Finding the Best Trading Platform

Foreign Exchange business or known as Forex trade is one of the large market in the world. Forex trading platform is software used by the people who are into the business. It basically served as the interface between the trader and the broker. There are different business platforms available in the market today. For some, choosing the best platform is difficult. Choosing the right platform depends on what business strategy you are using. The platforms will allow you to do business easily and effectively.

There are many things you need to consider in choosing the right business platform. You have to identify its benefits because different software can give you different features and advantages. One of the things you need to consider is the ability of the software to provide real time data such as your account balance and other movements in the market. This will also allow you to check the business charts. Choose also the platform that can give you convenience every time you enter and leave the deal. Another feature you need to consider is the trailing stops wherein you can lock your profit as soon as the profit is desirable. Lastly, you need to check if the software has an automatic dealing feature. This automated deal allows you to trade even in your absence. Most of the platforms have the ability to place deals automatically base your forex business preferences. However, in case your existing platform doesn't have this feature, you can set-up forex robot software. It functions the same with the automated deals and you can definitely use it along with your existing software.

Traders used platform because it can also help in increase the profit because they can perform faster and perform business with no error. Before you buy your own business software, it is better to consult other traders, make some research and establish comparison of the other platforms available in the market. In order to check how a system works, it is better if you use a forex demo account first. This will allow you to see the different features and determine if it is the right software you needed. There are different types of business software available for stock buy and sell, commodities and mutual fund business. There is a wide range of business platform - from easy to operate software for novice traders to advanced tools for sophisticated traders. Choose the right platform that suits to your needs.

Please visit our official website here to know more about the Forex trading platform. Providing quality reviews, articles and writings on forex online.

Basic Guide for Forex Beginners

If you are a Forex trading beginner, you will need a comprehensive Forex trading guide. There are different guides available online and these guides will surely provide you the enough knowledge to successfully find your place in the Forex market. The guides will provide you the necessary knowledge, especially the basics of Forex business.

Forex business deals with a cash market and investors earn profit from the currency movements. Trading of currency happens involving a pair of currencies. The decision you have to make, whether to buy the currency or sell it, depends on the recent currency movement. Thus, it is very necessary that you know how the pricing affects your decision. You must be very wise on how to control your investment to make sure that you can gain profit. In addition to this, you must be updated with the exchange rate and study the trending of the trade.

Another thing beginners should take into consideration is the different technique on how to gain profit. Basically, the main reason you enter in that market is to earn. Thus, you must understand how the pricing works. In Forex market, there are no commission earnings. The broker will only earn money base on the difference between how much the buyer pays and how much the seller receives. The difference is referred as "bid-offer spread"

Aside from consulting an expert adviser, the other effective way to study how Forex works is to use a demo trading account. There are many demo accounts available online and you can use them for free. You can perform the trading process using fake money. You can also try different strategies. These demo accounts have been very helpful for beginners since they are given the chance to familiarize the different platforms without any additional cost. In other words, it is a risk-free step to make. Use demo account in improving your skills. Before participating into the actual trading, double your demo account first. This will test you on how great you are in making a deal. You have to properly deal your losses and know when is the proper time to buy or to sell.

After reading and studying the different aspects and strategies about Forex market, you will surely have a full understanding on how the business works. You will also develop a wise strategy to increase your earnings. Thus, take time to study, read all the tips, and take some Forex education to help you with your career in the Forex market.

If you are thinking to start doing forex business online, then this forex trading guide can help you: forex for beginners. Providing quality reviews, articles and writings on forex online.

3 Simple Intraday Trading Strategies

It is generally accepted that intraday trading is where the action is. The adrenaline rush of making the right decision under a pressure cooker is like no other. Beside, practitioners of this approach concedes that they do not like to leave their position overnight. The financial crash of 1987 served a painful lesson evens when most brokers were raking in thousands of dollars per month before that. The fact that the market now is open 24 hours a day also leaves a lot of room for vulnerability. You just do not know what is happening with the rest of the world whiles you were sleeping. But if you are not careful, or knowledgeable enough, this is also the fastest way to lose your money.

Know your position

There is no single system that can guarantee returns. Two people may use a different tactics and may end making the same number of profits. It's important that you develop your own tactics that is backed with a lot of research and trial-and-error. You can buy a day trading software for this. The goal of trading is to sell high and buy low but that is putting the cart ahead of the horse. You have to know how to make a position first, which simply means how much money is you going to risk. There are many methods to determining your position size but the most common is to multiply your account size with the risk per trade, which ranges from 1-3%, and factoring in the stop-loss margin. The total will be your position size.

Do not be afraid to change your system

Do not ever think that you already have the perfect system just because you made a few bucks. You should always subject your strategy to rigorous tests to find gaps in the process. The system does not only include the tool that you use for trading but also your mindset. Are you quick to the draw when you find an opportunity to sell? Or will you leave the leveraged position for a much later time to make an even bigger profit? When assessing your intraday trading tactics, the weighted measure should not be how much your profit margin is. Rather, do you trust your system with your money evens when all the odds are against you?

When it's time to cut losses, do not hesitate

What you need to understand is you will not always win. In fact, when you are just beginning, you will lose more than you will earn. That is why the failure rate is high because beginners walked away just when they were about to turn a corner. With that said, one of the most crucial day trading strategies knows when to cut your losses. One way to do this is to determine the stop-loss point that you are most comfortable and sticking by it.

Easy-forex.com offers for trading strategies through expert. For details click here Intraday Trading and Day Trading Software. Providing quality reviews, articles and writings on forex online.

5 Simple Rules For Successful Forex Trading Strategy

If you are ready for a change of path and life, forex is the way. Forex market now trades as of vicinity of 3 trillion dollars daily. Three trillion is a lot of money more than any other market, including the stock market. With this kind of liquidity comes a lot of volatility and that's where the profit is made. To make money with FOREX we need the price to move rapidly and in trends. Forex provides plenty of opportunities to do that.

Like any good Forex trading strategy your strategy should be based on sound money management.

The first real lesson I learned about Forex is that money management is the most important part of a successful forex trading system. You need to really understand that. Tell yourself that every day if you have to manage your money properly and you will be a successful Forex trader.

5 Simple Rules to Successful Forex Trading

Rule 1: Never enter a single position larger than 1% of your account size. I calculate 1% as the total amount of my open position at 100 pips. So for instance, assuming I'm using 100:1 leverage and I have an account balance of $10,000.

$10,000 / 1% = $100. I can open one 10K position. At 100 pips, this position will equal 1% of my total account balance.

Rule 2: Only close losing positions when your total drawdown is over 12%

So if you have an account balance of $10,000 you would not close any losing positions unless your total drawdown is $1200 or greater.

I enter all my trades without setting a stop loss. That's where the next rule comes in.

Rule 3: Buy low, Sell high

This is where long term analysis comes in. Look at your charts on a daily, weekly and monthly time frame. Look for major levels of resistance and support.

NEVER go long (BUY) near a daily, weekly or monthly high.

NEVER go short (SELL) near a daily, weekly, or monthly low.

SELL if price approaches a daily, weekly or monthly high.

BUY if price approaches a daily, weekly or monthly low.

I'm not talking about only trading on daily or weekly charts. I just want you to be clear that when dealing with really major levels of support and resistance you never want to trade against them.

That is one of the key elements of this forex trading strategy.

Rule 4: Hedge when necessary using high correlation pairs.

Hedging is simply a way of managing your risk. By opening a trade on a different currency pair that moves in a similar (or opposite) fashion to the pair you're currently trading you can manage your risk.

Rule 5: Take Profit When YOU Want

Remember, we are not using any stop losses. We can however use limits (take profits). I generally set my limit at around 50 pips.

I aim for 50 pips each and every day!

If I make 100 pips in a day, I will close the trading account for the remainder of the day and take a break. Remember, 100 pips is equal to 1% of your TOTAL account balance assuming you're risking 1% of your account for each position.

If you can make even 50 pips a day that's over 20% a month!

On a $10,000 account that's $2000/month consistent profits, only risking 1% in each single trade. And that's without compounding!

Patience is key

I've had positions against me over 2000 pips! While those positions were losing, I was hedging and making profits.

Sure enough, weeks or months later those same positions that were over 2000 pips against me came back. Because I had patience I was able to close those trades for a profit.

So don't panic if a position goes against you. See if there is a possibility to hedge. If there is, great. If there isn't, wait it out.

You can still make other trades while you're waiting. That's the beauty of only risking 1% per trade.

Nicu Lucanu is a finance researcher in forex trading and he made a lot of investigation about this topic. Discover much more information in his review site regarding forex market. Providing quality reviews, articles and writings on forex online.

Dear Investor, Are You Trend-Following Material?

Yes, We Can't! Or Can We?

Just like there's a major difference between theory & practice, reading trading books & trading the markets are hardly the same thing. Otherwise, just reading a good investment book would instantly put a load of money in our pockets.

Similarly - there's a big difference between who we want to be & who we really are, otherwise we'd be living in a much better world.

Just like the market discounts everything, in trading who we are discounts who we want to be.

The markets are not an environment for guesswork.

You can't predict the market, and you can't control it.

But you can control yourself, and to a large extent, by knowing how you function you can predict your actions quite accurately. Moreover, no one else can do this better for you than yourself. This is an edge for you, the trader.

So let's get personal. Starting from a few facts about who you are, let's try to determine your basic psychological profile & whether trend trading is really for you or you should be a knife-catcher instead;)

Patient vs. Fast & Jumpy

Are you a patient fellow? Everyone talks about "respecting your trading plan" & "being disciplined" in your trading & indeed, patience is one essential individual quality associated with discipline in trading. While patience is required for BOTH approaches, it is much more important in trend-trading, due to the necessity to stay longer in the market following the trend, cut your losses short & keep your profits running.

Got itchy fingers?:) When you are trading counter-trend, you have less time to react & enter a trade (if you are slow, you miss the train). Trend-trading requires less speed of reaction, since a trend you're planning to "ride" is not something that disappears from one minute to the next, while opportunities against the trend are by nature less in number & more limited in time.

Rational & Organized vs. Emotional & Erratic

Are you a reason-driven person? Against common belief, there's more pressure on a trend trader than on a counter-trend trader. Think how many times you closed a trade too early, and you will immediately understand why. Being able to understand all elements of the trading plan & act on them in a lucid, coherent way will help you in following the discipline of the trend. Trend-following trades need to work like surgeons, cutting their way through the trend at precise moments.

Do you allow Emotions to take over? When trading against the trend, you will usually go for SHORTER trades (compared to the length of the trend). There will be less time to crack under pressure, and knowing your trade will soon be either in profit or closed for a loss should keep you from interfering with it (thus increasing the chance of respecting your trading plan). if you know yourself to make emotional decisions at times when reason should prevail (when trading, that's always!) then you may want to seriously consider counter-trend trading, as trend-following action may not be your cup of tea.

Risk Taker vs. Safety Freak

Do You Enjoy a Good Thrill? Human nature drives us towards safety (closing realized profits, even small) and away from the unknown (unrealized profits, on the table, at risk), even if we do have a trading plan and the desire to follow it. Most traders I interacted to (up to 95%, give or take) have at least for some time in their trading career cut their trades too early thus losing good potential profits in equity. As a trend trader, you will need to beat this obsession with safety, and allow your trades to be exposed to controlled risk (since you have the advantage of probability on your side). You will need to by psychologically strong enough to take a risk without blinking (controlled & calculated risk, of course - according to your rational & organized personality), as breaking the dynamic of the trend can kill your strategy in the long run.

Not Comfortable in Risky Situations? Trend trading is increasing the odds of closing trades too early, while counter-trend strikes are less psychologically burdening. Besides, stop losses can be moved to break even much faster when being in a "right or wrong" scenario (thus putting the trader's mind at ease faster about having to take a loss), while when riding a trend stop loss placement can be problematic due to the large stops associated to high probability trading (trend trading has in general higher probability of success, although it may not always have equally good risk/reward). So, if you're not the kind of guy who enjoys living on the edge, counter-trend trading may be your thing.

Conservative vs. Aggressive

Not the Adventurous Type? if you don't mind walking the beaten path (which is also safer, clearer & more predictable!), then you are probably more of a trend-trader than a counter-trend trader. if you don't mind taking your pips in the middle of a trend - as long as it's very clear you are on the right direction - you're a trend lover at heart. If you like doing things the proven, "right" way, if you prefer a known "good" to an unknown "possibly better" & don't like being the first at a party, then the trend can indeed be a good friend to you.

Are you bold & daring? Some people like the trading adrenaline just as much as they like profits. That's OK, as long as they don't love it MORE than the profits & start trading for thrills instead of cash. If you think that just jumping on a trend after it started & after it's been confirmed is just too boring for you, then forcing yourself to do just that will not help & may eventually bring you to acts of indiscipline. Stick to counter-trend trading & you will constantly experience the pleasure of being in a move before everybody else - the satisfaction of doing what you love can help you stay "in the zone" & enjoy your hours of trading.

Modest vs. Proud

Like Keeping a Low Profile? If you don't mind taking 3 losses for 1 win - if the win makes 4-5 times more than a loss - then you're definitely well-cut for trend trading. If you're not interested in proving yourself to yourself or anyone else & what matters is the overall equity curve, not having a large number of winners & being "wrong" will not matter & won't put unnecessary pressure on you. The trend will give you sustained rides, much larger than your initial risk, moves than can easily cover for 2, 3 or even 4 of your losses. Consistently scoring a 40% win rate on a 2:1 risk/reward strategy will make you very profitable in the long run, although you will be wrong more often than not.

You Enjoy Saying "I Told You So"? Some people just like being right & sticking it to others. While this is something every trader should constantly try to fight against (because the market is the only one right all the time!) it is nevertheless a feature of our personality that we should try to acknowledge & - why not? - even use as an edge if possible. A positive mindset (given by a high number of wins) can help you stay motivated as long as it doesn't turn into outright cockiness. If you know yourself to be proud & you often count the winners against the losers then you must look for a strategy with a high winning rate, even if the risk to reward may not be more than 1:1. It's likely a counter-trend system may give you just that, while a trend-following strategy could bring up feelings of frustration as you would tend to focus more on the negative side of things (wins vs. losses) instead of the positive (a profitable equity curve).

Conclusions

The markets are a challenging environment & trading is a highly sophisticated activity. We really don't need to add in our own personal weaknesses to make our job more difficult. We should all do our homework before we trade, learn about our strengths & weaknesses & come to the battlefield prepared & well-armed.

Ee need to understand & fully use ALL OUR EDGES to prevail on our competition. Other traders are NOT our enemies - the market is an objective, perfect entity, remember? We are our worst enemies, and our indiscipline is our enemies' leader. The market does not take our money, we give it away ourselves through our actions.

We are not perfect entities, and knowing ourselves, admitting our personal personality biases is CRUCIAL for improving our trading results (whether we are newbies or pros).

Carefully analyze your personality before creating your trading plan, and come up with something will work for you NATURALLY. Always think about WHO YOU ARE, not WHO YOU WANT TO BE! If you are into self-improvement (and you should be!), do that outside your trading hours. You may not be perfect, but while you are in front of your platform you should strive to become a perfect entity too: a machine that perfectly follows a pre-designed trading plan.

Some of you are fully "automated" traders (with or without robots), strictly following rules & only rules, leaving nothing to discretion or real-time subjective evaluation. That's great, because while you may be missing out on some action every now & then, you will be much less likely to be hit by a bad drawdown (usually created by indiscipline).

If on the other hand you are a DISCRETIONARY trader, you must carefully define the limits of your discretion. You don't want to be discretionary to the point of doing whatever you want whenever you want, overriding your entire trading plan. This approach can lead to nothing but failure. Again: discretionary or mechanical, trend-following or counter-trend trading - there's no right or wrong answer.. But when it comes to YOU, there is a better way to do things, that comes out of knowing yourself & giving the markets (as well as everything else) the best of who you are.

This is a personal re-writing of Mihai's recent webinar on trend-trading psychology. As I found it extremely interesting, I used an audio transcript of the session & Mihai's own notes to make it available to other traders. It's also my way of saying thank you to a great trader & teacher for the dedication & patience he put in my education & all the long messenger chats over the past 4 years:) For over 3 years I am successfully trading both trend-following & counter trend strategies & make a really good living as a trader & recently as a fund manager.

I can warmly recommend Mihai's educational program if you are looking for an A-Z training (it's not advertised, you'll have to contact him via his website). I loved it because the approach was very personalized & he followed-up closely with me after the training until he saw I was able to consistently make money. He still checks on my trades weekly. If you are an already established trader, I highly recommend the live trend-following system (his website offers Free Forex Signals Live with direction, levels & other tools, so you can check them risk-free). If you are looking for professional money management feel free to contact me directly. Providing quality reviews, articles and writings on forex online.

Trading Technical Chart Patterns With Help Of Forex Trendline Tool

In currency trading, the movement of currency prices creates distinctive formations that are known as chart patterns. Common points or lines are connected over a period of time in order to define a technical pattern. Closing prices, highs, lows, etc. are connected by these lines of points or what we commonly use know as a Forex trendline tool available in Metatrader 4 platform.

In order to predict an underlying currency pair's future price movements, these chart patterns are used in technical analysis in conjunction with the forex trendline tool. The tool available is a useful feature that assist trader in identification of key price levels and also to mark out elusive patterns that traders may often miss out on.

Identifying these chart patterns on the currency chart for a new starting trader will take some time. It is definitely going to take time and experience to understand market movement and pattern formation.

While starting traders may often identified the patterns too early in their formations, due to their excitement may as a result place trade entries too early based on the lack of pattern confirmation which may leads to false trading signals. Therefore it is great if there is a customized forex trendline trading tool that can help in the execution of trade entries based on proper trading signals and the monitoring of the trade process all on automation.

Going back to the five most important trading technical chart patterns in currency trading that all traders should be familiar with:

- The Wedge

- Head and Shoulders

- Channels

- Descending Triangle

- Double top

The Wedge

The wedge pattern has two variations. The wedge pattern actually is a reversal pattern, which indicates the occurrence of a reversal of the pattern within the wedge's boundaries. Thus, the bullish reversal pattern is the falling wedge and the bearish reversal pattern is the rising wedge. The lows and highs of the candlesticks are connected to form the wedge, as a result of which a pattern is produced. In the wedge chart pattern, the slope formed by the upper trend line is sharper than the falling wedge and the slope formed by the lower trend is sharper than the rising wedge.

Head and Shoulders

As the name suggests, this trading chart pattern resembles a head flanked by shoulders on both sides. When the highs of the candlesticks are connected by a trend line forming tow troughs and three peaks, then the head and shoulders chart pattern is formed. The head refers to the larger price peak and the shoulders refer to the smaller price peaks. The head and shoulders chart pattern is a bearish pattern. For sellers, a favorable break in occurs when a small descending triangle starts appearing.

Descending Triangle

The descending triangle is a bearish pattern is formed when lower highs form an upper trend and the lows form a lower horizontal trend line, both of which converge with each other. Eventually, a bearish breakout occurs at the lower horizontal forex trendline.

Channels

Ascending channels, descending channels and horizontal channels are some of the variations of channels. Channels are defined in the same way regardless of which variation is seen on the chart. Channels are defined as technical ranges with prices that have traded in for the time being. When the price range trends upwards ascending channels occurs, when the range trends downwards descending channels occurs and when the range consolidates sideways a horizontal channel occurs.

Double Tops

Double tops, is a bearish reversal trading technical chart pattern by one trough in between two successive peaks. The level of the peaks is almost the same. The trough acts as a temporary support and the neckline is formed by a horizontal line that is drawn at this point.

Out of all these chart patterns the head and shoulders and the double tops patterns also have reverse patterns known as the Reverse Head and Shoulders, and the Double Bottom patterns. As mentioned, traders get a signal from these trading technical chart patterns that it is profitable for them to buy or sell certain currency pair. Thus, these were five of the most important currency trading chart patterns every trader should be aware of.

In addition, all traders should have a look at a simple method like forex trendline tool to trade these technical chart patterns on full automation based on the traders' personalized trading plan efficiently and effectively.

Warren Seah is the co-founder of Flagforex business. Flagforex develops trading software for the currency trading industry. Trading software such as how a forex trendline tool software can help a trader by automating trades using forex trendline tool. Providing quality reviews, articles and writings on forex online.

Forex Trade: How to Choose a Forex Broker

Choosing the right Forex broker can be a difficult task. Due to the ever expanding interest in currency trading by the public, the number of brokers is growing fast. Chances are most new traders have no idea on where to start. Finding the right broker requires cautiously sifting through an overwhelming number of Internet advertisements and forums. It is important that you carefully check out every broker before choosing one that suits your needs.

Here are a few tips on how to choose a Forex broker:

24/7 Support

Forex is a 24 hour market, so your broker should offer support day and night. Before hiring a Forex broker, try to find out if you are going to have a dedicated point of contact and how quickly your issues will be solved. Trading hours on the Forex market vary depending on what currencies you are interested in trading. If you had questions about order execution, you should be able to get an answer no matter what time it is.

Initial Deposit

Search for Forex brokers who require a low initial deposit ranging from $300 to $500 or less. Not every broker has this feature. Some brokers require their clients to invest thousands of dollars, which is not the best option for new traders.

Regulation

Before choosing a Forex broker, you have to make sure that he is regulated. Most brokers are members of the US-based National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC). Those who are regulated choose to be so, in order to add legitimacy to their reputation. If the broker is not registered with any of these organizations, then you may want to think twice before hiring him.

Transaction Cost

Every time you trade currencies, you will have to pay a commission or a spread. Sometimes you may need to sacrifice a low transaction for a more reliable broker. Because currencies are not traded through a central exchange, the spread can vary depending on the broker you use. Some brokers use a variable spread, while others require a fixed spread.

Software

Choose a broker who offers an easy to use trading platform. Any reputable broker will allow new customers to trade on a demo account. This will give you the chance to test out the trading platform before investing real money. Professional trading software will show live prices, not just indicative quotes. Read reviews about the brokers you are interested in and visit their websites for more information about customer support services, availability of addresses and phones, and Forex trading rules.

Many new traders are searching for easy Forex tips in order to learn more about trading currencies and familiarize themselves with this market. Whether you want open an account or improve your skills, Forex trade is a great way to supplement your income. Providing quality reviews, articles and writings on forex online.

Scalping Forex

Scalping Forex is a popular quick trading method involving swift opening and closing of trade positions. In this method the traders keep their positions open only for a few seconds or at the most 2-3 minutes. A majority of scalpers hold their positions for as short as one minute. The basic idea behind scalping is to make small chunks of profit consistently and thereby increase the overall profit. The swift opening and closing of the trade exposes the trading account to lower levels of risk. Scalping is done with huge amount of funds. So, even a mild pip movement creates significant profits.

Following are the tips, tricks & necessities for effective Scalping:

1. A professional scalper needs to have a broker, who provides the best automated processing platform and allows scalping.

2. The scalper needs to be very attentive, patient and meticulous person. He should clearly absorb the value of reaping small profits to transform into larger proportions. Patience is the key aspect in scalping. This type of trading would not gel with rash and highly excited individuals.

3. A conventional scalper has to open and close hundreds of positions during a day. He has to keep a very strict stop-loss to ensure that the losses are capped. The scalper has to give equal importance to all his positions and can't afford to be slack at any moment.

4. Forex Scalpers are only concerned about the shorts bursts of unpredictability. They need to understand the market behavior at a micro level so that they can take advantage of even the slightest fluctuations to realize their profits.

5. Successful Forex scalpers need solid focus and tremendous devotion. They need to possess strong dedication and ability to stand by their plans religiously.

6. Forex Scalpers need to realize that not all currencies are best suited for Scalping. They need to choose the ones where scalping is painless and rewarding.

7. Scalping Forex is not encouraging at all the times. Scalpers need to find out the correct times that would allow them to take fruitful positions and convert them into sizable profits.

Forex scalpers devise various strategies that help them in Scalping. Every scalper has his own strategy and technique to generate profits. There are different price models and price formation patterns that make scalping more lucrative.

a. Breakout Scalping - Some scalpers verify various breakouts to carry their trade. Breakouts can happen due to some macro-economic, policy or domestic business news that provides a new direction to the market. Technical breakouts happen when the currency price closes above the specific resistance price.

b. Range Scalping - Some Scalpers believe that a specific market range is best fit for scalping. These scalpers choose to operate within that range.

c. Trend Scalping - Some scalpers analyze the overall trend and then participate in scalping Forex. Trends are generally unstable and many scalpers like to follow the trend with strict stop-loss to minimize the risk of heavy loss.

Scalping Forex is not suitable for everyone. Only those who understand the market movements quickly and perform rapid trading by following the rigorous principles of discipline, focus and patience succeed in their endeavor.

Nicu Lucanu is a finance analyst in scalping Forex as well as he made a lot of investigation about this topic. Discover more in his review site regarding Khaleej Times Forex. Providing quality reviews, articles and writings on forex online.

Forex Online Trading? How To Test a Forex Trading Strategy

There has been a rise in trading Forex online the last couple of years. The traders have access to a lot of trading tools like the Bollinger Bands, the Stochastic Oscillator, Parabolic SAR, Linear regression, Williams %R etc.

But which provides the best results? Which gain most profit? Do the tools gain different profits in different market situations? Etc.

My focus in this article is to describe how to test these tools as a Forex trading strategy and how the test results can be written in a table.

A test is several trades with the same indicator. A test could be 20 trades with two indicators as it is unusually just to use one indicator. A test could also be 20 trades with three indicators.

The advantage testing and note the test results in a table are that it provides an overview of which of the indicators that fit the trader and which one gain the most profit. The goal of the test is to improve skills and profit margin.

An example of a test could be 20 trades with the Bollinger bands as the primary indicator and the Stochastic Oscillator as the secondary indicator. If a third indicator is needed it could be the Alligator as a secondary indicator.

Each time a trade is made the trader makes notes in a table. The table consists of five columns with the following headlines

Date

Currency pair

Strategy

+ Pips

- Pips

Notes

In the example the notes in the table could look like this.

Date

22 of august 2012

Currency pair

EURUSD

Strategy

Primary

The Bollinger bands

Secondary

The Stochastic Oscillator

The Alligator

+ PIPS

20

- PIPS

N/A

Notes

The trade was stopped as the price line is outside the upper standard deviation and the candle stick was red.

The tests tell the trader how he has done in the past and with which trading tools. In the column Notes he could have noted how he felt during the trade. An example could be if he felt stressed or relax. If the 20 trades showed that he was relaxed it could look like he had found a trading tool that fits him.

As mentioned the goal of the test is to improve the skills and profit margin. But it is still important to keep in mind that a past performance of any trading system or methodology is not necessarily indicative of future results.

Visit my Forex website and pick the trading area Forex. Download the simple and user-friendly trading platform for free and start testing the Bollinger Bands and the Stochastic trading strategy. It only takes a few minutes to download. The indicators are at the f (x) button above the currency pair graph.

The trading platform offers a free bonus for registering. Providing quality reviews, articles and writings on forex online.

Importance Of Forex Forecasting And Forecasting Long Term Prices

Forex trading is one of the most difficult things to do. Trading itself is not hard, but the real issue is the risk that is involved in trading. The risk involved in trading primarily originates from the unpredictable price movements. Forex market keeps on moving and it never stops for a single moment. Prices change and market moves from one point to another. Price movements can either be instant or there can be a gradual shift from one point to another. And these price forecasting never come without risk.

The way to trade successfully is to predict and forecast price movements in advance and then prepare yourself for those movements in advance. Price forecasting is very important for several reasons. How could you invest in a currency about which you have no idea how it will act in next couple of hours? It is never advisable to trade in a currency pair without future prediction of prices.

Those who join forex market and do not use any forex tool, chart or analysis and keep on trading, it is possible that they win a few trades and make some money without forecasting future price, but in the long-run, they cannot survive. It is not necessary that price will move in the same direction what you are thinking. Hence, forecasting future prices is very important from this point of view. It is advised to use all possible price forecasting tools before investing in a currency. And you will only do that if you realize and know the actual importance of predicting price movements.

Importance Of Prediction In Forex Trading

- It is not possible to trade without knowledge of the market and currency. As mentioned, there are chances that you might win the trade, but it will not happen all the times.

- Trades based on forecasts are safe and secure. If you know that the price of a particular pair will move down, you can plan to tackle with such a change in advance.

- Risk is significantly reduced if you properly plan, forecast and predict future price movements. Price forecasting helps you in judging future price movements, so you can plan accordingly.

- If you do not predict prices in advance, and do trading without ample knowledge, you can never become a good trader. You will never learn anything from trading no matter how many years you spent in the market.

- If you have the knowledge about market, everything will become easy for you. You will love trading when everything will move as expected. Otherwise, trading will give you a hard time.

- Proper forecasting can help you in saving a lot of your capital. This is because when you will predict prices and plan in advance, you will win most of your trades. This way, you can save a lot of your hard earned money.

Predicting and forecasting is not hard. There are hundreds of tools that you can use to predict price movements. These include forex indicators, technical charts, fundamental analysis, technical analysis, signals, market trends and much more. You can find all these tools and charts with your broker, and it is strongly recommended to use all of tools to make trading easy for you.

Contact us if you are searching for good forex brokers to guide you in forex trading. Providing quality reviews, articles and writings on forex online.

How to Be a Currency Trader: Becoming Professional

How to be a currency trader? These days, becoming a professional currency trader has become very easy since there are so many places to learn currency trading online. In fact, one can become a professional currency trader from home as well. So, those who want to become professional currency traders should consider the following four simple steps.

Those who aspire to become professional currency traders can earn an exciting second income, regardless of their age, gender and educational background. Following are the four simple steps that will enable people to start trading like professional traders.

1. Accepting Responsibility

There are many online vendors who claim that easy money can be made by traders who follow their automated software trading packages or trading signals. Unfortunately, none of these packages actually work and so it is just a waste of money. Traders fall for these black box trading software quite often and they believe that they will get rich without making much effort, simply by paying money, but that is merely a fantasy.

Getting the right mindset, learning skills and accepting responsibility for their destiny are three things people must do to succeed at currency trading. Currency trading can be learned within a few short months, so working hard for years on end is not necessary and with the right training it can take merely thirty minutes per day or less to eventually generate a second income for you.

2. Using a Simple Price Action System

A simple system is all that is needed when it comes to becoming a professional currency trader. Selecting a really complex system should be avoided for a start. Systems should be kept simple and pretty basic when first starting out. This is because a trader will first have to understand how the market moves and also get familiar with how his selected strategy works in a live market.

Understand how the market move from down to up cycle, and what are the elements each market upswing and downswing composes of, this will help the trader understand the patterns and movement better. The next step is to 'tune' his basic system to work with the understanding of the market research. To buy when his system tells him that market has the highest probabilities to trend up, and only to sell at the market when it has the highest probabilities to trend downwards.

Price action systems should be best traded for beginning traders because they are simple compared to other technical trading strategies. Price action systems are technical chart patterns that have already worked for a long time.

3. Accepting Losses Because No Currency Trader is Perfect

Winning every trade is not possible for a currency trader and keeping losses small is important when trading on leverage. Losses can be reduced to the minimal with strategy testing, so it is better maximize the number of winning trades and minimize the number of losing trades. Generating a positive returns is still possible for traders that 'win big but lose small', even if they lose 70% of their time with sound risk and money management, overall trading returns could still be positive. The foundation of currency trading is built upon preservation of equity and money management.

4. Always Trade With Discipline

Trading with discipline is something that majority of traders cannot or do not do. Usually, when traders start losing, they revenge trade, run losses, swap systems or just stop trading. Traders should always trade with discipline and follow their system, while keeping in mind that they won't have a system unless they follow it with strict discipline.

Why Currency Traders Can Win?

Currency trading is a skill that can be learned and not only should currency traders have the right mindset but they should also improve their strategies till they work for them. Fortunately, currency traders must learn both and this will lead them to become professional traders and finally; succeed in trading.

Warren Seah is the co-founder of Flagforex business. Flagforex develops trading software for the currency trading industry. For the bonus video on "How to be a Currency Trader" Kindle book, visit the book press release here for more details:

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Forex Trade: The Benefits of Forex Trading

The Foreign Exchange market or Forex is the largest of the world's financial markets. Daily activity often exceeds four trillion dollars a day. Many traders believe that it is easier and more convenient to make money in foreign exchange than in any traditional types of investment. With the widespread of online trading platforms, currency trading has become increasingly more popular among investors worldwide. Forex offers excellent investment opportunities to those who want to diversify their portfolio. Here are the main benefits of Forex trading:

High Liquidity

The high liquidity of this market is due to the large volume of currencies traded around the world. Liquidity is the ability of an asset to be converted into cash quickly. Since the Forex market is open 24 hours a day and five days a week, investors can take advantage of trading opportunities as they happen rather than waiting for the market to open next day.

24 Hour Market

As long as there is a market open somewhere in the world, trading is continuous. Investors can access the Forex market at any time of the day or night. This is particularly beneficial to those who want to trade on a part time basis, because they can choose when they want to trade: morning, noon, evening, night, or during breakfast. Traders can respond to currency fluctuations caused by political, economical, and social events as they occur.

High Leverage

Leverage is the ability to trade more money on the market than what is actually in your account. Forex brokers allow investors to trade the market using leverage. Forex offers the highest leverage available for any market. Leverage gives traders the opportunity to make nice profits while keeping risk capital to a minimum.

Low Cost

The spread is the amount of pips between the asking price and the bidding price. It compensates brokers for taking on the risk that the price might change from the time they execute your trade to the time they hedge their next exposure with a bank. Spreads on the Forex market are less than the spreads applied to stocks and other securities, which makes Forex one of the most cost effective ways to earn money from investment trading.

Practice for Free

Most online brokers offer free accounts that allow investors to practice trading and learn more about the Forex market. These demo accounts are ideal for those who want to improve their trading skills before they open a live account and invest real money.

Millions of people who want to improve their trading skills are searching for easy Forex solutions. Most brokers allow clients to open accounts with only a few hundreds of dollars, which makes Forex trade very popular among people from all over the world. Providing quality reviews, articles and writings on forex online.

Day Traders, Learn to Stop the Bleeding

There are many types of Forex Traders, each with his own style. On a day-to-day basis, Forex has thousands of individuals that are trading multiple pairs. The trading volume on any given day can range from little to extremely heavy, depending on the time of day, the Market conditions, and other factors that can be associated. Because of the various opportunities that exist in this busy market, traders of all calibers have emerged. The different types of traders are day traders, swing traders, long term holders, and scalpers. We will be discussing day traders.

Day trader are people who simply buy and sell within the same day. The reason they do that is to buy and sell to turn a profit with a short-term movement in the market price. Many day traders understand that if you hang on to a good trade too long, the up tick will have passed and the stock could plummet. What I have seen from a number of beginners (and some veterans also) is that because of various reasons, people wait too long and as a result they end up not making any money at all.

My advice to all the newbies; because of your newness to the Market, I would suggest that you start by trading a demo account. With that scenario, you are not using real money, yet you are choosing your pairs, buying and selling as if it were real. You will accrue pretend gains and pretend losses. If you are, in fact, interested in trading real money, you should find a company that allows you the ability to open an account with a small amount. Also it would be BEST for you to use a training company that gives you the opportunity to "earn while you learn."

I have always taught my students that before they start trading, it is a very wise decision for you to set up a few rules for yourself. The most important rule, in my opinion, is to limit your losses. Forex isn't just about gaining, but even more, it's about avoiding losses. I believe that you should put a dollar amount on what you will allow yourself to lose in a single day, but you MUST stick to it.

Just don't be like many day traders, who make the mistake of holding on to pairs way too long, rather than closing the trade and just taking a small gain or a slight loss. When they notice the pairs initially starting to lose money, they decide to hold onto it thinking the market will change in their favor and they can make back whatever they've lost. Instead of the anticipated gain, the result is even more money loss than if they would have just closed the pair when it hit its loss limit.

If you will be successful as a day trader, you need to know your limits, trust your strategy, and learn with an education company that will provide an earn-while-you-learn opportunity. Forex can be a great success for you, but ONLY if you make the decision to work at it. Take a word of advice from one who has experienced MANY losses, finding a coach or someone who is willing to walk you through the beginning portions of your Forex career is invaluable. Find a coach and learn Forex today.

NBCX is now offering FREE eSignals. That's right, we will give you an opportunity to receive veteran trader's FREE eSignals. Visit us at NBCExchange.com for more details.

We want to show you how to get more out of your investments. NBCX is giving away a FREE book to help you learn the Market and how to become more financially independent. For more information or if you would like to join our FREE Learning Center and begin taking classes for FREE, be sure to visit NBCX online TODAY.

As always, happy trading. Mr. Brewer, Founder, NBC Exchange. Providing quality reviews, articles and writings on forex online.

Being Sneaky in the Market

I believe that Forex trading, for beginners, is hard. I would even go so far as to say that it is quite difficult to become successful - except if you have a learning coach or some sort of assistant that will walk you through the entire process, more than once. What I have learned from my many years of Forex trading is that this business, like any other legitimate business, is going to take a little time to create a luxury cushion that most investors like to have. As I have stated many times before - don't go for the quick money, slow and steady is what wins.

To be truly successful in the Forex Market, traders need to be willing to find every strategy that they can that brings pretty consistent results, and then replicate them. That's basically it, Forex doesn't contain any magic work, it doesn't have "special powers," it is simply find a good strategy and keep it. Not just strategies, but also any little "secrets" to help you navigate your way around the Market is useful too. By the way, I would like to share a little "secret" with you.

One of the tricks that I've learned, which ended up saving me countless hours and thousands of dollars. I am going to shave some time off of your learning curve, with this one little bit of information. Always bet on the Europeans. The European session starts around 8 am GMT - which seems to work to the Londoners advantage, since the eastern Europeans would have already gotten their part of the momentum going already, this is what is called the London Advance.

Because it is a brand new day for them, not to mention it is totally vulnerable, the Market generally does not have any time to do any fakes and quickly moves in its intended direction very rapidly and decisively. Each time you see the pattern emerging, all you need to do is quickly get into it and ride that trend wave. Be sure not to forget your stops, though, just in case you're wrong about the whole thing goes the opposite direction.

Remember that the rule in Forex is not "win win win," but "retain retain retain." What I mean by retain is this, the key isn't how much you make, but how much you hold on to. Always bear in mind that your goal is to lose little when you're wrong, but take as much as possible when you're correct. That's how I teach all of my students to become profitable in this crazy Market.

If I had to choose, I'd say that I believe the European session provides the best opportunities because that's where most of the trading liquidity and volume takes place. Nevertheless, it is always up to you. At the end of the day, my advice is to trade whichever session you enjoy and receive the most profit from your trades.

Happy trading...

NBCX is now offering FREE eSignals. That's right, we will give you an opportunity to receive veteran trader's FREE eSignals. Visit us at NBCExchange.com for more details.

We want to show you how to get more out of your investments. NBCX is giving away a FREE book to help you learn the Market and how to become more financially independent. For more information or if you would like to join our FREE Learning Center and begin taking classes for FREE, be sure to visit NBCX online TODAY.

As always, happy trading. Mr. Brewer, Founder, NBC Exchange. Providing quality reviews, articles and writings on forex online.

Why Forex Traders Often Switch To Third Party Signal Providers

New people enter the forex trading industry every single day, often as individual traders who attempt to generate profits all by themselves. The trouble is that even highly experienced traders often find it difficult to turn a profit, so the novice trader has very little chance of making money in the long run.

There are always some exceptions. I know several traders in the UK who earn either a full-time or a part-time income from trading the currency markets. However as forex firms can themselves testify, the majority of traders end up losing money in the end.

It is for this very reason that more and more people are giving control of their money to other more experienced traders, in the hope that they will make a better fist of it than they can. This sounds like a risky strategy but right now in 2012 it can be a viable way to generate consistent returns if you know what you are doing.

Unless you have the privilege of knowing a profitable trader yourself, you can go down this path by making use of third party signal providers. These come in a few different forms.

There are the old fashioned providers who operate on a subscription basis. In other words you pay a monthly fee, and in return they will send you signals to open and close positions (hopefully for a profit) in real time. The drawback is that you still have to actually place the trades yourself, which can be quite an inconvenience if you are in full-time employment.

The other option is to hand over complete control to another trader (or group of traders) and let them enter and exit positions on your behalf based on their own signals. Many people are choosing this option right now because there are now some very good websites that have made all this possible.

They work by bringing together signal providers and signal subscribers, and both groups of people (along with the host website) have the potential to make some excellent returns.

It all depends on the ability of the signal providers of course, but if you manage to choose the right ones after doing lots of research, there is no reason why you cannot make long term profits from third party forex traders.

It is certainly a lot easier to do your research based on past results and pick out the genuinely profitable traders who generate solid returns without taking adverse risks, than it is to try and make money using your own strategies. Many people try doing this but ultimately fail, which is why third party signal providers are only going to become more and more popular in the coming years.

James Woolley is the owner of theforexarticles.com. Here you will find Marketclub reviews, as well as a full review of the Zulutrade signals website at theforexarticles.com/zulutrade-review/. Providing quality reviews, articles and writings on forex online.

Forex Trade: Simple Tips for Understanding Currency Rates

Whenever you are considering investing in the Forex market, it is extremely important that you know everything possible regarding currency rates, especially how to calculate these rates and how to compare the different currencies available for trading. If you are planning on investing in another country's currency or traveling there, you first have to learn how to compare currency rates in order to understand how they affect your gains or losses. Managing the risk factors is critical for those who make a living trading foreign exchange.

Forex traders can calculate currency rates automatically or manually. Automatic calculation involves five steps. Start by finding a currency rate calculation website. Next, there should be a drop down menu that displays the different currencies you can invest in. Find your currency on that menu. The next step is to find the currency you are considering converting your currency into. Enter the amount that you want to convert. Finally, click on calculate and view the results.

If you want to calculate currency rates manually, then you should do some research on the Internet and look for websites that provide a currency converter table. Find the US Dollar (USD). Locate the other currency you are interested in. For instance, if you are interested in the pound sterling look for GBP. Divide $1 by the current rate of exchange. If it is.8984 for the GBP, this means that $1 US will be worth 1.1130 GBP.

You can well understand the importance of comparing the different currency rates now that you are aware of what is involved in calculating those rates. Remember that there are three critical elements involved in rate comparisons on the Forex market including:

Exchange rate - currencies are just like commodities and their rates are controlled by the laws of supply and demand.

Price - this can be calculated either automatically or manually (see the two descriptions explained above).

Value - this involves more than just knowing what the different currency rates are and knowing what they are actually worth.

If you are new to Forex, you should decide whether you want to trade your own money or hire a broker. In case you decide to trade currencies by yourself, keep it simple. The most successful traders don't analyze all day or research historical trends; they simply take action. The more you practice, the more skilled you will become. A wise trader knows that learning about Forex trading never ceases.

Increasingly more people are searching for easy Forex tips and educational resources. Forex trade has proven to be a great way to make money. With proper research and self discipline, you can easily learn how to exchange currencies and become a successful trader. Providing quality reviews, articles and writings on forex online.

Forex Market and Technical Analysis

Technical analysis, as the name suggest, is the use of technical data to interpret a present or past market scenario. It is one of the two main forms of market analysis; the other one is the fundamental analysis which uses fundamental data like company history and management or growth or GDP. Sometimes referred as statistical analysis, technical analysis includes tools known as technical indicators or technicals to validating existing market conditions and/or to predict future market conditions.

From the beginning of trading and innovation of patterns and indicators there is a very active dispute on the effectiveness of technical analysis for traders. Traders and experts concentrating on fundamental analysis question technical data and those on the opposite side support the same. But most traders agree on some advantages of technical analysis like.

They make analysis of market movements interesting. Knowledge of past market scenario and price changes help traders to profit. Knowledge of patterns and trading signals help traders to better position their trades. They tend to work better if you are day-trading or short-term trading. They help traders to minimize risk, especially when there is much negative sentiments.

Today, forex traders and brokers are the most prominent promoters of these technical analysis systems. And in a general observation one can say that these systems works better with forex market especially over equity, futures and commodity markets. There are different reasons for this including,

The continuity of global forex market: The currency market is a continues market open 24 hours on weekdays. This reduces the over-night position holding risk and trading gaps. Inter-dependence of currencies: The globalization has tremendously increased international trades and currency exchanges. One can always find some patterns in currency price changes even when the nations are far apart from each other. Predictability of some currencies at certain levels: the central banks of different nations tend to actively engage the market to keep the currency exchange rates at an optimum level. So one may predict the reversal to some optimum range, when it is broken. The high popularity of trading systems and trading: forex is now world's leading financial market and modifications/innovations of trading systems and indicators is a common phenomenon here. So the systems are tested, corrected and modified to better results.

Now traders can find a vast number of different forex trading technical indicators to facilitate and automate the trading procedure. Most of these systems are web-based, meaning they are accessible from any desktop, laptop or handheld computer having internet access. Today's systems come with sophisticated and advanced technical indicators to identify/predict/analyze/validate trading signals, formations, patterns and market conditions.

In all forms of trading, it is always a good practice to use more than one technical indicator to get better and accurate results. And it is also good to use technical analysis together with fundamental analysis.

This article is written for Orient Financial Brokers, the leading online forex trading broker of middle-east serving traders of UAE, Oman, Qatar, Syria and Saudi Arabia. The award winning forex trading platform makes trading easy and hassle-free, and also supports a range of trading strategies. Providing quality reviews, articles and writings on forex online.

Day Trading Strategies for the Beginners

If you are a beginner for day trading, we will discuss here the Forex day trading strategies for you. When people heard of "day trading," they think it is the act of selling or buying a stock in a given day. A day trader may seek to create profits by having a large amount of leverage in a capital in order to have an advantage in price movements that are small in indexes or highly liquid stocks. We will look here the common strategies of daytime trading that may be used by a retail trader or beginner. Your early strategy is that you have to know that certain stocks are very ideal trading candidates. A typical type of day trader may look up for two things found in a stock that are the volatility and liquidity.

Volatility is just a measure of the daily price range that is already expected- the range operated by a day trader. More volatility will also mean greater loss or profit. On the other hand, liquidity allows a trader to join or exit a stock using a good price like low slippage or tight spreads. When you already know the kinds of stocks you want, you have to learn in identifying possible entry points. You can use the intraday candlestick chart tool that uses candles to provide raw price action analysis. There is also a level two quotes that looks for orders that are happening. Real-time news service tool can tell you whenever any news will be out as news can move stocks.

Another strategy of trading during daytime is finding or identifying a target. This strategy depends largely on the trading style you are using. You can also use scalping strategy that involves immediate selling whenever a trade will become profitable. There is also a fading type of strategy which is risky that involves stocks shorting right after a rapid moves upward. Another is daily pivot strategy involving stock's daily volatility profiting attempting to sell during the high of the given day and buying during the low of a day.

A strategy that makes trading on strong trending moves or news releases is called momentum strategy. You can observe that even the entries of the strategies of day type of trading rely on the tools that are used in traditional or normal trading, their exits is where you can find the differences. All in all, remember that this type of trading can be a difficult skill to be mastered.

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Day Trading Forex Tips

A written trading plan or agenda to begin forex trading is the best thing you can do.

When you spot a possible trade set-up, calculate the risk/reward, look at your support and resistances levels, check your indicators, study the chart, decide if you would enter into a long or short-term trade. If all signals align and you feel comfortable placing the trade - then write down the entry price and stop-loss and place your order.

Some may think why should I write down my entries and stops? Well, studies have shown that people who write down their goals accomplish more in life than those who mentally set their goals. The same happens in trading. From personal experience - when a trade was not going well, I would mentally move the stop loss. Whereas when I wrote my stop loss on paper and on my order, it was executed. This helps build and maintain trading discipline. FYI - I use a yellow legal pad to write my trading entries. Studies have shown that the color yellow promotes better thinking. Just a thought.

Watch your trade closely, if need be tighten the stop or take profits. If the market is going your way and your trade makes new highs, keep your position. You may choose to add to your winning trade.

Day trading is great! You can trade forex from anywhere. To trade forex live, you need to maintain a positive mind and attitude. Let's go over some things you may have not considered which can help you stick to your trading plan.

Concentration - make sure your trading space or office is private and quiet.Office - preferably with a window to allow for natural light which is easier on the eyes.Desk - should be neat clear of clutter. You just need your trading pad.Do not answer the phone - that goes for email, cell phone, chat, etc.Do not leave trades without your stops.

The key to accumulating profits is to protect your trading capital at all times. Make sure your stops are always in. When trading do not over leverage, use small positions. Never trade with money you cannot afford to lose. At the end of your trading day, go over your charts and plan for the next day.

Some other things to consider is joining a forex trading room, chatting with other traders, and/or follow an experienced forex coach who can provide you with some strategies.

For more information on forex day trading please visit our new blog forex.fxlivedaytrading.com. Providing quality reviews, articles and writings on forex online.

Teach Me Forex, The Carry Trade

Forex is the foreign exchange market and measures the relationship between currencies. A currency can be viewed as economic indicator of a countries economic strength. The forex market reflects the relationship between countries.

Traders all over the world look at these relationships and place trades that hope to capture the price movements between currencies. These traders are either long or are shorting the market. This ability to trade both directions without penalty is attractive for many traders.

Currencies are traded as pairs and each part of the pair represents a country. The USD/CAD currency pair shows the relationship between the US economy and the Canadian economy.

All commodities are bought and sold in US dollars. Because of this relationship the US dollar is the worlds reserve currency. Non reserve currencies will usually move in the opposite direction to the dollar. This inverse relationship can be exploited by currency traders.

Say the dollar devalues through excess money printing. Wealth is transferred from cash to assets that will hold their value. This protects the owners wealth. As the dollar declines the prices of commodities rise in relation to the number of dollars now needed to buy them. This allows you to trade by shorting the US dollar and by keeping your money safe by buying commodities.

Another way forex traders make money is on the difference between interest rates. This is called the "Carry Trade" and involves borrowing money from low interest rate countries and investing this borrowed money in a country with a higher bond yield. The difference between the bond yields are the profits on the trade.

As a private trader you do not have access to credit this cheap. You have to be able to borrow at the Libor, the London Interbank Offered Rate which is currently at 1.07%. This is only accessible by large finance companies. Without this access to cheap money it is should be impossible for the private trader to take advantage of this trade..

The good news is a private trader has a few different ways to capture the difference between bond yields. First you can use an exchange traded fund (ETF). The ETF is a fund that has been divided into shares and these shares are traded on the on the open market.

If you buy an ETF you will be paid a dividend payment for holding the ETF. Which comes from the difference between the bond yields. A trader could also expect capital growth on the ETF as the currencies value changes in relation to each other.

As money moves from the country with the lower bond yield to the higher bond yield country. This starts to increase the value of the currency in the higher bond rate country. This causes a trend in the currency pair.

Another way to take advantage of the difference between bond yields is to use a forex broker. You look at the bond yield charts to see who is paying the highest and lowest interest rates. Choose a currency pair that mirrors the high/low interest rate.

You would buy the currency pair if the first currency in the pair has a higher bond rate, You would sell if the first currency in the pair is the lower interest rate. You would use the 10 year bond yield to work out bond yields.

Example

AUD/JPY
2.72%/0.875% (10 year bond yields)

In the above example you would buy the AUD/JPY because the AUD has the strongest bond yield. If the % rates were the other way around you would sell the trade instead.

By using a forex broker you can earn the difference between the yields. Every time you hold a trade past 12 midnight you are either paid or you have a payment deducted from your trading account. Whether you receive money or not depends on the yields for the currency pair you are trading.

With this carry trade set up you are aiming to be paid the interest every day and also capture capital growth by trading with the trend. Which is trading with the flow of money.

I hope you found this useful and let the forex profits flow.

Learn how to be one of the 10% who make money trading forex with our forex tutorial. Providing quality reviews, articles and writings on forex online.

The Dangers of Forex Trading

It is a true fact that Forex trading can be extremely dangerous, if you don't go about it professionally. If you are too amateurish with your trading and place orders randomly without much care, you won't be putting yourself in a very safe position. The risks can however be controlled though, so it really doesn't have to be dangerous. Of course there will always be a possibility of losing out still, but everyone would be rich if that wasn't the case.

The problem is, that many beginners enter the market for currencies without any knowledge at all. They then proceed to place their first orders without even opening and trying out a demo account. They then get surprised and angry when they take some losses and lose their money, before complaining and deciding that investing is just not for them. Some will even tell other people that Forex trading is just a scam and every Forex broker is just out there for your money.

It is possible to take losses and some Forex brokers do scam their clients, but you will only take losses if you don't make any effort to succeed and go to a poor broker. If you are looking to minimize the dangers of Forex trading, all you have to do is study and put some time in to practice your knowledge; whether you to decide to practice with a demo or a live trading account is totally up to you, but demo accounts are highly recommended since you don't have to risk any money of your own, which is ideal if you are just starting out and aren't too sure of yourself as a Forex trader.

There are some other Forex-related dangers too for beginners who are just starting out, which don't actually involve the markets themselves. There are many scammers and frauds out there today, mostly on the internet, who try and target beginner Forex traders in order to try and sell them poor products and services for lots of money. If you are interested in Forex trading, you should never buy into anything that you aren't completely sure about. There are some genuinely good Forex-related products and services out there in all fairness, but as a beginner you just don't need any of them. The best thing you can do as a Forex trader who is just starting out, is get your head down, study and practice. It might sound boring, but nothing is free in this world and hard work pays off; Forex trading can be very rewarding, so it will be worth your time if you choose to persevere with it.

In conclusion, there are some obvious dangers in Forex trading, but as long as you take a professional approach to Forex trading, you should have nothing to worry about. Forex trading is arguably less dangerous than other investment opportunities like stock trading. If you can stay professional, keep your wits about you and work hard, you will stand a great chance of succeeding and making a lot of money in the Forex market. Don't spend lots of time worrying about losses and picturing worst case scenarios; use your time wisely and stay productive, because you will stand much more of a chance of succeeding this way.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone. Providing quality reviews, articles and writings on forex online.

Learning TradeStation And How To Build A Platform

TradeStation has established itself as a revolutionizing factor in the brokerage sector. This online brokerage service has enabled people to conduct their brokerage activities from the comfort of their homes. As such, it has proved convenient for traders since they can undertake their activities at their appropriate time. It boasts of a platform that comes embedded with several features. This includes the direct-access electronic execution order.

Through this online brokerage platform, people can design, optimize, monitor, automate or test their custom equities. They can also work on their forex trading methods, options or futures. It is a trading platform that allows online traders to keep an eye on various markets at the same time. Its live trading feature is simulated to enable traders to see how their strategies would pan out.

For beginners, this online brokerage platform may be challenging to master. It would take some time to come to grips with the twists and turns involved. The first step is to formulate a time frame, budget and set of goals. Beginners should ask themselves some fundamental questions. For example, they must be ready to allot some of their time to learning this technology. The learning process could cost a couple hundred dollars within a maximum duration of six months.

As part of the learning process, it is important to visit the firm's website. Here, learners can get tidbits on how to use the service. The website contains various learning aids such as, free courses and tutorial videos. The company regularly updates the learning materials and lesson contents. This ensures that learners are always at par with the latest features of the online brokerage service.

For people who may need further tutoring, a guidebook exists for this purpose. It is free and contains all the written instructions on how to use the platform. Alternatively, attending a seminar could prove helpful. Those who do not mind spending would have to part with about $100 as attendance fees. This is besides extra expenses like accommodation and airfare. These expenses could however be eventually worthy since these seminars equip people with hands-on experience. Once again, the online brokerage's website lists all the seminars that are set to occur.

The success of these lessons will depend on the astute planning of prospective online brokers. It is their duty to stick to their set schedules. This involves booking their flights and hotels at the earliest instance. Regardless of their tight routines, they should exhibit sheer dedication to their learning programmes. This requires that they must set some hours aside to indulge in some online lessons.

Prospective online brokers should also remember to practice regularly. Practice makes perfect; practicing how to use it would give them a comprehensive understanding of the market. It also prepares them for the pitfalls of online brokering and how to maneuver them. After coming to grips with this service, it is time to get to business.

One of the must-dos is the construction of a trading platform. It is through this platform that online traders can access the real-time data and integrate their trade orders. Building such a platform is a simple process that begins by visiting the platform's website. Here, they can build their platforms while setting up their desired charts. Thereafter, they have the option of selecting their own brokers. The most appropriate TradeStation brokers are those who use electronic platforms to allow direct access to the trade floor.

As an eager blogger as well as TradeStation trading enthusiast, Tim Spears possesses an incomparable passion for the actual complexities inside of dynamic financial industries. In order to find out exactly how to identify the most beneficial TradeStation indicator options. Providing quality reviews, articles and writings on forex online.

Teach Me Forex, Peer To Peer Trading. What Is ZuluTrade?

ZuluTrade is an online system to connect people who trade forex with others who want to learn to make money in forex. It works by using a signal provider and signal follower system. This means forex traders can sign up to the service and offer their skills to others. Signal followers are free to choose any signals.

It is free to use any system on ZuluTrade and the provider of this system earns money from broker commissions. For every trade the provider makes a broker will pay them a commission for the signal followers business. In this way the good trader is able to attract a good following and make substantial money. To follow a signal follower you need a forex broker and It is easy to join a broker from ZuluTrade itself.

How it works?

ZuluTrade ranks all of the signal providers from 1 to over a 1000+. The lower the number the better the system provider has performed. If the provider reach the top rankings they can earn a very decent living.

As a signal follower you need to open your ZuluTrade account. If you are new to forex trading chose a demo account to start with. You will then be able to select who you want to follow. Have a look at the system providers pages and see who you like.

At the beginning just chose one signal provider. When you get more familiar with the system you can add more. Once you have selected your provider you are faced with a choice of how you wish to trade. You have 2 choices automatic and custom.

Automatic means you set your risk and the ZuluTrade terminal sets your lot sizes for you. It is better to select a low risk settings. It is tempting to set the risk high as you can see the potential to make a killing. However with high risk setting you are more likely to lose your money rather than make it.

Custom setting means you can manually select the lot sizes, number of trades taken, stop losses and take profits. This requires more skills than the automatic system but if you can learn how to use it, it provides great control over ZuluTrade.

For people who are new to forex trading you should select automatic. You can then start to learn how to use the functionality of ZuluTrade. This means you can start to understand how trades happen and how this can effect you emotionally.

For those who are more adventurous and/or experienced use the custom setting. One of the best things about the custom setting is the backtest facility. This allows you to add in the lot size, take profits etc. Looking at these results show you how your account would have performed if you had used the signal provider with those settings.

By using the back testing feature you can learn about lot sizing and stop losses. This will help you chose the correct settings for your accounts.

ZuluTrade offers a hands free way of trading and ZuluTrade offers a gateway for many people who wish to make money in forex.

ForexTradingTutorial.biz offer a training course to show how to use peer to peer trading successfully. Providing quality reviews, articles and writings on forex online.

Forex Trading Tips, Techniques and Strategies

Learning how to navigate the choppy waters of the forex market means having access to plenty of tricks and tips to improve your trades. These tips and tricks will come from a wide variety of sources, some of which you trust and others you're willing to risk if it'll improve your daily forex trades.

Since the foreign exchange market is growing larger by the day, the plethora of available information can be daunting for new traders. The key is to focus only on forex trading tips that are important to you now. Don't worry about information that you don't understand yet, because it won't help your trades today.

Look for tips regarding forex basics until you become a more skilled trader.

Strategy Tips

Don't let yourself get bogged down with complicated currency trading strategies that have no meaning to you as this will only confuse you. Focus on trading strategies that are important for beginner forex traders. There are plenty of complicated trading systems out there intended for those well versed in the foreign exchange market, but implementing trade strategies that are beyond your current skill level can spell disaster.

Your best bet is to find forex trading strategy courses and videos to help you understand the basics of trading. Once you have these tips safely stored in your brain, you can begin to focus on advanced trading strategies.

Economic Indicators

Any tips to forex trading that help you identify significant economic indicators is worth exploring as these tips have the best chance of helping you make successful trades. Many new forex traders have no idea what factors are important to a trade, but tips that encourage you to learn more about the economies of your currency pairs are worth following.

Whether you choose to get regular alerts or you simply want to research the information for yourself, any trading tips that help you identify important economic data can improve your trades.

Practice First

When it comes to implementing forex trading tips the most important piece of advice for you to follow is practice first! Never implement a potentially profitable forex trading strategy into a real money account without first testing it out on a demo account.

The internet is full of free forex demo accounts that will allow you to test out any forex trading tip, strategy or technique before risking real money on a whim. This is the best way to see if a strategy tip is legitimate or another scam looking to part you from your money.

Additionally, demo forex accounts will let you know how well you understand certain trade strategies. Some trading strategies are difficult to comprehend and practicing following the trends is your best bet at trading profitably each day on the foreign exchange market.

With a little patience and plenty of research you can be making profitable forex trades in no time at all!

Andrew Daigle is the owner and author of many successful websites including ForexBoost.com, a Forex educational site to learn Forex Trading Basics and Profitable Forex trading strategies. Providing quality reviews, articles and writings on forex online.

How To Read a Forex Chart Properly

Start learning the basics right here!

To get started with trading on foreign exchange market, you'll need to understand the most basic type of tool there is in forex trading, a forex chart. A forex chart is a graph of a currency pair's performance (i.e. EUR/USD) over a certain period of time. The ability to read forex charts effectively is essential to any forex trader's success.

For every chart you see, each one will be showing the trends for a different currency pair: EUR/USD, USD/GBP, and so on. These currency pair symbols represent the different currencies compared against each other, and it is these comparisons that essentially make the forex market world go round. So, if you don't understand how to read the chart of a currency pair, you may be out of luck. Not to worry though, here's a short and sweet guide on how to fix that little problem of yours.

This is as basic as it gets. Along the right side of a graph are incremental amounts which help indicate what price whichever currency pair you're looking at, at any given time may be. In the actual chart you can see where the specific pair held at what value at any given time. And lastly, the bottom of the chart contains the timeline, which can be anything between 15 minutes, an hour, a day, you name it.

For us visual learners in the world, and if you don't know what kind of learner you are, you're most likely visual, these forex charts are very useful for forex trading. Once you have the basics of reading a forex chart down, you can start to get a feel of whether a currency pair is getting strong or weaker. Over time, you will begin to learn how to utilize the timeframe feature more effectively. For now, stick to the 15-minute or 1 hour timeframes, unless you're looking at a long-term trading method in which you count on holding on to your trades for prolonged periods of time.

Most trading software that online forex brokers provide you with will supply forex charts via the interface, in which case you won't have to research on external web pages. Serious traders have all of their tools all in one place so to be more inclined to have a ready finger when they're poised to make a quick profit. When looking for a broker, make sure they provide live charts with their software. However, in this day in age, a brokerage wouldn't live for too long without this feature, so it in all likelihood shouldn't be something you have to worry about.

Obviously, keeping track of charts that you've made investments with is a must, but you'll want to keep an eye on charts for other currency pairs, as well. If you fail to do this, you may miss out on significant forex trades that could net you quite a profit. The good news is that most new forex trading software allows you to view multiple charts in one window.

Now that you know your way in and out of a forex chart, go take your slice of the pie in the forex market. Lucrative gains are made on the forex market daily. It's your turn!

Jimmy Thakkar is an article writer, website designer, software developer and a search engine optimization expert. He also runs a Forex blog at forexhowto.net that teaches you more about forex and forex trading methods. Providing quality reviews, articles and writings on forex online.

3 Things to Help You Learn Momentum In Trading Forex To Increase Profit

Here are 3 things that will help you today in your Forex trading.

How often have you placed a trade and the market moves against your trade? How often have you placed a trade only to see your stop taken out almost immediately? Wouldn't it be nice to enter a trade and see almost no draw down or none? How is this possible? If it is, wouldn't we see our trading improve and our profit?

1. What is Momentum?
2. What is Memory?
3. How to read the Market for Momentum

1. What is Momentum? - This is not something you can get from an indicator like RSI or MACD. You cannot see momentum before it happens. You can learn to intuitively predict it however. So, what is momentum? Momentum is when the market moves. That sounds pretty basic but 80% of the time the market is not moving. Why? The market moves when people/banks/central banks/hedge funds (the people with the most money and leverage) decide to place orders in the market. In short, people who have money move the market. Our job is to figure out when and what direction.

2. What is Memory - This is a term coined by Benoit Mandelbrot (if you don't know who he is Google his name). Mandelbrot says that everything that is in price is not there all the time, there is a memory involved with information that causes people with money to dispense trades over time. A bank for example, wanting to rid themselves of Euros and /or dollars can't do it immediately. This takes time and Mandelbrot called it Memory. Momentum is Memory being dispensed.

3. How to read the Market for Momentum - This article can't go into all the ways one can read momentum in the market but here is one. Equity markets affect certain currencies. One indication of market direction then is the direction of markets. Currency pairs react differently to equity markets, and in particular the Dollar pairs.

Consider taking momentum (the reason the market will or won't move) and the direction before you enter your trade. If you do this may be very helpful into reducing your draw downs and losses in trading. One of the areas that many traders don't consider is improving their draw downs. This alone can improve a traders profitability, sometimes better than any other technique and momentum and momentum direction can do that for the trader.

To learn Forex Paul Dean, the owner of You Learn Forex has developed a trading indicator using RSI, the Relative Strength Index. The RSI Paint Indicator to locate Reversal and Divergence signals on RSI.

He has written three eBooks: RSI Fundamentals: Beginning to Advanced, RSI Trading Examples Vol. 1, and RSI PRO:The Core Principles.

He has also created The RSI PRO Forex Trading Course and is the originator of The Dow Trade. Visit the site to read more about trading Forex. Providing quality reviews, articles and writings on forex online.

What Is Forex? An Introduction for Every Forex Beginner

So What is 'Forex'?

The word 'Forex' is simply a shortening of 'Foreign Exchange'. Forex trading is when traders buy and sell different currencies from one currency to another.

So, for example, if you were to buy the European currency (the Euro, EUR) with US Dollars (symbol USD), then you would be 'buying the Euro' and at the same time 'selling the US Dollar'. You would effectively be betting that the value of the Euro compared to the Dollar would increase to have any chance of receiving a profit. Another way of thinking about this trade is that you are going 'Long' on the EUR/USD.

Many people find this concept a little tricky to understand. Why would this particular trade be selling the Dollar? Well, if the Dollar were to drop in value compared to the Euro (remember that you have bought your Euros with US Dollars), then you would be able to buy back more Dollars than you started with, using the Euros which have become more valuable in relative terms. In other words, you would have profited from the decline of the Dollar.

Base and Quote Currencies

The first currency quoted in a currency pair is called the base currency and the second currency is called the quote currency. In the above example, the base currency is the Euro and the quote currency is the US Dollar.

So you may see a quote like this:

EUR/USD = 1.2288

This means that 1 Euro (the base currency) is presently worth 1.2288 US Dollars (the quote currency).

Forex traders usually place a trade through a broker who have direct access to the fx market via an associated partner in the Interbank Market. When you close out your trade, your broker will close the position with this partner and calculate the loss or gain on the trade, which is then applied to your brokerage account. These days, high speed communications and technologies which link all players in the FX market mean that trades can be opened and closed in a matter of seconds.

Forex Trade Example

Here's an example of a currency trade. Suppose you thought that the Euro was going to weaken compared to the US dollar in the coming weeks (note that forex traders can trade on timescales ranging from minutes to years). This time, going short on the EUR/USD assuming this belief turns out to be correct would be a smart move.

There are no 'shorting' restrictions in the forex market (unlike the stock market) so this trade would be very straight forward to place through your broker as long as you had the required deposit.

So the quote today might be:

EUR/USD = 1.2288

You think the Euro will decline in value against the USD, so you place a short order on this currency pair and purchase 1000 Euros. This costs you $1228.80 US Dollars.

The next week, the quote is now:

EUR/USD = 1.2008

1 Euro is now only worth $1.2008 US Dollars. Having shorted this currency pair (which is the same as going long on the USD/EUR opposite currency pair), you will have made a profit of $0.0280 x 1000 = $28.

Note, it is important to realize that your broker will take a brokerage fee from both placing the trade and closing out the trade, whether or not you make a profit.

Forex currency pairs are usually traded on futures markets such as the Chicago Mercantile Exchange (CME).

Want to learn more about how to start as a forex trader? Don't know where to start?

A strong understanding of the basic principles for success in FX trading is ESSENTIAL, or you risk losing your trading capital FAST (like some people who think they don't need Forex trading training).

Check out this FREE article series all abou the basics of foreign currency trading, developing a best forex system for you, and forex strategies. Invest in your FX learning BEFORE you start earning. Providing quality reviews, articles and writings on forex online.