Learn Forex Basics – Forex for Beginners

September 1st, 2010 by Bank Loan | No Comments | Filed in Forex
USD
by SD Dirk

Learn Forex Basics – Forex for Beginners

What Is Forex Trading?

“Forex trading” is short for “foreign exchange trading”. It refers to the buying and/or selling of a nation’s currency, using another nation’s currency. This might sound a little strange since most of the time we normally exchange money for stuff that we use.

For example, we normally exchange money for a new T-shirt, or maybe a warm meal at the local restaurant. We can wear the T-shirt, or eat the meal that we’ve bought with our money.

However, in Forex trading we are exchanging money for money instead. But why would anyone want to exchange money for money? It doesn’t seem to make sense, right?

Most People Trade Currencies For Profit

In Forex trading, we exchange money to buy another nation’s money in expectation of selling it later. For example, we can use the U.S. Dollar currency to purchase some Euros now, because later we want to be able to sell away the Euros for a profit.

Here’s an example:

Let’s say we buy 1 Euro (1 EUR) at the price of 1.5 U.S. Dollars (1.5 USD). A month later, the price of the Euro increases to 1.6 USD and we sell the 1 Euro that we purchased earlier to get back 1.6 USD.

In this transaction, we made a total of 0.1 USD in profit. Does this make sense?

Now of course, a profit of 0.1 USD doesn’t seem like much… but if you carried out these same transactions with 1,500 USD instead of just 1.5 USD, then you’d have made a profit of 100 USD. And if you started with 15,000 USD, these same transactions will have profited you with 1,000 USD!

But I Don’t Have 15,000 USD To Begin With!

This is where the Forex market really shines. You see, even if you don’t have 15,000 USD to start with, you can still make 1,000 USD in profit. How? You can do this by ‘margin trading’.

Margin trading basically allows you to trade with 15,000 USD, using only 150 USD of your OWN money. This means that you can potentially make 1,000 USD in profit by using buying and selling 150 USD ‘worth’ of the Euros.

Now of course, margin trading is a double-edged sword and you’ll have to be careful because you can lose as much as you win. But with a proper education in managing your money and risks, Forex trading can be a very lucrative past time.

To learn more, Click Here to download my free 26-page guide, “Forex Trading Traps!”


Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading tips and resources.

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How To Use Forex Robot Software To Scalp The Market

August 31st, 2010 by Bank Loan | No Comments | Filed in Forex
Forex
by chrome76

How To Use Forex Robot Software To Scalp The Market

Employing forex robot software to scalp the market can be an exceedingly worthwhile technique to trade the foreign exchange but it also carries a substantial amount risk. Some forex traders appear to make large amounts money this way although some go broke. So what is the difference and how can you stack the advantage when you’re scalping forex by utilizing a forex trading robot?

1. Decide on your broker very carefully

It is very important obtain the right broker when you utilize forex robot software. Numerous brokers do not like scalping tactics and especially object to the fast earnings that can be made with an EA.

Usually the brokers might be market makers who will carry the risk of a trade themselves until they can match it in the ECN. If the forex trading robot moves in and out of the market rapidly, they will not have an opportunity to cover their risk, and so your gain will be their loss. Obviously, if you are very profitable they will quickly figure out that they do not want your business.

Brokers who do not take the other side of your positions are more likely to be content to consent to your forex robot software’s scalping techniques. To acquire a responsive broker either question the developers of your forex trading robot or look for considerations from various other scalping traders in forex forums, or other online resources.

2. Regulate your risk

Several people new to forex trading expect that since scalping systems rely on several modest trades, they are less risky than models relying on a increased profit per trade. This is not correct at all. Scalping is just as high-risk as any other type of foreign exchange trading. Risk management is significant if you do not want to be wiped out of the game}}.

For the identical factor it is significant not to over leverage your positions. Unquestionably, do not pick out a broker by simply searching for the one that offers you the highest leverage, unless of course you understand the drawdown of your process and that you can cover it.

The challenge with higher than average leverage implies that triggering a stop loss will signify a increased loss. Sure, the gains are higher too, but when you have a string of losing trades you can burn through your funds quite fast. It is important that your trading account can handle the losses. It is much more probable to be able to do that provided you have kept your risk and your leverage low.

3. Have an understanding of your Forex Robot Software

It is also critical to know precisely what your scalper forex trading robot is doing. This means having practical expectations concerning things like the number of times it will trade in a week, how much on average it will make on a successful trade, how much it will lose on an unsuccessful trade, what percentage of trades are profitable, etc.

All of this facilitates you to fully understand exactly what you can anticipate in terms of your bottom line in the long term and what will be the optimum level of risk. When it comes to risk, incidentally, always assume that the worst case scenario is at least two times as bad as the worst patch that you have seen.

An individual cannot rely on information from the developers of forex robot software or from other users in this aspect. This is not a matter of trust, it is just that several variables will apply to each individual. So do your own back testing and use a demo account before you start to use a scalper forex trading robot live.

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Cambio Forex Euro Dollaro Usa – How the Internet Has Changed Forex Trading

August 31st, 2010 by Bank Loan | No Comments | Filed in Forex
Forex
by gruntzooki

Cambio Forex Euro Dollaro Usa – How the Internet Has Changed Forex Trading

Cambio Forex Euro Dollaro Usa

From the start of consumer Internet usage, people have looked for ways to make money online. One of the newest of these is forex trading. Forex, or foreign exchange, trading was formerly a venue only for banks, institutional investors and the very wealthy. It wasn’t until 1997 that this opened up to smaller investors and the Internet played a large part in that event.

Forex trading online has revolutionized the currency trading market by giving everyone with Internet access real time access to the forex market. You can see how the currencies are being traded anywhere in the world. You can execute trades day or night. The forex market closes only on weekends, opening up again on Friday night for the next 5 24-hour days. Before this advent, regulations prevented certain short trades, however, a globalized forex market has forced the relaxation of these rules so Americans can compete internationally.

Another significant impact of the Internet on forex trading is the widespread proliferation of forex courses, advice and training to be found there. Of course, some of them are junk. But there is a great deal of useful programs that will guide and assist you in all aspects of your forex trading venture. Some things available that you may want to look for are in-depth analyses of forex trading systems, demo software to try out your training trades, availability of historical charts and online libraries, the opportunity to ask expert advice via live chat, video training and maybe even live seminars. Many courses will run online discussion boards, affording you the opportunity to learn from fellow forex traders. Cambio Forex Euro Dollaro Usa

And finally, online forex analysis software can be a great tool for the beginner and experienced trader alike. These programs identify and analyze emerging trends, showing the user how to execute the proper trades to capitalize on these events. In this way, a new trader can learn how the market operates and gradually gain the trading experience to start formulating his own trading rules, or system. And of course, they can retrieve this analysis, apply the rules of whatever system they are using and execute trades all online without ever leaving the house.

These three things combine to make a unique opportunity for making money online. A person could be a complete beginner knowing next to nothing about forex trading. He could find a good training course with all the right tools for the beginner. With practice and access to expert advice, he’ll start to make money. He’ll expand his account as he becomes more successful and will start to execute more and/or bigger trades as his income allows. With the right kind of training and experience, it would be entirely possible to set your sites on a career change, doing forex trading for a living completely from home. Cambio Forex Euro Dollaro Usa

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www.informedtrades.com A Lesson on Bollinger Bands for active traders and investors using technical analysis in the forex, futures, and stock markets. The link that I refer to on Standard Deviation is here: en.wikipedia.org The link that I refer to with more resources on Bollinger Bands is here: www.informedtrades.com In our last lesson we learned about the Stochastic Oscillator and how traders use this in their trading. In today’s lesson we are going to learn about an indicator which helps traders gauge the volatility and how current prices compare to past prices. Bollinger Bands are comprised of three bands which are referred to as the upper band, the lower band, and the center band. The middle band is a simple moving average which is normally set at 20 periods, and the upper band and lower band represent chart points that are two standard deviations away from that moving average. Example of Bollinger Bands: Bollinger bands are designed to give traders a feel for what the volatility is in the market and how high or low prices are relative to the recent past. The basic premise of Bollinger bands is that price should normally fall within two standard deviations (represented by the upper and lower band) of the mean which is the center line moving average. If you are unfamiliar with what a standard deviation is you can read about it here en.wikipedia.org As this is the case trend reversals often occur near the upper and lower bands. As the center line is a moving average …

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Us Currency Exchange Rate Chart – The Base and Cross Currency

August 30th, 2010 by Bank Loan | No Comments | Filed in Forex
JPY
by toyohara

Us Currency Exchange Rate Chart – The Base and Cross Currency

Us Currency Exchange Rate Chart

One of the main aspects of foreign exchange trading that makes it different from other stock and commodity markets is that all currencies are traded in pairs. The Euro and the United States dollar are the two most highly traded currencies in the world, and this currency pair is always quoted as “EUR/USD” with the euro quoted first. In this currency pair the euro is called the “base currency” and the dollar is called the “cross currency.” Us Currency Exchange Rate Chart

Some of the other most popular currencies are the Japanese Yen and the British Pound, and these currency pairs are always quoted as “USD/JPY” and “GBP/USD.” These are not random pairings, but rather it has traditionally been for the ease of calculation that the stronger currency is the base currency and the weaker currency is the cross currency. The base currency always has a value of one, so when you see a price quote for the currency pair or you look at a price chart the value shown is how many units of the cross currency it takes to equal one unit of the base currency.

When we see a currency pair such as USD/JPY with a value of 115.00, this is saying that one dollar equals 115 yen. Understanding the relationship between the base currency and the cross currency and learning to read currency pair price quotes in this way is essential when you want to make money in the forex market. A good exercise that can help you to better understand this relationship with currency pairs is to pick up your daily newspaper and turn to the financial section, where there will likely be a daily updated currency table. Us Currency Exchange Rate Chart

The currency table that is published in most major newspapers will list all of the major world currencies vertically and horizontally, with a diagonal line of blank spots where each currency lines up with itself. When you look at this table you will find the exchange rate for the dollar in terms of the euro, but this will literally be quoted as USD/EUR instead of the traditional pairing used on nearly all forex trading platforms of EUR/USD. If you had an open trade on this currency pair and wanted to look at the newspaper to see if your position gained or lost value, seeing the exchange rate reversed might be very confusing to you.

So if you have a price quote of “0.7407? for the USD/EUR, what you will want to do is take 1 divided by 0.7407 so that you can reverse the currency pair and get the normal EUR/USD price quote which would be 1.3500. What this example tells you is that this exchange rate value can be read as “one euro equals .35? or “one dollar equals 0.74 euros.” From this example it is easy to understand why the currency that historically has a higher value is always quoted as the base currency, because it makes the calculations much simpler.

If this type of calculation seems complicated to you, you can simply remember that if you put the number 1 in the numerator place (top) and the exchange rate in the denominator place (bottom), it will reverse the currency pair. It is very important for a forex trader to understand these basic relationships with currencies and exchange rates, and once you get some practice and experience (even if it is only trading a demo account) it will become second nature to perform the simple calculations that affect your trading. Us Currency Exchange Rate Chart

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Forex Basics Part 1

August 30th, 2010 by Bank Loan | No Comments | Filed in Forex
GBP
by Jan Brašna

Forex Basics Part 1

This is the first in a series of articles that are intending to introduce beginning traders to all the essential aspects of foreign exchange. I will start by identifying and defining the essential aspects of foreign exchange trading, and key components that you will be exposed to as a forex trader.

Forex is an acronym for Foreign Exchange. The foreign exchange is a currency market where currencies are traded.  Traders are trading one currency against another. There are very large players in this game such as, large banks, corporations, and countries. There is also the speculative trader. Most individual traders would fit into the speculative category. Speculative trading focuses on the value of one currency with regard to another. As a speculative trader you focus on or bet on which currencies will go up in value and which ones will go down. Fundamental economic news and political situations play an important roll in the fluctuation in value of a currency for any given country.

Forex is the largest financial market in the world. Daily trading volume exceeds .5 trillion. Comparing this to other financial markets such as equities at billion daily trading volume, and the futures market at billion in daily volume you can begin to realize the flexibility and infinite trading liquidity the FOREX has to offer. The FOREX is a 24 hour market. This means flexibility for you as a trader. This market never closes. You can always find good trading opportunities at your convenience. This is a 24 hour electronic online currency exchange.

Currencies are traded in pairs. Meaning when you buy one currency you are selling the cross currency. The position that you take long or short is indicative to how you think that pair will perform. For example, if you were to buy long USD/GBP, you are betting that the USD (US Dollar) will increase in value against the GBP (Great Britain Pound). You are actually buying the USD and simultaneously selling the GBP. If you were to go short on this pair you would be betting that the USD is going to decrease in value against the GBP.  It can get confusing but fortunately the services that provide the trading platforms from which you will be placing trades will keep track of this for you. Everything is electronic and online, trading is done in real time. You can watch immediate results of all your trades.  These are highly sophisticated programs tracking every movement in the currency market in real time.

Part 2 will focus more on currency pairs, trading platforms and charting software.

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What is the best forex robot available and do you recommend?

August 30th, 2010 by Bank Loan | 4 Comments | Filed in Forex

Hi everyone, for this presentation I put together a few conservative trade plans for the Euro USD and Euro Yen. Euro Yen is trapped within a trap and I look for a nice break out this week. Euro USD is a little more involved but simple analysis nonetheless. I hope you find the video valuable. David Pegler

Question by marquerite lanier: What is the best forex robot available and do you recommend?
Im very interested in getting a Forex robot to trade for me. I have heard great things about forex robots, But I am not sure which forex robot works the best. Im a new to forex completely and Im just looking for an automated way to make money from home. Would you even recommend trading with a forex robot at this current economic time? How much many can make with a forex robot and what is the best forex robot from your personal experience. Please help. Thanks

Best answer:

Answer by joedlh
First of all, this is a books and authors forum. Foreign Exchange trading is not an appropriate topic.

Secondly and to help you out here, read this entry on Forex trading before you invest any money: http://en.wikipedia.org/wiki/Forex_scam

Since you were incapable of posting your question in a proper forum, might I suggest that your attempts at foreign exchange trading are likely to put you on the negative side of what is judged as a zero sum game.

Give your answer to this question below!

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A Guide to Desiphering Forex Quotes

August 30th, 2010 by Bank Loan | No Comments | Filed in Forex
JPY
by s.yume

A Guide to Desiphering Forex Quotes

Learning to read forex quotes can be a challenge. They present different information than the standard common stock quotes with which most folks are familiar. Should you determine, after spending plenty of time building a forex trading strategy, that you are ready to enter the forex trading market, then you need to make sure that you know how to properly read the foreign exchange trading quotes.


The first part of the quote lets the forex trader know which currency is involved. The nation listed first is referred to as the base currency. This means the trader currently holds that currency and he is using it to buy the quote currency, sometimes called the trade currency. For example, a quote that reads USD/JPY means that the forex trader currently holds United States Dollars and wants to trade them for Japanese Yen. Forex quotes always begin this way, with the two currencies involved forming what’s called the cross.


Quick fact : The Forex market is by far the largest financial market in the world, and includes trading between large banks,central banks, currency speculators,multinational corporations, governments, and other financial markets and institutions.


The second part of forex quotes that a person needs to pay attention to is the pricing portion of the quote. To continue the example from above, if the quote reads USD/JPY=117.57, then the trader knows that for every (USD) he trades, he will get 117.57 Japanese Yen (JPY) in return. While that may seem really simple, there are a few more details of these quotes that a forex trader needs to take note of before making the trade.


Did you know that the average daily trade in the global forex markets currently exceeds US$ 2-2.5 trillion !


Following the initial line of the quote, which contains the two currencies that form the cross and the exchange rate, is another line of information. This is probably more familiar to common stock traders. Bid prices and ask prices, which make up an integral part of forex quotes, function in forex much the same way. The bid price is the price at which a trader can sell the currency or in other words, that is the price that people are willing to pay for it. The buy price is what a trader will have to pay if he wants to buy the currency. There is usually a difference between the bid and the buy numbers, but it is seldom substantial.


There are over sixty currencies listed on most major forex trading platforms. As you look through the majority of the forex quotes actually traded though, you will notice that over 85% of them include some combination of the US Dollar, Japanese Yen, Euro, Canadian Dollar, Swiss Franc and the Australian Dollar. Known as the majors, these six currencies constitute the backbone of foreign exchange trading. Historically, they are the most heavily regulated, and as a result, the most stable currencies in the world. This stability makes them safer investments than some other currencies. The feeling of security by investors results in the much higher trade volumes.

Are you looking for more valuable information and hot tips on forex ? We know you are ! Visit our article directory for more details.

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Forex Stock Market Guide – A True Guide To Becoming a Trading Expert

August 29th, 2010 by Bank Loan | No Comments | Filed in News
asian market
by deen

Forex Stock Market Guide – A True Guide To Becoming a Trading Expert

Forex Stock Market Guide

When trading the foreign exchange market, there are many tools, books and videos that any advanced or prospective trader can get their hands on. Forex Stock Market Guide

Unfortunately these are not cheap. Some tools are well in the thousands and while they promise massive returns have never really been able to truly assist a beginner much less the advanced trader seasoned in using emotion to guide his or her trading habits. After month of combing the internet in online book stores, trading platforms and software websites, I have concluded that foreign exchange trading is best taught by utilizing free lessons taught both off line and online.

Now many might believe that if these services are free they might truly have little worth. However this is not the case. Most traders that have decided to impart their knowledge freely to others usually have been very successful in what they do.

A full time trader would not seek to supplement their income by taking on the burden of teaching others for profit while at the same time trying to develop a working strategy. While some of my fellow traders might disagree it is true that there is no pressure for results when you impart your knowledge on eager students free of charge on the basis of teaching them the fundamentals.

Simultaneously while there is no pressure on you the teacher, there is no pressure on the student to take notes, read quickly and absorb before the lesson is gone or their one month subscription runs out. Before I developed my own trading strategy I did fall victim too many of these played out scenarios, which usually come in the form of: Forex Stock Market Guide

Daily Trading Alerts

Currency Trading Signals

How to Trade the Newsletters

Trading Platform Software

Automatic Trading Software (the worst kind)

While trying all of these from different providers since 2003, I realized that they delivered the same result with little or no help to truly understand the fundamentals of what we know as forex trading. While most individuals get caught up over the debate of fundamentals versus technicals as styles of trading, they simply forget that one guides the other. It is fundamentals that trigger movement and hence results in technical triggers.

One major example is the correlation of the European dollar and Japanese Yuan to the Dow Jones Stock Market Index. This positive correlation is triggered by shifts in the stock market which are heavily based on fundamental principles of positive earnings means ‘buy’ and losses means sell. However when forex traders see the movement they trade the currency pair based on the movement of the stock market index in the afternoon session of the New York Stock Exchange (NYSE).

While this in principle does make some traders a lot of money, the market can quickly shift if news comes out during the Asian session which can quickly make the pair move in the opposite direction.

Effectively wiping out traders leverage before the real correlated move begins. One notable problem with traders is that they believe trading the news is the holy grail of forex trading. This is as far from the truth as one can get; the dramatic shift in the demand and supply of currency during this time causes many trading platforms to freeze and results in the complete loss of trading leverage in less than a few seconds. My advice has always been never trade the news.

However to reiterate my point that free forex lessons have been the best teacher for me I can only use my personal experience to state that while trading with other ‘experts’ I lost much more than I made, without having any concrete trading strategy. In the last three years of my trading journey I have since doubled what I lost in the first six years and built a constant revenue stream, blended with options trading, news trading, day trading and various buy and hold strategies.

The knowledge that I have learnt has lent to my involvement with mutual funds and hedge funds as part of my overall investment portfolio. Having gained the knowledge free of cost, I have given back by having my own online source for traders who are just not making the grade and what to develop that complete strategy that will give them the financial freedom that I once craved and now have achieved. You can learn more about me and my plan to pay it forward in my author biography below this article. Forex Stock Market Guide

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World Currency Exchange Market – The Different Currencies Available in the Forex Market

August 29th, 2010 by Bank Loan | No Comments | Filed in Forex
USD
by Jay valerie

World Currency Exchange Market – The Different Currencies Available in the Forex Market

World Currency Exchange Market

Forex trading is also referred to as foreign exchange trading (FX also means the same thing). Forex trading is trading of currencies (trading of currencies takes place in “pairs”, always) of two different countries in the international market. Now that this market has opened up, trading is no more restricted to big financial institutions and banks (earlier only they were allowed to deal in international currency trading), even brokers and retail investors can start their own trading, in the international currency market. Foreign exchange business is considered a very lucrative and profitable business and this is the reason why more and more people are now either entering this trade or have already entered the Forex trading market.

In case you plan to enter the foreign exchange market then it is advisable that you first spend sometime (in fact it will require a lot of time) on reading and understanding the Forex market before finally investing your hard earned money, this will save you from incurring losses because you would know the tricks of the trade. A lot of study material is available on the Internet and all you have to do is spend time on reading and understanding the nuances of this trade, provided you want to earn profit out of this business. The basics would start from knowing and understanding the code of the currencies, almost all countries have their own currencies and there is a specific code for each country’s currency. Just to name and give a few examples, USD is dollar of the United States, JPY is yen of Japan, EUR is euro of the European Union and GBP is pound of Great Britain, etc. World Currency Exchange Market

The currencies that have been mentioned above are referred to as strong currencies; most of the trading, in the international currency trade, takes place between these currencies. Forex market is the biggest financial market in the world and 3.2 trillion dollars are traded on a daily basis. It is advisable not to completely rely on your trader because they are interested only in their profits and turn over, it is therefore important for you to know the technicalities of the trade, this will allow you to earn profits more often than not. World Currency Exchange Market

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Those houses (they are side by sides) are about 1 million USD.
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