Thursday, November 15, 2007

Forex Trading - 10 Essential Tips You Must Do and 10 Errors to Avoid

Here are ten things you must do and 10 things to avoid when
formulating and executing your forex trading strategy. If you want to
be successful at forex trading then read and understand the points
below there essential to achieve currency trading success

1. Don’t day trade
It doesn’t work! All short term volatility is random so you have no chance of winning longer term.

2. Don’t buy a Currency trading system with..
A hypothetical track record.These are done in hindsight knowing the closing prices so avoid them.
In forex trading its more difficult, you have to make money going
forward!

3. Don’t trade off news stories
News is discounted by the markets instantly and is impossible to trade so don’t try.

4. Don’t mix fundamentals and technical
There separate, you are either a technical or fundamental trader - you can’t combine both.

5. Don’t use scientific theories
The king of these is Elliot wave and it doesn’t work. It’s supposed to be objective but everything about it requires subjective judgement. If markets moved to a scientific theory we would all know the prices in advance and there would be no market!

6. Be Objective
Use objective criteria to execute trading signals. Avoid subjective theories (like Elliot wave mentioned above) or cycles, these are subjective and mean your emotions can get involved

7. Don’t chase your tail
Gets a currency trading system you are confident in and stick with it. Don’t chop and change it!

8. Don’t forget to place stops immediately
Always place it as soon as you have entered a trade. Never use a mental stop or you will be tempted to run losses.

9. Don’t have an ego
Many traders like to see that market as they want to and not as they really are. Leave you ego behind and accept the market price is the RIGHT price.

10. Don’t work to hard
Many forex traders think the more they put in the more they will get out. While this is true in many professions, it is not true in the forex markets – you only get rewarded for being right. Successful forex trading is all about working smart not hard.

Now ten things you must do:

1. Get a simple system you understand
Simple systems work best and you only need a few rules or indicators in
it. Don’t complicate it, the more rules and the more parameters, the
more likely it is to break or lose in trading.

2. Make sure you have confidence & discipline
Develop it yourself and you will get confidence that leads to
discipline. If you try and follow someone else’s system you will lack
both and fail.

3. Use a technical approach
Takes less time and also takes into account human psychology which moves all forex prices.

4. Be patient
Only execute your trading system in line with your trading signals and don’t be tempted to chase profits.

5. Always look for confirmation
Never hope a support or resistance level will hold, get the odds on your side by using momentum indicators to confirm first, this will dramatically increase the odds of success.

6. Ignore others
Trade in isolation and ignore others. Don’t discuss what you are doing, this will keep your emotions out of your trading.

7. Have goals & a plan
Have a realistic plan and profit goals. Sure people get rich overnight
but their a minority! If you can make 50 – 100% per annum your up there with the best traders.

8. Take risks
Forget restricting risk to much, when you see an opportunity go for it
and take calculated risks this is not being rash, it’s the reality of trading FX.

9. Know your edge
If you don’t know your edge i.e. why you should win at forex trading
while 95% lose you don’t have one so you will be joining them! Get the right forex education and know your edge before you begin.

10. Enjoy what you do
If you sweat about positions, feel edgy, or worry about trading it’s
not for you. You should view trading as enjoyable and a challenge, if
you don’t forget it and do something else.

We have expanded on all the points in our other articles so check them out.
Keep in mind forex trading is not easy very few win and most lose. The good news is, if you understand and apply the above, you could soon be making big forex profits.

source

How to Make Money with Foreign Exchange

Simultaneous buying of one currency and selling of another is the
basic concept behind the forex market. Foreign currency market is the
largest financial market of the world with a potential of $1.9 trillion
daily. Without any central market and central currency forex trading
market is said to be the most liquid market all over the world. It
operates through an electronic network of banks, corporations and
individuals trading one currency for another, spanning from one zone to
another across the major financial centers.

Open Your Foreign Currency Account:

Management of a foreign currency account is similar not as like as
maintaining a current account. There are several banks offering foreign
currency accounts. The procedure, eligibility criteria and the
processing charges differ from bank to bank. There are simple steps
towards opening a foreign currency account - Gather all the information
about foreign currency account, complete application forms have your
application processed and start banking

Types of Foreign Currency Accounts:

There are primarily two types of foreign currency accounts, Customer
Foreign Currency (CFC) Accounts and Foreign Currency Accounts (FCA) for
individuals. Both of them eliminate the necessity of conversion upon
receiving money from overseas and can be used to meet short-term
requirement for cash. The interest is calculated on a daily basis on
the balance amount.

Advantages of the Forex Market over other types of investments

The Forex or Foreign Currency Market is relatively new as compared to
the other investment plans. Forex trading is said to be volatile and
most liquid market. It has many advantages over other types of
investments. Some advantages of the currency trading over other forms
investment plans are as follows:

• The Forex market is accessible 24X7 any where. There is no fear of
closing the market at the end of the day. If you have access to a
computer trading is possible anytime and anywhere.

• Almost every investment requires a substantial amount of capital
before one can take advantage of an investment opportunity but for
currency trading only small amount of capital is needed. For trading
with a mini account only $300 USD is required.

• The Forex market is very liquid as compared to other investment
markets. Trading with the currencies you have full control of your
capital.

• Often investments require holding capital for long periods of time.
So if you need to use the capital there will be a huge loss.

About the author:
Forex is the largest market place of Currency trading. While currency trading in Forex
Market or dwelling over currency market, one should mull over the
present scenario and future prospects of the country, currency of which
he is trading.

Article Source: http://www.Free-Articles-Zone.com

Forex Trading Courses on DVD

Forex trading courses on DVDs, offered by professional traders help
you in understanding the exciting marketplace of forex. As for learning
a language, you need to master the basics, to trade forex you must know
the basics of trading.

A forex trading course on DVD is an exciting learning tool which is
preferred over text based tutorials or conventional books because of
the dynamic features it offers. Learning forex currency trading is easy
when you have a good forex trading course on DVD with you. Forex
trading course on DVD outlines the advantages of forex trading and
provides insight into how to get started.

Most of the forex trading courses on DVDs have extensive tutorial
library with video tutorials, which you can play as many times you
want. You can plan your leaning sessions according to your convenience.
For online DVD courses, you can access the site according to your free
time. Forex Trading Courses on DVDs help you to start trading
part-time.

It is a step-by-step learning process. You can start trading with as
low as $300 account. The DVD course may offer you free subscription to
some online brokers who facilitate your transition from a part-time to
a full-time trader.

Home based Forex trading courses on DVDs are easy to understand and
does not require any special skill or educational background. These
DVDs are with colorful three-dimensional charts, bars, and other modes
of graphical representations with audio support and therefore
interesting and interactive.

The courses introduce you to all the essential aspects of foreign
exchange in an easy-to-understand manner and you can learn them with
your own learning pace and curve. It may take 5-10 days to learn the
basics of trading.

Forex trading courses are available for learners at different levels.
There are courses for beginners, mid-level, or experts. You can choose
your module accordingly. It also introduces you to different methods of
fundamental and technical analysis.

A typical forex trading courses include DVDs with live instructions,
CDs with core system strategies, audio and video manual, library of
video tutorials, member forum, daily video trading examples, trading
tips from other members, common questions and answers, and tele-support
for first few months.

Before buying a forex trading courses on DVD, look for features like:

More than one detailed technical trading strategies

Color charts and graphs

Complete coverage of fundamental and technical analysis

Professional risk management techniques

Strategy to identify profitable charts and trendline and technical market pointer

Real trading example reinforcing every trading concept

Free forex trading tips

About the author:
To find out more about how you can learn to trade currencies visit Forex Trading Courses on DVD

Article Source: http://www.Free-Articles-Zone.com

Forex Tips - 5 Simple Ones to Increase Your Profits

The forex tips below are all easy to do and all will help you
achieve one aim increasing your overall profitability. So here are 5
forex tips for greater profits.

1. Use the Weekly Chart

I am amazed that most traders never bother looking at weekly charts but
if you want to separate out “the wood from the trees” the weekly chart
gives you a much clearer perspective.

The big trends are clearly visible on the weekly chart and if you are
long term trend follower, start with this chart first and you will have
a clearer view of support and resistance levels and entry points.

2. Cut Your Trading Frequency

This Forex tip addresses a major problem that most novice traders have – they trade too much.

They think they have to be in the market all the time and chase profits
but the fact is, if you cut your trading frequency, you stand a better
chance of success. Keep in mind; you only get paid for being right in
forex trading - NOT for your effort and how often you trade!

By cutting your trading back, you can concentrate only on the high
reward, high odds trades which give the best potential profits.I know
traders who only trade a few times a year yet - they make between 120 –
430%! Annually.

Their simply trading the cream of the trades and ignoring the low odds, high risk ones and there are plenty of those.

If you cut your trading, you will probably see your profits soar.

3. Risk More Per Trade

This is directly related to the above point.

If you have a high odds trade take this tip and risk more.

You will read a lot of nonsense on the net about risking 2% per trade and no more.

Well, that’s fine if you are trading 100k but if you’re a small potato trader, trading 10k or less, that’s a maximum of $200!

If you have a small account you need to load up and risk 10 -20% on the
high odds trades. Keep in mind if you don’t risk much you won’t make
much!

To make meaningful gains you have to take risks – if you don’t like taking risks don’t trade forex.

4. Don’t Diversify

If you are trading a small account don’t diversify!

You need to load up as we have said above and concentrate on one trade only.

Diversification is simply another word for diluting profit potential and is something a small trader should not engage in.

5. Use an Account Profit Target

What s a realistic target to make per annum in forex trading?

You may have your own ideas - but if you made 100% that puts you up there with the best fund managers in the world.

You will often see people look at risk per trade but looking at your
account overall and using a profit target is highly effective.

You will often see trades that give you big profits in short periods of
time and if they are a substantial – i.e. more than 25% of your 100%
bank them.

Have a break and start again.

If you hit your profit target for the year early - decide whether you
should trade again at all or at the very least give yourself a deserved
break.

The tips above are really saying:

Focus only on the best trades with the best odds, load them up and have
a target -if you do the above, chances are you will make bigger profits.

About the author:
NEW! FREE Trader PDF'S - Forex Newsletters and Alerts

On all aspects of becoming a profitable trader including: Free, weekly and daily newsletters, and some essential FREE FOREX Trading PDF's visit our website at:

http://www.learncurrencytradingonline.com/index.html

Article Source: http://www.Free-Articles-Zone.com

Forex Trading Success - Understand This Equation and Make Big Profits.

Enclosed you will find a simple equation on market movement that can
lead you to forex trading success. Most traders don't understand it and
that's why they lose their equity, so here is the equation for forex
trading success.

It's a very simple equation and we will look at it in more detail in
this article for now here is the equation for forex trading success.

Fundamentals instantly Discounted (Supply and Demand) + Investor Psychology (view of the facts) = Price Movement.

The first point to keep firmly in mind is that you won't enjoy forex trading success if you try and trade the fundamentals.

Why?

Because news is instantly discounted and in our world of instant
communications and its available in all corners of the globe at the
click of a mouse. Furthermore, the facts and news is not important it's
the way the participants view them.

We all have the same facts to look at but we draw our own conclusions based upon our emotions as well as our logic.

The news is stories and should and cannot be traded. Will Rogers once
said "I only believe what I read in the papers" he was joking but
compare this with the huge number of people who take a story on
Bloomberg or Reuters as gospel.

The fact is the fundamentals are most bullish at market tops and most
bearish at market bottoms. This is human psychology at work. If you
want to enjoy forex trading success you need to be able to trade taking
this into account.

A way you should not trade! - Is to try and predict.

Firstly, markets are NOT scientific because humans are not and they decide the price.

There are plenty of vendors selling systems that tell you that you can
predict but you can't. If markets were scientific we would all know the
price in advance and there would be no market.

Others traders don't use scientific methods but think they have to
predict to win but another word for this is - guessing. If you guess
you're hoping and the forex markets will kill you.

The way to trade is to act on the reality of price and trade on
confirmation. If you want to win you shouldn't just assume a support
level will hold - watch it hold and trade the reality.

The equation we are looking at in this article is really one that you can trade using forex charts.

Forex charts simply assume that as the fundamentals are instantly
discounted in price action. All you need to do is follow the price
action.

So with no study and trying to work out where the fundamentals may send
prices, you simply just watch the reality i.e where they are and not
question why.

Forex charts do something more though:

They show you how the participants perceive prices and they reflect the
human psychology. While humans don't conform to scientific theory,
human nature is constant and this shows up in repetitive price
patterns.

It's a fact that prices spike away to far from the fundamentals due to
investor psychology and these price spikes, driven by greed and fear,
are easy to spot and tradable.

Trading the odds

When you are trading with forex charts, you are simply aiming to trade high odds scenario's.

Sure you will lose trades but if you play the odds correctly, you will win more than you lose and enjoy forex trading success.

The advantage of forex charts if used correctly is:

You don't guess, hope or predict you work on the assumption that the
market price is always right and trade the reality. The forex chartist,
doesn't care which way markets move or why, they just want to make
profits when they do.

The equation we have looked at here is vital for any trader to learn
and digest - if you do you will see the right way to trade currencies
and enjoy forex trading success.

About the author:
NEW! FREE 2 x CRITICAL TRADER PDFS - NEWSLETTERS - TRADING ALERTS + MORE

On all aspects of becoming a profitable trader including: Free critical trader PDFS, and more FREE Forex Education visit our website at:

http://www.learncurrencytradingonline.com/index.html

Article Source: http://www.Free-Articles-Zone.com

Forex Money Management and Placing Stops Correctly for Bigger Profits

Many traders are right about market direction but simply put their
stops in the wrong place and clipped out the trade and then watch as it
goes onto make thousands of dollars and their not in! Placing stops is
as important as picking trade direction in terms of making Profits.

Risk and Trading.

Most traders try so hard to restrict risk they actually create it. A
great example of this is forex day trading where you have tight stops
by predicting the daily range.

Te problem is all movements within a day are random and the apparent
small risk is a guaranteed lose as volatility is random and takes them
out.

There is a big industry in telling you that forex can be traded safely
– Rubbish! It’s risky and if you don’t like taking calculated risks put
your money in a high interest account.

To make big returns, you have to take risk that’s simply the reality of trading.

Placing Stops

Place stops behind heavy valid resistance or support – that means if
they trade recoils back you may be out but your stop is in a logical
area. Another point to keep in mind is to use a stop close ( I use New
York stock exchange times ) this means that you have more chance of
winning it may look more risky but longer term its not.

How often do you see stops picked off in the day session for the market
to settle back the way you thought? It happens often so don’t do what
the majority do run a stop close if you can keep an eye on the market.

Moving stops

Beware of moving stops to closely – if you try and lock into quickly
you will get taken out by normal volatility. Hold your stop back and
make sure you have the discipline to take dips in open equity and keep
your eye on the bigger prize. Accept that you’re never going to sell
the top and buy the bottom, but if you get 70% of the big trends you
will pile up profits.

Be selective

Only trade those trades that have high odds chance of winning forget
trading frequently you don’t get paid for that you get paid for being
RIGHT and that’s all.

If you are selective you can risk more on these trades and give
yourself a bigger chance of winning. Never fall for the risk reward of
trade is your profit target, your stop – its NOT.

This is just your view and bears no relation to the trade’s outcome.

Don’t Diversify

If you have a big account fair enough but if you have a small account
diversification simply dilutes your profit potential and ensures you
make mediocre gains. On a small account load the trade and risk as much
as you can.

Be realistic

There is a big difference between taking calculated risks and being
rash. Do not over leverage your trades. Keep in mind the best traders
in the world make 100% and if you made that to then you would compound
a lot of money over time. Don’t go for broke and get blown out.

Money management and stop loss placement is all about trading the high
odds trades at the right time, placing stops and trailing them
logically not to get taken out by volatility and loading the trades
with the best potential.

If you do the above you will have a simple way of taking calculated
risks and getting handsome returns and that’s what Forex trading is all
about.

About the author:
NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's

For free trading guides and an exclusive Forex Trading Course visit our website at:

http://www.learncurrencytradingonline.com/index.html

Article Source: http://www.Free-Articles-Zone.com

About the credit card industry

The credit card industry has become a favorite punching bag for
consumer groups and lawmakers, who accuse the card issuers of doing
everything in their power to raise rates, charge new (and hidden) fees
and punish card holders with unjust policies.

The Federal Reserve Board has taken notice. It's proposed requiring
issuers to disclose clearer information about rates and fees and 45
days' (instead of 15 days') notice before they could raise rates.
Congress has stepped in, proposing bills to restrain some of the more
widely criticized policies.

The credit card industry says it welcomes better disclosure but opposes
curbs on its ability to raise fees or rates or change policies.
Consumers have yet to see any significant easing of fees and rates that
have sparked outrage.

The credit card industry has entered a quiet period since Congress set
its sights on credit card practices. Still, late fees and
over-the-limit fees have remained steady across the board.

The credit card industry is open to the idea of making policies easier
to understand. But card issuers oppose any steps that would restrict
them.

In its defense, the credit card industry contends that credit cards are
fairer now than before 1990, when most issuers charged a fixed rate of
about 20%. "There was less access to credit in America and higher
interest rates," says Ken Clayton of the American Bankers Association.
"Now, some 75% of American families have credit cards at lower interest
rates. And the ability to measure risk has allowed us to target various
markets that in the past may have not had access to credit."

Many consumers argue, though, that credit card disclosures are
confusing and that so many penalty rates and fees can apply, it's hard
to know how to avoid them.

About the author:
For more resources about accept credit card or about accept credit card merchant account and especially about accept credit card online please review these pages.

Article Source: http://www.Free-Articles-Zone.com

Foreign Signals from Forex Online Signals

If you are active into foreign exchange trading, you should never
hesitate to subscribe to the forex signals services provided by Forex
Online Signals. Because the overall currency market is always volatile
with the numerous surprising turns of events globally, there is a need
for you to always monitor the latest market currency movements and
analyze the occurrences for longer-term strategies.

Visit the company's Website at http://www.forexonlinesignals.com/ and
see how Forex Online Signals could be of help to you. The online site
is a one-stop shop where you could find and subscribe to every currency
signals you will need to make your foreign exchange operations truly
work.

Forex Online Signals offers the most comprehensive and fastest forex
trading signals. When news happens and there is an imminent impact to
major currencies, expect that the company would be quick to analyze and
relay that analysis to you. During these days, the most notable
economic news can be of great relevance if taken and coursed instantly
and abruptly.

What is most notable about Forex Online Signals is its system of alert
provisions. Buying and selling actions applicable to foreign exchange
trading is clear. For recommended entry into a trading, there is the
entry level signal. 'Target' is used to refer to the profit taking
activity while 'Stop' means there is a recommendation to stop loss.

In the buying transaction, entry means there is a recommendation to get
into a currency. Target means there is an opportunity to buy more
because there is an imminent profit taking chance coming in the near
term. Stop refers to the action when the trader should stop buying
because that is expected to incur losses. In the selling transactions,
entry level means there is no need for specific action yet. Target
would be read as a signal to take profit by selling currencies
immediately to underpin opportunistic exchange rates, while Stop means
there is a need to stop selling in the interim because doing so would
mean incurrence of losses.

Forex Online Signals has mastered that trading alert function. When
there is a reason to be concerned, the signal system is there to
immediately post its subscribers. Online users and current clients
attest that their foreign exchange trading actions are profitable and
lucrative due to the signals and alert system.

A signal is more like a warning or a form of recommendation. Of course,
as a trader, it in your discretion if you would follow a forex signals.
Usually, such endorsements and warnings are accurate and are very much
helpful. The signal is provided to every subscriber every trading day.
On the average, you would be notified twice or you would receive
helpful signals at least twice throughout the trading day.

What is good about Forex Online Signals is that it covers all six major
global currencies, including the US, Canadian and Australian dollars,
the Japanese yen, the Euro and the British pound. If you are budget
conscious and wants total efficiency and relevance, you could subscribe
to signals covering only the currencies you need and like. That would
save you from further costs and the inconvenience of having confusion
about rates.

The best thing about the service is that Forex Online Signals make sure
you will receive the signals when you need it anywhere you are. You
could choose to designate where you would receive the trading signals.
Whether you want to receive the recommendations and warnings via email
or through your wireless phone in the form of short message system text
is up to you. The company is capable of disseminating information
through the most convenient and easily accessible media to the clients.

Make your foreign exchange business work wonders. Subscribe to the
forex trading signals provided by Forex Online Signals and watch how
your business maximize profits. Who says currency trading is tedious
and time demanding? With Forex Online Signals, basic information
pertinent to your business decision making is made very accessible.

About the author:
Forex Signals from Forex Online Signals. Brows online resource for Forex trading signals

Article Source: http://www.Free-Articles-Zone.com

The Euro Invasion

It has been declared by several economics and finance luminaries
that the euro could very well be the next main currency reserve,
toppling the US dollar from its revered position. No less than former
Federal Reserve Chairman Alan Greenspan and Nobel Prize winner Robert
Mundell have said that the unified monetary unit of the European Union
could pose a serious challenge to the US currency.

The concept of an economic and monetary union for European countries
has been in the works since the 1950s. The euro itself was conceived in
1992 through the Maastricht Treaty and was adopted as official currency
of 11 countries in 1999. Two years later, the euro entered circulation
in the financial systems of Belgium, Germany, Greece, Spain, France,
Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, and
Finland.

Today, the EU currency is gaining ground as a major international
currency after less than a decade of existence. It is involved in about
37 percent of transactions in the foreign exchange markets and is the
second most commonly held reserve currency after the US dollar, making
up one-fourth of the global reserves. It is believed that the euro
inherited its strength from the German Deutsche mark, which also
occupied a similar position after World War II.

The euro proves to be much greater than its predecessor though as it
edges into becoming a major currency in the oil trade. For the longest
time, oil has been exclusively traded in US dollars. Although the euro
and yen have been gradually gaining access, the oil trade is still
primarily dominated by the American currency. Speculations place oil
sales in euro at 30 to 40 percent.

One of the technical difficulties involved in establishing a
euro-denominated oil trading system is the absence of a standard
pricing system or a euro-based oil marker. So far, the three oil
markers in the industry namely West Texas Intermediate, Norway Brent,
and the UAE Dubai crude are all dollar-denominated.

In 2005, it was reported that Iran was planning to put up an oil bourse
that would trade petroleum, petrochemicals, and gas in non-dollar
currencies, particularly the euro. This would establish a fourth oil
marker that would pave the way for a euro-denominated trading system.
Several dates have been set for the opening of the bourse but the
launch itself has been postponed repeatedly. Iran has pushed ahead with
its currency reserve diversification though and has accepted the euro
and the Japanese yen as payments for its oil exports.

As of now, the euro remains strong in the forex market since it started
appreciating in 2000. It has not fallen below parity with the dollar
since 2002 although this can be credited to the intrinsic depreciation
of the US currency. It also helps that the European Central Bank (ECB)
is adamant on increasing interest rates to counter inflation.

The relative strength of the euro has caused fears of a decrease in
European exports as US goods become cheaper and thus, more attractive.
There have been official complaints and calls for the US to do
something about the falling the dollar but the ECB itself currently
shows no signs of cutting interest rates to offset the euro's exchange
rate.

Meanwhile, the euro nations or Eurozone has increased since 2001. In
January 2007, Slovenia joined the Eurozone and on 2008, Malta and
Cyprus are set to follow suit. Other East European countries are also
aiming to adopt the euro as official currency but are still struggling
to meet the standards for membership.

About the author:
Kristien Wilkinson is an online writer and contributor to http://www.forexmarkets.com

Article Source: http://www.Free-Articles-Zone.com

Business Advantages of Online Forex Trading

Forex is a potential platform for earning substantial profit. And,
why not? It is the largest trading market of the world having an
average daily trade of US$ 2 trillion and above. The market is known
for its high scale trading volume and extreme liquidity. Add to this,
forex trading can be done from anywhere of the world. This has been
further backed up by World Wide Web through which a trader can trade in
the forex market at the comfort of your own home. A few advantages of
online forex trading are mentioned below:

The greatest advantage tagged with online forex trading or online
currency trading is of course its real time accessibility. Today just
with a single click, a trader of forex market can access online forex
firms and brokers. They offer real time forex quotes, charts and
transaction details after meticulous observation and analysis. With
such a help, a trader can easily remain aware about every latest
occurring of the forex market.

Online currency trading or online forex trading is again beneficial for
its ease of use and accessibility. What you need to have is a computer
with access to internet. Without getting out of your doors, you can
analyze the market and decide every trading agreement. However before
trading, you need to have a clear concept about the market, its basics
and trading secrets.

To get the basics of forex trading, online method is again the best
option available for you. Innumerable tutorial programs regarding
online currency trading are available online which are generally run by
online forex firms. With access to such programs, you can remain up to
date about the market as well as understand the basics and secrets of
the forex market. Several forex firms specializing in online currency
trading provide live forex help. These programs are run by expert forex
traders and teachers. Thus, getting help for your question regarding
forex market is never a tedious task as long as online forex trading
classes and tutorial programs are available at your disposal.

Online forex trading is again beneficial for it helps you to perform
complex analysis without mistakes. With access to your computer; you
can solve complex charting, sort out details of each trading agreement
minutely. Add to this, you have several forex trading tools available
online. These tools offer quick assistance for trading in volumes. This
is indeed a blessing for newcomer, who often finds it tedious to track
down the facts and figures of forex market and trading agreement.

Thus, online forex trading or online currency trading is marked with
several advantages. Here, you can obtain every latest happening of the
forex market, get free tutorials from masters, access tools and
techniques for a winning forex trading; all these at the comfort of
your own home. The advent of World Wide Web has fine-tuned the whole
process of forex trading.

About the author:
Forex is the largest market place of Online Forex Trading . While currency trading in Forex Market
or dwelling over currency market, one should mull over the present
scenario and future prospects of the country, currency of which he is
trading.

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Automatic Forex Trading Software

Forex trading has gained tremendously in interest and popularity in
recent years mostly due to the introduction of automatic and automated
forex trading systems. The market that was open to banks and similar
big financial institutions is now luring medium and even small
investors.

Forex market is the place where currency of one country is traded for
currency of another country. These trades happen round the clock with
transactions of billions or perhaps trillion of dollars everyday,
making it one of the largest and most active financial markets.

With the advent of the internet, network, communication technologies,
and sophisticated automated forex trading systems, participating in the
forex market is now open to virtually anyone having a computer, an
internet connection, a forex brokerage account and a good trading
platform.

But staying on top of a forex position requires constant monitoring, as
this global market is practically open round the clock. Automatic and
automated forex trading systems is a tool that lets you specify a
currency, an asking price, and a selling price beforehand. With a small
seed amount and with the help of a broker, your purchase and sell
orders will be executed instantly.

An automatic and automated forex trading system allows you to benefit
from the profitability of the forex market without having to become an
expert in trading. In automated trading through managed accounts, the
trading program or human experts executes the trades for you.

With a reliable auto trading platform, you are not required to do the
actual trading yourself and therefore you save your time. And if you
can watch the market constantly, you can mange multiple accounts from
your trading platforms, simultaneously, which was never possible with
manual trading. Automated forex trading systems present advantage of
trading multiple systems and multiple markets.

An automatic and automated forex trading allow your trades to be made
at any time of the day or night, regardless of your presence. You do
not miss a single profitable trade even if you are not present in front
of your computer terminal.

An automatic and automated forex trading helps you in taking advantage
of multiple forex strategies and different systems. Because different
systems are designed to be triggered by different trade indicators, you
can diversify your investment as well as your risk.

An automatic and automated forex trading also eliminates human emotions
and psychology that can often affect proper and profitable trading
decisions. With an automatic and automated forex trading system, you
will be capable of monitoring many currency pairs at a time and you can
follow and execute all of them.

But, even with automatic forex trading systems, you will have to learn
the basics of the forex trading, methods of fundamental and technical
analysis, market indicators, etc. for enjoying consistent profits.

Just being automated, the trading system never guarantees you success
as the market is influenced by many variables and parameters. The forex
automated system is not just mechanical, but is fully programmable and
you can customize them according to your needs.

About the author:
To learn how to automate your Forex trading visit Automated Forex Trading Software

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Trading Forex With The Right Software

The trading software is one of the more overlooked aspects of
trading Forex online. For those who are not familiar with the Forex
market, it is extremely fast-paced and volatile. That is why all
brokers claim that their software offers the minimum latency in
providing real-market updates. Unfortunately, this is a very generous
statement and it does not take into account the client's internet
connection or his geographic location.

The client's connection to the web is obviously the most important
factor regarding receiving real-market updates from the broker. It
really should be the best connection that one can afford, whether it is
cable, satellite or ISDN. Cable is the preferred connection, as it is
more secure and offers greater bandwidth.

And then there is geography. It is common sense that Broker X who is
located in Toronto can establish contact with Client A located in
Montreal much faster than Client B, who is located all the way down in
Mexico City. The fact is that all internet connections are affected by
distance. The farther a client is away from his broker, the more delay
he will receive as a result because of the physical limitations imposed
on wiring. Thus, always research your broker's geographic location
before selecting it as the right one for you. For best results, always
choose a broker who is closer to you.

Any decent broker will offer its trading software for free. Some will
even offer different versions of its software for traders of different
skill levels. Usually, "advanced" versions loaded with extra features
are available for free to those who request them.

Trading software comes in two flavours- web based and client based
software. If your broker offers both kinds, great! Each has its own
advantages, but it is the general consensus that web-based software is
better.

Web based software operates completely on the broker's server and is
interfaced through a web browser like Internet Explorer or Mozilla
Firefox. This creates a lot of flexibility for the client, as he can
access his Forex account anywhere providing he has access to an ISP and
a browser. Security with web based software is not an issue, as all
exchanges between the client and the broker take place over secured
sockets and are heavily encrypted.

Client-based software is downloaded onto the computer and executed from
there. It is faster and more convenient to access, and is more "homely"
in the sense that it will blend into your desktop environment. However
because client based software resides on your computer and stores
sensitive information like name and passwords locally, it is very
vulnerable to hackers. If they managed to sneak pass your firewall
through Trojans or some other backdoor virus, they can do great harm to
your bank account.

If you are just starting off with Forex, be sure to take these factors
into consideration when selecting the best broker. Analyse the features
of the provided software to make sure that they're right for you. So
with all that said, good luck and happy trading!

About the author:
www.moneymadeeasy.biz

Ian Shell

ian@moneymadeeasy.co.nz

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Choosing the best Forex Brokers

The trading market has numerous brokers for you to choose from; but
you should be aware that you have to keep some things in mind in order
to choose the man you really need. The chosen broker should be able to
help you deal with all the Forex courses and he can also teach you more
about the existing currency. Therefore, you have to choose a broker who
has lower spreads; this spread is the right difference between the
price a currency can be sold at and the price that is used in order to
buy the currency. The Forex Brokers are not likely to charge any
commission because the difference between the two prices will become
their profit. They make their money thanks to the existence of this
difference. So, the difference has to be lower in order for you to take
advantage of it.

Every client should make sure that the broker he has chosen is backed
by a well known and reliable financial institute. The Forex Brokers and
the Forex courses are likely to be affiliated with different large
banks. Even the lending institutes can be used instead of the usual
banks because they can assure the huge amount of leverage. Banks are
used thanks their ability to provide the required capital. Every broker
should be registered with the so-called Futures Commission Merchants;
he also has to be regulated by a trading commission. All the necessary
information should be available on the broker’s official website. The
information can also be provided by his parent institution in order for
the client to properly choose the broker he really needs.

The broker must provide his client with all the information he needs;
the research and even the market tools are also to be provided by the
broker. Every Forex broker is likely to offer many trading platforms to
each of his clients. These platforms are usually updated and they will
include the technical analysis tools, trading data, real-time news and
real-time trading charts; the broker will provide his client with the
necessary and technical commentaries. Economic calendars and
professional research information will also be provided in order for
the client to understand the benefits and demands of the existing
trading market.

The broker should be able to offer a quite wide range when it comes to
leverage options; the leverage stands for the money that are lent by
the broker in order to help his client trade on the market. This
leverage is usually expressed as a special ratio when it comes to the
entire capital. The leverage is necessary on the trading market because
the prices are likely to deviate quite often. These price deviations
are to be considered as the real sources of future benefits. But these
price deviations are small, namely they can reach a fraction of the
cent. A lower leverage stands for lower risks when it comes to the
margin call. A lower profit will come as the direct consequence of
these lower risks. So, the client should be aware that there is a huge
variety of different leverage options; he has to learn how to choose
the proper leverage option because his choice may actually allow him to
vary all the risks he is about to take. He will decide his future
benefits according to the leverage option he chooses.

The client must make sure that his broker is offering him all the
services and tools that are required by the capital that is about to be
invested; the broker should consider your capital and the amount of
money that you will invest in order to offer you the proper type of
account. There are many types of bank accounts that can be used in each
situation and the broker has to be able to decide which of these
accounts will be used. The smallest account is considered as the mini
account; this mini account will require a minimum amount of money but
will offer a quite high degree of leverage. This leverage will be
needed in order for the client to make money with his small initial
capital. There is also the standard account that can let the client
trade different leverages; but the minimum capital requires a larger
amount of money. The client can even choose the premium account
according to the Forex courses but this account is likely to require a
significant initial capital. The client will be allowed to use
additional tools and services in order to benefit from his transactions
on the trading market.

Every client should protect himself from hunting and sniping; the
broker can actually buy or even sell near preset points in order to
increase the profits. The client should not expect his broker to openly
admit this transaction; there are no organizations or even black lists
that are stating the existence of this phenomenon. Such activity has
never been reported but it exists and the only way you can check it is
to talk to other brokers in order to have a clue about what is really
going on. The strict margin rules are always to be followed because
trading with foreign and borrowed money can be quite risky; the Forex
Brokers should be able to tell you more about the risks you are going
to take when entering the trading market in order to sign the necessary
margin agreement that allows you to open the required account.

About the author:
The Forex Brokers should provide their clients with all the necessary research and tools in order to make them understand the Forex courses

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Forex Trading System - Beware Of Curve Fitting or Lose

If you are thinking of buying a currency trading system, then you
will find that well over 95% of systems sold have great track record -
but lose in real time trading. The reason is curve fitting - so if you
want to find one that works, learn what it is and how to spot it.

I would say that of the currency systems sold on the net, most are
curve fitted on purpose, to allow the vendor to show a profit so they
can sell the system - if you don't know what it is then you will lose.

Forget the track record you see, in most cases that's not what you're going to get!

Curve fitting in simple terms means optimizing the system to fit the data.

A trader I know once likened this to shooting at a barn door and then
afterwards, drawing a bulls-eye around everyone, to make them look like
a bulls-eye!

In currency trading a system vendor will simply find his system doesn't
work on a segment of data, so he makes it work and bends the system
(curve fits it) until it does.

The clue to a curve fitted system is:

Lots of rules and parameters, different rules for different types of
market and different ways of trading individual currencies.

If you see a track record that shows extra ordinary profits with low drawdown it's probably curve fitted.

Many vendors don't realise that the more they bend the system to fit
the data the more likely it is to collapse in real time trading.

No one bit of data is going to replicate itself exactly again.

If a currency trading system is soundly based, it should work across
all markets and use the same rules all the time and be simple with few
rules and parameters.

As long as a vendor puts this disclaimer on he is free to present any track record he likes here is the standard CFTC one:

"Hypothetical or simulated performance results have certain
limitations. Unlike an actual performance record, simulated results do
not represent actual trading. Also, since the trades have not been
executed, the results may have under-or-over compensated for the
impact, if any, of certain market factors, such as lack of liquidity.
Simulated trading programs in general are also subject to the fact that
they are designed with the benefit of hindsight. No representation is
being made that any account will or is likely to achieve profit or
losses similar to those show".

This allows un-scrupulous vendors to present any gains they like and they do!

They know that the system wont work but they know that the naive trader
will fall for a track record of gains. The vendor makes a profit and
the trader has a guaranteed loss!

Lets face it anyone can make a profit in hindsight but the problem is that we need to trade without knowing the data.

If you buy a currency trading system look for the evidence of curve fitting.

The majority of systems use it whether it's done on purpose or in error.

Stick with simple systems which are easy to understand, where the logic
is fully revealed - or even better, insist on some evidence the system
works, by asking for a real time track record over at least two years.

About the author:
PROFESSIONAL FOREX TRADING COURSE AND FREE ESSENTIAL INFO

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at:

http://www.learncurrencytradingonline.com/index.html

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Sunday, November 11, 2007

Forex Technical Analysis – Using Forex charts For Bigger Profits Part 1

Here we are going to give an introduction to using forex technical analysis and using forex charts for bigger profits. Forex technical analysis if done correctly is the best and most time efficient way of seeking profits and should be considered as part of any forex trading strategy.

The first point to keep in mind is:

Forex technical analysis is a game of odds not of certainties, so forget about predicting with scientific accuracy, no one can achieve that – but if you understand the following equation, you can make big forex profits:

Fundamentals + Investor Psychology = Price

It is a fact that the fundamentals have an influence on price – all investors have the facts at their disposal but they see them in their own way and this mass of millions of people determines forex prices.

Investor psychology

Human psychology is constant and never changes.

Traders will always be influenced by emotion and these emotions of greed and fear, will push prices to far away from fair value and these price spikes are easy to see on forex charts.

The important point to keep in mind is that investor psychology repeats - and so do chart patterns.

Seeing the Whole Picture

Another very important point to keep in mind with forex technical analysis is that it studies the fundamentals.

All it does is simply assume that in today’s world of instant communications, they show up straight way in price action.

Studying forex charts however does something more:

It studies how investors perceive the fundamentals.

Its is not enough to simply look at the facts, as we all draw our own conclusions from what we see and emotions ensure that investors don’t act logically – they push prices to far ( either up or down) based upon their emotions.

Studying forex charts gives you the whole picture - it reflects the fundamentals and more importantly, how investors perceive them.

When using forex charts you don’t care how and why prices move, you simply look at the reality of price and try and make profits from the moves.

It sounds simple as a concept and it is - but it’s extremely powerful and if you incorporate it in your forex trading system, you can make big profits by trading when the odds are on your side.

Forex Technical Analysis Is Time Efficient

Using forex technical analysis is time efficient, you are studying price and don’t need to make assumptions of where they may go based upon the news – you can see the price as it is and simply trade the truth.

Many traders continually look at news and try and trade off it – but this is hard - the fundamentals are discounted instantly and you have very little chance of winning. Furthermore, if you look at the opinion of others your emotions get involved and any trader who lets emotions dictate their forex trading strategy, is destined to lose

Trading forex charts lets you see the reality as it is – no opinions or guessing and that gives you a huge advantage when trading for profits.
Forex Charting is An Art

Of course, all people use forex charts in different ways and it’s an art not a science.

It is similar to being a ships captain – use your charts correctly and you can get from A – B safely and earn a living; use your charts in the wrong way and you will hit the rocks and drown.

There are many myths perpetrated about using forex charts and if fall victim to them and you will lose.

The good news is anyone can become a successful forex chartist and if you follow basic rules, you can trade with the odds on your side and execute your forex trading signals correctly and win.

In part 2 of this article on forex technical analysis, we will look at basics points to incorporate into your forex trading plan, to be successful and look at common myths regarding forex charts you need to avoid.

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NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's For free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html

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Fibonacci Forex Trading – An Introduction

Leonardo Fibonacci was an Italian mathematician, who lived in the 13th century and known for his world famous Fibonacci sequence, which many trader use to try and predict currency prices with greater accuracy. Let’s look at the Fibonacci number sequence and Forex trading.

The Fibonacci sequence was printed in the Liber Abaci, written by Leonardo Fibonacci in 1202. It introduced Hindu-Arabic numerals to replace Roman ones. The Fibonacci number sequence was devised to solve the following problem:

How many pairs of rabbits can be produced from one single pair, if each month each pair produces a new pair, which, from the second month, starts producing more rabbits?

The definition of the sequence is that it’s formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13...

In forex trading what is important is - the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc. These Fibonacci retracements many forex traders believe are tradable for profit.

The two Fibonacci percentage retracement levels considered the most critical are: 38.2% and 62.8%. Other important retracement ones are: 75%, 50%, and 33%.

So can the Fibonacci number sequence help you trade more successfully?

The answer is no.

In fact, its amazing that such a dumb theory is believed by so many traders, this is no disrespect to Leonardo Fibonacci who was a brilliant thinker, its just these levels have nothing to do with trading and the great man himself (were he alive today) would probably be bemused at the way his thinking has been hijacked by the far out investment community.

Many traders believe that Fibonacci levels are a natural law that re-occurs as human psychology is constant – but if you think about it, human nature is not predictable and NOT scientific.

Trading is an odds game.

Fibonacci traders are like the followers of Gann or Elliot, they all believe the market is scientific but if they were, we would all know the price in advance and there would be no market!

This is common sense to most people but not some traders, who constantly say it works when it doesn’t.

Sure, you can see the levels hold sometimes but pick any number you like and you will see that hold to sometimes!

If it’s scientific it should hold ALL the time, otherwise it’s NOT a scientific theory by definition – period.

Fibonacci numbers are a great story and vendors realize this and sell ridiculous systems based upon it, that don’t work. If you see one ask for the real time track record to prove this, you won’t get one.

You will get a simulated one done in hindsight but we can all do that – the problem with forex trading is you have to trade going forward not knowing the closing prices.

If you want to win at forex trading remember this:

There is no science involved and if anyone had found the secret of market movement they wouldn’t reveal it to you. OF COURSE Fibonacci numbers are available to all so why are the traders who use them not rich?

Well you already know the answer to that!

Forex trading is a game of odds, NOT certainties and there is no scientific formula or hocus pocus that makes them move on their own. They move due to what people do and how they see facts and humans are not predictable with scientific accuracy.

So leave the Fibonacci numbers to the dreamers and far out crowd and concentrate on a system that trades the odds.

Sure, you won’t win all the time, but if you know how to trade the odds you can make a lot of money.

BECOME A PROFESSIONAL TRADER On all aspects of becoming a profitable trader including: Free critical trader PDFS, and more FREE Forex Education visit our website at: http://www.learncurrencytradingonline.com/index.html

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Basics of Forex trading

This article gives an introduction about the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading forex online. Foreign exchange or forex are all terms used to describe the trading of the world's many currencies. The forex market is the largest market in the world, with trades amounting to more than 1.5 trillion dollars every day. The foreign exchange market has no central clearing house or exchange and is considered an over-the-counter (OTC) market. Forex traders are generating incredible wealth day after day from the comfort of their home. Foreign exchange is normally traded on margin. A relatively small deposit can control much larger positions in the market.

Forex trading takes place directly between the two counterparts necessary to make a transaction, whether over the telephone or on electronic brokerage networks all over the world. This is a trade that includes simultaneous buying of one currency and selling of another one. There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies, and governments that buy or sell products and services in a foreign country must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.).

The market is called the spot market because trades are settled immediately, or "on the spot". One of the major benefits of trading forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). Unlike stock trading, currency trading on the Forex market is not cut short at the "close" of each day's trading. The benefit of Forex being a 24 hour a day market is that there are little or no gaps in the market, meaning there is no chance that prices will close one day and reopen the next day. The fact that forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.

Since the market is always moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. Different currencies pay different interest rates. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. This is one of the main driving forces behind foreign exchange trends. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade. It is inherently attractive to be a buyer of a currency that pays a high interest rate while being short a currency that has a low interest rate. Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out.

A forex trading method with a high winning percentage is rewarding psychologically, keeps your morale high and is enjoyable to trade. A string of profits will build your confidence. Losses have to be kept small and wins should be larger than losses. You can make big money working only a few hours a day or week on your computer. You can trade from anywhere in the world where there is an internet connection.

Andrew Daigle is the owner, creator and author of many successful websites including ForexBoost at http://www.ForexBoost.com and http://forexboost1.blogspot.com , Free Forex Training Resource for the Novice and Advanced Forex trader.

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Online Investment Secrets And Tips

When it comes to online investment tips, everyone could benefit from tips. Most people are new to online investing, and are not very familiar with the way things work. The online world of investing can be cruel, but also very rewarding. When it comes to investing online, the tips you will find below are designed to help you make the most out of your experience.

The first thing to do with online investing is to start small. If you are new to this method of investing, do not put your entire life savings into an online account. Instead, start with a smaller sum, which should be easier to handle and keep track of. Once you feel confident enough, you can decide to add more money to your online account.

Once they are online, many investors tend to concentrate on stocks, specifically larger, more domestic ones. Most online investment tips note that while these stocks should make up part of your portfolio, they should not be all of it. Also make sure you take into account your time horizon and risk tolerance to develop a well balanced portfolio of stocks, bonds, and cash.

When it comes to mutual funds, most investors are into them for a reason. Most investors do not have the expertise to make their own investment calls on individual stocks. They are also too preoccupied by work and other demands to spend every minute watching the market. You should keep your mutual funds and it will probably be an unwise move for you to cash out your long term fund holdings.

Other online investment tips note that costs may not always be obvious. Even if online broker costs are somewhat lower than those of full service brokers, they can still add up, even if you do a lot of buying and selling. Online broker firms also like to impose a number of other fees and charges that should be studied closely.

When it comes to orders, you should make them work for you. If you plan on doing your own investing, you will need to learn how to use the tools that are available in order to avoid potentially steep losses and to buy or sell a stock at effective prices. This way, you get a good decent return on your investment. Many information on creating own investing you can find on theHYIPs.net

As beneficial as online investment tips may be, problems that you will encounter are inevitable. Investing online is not foolproof. Sure, there will be times when you ca not access your account; you could even be away from the computer when the market makes a major move.

When it comes to online investing, your internet connection could be down as well, or the online firm server could crash due to heavy trading, unexpected software glitches, or another sort of natural calamity. Make sure you are familiar with the firm alternative trading options. This may include automated telephone trading or calling a broker.

The most helpful of all the online investment tips, is to always remember that information is power. If you plan on buying and selling individual stocks online, it is in your best interest to keep yourself as well informed as possible. Do not settle for just the hype about hot stocks.

Good alternative can be HYIP investing. I developed my own rules of successful HYIP investment. All my secrets I revealed in my HYIP course. For more information visit http://www.thehyips.net/lessons/

David Vagner developed his own rules of successful HYIP investing. So do not hesitate to read them and earn more than $4000 a month. Read his rules right now at HYIP monitor : => http://www.thehyips.net/lessons/

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Forex Trading Success – Learn to Deal with Volatility or Lose Your Money

f you want to enjoy forex trading success then you need to know how to deal with volatility and that means knowing and understanding standard deviation, - if you don’t know what it is you should it’s a key part of forex education and vital to achieve Forex trading success.

The Problem

Most forex Traders can spot long term trends but they cant profit from them because they get stopped out by volatile counter moves which clip their stop and give them a loss – then they see the currency go the way they thought and pile up huge gains.

If you want to win at forex trading then you need to deal with volatility. Let’s look at standard deviation and what is and how we can use it to help us deal with volatility.

Standard deviation is a statistical term that refers to and shows the volatility of price in any currency or financial instrument. Standard deviation measures how widely values are dispersed from the mean or average.

Dispersion is defined as the difference between the actual closing value price and the average value, or mean closing price.

The larger the difference between the closing prices from the average price, the higher the standard deviation and volatility will be. On the other hand, the closer the closing prices are to the average mean price, the lower the standard deviation, or volatility of the currency is.

Technical Calculation

Standard deviation the square root of the variance, and the average of the squared deviations from the mean.

High Standard Deviation is present when the price of the currency studied is changing volatile and has large daily ranges in reverse low Standard Deviation values take place in periods of consolidation i.e. when prices are more stable and range bound.

Keep This in Mind

Prices spike away from the average as the participants react to the emotions of greed and fear and then return to the average mean, when prices have moved to far to quickly.

A great tool for helping you understand standard deviation and picking areas to enter your trades with good risk / reward is the Bollinger Band.

Dealing With Volatility.

Key points to keep in mind are:

That strong trending moves will break back to the mid Bollinger band and this provides you with an area to target to get in on the trend. When the bands expand and volatility is high, prices will normally recoil back and you can take a contrary trade in the opposite direction, as prices return back to the mean.

Consider this equation:

Fundamentals (Long term average mean) + Investor perception (High volatility to Inner and outer bands) = price.

The price of anything tends to dip back to the mean or average - but investors will spike prices to far up or down along the way. This is a simplified version but its obvious how to trade this equation, as we have suggested above.

Always keep in mind that huge price spikes don’t last and the average in a strong trend is a value area.

Target these areas and use your technical tools on your forex charts to define entry.

Using Standard Deviation for Greater Profits

Standard deviation tells you how volatile prices are and a Bollinger band reflects this – it is not however on its own a signal to trade. By understanding volatility and how it occurs through standard deviation you will be able deal with volatility better and pick low risk / high reward exit and entry points.

If you don’t understand standard deviation and its impact day to day you won’t make money trading currencies so make it an essential part of your forex education. If you do it will help you on the road to currency trading success.

NEW! FREE TRADING PDF's PRO FX TRADING COURSE For free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html

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Professional Forex Trader – Live the Dream in 4 Simple Steps

Becoming a professional forex trader is the dream of many and for most it remains just that - but if you follow the simple tips enclosed, you could change your financial future forever and be making big consistent gains, in just an hour or so a day.

FACT:

95% of traders lose all their money, yet everything about forex trading can be learned, it’s just the majority of traders don’t get the right forex education, or have the wrong mindset to apply what they have learned.

Anyone one can become a successful forex trader from home however you need to do the opposite of the majority, it’s not hard to do and do your homework.

1. Adopt the Mindset For Success

Most traders are lazy or naive or both.

They read about how easy it is to make money and think someone else can give them success.

Most of the information sold on the net is junk and wont help you win and even if you do find some good education, you cant follow it blindly, you need to understand it.

If you don’t understand how and why your system works, you wont have confidence to apply it with discipline and you will lose.

Keep in mind if you don’t have the confidence and discipline to follow your system you don’t have one!

If you like to blame others and don’t like responsibility don’t trade forex, it’s as simple as that.

2. Work Smart Not Hard

You don’t need to work hard you need to work smart and this means only learning what is relevant.

Many traders think the more knowledge they have the better but you don’t get rewarded for effort in forex trading, you only get rewarded for being right.

In 1983 legendary trader Richard Dennis proved this point in spectacular fashion. He took a group of people who had never traded before and taught them to trade in 14 days – the result?

They made him a $100 million dollars and went on to become some of the most successful traders of all time.

Working smart means working on a forex trading strategy that will get the odds on your side and that’s what we will look at next.

3. A Forex Trading System for Success

I am amazed at how many traders simply base their systems on logic that doesn’t work, for example:

Most novice traders try day trading yet all short term volatility is random so they can’t win, yet they don’t stop to think how dumb day trading is.

Or

They believe in scientific theories that tell them they can predict the market in advance and don’t stop to think that predicting is impossible.

If it were possible, we would all know the price in advance and their would be no market!

The best you can do is trade with the odds on your side.

Of course, you will lose but your profits should be bigger than your losses and you can pile up big gains over time.

You can build your own forex trading system easily, just educate yourself on.
- Support and resistance and breakouts - Time your trades with momentum oscillators - Keep it simple trend lines and 2 -3 confirming indicators max

If you build a system based upon the above it will be simple to understand, simple to apply and will be robust.

Don’t try and be too clever and cram too much into your system. If you do, it will have too many elements and break in the real world of trading.

If you do the above, you will have a simple robust system that you can apply in an hour a day or less.

One other point, I constantly read writers tell you to educate yourself all the time, study your profits and losses etc– Rubbish! If you have a system you believe in leave it alone.

You will have winners and losers but if it’s soundly based then you simply should just apply it.

4. Building Long Term Gains

What is a realistic amount to aim for?

If you made 100% per annum you will be up there with the top traders in the world and you don’t need to do many trades – keep your trading focused on high odds trades only.

So there you have it, a simple plan to live the dream of becoming a professional forex trader from home.

It’s a challenge but one anyone can take up and anyone can win – if they want to.

Are you up for the challenge?

If so, welcome to the worlds most exciting and lucrative business.

Forex Currency Trading

Winning the lottery gives the kind of rush that one gets from no other game, and in the same way trading in foreign exchange and earning profits makes one happy beyond words. The main purpose behind trying your hand at the lottery is to see if you get lucky, but in case of an investment it is to yield a good profit which at times does not happen. One thing to note for is not to invest all the profits right away into another market without putting enough thought into it. Investing in Forex currency trading is the most common form of trading found in the world today, most of the leading businesses and banks are involved in this. Since it is the biggest market in the world, there are people from every nook and corner involved in dealing with foreign currency trading. Trading on currency does not happen in an exchange like the stock trading, neither are there clearing houses. The members' trade with each other based on their individual agreements, and it is all about self regulation. For those new to this arena, this form of system might seem chaotic but it works well for the players involved.

The traders in Forex currency trading carry out a technical analysis trying to speculate the market trend and future of a currency pair. This is typically based on past performance and the overall position of the country's' economy status. Any war, natural calamity, change in government will have a huge impact on the currency value and so the investor needs to be well informed about all these. This will also change the position of the supply and demand of this currency in the world market. Another form of analysis carried out is the fundamental analysis where in the businesses carried out, imports and exports are measured and their impact on the currency calculated. Dealing in Forex currency trading is the most common and it has people from various institutions, banks and other organizations participating.

The pip, or percentage in point is how the Forex traders calculate their investment and returns, it is basically where up to four numbers after the decimal point, the investment is valued. If the price of a biscuit packet is $1.25, as per Forex it would be stated as $1.2500, and this is referred to as the pip and this is followed for almost all currencies but the Japanese yen since it does not have any value post the decimal point. The majority of trade is carried out using the top performing currencies, namely American dollar, British Pound, Japanese yen, Swiss Franc and the Euro. There are others which do also participate but their share in the market is much lower.

The Forex currency trading survives because of all the speculators who using their contacts get inside information which gives them the tip of the currencies that are faring well and those that aren't. Then, there are traders who predict the future of the market and play by that.

Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here right now! : http://www.forexinvestingcourse.com

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Forex System Trading

You may decide to develop your own trading system or you may prefer to purchase one that has already been developed for use and has a proven track record.

In this article we will look at the basics of developing your own trading system.

In essence a trading system is any set of rules that must be conformed to when trading, so you could for example detail the following rules.

If a 5 period exponential moving average (EMA) crosses up over a 13 period exponential moving average(EMA), enter a long trade.

If a 5 period exponential moving average (EMA) crosses down over a 13 period exponential moving average (EMA), enter a short trade.

You have now created the basis of your trading system.

Of course this would not be nearly enough to produce a successful trading system, so now you need to enter some safeguards.

If the 5 period EMA crosses up over the 13 period EMA enter a long trade and immediately place a stop loss order at 50 pips below the entry value.

If the 5 period EMA crosses down over the 13 period EMA enter a short trade and immediately place a stop loss order at 50 pips above the entry value.

So far you have only one criteria for trade entry and this could lead to many false signals. To help prevent this you might well add one or more technical indicators as a filter, but keep in mind that the more filters, the less trades will be signalled and although this can be a good thing, it is important to maintain a balance.

Continuing with the system building process, you might choose to add MACD as a filter.

If the 5 period EMA crosses up over the 13 period EMA AND MACD is rising above the signal line, enter a long trade and immediately place a stop loss order at 50 pips below the entry value.

If the 5 period EMA crosses down over the 13 period EMA AND MACD is falling below the signal line, enter a short trade and immediately place a stop loss order at 50 pips above the entry value.

It will be necessary to back test your trading system with various time frames to establish the optimum time frame(s) for the system.

Back testing can be carried out by using a backtesting program or by visually looking back at the charts and identifying the points at which "your trading system" conformed to the trade entry rules. Then look forward to see if the trade would have been successful.

Make sure that you make precise notes regarding each theoretical trade.

Next you will need to develop a rule or set of rules for exiting the trade. There are many ways to do this.

Developing a reliable exit method is in many ways more important than developing a reliable trade entry system.

One popular method is to use a trailing stop and to continue to trail price until the trade is eventually "stopped out" in profit.

A trading system, no matter how good, will not produce a winning trade for every trade entry.
Your goal is to establish a system that is successful more than 50% of the time. The higher the percentage the better the system will be.

If your system checks out favourably during back testing you should proceed to trade it in REAL-TIME but using a DEMO ACCOUNT only.

It is most important at this stage not to put any real money at risk, because back testing is not reliable enough to prove a trading system's worth.

If after a month or two of REAL-TIME testing the system shows a consistent winning average of above 50% then you can consider making further adjustments to improve the average.

Each time that you make an adjustment, it is most important to go through the whole testing process again from the beginning, to ensure that the adjustment has made a favourable difference.

There is no reliable short cut to this process.

Make sure to only make changes one at a time and carry out the whole testing process for each change. If you make more than one change at a time, you will never be certain which of the changes were beneficial and which were not.

Finally, after all of your testing has been carried out and you are ready to fund a live account, it is essential to apply a system of money management.

This needs to be a rigid set of rules that might for example include - Never trade using more than 2-3% of your trading account on any one trade - and so on.

Good luck and happy trading.

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Martin Bottomley is a full time professional forex trader, forex tutor, acknowledged author and co-developer of forex trading software including The Amazing Stealth Forex Trading system. You will find more information at: http://www.stealthforex.com

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Forex Platform Trading

Just like each of us has our own style of working or talking, there are different Forex trading platforms available. And the investors need to find the one that suits their needs and that works for them. It is not necessary that the mode followed by one person to invest which yields him good profits will do the same for someone else. It takes time and a lot of ground work for the investors to realize that the platform they are operating on is the one for them and go with the flow. The first step before trying anything new is to gather all related information, talk to people who have been involved in the same and learn from their experiences. The different kind of terminologies used in Forex trading, the currencies that are active and on the rise are some factors that will help in making your investments strong. Understanding the entire system, the process of contacting a professional agency to guide you in investments are some of the knowledge that would help in the long run.

The amount of money one is willing and able to invest and the expected returns should be calculated to cut down on losses. There are computer generated Forex platform trading where the user will be given the entry and exit points automatically without any manual intervention. Early on these systems were quite steeply priced but now are made available at lower costs to all. One can either create their own system using the software and request for certain reports to be generated on a periodical basis. They can take the help of a professional and formulate the system based on the rules set, else the final option would be to just pick up a system from the market, which will have all the details preset and you simply have to follow its outputs.

In Forex platform trading, since the market operates through the day, across the world, these systems will work irrespective of whether you are awake or sleep. And they will give you regular updates on the changes in the currency rates and all you need to do is enter the market you wish to play in. The system used in the platform is programmed to capture data, monitor oscillations and analyze the changes and give you a comprehensive report on all the currencies you are interested in. The ultimate aim for any investor is to get value for his investment and see profitable returns else the system is not worth the risk. The Forex mechanical platform of trading gives the user complete information and keeps them in sync with what is happening in another part of the world minute by minute. The advantages of the internet have therefore made it possible to be in one corner while being aware of the trends in another part of the world. Simple and easy to use, informative and beneficial are the key factors to consider before putting your foot into the trading pool.

Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here: http://www.forexinvestingcourse.com

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