Let Your Money Work for You with Automated FOREX Trading

In our modern world of luxury and ease, some financial speculators are finding it advantageous to do FOREX trading the easy way: through automated FOREX trading systems.

Automated FOREX trading is exactly what it sounds like. A highly sophisticated and complicated computer program uses mathematical algorithms to determine when to buy and sell currency, and it makes the trades for you. You put an initial investment into the account, and then let the system do all the work for you.

It may sound risky to let a computer program choose when to buy and sell currency, but automated trading can often be safer than doing it yourself. Humans are subject to error, to misreading charts, and to overlooking data. Humans can also let their emotions get in the way of making smart decisions, like the gambler who loses everything because he just can’t tear himself away from the blackjack table.

An automated trading program has none of those flaws. With the software doing it for you, it’s as if you were always watching every market, noticing every trend, instantly analyzing all available data, and making the smartest decisions.

There is a cost for this, of course. Most brokers that offer it require a minimum investment of several thousand dollars or more, and they may charge a fee on top of that.

But the benefits of automated FOREX trading can be great. Whereas manual trading requires an investor to study the market intensely before jumping in to it, automated trading requires no training at all. Learn the very basics of how the market works so you can tell what your automated system is doing for you, and that’s it. Sit back and let it make your money work for you.

Automated trading is also useful for companies and other institutions that want to diversify their assets but don’t have the time or resources to devote to FOREX trading. If a computer program can do it for you, there’s no need to have one of your employees handle it, right?

It goes without saying that automated trading systems rely on technical analysis rather than fundamental analysis. That is, the algorithms examine past market performance and general trends and base their trading decisions on that, not on external factors such as politics and environmental concerns, which may affect a nation’s currency. Nonetheless, automated trading has proven to be highly effective and accurate for many investors, freeing up their schedules to focus on other things.

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Forex alerts are a handy way of staying on top of the market

Because currency exchange covers the entire world and all 24 time zones, forex is a 24-hour-a-day market. This is good in that it results in billions upon billions of dollars of transactions per day. But it also means that forex traders have a constant influx of information to keep track of, unlike the stock market, where once trading closes at 5 p.m., that’s it. So how do forex traders stay on top of things? Most of them use forex alerts of some kind.

Forex alerts are available from many online forex brokers and other companies. A forex alert is simply a message sent to the user informing him of the latest developments in the forex market, often recommending action of some kind. These alerts can be sent via e-mail or cell phone text message.

The idea behind them is that no one can follow all the markets all the time. Even if you limit yourself to just the “majors” -- U.S., Eurozone, Great Britain, Australia, Japan and Switzerland -- that’s still 15 currency pairs to keep an eye on. What’s more, sometimes things are steady for long periods of time, while other periods are marked by great activity.

The sites that offer forex alerts go about it in one of two ways. Some simply send out alerts every 24 hours, offering the latest info on the forex market. Others send alerts only when something crucial happens. These systems use formulas of their own to determine what constitutes “something crucial,” and they may charge a lot more for their more specific alerts. And of course it’s still up to the individual trader to act on or disregard the information send to him in the alerts.

Some brokers include forex alerts as part of their service, while others charge for them. Some are part of a wider alert program that also handles your stocks and bonds. You can tailor the type of alerts you get based on whether you’re a conservative or aggressive trader, and how actively you plan to trade.

Serious traders who use forex alerts swear by them. No system is perfect, of course, and a smart trader will always do a little browsing on his own to make sure his latest alert didn’t miss anything. But alerts are an invaluable way for busy investors to go about their daily lives without having to constantly watch the forex rates.

Forex Trading Information

The ultimate commodity is currency. When a company or a
government sells or purchases products and services in a
foreign country, they are subject to the foreign currency
trade, which is the exchanging of one currency for another.
Organizations and people can also trade currencies for merely
speculative purposes. The foreign currency exchange market is
the largest financial market in the world, also known as
"forex" or "fx" market. The forex market is larger than all the
U.S. stock markets combined. The forex market has a daily
trading volume that is larger than that of all the world's
stock markets put together.

In the past only corporations and wealthy people traded
currencies in the forex market. They used proprietary trading
systems of banks. However, opening an account required about
one million US dollars. Thanks to the internet, investors with
only a few thousand dollars can access the foreign exchange
market 24 hours a day.

Forex trading provides an alternative to stock market trading
for professional traders. There are only a few significant
currencies available to trade. However, there are literally
thousands of different stocks for the trader to choose. Here
are the major currencies available for trade: the Yen, Dollar,
Swiss Franc, Euro and the British Pound.

Forex trading gives you the ability to have flexible trading
hours because it goes on for 24 hours a day. The main forex
trading centers are in New York, London, Singapore and Tokyo;
however, banks all over the world participate in trading. Due
to the location of the major trading centers, Traders can react
to news immediately when it breaks. For example, when the Asian
trading session ends, the European session is just beginning,
followed by the US session then back to the Asian session.

A fluctuation in the exchange rate is usually caused by actual
monetary flows. Also, the expectations of changes in monetary
flows caused by changes in GDP growth, inflation, interest
rates, budget and trade deficits or surpluses, large
cross-border Mergers & Acquisition deals and other
macroeconomic conditions. In the forex market there is
generally little or no 'inside information'. Major news is
released to the public, often on scheduled dates. Many people
have access to the same news at the same time. The large banks
have a very important advantage; they can see their customers'
order flow.

Many factors affect exchange rates. Currency prices are a
result of supply and demand. The world's currency markets are a
huge melting pot. Due to the large and ever-changing mix of
current events, supply and demand factors are constantly
changing, and the price of one currency in relation to another
shifts accordingly. No other market takes in and refines as
much of what is going on in the world at any given time as the
forex market.

About The Author: Thomas D. Houser
http://www.bestforexcurrencyinfo.com/

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

Technical Indicators In Forex Trading

Forex traders often look at technical indicators such as
Bollinger Bands, Pivot Points, MACD, Moving Averages and the
such to help them determine where to enter or exit trades.
Using technical indicators is fine, however many traders
overemphasize their importance or just plain misunderstand
them.

Many forex traders think that they can simply download an
indicator and then mechanically apply it into their trading and
do so profitably. This is just a plain illusion. Successful
traders realize that there is a lot more to using indicators
than just asking them to generate buy/sell signals or pin-point
exact entry points. Technical indicators for them represent just
one part of their trading strategy.

Let's take a look at some of the reasons why you should not put
all your faith into those sometimes confusing little indicators.

Take Moving Averages (MA's) for example. They are "supposed" to
show the direction of the trend. The most common and often used
are the simple 200day MA, 100day MA, 50day MA, 35day MA and
the 21day MA but they are only valid on daily graphs. Some
forex day traders say that a good signal is when the 50day MA
is crossed by the 13day MA and that when this occurs you should
trade in the direction of the cross.

The problem with this (apart from the fact that it only works
on daily graphs) is that these types of "crosses" do not occur
often enough for traders to exploit them. This can often lead
to a situation where traders are seeing what they thought was a
cross now reverse and uncross. Even worse, it can lead to a
situation where day traders are "chasing" and trying to
anticipate a cross. If you are doing this, you are distancing
yourself from the market which you are trying to trade. Not
only are you trying to guess what the price is going to do next
but you are guessing what the indicator, based on the prices, is
going to do next.

Other problems with technical indicators involve issues with
the quotes and prices given to you by your broker. Forex
brokers are market makers and as such different brokers will
give you different quotes and prices at a specific point in
time. Naturally, a different price could lead to a situation
where different traders, trading the same market have the same
indicators giving them different responses. That's how
arbitrary technical indicators can be.

Finally, a lot of these technical indicators were developed by
people trading the stock market. With the growth of computers
and software packages that incorporate these indicators,
technical analysis has become very popular and spread to other
markets such as the forex market. What currency traders should
be aware of however, is that as these indicators were developed
in a time where real time information did not exist. As such,
the limitations of technical analysis becomes even more
exaggerated in forex trading – not only is technical analysis
an interpretation of historical events but it becomes even more
so in the forex market, a market moved by real time events.

Conclusion

Successful forex traders understand the limitations of
technical indicators and realize that technical analysis should
incorporate just one part of their trading strategy. In a recent
international Forex market event visited by the major banks and
institutions - the main players that influence the foreign
currency market – a survey was done to better understand what
analysis they use. The results might be surprising to some
tarders. The survey showed that a mere 26% use technical
analysis and indicators compared to 41% who said they use
fundamental analysis.

About The Author: Jovan Vucetic - Margin Strategies
http://www.margin-strategies.info/

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

Benefits of FOREX Trading

The FOREX market is a cash market where foreign currencies are traded via brokers. The increase or decrease in the traders’ investments depend on currency movements. Foreign currencies are bought and sold simultaneously and constantly across both local and global markets. FOREX trading conditions can be influenced by real-time events.


Most traders prefer short time FOREX trading for a number of reasons, such as the twenty-four-hour availability and access to global dealers, profit opportunities from volatile markets, risk exposure control by means of standard instruments, the possibility to trade most currencies due to the enormous liquid market, leveraged trading, zero commission trading, as well as the ability of being profitable in rising or falling markets.


The advantage with FOREX trading is that the investor can profit from foreign currency movements. This type of trading is always done in currency pairs, which results in a “FOREX rate”, or “rate” for short. A good investment can only be assessed by comparison to alternative investments. The return on investment and the return on a risk-free investment should be at least comparable to be able to speak about a profitable investment.


With global FOREX trading traders of almost any size, such as smaller companies or individual speculators are provided with the opportunity to trade the same as large players, in terms of rates and price movements. Average traders and individual speculators have been granted access to FOREX trading only recently. The main participants used to be banks, major currency dealers, and maybe high net-worth speculators. These used to be the only types of participants that could rise up to the large minimum transaction sizes and stringent financial requirements. FOREX trading advantages, such as fantastic liquidity, were only available to these traders initially, as opposed to now, when all- size traders are given the opportunity to trade.


Quality FOREX market analysis is equally important for both amateur and professional traders. Those who do not master global FOREX trading should take an online course that can get them off to a good start, because getting wiped out is just as possible as being successful with this investment tool. Nevertheless, no FOREX training course is a guarantee for profits.


FOREX trading differs from other types of trading from availability and liquidity to fees and various restrictions. First of all, global FOREX trading is possible around the clock, five days a week, as opposed to the limited trading hours that other markets impose. Secondly, there is no threat whatsoever that liquidities might dry up after market hours, since currency exchange transactions are required to continue in order to facilitate world commerce. Moreover, global FOREX trading is commission-free, unlike other markets where traders are required to pay all sorts of fees, such as clearing fees, government fees, exchange fees, and so on. Last but not least, there are no restrictions as far as account balances are concerned (they are very low), and accounts can be opened with minimum deposits.


All in all, the most outstanding FOREX trading benefits include its availability twenty-four hours a day, high degree of leverage, no restrictions on shorting, not to mention being the most liquid market in the world.

If you are looking for more information about Global FOREX Trading or FOREX Trading visit http://www.globalforextrading.org/forextrading.html

John V

JohnC.Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com
http://CreditSurvivor.blogspot.com

Forex Currency Trading - Frequently Asked Questions

What is FOREX?

FOREX stands for the FOReign EXchange market, which is an
international financial market where currencies are traded. The
foreign exchange market began in the 1970s and is now the
largest financial market in the world, with an average daily
turnover of US$1.9 trillion. That's thirty times the amount of
daily activity on all of the US stock exchanges.

Each Forex trade involves simultaneously buying one currency
and selling another. For example, if you think that the Euro
will rise relative to the dollar, you would place a Euro/Dollar
trade. The forex system would then buy the Euro and sell an
equivalent amount of the Dollar. Then, when you want to close
your position, you would place a Dollar/Euro trade. This would
buy the Dollar and sell the Euro. If the Euro had risen against
the Dollar, you would make a profit, but if it had fallen
relative to the Dollar you would make a loss.

What currencies are traded?

Most of the world's currencies are available to trade, but the
majority of market action involves a group of major currencies,
including the US Dollar, the Euro, the Yen, the Swiss Franc and
Sterling.

Where is the Forex market located?

Unlike most financial markets around the world, Forex is not
centralized on an exchange. Instead it operates on a basis
known as the interbank market or Over the Counter (OTC). As
each Forex trade involves two reciprocal trades (buy one
currency and sell another), these are conducted electronically
with any broker who is willing to accept the trade.

Who can trade in the Forex market?

Traditionally, access to currency trading was restricted to
banking organisations, including central banks, commercial
banks and investment banks. That's the reason it operates on a
system known as the interbank market.

However, the number of non bank participants in the Forex
market, which includes multinational companies, money managers,
money brokers and private speculators, is growing rapidly. And
thanks to the relatively small amount of capital required to
open a trading account (often $500) Forex is opening up to more
and more people all the time. If you're over 18, have internet
access the enough money to open a trading account, the world of
Forex is open to you.

When is the Forex market open for trading?

As Forex doesn't exist within a traditional exchange, it's the
only 24 hour financial market in the world. Forex trading
begins every day in Sydney and then moves around the globe as
the major international financial markets in Tokyo, London and
New York open.

In other words, there are always traders somewhere in the world
who are actively trading foreign currencies. This means you can
make trades and respond to major social, economic and political
events day or night. However, there is a short rest period from
close of trading on the American financial market on Friday
until trading begins in Australia on Monday morning. However,
due to the time differences around the globe, this period only
lasts for approximately 48 hours.

What is a trading margin?

Forex trades are made in lots of $100,000. If you had to
provide that amount of money to cover your position before you
could trade, the market would once again be restricted to banks
and other institutional investors. So brokers have established
the principle of margin trading. In effect they allow people to
trade $100,000 blocks of currency if they can provide an element
of security against potential losses.

For example, they may allow people to trade on a margin of 1%
(in comparison, traditional stock brokers often require a 50%
margin). This means that they can trade $100,000 blocks,
provided their account contains at least $100,000 x 1% = $1000.
One thousand dollars will protect the broker against any
potential losses that their client makes (currency values
rarely fluctuate by more than 1% in a single day). If a
client's account is reduced by losses (i.e. reducing the
broker's security below acceptable levels), the broker will
close all trades and require an additional deposit before
further trades can be made.

Trading margin allows people to control vast amounts of
currency wiith relatively small amounts of capital (often 50,
100 or even 200 times the amount of capital that they have
invested). This can lead to massive gains, but increases the
risk of losing most or all of your investment capital.

How much does it cost?

Thanks to the trading margin offered by most Forex brokers,
it's possible to open an account and get started trading with a
relatively small amount of capital.

Forex trades are made in lots of $100,000. However, most Forexs
brokes will provide you with a leverage ratio of up to 100:1,
which means that you have the ability to control a $100,000
trade with as little as $1000 in your account. Some brokers
will provide leverage of 200:1 or even 400:1, which allows you
to start with as little as $500 or $250 in your account.

However, please remember that although greater leverage allows
you to maximize your profit potential, it also increases the
risk factor. The higher the leverage ratio, the smaller trading
fluctuation that will be required to wipe out your trading
capital. So choose the amount of leverage that you use wisely.

For new traders, it may be safer to begin with leverage of 20:1
or 50:1. This will increase the amount that you need to open an
account, but it will reduce the risk of seeing all your trading
capital disappear due to a small shift in the value of a
currency.

About The Author: For more information on Forex Trading, visit
Michael Mancini's website at
http://www.forexcurrencytradingguide.com

John V
http://urlfreeze.com/JCV/Forex/

John C. Vincent/CEO/The Opt-In Magic System
http://www.linkbrander.com/go/37009
http://lawofattractionsite.blogspot.com/