Tuesday, March 24, 2009

All About Forex Trading

Forex trading, short for foreign exchange trading, involves the buying and selling of the many currencies of the world. It does not operate via a central exchange site, like traditional stock market trading, and may, thus, fully function a 24-hour basis.

When compared to other exchanges, the trading market is the largest in the world, even beating the New York Stock Exchange (NYSE) by over a hundredfold, in terms of daily trading volume, most of which are conducted by private entities and individuals.

Because of the absence of a central exchange, trading happens between two parties directly. Buyers and sellers communicate and trade via the phone, the Internet or other communications networks worldwide.

In addition, trading forex is also speculative, meaning, they are based on expectations on whether a certain currency would rise or fall, depending on current market conditions. It is risky business, but the returns have often proved themselves worth the risk.

Basic forex trading

Forex trading involves the buying and selling of two currencies at the same time. This combination is often dubbed a cross, because it occurs between two moneys; for instance, the US dollar/Japanese Yen. The highest traded currencies in forex are the US dollar, the euro, the Japanese yen and the UK pound - the "majors".

Trading normally occurs in the spot market, which is the largest because of its volume. Here, trades are made and completed directly and on the spot. You don't have to wait too long to settle.

Advantages of forex trading

1. No 4pm trade closing time.

When you're trading forex, you have 24-hours to do so from Sunday night to Friday night. This opportunity allows you to retract your moves and react immediately when a currency suddenly goes up or down. Breaking news are vital to trading.

2. Very liquid.

It is easy to convert your trades to cash in the market, especially if yours involves one of the majors. The high liquidity helps ensure that spreads are narrow and prices are stable throughout the period.

3. Strong potential for profits

This is particularly true with falling currencies. Because trading involves two currencies, when one rises, the other naturally falls. When a currency depreciates, it could be the perfect time to buy into it so that you can sell it for a hefty profit when it's its turn to appreciate.

4. The higher the currency's liquidity level, the cheaper it is to trade it.

This is why most forex trading patrons opt to trade majors, because they have the highest liquidity. In addition, trading is also more attractive to some money movers because of the absence of a commission. Thus, currencies are actually traded for their real merits and not because they come with misleading incentives.

There's a lot more to learn about trading and the above merely scratches the surface. To be able to further understand what forex trading is and how it can help you grow your coffers, it is advised that you speak to an expert who more likely has all the answers to your questions. Or, yet, ask somebody who's already had experience with forex trading.

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Treasury Secretary Timothy Geithner testifies on Capitol Hill in Washington, Tuesday, March 24, 2009, before a House Financial Services Committee hearing on AIG.  (AP Photo/Pablo Martinez Monsivais)Reuters - The Obama administration on Tuesday mounted a full-scale push for government authority to shut down troubled institutions like insurer AIG to avoid the need for future bailouts.

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Friday, March 13, 2009

Day Trading - What's it Really All About? Choices That Lead to Stellar Success and Unlimited Wealth

There's an old Buddhist saying, As within, So without.

You may think its all about the charts, the fundamentals, your system and the unprecedented world economy, but haven't there been times when you sensed there was something more to it?

Me too. Being tuned in to all that is what separates the super traders from the guys who are second mortgaging their home hoping to make a come back.

Aside from the obvious, not putting too great a percentage of your overall nugget in any one trade, how does one keep the emotional element out of decision-making? Is this emotional element the same thing as your gut feeling? It's easy to confuse the two and it's well worth learning to discern the difference.

Keeping notes is critical, but not just about the numbers. Taking time to notice your own patterns is invaluable in the long run if there is to be a long run.

Over-confidence can be just as deadly as under-confidence. And playing when you really don't have the juice to, but feel like you need to can also have its consequences,

There really aren't a lot of women out there trading, not relatively, so for a long time I thought it was only because I had focused on my inner work for so long that I was naturally using my trades as way of flushing out my deeper issues---resistance to having more than enough or the compulsion to keep trading when I had already done well enough for the time being.

But then I attended one of those weekend workshops with the best of the best. And on the very first day my trading coach said, the market is mirror---a stark mirror.

That, to me, was worth the price of admission!

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This undated photo released by the Metropolitan Corrections Center(MCC) shows a cell at the New York facility similar to the one where disgraced Wall Street financier Bernard Madoff was sent to. Madoff awoke Friday -- at 6:00 am on the first day of his new life as Prisoner 61727-054 after pleading guilty to massive fraud.(AFP/MCC-HO/File)Reuters - Investors are dubious that Wall Street's best week since November means the stock market has found a bottom.

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Wednesday, March 11, 2009

Confident Trading Tactics

I wanted to take the time to share with you some confident trading tactics for forex. This is a great business with over three trillion dollars a day in trades. That makes it the biggest in the world and potentially the most profitable. The most amazing part about this business is that it acts completely independent of world recessions and economic downturns. Profits sum down to a ratio in difference between currency and that is how we make money.

I think the most important thing you need to understand when you're looking for a trade is that the buy price is completely useless. As consumers in a grocery store, we look for the cheapest price and when we find it, we're happy. This is different. We're not consuming money, we're trading it. This means that the cheapest price isn't necessarily the best trade. You don't make one cent of profit until you exit the trade. That means the sell price is the most important thing. So when you're looking for a good trade to make, always look for the exit prices, than compare it to the original cost and you can now determine if you have a good buy.

When you get confident, sometimes you get overconfident. The way you can tell this is if you feel too invincible. You feel like every trade will just workout in your favor. This is a poor state of mind because you're going to let down over and over again. Confidence is one that exists in reality and it knows the limitations. Remember, that is what you're striving for.

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The FTSE 100 index slipped marginally Wednesday, shedding 0.58 percent to close at 3,693.81 points.(AFP/File/Ben Stansall)AFP - The FTSE 100 index slipped marginally Wednesday, shedding 0.58 percent to close at 3,693.81 points.

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Sunday, March 8, 2009

Currency Trading Basics - Think You're Ready To Trade? Check These Points

Here we are going to look at some currency trading basics in relation to points to consider before you start trading. They cover basic errors which most traders make so to avoid being in the 95% of losers check them out.

1. Are You Putting Your Faith in a Forex Robot?

Most novice traders I speak to put their faith in a forex robot they have bought. The track records look great but check the small print there all "simulated in hindsight" that means knowing the closing prices and on paper only - not real money so they don't indicate profits as anyone can make profits knowing the future!

If you think this is way to make money its time for re think.

2. Are You Going To Day Trade?

Very popular again but day trading and scalping is sure fire way to wipe yourself out. I know there are lots of track records for day trading systems - but like the robots comment above, there all "simulated in hindsight".

All volatility within a day is random so you can't win.

3. Have you made money in a demo account?

If you have don't assume you will make money in real time - why?

Because there is no pressure and without pressure, it's not real experience.

Trading with money online, involves pressure and lots of it.

4. Do You Intend Trading News Events?

If you do think twice - I saw a whole course devoted to non farm payroll and how to trade the number and that's madness. News is discounted instantly and you have no way of knowing which way prices are going to go - it depends on sentiment and that can't be judged on single event.

Never trade individual news events or the news stories, sure the stories are convincing - but that's all they are stories.

5. Are you going to Base your strategy on prediction?

Lots of traders love this idea predicting in advance with science. They follow such "legends" as Fibonacci, Gann and Elliot who use scientific formulas and of course their not scientific - if they were they would work all the time and they don't.

Markets don't move to science. Leave these to the far out crowd and trade on the realty of price change. Try and predict and your predictions will be as accurate as your horoscope.

6. What's Your Edge?

These are the reasons why you are going to win when 95% of traders lose.

It doesn't matter what it is but you must have confidence in it and know why he sets you apart. Don't know what it is?

Then you don't have one and its back to your forex education until you do.

I have been teaching trading for 25 years and its surprising how many people give you a blank look when you ask them what their edge is. It really is vital to know and if you don't your in the 95% of losers.

The reason most traders lose is through believing myths or wanting easy money and you need to avoid this.

Trading is an odds game and if you can get a method to trade the odds you can win. There is no other business where you can make so much money in terms of effort you put in and sometimes it can even be life changing - but you need to get an edge so, learn and get one and you will be well rewarded.

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Reuters - Goldman Sachs' chief executive said he opposed the full nationalization of banks, but thought government stakes could be sensible in extreme situations, in an interview with German weekly Welt am Sonntag.

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Wednesday, March 4, 2009

Trade Forex - Strategies For Forex Trading

Currency trading has a great potential to gain from home. It is a excellent business opportunity and I wanted to spend some time to talk about some of the strategies for currency trading. Consider all the money you spend related to your job and with currency trading you do not have to worry about it. It runs on complete autopilot. All you will need to do is fund the account and the software will make all the trades. Forex Trading can be a side income job or you can just buy multiple software's that work and make it your full time job. But you won't even have to work!

Learn how to let things go: Sometimes you might have unsuccessful trades. Due to these bad trades you had, some people might curse themselves and others might curse you. You might also have successful trades, but whatever the result is, you have to let it go. Don't think about the trades that are finished, don't be so emotional, this will lead to making a worse trade next time. You have to learn to let it go and move on and this will help you a lot.

Be Technical: You should not be relying on your emotions to make decisions. Look at currency and other technical information to do it. Sometimes you will feel that you have to buy things regardless of what technicals tell you. This is very dangerous. What you feel is not always right. Most of the times, it is not based on technicals, but based on the success you had before. Thats why it would be smart to purchase a forex robot software.

Do you want the very best forex software? Well I have some good news for you, I bought and tested the top 7 forex software's and put a review of the top 2 on my website: ForexTradingReview.Info I made over 900 dollars a day with one of the softwares I bought. Just Imagine if you purchase a couple profitable softwares!

You have to be very careful when purchasing a software though. Some of the software's just sit around and never make you any money. If you want to make thousands every week with forex I suggest you take a look at the website: Forex Trading Review

In this March 2, 2009 file photo, Specialist Michael Sollitto works on the floor of the New York Stock Exchange. People are increasingly skeptical the government knows how to pull the nation out of its slump, and many have stopped listening to financial advisers reciting the conventional wisdom to 'stay the course' . (AP Photo/Richard Drew, file)Reuters - Stocks rallied on Wednesday, ending a five-day losing streak, as another Chinese stimulus package boosted commodity prices and encouraged investors to jump into energy and natural resource shares.

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