Facts about Scalping in Forex

Facts about Scalping in Forex

The only way to make small account big in a short period of time is through the use of really high leverage. But wait ... do not jump of the cliff right away. Start with reasonable leverage for scalping, for example 20:1 or at most 50:1, then move on as you see scalping skills improve. But even before that do not be lazy to demo trade your scalping system – make sure it will not disappoint you later ...

The only way to trade with high leverage without risking blowing up an entire account in only 10-15 trades is by trading with a tight stop loss. Trading without stop loss will “kill” your investment in no time.

It is wise to decide on the size of the trading lot and exposed risk in advance. Do a simple math : calculate the worst possible situation, e.g. : 10 consecutive losses in a row ; then see if your account will survive and if there be something left to move on. And, although 10 losses in a row is a very unlikely scenario, you cannot deny it ...

Although Forex is active 24/7, not every hour is suitable for scalping.
No scalper wants to sit in front of the monitor for numerous hours bored and disappointed with the “sleeping” price as it literally moves nowhere. Scalpers hunt for volatile, liquid market. There are 4 major market sessions : London, New York, Sydney and Tokyo session. To trade effectively scalper needs to learn behavior of a chosen currency pair and define most active sessions, even particular hours for this pair to be able to catch good price moves.

Another thing to keep in mind is spread which brokers charge for different currencies. The higher the spread the harder it will be to collect desired pips ( because once trading position is opened, trader must cover spread cost – earn pips for broker first – and only then collect own pips ). And, of course, the lower the spread the easier/faster it is to accumulate pips.

Another factor to consider is an average daily range of the price for chosen currency. The wider it is the more realistic is an opportunity to profit from price moves. One of the scalpers’ favorite currency pair is EUR/USD with its low spread and good daily price range.

While using high leverage combined with high frequency trading, scalpers should be very cautious about the cost of actual trading, as each pip here makes a dramatic difference after a large number of trades.

This means being very careful with entries and exits, stops and limit orders, and also be very realistic about profit targets.

Once in the trade, scalpers should manage trading risks by :
1 ) moving stops to break-even as soon as situation permits ;
2 ) taking profits at a logical levels : at round market price numbers : 00, 10, 20, 50 etc ..., at previous support/resistance levels, at Fibonacci levels etc ...
3 ) getting out of the trade if the price freezes for longer time than expected.

Scalp-trading is very demanding and requires a lot of concentration, constant monitoring of the price and very quick decision making. Also, short time frames used in scalping strategies, require a good grasp of trading complemented with sound technical analysis skills. It is not a place where beginners feel very comfortable as it demands from traders a good chunk of experience.

Scalping involves substantial risks

A lot of beginners have common problem when trading highly leveraged accounts – they tend to maximize profits by trading with full capital at once. Do not do that ! Maximizing chances for higher profits goes hand in hand with maximizing risks ! The size of positions opened must be calculated very accurately so that your entire account will not be wiped out with just one( ! ) very unfortunate trade.

Another factor that increases risks for scalpers is the spread traders pay when open a trade. Each time a new trade is open, the spread cost is paid to the broker, thus opening 10 small trades instead of 1 long term trade increases the cost of trading in 10 times. If to measure risk/reward ratio of such scalping activity it may show very risky and potentially losing trading.

Example :

With GBP/USD currency pair a scalper sets profit target of 10 pips and stop loss of 10 pips. So far it is 1:1 risk/reward ratio. In the next step, when the spread is added, the picture changes.

For example, the spread his broker charges for GBP/USD is 4 pips. When scalper opens a position he is -4 pips ( the spread has been charged ). Now in order for him to reach the target of 10 pips profit, the price has to move +4 and +10 pips = 14 pips.

On the other hand, in order to trigger his stop loss the price should move ... -4 is already in place ... so, only -6 pips and he will be stopped at total of -10 pips ... the risk-reward ratio has changed in over 2:1, not very promising situation indeed ...

To understand the full challenge of scalping as a trading style, consider this : hard work and small gains accumulated over a decent period of time could easily be wiped out with one large loss. Finding a balance between profit levels and size of acceptable losses presents the most difficult challenge to scalper’s strategy.

Best of luck in achieving your goals !

Good Luck !
To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

How to Profit Trading Forex

How to Profit Trading Forex

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 !

Good Luck !
To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

22 Forex Trading Tips

22 Forex Trading Tips

Dear Traders, take a look on those important tips given to you.
Read on ...

Tip #1 : No Gamblers
Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling. Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money ...

Tip #2 : Practice on Forex Demo Account
Never invest money into a real Forex account until you practice on a Forex Demo account ! Allow at least 2 month for demo trading. Consider this : 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market. So, starts practicing on your Forex Demo account first.

Tip #3 : Go with the Trend
Go with the trend ! Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.

Tip #4 : Looking at Time Frame
Always take a look at the time frame bigger than the one you've chosen to trade in. It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart ; trading hourly would require obtaining a picture of daily, weekly price movements.

If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now ( during 5-10 minute time frame ) should be of only importance to a Forex scalper.

Tip #5 : Never Risk
Never risk more than 2-3% of the total trading account. One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.

Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact : losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.

Tip #6 : Trade Calm
Put emotions down. Trade calm. Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning. Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.

Tip #7 : Choosing the Time Frame
Choose the time frame that is right for you. Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc ... Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.

Tip #8 : Stay Out
Not trading or standing aside is a position. When in doubt — stay out. If it is not clear where the market will move — don't trade. In this case saving present capital is and absolutely better choice than risking and losing money.

Tip #9 : Use Protective Steps
Learn to use protective stops. Respect them and don't move. Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further a trader increases his chances to end up with much bigger loss.

When holding to a losing trade too long, and even if funds permit, traders as a rule are very reluctant to accept big losses, thus often continue "hoping for best". In the mean time invested money is stuck in the open trade for unknown period of time ( weeks and even months ) and cannot be used for opening new positions. Not working money — dead money. Also this will result in constant interest payments for holding open positions.

Tip #10 : Keep it Simple
"Keep it simple, stupid" — applies to indicators, signals and trading strategies. Too much information will create a controversial picture of where to trade and when not to. To avoid lots of confusion create a simple but working method of trading Forex.

Tip #11 : Risk Ratio
Think about risk/reward ratio before entering each trade. How much money can you lose in this trade ? How much can you gain ? Now, make a decision if the trade is worth entering. Example : if trader is looking for possible 35 pips gain and possible 25 pips of loss, such conditions are not worth trading. Compare it with the situation when a trader has 100-120 pips of potential gain and only 10-20 pips of possible loss. This is the trade to open !

Tip #12 : Proven Trade
Never add positions to a losing trade. Do add positions when the trade has proven to be profitable. Don't allow a couple of losing trades in a row become a snowball of losing trades. When it is obviously not a good day, turn the monitor off. Often not trading for one day can help to break a chain of consecutive losses. Trying to get revenge can often make things worse.

Tip #13 : Let Profits Run
Let your profits run. Let your position be open for as long as the market wishes to reward you. Of course, for this traders need a good exit strategy, otherwise they risk to give all profits back ... Running two or more open trades gives an option to close some positions earlier and keep others running for higher profits.

Tip #14 : Cut Losses
Cut your losses short. It's better to finish unprofitable trade quickly than wait for the situation to get worse. Don't put a stop loss too far — it's your money you risk. Better calculate the best spot to enter when a potential loss would be minimized. Again : respect your stop and don't move it "cherishing hopes".

Tip #15 : Overlapping Market Hours
Trade currency pairs in respect to their active market hours. Learn about overlapping market hours : when two markets are open and highest volume of trades is conducted. For example, Australian and Japanese trading sessions are overlapped from 8pm to 1 am EST. At that time trader can successfully trade AUD/JPY currency pair.

Tip #16 : Choosing Right Day
Choose the right day to trade. This recomendation is often wrongly taken as an optional thing, because everyone knows that Forex market is open 24 hours a day 7 days a week. Yet, choosing the time to trade can make a difference between successful and hopeless trading.

It's proved and highly recommended not to trade on Mondays, when the market has recently awaken and is making first "probation steps" to form a new or confirm a current trend ; and on Fridays afternoon, during the huge volume of closing trades. The best days to trade are Tuesdays, Wednesdays and Thursdays.

Tip #17 : Fibonacci Levels
Learn about Fibonacci levels and how to use them for trading. Fibonacci can be very helpful in trading, even partially using the study, for example, to determine the best exit, can bring traders to a new edge of trading.

Tip #18 : Signaling Bar
Always ensure that a signaling bar/candle on the chart is fully formed and closed before you enter a trade. A golden rule of trading : "Always trade what you see, not what you would like to see" is the best explanation here.

Tip #19 : Live Trading Signals
If you ask for someone else's advice as about how and when to trade, in other words, choose to rely on live trading signals from other traders, make sure you do it for your benefit, not for disaster. If you use such signals to discover how other traders do analysis and study on the price — you are on the right track and soon you'll be able to do analysis yourself. But if you're just blindly following recommendations and your only task is to push the correct button ... think again.

Tip #20 : Leveraged Account
Using a highly leveraged account comes at a cost. It will, of course, give a trader more financial gear to trade, and also trader's broker will be happy as it will mean higher spread income for him. On the other side a trader signs up for additional risks that multiply with higher leverage in a "friendly tight" proportion.

Tip #21 : Measure Trading Success
Learn to measure trading success by the end of the day, week and then month and year. Do not judge about your trading success on a single trade. To be successful traders don't need to win every trade, they also don't become rich in one trade — they need to be profitable in a long run.

Tip #22 : No Secret Approach
There is no such thing as a secret approach to understanding the market. Take the time to develop a solid trading system and find out that the secret to trading success lies in hard work and constant learning.

Good Luck !
To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

6 Forex Trading Tips for Newbies

6 Forex Trading Tips for Newbies

You have decided to be a trader in the Forex market, and you have no idea on how to begin. Let's first start by defining what the Forex market is and what it does.

The term "FOREX", also known as the FOReign EXchange is a market for the sale and purchase of all kinds of currencies. It originated in the early 1970's when floating currencies and free exchange rates were first introduced. At this time, the Forex market traders were the ones who set the value of one type of currency against another.

Nowadays, the market forces determine the value of a currency against another. One unique aspect of the Forex market is that very little trading qualifications are required of anyone intending to trade therein.

Independence from external control ensures that only the market forces influence the currency prices. As the largest financial market, with trades reaching up to 1.5 trillion U.S. dollars, or USD, the money moves so fast, it’s impossible for a single investor to substantially affect the price of any major foreign currency.

In addition, unlike any stock that is rarely traded, Forex traders are able to open and close any positions within seconds, because there are always a number of willing buyers and sellers.

1. ) The first thing you need to do is open a Forex account. You will have to fill an application form which includes a margin agreement stating if the broker will be allowed to intervene with any trade when it appears too risky. Since most trades are done using the broker's money, it is only logical that he protect his interests. However, once you have established an account, you can fund it and begin trading in the Forex market.

2. ) Adopt a trading strategy, that has proven to be successful for you. Remember that strategies will work differently for different traders, so don't try to adopt a strategy that works well for another trader. It might backfire on you. The two available approaches are either Technical analysis or Fundamental analysis. A combination of the two is a more preferred choice for experienced traders.

3. ) Understand that prices move by trends. Forex has a popular saying, “The trend is your friend.” There are certain movements that have been studied over many years in order to identify a pattern in the trend. These trends need to be understood in order to understand a good trading strategy. For small accounts that are $25,000 and under, trading with a trend may help improving your odds when compared to bi-directional trading. Most newbie’s will look to trade in any direction, when they should be trading with a trend.

4. ) Ensure you know which are the top five currencies pairs in the foreign exchange. These are USD/Yen, Swiss franc/USD, Euro/Yen, Euro/USD and Pound/USD.

5. ) For newbies, it is advisable to maintain two accounts to ensure you learn to play the trading game. Keep one real account, one that you will actually use to trade real money ; and the second account should be a demo, one that you can use to test alternative moves in the trading game. You can easily use your demo account to shadow the trades in your real account so you can widen your stops to see if you are being too conservative or not.

6. ) Always examine the one hour, four hour and daily charts that concern your trades. Although you can trade at 15 and 30 minute time intervals, doing so requires a handful of dexterity.

Good luck !
To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Forex - Putting The Odds

Forex — Putting The Odds

How does an investor set themselves up for success when thinking about a market as large and volatile as the Forex ?

Also known as the Foreign Exchange market, the Forex allows investors to speculate on the movement of currency exchange rates between different countries. It is impossible to accurately predict the movements of the market all the time but many of the top investors maintain that there are ways to increase your odds of anticipating market fluctuations and capitalizing from them. Here are just a few ways to enhance your chances for success with Forex technical trading :

* Only trade at end of day
* Avoid over-trading
* Do not read FX reports
* Backtest, backtest, backtest !

All investors are tempted to believe that they must constantly be "in the know" or risk getting caught out of position. Thus, these dedicated investors may sit in front of a computer screen all day and monitor their investments for fluctuations. For those living in North America, the end of the business day is 5p.m. EST or 2 p.m. on the West coast and this really is the best time to consider trading — and note the word consider !

At the end of the business day, there are two factors in your favor :

First, traffic tends to be down so there are fewer chances for price fluctuations.

Second, if you wait until the end of the business day, then you can look at information flowing in from the East to help guide your decisions.

Over-trading is basically like going back and back to a casino thinking your odds are actually improving — because they are not !

Over-trading increases your chances of jumping into a position too late and getting burned or out of position too early and missing out on profits. Put stops in place that can safe guard you from losing more than you can afford — and then let them alone and relax !

Reading what someone else says about the outlook on the market is going to do one thing : cause you to question your strategy. None of us are going to get it right every time and no one can predict the future, so reading those reports can only harm, not help, once you have purchased a position. If you are going to read those reports, do so before buying in — after that, just leave them be.

Investors buy and sell positions based upon their theory of the market and where a particular currency pair is headed. While you should not change your stops while already having a position, you can certainly continue to test your theory by backtesting. People capitalize in the Forex market by identifying trends and buying a position on that trend and riding it for as long as possible. Continuous backtesting helps investors hone their theory and better identify trends quickly and take advantage of them for profit.

The Forex market may be the largest and most volatile — but it also holds the greatest potential for profit. The few tips listed above will help ensure your success in Forex trading and they will greatly enhance your odds of success. Be sure to review them carefully !

Good luck !
To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Why You Can Become Wealthy From Trading Forex

Why You Can Become Wealthy From Trading Forex

Forex Trading has long been touted as a method to Financial Freedom. Is Forex trading as difficult to become involved in as some might have you believe ? Find out how and why you can become wealthy from trading Forex.

For those of you not familiar with Forex Trading, the goal is to profit by moving foreign currencies around. It's a method of investing in international market currencies and it's all about why you can become wealthy from trading Forex.

As more and more people become familiar with how and why you can become wealthy from trading Forex, the popularity of it grows and more and more people jump on the bandwagon. It's avery lucrative and exciting business that can bring wealth to those who get involved. And you can take part from the office, home, and from any country in the world.

There are no time constraints - buy and sell 24 hours a day. It's all done electronically so there are no time constraintsand, it's just another reason why you can become wealthy from trading Forex.

Forex Trading is both difficult and easy to get involved with. It takes a bit to get the hang of it, to understand that it really isn't a game of chance and that there are some proven strategies and that's why you can become wealthy from trading Forex.

What Forex requires is discipline, commitment, a choice of a trading system. As a trader, you have to be able to cut your losses when they are small and when things are doing well you reap the profits. These are very important pointers when it comes to being a Forex trader and it is the secret to success and why you can become wealthy from trading Forex.

If you get in and out of trades in a short period, you reduce your risks which is why many have turned it into a day trading event. There are time honored traditional strategies like swing trading and position trading both of which reduce your risk and that's why you can become wealthy from trading Forex.

Cutting edge technologies with the internet allow you to view real time information and currency prices and it is all for free. Your dream of independence is just a few clicks away. You can make a full time income all from the comfort of your home. That's why you can become wealthy from trading Forex.

Good luck !
To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

A Forex Primer — Forex 101

A Forex Primer — Forex 101

The Forex — or Foreign Exchange — market is the largest, most fluid investment vehicle the world has ever known. Nearly two trillion dollars are exchanged each day across a vast network of computers found in central banks, investment banks, hedge funds, and brokerage firms around the world. This is the most fluid market in the world because it operates 24 hours per day Sunday through Friday afternoon when it shuts down completely.

Around clock trading means that you rarely have problems with gaps ( difference between what commodity closes at and what it opens at the following day — in stocks, the gap can sometimes be devastating ), this never-ending array of profit-making opportunities can sometimes lead to over trading — a very costly mistake because it often defies the logic of most Forex investment strategies and often leads to missed opportunities to maximize profit.

Traders in the Forex operate in units known as "lots". A lot is the equivalent of $100,000 ( unless you opt for the "mini" lot ) and you are essentially trying to predict how the exchange rate between two currencies will fluctuate in the future. While there are literally dozens of potential pairs, the six main players in the Forex are :

* U.S. Dollar
* Euro
* Swiss Franc
* Japanese Yen
* Canada Dollar
* British Pound

International corporations and nations must exchange currency to help finance payroll, secure resources, pay vendors, support infrastructure, etc ... This constant exchange of money is done based on a rate that fluctuates due to a variety of factors, including :

* Psychology — fear, greed, and other emotions play a large role in the markets and can sway rates dramatically ; however, human emotions have always influenced the markets making them predictable based upon enough data and proper analysis.

* Current Events — with a 24-hour news cycle, events from around the globe can quickly influence exchange rates and cause substantial price fluctuations. If investors allow fear ( emotion ) to affect their decision-making, then a "sell-off" panic can set in and artificially deflate exchange rates. However, the "sell-off" and panic may have been predicted if caused by historically relevant factors that triggered a similar trend in the past. Doing your homework is a good way to judge if current events are truly relevant to the true exchange rate before deciding to sell.

* Government Reports — Many analysts gauge the economy and the way exchange rates are trending by a number of reports released by the government on a periodic basis by a variety of agencies. GDP, the prime rate, unemployment figures, consumer confidence, and many other reports have been known to play temporary roles in the exchange rates between nations.

Many investors in Forex use margin to secure lots and you can typically secure 1-$100,000 lot for as little as $1,000. It is not very likely in this day and age of advanced technology and rapid connections for you to lose more than your investment — the account will typically be shut down automatically when it becomes negative but be sure to check with your broker. Small fluctuations in the market can make a big difference for those that are highly leveraged so it is best to ask very carefully about the potential risks when thinking about this option.

While there is no central exchange for Forex traders to congregate, the market remains a great place to seek opportunity and profit. However, be sure to research any investment carefully — especially for hidden costs.

Brokers are not paid a traditional commission — they are actually paid the difference between the bid and ask price on orders so make certain that all decisions are made only after careful research.

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Begin Forex Trading

Begin Forex Trading

The object of Forex trading is to determine the rise and fall of the value of a particular currency and trade when a profit can be made.

To learn to trade Forex, investors should select a well-developed and comprehensive program that, at minimum, explains how to :

* Understand the logic behind Forex trading

* Recognize and capitalize on market trends

* Minimize risk and protect open positions

* Build a consistent and valuable portfolio

* React to major economic events impacting global currencies

Review and know the basics.

* What does margin mean ?
* What about types of orders ?
* Or bid/ask ?
* Rollover ?

The more you know the better off you are.

Another important concept to know about is the two important approaches to analysis. These are technical and fundamental analysis. To increase the odds of success, you should understand both of these methods and how to properly apply them.

You will want to belong to at least one forum for Forex traders where members chat about anything related to the Forex market and trading. However be aware that just because someone posts in a forum does not mean he is an expert.

If you are going to choose a Forex training course or program, it is important to do your research. Not all of these programs are equal. Nor will each best suit your individual needs and style.

Often these programs do not go beyond the basics. While basic concepts and a solid foundation are vital, these are not going to be where you will see your results.

Trading the Forex market is not an easy task. A lot of hard work is required. If you do your work and learn a foundation of information to trade on you may gain true financial rewards.

A number of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money. While you won't make any money in the trial accounts if you do well, it is just pretend money essentially, but with the real market conditions.

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Three Simple Forex Trading Strategies

Three Simple Forex Trading Strategies

No one ever said that trading success was easy. It takes time and you need to know and understand your market, as well as have a good bit of self control. These three simple Forex trading strategies will help keep you on track.

If someone tells you that you can continuously make money in a foreign exchange market, they are either lying or they have no idea about the market they talk about. Foreign exchange has always been a volatile market and it still is today. Add trading on margin and the volatility goes up even more. But three simple Forex trading strategies can keep you in the green.

For you to make successful trades you need to understand and take into account the data and then make an informed decision based on your understanding and what you expect from the market. Just three simple Forex trading strategies will make all the difference to you.

Never trade with money unless you can afford to loose it

Trading on Forex markets is speculative and don't let anyone tell you differently. That means losses can occur. It's also exiting and somewhat addictive and the more you get involved the harder it is to clearly see what the right thing is to do. These three simple Forex trading strategies will certainly help keep you on track. Trading on Forex should enhance not hurt your life.

One of the keys to the three simple Forex trading strategies is to know your exit strategy. You should also determine what time frame you are making your trades on. What is it you want to get out of your money and the market ? Sure you enjoy the thrill of the hunt but you really need to have a time frame and a goal of where you are going.

Use your three simple Forex trading strategies to do what the pro traders do. 9 and 14 RSI are the most common trend lines and then there are 9, 20, and 40 day moving averages. The closer you want to get to where the pro traders do the more precise your calculations for your estimates are going to have to do.

These three simple Forex trading strategies are just a start to the strategies available to try. If your life needs a little excitement and you could use a few extra dollars do give Forex trading a try.

Let these three simple Forex trading strategies be your guide.

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Make Money with Currency Trading

Make Money with Currency Trading

For those unfamiliar with the term, FOREX ( FOReign EXchange market ), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains.

Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

How FOREX Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon ( 00:00 GMT on Monday to 10:00 pm GMT on Friday ). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers ( some of which can be found online ). It is quite common practice for investors to speculate on currency prices by getting a credit line ( which are available to those with capital as small as $500 ), and vastly increase their potential gains and losses. This is called marginal trading.

Marginal Trading

Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.

EXAMPLE :

You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. ( Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro ( in Dollars ) is about 70 to 100 pips. )

When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

Investment Strategies : Technical Analysis and Fundamental Analysis

The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis.

This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are : that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions.

This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Make Money with Currency Trading on FOREX

FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain.

So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Forex ? What is it ?

Forex ? What is it ?

The market

The currency trading ( FOREX ) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover.

Markets are places to trade goods. The same goes with FOREX. The Forex goods ( or merchandise ) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.

How does one profit in Forex ?

Very simple and obvious : buy cheap and sell for more ! The profit is generated from the fluctuations ( changes ) in the currency exchange market.

The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100 ! For example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment ! Such can happen in one business day, or in a few hours, even minutes.

Moreover, you cannot lose more than your "margin" ! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.

You can implement your choice ( the pair of currencies, the volume amount ) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down : you can always decide to buy Euro and sell dollar, or vice versa - buy dollar and sell Euro. You don't have to physically possess certain currencies in order to perform "buy" or "sell" with them.

How do I trade Forex ?

You select the pair of currencies with which you wish to make a Forex deal. You determine the volume ( the amount of the deal ). You deposit the "margin" ( collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say : 1% or 1:100 ).

Before you finally activate the deal, you can still "freeze" it for a few seconds. That enables you to either change the terms, or accept it as is, or altogether regret the whole idea.

When your Forex deal is running ( you hold an "open position" ), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it ( and cash the profit, if any, or minimize the loss, if any ).

Forex trading involves substantial risk of loss, and may not be suitable for everyone.

Good luck !
To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Forex Currency Trading

Forex Currency Trading

What is FOREX ?

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

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

What currencies are traded ?

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

Where is the Forex market located ?

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

Who can trade in the Forex market ?

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

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

When is the Forex market open for trading ?

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

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

What is a trading margin ?

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

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

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

How much does it cost ?

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

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

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

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

For more information on Forex Trading, please visit at http://www.forexcurrencytradingguide.com

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Benefits of FOREX Trading

Benefits of FOREX Trading

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

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

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

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

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

FOREX trading differs from other types of trading from availability and liquidity to fees and various restrictions. First of all, global FOREX trading is possible around the clock, five days a week, as opposed to the limited trading hours that other markets impose.

Secondly, there is no threat whatsoever that liquidities might dry up after market hours, since currency exchange transactions are required to continue in order to facilitate world commerce. Moreover, global FOREX trading is commission-free, unlike other markets where traders are required to pay all sorts of fees, such as clearing fees, government fees, exchange fees, and so on.

Last but not least, there are no restrictions as far as account balances are concerned ( they are very low ), and accounts can be opened with minimum deposits.

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

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

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Using Technical Indicators In Forex Trading

Using Technical Indicators In Forex Trading

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

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

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

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

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

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

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

Conclusion

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

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore

Forex Trading

Forex Trading

The ultimate commodity is Currency. When a company or a government sells or purchases products and services in a foreign country, they are subject to the foreign currency trade, which is the exchanging of one currency for another.

Organizations and people can also trade currencies for merely speculative purposes. The foreign currency exchange market is the largest financial market in the world, also known as "forex" or "fx" market. The forex market is larger than all the U.S. stock markets combined. The forex market has a daily trading volume that is larger than that of all the world's stock markets put together.

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

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

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

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

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

To Your Success

Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignatureforex.blogspot.com
Singapore