Forex Trading 101

Why Trade in Forex?

Forex trading has become very popular across the world these days with daily turnover touching nearly $4 trillion. This is an amount that dwarfs the turnover of the stock markets and the gold bullion markets, two of the several investment markets which are widely available to large fund managers. Forex is a word that is made up by combining two words foreign and exchange and these two words embody the essence of Forex trading. The national currencies of the countries of the world are linked with each other and their values are best reflected by their rates in terms of some standard currencies, most notably the USD, Euro, Pound, Sterling etc. The value of a currency does not remain static and keeps on fluctuating, as it is affected by many external and internal factors. Investors have to anticipate the movement of a currency in terms of other currencies and place their bets to make profits in Forex trading.

The reason why Forex trading has become so popular is because of the spread and reach of high speed internet in homes across the world. The internet has enabled many individual traders to trade in Forex and also to do it at any time of the day, as per their convenience. Unlike stock markets, you can invest in Forex 24X7 because of the fact that the world is divided into different time zones. Even if it is night time in your country, one or more financial markets of the world will be open and you can trade in different currencies at different times of the day.

Another advantage of Forex trading lies in the high leverage provided by the brokers to invest in currency markets. You can book a potential profit of […]

Broker Forex List – Utilizing A Forex Brokers List

Forex Brokers List – The Benefits of Utilizing Forex Broker Reviews to Find the Best Broker
By: Forex Trading Advisor

Forex Brokers List

One of the biggest most reliable places a forex investor can aggregate tips about forex brokers is forex broker reviews. Since the broker-investor is a long lasting relationship, it is actually important the present the investor collect as much hints about the broker properties are eyeing before constructing a closing decision to partner with them. Forex Brokers List

Forex broker reviews are available all over the web and can over very top notch information the can improve the ability of a forex trader obtain a sector decision based on other people’s experiences and thoughts. There are very many reviews dotted all over the internet, so an investor has absolutely no reason to make a decision they will regret. At first when a trader decides to dive into forex trade, they will collect a large number of possible brokers to partner with, even before checking them out in reviews. Forex Brokers List

The long list of suggestions and names from advertisements and proposals can then be cut to top ten or top three by forex broker reviews. When using forex broker reviews to gather information about brokers, it is vital to bear in mind exactly what you are looking for. If you are seeking to cut down the number of brokers in your list, you may consider using the broker reviews to find tainting information about brokers then slash them out. Alternatively, use the broker reviews to get the best aspects or characteristics of brokers and make a sound decision based on the good characteristics of the broker. Forex Brokers List

A good business person should invest a […]

By |December 27th, 2013|Forex Trading 101|0 Comments

What is Meant by Forex Scalping Strategies

Forex trading has become a very popular mode of investment these days, surging ahead of stock markets in terms of total turnover. It provides a chance to an individual to book profits whenever there is a movement in the price of currency pairs. This is similar to investing in the economy of a country as the price of currency is often dictated by the shape and health of a country. There are many different strategies in earning a profit from currency markets and Scalping is just one of them. This is a technique of placing a bet and exiting from the trade as soon as it turns profitable without waiting in the hope of higher profits.

The Reason and Aim of Scalping

A scalper or the trader who follows the scalping technique will stay in a trade for only a few minutes or seconds as he/she has to book his/her profit and get out of the trade at the first instant the trade turns advantageous. The major aim of scalping is to allow a trader to make a few pips with every trade, giving him ample time to conduct many such trades in a day. Traders interested in scalping are called futures players. This means they are there to make small profits with little movements of currencies unlike traders that stay in a trade for long duration in the hopes of higher earnings.

Small Profits That Add Up Become a Decent Sum by the End of the Day

The major premise behind scalping is the belief that the first stage of movement in the price of a currency will take place but it is difficult to predict the movement of the currency after a brief period of time. […]

Forex Trade Brokers – 3 Tips To Kick Start Your Forex Trading Online

Forex Trade Brokers – 3 Tips To Kick Start Your Forex Trading Online
By: Forex Trading Advisor

Forex Trade Brokers

As a beginner, you can kick craft your Forex trading (also known as global currency exchange or fx trading) by upcoming the these kinds of guidelines.

3 tips to create off as a beginner to money trading. Tip 1: Choose a trusted trading broker who can provide you with a reliable trading platform.

It is not easy to choose a good Forex broker. Normally I choose a trading broker which is well established and also allows maximum leverage, such as Forex.Com, MIG or Interbank Fx. I prefer Forex.com because you can enjoy minimum capital entries for the live account for as low as USD250. Forex.com provides a lot of different trading platforms and tools such as Forex Trader, Wireless Trading or MetaTrader 4. Personally, I prefer to use Metatrader 4, because it is user friendly and has a stable connection.
Forex Trade Brokers
Tip 2: Open your Forex demo account to start your currency trading.

Demo account allows the user to use “play money” to practice trading with live data. This is very important to a beginner to Forex trading so that they can practice trading without losing real money. As a beginner in online foreign currency trading, you can start a demo account with leverage 1:200. Leverage is a percentage amount of money that you can borrow from the Forex broker. Deposit demo amount should be similar to the future live account amount. For example, we are encourage you to use as low as USD250 to start your demo trading.

After you have downloaded the MetaTrader 4 platform into your computer, you can go to “File” and click on “Open an Account”. […]

By |December 20th, 2013|Forex Trading 101|0 Comments

What are Forex Indicators?

It is very easy to be enamored by the potential of Forex markets and the idea that Forex trading can give you very attractive returns on investment. This is the reason why millions of people around the world get attracted to currency markets. However, despite the turnover of these markets touching nearly $5 trillion these days and thousands of investors making handsome profits with their investment, the currency markets remain volatile and spell doom for more than 90% investors. This is because currency trading cannot be done on one’s whims or emotions. You are investing not in a product but the economy of a particular nation when you invest in its currency. You have to learn to analyze the movements or the past trends to be able to make better predictions in the future.

If you are a novice, you are bound to feel overwhelmed by the charts and patterns of currency movements. You can find it literally chaotic and you are unable to take the right decision amidst the upward and downward movements of the currency pairs. This is where Forex indicators come handy. They are tools that are designed to help traders sail through the sea of Forex trading. The tools are similar to the compass and ruler that have been used by sailors to stay away from brutal storms.

You can make use of various Forex indicators to stay safe in Forex trading as you navigate through the chaotic currency movements. In your journey as a Forex trader, your aim is not just to make profits but also to safeguard the money in your trading account. Most of the Forex indicators available in the market or the internet are technical indicators that can […]

Three Recommendations For Scalping The Market Using Forex Robot Software

Three Recommendations For Scalping The Market Using Forex Robot Software
By: Forex Robot Arena

An individual cannot depend on information from the developers of forex robot software or from other users in this aspect. This is not a matter of faith, it is just that different 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.
All of this assists you to understand exactly what you can anticipate in terms of your bottom line in the long term and what level of risk should you assume. When it comes to risk, by the way, always assume that the worst case scenario is at least twice as bad as the worst patch that you have seen.
It is also vital to have an understanding of 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.
3. Understand your Forex Robot Software
The trouble with higher than average leverage implies that triggering a stop loss will signify a larger loss. Sure, the profits are higher too, but when you have a string of losing trades you can run through your funds especially quickly. It is crucial that your trading account can handle the losses. It is much more possible to be able to do that provided you stay within your risk management guidelines.
For the identical factor it is crucial not to overstretch in terms of leverage. Unquestionably, do not pick out […]

By |December 13th, 2013|Forex Trading 101|0 Comments

Understanding Swing Trading In Forex

Swing trading is a favorite style of trading for many Forex traders, especially among the beginners. It is a cycle of trading that lies somewhere between day trading and trend trading. In contrast to a day trader who holds the position for a few hours but never overnight, a swing trader holds the position for a few days, normally between 1 and 4 Days, while a trend trader would be one who holds a position for a relatively longer period.

Choose the Currency Pair Carefully

To be successful in swing trading, an investor has to pick up a currency pair that moves a lot relative to each other. It has to be a popular currency pair too so as to ensure liquidity in trading.  The essence of swing trading is studying the financial charts and determining how currencies swing between the support levels and the resistance levels. The trader anticipates these swings and then rides on a swing for a few days as he/she knows it will last for a few days and will continue to move in particular direction. The trader knows that the currency will start on a swing in the reverse direction after it reaches its support or resistance level and then makes a profit with the swing in the opposite direction.  So the currency trader looks for swings and trades both long and short the currency pair.  To do this, you should choose charts like the weekly chart so as to ride on a slightly longer trading period (as compared to day trading).

Do Not Attempt Swing Trading When the Market Is Volatile

However, swing trading works favorably only during times when the currency rates are stable and not during the time when the […]

Understanding Forex Systems Risk Diversification

Trading in the Forex markets has become very popular all over the world because of its simplicity and convenience. The turnover in the Forex markets is increasing daily and it has now crossed the $ 5 trillion mark thus making the Forex market bigger than the stock and bullion markets. To make money in the Forex markets the investors need to focus upon a few pairs of currencies and their movements to book profits. Despite these facts, a large majority of the traders tend to lose money in the currency markets. In fact, people trading with the help of automated systems keep losing money despite having 60% winning chances. This is a result of poor money management as well as very little risk diversification. If you are investing in money markets, you should understand that you are there to make money, not to lose it.

You can make use of different strategies to diversify your portfolio and reduce your risk of losing money. This is where diversification comes handy. As a Forex trader you should not put all your eggs in a single basket. This is because if one strategy fails, you will not lose all your money. Currency market can be volatile at times and you cannot trade on the basis of your whims or emotions as one or two mistakes could lead to massive losses for you. You must diversify your portfolio in much the same manner that a person planning for his retirement does by investing in different financial products. This is one way of offsetting losses suffered in one particular scheme.

Randomness is a part of currency trading but you should prepare for any reverses if you employ multiple trading systems. This […]

Three Forex Day Trading Strategies

Day trading is a term that is reserved for Forex traders who book their profits and complete the transaction within the day. This is a strategy that is similar to investors buying stocks and selling them by the end of the day and not holding on to them for longer duration’s. Often there is little movement in the values of currencies in normal circumstances. However, because of the high leverage provided by the brokers, intra-day trading can be profitable even with little movements of currencies. Despite this fact, many of the investors who choose day trading are disappointed because of losses they accumulate in their trading account.

There are many different strategies that can be used by an investor who is interested in intra-day trading at the Forex markets. Out of these, three common ones that are also easy to understand and implement are described below.

Scalping

This is an intra-day technique that lasts a few minutes where the investor exits from a trade as soon as it turns profitable. This is a strategy that aims to give the investor small profits. With the slightest of movement of the price of a currency, an investor can book a profit and exit from the trade. Skimming allows traders to make small profits of 5-10 pips with every trade but they amount to a significant sum of money by the end of the day. Do make sure that you have a broker with small brokerage commissions otherwise you may lose money using this strategy as the brokerage commissions may exceed the profits made per trade (if your capital amount is small).

Momentum

This is another intra-day trading technique that is good for beginners who want to book their profits every day. […]