Tag: Forex Trading

Forex Options Trading – Forex Charting to Success

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When something is easy, then the rewards that come with it are usually low which could explain why people are flocking into the Foreign Exchange Market to invest their money in due to the opportunities of huge profits it offers. But, the catch is that it is very difficult to win in the forex Market and it is common knowledge that more people who try to enter this financial market end up losing their money and only about ten percent of all traders are able to gain profit.

Preparation plays an important role in the success of any person in the world of currency trading. It would be a great idea to take up lessons and classes to learn the basics first. In the end, after a good forex trading education, you should have the knowledge and skills required to win in this market.

A good trader should have studied, learned and practiced as much skill as he or she can before actually trading. There are many different trading tools available, and one popular tool is known as forex trading charts. These charts are valuable as they help the skilled trader find, isolate and take advantage of patterns that appear on the chart. Seven different patterns can appear at any given time depending upon the situation and a skilled trader knows each one of this by heart and is able to identify each when the time comes that they appear. And if the trader is correct about his or her predictions, this could easily turn into a huge gold mine.

Timothy Stevens is a Forex Options Trader who owns http://www.NonDirectionTrading.com – He has helped hundreds of people on Trading Forex with Options.

He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit http://www.NonDirectionTrading.com/members/FreeReport.htm

Choosing Between Offline Trading And Online Trading

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Choosing between these two types of trading practices is essentially like choosing between the traditional and the modern. Offline trading has been done in India and the world even before online trading was invented. In fact, it was the only type of trading back then. However, with the advent of the internet, things changed. Seeing that the internet can be put to great business uses, online practices came into vogue, presenting an alternative to offline trading.
Soon the trading system was divided into these two categories. So much so, that nowadays almost everyone is following the middle path and engaging in some or other form of online business along with the conventional offline trading. There are of course tech savvy enthusiastic traders who carry on the entire trading online. Also, of course, there are people who still religiously believe in engaging only in the traditional form of trading, i.e. offline trading. Whether you choose to stay in any of the extremes, or follow the middle path, presented here are the basic parameters of both types of trading. This info would be useful if you are considering trading as career.
What are the different aspects of online transactions?
The different aspects of online trading are,

Some trading are only carried out online like the latest in trading scenario, the algorithmic trading

Some trading like commodity trading is primarily carried out online, but there are offline aspects as well

The online business gives the traders the freedom of carrying out the business from anywhere, even on the move, thus saving a lot of time from the busy schedule

It can also be done through mobile devices with internet connectivity

The trader has to open a demat account with his/her broker. The trading is limited to only the amount in this trading account.

The real time business in the online format is highly exciting

The cost of brokerage is generally less than offline trading

Almost everyone who is new to trading as career is trained in online business rather than the offline version
What are the different aspects of an offline trading system?

The various aspects of an offline trading practice are mentioned below.

Trader cannot view the real time quotes

Personally visit or call the brokerage firm to carry the trade

Flexible trading limits

Higher brokerage expenditure

Fund transfer via cheque

The trade is confirmed via telephone

Apprehension among traders about the security of carrying out online transactions
India based Sahajmoney has a proven track record in assisting the Indian traders for Online Trading for Trading Commodity, Intraday Trading, Forex Trading in India etc.

The Ins And Outs of Forex Trading

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The Foreign Exchange market, otherwise known as simply Forex, is an international environment where brokers from all over the world can sell and buy any type of currency in real time. The market is in a state of constant expansion as more and more brokers try to prove their skills each day. Forex trading offers immense opportunities for people that want to invest, but as in any other trading market or environment there is always a varying amount of risk involved in every transactions. This article would not have any meaning if it were not for the constant advances made in internet technologies and software applications designed especially for the Forex community.

If you want to learn Forex, then you should know that the sheer number resources available for Forex traders and anyone intending to enter this community can be quite overwhelming. Thank God for highly qualified training companies and for the most resourceful and inventive Forex trading brokers that share new discoveries with the community through a number of ways, be them new software applications, books and e-books, and so on. Those thinking that they will learn Forex and make easy money in a few days have got it all wrong. Forex trading is a legitimate international trading environment with very large financial resources changing hands each day.

Whatever Forex trading may be seen like by traders who operate financial transactions each day Forex trading can never be considered to be an opportunity to make easy money, but it can offer significant opportunities for large returns for Forex trading experts, and everyone else for that matter as long as they take the time to learn all the Forex secrets and acquire a profound understanding of every little aspect of Forex trading. Over confidence and the false so called -hot tips’ are the two main reasons why many Forex traders do not seem to be successful with their trades. In fact, in order to counteract major personal disasters, the Forex trading system limits the number of entries of its brokers in the course of one trading day. For those of you that may be interested in a little travelling in the scope of gaining some truly priceless insights to the world of FOREX and learn FOREX from some of the best professionals in the sector you do not want to miss out on participating at the Fortress Markets Forum (FMF) – 2010, which is an international conference held at the Intercontinental – City Stars in Cairo, Egypt on the 29th and 30th of January 2010.

Since the Forex trading market is considered by many, even the most versed brokers, to be quite versatile it is most recommended that all brokers that have just entered or are intending to enter this trading market do their homework diligently in order to avoid any large misfortunes. To this effect, we have been presented in recent years with numerous software applications that allow all those interested in getting a feel for the Forex currency trade to experience with real transactions. The twist is that, even though all the transactions are based on real numbers and currency evolutions, the users do not actually make real transactions and are trading with play money, thus removing all the risks of loosing funds due to a lack of experience. This is basically a much better alternative to the old pen and paper, because it not only does give you a feel for the market but also for the software you will be using.

For more resources about how to Learn Forex or even about how to Make easy money, please review this page http://www.fmf-egypt.com

Understanding the Moving Average in Forex Trading

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The moving average has been a staple of the Forex trader’s arsenal since it was first described in statistics textbooks in the early twentieth century. The visual representation of several averaged price points, the moving average provides a smooth line that makes it easy to see at a glance whether the price is trending upwards or downwards. So critical is the moving average to Forex trading that its calculation is at the heart of several indicators, including the Bollinger Bands and the MACD.

Moving averages are useful because they lag the price. That is, a moving average will always appear either above or below it. If it is above the price, this indicates that the price has been falling. If it is below, it has been rising.

Forex traders use the moving average in many ways, the most basic of which is a simple trading system. When the price moves upward through the moving average, they buy, and when the price moves downward through it, they sell. This system has drawbacks, however, in that the price will often move through the moving average only to immediately reverse. This false signal is known as a -whipsaw.- To get around this problem, Forex traders devised another use for the moving average: the filter.

To create a filter, they apply a second moving average to the chart of a much higher periodicity. For instance, if the moving average that the trader is using as a signal is 14 periods, they might apply a second moving average of 100 periods. This second indicator lags the price much more than the first, and it gives the trader an instant insight into whether or not the price is in an uptrend, downtrend, or range. If the price is in an uptrend, then, the trader will not accept any sell signals from the 14 period moving average.

Forex traders can create a more complex moving average system with a built-in filter by applying three moving averages with periods such as 14, 28 and 56, where each proceeding instance of the indicator is twice as much as the last. In this way, the price can fall through or rise above the first, then the second and finally the third moving average. At that point, the trader can be fairly confident that a change in trend is occurring and can trade in the new direction.

Another way that traders use the moving average is to plot two of them, one slower than the other. For instance, one may be set to 12 periods while the other is set to 26. The result is that a signal is generated when the slower moving average falls through the longer. This is the basis of the MACD, or Moving Average Convergence Divergence indicator, which chart technicians use to determine trend strength, momentum and direction.

The moving average, humble as it is, is often the first learned but is generally quickly discarded when when more complex indicators are encountered. This tendency may be to the trader’s detriment as many more complex indicators are simply using moving averages in their calculations and displaying the results in various ways. These more complex data presentations, while potentially useful, can also make it more difficult to analyze the market efficiently.

To learn more please visit www.clmforex.com

Disclaimer: Trading of foreign exchange contracts, contracts for difference, derivatives and other investment products which are leveraged, can carry a high level of risk. These products may not be suitable for all investors. It is possible to lose more than your initial investment. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. A Product Disclosure Statement (PDS) is available from the company website. Please read and consider the PDS before making any decision to trade Core Liquidity Markets’ products. The risks must be understood prior to trading. Core Liquidity Markets refers to Core Liquidity Markets Pty Ltd. Core Liquidity Markets is an Australian company which is registered with ASIC, ACN 164 994 049. Core Liquidity Markets is an authorized representative of Direct FX Trading Pty Ltd (AFSL) Number 305539, which is the authorizing Licensee and Principal.

Are You Aware Of The Dangers of Forex Trading

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It’s estimated that 90% of beginner Forex traders eventually end up losing more money than they make. Compared with the rate of success of traditional start up businesses this number is not that different (less than 15% of start-ups succeed). Then why is Forex trading considered risky?

Forex trading is quickly gaining ground as one of the most popular ways to earn money from home and it is without doubt a very lucrative business. However few traders are familiar with all the details and complications of currency Trading and most ignore a very important aspect: risk. Forex gives you a chance to invest your money successfully, but that is not enough! You have to be careful because Forex trading can be both an profitable home business or it can be a source of a major headache.

What are the inherent risks of Currency trading, which if known will easier be avoided by beginner traders?

– First of all, every investment bears risk. Its written in the fine print of CFTC every document, of every brochure of every financial institution managing people’s investments, including mutual fund companies, credit unions, major commercial banks, etc.

– The currency market in general is actually quite stable. Compared to the stock market the Forex market is way more stable. Also there is no insider trading and the news come out at times which are known in advance. However the volumes traded on the Forex market makes even the smallest change in the rates seem significant.

– Fluctuations in currency prices, discrepancies in interest rate differentials between two different countries, large volume transactions and limited flow of exotic currencies will have an effect on the market.

– Large profits and minimal losses are impossible to predict with 100% certainty.

– The Forex trading market has great winning potential, but it also has a potential for losses.

– Poor money management (no Stop Loss orders or “Mental Stop Loss” ) and emotional baggage are most of the time a cause of loss. Use rules, not hope or fear, when trading.

– Huge leverage is provided to traders. If not managed properly, this leads to dangerous positions that expose the account to unjustified risk .

– Lack of money management or no general trading plan are the mistakes that currency traders make sometimes.

– Choosing an unreliable or dishonest broker can lead to problems as they can widen spreads during volatile market conditions affecting the retail trader. They can even refuse to trade sometimes. Choosing a reliable broker is essential to your success.

– Scams were very common years ago when dealing with a broker. However, one can be confident in company one is working with by checking their background and the Institutions they are associated with (large banks, important insurance companies).

Don’t be discouraged! Forex isn’t all about risks. And have this in mind: If Currency trading were not profitable then why are so many financial investors, banks, international institutions and important players would be involved in it, obtaining huge amounts of cash by simply turning their money into other currencies?

All Currency traders have to be very well informed about their activity. They have to follow the economic announcements, know technical analysis and how to read and interpret charts, they have to develop effective strategies and minimize risk. The financial exposure has to be limited and this can be done in many ways.

So, spend some time to educate yourself on the topic of Forex trading. Think of the rewards Forex trading brings and you will realize that this will be a time well spent and definitely – worth it! Be prudent, never risk more than you can afford and always trade with a Stop Loss.

— Would you like to learn how YOU can become a successful Forex trader?

Read more here http://www.fxsoftwaresolutions.com

Alan Bentler is a trading veteran and an Editor at www.fxsoftwaresolutions.com

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