Friday, August 1, 2008

FOREX TRADING SOFTWARE


The Foreign Exchange Market is a high paced fast moving market. In order for you to make good trades you need good information. So if you plan to start Online Forex Trading, you will need the right software system to give you the ability to collect information on market prices and make Forex trades quickly and easily. And with the right software and a high speed internet connection, everything is only mouse click away. You just need to decide on which software is best for you.


Forex trading software has proven itself to be an essential when it comes to trading on the Forex market especially those who are just beginning in the Forex market.

Forex trading software comes in two basic flavors :
  • Client based software
  • Web based software
Client based Forex trading software is downloaded and then installed on your computer. The biggest draw back to a client based system is that you can only access it from the computer on which it is installed. You also need to be concerned with the security on your system.

Web based software lets you login in with an internet connection and you can use any computer anywhere. Web based software tends to less vulnerable to viruses and hackers because of the high security implemented. Online based forex trading system are hosted on secure servers, the same type of servers credit card processing is handled on. This gives you a great deal of protection, as your data is encrypted. Also, backups and mirrors of your account data are made by your software provider to protect you from data loss.

You can find many forex trading software by searching it through google like FXCM and AC-Markets.

So, which one you choose to work with depends on your preference and other more technical factors. You ultimately should choose to work with the software that you personally find easiest and most intuitive to use, that you personally find easiest and most intuitive to use.

Forex Trading Education

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Community Development:

Board seeks nominations for appointments to Consumer Advisory Council

Home Mortgage Disclosure Act Data

Hearings under the Home Ownership and Equity Protection Act (HOEPA)


CNNMONEY.COM LATEST NEWS:

Wall Street wobbles into weekend

NY to file fraud charges agains Citigroup

Time Warner says ex-exec can't join Yahoo's board


THE WALL STREET JOURNAL

Nowhere to Hide for Equities after Jobs Data, Oil, and GM

McCain, Obama deliver Economic-Aid proposals

Job Losses Suggest Economic Weakness to Persist

Federal, Florida Regulators close first priority Bank.


NYSE Trader Updates

Elimination of the Exceptional Message Fee (EMF)

Contingency Trading Exercise now scheduled for 10/25/08

SEC Naked Protection Order extended to 08/12/08


BLOOMBERG.COM - BREAKING NEWS


Nissan Bucks U.S. Slump as Asians Gain Record Share

European Bonds Post Biggest Advance Since 1998 as Growth Slows

Japan's Bonds Complete Weekly Gain as Stocks Slump on Slowdown

Asian Currencies: Taiwan Dollar Leads Drop; Rupiah Bucks Trend

Sri Lanka in Fierce Battles With Tamil Rebels Ahead of Summit


Posted by at No comments:

Thursday, July 24, 2008

PIVOT POINT TRADING

To trade forex using a pivot point is basically a value around which it is expected that trends will reverse or breakout and therefore it is a point of a lot of importance around the quantitative day trading that many people do. The idea is to use the numbers for the previous day to calculate the different values that will be of importance in the area and therefore use those calculated numbers to make the trades for that specific day. Professional traders and market makers use pivot points to identify important support and resistance levels.

The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels.

The calculation for a pivot point is shown below:

  • O = open price from previous day
  • C = closing price from previous day
  • H = high value from previous day
  • L = low value from previous day

Calculate the pivot point (PP) first…

  • PP = (H + C + L) / 3

Then calculate the first support and resistance levels (S1 and R1)…

  • S1 = (2*PP) – H
  • R1 = (2*PP) – L

Then calculate the second support and resistance levels (S2 and R2)…

  • S2 = PP – (R1 – S1)

  • R2 = PP + (R1 – S1)

Then calculate the third support and resistance levels (S3 and R3)…

  • S3 = L – 2(H – PP)

  • R3 = H + 2(PP – L)
The three most important pivot points are R1, S1 and the actual pivot point. Don’t worry you don’t have to perform these calculations yourself. Your charting software will automatically do it for you and plot it on the chart.

If you would like to calculate it easily with the use of a calculator, ActionForex.com have it or in FxStreet.com.

There are number of ways that you can apply the pivot point and the support and resistance levels in relation to the pivot point. The only set rule for you to keep in mind is this; if the opening price for the day is below the pivot point, then your preference should be towards sell/short trades whereas if the opening price for the day is above the pivot point, you should be looking primarily for buy/long trades.

FOREX TRADING SYSTEM


WEEKEND EDITION FROM WALL STREET JOURNAL

The New Gold War

When Voters Lie

The Intelligent Investor


CME GROUP

News Releases:

CME Group Volume Averaged 11.2 Million Contracts per Day in July

Glass Lewis and Proxy Governance Recommend CME Group Shareholders Vote 'FOR' the Acquisition of NYMEX Holdings Inc.

CME Group Appoints Evans Papanikolaou as Managing Director, CME Globex Market Operations

CME Group to Launch OIS Futures and Options on Futures

Dubai Financial Services Authority Grants CME Group Recognition for CBOT Products


NASDAQ

Market Activity:

NASDAQ Composite Index

NASDAQ-100 Index

American Stock Exchange Composite Index

Dow Jones Industrial Average Index

Standard and Poor's 500 Index

New York Stock Exchange Composite Index

30 year Treasury Bond Index

13 Week T-Bill Index

CBOE Gold Index


DOWJONES

Press Releases:

Dow Jones Names Langhoff CEO of Ottaway Group; Former CEO Wilcox is Retiring

Dow Jones Indexes and Brookfield Asset Management Launch Global Infrastructure Indexes


Posted by at No comments:

VOLATILITY IN FOREX

There is one thing in particular that wipes out more trader equity than anything else, the volatility! From 1980's up to this time, the distinctive characteristic of the foreign exchange market was its volatility. A currency volatility that was a reflection of major imbalances between national economies.

Volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.

Most forex traders simply can’t deal with volatility. Every trader should learn to deal with it in forex and that means knowing and understanding standard deviation or you will lose all your money! Currencies are volatile, and in theory you can trade for thousands in profits every day.

Volatility is typically measured in two ways

  • Historical Volatility
  • Implied Volatility

Historical volatility is a measure of how much an exchange rate has varied over a given time period. Historical volatility is backward looking.

Implied volatility is estimated of a security's price. In general, this volatility increases when the market is bearish and decreases when the market is bullish.

Understanding of standard deviation is important in forex trading, it tells you how volatile prices are. So what is it? Standard deviation is a statistical term that refers to and shows the volatility of price in any currency or financial instrument. It measures how widely values are dispersed from the mean or average.

Here's a speech from the site Federal Reserve Bank of New York about Volatility trend. It may help you give further knowledge about Volatility in the Foreign Exchange Market.

FOREX TRADING TRAINING


Posted by at No comments:

TRADING WITH STRATEGY


Being a successful trader is not just a simple matter. Trading requires time, market/trading knowledge and market/trading understanding, dedication and a large amount of self restraint.

So, what is really a trading strategy? A trading strategy is a system you'll use to help you make successful trades and a good trading system can help increase your success.

Stock trading is very different from forex trading. Just by using forex trading strategies will give you more advantages and help you realize even greater profits. There are a wide range of strategies available to traders. You just have to choose what's comfortable with you and that you fully understand the strategies used in forex trading. Forex trading strategies are one of the key to successful forex trading. They are designed to help traders get the most from their forex trading and help minimize their losses.

Any trading strategy should have a disciplined method of limiting risk while making the most out of favorable market moves. You should take the time to understand the forex trading strategy, study the components independently, go a deeper understanding of the strategic mechanisms and master them. If you recognize the components, internalize its use, and make consistent profits into your forex trading account, then you have your own Forex trading strategy.

When developing a trading strategy, many things must be considered. Most importantly, a trader must choose or create a strategy that fits himself. Many things must be considered: working knowledge in forex, risk-tolerance, skill, experience, interests, how the market works, etc. Once a trading strategy is chosen, it can be developed on numerous software platforms.

Few tips for preparing your strategy will be:

  • Always trade with the trend.

  • Never risk all your trading capital in a single trade.

  • Follow strict discipline to limit your loss.

  • Whenever you are in doubt, get out of the trade.

Posted by at No comments:

FOREX SCAM

Forex scams attract customers with sophisticated-sounding offers. Promoters often lure investors with the concept of leverage: the right to control a large amount of foreign currency with an initial payment representing only a fraction of the total cost. Coupled with predictions about supposedly inevitable increases in currency prices, these contracts are said to offer huge returns over a short time, with little or no downside risk.

According from the source, Wikipedia, A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market. Currency trading "has become the fraud du jour," according to Michael Dunn of the U.S. Commodity Futures Trading Commission. But "the market has long been plagued by swindlers preying on the gullible," according to the New York Times. "The average individual foreign-exchange-trading victim loses about $15,000, according to CFTC records" according to The Wall Street Journal. The North American Securities Administrators Association says that "off-exchange forex trading by retail investors is at best extremely risky, and at worst, outright fraud".

Here are some tips for you to avoid being a victim of forex scam. The CFTC lists 9 warning signs for foreign exchange forex trading fraud:
  • Stay away from opportunities that seem too good to be true - Get-rich-quick schemes, including those involving forex currency trading, tend to be frauds.
  • Avoid any company that predicts or guarantees large profits - Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.
  • Stay Away From Companies That Promise Little or No Financial Risk - Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.
  • Don't Trade on Margin unless You Understand What It Means - Don't trade on margin unless you fully understand what you are doing and are prepared to accept losses that exceed the margin amounts you paid.
  • Question Firms That Claim To Trade in the "Interbank Market" - Be wary of firms that claim that you can or should trade in the "interbank market," or that they will do so on your behalf.

  • Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise - Be aware that if you transfer funds to foreign firms it may be very difficult or impossible to recover your funds.
  • Currency Scams Often Target Members of Ethnic Minorities - What appears to be a promising job opportunity often is another way many of these companies lure customers into parting with their cash so be aware of that.
  • Be Sure You Get the Company's Performance Track Record - Get as much information as possible about the firm's or individual's performance record. You should be wary of any person who is not willing to do so or who provides you with incomplete information.
  • Don't Deal With Anyone Who Won't Give You His Background - Get the background of the persons running or promoting the company, if possible. Do not rely solely on oral statements or promises from the firm's employees. Ask for all information in written form.

Forex Trading Education


BUSINESS SECTION: THE NEW YORK TIMES

China's ambition soars to high-tech industry

More arrows seen pointing to a recession

Thain's Change: From assurance to desperation


FOREXTV.COM

The week ahead Canda & U.S. : FOMC Rate decision, Canadian Employment

The week ahead Europe & UK: ECB and BOE Interest Rate decisions

The week ahead Japan & Australia: RBA cash target, Australian Unemployment

Closing Market Update: Bond Market Suggests Bank of Canada will Cut Rates


ACTIONFOREX - REPORT

Daily Report: Yen steals the show ahead of NFP

Mid-Day Report: Dollar tumbles on GDP & jobless claims, but supported by Chicago PMI

Daily Report: Market await US GDP


NASDAQ MARKET NEWS AND HEADLINES

16 wounded in Hamas-Fatah clashes: Palestinian Medic

Japan Foreign Minister to visit India next week

Pakistan: No information on report Al-Qaido No 2 wounded

Thousands of workers strike in Inflation-Battered Vietnam


Posted by at No comments:

Wednesday, July 23, 2008

MARGIN CALL

What is Margin Call?

Margin call is the demand for additional funds. Investopedia defined Margin call "A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin".

When the traders money falls below the margin requirement which is the usable margin, your broker will close some or all open positions. That is the time that you will receive a margin call. This prevents your account from falling into a negative balance. If the maximum allowable leverage has been exceeded, any open positions are immediately liquidated, regardless of the nature or size of the positions.

Margin call is something that every trader will have to be aware of. If for any reason the broker thinks that your position is in danger, let's say you have a position of $100,000 with a margin of one percent ($1,000) and your losses are approaching your margin ($1,000). He will call you and either ask you to deposit more money, or close your position to limit your risk and his risk.

If you are going to trade forex on a margin account, it is very important that you know the polices of your broker and that you thoroughly understand them in order for you to be comfortable with them and understand your risk.

FOREX TRADING TRAINING


DAILY FOREX FUNDAMENTAL REPORTS-ACTIONFOREX.COM

Posted by at No comments:

CALCULATING PROFIT AND LOSS

The foreign exchange market is an around-the-clock cash market where the currencies of nations are bought and sold. Forex trading is always done in currency pairs. To understand how the exchange rate can affect the value of your Forex investment, a trader should know how to read a Forex quote.

Most online forex trading platforms like automatically calculate the Profit & Loss of a traders. However, it is useful to understand how the calculation process is.

Let's illustrate how to calculate the P&L:

The current bid/ask price for EUR/USD is 1.2320/23, meaning you can buy 1 euro with 1.2323 US dollars or sell 1 euro for 1.2320 US dollars.


Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.


So you make the trade: to buy 100,000 euros you pay 123,230 dollars (100,000 x 1.2323). Remember, at 1% margin, your initial margin deposit would be $1,232 for this trade.


As you expected, Euro strengthens to 1.2395/98. Now, to realize your profits, you sell 100,000 euros at the current rate of 1.2395, and receive $123,950.


You bought 100k Euros at 1.2323, paying $123,230. You sold 100k Euros at 1.2395, receiving $123,950. That's a difference of 72 pips, or in dollar terms ($123,950 - $123,230 = $720).



So the total profit is US $720

That is how the process of calculation is done. When calculating profit or loss, the trader should consider the spread as well as the interest differential.


If you would like to see more examples, Oanda has examples in illustrating how to calculate profit and loss.

Learn Forex Trading


CNBC.COM

Parts of July Employment Report Signal Recession

Stocks Kick Off August With a Drop

Credit Crisis One Year Later: No Signs of Turning Corner

YAHOO FINANCE

Expert Opinion section:

Four habits of financially peaceful people

ARTICLES FROM DAILYFX

Currency Trading Markets primed for profitable range trading

Posted by at No comments:

FOREX: CHARTING








In Forex Trading, when becoming a Forex trader you can definitely use great tools available to you, such as Forex charting. The charts produced by Forex analysis can give you great insight into different aspects of the market, including movements. By using charts in foreign exchange you can study the behavior of the market over a greater amount of time and analyze them and how they affect trading.

Forex charting is a method of providing financial data, in this case the performance of world currency, in the form of different types of charts called currency charts. Currency charts represent a single period in time: a minute, a month, a year, depending on how the charts are packaged.

The forex charts are generated by charting software, which go through historical as well as current data and generate the big picture for the trader. The trader can select the charting software based on his specific needs. Dailyfx offers free forex charts with live FXCM Quotes.

There are many people who are very interested in Online Forex Trading but fear that they may suffer some losses due to lack of experience or knowledge. If this is the case, you should open an online trading account with the appropriate forex charting software. This virtual account enables you to learn about currency trading and the market without investing money and without having to establish a commitment.

Every trader should have to be aware and keep these points in mind:
  • Ensure that the charts are as up to the minute and accurate as they claim.
  • The charts should give meaningful and significant information at a glance.
  • The charts should integrate with the trading platform that the trader is using.
  • The trader should be able to view more than one chart at a time to get the fullest possible picture of forex’s current behavior.

TRADE FOREX


DAILYFX: TRADING IDEAS

Carry trade range may not last through Fed's rate decision tuesday

Non-farm payrolls threaten to sink the Dollar

YAHOO FINANCE - INVESTING IDEAS

CURRENCY MARKET HEADLINES FROM CNBC

Closing Forex Rates -- UK

Forex - Dollar enjoys shortlived gains after U.S. payrolls data

Posted by at No comments:

FOREX EDUCATION

There are many people who are interested in forex currency trading. But before you start trading in forex, getting a good forex trading education is important. The forex market is largely a technical market with its own forex terms and processes so it is important you grasp the fundamentals with an online forex trading education.

One of the most important goals in most people's lives is to obtain a good education. Each different type of education will serve its own purpose, and a forex education will aid people who are interested in pursuing a career as a forex trader. People can obtain this type of education in a variety of ways. The most traditional method is to attend classes or getting a forex training.

A forex tutorial is a good way to acquire knowledge about the working of forex markets. The beginner learns the market terms, the basic trading skills and the techniques to chart market movements. These are useful skills to acquire for any individual who wants to be a forex trader. One of the best way to acquire knowledge about forex trading is Babypips.com, most especially the beginners.

It’s important you do not rush through your online forex trading education. Forex education is crucial for beginners so just take your time to understand and start trading in small amounts to practice. As the saying goes, practice make perfect.

FOREX TRADING SYSTEM


Posted by at No comments:

Tuesday, July 22, 2008

DEMO TRADING

Demo trading or paper trading involves normal fx trading activities such as entering into buy (or sell) trades, setting stop orders, and exiting the market. It's basically the same as actual trading except for one crucial difference: you're not trading with real money.

It allows new traders to familiarize themselves with the brokers' trading platforms - for example, to learn how to place buy and sell orders, as well as how to set stop orders etc. It's a common occurrence for new traders to enter into a buy trade when they want to sell, and vice versa. Without a paper trading account, they'll be paying for such simple errors with real money.

Most says that one of the best ways to check out Forex trading and see if it is truly something that you like and feel that you can make money in is to open a forex demo account. This strategy allows you to view the account online and see how the account would perform if it were a real account.

The vast majority of reputable brokerage houses offering Forex Trading make these accounts available because they know that if you study and learn how to trade effectively you will be comfortable making larger trades, which in turn will make them more money. But of course, there's limit for demo trading. From the article of FXStreet, the author said what's the disadvantages of Demo trading and talked about the importance of trading, which is the "psychology".

CURRENCY TRADING COURSE



Posted by at No comments:

FOREX TRADING



The Foreign Exchange( the currency or forex or fx) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The Forex Market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.

Unlike the stock market, where all participants have access to the same prices, the forex market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. As you descend the levels of access, the difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread.

Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, which were transferable 3rd-party payments that allowed flexibility and growth in foreign "exchange market" trading and market deals.

Foreign Exchange Trading or FX Trading, clients are able to hedge against, or speculate upon, changes in the exchange rate of two currencies. A currency trade is the simultaneous buying of one currency and selling of another one. The currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross ( for example, the Euro/US dollar, or the GB pound/Japanese yen). The most commonly traded currencies are the so-called "majors" - EURUSD, USDJPY, USDCHF and GBPUSD.


The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or "on the spot". In practice this means two banking days.


Characteristics

The foreign exchange market is not unified. There is no single dollar rate. Dollar rate varies from one country to another, this is due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded. This implies that there is not a single dollar rate but rather a number of different rates (prices), depending on what bank or market maker is trading.

The trading centers in Tokyo, New York and London are the centers of foreign exchange trading. However, all are interconnected. Tokyo may be the center for the Asian market, New York for the US and London for Europe but notice the chain of one to the other two.

Exchange rate usually consists of an integer part and 4 decimal points (or 2 decimal points when expressed per 100 units like e.g. dollar/yen). Thus the decimals are expressed either at 10th thousands or hundreds. Each such 0.0001 is called basis point or pip. E.g. a 50 pips change of 1.5000 is either 1.5050 or 1.49.50.


Online Forex Trading


FXSTREET.COM - BREAKING NEWS


Posted by at No comments:

FINANCIAL INSTRUMENTS

There are types of financial instruments that are used in foreign exchange market. Every trader in forex trading should be aware of these types. The financial instruments include spot, forward, future, option and swap.

Spot
A spot transaction is a two-day delivery transaction, as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the Spot market. Spot has the largest share by volume in FX transactions among all instruments. There is a two-day period when FOREX transactions have to be settled; this is true for all transactions except Canadian transactions, where settlement period is only one day.

Forward
One way to deal with the Forex risk is to engage in a forward transaction. In this transaction, money does not actually change hands until some agreed upon future date. A buyer and seller agree on an exchange rate for any date in the future, and the transaction occurs on that date, regardless of what the market rates are then. The duration of the trade can be a few days, months or years.

Future
A currency future is similar to a forward, with an agreement to do a trade FOREX at an agreed price on a pre-determined date in the future. A futures contract, however, is traded on a regulated exchange, while forwards are transacted in the open market. Foreign currency futures are forward transactions with standard contract sizes and maturity dates — for example, 500,000 British pounds for next November at an agreed rate. Futures are standardized and are usually traded on an exchange created for this purpose. The average contract length is roughly 3 months. Futures contracts are usually inclusive of any interest amounts.

Option
A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. The FX options market is the deepest, largest and most liquid market for options of any kind in the world.

Swap
It combines spot trade and forward transactions. A swap involves two parties agreeing to trade FOREX on one date and also to reverse the transaction on a specified date in the future. These are not contracts and are not traded through an exchange.

CURRENCY TRADING COURSE


CNNMONEY.COM

Oil surges on jobs report

Deutsche Bank profit falls 64%

Dollar falls on weak economic reports

THE WALL STREET JOURNAL

Nowhere to Hide for Equities after Jobs Data, Oil, and GM

McCain, Obama deliver Economic-Aid proposals

Job Losses Suggest Economic Weakness to Persist

Federal, Florida Regulators close first priority Bank.


BLOOMBERG.COM - BREAKING NEWS

Nissan Bucks U.S. Slump as Asians Gain Record Share

European Bonds Post Biggest Advance Since 1998 as Growth Slows

Japan's Bonds Complete Weekly Gain as Stocks Slump on Slowdown

Asian Currencies: Taiwan Dollar Leads Drop; Rupiah Bucks Trend

Sri Lanka in Fierce Battles With Tamil Rebels Ahead of Summit


Posted by at No comments:

MARKET SIZE



Technology advances like the internet have spawned a new craze, where anyone with a secure internet connection prepared to undertake a small amount of forex training can engage in online forex trading .

The trades taking place in the forex markets across the globe it’s known to exceed on average $1.9 trillion/day. Retail traders, this is, small speculators are only a small part of this market, but this doesn’t mean they can’t grab huge profits if they have learn the right way to trade Forex. These individual traders participate in the market through broker firms.

The global foreign exchange market can trade in excess of a trillion dollars a day. Sheer market size means there is considerable money to be made, and lost, through miscalculation. It is neither a guaranteed, nor easy path to riches, so traders should be educated in how to play the market.

The forex has several features making it a unique one. For instance, the volume of trades and the extreme liquidity of the market, a great number of the market participants and it's geographical dispersion, traders from all over the world, 24 trading hours a day, a great number of factors that can contribute to the exchange rate setting, low net margins (but not the profits) in comparison with other markets. Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 32.4% in April 2006. Other large centres include the US (with a 18.2% global share), Japan (7.6%) and Singapore (5.7%) (Chart 2). Most of the remainder was accounted for by trading in Germany, Switzerland, Australia, Canada, France and Hong Kong.

Posted by at No comments:

FOREX OVERTRADING!

It is said that overtrading ranks as one of the most common trading pitfalls in forex currency trading. It is the greatest single cause for losses in the markets. Whether you are winning now or losing now, ninety-five or more percent of all traders trade too often.

So what is exactly is overtrading and how are we going to recognize and prevent it? A good definition of overtrading is taking a position which is too large in relation to the available trading capital.

Overtrading typically comes in two main forms:

1. trading too many positions at once or trading too frequently in the market

2. always having an open position.

An essential tip in Forex trading is that you should have no more than 5 positions when trading in the market. Any more than that will cause detriment on your focus in each one of your trades which will generate negative effects on your transactions.

Overtrading also causes impulsive trading. The trading that is done without control and caused by greed. It leads to more risk in your account and also reduces your win loss ratio. It also increases your cost of trading as each time you are trading ,you are paying the broker commissions.

One way to control a loss is by reducing your size. The problem with traders is that they will often double up their stake so they can get even quicker. This usually leads to a greater loss and devastation. It takes tremendous discipline to hold yourself back from overtrading. So having the strength to grind your way back from a loss is important in trading.

FOREX TRADING SYSTEM



CME GROUP

News Releases:

Posted by at No comments:

Wednesday, July 2, 2008

FOREX MINI and MICRO ACCOUNT

You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn't. Online Forex brokers offer "mini" and “micro” trading accounts, some with a minimum account deposit of $300 or less. It doesn't mean that you should open immediately an account with the bare minimum but it does makes Forex much more accessible to the average individual who doesn't have a lot of start-up trading capital.

If you were just a starter and still learning about Forex Market, a good idea for you would be what is called the Forex mini and micro accounts. Mini Account is trading with mini lot sizes, generally 10,000 units of the base currency while Micro Account is trading with micro lot sizes, generally 1,000 units of the base currency. The mini account is also great for those who want to start off with a fairly low investment. The option of the Forex mini account is definitely a more realistic option for smaller businesses that would like to get involved in the world market with very little available capital.

Most brokers offer very small “mini-accounts” and even smaller "micro-account" for as little as a couple hundred bucks. These little cute accounts are a great way to get started and test the traders trading skills and gain experience. They are good ways to get your feet wet without drowning.

By starting with these accounts, a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy. In the long run, this will lead to much better trading results.

Other advantage of trading with these accounts is that traders are allowed flexibility in regards to customizing the trades and minimizing the risks.

Mini and Micro forex trading are a good way to start trading Foreign Exchange Market most especially for starters with a small amount of money. A trader can test various forex trading system without a lot o risk, keep good records and refine the trading techniques.


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

Forex Trading Strategies

CNBC.COM

Parts of July Employment Report Signal Recession

Stocks Kick Off August With a Drop

Credit Crisis One Year Later: No Signs of Turning Corner

YAHOO FINANCE

Expert Opinion section:

Four habits of financially peaceful people

ARTICLES FROM DAILYFX

Currency Trading Markets primed for profitable range trading

Comm Dollars remain weak as Aussie, NZ Economies falter

FOREX MARKET COMMENTARY - FOREXTV

The Stock Index report

The Bond bulletin

U.S. Dollar finishes the week higher against most major Forex Markets
Posted by at No comments:
Subscribe to: Posts (Atom)