You are here: Home / Archives for Currency Trading

Forex

Why Trade the FOREX?

Posted by admin · Leave a Comment 

My purpose for writing this article is to demonstrate to you the advantages of trading on the FOREX market. However, there is one myth that I want to dispel before I go further. The myth is that there is a difference between trading and investing. To dispel that myth I quote from Al Thomas, President of Williamsburg Investment Company, who wrote If It Doesnt Go Up, Dont Buy It. He said Everyone who invests is a trader, only the time period is different. It is a lesson that I took seriously after taking a beating in the stock market in 2000.

So now, lets compare features of currency trading to those of stock and commodity trading.

Liquidity – The FOREX market is the most liquid financial market in the world around 1.9 trillion pounds traded everyday. The commodities market trades around 440 billion pounds a day, and the US stock market trades around 200 billion pounds a day. This ensures better trade execution and prevents market manipulation. It also ensures easily executable trading.

Trading Times The FOREX market is open 24 hours a day (except weekends) which means that in the US it opens at 3:00 pm Sunday (EST) and closes Friday at 5:00 (EST), allowing active traders to choose the times they want to trade. Commodities trading hours are all over the board depending on which commodity you are trading. Including extended trading times US stocks can be traded from 8:30 am to 6:30 pm (ET) on weekdays.

Leverage Depending on your FOREX account size, your leverage may be 100:1, although there are FOREX brokers that offer leverage of up to 400:1 (not that I would ever recommend that kind of leverage). Leverage in the stock market can be as high as 4:1, and in the commodities market, leverage varies with the commodity traded but it can be quite high. Because the commodity markets are not as liquid as the FOREX market, its leverage is inherently riskier. Although I was never shut out of a commodity trade by the day limit, the fear was always in the back of my mind.

Trading costs Transaction costs in the FOREX market is the difference between the buy and sell price of each currency pair. There are no brokerage fees. For both the stock and the commodity markets, there are transaction costs and brokerage fees. Even when you use discount brokers, those fees add up.

Minimum investment You can open a FOREX trading account for as little as 300.00. It took 5,000 for me to open my futures trading account.

Focus 85% of all trading transactions are made on 7 major currencies. In the US stock market alone there are 40,000 stocks. There are just over 200 commodity markets, although quite a few are so illiquid that they are not traded except by hedgers. As you can see, the fewer number of instruments allows us to study each one more closely.

Trade execution In the FOREX market, trade execution is almost instantaneous. In both the equity and commodity markets, you count on a broker to execute your trades and their results are sometimes inconsistent.

While all of these features make trading the FOREX market very attractive, it still requires a lot of education, discipline, commitment and patience. All trading can be risky.

February 10, 2011 · Tagged with , , , , , , , , , , , , , , , , , , ,

Forex

Why Is A Mentor Necessary To Succeed At Forex (FX)

Posted by admin · Leave a Comment 

Why Is A Mentor Necessary To Succeed At Forex (FX) Currency Trading? (Part II)

A Forex mentor is by far the best way to go when attempting to learn Forex trading. This particular type of trading is becoming increasingly popular and there are many sources of help and information widely available. Some of this information is contradictory so it is understandable that a novice would have a hard time sifting through it all in order to find what will work best for him and how he should go about getting started in the fine art of Forex trading.

By engaging the services of a Forex trading mentor rather than purchasing a one-size fits all course, you are providing yourself with a jump-start to your Forex trading education. If your overall goal is to learn Forex trading, a mentor is a great way to go, mentors have years of their own trading experiences to share with you in addition to methods of learning that may deviate from the general courses that are marketed to mass audiences. Even better, mentors teach and guide you as an individual rather than one of the masses. They want you to succeed and will present the information over and over until it clicks with you.

Learning Forex doesnt have to be a lesson in futility. Employing a mentor can make the learning process go so much faster and provide you with real life experiences, good and bad, in the market. In the end, you will find that by utilizing the services of a mentor, if you take what you learn to heart, the money will be well spent. Take what your mentor teaches you and it will serve you well. With a mentor, you arent getting a black and white instruction sheet, rather you are receiving real life examples of what to do, not to do and why these things do or do not work.

All of this is great, but perhaps the best thing about having a mentor rather than signing up for a typical study course is that you have feedback from a real person who has actually been there and done that rather than someone with a script at the other end of an internet connection. You get a flesh and bones person with real experience in trading rather than a telemarketer trying to sell you the next generation of courses. You have someone who will answer your questions and take the time to explain the whys and why nots.

While we all have different methods of learning that work best for us, Im sure there are very few who would not benefit from the services a mentor has to offer no matter which learning style best suits them. I believe that you will find a mentor well worth every penny and many more.

February 3, 2011 · Tagged with , , , , , , , , , , , , , , , , , , ,

Forex

Strategy of Forex trading

Posted by admin · Leave a Comment 

Do you value your time and money? If yes, then Forex is an easy source that will help you to multiply your profit of your business. Forex currency trading is the modus operandi where you can have greater return on your investment. There is no doubt that Forex is considered to be the main player in the financial market. It is the convenient way where one can trade International Currency.

Internet Forex trading

Internet has made the online financial marketing especially the Forex Trading strategy is one of the easiest way for the traders. The forex market has boomed tremendously during the year time. Today you can complete the Forex trading strategy by just sitting at one place or home. In fact, buying and selling in this international market means that one should have knowledge about the present scenario of the foreign exchange market. In such cases, the forex signals plays a vital role by providing information about the time that will be suitable for investing money in the Foreign exchange market which in return would be profit making for the traders.

Forex trading signal

Forex signals are usually the recommendations from the seasoned experts of forex strategy system that will give you real-time advice. This Forex signals will help you to get the records of the present foreign exchange market. Forex trading signals will also help to contrive through the valleys, hills and other malfunction that can occur at any second of time. Forex trading signal will provide Forex signals that will update you about the changes that have taken place in the forex trading system. They will sends forex alerts through the help of emails, phone or messages. But the service of Forex strategy system is not free of cost your have to pay a certain amount or nominal subscription fee for effective functioning.

In forex strategy system, the dealing of foreign currencies are actually in pair that means exchanging one currency over the other. For instance, the Forex trading strategy takes place amongst the four foremost currency pairs i.e. British Pound and USD (GBPUSD), Euro and USD (EURUSD), Japanese Yen (USDJPY) and Swiss Frank (USDCHF) USD.

In fact, there is a requirement for Forex trading strategy in order to dominate the international market. Forex aletrs is one of the vital forex trading strategies that are being applied in the global market. By taking the help of Forex trading strategy you can have a profitable venture and safe a great deal of money.

Forex currency trading needs a lot of understanding, knowledge time and self restraint that will help a forex trader to earn huge profits by applying correct trading tactics. In Forex currency trading, you can avoid the conventional media of advertising and marketing. Forex currency trading is better option available in the financial market than any other stock market. If you are interested in starting any kind of new venture, then forex currency trading will be a good choice as it is reasonable. For more information on Forex, Forex signal, Forex strategy system, Forex trading signal, Forex trading strategy, Forex alerts and Currency trading, log onto www.official-forex-trading-system.com

Tags: currency trading, forex strategy system, forex alerts, forex strategy system, Forex signals, Forex

September 30, 2010 · Tagged with , , , , , , , , , , , , , , , , , , ,

Forex

Online Forex Trading Strategies

Posted by admin · Leave a Comment 

Forex trading strategies are the key to successful forex trading or online currency trading. A knowledge of these forex trading strategies can mean the difference between a profit and a loss and it is therefore imperative that you fully understand the strategies used in forex trading.

Forex trading is very different from trading in stocks and using forex trading strategies will give you more advantages and help you realize even greater profits in the short term. There are a wide range of forex trading strategies available to investors and one of the most useful of these forex trading strategies is a strategy known as leverage.

This forex trading strategy is designed to allow online currency traders to avail of more funds than are deposited and by using this forex trading strategy you can maximize the forex trading benefits. Using this strategy you can actually utilize as much as 100 times the amount in your deposit account against any forex trade which will make backing higher yielding transactions even easier and therefore allowing better results in your forex trading

The leverage forex trading strategy is used on a regular basis and allows investors to take advantage of short term fluctuations in the forex market.

Another commonly used forex trading strategy is known as the stop loss order. This forex trading strategy is used to protect investors and it creates a predetermined point at which the investor will not trade. Using this forex trading strategy allows investors to minimize losses. This strategy can however, backfire and the investor can run the risk of stopping their forex trading which could actually go higher and it really is up to the individual trader to choose whether or not to use this forex trading strategy.

An automatic entry order is another of the forex trading strategies that is commonly used and this strategy is used to allow investors to enter into forex trading when the price is right for them. The price is predetermined and once reached the investor will automatically enter into the trading.

All these forex trading strategies are designed to help investors get the most from their forex trading and help to minimize their losses. As mentioned earlier knowledge of these forex trading strategies is vital if you wish to be successful in forex trading.

August 19, 2010 · Tagged with , , , , , , , , , , , , , , , , , , ,

Forex

Mini Forex Trading What You Need To Know

Posted by admin · Leave a Comment 

Forex trading is the new way to make money through online currency trading. With a worldwide market and over 60 currencies for you to trade there has never been an easier way to make money online.

Forex trading until recently was reserved for banks and other large financial industries but thanks to the power of the internet and online currency trading, forex has now become feasible for everyday people. The forex market has become the largest trading market in the world and each day there is an estimated turnover of over 1.5 trillion pounds. Another added bonus is that forex trading is available 24 hours a day, 5 days a week unlike most other markets that operate on an 8 hour day. This means that people wishing to trade forex can do so at any given time.

Forex currency trading is done is pairs and these are known as crosses. These pairs are always against the US pound and the main crosses you will find when trading forex are the USDEUR and the USDGDP. The most popular crosses are known as majors and these can make forex traders great profits. Currencies change on a regular basis and are based on the how the world financial markets see the value of the currencies. You can sell or buy these currencies and forex brokers do not charge commission fees.

There are two types of forex accounts; a mini forex account and a regular forex account. Mini forex trading is an excellent way for small investors to learn about and take part in forex trading and with the most forex brokers offering a leverage of 100:1, mini forex trading will allow you to control a 10,000 currency position with a deposit of only 100. Mini forex trading is a great way to get a feel for forex trading and learn the tricks and skills needed to succeed without having to go to great expense. Why not try mini forex trading now and see just how easy it is to profit with forex trading.

July 22, 2010 · Tagged with , , , , , , , , , , , , , , , , , , ,

Forex

Learn Forex Trading

Posted by admin · Leave a Comment 

Almost all internet marketers have heard of forex trading or online currency trading as it is sometimes referred to and many are curious about how the forex trading system works and where they can go to learn forex trading.

In order to become a successful forex trader you need to know what forex trading is and how to successfully trade forex. In order to achieve sufficient knowledge it is vital to learn forex trading from experts. This can be done in the form of a forex tutorial and there are literally hundreds of forex companies offering online tutorials and guides.

An online forex tutorial will explain how the foreign exchange market works and will also explain the types of forex orders that are available to you as a forex trader. A forex tutorial will also explain about technical indicators and what they mean, the economic indicators you will need to be aware of and the various options and strategies that are available to you as a forex trader.

If you are new to forex trading then it is essential that you learn forex trading before parting with any of your hard earned cash. Many online forex companies offer free training and demonstrations that resemble that of real time forex trading. There are also forex trading courses available and these are also a valuable way to learn forex trading as you can refer to these course time and time again.

The most important aspect when it comes to forex trading is to learn forex trading so that you understand how to trade and how to trade successfully. The more you learn forex trading the more understanding you will have and the more success. Finding a forex tutorial or forex trading course is simple. All you need to do is a brief internet search and you will have a great deal of tutorials and courses to choose from. If you are serious about succeeding as a forex trader, then its down to you, learn forex trading now and learn to succeed.

June 24, 2010 · Tagged with , , , , , , , , , , , , , , ,

Forex

Introduction To Forex Trading

Posted by admin · Leave a Comment 

There are many markets: markets for stocks, futures, options and currencies. These are probably the most accessible markets for everyday traders like you and I. People easily understand the basics of trading shares. I began trading shares first and then I moved on to trading currencies.

If you do not know a lot about currency trading, allow me to introduce it to you. It is what I trade and I believe that it is one of the best markets to trade because of its efficiency. The transaction costs to execute a trade are minimal and most brokers provide you with the tools and data you need to make your trading decisions, they usually provide them for free. The market is open 24 hours a day which allows you to design your trading hours around your daily commitments. It is very volatile, which is great for those people who are looking for day-trading opportunities.

The foreign exchange market is the market in which currencies are bought and sold against one another. People may loosely refer to this market under different labels, including foreign exchange market, forex market, fx market or the currency market.

The foreign exchange market is the largest market in the world, with daily trading volumes in excess of 1.5 trillion US pounds. All transactions involving international trade and investment must go through this market because these transactions involve the exchange of currencies.

It is the most perfect market that exists because it has a large number of buyers and sellers all selling the same products. There is a free flow of information and there are little barriers to participate.

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

The major dealing centres at the time of writing are: London , with about 30% of the market, New York , with 20%, Tokyo , with 12%, Zurich , Frankfurt, Hong Kong and Singapore , with about 7% each, followed by Paris and Sydney with 3% each. Because of the fact that these centres are all over the world, foreign exchange traders can execute transactions 24 hours a day. The market only closes on the weekends.

THE MAIN PLAYERS’ IN THE FOREX MARKET

The five broad categories of participants are: consumers, businesses, investors, speculators, commercial banks, investment banks and central banks.

Consumers, including visitors of countries, tourists and immigrants, do need to exchange currencies when they travel so that they can buy local goods and services. These participants do not have the power to set prices. They just buy and sell according to the prevailing exchange rate. They make up a significant proportion of the volume being traded in the market.

Businesses that import and export goods and services need to exchange currencies to receive or make payments for goods they may have bought or services they may have rendered.

Investors and speculators require currencies to buy and sell investment instruments such as shares, bonds, bank deposits or real estate.

Large commercial and investment banks are the price makers’. They are the ones who buy and sell currencies at the bid-and-offer exchange rates that they declare through their foreign exchange dealers.

Commercial banks deal with customers on one hand, and with the Interbank or other banks, on the other hand. They profit by utilizing the bid-and-offer spread. The bid price is the exchange rate that the buyer is willing to buy and the offer price is the exchange rate at which the seller is willing to sell. The difference is called the bid-offer spread. They also make profits from speculating about whether the exchange rate will rise or fall.

Central banks participate in the foreign exchange market in their effective duty as banks for their particular government. They trade currencies not for the intention of making profits but rather to facilitate government monetary policies and to help smoothen out the fluctuation of the value of their economy’s currency.

_____________

This is an excerpt, modified from the book: The Part-Time Currency Trader, featuring examples of how to trade these currency pairs.

May 27, 2010 · Tagged with , , , , , , , , , , , , , , , , , , ,

Forex

Interesting Facts About FOREX.

Posted by admin · Leave a Comment 

Most experienced traders consider that the best and most profitable of the capital markets is the FOREX market. During many years FOREX trading had been the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the before mentioned institutions that annually and consistently make pretty high profits from trading in the Foreign Exchange market.

Forex is a market that is continually oscillating and in consequence with good trading opportunities during the whole trading day; this behavior is in part due to the increase in global trade and foreign investments during the last two decades that has made the economics of all countries more dependent upon one another. This means that as a country’s currency fluctuates as a result of economic activity it affects the currency of other countries. For example; economic factors usually affect a currency by altering the interest rate structure and these will either appreciate or devalue the currency of that particular country and reflect the monetary health of its economy.

It is known that some banks allocate as much as 20-30% of their funds into the FOREX market, making 40-60% of all their profits trading currencies. In fact there are experts that consider that banks will cease their loan transactional business in a few years, and better focus on currency trading as their primary revenue source.

The forex market has five major currencies: US pound, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world’s commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand pounds. These minor currencies account for 4% – 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the FOREX market.

May 6, 2010 · Tagged with , , , , , , , , , , , , , , , , , , ,

Next Page »