Reasons to Choose Forex over Stocks

Reasons to Choose Forex over Stocks

No Middlemen

Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money. The cost can be either in time or in fees. Spot currency trading does away with the middlemen and allows clients to interact directly with the market-maker responsible for the pricing on a particular currency pair.

Forex traders get quicker access and cheaper costs. Buy/Sell programs do not control the market How many times have you heard that "fund A" was selling "X" or buying "Z" ? Rumor had it that the funds were taking profits because of the end of the financial year or because today is "triple witching day", all as an explanation of why this stock is up or the market in general is down or positive on the session.

The stock market is very susceptible to large fund buying and selling. In spot trading, the liquidity of the Forex market makes the likelihood of any one fund or bank to control a particular currency very slim. Banks, hedge funds, governments, retail currency conversion houses and large net-worth individuals are just some of the participants in the spot currency markets where the liquidity is unprecedented.

Analysts and brokerage firms are less likely to influence the market Have you watched TV lately ? Heard about a certain Internet stock and an analyst of a prestigious brokerage firm accused of keeping its recommendations, such as "buy" when the stock was rapidly declining? It is the nature of these relationships.

No matter what the government does to step in and discourage this type of activity, we have not heard the last of it. IPO's are big business for both the companies going public and the brokerage houses. Relationships are mutually beneficial and analysts work for the brokerage houses that need the companies as clients. That catch-22 will never disappear.

Foreign exchange, as the prime market, generates billions in revenue for the world's banks and is a necessity of the global markets. Analysts in foreign exchange don't drive the deal flow, they just analyze the forex market. 8,000 stocks versus 4 major currency pairs. There are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ.

Which one will you trade ?

Got the time to stay on top of so many companies ? In spot currency trading, there are dozens of currencies traded, but the majority of the market trades the 4 major pairs. Are'nt four pairs much easier to keep an eye on than thousands of stocks ?

I'd say so. Thats why you should dive in now and get your copy of the forex killer software. It will help you to open up this great money machine called Forex for you !

Good Luck !
To Your Trading Success

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

Order Types in Forex

Order Types in Forex

There are some basic order types that all brokers provide and some others that sound weird. The basic ones are :

Market Order

A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's ( kinda ) like using their 1-Click ordering. You like the current price, you click once and it's yours ! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.

Limit Order

A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 ( at which point you would click a buy market order ), or you can set a buy limit order at 1.2070 ( then you could walk away from your computer to attend your ballroom dancing class ).

If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price at which you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active ( GTC or GFD ).

Stop-Loss Order

A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long ( buy ) EUR/USD at 1.2230.

To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss ( eww ! ).

Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.

When using the Forex Killer Software, we will always place stop loss orders ... To close a potentially loosing position early, while we let the profits ride. Download Forex Killer Software from here now.

Good Luck !
To Your Trading Success

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

Trading in Foreign Exchange Market

Trading in Foreign Exchange Market

In the FX market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple : the mechanics of a trade are very similar to those found in other markets ( like the stock market ), so if you have any experience in trading, you should be able to pick it up pretty quickly.

The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold. An exchange rate is simply the ratio of one currency valued against another currency.

For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar. How to Read an FX Quote Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another.

Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar : GBP/USD = 1.7500 The first listed currency to the left of the slash ( "/" ) is known as the base currency ( in this example, the British pound ), while the second one on the right is called the counter or quote currency ( in this example, the U.S. dollar ). When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound.

When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.7500 U.S. dollars when you sell 1 British pound. The base currency is the basis for the buy or the sell. If you buy EUR/USD this simply means that you are buying the base currency and simultaneously selling the quote currency. You would buy the pair if you believe the base currency will appreciate ( go up ) relative to the quote currency. You would sell the pair if you think the base currency will depreciate ( go down ) relative to the quote currency.

Sounds complicated ? It really is easier than you think. When you decide to go for the forex-killer software you will get an exact step by step instruction pdf manual.

The software tells you what to buy and when to buy it. Basically you would not even need any information at all but its always good if you actually know what you are doing Download the software here and start making money today.

Let`s move on ...

Long/Short First, you should determine whether you want to buy or sell. If you want to buy ( which actually means buy the base currency and sell the quote currency ), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position".

Just remember : long = buy. If you want to sell ( which actually means sell the base currency and buy the quote currency) , you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell.

Bid/Ask Spread All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price. The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you ( as the trader ) will sell. The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy. The difference between the bid and the ask price is popularly known as the spread.

Let's take a look at an example of a price quote taken from a trading platform : Forex Spread On this GBP/USD quote, the bid price is 1.7445 and the ask price is 1.7449. Look at how this broker makes it so easy for you to trade away your money. If you want to sell GBP, you click "Sell" and you will sell pounds at 1.7445. If you want to buy GBP, you click "Buy" and you will buy pounds at 1.7449.

In the following examples, we're going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don t worry !

We will cover fundamental analysis next. For right now, try to pretend you know what s going on EUR/USD In this example Euro is the base currency and thus the basis for the buy/sell. If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar.

If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar. USD/JPY In this example the US dollar is the base currency and thus the basis for the buy/sell. If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order.

By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

Good Luck !
To Your Trading Success

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

The Advantages of Forex Over Other Finanical Instrument

The Advantages of Forex Over Other Finanical Instrument

Why Trade Foreign Currencies ?

There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market :

No commissions
No clearing fees
No exchange fees
No government fees
No brokerage fees

Brokers are compensated for their services through something called the bid-ask spread.

No Middlemen

Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.

No Fixed Lot Size

In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your own lot size. This allows traders to participate with accounts as small as $250.

Low Transaction Costs

The retail transaction cost ( the bid/ask spread ) is typically less than 0.1 percent under normal market conditions. At larger dealers, the spread could be as low as .07 percent. Of course this depends on your leverage and all will be explained later.

No Waiting for Opening Bell

A 24-hour market. There is no waiting for the opening bell - from Sunday evening to Friday afternoon EST, the Forex market never sleeps.

This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade - morning, noon or night. No one can corner the market. The foreign exchange market is so huge and has so many participants that no single entity ( not even a central bank ) can control the market price for an extended period of time.

Leverage

In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies.

Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. But leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

High Liquidity

Because the Forex Market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will. You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position at your desired profit level ( a limit order ), and/or close a trade if a trade is going against you ( a stop loss order ).

Free Demo Accounts, News, Charts, and Analysis

Most online Forex brokers offer 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free! These are very valuable resources for poor and SMART traders who would like to hone their trading skills with 'play' money before opening a live trading account and risking real money.

Mini and Micro Trading

You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn't. Online Forex brokers offer "mini" and micro trading accounts, some with a minimum account deposit of $300 or less. Now we're not saying you should open an account with the bare minimum but it does makes Forex much more accessible to the average ( poorer ) individual who doesn't have a lot of start-up trading capital.

With the Forex Killer Software at your fingertips you can start trading with 1000 usd or even less. Just keep in mind that more capital will minimize the risk of loosing + give you greater profits.

Best wishes my friend and make it a wonderful day !

Good Luck !
To Your Trading Success

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