Monday, June 30, 2008

EXPLOITING RANKING MARKETS

This market behavior pattern is ideal for forex scalping but only once the trader fully understands this trading technique. It tends to range in a consolidation channel for hours at a time before making another significant move in one direction. What this means is that for the majority of time the market is not making significant moves.
Did you know that approximately 70 to 80% of the time, the market is in a consolidation pattern?

WHAT IS SCALPING

Because forex scalpers participate in a trade for a very short period of time and more importantly control the risk per trade very tightly, they are less likely to be hit by adverse market turns. Because forex scalpers participate in a trade for a very short period of time and more importantly control the risk per trade very tightly, they are less likely to be hit by adverse economic news events or overnight gaps as both swing and day traders are. You are not affected by adverse economic news events or overnight gaps as both swing and day traders are. In essence, scalping is a defensive trading method because it allows you to decrease your exposure to the market.
This is opposite to more conventional and commonly accepted approach where a trader "lets his profits run" risking to lose them on reversal or severe pullback and trying to make up for diminished win/lose ratio by bigger ratio of size of a winner vs. Scalping is also a defensive trading method that is based on an assumption that it's easier to get a high amount of winning trades when profits are taken faster, minimizing the cases when relatively small profit evaporates and turns into loss. It is about taking small profits and learning risk management techniques to win more consistantly and frequently.

FOREX SCALPPING-THE MYTHS

So what is scalping then? These are in most part large misconceptions and illustrate a general lack of understanding by the mainstream trading community about scalping as a trading technique and what it actually offers. These are in most part large misconceptions and illustrate a general lack of understanding by the mainstream trading community about scalping as a seperate trading system and different from the other trading systems. Finally, scalping is seen as traders who sit in front of the screen all day, executing trade after trade while trying to play the "spread game" - attempting to profit from the other trading systems.
Here are some common opinions on what scalping is: Forex scalpers are usually seen as risky. These are in most part large misconceptions and illustrate a general lack of understanding by the mainstream trading community about scalping as a trading method is widely misunderstood. Here are some common opinions on what scalping is: Forex scalpers are usually seen as a seperate trading system and different from the other trading systems. Here are some common opinions on what scalping is: Forex scalpers are usually seen as a trading method is widely misunderstood.
By and large, scalping as a trading method is widely misunderstood.

FOREX SCALPPING-THE MYTHS

So what is scalping then? These are in most part large misconceptions and illustrate a general lack of understanding by the mainstream trading community about scalping as a trading technique and what it actually offers. These are in most part large misconceptions and illustrate a general lack of understanding by the mainstream trading community about scalping as a seperate trading system and different from the other trading systems. Finally, scalping is seen as traders who sit in front of the screen all day, executing trade after trade while trying to play the "spread game" - attempting to profit from the other trading systems.
Here are some common opinions on what scalping is: Forex scalpers are usually seen as risky. These are in most part large misconceptions and illustrate a general lack of understanding by the mainstream trading community about scalping as a trading method is widely misunderstood. Here are some common opinions on what scalping is: Forex scalpers are usually seen as a seperate trading system and different from the other trading systems. Here are some common opinions on what scalping is: Forex scalpers are usually seen as a trading method is widely misunderstood.
By and large, scalping as a trading method is widely misunderstood.

Friday, June 20, 2008

How Banks Make Money

International banks are the markets biggest users on the forex markets, as they have millions of dollars to invest daily, to earn interest and this is just one method of how banks make money on the money you save in their bank.

Think about the bank that you deal with all the time. Do you know if you can go there, and obtain money from ‘another’ country if you are heading out on vacation? If not, that bank is most likely not involved in forex trading. If you have to know if your bank is involved in forex trading, you can ask any manager or you can look at the financial information sheets that banks are to report to the public on a quarterly baiss.

Forex Trading-Where do Customers go

Forex trading uses currency and stock markets from a variety of countries to create a trading market where millions and millions are traded and exchanged daily. This market is similar to the stock market, as people buy and sell, but the market and the over all results are much much larger.Those involved in the forex trading markets include the Deutsche bank, UBS, Citigroup, and others such as HSBC, Braclays, Merrill Lynch, JP Morgan Chase, and still others such as Goldman Sachs, ABN Amro, Morgan Stanley, and so on.To get involved in the forex trading markets, contacting any of these large broker assistance firms is going to be in your best interest. Sure, anyone can get involved in the forex market, but it does take time to learn about what is hot, what is not, and just where you should place your money at this time.


If you are new to the forex market, it is important to realize there is no one person or one bank that controls all the trades that occur in the forex markets. Various currencies are traded, and will originate from anywhere in the world. The currencies that are most often traded in the forex markets include those of the US dollar, the Eurozone euro, the Japanese yen, the British pound sterling and the Swiss franc as well as the Australian dollar.These are just a few of the currencies that are traded on the forex markets, with many other counties currencies to be included as well. The main trading centers for the forex trading markets are located in Tokyo, New York and in London but with other smaller trading centers located thought out the world as well.

Golden Rules for Forex

am going to be very candid with you right now, and I risk alienating myself from most of the other Forex educators out there. However, I had to make a decision: tell you the truth, or keep my mouth shut to make good with the "old boys" network of Forex "gurus".
Deep breath... here it goes...
I've had my eyes on the Forex markets for years, but specifically, I spent the last year carefully researching, testing, and tweaking every course, system, and method I could get my hands on to see what was going on. So, I think I've seen it all, and for the most part - it's ugly.
I have 4 "golden rules" that I use to determine if a trading method is good for me:
1. It must be a complete method, with setup conditions, entry rules, initial stop rules, and exit strategy rules, leaving no decision to chance.
2. It must include specific risk management, money management, and portfolio management guidelines.
3. It must be based on technical analysis, but it must not be a 100% mechanical system.
4. It must take less than 20 minutes a day to apply after learning how to trade with it.
Let me talk about item #3 above for a moment, because this is where a lot of traders can potentially lose a lot of money.
When you rely on a computer to make 100% of your trading decisions, you do not learn how to become a trader, and you never will. Instead, you learn to follow directions. This can be extremely dangerous to your portfolio, because almost every system I've seen since 1974 has been back-tested and curve-fit, which means it will ultimately fail, or at least not live up to its past hypothetical results.
Now, that statement might get me into trouble, especially with younger traders, who tend to believe that you can create a 100% mechanical system that never (or rarely) loses. Folks, that's called the Holy Grail, and a week doesn't go by that I don't get an email from someone who thinks they have found it.
By the way, this becomes even more dangerous when you base your livelihood on a third party service that feeds you signals every day without telling you their "secret formula". What would happen to you if they went out of business?
(Just for the record, I believe some mechanical systems ARE good, at least for awhile, but I also believe the only way to maximize their use is if you truly understand how to trade in the first place.)

Forex Trading System

Dolly is WSS clone? OR WSS is a clone of Dolly?
Based on a commercial trading system called Winning Solution, a clone has been made with a given name “DOLLY” (Anyhow, why should we buy a trading system which still give false signals??)After doing forward testing, sometimes we found the new day signal began inside the buy / sell area, which made us to postpone our […]

Isakas II Forex Trading System - Best for trending market!
Do you like trading on a trending market? Then this system is suitable for you.This system only use 4 indicators, they are: NonlagDOT, FlatTrend, BollingerBand Stop, and Fisher Kuskus.Just download file below, and use the template to make your meta trader chart exactly like screenshot below.Enjoy your trading!
This is a great and simple forex trading […]

Shiny15 System - A simple but profitable Intraday Forex Strategy
MT4 indicators and template attached - Updated to version 1.3This is an easy to use system that I’m working on. I’m using EURJPY/15 minutes only for now. Please try it out and help me improve it!SettingsEURJPY 15 minutesHeiken Ashi default (usually comes with MT4)SSL 5Laguerre Gamma 0.75, Levels 0.75 and 0.25IndicatorsHeiken Ashi is similar to […]

Catch up to 30 pips easily per day via daily GBPUSD breakout system :)
This is a really simple breakout strategy! Optimal for GBPUSD Pair!Just set your sell stop and buy stop according to this system, and you can earn up to 30 pips per day without any stress.A perfect set and forget strategy!
–Click here for full image–
This simple system is limited to ultimaforex active clients only. Once you […]

The 80’s Trading System - Optimal on H1 Chart!
BUY if all indicators are WHITE.SELL iff all indicators are RED. The 80’s Trading System - Optimal on H1 Chart!

KuasaForex System FREE
This is a great free forex trading strategy and will produce great results on market with strong trend. Just put this system on any pairs with M30 or H1 timeframe.Somebody sold this for 97 Ringgit Malaysia at kuasaforex[dot]dom. Don’t buy it! He sold indicators that he get for free at Forex-TSD.com!!
BUY when all […]

How to Profit Forex Trade

Basic yet important things every trader should know.
If you hear from anyone that making money in Forex is easy, do not believe it. It is a myth. The truth is – being profitable in Forex requires a lot of work, dedication, practice, more than a good discipline, sharp knowledge of money management and understanding of the psychology of the currency market. Not so little and therefore not so easy…
Trading Forex was never about gambling
Trading is not a gambling by guessing where the price will move, although there are many traders (mostly beginners) that are exactly gambling… Trading currencies on the Forex market requires logical and analytical calculations based either on fundamental or technical analysis of price moves.
Making money in Forex requires a set of rules
Making money starts with a plan to make money. Such plan is of enormous importance when it comes to trading foreign currencies. But, besides creating a plan, a trader needs constantly follow it. How often trader brake his rules will affect how much money he will make trading Forex. Sounds simple: create and follow… However, there is a real challenge when trader follows the rules but rules fail to make money… it happens inevitably for every trading system known. If system had proven to be successful, sticking to the trading plan and firmly following the rules even when losing money will eventually yield profitable outcome. Having strong trading discipline and taking losses when necessary is a sign of serious trading approach.
Succeeding in Forex by using money management
To profit in Forex sticking to a set of rules is not enough. Good money management is also needed. Knowledge of how much to trade per each open position and where and when to stop – is what separates successful trader from bankrupt trader. Many beginner traders over-leverage themselves being attracted by big and promising leverages offered by Forex brokers. The truth is that a big leverage is not only about a big win, but also when it comes to be so – a big loss. Leverage higher than 1:20 will not attract serious investors.
Know your losses, before counting profits
Opening a new trading position must be first of all about how much money may be lost and then what would be the profits. Good money management implies that trader is expecting to win at least twice as much as he could lose on each trade. This way being right only 50% of the time will still make trading profitable.Using good money management in Forex trading is hundred times more important than having any great trading system itself.
Forex traders’ mind
And last but not least is trader’s psychology. Going in profit or losing money always create psychological challenge for trader to act responsively. Not being greedy and also cutting losses short is the key to this game.Trading Forex you need to accept losses. They are inevitable and occur in any money involving operations. Therefore, instead of battling losses trader needs to accurately analyze unfavorable situations and take lessons from losing trades.Every experienced trader would also suggest – there must be no attempts for revenge when losing money. Trying to return your money at any cost will put a trader in deeper troubles. Instead, the trader should return to trading rules and honestly analyze own mistakes, accept that the market was not in his favor and try to improve the trading plan for future success.
Successful traders are learners, what about you?
And finally, even successful traders are constant learners. Up-to-date knowledge about Forex market opportunities is what also makes them continuously profitable in their trading career.
Happy learning and trading!

Top 10 Myths about Forex

Forex is a market where exchange of one currency with another currency takes place. It’s the market which provides accessibility and liquidity to the traders to buy and sell one foreign currency in exchange of another.
Forex traders seek profit in buying currencies low and selling them high. This kind of trading became more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web. However there also many myths surrounding the foreign exchange market:
Forex trading is easy. Many people that want to dive into the world of the foreign exchange market believe that the Forex trading is easy — you just read a book or two and then you will be able to earn daily profits with just 2-3 hours trading daily. Others think that they can buy a profitable strategy and it will make them rich in Forex. In reality that’s just a myth. Succeeding in Forex isn’t easier than mastering any other profession — it takes time, money and a lot of practice.
"I will make money in Forex, if I can trade stocks successfully." Success in stock market doesn’t imply that you will get success in Forex market — there are many differences between trading stocks and the spot currencies. First of all, Forex market requires a lot of hard work and dedication as this market is open for 24 hours a day. You cannot just sit in front of your computer for the whole day and night, so the best way is that you should find the most suitable time periods for trading. Second, “buy&hold„ strategy simply won’t work in Forex market. Third, you don’t have that much information about currencies as you can get from the companies’ reports and statistics.
"I can make profit whenever I want if Forex market is open 24 hours a day." Once again, you won’t be sitting in front of your PC for the whole day to be able to trade 24 hours. You’ll have to develop automated trading software to get the advantage of 24 hours a day working schedule.
"I can be a successful Forex trader just following someone else’s signals." Many beginning traders get burned by the blind signal-following. That’s like putting away the whole responsibility for your actions to someone else. That may sound cool, but in reality you end up with the huge losses. Learn to rely on your own knowledge and skills. Remember that there were no great signal-followers in any financial market.
No commission is to be paid in Forex market. You only have to pay the spread, but you don’t have to pay the commission. And what’s spread? It is the difference between the buy and sell price of the currency pair at the same moment. You may end up with the major part of your profits in the broker’s hands if you plan to rely on the short-term trading.
Forex is a scam. Some skeptics and disappointed traders think that Forex is just some new fad to scam people for their hard earned money. Although there are many scams that are hiding behind the "brand" of Forex, that doesn’t mean that the Forex itself is a scam. There are many institutional Forex brokers, regulated Forex account managers and other solid companies in the market to whom you can trust.
"I need to exactly predict the market outcome to be profitable in Forex." There is no scientific method to know something in advance in the market with a 100% certainty. There would be no Forex market if you could know the exact currency rates beforehand. Trading is not the game of certainties; it’s a game of odds. One of the first things that new traders learn is to think in the terms of probabilities and risk-to-reward ratios.
"I need to use a very complex strategy to be successful in Forex." It’s a popular myth, in which many on-line sellers would want you to believe. The main requirement to be successful in Forex is a self-discipline and money management. There are many traders that make consistent profits with rather simple and old strategies.
"I need to have a lot of starting capital to get profit in Forex." Big capital investment won’t help you in Forex. You don’t need a lot of money to diversify in currencies and you can’t move the currency rates with your trading orders (you’d need billions of dollars to do that). Actually you can trade with a very a little capital, because Forex trading is almost always leveraged with the broker’s money.
Forex is gambling because it’s completely random. Although there is no certainty in Forex (as in any financial market) it doesn’t mean that it’s completely random. And it’s certainly not a gambling, since your success in this market depends mostly on your skills and experience, not on your luck.
Knowledge is power — so it’s better for you to learn distinguishing some stereotypical myths from the real thing. Don’t fall for the promises of getting some easy profits in Forex, but don’t be afraid of the market just because some people think it’s not possible to earn there. Be rational — this quality will help you either if you are going to trade in Forex or not.

How to increase Forex Profits 100% in very time

this simple exercise will increase Forex profits 100% and works for 99% of all short-term FX traders – stop trading so much – widen out your stops – widen out your profit targets – and only trade in the direction of the trend indicated by 4 hour chart. 1) Stop trading so much Sure There are no commissions but the spreads are HUGE and believe it or not (well you’ll believe it after you do the simple exercise below) the spreads are reducing your profits 100%! 2) Widen out your stops Initial stop loss should be a minimum of 23 points; I use between 23 and 35 point stop losses for short-term trading. 3) Widen out your profit targets Unless you think a trade can make you 100 points or more don’t do it. 4) Only trade in the direction of the 4 hour chart The real money is made in the direction of the trend Simple exercise 1) Download all your trades for the year into an excel spreadsheet (if you don’t know how to do this ask your broker for help). 2) Determine the dollar value of the spread for each trade. 3) Sum up the total dollar value of all spreads for all trades and add this number it to your current account balance; this is your spread adjusted account balance. 4) Take your spread adjusted current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change. 5) Take your actual current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change. 6) Subtract your spread adjusted year to date percentage change from your actual year to date percentage change. 7) That number should be 100% or more 8) Take the necessary steps as outlined above (1 to 4) and improve your results 100%

Guides Lines to Create your own Forex Trading System

There are several things we want to achieve when creating Forex trading system:
1. Find entry points as early as possible.2. Find exit points securing maximum gains.3. Avoid fake entry and exit signals.
If accomplished, these three goals will yield a profitable trading system.
So, where to start from?
Action number One
Choosing your Time Frame
This is the first step, where you will need to answer yourself: how many hours you want to dedicate to trading? Would you prefer sitting in front of the monitor constantly for several hours trading short (5, 15, 30 minutes) time frames that would require constant market monitoring and quick reaction to price moves OR you would be more comfortable with setting up your charts once or twice a day and never turn your monitor on during the rest of the time?
This is pretty much about the comfort and free time you have on your hands that could be spend in the Forex currency world, however, while testing your new strategies you may want to find out about their performance in different time frames and then choose the most accurate and profitable option.
Action number Two
Choosing Trading Tools
There are plenty of trading tools and indicators available to Forex traders, but not all of them could give the fastest signal about upcoming trading opportunities. And traders’ goal, of course, is to get into the trade as early as possible and take maximum advantage of price moves.
Among indicators that could provide traders with a fast signal about upcoming changes and possible trading opportunities are such indicators as EMA (Exponential Moving Average), SMA (Simple Moving Average), Parabolic SAR; Fast, Slow or Full Stochastic, MACD and others. The key moment here is to fully understand the principles of their work to be able to take maximum advantage of signals those indicators produce.
One of the common ways to spot a trend reversal as fast as possible is to use Moving Averages. Such simple strategy as using 5 EMA and 10 EMA crossover will show trend reversal and new trading opportunity at its earliest stage.
Another example would be Stochastic lines crossover or MACD lines crossover. The idea behind it is simple: when two line cross each other the trend is changing to the opposite and new opportunity for entry arises. Stochastic and MACD indicators also use moving averages.
Combining indicators on the one chart and experimenting with indicators values, traders can create an optimal and the fastest way to spot the early trading opportunities.
Action number Three
Choosing a currency pair and finding its active trading hours
Currencies have their own “characters” or behavior. Some are extremely active like GBP/USD or GBP/CHF, some are quite consistent and steady trending like EUR/JPY or EUR/GBP.
Different indicator set-ups, different values may be used to achieve best results for each currency pair.
Also a good idea is to find the most active hours for a chosen currency pair. Those hours of currency highest activity are easy to spot on the chart and should be used to get maximum profits during the trading session.
Action number Four
Choosing additional trading tools to confirm signals received earlier
Once we found time frame, indicators and currency pair(s) that respond the best it is time for the most crucial step — finding additional tools/indicators that will confirm received earlier signals and give either a green light for action or save Trader from fake-outs.
As a confirmation indicator Trader can use again any indicator or trading tool he/she is well familiar with. It is recommended to be more sophisticated in choosing additional tool to confirm the prior signal. It could be also the same indicator but with different settings.
For example, with our initial 5 EMA and 10 EMA crossover method we could use additional 20 EMA line and wait until 5 EMA crosses 10 EMA (which is the first signal) and continues through 20 EMA (which would be our confirmation for action).
Or instead, we could opt for MACD indicator – it is a very good Forex indicator that can reveal a lot of useful information. Finding the best working value set-up for MACD (it has initial settings are (12, 26, 9) ) that will perfectly match our time frame and particular currency behavior we can use it as a great confirmation indicator to separate most promising trades from fake, loosing ones.
Other good indicators/tools to confirm the signals are RSI, Stochastic, Fibonacci etc. Improvising and learning Trader can find the one that produce best results.

3 Methods of Gaining In Forex Trading

There are essentially 3 methods you can use to gain profits with Forex trading; purchasing and using a Forex trading system, reading books/information and then going solo or reading books/information/going solo then releasing your own Forex trading system. It's a pretty basic concept but for those who are confused about Forex trading hopefully this will clear some stuff up. Each style caters to a specific lifestyle and set of goals.
I'll kick it off with the easiest method, that being a Forex trading system. You buy it for roughly $100 and it does all the work for you (or you can have some input depending on which system you use). If you're lazy or busy this is the method I'd recommend going with. Financially speaking people have earned upwards of $100,000 in profit using a trading system with no previous trading experience; that's a lot of green. A big advantage you have with this is you're automatically trading all day and night and since the Forex market is open 24/7 you won't miss a good trade (provided you have an effective system).
The second method you buy and read books/information about Forex trading and you rock out on your own. If you like having total control and you're not a very busy person this is great; just make sure you know what you're doing before investing actual money. I think the biggest disadvantages with this are you could lose A LOT of money through the learning process and you may miss good trades (you can't be at the PC 24/7!). The advantage to doing this is you're gaining knowledge and understanding what's going on with the trading market; that's always a good thing.
The third method is essentially the same as the above but you release your own trading system after years of trading. The advantage here is you're essentially creating a business centered on your name and reputation; if you've done well with Forex trading and create a system better than the rest you're looking at some mad profit. The only real issue here, again, is the money when you're just beginning but if you can break that barrier, you're your knowledge to use and quickly profit you're set. Maybe start with a trading system, make some profit, learn all there is to know about Forex trading and THEN release your own trading system? That way you'll have all the money you'd need to get going; I don't know I'm just talking out loud (or typing... yeah you get it).

Sure Profits in Forex

Sure Profits Inc. is a professionally managed private equity fund founded by five individual investors with the view of interlinking their businesses, creating additional source of investment capital, establishing a base for information sharing and mutual involvement in high risk/high yield investment opportunities. Mainstream fund activities are determined by professional interests of its founders, that include investments into companies involved in discounting securities, stock and commodity trading, real estate development, import-export operations, and FMCG stock lots wholesaling. Serious words about a serious business. So why 'Sure Profits Inc'? You can read the whole story at our member only forum once you register and log in. It's a remarkable story of people who made wealth building an addiction. Now, you can be a part of this amazing opportunity! For a limited time only we are fully open to general public. Making money can be a great fun, and that's what we are going to prove! Doing serious things with a smile is our style. You'll get accustomed to it. Our goal is to build a small on-line community of wealth building addicts, cheerful, and optimistic about their future!

2 Types of Options

American-style – This type of option can be exercised at any point up until expiration. European-style – This type of option can be exercised only at the time of expiration.
One advantage of traditional options is that they have lower premiums than SPOT options. Also, because (American) traditional options can be bought and sold before expiration, they allow for more flexibility. On the other hand, traditional options are more difficult to set and execute than SPOT options. (For a detailed introduction to options, see "Options Basics.")
>> Single Payment Options Trading (SPOT)Here is how SPOT options work: the trader inputs a scenario (for example, "EUR/USD will break 1.3000 in 12 days"), obtains a premium (option cost) quote, and then receives a payout if the scenario takes place. Essentially, SPOT automatically converts your option to cash when your option trade is successful, giving you a payout.
Many traders enjoy the additional choices (listed below) that SPOT options give traders. Also, SPOT options are easy to trade: it's a matter of entering the scenario and letting it play out. If you are correct, you receive cash into your account. If you are not correct, your loss is your premium. Another advantage is that SPOT options offer a choice of many different scenarios, allowing the trader to choose exactly what he or she thinks is going to happen.
A disadvantage of SPOT options, however, is their higher premiums. On average, SPOT option premiums cost more than standard options.

Forex Options

Many people think of the stock market when they think of options; however, the foreign exchange (FOREX) market also offers the opportunity to trade these unique derivatives. Options give retail traders many opportunities to limit risk and increase profit. Here we discuss what options are, how they are used, and which strategies you can use to profit.
Types of FOREX OptionsThere are two primary types of options available to retail FOREX traders. The most common is the traditional call/put option, which works much like the respective stock option. The other alternative is single payment option trading--or SPOT--which gives traders more flexibility.
>> Traditional OptionsTraditional options allow the buyer the right but not the obligation to purchase something from the option seller at a set price and time. For example, a trader might purchase an option to buy two lots of EUR/USD at 1.3000 in one month; such a contract is known as a "EUR call/USD put." (Keep in mind that, in the options market, when you buy a call, you buy a put simultaneously--just as in the cash market you buy one currency and simultaneously sell another.) If the price of EUR/USD is below 1.3000, the option expires worthless, and the buyer loses only the premium. On the other hand, if EUR/USD skyrockets to 1.4000, then the buyer can exercise the option and gain two lots for only 1.3000, which can then be sold for profit.
Since FOREX options are traded over-the-counter (OTC), traders can choose the price and date on which the option is to be valid and then receive a quote stating the premium they must pay to obtain the option.

Forex Main Market

In comparison the over the counter market is traded around the world by a multitude of participants and price quality, reputation and trading conditions determine who a participant wishes to trade with. It is probably the most competitive market in the world and brokers must insure they live up to the highest standards of service and be compliant with market standards and practices if they want to acquire new customers and retain their existing ones. In 1998 a survey under the auspices of the Bank for International Settlements (BIS), global turnover of reporting dealers was estimated at about USD 1.49 trillion per day. In comparison, currency futures turnover was estimated at USD 12 billion.Among the various financial centers around the world, the largest amount of foreign exchange trading takes place in the United Kingdom, even though that nation's currency, the British pound is less widely traded in the market than several others. The UK accounts for about 32% of the global total; the US ranks a distant second with about 18%, and Japan is third with 8 percent.

Who can participate in Forex Trading

In the past years, the foreign exchange market has expanded from one where banks would execute transactions between themselves to one in which many other kinds of financial institutions like brokers and market-makers participate including non-financial corporations, investment firms, pension funds and hedge funds.
Its' focus has broadened from servicing importers and exporters to handling the vast amounts of overseas investment and other capital flows that currently take place. Lately foreign exchange day trading has become increasingly popular and various firms offer trading facilities to the small investor.
Foreign exchange is an 'over the counter' (OTC) market, that means that there is no central exchange and clearing house where orders are matched. Geographic trading 'centers' exist around the world however and are: (in order of importance) London, New York, Tokyo, Singapore, Frankfurt, Geneva & Zurich, Paris and Hong Kong. Essentially foreign exchange deals are made between participants on the basis of trust and reputation to deliver on an agreement. In the case of banks trading with one another, they do so solely on that basis. In the retail market, customers demand a written legally accepted contract between themselves and their broker in exchange of a deposit of funds on which basis the customer may trade.Some market participants may be involved in the 'goods' market, conducting international transactions for the purchase or sale of merchandise. Some may be engaged in 'direct investment' in plant and equipment, or may be in the 'money market,' trading short-term debt instruments internationally. The various investors, hedgers, and speculators may be focused on any time period, from a few minutes to several years. But, whether official or private, and whether their motive be investing, hedging, speculating, arbitraging, paying for imports, or seeking to influence the rate, they are all part of the aggregate demand for and supply of the currencies involved, and they all play a role in determining the exchange rate at that moment.

High Risk Investment

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all visitors. Before deciding to trade foreign exchange you should be very carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any kind of doubts.

Forex Scams

It seems like a new company springs up every day that has the signal service to beat all signal services. They profess to be able to sell you information on which trades you should make. These kid of signal sellers usually charge a daily or weekly or monthly fee for their service and usually do no offer anything that will help improve your trading. There is no such thing as having a magic like key to market and if there was, why would you sell it?

Phony Investment Funds
In the past few years, funds called HYIP ie High Yield Investment Program have popped up all over the place. Most of these (not all) are scams. They promise you a high level of return for temporary use of your money in their forex fund. It is a type of Ponzi scheme where the investors of yesterday get paid back by the investors of tomorrow. Once the fund runs out of prospects, they usually close down and take whatever money they had with them.

Mistakes that forex traders make

When getting started in forex trading, there are some common mistakes that the investors to be avoided. The list is below:

1. Over Trading: Over trading occurs when traders try to look for trading chances that are not really there. It happens to new traders oftenly, because they just want to trade. The result is usually a poor one that results in loss. Over trading can also result in traders making too many traders at once and using too much margin.

2. Using Too Much Leverage: One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that the traders make is using too much of leverage. Using too much leverage again your position by just a small amount, it can result is a very huge loss. Commonly, the beginning traders will get emotional and nervous and close the trade for a loss.
3. Picking Top and Bottoms: Many of the new traders will attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for the most professinal and experienced traders.

Day Trading

Day trading is one way of performing foreign exchange trading. Usually day trading deats are opened and closed on the same day, you may make a few deals in a day, or a few hundred. It is your decision.
It is possible for a day trading deal to last longer than one day. When this happens, the deal is automatically renewed at 22.00 GMT each night until the deal closes. Upon renewel you will be charged a fee for rolling the deal for an extra 24 hours. This fee will be collected once a day when the deal is renewed. The fee will be collected form you free balance in your trading account, and if there is no sufficient free balance then your credit card will be debited. If there is no credit card, the next time you have a free balance and execute a withdrawal from your account, the amount owed due to non payments of the rolling fee will be deducted from the amount you have withdrawn.

Day trading is becoming more and more popular now a days that more people use the internet. It is one of the Forex instruments offered by easy forex.

Day trading with easy forex
A day trading deal with easy forex involves the below 4 steps:
1. Decide to perform a forex deal.
2. Decide the deal you want to make and build it in your online account.
3. Monitor the deal in your account
4. Close the deal

Gold Investments

Gold has been used for investments for a very long time. It has a high value and is an independent resources. It is not subject to individual countries or trading markets. It is not connected to companies or governments. For these reasons, investments is gold can be usally be very help ful for investor to avoid some problems that can happen in the economic environment.

Gold investment can mean investing in gold bars, gold coins, and even gold jewellary. Many different sorts of gold accoutns are available in the investment world.

Gold Markets
The gold market is now a days a worldwide market. London and New York are the 2 biggest market places for gold in the entire world. Gold markets operate like other investment markets, similar to the stock exchange. Buying and selling happens every day with prices influenced by economic conditions within the markets.

How Banks Make Money

International banks are the markets biggest users on the forex markets, as they have some millions of dollars to invest daily, to earn interest and this is just one method of how some banks make money on the money you save in their bank.

Think about the bank that you deal with all the time. Do you know if you can go there, and obtain money from another country if you are heading out on vacation? If not, that bank is most likely not involved in forex trading. If you have to know if your bank is involved in forex trading, you can ask any of your manager or you can look at the financial information sheets that banks are to report to the public ona quaterly basis.

Currencies

If you are new to the forex market, it is important to realize there is no one person or one bank that controls all the trades that occur in the forex markets. Various currencies are traded, and will originate from anywhere in the world. The currencies that are most often traded in the forex markets include those of the United States Dollar, the Eurozone Euro, the Japanese Yen, the British Pound sterling and the Swiss Franc as well as the Australian DOllar.
These are just a few of the currences that are traded on the forex markets, with many other countries currencies to be included as well. The main trading centers for the forex trading markets are located in Toyko (Japan), New York (USA) and in London but with other smaller trading centers located through out the world also.

Forex Trading, where do customers will go?

Forex trading uses currency and stock markets from a varitey of countries to create a trading market whre millions and millions are traded and exchanged dialy. This market is similary to the stock market, as people buy and sell, but the market and the over all results are mush much larget.
Those involved in the forex trading markets include the Deutsche Bank, UBD, Citigroup and others such as HSBC, Braclays, Merril Lynch, JP Morgan CHase, and still others such as Goldman Sachs, ABN Amro, Morgan Stanley and so on. To get involved in the forex trading markets, contacting any of these large broker assistance firms is going to be in your best interest. Sure anyone can get involved in forex market, but it does take some time to learn about what is latest and hot and what is not and just where you should place your money at this time.

Thursday, June 19, 2008

How do I get started with Forex

Do you see the profit potential in trading currencies, but learning to trade just seems too daunting? Have you watched with excitement the recent crashing of the value of the United States Dollar, but simply anyone dont know how to get started trating?

While it is simple to begin trading forex online, maintaining profitability in the long term is no easy task. You have prbably heard that 90 percent of forex traders will loose their money in the long time. If indeed this is absolutely true, it is the result of a couple of different factors.

Overtrading:- Each trade costs you a couple of pipsa, consider your trades well befor you make them. Each faulty trade, even if excited quickly, drains equitey.
Bad money management:- One bad trade can wipe out a year of patient, smart trading. Manage your risk using stop loss orders, so that you never risk too high a percentale of your equity on any one single trade.
Lack of knowledge:- If you have never traded forex before, educate well for yourself. Successful traders are not born that way. The difference between the success and failure in the forex market depends in no small part on the knowledge and education on a trader. For the beginning trader, a proper education is essential before investing in the Foreign Exchange. Find a program yu are comfortable with, and begin practicing on a demo account.

Trading on the foreign exchange offers unparalleled opportunities for profit, but it is also extremely high risky. Make sure you know what you are getting into before you start trading, and start trading only when you are very comfortable in you knowledge and ability.

Currency Exchange

Not a currency that is mentioned very often, the Slovak Crown set a new recard during tuesday mornings trading. The boost comes from the expected announcement from the European Commission on wednesday that will okay the adoption of the Euro in the country by 2009.

Euro rises above the dollar...

For the better part of 10 years the Euro has been fighting to gain some ground on the American dollar. On April 22, 2008, if finally did it, trading above $1.60 for the first time even amount the rumours that have been circling around the international currency community.

UK Venture created for Trading

The United Kingdom is getting a new chance to do some market trading as a new business venture appears on the Forex playing field. The Rosenthal Collins Group, LLC and the GAIN Capital Group, LLC, are joining together in an effort to open up operations and opportunities in the UK.