here's how those look in the forex trading market: USD/JPY, GBP/USD, USD/CHF, EUR/USD.

The idea behind profiting from forex trading is taking a position in a currency that you believe will appreciate against the currency it is paired against.

The FOREX is a world wid market, meaning it is basically open 24 hours a day. This eliminates the gaps you see almost every morning with tradional stocks. The FOREX market trades approximately $1.2 trillion every day, making it very easy to get in and out of your positions quickly.

Although the large majority of the focus in the investing world is on stocks and bonds, the currenty market is the oldest and largest financial market in the world.

So why trade the FOREX market?

* The FOREX market is open 24 hours a day

* The FOREX market is extremely liquid making it very easy to get in and out of various trading positions quickly

* The FOREX market is highly leveraged. While a margin account for trading stocks has a leverage of 2 (50% margin requirement) the FOREX market can have a leverage ratio of 400. Keep in mind that while this makes your upside potential a lot greater it also makes your downside risk a lot greater as well.

* The FOREX market is always a bull market because currencies are paired off against one another, which means there is always currency that is going up.

FOREX trading is a fantastic alternative to trading commodities and futures. Remember, though, that there is still a lot of risk and you need to educate yourself before starting to trade the FOREX market.

Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading

Free Online Forex Trading Courses

Over recent years online Forex trading has now become big business and certainly in the financial sector this is the biggest market of all in the world. The reason why this market has grown compared to the many other financial markets is because of the rise in the number of traders working online rather than using the more traditional method of trading by using the phone. Because of this increase there are a number of sites which are now offering to people the chance of learning about this through taking free online Forex trading courses.
However as with a lot of things in life today sometimes the best things in life are not for free and certainly the same could be said for many of these courses. When you are considering taking an online forex trading course, there are a number of things that you will need to take into consideration.
1. Who is offering this course?
2. Just why is it they are offering to provide you with a book to learn about Forex trading for free?
3. Are they actually offering this course because they are promoting a particular trading site and then want you to enroll on it?
4. Once you begin to read the book do you find that they are being extremely pushy when it comes to actually getting you to use a particular website to invest your money in?

The answers that you provide to the above questions will help to show you just how honest the information being provided to you for free is.
One way of discovering if the free online forex trading course that you are looking at is of the highest standard is by looking at how much of the information contained within it is replicated elsewhere. You will soon learn that a lot of the information you find in some of the free online forex trading course books can easily be found when you search the net.
So rather than using these books or courses to teach you how to trade on the Forex market instead use the advice and articles about the subject that are being offered on other sites. Plus why not join one of the many forums that have been set up and discuss your issues with some of the people here. They are people who have been trading on the Forex market for some time and will often offer you the best advice when it comes to finding a suitable course for learning about Forex trading.
Certainly the better free online Forex trading courses are those that do not limit themselves to telling you about how one company trades. Rather it should be providing you with views of all the sites that are available and which are run by established companies. Any such courses should be prepared to provide you with everything that you need to know about the world of Forex trading and not restrict you to using the services of just one or the abilities of one company.
Ricky Lim runs an online forex trading education site for beginners.
Visit his site today for more forex tutorials such as a free forex trading strategy
Article Source: http://EzineArticles.com/?expert=Ricky_Lim

Saturday, June 16, 2007

Learn About Forex Trading And The Easy-Forex Trading Platform

The Forex market is basically a worldwide currency exchange market which is similar to the stock market except instead of trading stocks you buy and sell currency pairs from different countries. It is one of the fastest growing markets on the planet with its daily turnover of more than 2.5 trillion dollars a day. This turnover is more than 100 times of what the NASDAQ exchange does daily.

Forex is a market just like any other market that trade goods. In this market you can buy Euro with American dollars or sell Japanese Yen for Canadian dollars. That is really all their is to the whole thing. Many veteran stock market traders have been turned on to Forex recently because of the fast profits that can be made in small fluctuations of currency prices.

How Do You Make Money With Forex?

The way that you make money from the Forex market is the really nothing more than buying a currency at a cheap price and selling it for more. The profit is from the very small fluctuations that take place in the currency exchange market.

The average daily fluctuations in the Forex market are around 1% but the investment profit are multiplied by over 100. If you bought a pair of currencies that increased by 0.3% in a couple of hours after the purchase your profit would be over 30% return on investment. This is a much bigger and faster rate of return compared to the average 8% the stock market gives to investors. The other great thing about the Forex market is that these returns can happen in one day or even a few minutes!

When investing in the Forex market you can never lose more than your margin. You can profit as much as you want but never have to risk more than you originally invested. You can choose the pair of currencies in any direction the market is moving in and still make a profit. Whether the exchange rate is moving up or down you can either buy Euro and sell dollars or buy dollars and sell Euro.

How Do You Trade In The Forex Market?

When you start trading in the market you can select a pair of currencies and decide the volume or the amount of the deal you wish to trade with. Next you deposit the margin which collateral is needed to complete the process. This is usually a tiny portion of the deal around 1%.

Before you decide to make the deal live you still have the option to "freeze" it for a few seconds. During this time you can change the terms, go through with it or forget about the whole deal. When you decide to accept the deal and it is running you hold an "open position" in which you can monitor the status of the deal. Once the deal is running you may change some terms or close it. By closing the deal you can take your profit or minimize ant losses that you might have incurred.

What Is The Easy-Forex Trading Platform?

The Easy-Forex Trading Platform allows investors to get started right away with Forex trading online without having to open accounts or fill out long forms and applications. Forex traders can deposit money instantly and start trading with a credit card or Paypal account.

Easy-Forex also provides investors with all the tools and support to make the best deals and maximize profits. They offer 1-on-1 training and support and can help walk new investors through the whole process of making a currency exchange deal.

The Easy-Forex Trading Platform also has features like a "stop loss" which can let you decide at what rate you want to close the deal to take any profits you might of made or prevent losses. This can be setup so you do not have to be in front of your computer when you hold a open position.

Most importantly Easy-Forex lets you start trading with as little as $50 and also has demo mode feature so that you can do practice trades and learn the Forex market. As with any market trading, Forex trading involves a substantial risk of loss, and may not be for everybody but the Easy-Forex Trading Platform helps new investors interested in the currency trading market get started in as little as 5 minutes.

You can get started in the currency exchange market in as little as 5 minutes with Easy Forex. Read a complete review of the Easy-Forex Trading Platform and get started with Forex trading at http://www.EasyForexReview.com
Article Source: http://EzineArticles.com/?expert=Steven_Tabor

Learn Forex Profiting In Just One Month

People new to investing and trading may ask, What exactly is forex trading? Forex trading refers to foreign exchange trading, which many people are now engaging in as a form of investment. There are many sources and guides to forex trading and forex profiting. Anyone new to forex trading should definitely try to educate him or herself before engaging in this financial activity. In an effort to achieve forex profiting, it is important to understand two basic strategies intrinsic to forex day trading.

These two basic strategies are technical analysis and fundamental analysis. Both strategies are also intrinsic within the equity markets. Where fundamental analysis is more prominent in equity markets, technical analysis is more widely used in forex trading. Any savvy trader who wants to experience forex profiting should be able to spot entry setups early, minimize his or her risk, and when to exit.

It is important to exit at a time that optimizes your profits rather than resulting in a loss. Over time, and with the help of resources, any day trader will be able to learn to read and anticipate within reason the trends of the market. The foreign exchange market is the largest market in the world that involves the trading of cash. Perhaps that is why so many investors attempt to achieve forex profiting. When one currency is traded for another, investors must carefully watch the market, as currency values are a constantly changing thing. A wise investor may make the most of his initial investment if the market is monitored during the long trading hours - usually twenty-four hours a day.

Earl Taylor is an expert opportunist with 8 years experience as an internet marketer. He is the author of careerjobs.bizland.com. His diligent research and precise recommendations has been known to help thousands. To learn why 95% of forex traders lose money and the only 3 days each month an individual trader should jump into the forex market and profit 10-30% consistently every single month, visit: careerjobs.bizland.com/forex-profiting.html.
Article Source: http://EzineArticles.com/?expert=Earl_Taylor

Mini Forex Trading - Profiting From Forex Trading Without A Lot of Cash

Mini forex trading is a way for people without a lot of money to trade the forex. It's also ideal for fthose brand new to forex trading.

Mini forex trading allows those new to forex trading to get a feel for it wihtout risking the amount of capital you would normally use when trading the forex.

So how can mini forex trading help you to make trading profits?

The reason for the 'mini' is obvious. The forex trading contracts are much smaller than the typical forex trading contracts. Mini contracts are about one tenth the size of a typical forex trading contract.

Mini forex trading is an advisable way to start trading the forex if you are staring with a small sum of money. You can test various forex trading systems without a lot o risk, keep good records on your trades and the result, and refine your trading techniques.

Then, as your trading improves and you build your portfolio, you can graduate from mini forex trading to larger, more typical forex trading contracts with confidence that you have a profitable trading system in place.

You can open a mini forex trading account with a lot less money, usually around $300 instead of the thousands required for a typical forex account. The high leverage available to forex traders still applies but you are obviously risking a lot less money in a mini forex account.

Keep in mind, your money is just as much at risk in a mini forex trading account as it is in a regular account. You just don't have as much at risk to lose. But you can still lose it all, and then some, due to the leverage options available.

This means that you need a trading system in place and you must adhere to that system with iron fisted discipline and not let emotion get in the way and cause you more problems and headaches.

Even in a mini forex account, you still need to know what you are doing and be familiar with various forex trading ideas and systems such as trade signals, proper chart points, targets, stop-loss and more.

With the right strategies in place, mini forex trading can be quite profitable but you need to do your homework before risking your money.

Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading
Article Source: http://EzineArticles.com/?expert=Richard_Pfaeltzer

Online Forex Trading - 4 Tips to Make Triple Digit Gains

We all know that online Forex trading is risky - and that it offers one of the few ways to start with small stakes, and build real wealth quickly.

This article is all about taking calculated risks at the RIGHT time to make money fast.

Much of this article does not adhere to conventional investment wisdom - but don’t let that bother you, as 95% of traders lose all of their money or only manage to make mediocre gains.

First, let’s start with an interesting fact:

I once knew a retired woman of 81, whom with no previous experience learned Forex trading in three weeks. She then started trading and made 129% annualised profits over 3 years!

She broke many conventional online Forex trading rules - but she didn’t care, and she made a killing in the Forex markets - and you could too.

Let’s look at how she made big gains in her online currency trading.

She had a simple method:

1. She drew her charts by hand, and looked at support or resistance. When prices approached valid resistance or support, she looked for it to hold or to break.

Then, all she did was use two indicators to time her entry, (stochastic and RSI) and make sure she was trading with price momentum.

She went the way price momentum told her – but it’s the next points that may surprise you. The following is what really gave her currency trading success, and triple digit gains:

2. She traded infrequently

In her first year, she traded 3 times. In her second year, she traded 5 times. In her third year, she traded 3 times.

Her logic was:

Why trade if the risk reward was not heavily in her favour? Many impulsive and impatient traders could learn from this bit of Forex education!

She once said, that she’d wait until the trade gave her conditions that made making Forex profits, as easy as picking up her pension at the post office.

If you think about it, in currency trading how often do the really big trends come along? - Just a few times a year and these were the ones she hit hard, using her Forex trading signals.

3. Hit trades hard.

You hear a lot about diversification being the way to make money - but this lady held the view, that all it does is dilute your profit. Therefore, she only focused on one trade - and piled as much money as she could into the position.

She simply placed a monetary stop - and if she was wrong, she took her loss in good humour.

4. Courage and Discipline

The trades she hit were the ones she believed would be the big winners, and likely to pile up tens of thousands of dollars.

Therefore, she let the trade breathe - and anyone wanting to learn Forex trading should take note.

Her view, (which is right) was that most Forex traders want to make money - but lack courage of conviction - and cannot take a big profit. They try so hard to protect their profit when they make one, that they move stops up too quickly - or snatch their profit too soon.

Sometimes she would see her equity dip by thousands a day, but she stood firm. As she put it: “I have my eye on the bigger prize” - and that was a profit target that was far bigger than most traders aim for.

Her currency trading system worked, and it worked well.

Interestingly, she broke a lot of so-called accepted investment wisdom - she didn’t trade much, didn’t diversify, didn’t trail stops. However, thinking about it, isn’t that what the losing majority of traders do?

As she put it: “Why join them? I’m cleaning up in my currency trades - and they’re not”.

If you trade in the online currency markets, and want to make triple digit gains - then maybe you should consider how she achieved them. It makes sense to me, and maybe to you too.

Grab 5 FREE Trader PDF's and get the support you need to trade like a pro with our user-friendly multi-lingual online trading platforms. Get up to date financial news, real-time market prices, tight pip spreads, built-in risk management system, and 24-hour professional support.

Grab your FREE PDF's NOW:
http://www.bestonlineforexbroker.com

Article Source: http://EzineArticles.com/?expert=Stephen_Todd

The Benefits of Forex Trading Systems

Today, Forex trading is a popular form of investment for many people, and many of them do not have experience or training in short-term trading. However, there are now two Forex trading systems that can help you with this exciting vocation. First, you have the Mechanical Trading System that works off the premise of technical analysis. The Discretionary Trading System, on the other hand, involves using your experience, intuition, and judgment. It is discretionary because you can choose what factors to use when deciding to buy or sell currencies. Before you stake your preference on either system, let us take a closer look at the benefits and concerns of each system.

The first major benefit of the Mechanical System is you can automate this system and back test it when you need to. However, it does have rigid rules you will need to follow. This is a great system if you want to keep your emotions in check as you decide on your trades.

On the other hand, the back testing feature is great only if you know what you are doing. This means you can back test and produce wrong information for trading. You can, however, subscribe to a tick data service to ensure you have the correct information. This also means paying for the extra service.

You also have to keep your technical analysis up-to-date. Not all the equations will change in a day or two, but in one year, or two years market conditions will have changed many times. If you keep using the old equations, you will get the same results that were applicable when you first bought the system.

But the mechanical system is the one for you if you just want to know when to enter and exit the market with your trades.

Now, let us look at the discretionary system

The great thing about this particular Forex trading system is that is easily adaptable to new market conditions. This works well for the constantly changing Forex market and is a major advantage over the mechanical system. Also, as you use the Discretionary system for some time, you will get to know how to interpret easily the buying and selling signals. This means you have a higher likelihood of profitable trades.

Your concerns would include your inability to either back test or automate the discretionary system. After all, how can you automate your habits, judgments, and aha moments. If you could, you would not trade but sell your system for profit.

It also takes time to gain experience, as well as develop a successful trading strategy. Some people have spent many years before they can master this aspect of trading. But once you get it right, you are well on your way to big checks from your broker. Though, in the early stages of trading, you could expose yourself to risk because of ignorance.

There you have a brief analysis of the benefits and concerns of the two Forex trading systems. You need to decide one or the other based on your personality. You may have a better edge with the Mechanical system if you can follow instructions well. On the other hand, if you prefer using your emotions and experience, the Discretionary System might suit you better.

Get the latest in forex trading systems know how from the only true source at http://www.forextradingline.com/. Check out our forex trading systems pages.
Article Source: http://EzineArticles.com/?expert=Milton_Z._Ziegler