Forex - The Foreign Exchange Tutorial

Saturday, April 28, 2007

FOREX 101: Make Money with Currency Trading

For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains.

Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

How FOREX Works
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

Marginal Trading
Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.

EXAMPLE:
You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)

When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

Investment Strategies: Technical Analysis and Fundamental Analysis
The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis.

This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions.

This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Make Money with Currency Trading on FOREX
FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain.
So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.

Rich McIver is a contributing writer for The Forex Blog: Currency Trading News ( http://www.forexblog.org/ ).

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

Wealth Beyond Reason!

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com

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Wednesday, April 18, 2007

12 Free Forex eBook Downloads - the Second 3

All Forex Signals Forex Presentation
To learn more about the world's largest and most profitable market ever: the FOREX Market - make sure to watch this dynamic FREE PowerPoint presentation which reveals further astonishing facts about the foreign currency market.
Read more...

June Forex Trading Patterns - Free Special Research Report
In Opportunities in Forex Calendar Trading Patterns we present a series of daily and monthly patterns appearing in the behavior of foreign exchange rates along with ideas for ways you can incorporate them in to your own trading strategies. This report's 175+ pages contain information we at Anduril Analytics have used quite profitably in our own trading, and you can too!
Read more...

Free Forex Tutorial from Realtime Forex
The Online Tutorial explains how the foreign exchange market works, types of orders, graphics, technical indicators, the spot forward market, the basis of technical analysis, the main economic indicators, candlesticks and options.
Read more...

Stay Tuned for the Next info filled Free DownLoads.

Take Care!

John V
Introduction to Forex Trading.
*Why Forex Market is Unique Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://lawofattractionsite.blogspot.com/

Labels: , ,

Sunday, April 15, 2007

Three Simple Forex Trading Strategies

No one ever said that trading success was easy. It takes time
and you need to know and understand your market, as well as
have a good bit of self control. These three simple Forex
trading strategies will help keep you on track.

If someone tells you that you can continuously make money in a
foreign exchange market they are either lying or they have no
idea about the market they talk about. Foreign exchange has
always been a volatile market and it still is today. Add
trading on margin and the volatility goes up even more. But
three simple Forex trading strategies can keep you in the
green.

For you to make successful trades you need to understand and
take into account the data and then make an informed decision
based on your understanding and what you expect from the
market. Just three simple Forex trading strategies will make
all the difference to you.

1. Never trade with money unless you can afford to loose it

Trading on Forex markets is speculative and don't let anyone
tell you differently. That means losses can occur. It's also
exiting and somewhat addictive and the more you get involved
the harder it is to clearly see what the right thing is to do.
These three simple Forex trading strategies will certainly help
keep you on track. Trading on Forex should enhance not hurt your
life.

One of the keys to the three simple Forex trading strategies is
to know your exit strategy. You should also determine what time
frame you are making your trades on. What is it you want to get
out of your money and the market? Sure you enjoy the thrill of
the hunt but you really need to have a time frame and a goal of
where you are going.

Use your three simple Forex trading strategies to do what the
pro traders do. 9 and 14 RSI are the most common trend lines
and then there are 9, 20, and 40 day moving averages. The
closer you want to get to where the pro traders do the more
precise your calculations for your estimates are going to have
to do.

These three simple Forex trading strategies are just a start to
the strategies available to try. If your life needs a little
excitement and you could use a few extra dollars do give Forex
trading a try.

Let these three simple Forex trading strategies be your guide.

About The Author: Joel Teo is the owner/webmaster of
http://www.GlobalProsperity.info/ the free financial article
directory. When you submit articles for free, your articles may
be picked up by ezine publishers who might reprint your articles
and give you links and send traffic to your website.

John V
Wealth Beyond Reason!

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com
http://YourBloggingLessons.blogspot.com

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Thursday, April 12, 2007

Begin Forex Trading

The object of Forex trading is to determine the rise and fall of the value of a particular currency and trade when a profit can be made.

To learn to trade Forex, investors should select a well-developed and comprehensive program that, at minimum, explains how to:

*Understand the logic behind Forex trading

*Recognize and capitalize on market trends

*Minimize risk and protect open positions

*Build a consistent and valuable portfolio

*React to major economic events impacting global currencies

Review and know the basics.
What does margin mean?
What about types of orders?
Or bid/ask?
Rollover?

The more you know the better off you are.

Another important concept to know about is the two important approaches to analysis. These are technical and fundamental analysis. To increase the odds of success you should understand both of these methods and how to properly apply them.

You will want to belong to at least one forum for Forex traders where members chat about anything related to the Forex market and trading. However be aware that just because someone posts in a forum does not mean he is an expert.

If you are going to choose a Forex training course or program it is important to do your research. Not all of these programs are equal. Nor will each best suit your individual needs and style.

Often these programs do not go beyond the basics. While basic concepts and a solid foundation are vital, these are not going to be where you will see your results.

Trading the Forex market is not an easy task. A lot of hard work is required. If you do your work and learn a foundation of information to trade on you may gain true financial rewards.
A number of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money. While you wont make any money in the trial accounts if you do well, it is just pretend money essentially but with the real market conditions.

Milos Pesic is an expert in the field of Forex Trading and runs a highly popular and comprehensive Forex Trading web site. For more articles and resources on Forex related topics, online forex trading, trading tips, forex software and much more visit his site at:
=>http://forex.need-to-know.net/

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

Wealth Beyond Reason!

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com

Labels: , , ,

Monday, April 9, 2007

A Forex Primer — Forex 101

The Forex—or Foreign Exchange—market is the largest, most fluid investment vehicle the world has ever known. Nearly two trillion dollars are exchanged each day across a vast network of computers found in central banks, investment banks, hedge funds, and brokerage firms around the world. This is the most fluid market in the world because it operates 24 hours per day Sunday through Friday afternoon when it shuts down completely.

Around clock trading means that you rarely have problems with
gaps (difference between what commodity closes at and what it
opens at the following day—in stocks, the gap can sometimes be
devastating), this never-ending array of profit-making
opportunities can sometimes lead to over trading—a very costly
mistake because it often defies the logic of most Forex
investment strategies and often leads to missed opportunities
to maximize profit.

Traders in the Forex operate in units known as "lots". A lot is
the equivalent of $100,000 (unless you opt for the "mini" lot)
and you are essentially trying to predict how the exchange rate
between two currencies will fluctuate in the future. While there
are literally dozens of potential pairs, the six main players in
the Forex are:

· U.S. Dollar
· Euro
· Swiss Franc
· Japanese Yen
· Canada Dollar
· British Pound

International corporations and nations must exchange currency
to help finance payroll, secure resources, pay vendors, support
infrastructure, etc. This constant exchange of money is done
based on a rate that fluctuates due to a variety of factors,
including:

· Psychology—fear, greed, and other emotions play a large role
in the markets and can sway rates dramatically; however, human
emotions have always influenced the markets making them
predictable based upon enough data and proper analysis.

· Current Events—with a 24-hour news cycle, events from around
the globe can quickly influence exchange rates and cause
substantial price fluctuations. If investors allow fear
(emotion) to affect their decision-making, then a "sell-off"
panic can set in and artificially deflate exchange rates.
However, the "sell-off" and panic may have been predicted if
caused by historically relevant factors that triggered a
similar trend in the past. Doing your homework is a good way to
judge if current events are truly relevant to the true exchange
rate before deciding to sell.

· Government Reports—Many analysts gauge the economy and the
way exchange rates are trending by a number of reports released
by the government on a periodic basis by a variety of agencies.
GDP, the prime rate, unemployment figures, consumer confidence,
and many other reports have been known to play temporary roles
in the exchange rates between nations.

Many investors in Forex use margin to secure lots and you can
typically secure 1-$100,000 lot for as little as $1,000. It is
not very likely in this day and age of advanced technology and
rapid connections for you to lose more than your investment—the
account will typically be shut down automatically when it
becomes negative but be sure to check with your broker. Small
fluctuations in the market can make a big difference for those
that are highly leveraged so it is best to ask very carefully
about the potential risks when thinking about this option.

While there is no central exchange for Forex traders to
congregate, the market remains a great place to seek
opportunity and profit. However, be sure to research any
investment carefully—especially for hidden costs. Brokers are
not paid a traditional commission—they are actually paid the
difference between the bid and ask price on orders so make
certain that all decisions are made only after careful
research.

About The Author: Article by Kent Douglas, author of "The
Simple Forex Solution: The Easiest Currency Trading System
Anywhere." To learn how you too can succeed in Forex and
Currency Trading, please visit
http://www.SimpleForexSolution.com

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com

Labels: , , ,

Sunday, April 8, 2007

12 Free Forex eBook Downloads - the Second 3

More Free Dowloads
All Forex Signals Forex Presentation
To learn more about the world's largest and most profitable market ever: the FOREX Market - make sure to watch this dynamic FREE PowerPoint presentation which reveals further astonishing facts about the foreign currency market.
Read more...

June Forex Trading Patterns - Free Special Research Report
In Opportunities in Forex Calendar Trading Patterns we present a series of daily and monthly patterns appearing in the behavior of foreign exchange rates along with ideas for ways you can incorporate them in to your own trading strategies. This report's 175+ pages contain information we at Anduril Analytics have used quite profitably in our own trading, and you can too!
Read more...

Free Forex Tutorial from Realtime Forex
The Online Tutorial explains how the foreign exchange market works, types of orders, graphics, technical indicators, the spot forward market, the basis of technical analysis, the main economic indicators, candlesticks and options.
Read more...

Stay Tuned for the Next info filled Free DownLoads.

Take Care!

John V
Introduction to Forex Trading.
*Why Forex Market is Unique Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://lawofattractionsite.blogspot.com/

Labels: , , ,

Saturday, April 7, 2007

Why You Can Become Wealthy From Trading Forex

Forex Trading has long been touted as a method to financial freedom. Is Forex trading as difficult to become involved in as some might have you believe? Find out how and why you can become wealthy from trading Forex.

For those of you not familiar with Forex Trading the goal is to
profit by moving foreign currencies around. It's a method of
investing in international market currencies and it's all about
why you can become wealthy from trading Forex.

As more and more people become familiar with how and why you
can become wealthy from trading Forex, the popularity of it
grows and more and more people jump on the bandwagon. It's a
very lucrative and exciting business that can bring wealth to
those who get involved. And you can take part from the office,
home, and from any country in the world.

There are no time constraints - buy and sell 24 hours a day.
It's all done electronically so there are no time constraints
and it's just another reason why you can become wealthy from
trading Forex.

Forex Trading is both difficult and easy to get involved with.
It takes a bit to get the hang of it, to understand that it
really isn't a game of chance and that there are some proven
strategies and that's why you can become wealthy from trading
Forex.

What Forex requires is discipline, commitment, a choice of a
trading system. As a trader you have to be able to cut your
losses when they are small and when things are doing well you
reap the profits. These are very important pointers when it
comes to being a Forex trader and it is the secret to success
and why you can become wealthy from trading Forex.

If you get in and out of trades in a short period you reduce
your risks which is why many have turned it into a day trading
event. There are time honored traditional strategies like
swing trading and position trading both of which reduce your
risk and that's why you can become wealthy from trading Forex.

Cutting edge technologies with the internet allow you to view
real time information and currency prices and it is all for
free. Your dream of independence is just a few clicks away.
You can make a full time income all from the comfort of your
home. That's why you can become wealthy from trading Forex.

About The Author: Joel Teo invites you to submit your best
articles to http://www.GlobalProsperity.info/ the best free
article directory. When you submit articles for free, your
articles may be picked up by ezine publishers who might reprint
your articles and give you links and send traffic to your
website.

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com

Labels: , ,

Friday, April 6, 2007

Forex—how Can I Put The Odds In My Favor?

How does an investor set themselves up for success when thinking about a market as large and volatile as the Forex?
Also known as the Foreign Exchange market, the Forex allows
investors to speculate on the movement of currency exchange
rates between different countries. It is impossible to
accurately predict the movements of the market all the time but
many of the top investors maintain that there are ways to
increase your odds of anticipating market fluctuations and
capitalizing from them. Here are just a few ways to enhance
your chances for success with Forex technical trading:

1. Only trade at end of day
2. Avoid over-trading
3. Do not read FX reports
4. Backtest, backtest, backtest!

All investors are tempted to believe that they must constantly
be "in the know" or risk getting caught out of position. Thus,
these dedicated investors may sit in front of a computer screen
all day and monitor their investments for fluctuations. For
those living in North America, the end of the business day is 5
p.m. EST or 2 p.m. on the West coast and this really is the best
time to consider trading—and note the word consider!

At the end of the business day, there are two factors in your
favor: First, traffic tends to be down so there are fewer
chances for price fluctuations. Second, if you wait until the
end of the business day, then you can look at information
flowing in from the East to help guide your decisions.

Over-trading is basically like going back and back to a casino
thinking your odds are actually improving—because they are not!
Over-trading increases your chances of jumping into a position
too late and getting burned or out of position too early and
missing out on profits. Put stops in place that can safeguard
you from losing more than you can afford—and then let them
alone and relax!

Reading what someone else says about the outlook on the market
is going to do one thing: cause you to question your strategy.
None of us are going to get it right every time and no one can
predict the future so reading those reports can only harm, not
help, once you have purchased a position. If you are going to
read those reports, do so before buying in—after that, just
leave them be.

Investors buy and sell positions based upon their theory of the
market and where a particular currency pair is headed. While
you should not change your stops while already having a
position, you can certainly continue to test your theory by
backtesting. People capitalize in the Forex market by
identifying trends and buying a position on that trend and
riding it for as long as possible. Continuous backtesting
helps investors hone their theory and better identify trends
quickly and take advantage of them for profit.

The Forex market may be the largest and most volatile—but it
also holds the greatest potential for profit. The few tips
listed above will help ensure your success in Forex trading and
they will greatly enhance your odds of success. Be sure to
review them carefully!

About The Author:
Article by Kent Douglas, author of "The Simple Forex Solution: The Easiest Currency Trading System Anywhere." To learn how you too can succeed in Forex and Currency Trading, please visit
http://www.SimpleForexSolution.com

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com

Labels: , , ,

12 Free Forex eBook Downloads - the First 3

Free Downloads
Intermarket Analysis of Forex Markets eBook Free Download
Most traders stress the role of fundamental information and historical single-market price data in analyzing markets for the purpose of price and trend forecasting. Traders do need to look back at past price action to put current price action in perspective, but they also need to look forward to anticipate what will happen to prices if their analysis is to pay off in the real trading world.
Read more...

The Way to Trade Forex Free Download
It is a sad fact that 90% of traders fail, and many very quickly give up. Why? When I went through a phase of losing trades I treated it as a temporary setback and went back to the drawing board. I analysed the reasons of my failure and I sought the guidance of Top Traders, Mentors and Coaches to put me back on the path of success and profitability.
Read more...

Technical Analysis eBook Free Download
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. A trader who uses technical analysis (sometimes called a technician or chartist) is essentially concerned with two things:
Read more...

Stay Tuned for the Next info filled Free DownLoads.

Take Care!

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://lawofattractionsite.blogspot.com/

Labels: , , ,

Wednesday, April 4, 2007

Six Forex Trading Tips for Newbies

You have decided to be a trader in the forex market, and you have no idea on how to begin. Let's first start by defining what the forex market is and what it does.

The term "forex", also known as the foreign exchange is a market for the sale and purchase of all kinds of currencies. It originated in the early 1970's when floating currencies and free exchange rates were first introduced. At this time, the forex market traders were the ones who set the value of one type of currency against another.

Nowadays, the market forces determine the value of a currency against another. One unique aspect of the Forex market is that very little trading qualifications are required of anyone intending to trade therein.

Independence from external control ensures that only the market forces influence the currency prices. As the largest financial market, with trades reaching up to 1.5 trillion U.S. dollars, or USD, the money moves so fast, it’s impossible for a single investor to substantially affect the price of any major foreign currency.

In addition, unlike any stock that is rarely traded, forex traders are able to open and close any positions within seconds, because there are always a number of willing buyers and sellers.

1. The first thing you need to do is open a forex account. You will have to fill an application form which includes a margin agreement stating if the broker will be allowed to intervene with any trade when it appears too risky. Since most trades are done using the broker's money, it is only logical that he protect his interests. However, once you have established an account, you can fund it and begin trading in the forex market.

2. Adopt a trading strategy, that has proven to be successful for you. Remember that strategies will work differently for different traders, so don't try to adopt a strategy that works well for another trader. It might backfire on you. The two available approaches are either technical analysis or fundamental analysis. A combination of the two is a more preferred choice for experienced traders.

3. Understand that prices move by trends. Forex has a popular saying, “The trend is your friend.” There are certain movements that have been studied over many years in order to identify a pattern in the trend. These trends need to be understood in order to understand a good trading strategy. For small accounts that are $25,000 and under, trading with a trend may help improving your odds when compared to bi-directional trading. Most newbie’s will look to trade in any direction, when they should be trading with a trend.

4. Ensure you know which are the top five currencies pairs in the foreign exchange. These are USD/Yen, Swiss franc/USD, Euro/Yen, Euro/USD and Pound/USD.

5. For newbies, it is advisable to maintain two accounts to ensure you learn to play the trading game. Keep one real account, one that you will actually use to trade real money; and the second account should be a demo, one that you can use to test alternative moves in the trading game. You can easily use your demo account to shadow the trades in your real account so you can widen your stops to see if you are being too conservative or not.

6. Always examine the one hour, four hour and daily charts that concern your trades. Although you can trade at 15 and 30 minute time intervals, doing so requires a handful of dexterity.

About The Author
Gerald Njuguna is the owner of http://www.diamondringscare.com, a site where you can read more articles on diamonds. Visit the site to read more information on how to clean diamonds here: http://www.diamondringscare.com/clean-diamond-rings.htm

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com

Labels: , ,


 
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