Forex Tips and Advice

– Your capital is at risk
Forex traders often use a system called technical analysis to help them decide when to buy or sell.  This system involves making calculations based on past prices over a period of time for the purpose of recognizing certain patterns in the price fluctuations.  Two of these patterns that traders often look for are the support and resistance levels, which represent high and low price values.  When the currency price nears one of these two levels a major price movement is likely to occur, and this information can be very helpful to a trader.  One way to calculate these levels is by using pivot points.

There are various methods that technical analysts use to calculate these levels using pivot points, but the most common is the five-point system, which is calculated by using the high, low, and close of the previous day along with two support levels and two resistance levels.  Since the forex system is a 24 hour market, traders generally use as the close the price at the New York Stock Exchange’s close time of 4:00PM.  The high and low is then calculated based on the trading period of 24 hours prior to this close, or from 4:00PM the previous day.  To start the calculation, one averages these three prices to determine the actual pivot point.  It is from this point that the two support levels and two resistance levels will be calculated.  To find the first resistance level, one multiplies the pivot point by 2, and subtracts the low.  The first support level is similar in that the pivot point is multiplied by 2, but this time the high is subtracted from the product.  The second set of levels are determined based on the first levels, as the second resistance level is calculated by adding the pivot point to the first resistance level, and then subtracting the first support level.  Finally, subtracting the first resistance level from the pivot point, and then also subtracting the first support level.

So you have determined two support levels and two resistance levels, but what do they mean?  These four levels are the most commonly used pivot point levels, and they provide a lot of information when looking at a chart of forex trading data over a period of time.  When the price of an investment fluctuates over a period of time, an up-and-down pattern is often developed, depending on the price volatility.  The support line can be considered a level where the price of the investment is not likely to go any lower.  When viewing a chart with support and resistance levels marked, one will often see the price “bounce” off the support line, as it reaches that point and then shoots back upward.  It is when the price does venture below the support level that a trader can anticipate a major price movement downward, and can act accordingly.

Just like the support line sets a floor for the price fluctuations, the resistance line sets a ceiling.  When looking at the same chart containing support and resistance lines, often the price of the investment will rise right up to the resistance line and go back down.  This pattern is usually repeated several times, until one day the price finally breaks free of the resistance level, most likely prompted by some positive development such as good economic news.  When this happens, the price can be expected to keep going up for a while, as a major pivot level has been breached.

Pivot points are used in the forex market by investors of all levels, including banks, professional traders, and mutual funds to help them determine when to buy or sell a particular currency.  By delving into the world of technical analysis, the individual investor can take advantage of the tools used every day by the pros.

– Your capital is at risk
Since the Euro entered the picture, the financial profile of Europe has seen huge changes.  The individual currency profile of all the different countries who would one day adopt the Euro were weaker than they are today with the Euro.  The first member countries to adopt the Euro have seen major changes in the value of their currency now that their currency is the Euro and not their former currency.  Prices have gone up on virtually everything, from real estate to restaurant food, but the spending power has also gone up, and the advent of the Euro certainly did not bring about any decreases in the spending of the citizens of member countries.

The spending patterns of the inhabitants of a country are a very good measure of the economic profile of the country’s currency.  The spending habits of Europeans are certainly changing; whether that is due part and parcel to the influence of globalization or the influence of Hollywood, well that could be debated.  In any case, the economic spending patterns are changing; many Europeans think for the worst as families begin to become more and more consumer-based.  Everything from cereal packaging to Christmas decorations are becoming bigger and bigger.

As everything becomes bigger and more European, spending habits are changing with them.  Instead of pushing consumerism away, most Europeans are joining the bandwagon as was done a few decades ago in America.  Right alongside their spending habits, the European currency is blossoming on a steady rate of incline.  At the Euro’s inception, a Euro was equivalent to a dollar.  After a short dip, the Euro has been on a pretty steady incline, blossoming into a true power currency alongside the British Pound.  Needless to say, the dollar has seen a considerable decline since 9/11 and the birth of the Euro.

Although the Euro is not static at one high rate of exchange or steadily increasing in value, the bottom line is that the Euro has proven to be a very hardy currency.  There’s absolutely no doubt about that.  Like the dollar has been known to always bounce back, so is the Euro coming to be known.  In fact, the Euro has not yet had to prove its ability to bounce back from a disaster; the Euro is too hardy to crash in the first place.  Though the EU was concerned to bring more Eastern European countries in on the Euro, the Euro has proven to be unflagging.

The Euro is one of the oft-targeted currencies in the Forex Trading market.  The Euro may be a very new currency, but it is based on the joining of a group of countries whose wealth has been around for centuries; the Euro is based in an economically solid region of the world.  The EU knew what they were doing when the currency was born; some people were skeptical, but they are now enjoying the financial benefits that the Euro has brought.

The Euro is a very good bet on the Forex market.  Many traders have faith in the Euro not only because of its good record (albeit short) but also because the Euro has a support network that not a lot of world currencies have.  If one country experiences some negative changes in their economy, the Euro is not necessarily affected because the value of the Euro is determined by such a vast network of countries.  A negative event in one place can be counteracted by a positive event in another country.  This means that the stability of the Euro is good.  For these reasons, the Euro should continue to prove to be a common choice on the Forex market.

– Your capital is at risk
The purpose of the foreign exchange market is to facilitate the trading of various currencies around the world.  Although many different types of currency are exchanged, the majority of trades involve only a small number of them, including the U.S. Dollar, Yen, Euro, Swiss Franc, Pound Sterling, Australian Dollar, and Canadian Dollar.  The U.S. Dollar is involved in over 90% of all exchanges on the forex markets.  Contrary to popular belief, there is no one centralized market in which all currency trading occurs; rather, the foreign exchange is a loose conglomerate of several different markets, each of which has its own rules and regulations.  Major markets are located in the U.S., London, and Tokyo, and each is open during different hours according to their time zones.  Naturally, trading is heaviest when the market hours overlap, and almost two thirds of the trading activity at the New York market takes place during the morning while the European markets are still open.

Because there is no centralized market, a single exchange rate for a given currency does not exist.  Because of the over-the-counter (OTC) nature of the markets, the bid and ask rates for a currency can vary among different geographic markets and market makers, although they are usually fairly close to each other.  Since the price of a currency must be given in relation to another currency, it is expressed in the form XXX/YYY, where each trio of letters represents the international currency code.  For example, the price of Euros in U.S. Dollars is written as EUR/USD.  Traditionally, the first currency in the pair, called the base currency, is always the one that was strongest when the pair was created, and the other currency is known as the counter currency.  The actual prices themselves are in decimal form, typically rounded to the nearest ten-thousandth of a unit.

The forex markets make up the largest marketplace in the world, with the equivalent of £1.9 trillion changing hands every 24 hours.  It is largely a short term, speculative market, with more than 40% of positions closed out before two days, and nearly 4 out of 5 lasting less than a week.  It is an extremely liquid market, much more so than equities, due to the many participants throughout the world and the very high daily turnover.  The top ten most active traders, however, account for nearly 73% of total trading volume.  Made up of international banks, these huge players provide the market with bid and ask prices that are far tighter than retail customers can expect, and trading activity that occurs between them is known as the “interbank market”.

Introduced in 1972 at the Chicago Mercantile Exchange, forex futures contracts are derivative instruments that are actively traded as well, as they account for around seven percent of total foreign exchange volume.  In addition, foreign exchange options have taken hold as a popular hedging strategy.  They represent contracts to buy currency at a certain price on a set day in the future, and investors often purchase these derivatives to offset any potential losses they may suffer due to the decline in price of a currency.  Another way traders are able to mitigate risk is through a swap, in which both parties agree to exchange one currency for another for a set period of time, and will then reverse the transaction after the period expires.

The foreign exchange market is a fast-paced, international currency exchange that is without rival among financial markets.  Its immense popularity among large banks, financial institutions, international companies, and even retail investors ensures that its growth will continue into the future.

– Your capital is at risk
The concept of automated Forex trading system is mind-catching.

Before the automation of the Forex market, exchange-traded futures market was the first to switch on automation. Then, the traders on the Interbank spot FX market decided to catch up with the latest trend and moved too to the new system.

Automated Forex trading system enables traders to execute their trade on spot Forex market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are various features included in the automated trading system, such as:

• Automatic trailing stops especially if the trader is losing in a particular trade position;
• Account equity management;
• Stop and/or limit orders;
• Discretionary market orders; and
• Various technical analysis indicators within your discretion for enabling trend-following systems.

Automated Forex trading systems supports most of the following indicators (the technical support will depend on the technology used as well as the available features of the system):

• WMA (weighted moving average);
• EMA (exponential moving average);
• SMA (simple moving average);
• VMA (variable moving average);
• TMA (triangular moving average);
• TSMA (time series moving average);
• WATR (wilder’s average true range);
• VHF (vertical horizontal filter);
• Standard deviation;
• Trailing stops;
• Mass index;
• Fixed limits and stops, and others.

The success of the automation process to the Forex market is attributed to several factors, such as the following:

• Its ability to perform or execute trades in real time. Because of the automation, a trader can close trades within a few milliseconds. It is impossible in manual systems, as previous trades are normally closed after several hours. In addition, there are also instances wherein a trader incurs several losses in a row that prevents him from making any fresh transactions. Thus, with automated Forex trading system, this problem could be avoided.

• Its ability to greater diversification. With automated trading system now in place, a trader can trade in various local as well as international markets within varying time zones. In other words, you can place trade or close deals with different traders from various markets around the world even at the middle of the night.

• Its ability to analyze short-term data. This feature is not available in manual trading system. Thus, traders using automated system have the bigger advantage since they can predict market trends in less than an hour.

If you will consolidate the features as well as the benefits of automated Forex trading system, it will give you a solid conclusion: with the Forex market on automation, you will be able to place more trades on a single day, thus increasing the average volume trades daily.

To further clarify the conclusion. Let us take the following scenario: If you are trading using the manual system, you will notice that it takes time before a trader confirms if he will accept your deal or not. He will look on the market condition first as well as the exchange rate of the currencies that you are trading with. Thus, if it takes time before a transaction will be finalized; there would be fewer trade volumes.

Now, if you are using the automated Forex trading system, the evaluation of exchange rates and market conditions could be done within a few minutes, since Forex data are now updated in real time. Probably after less than an hour, you will be able to take your position whether you will push through the deal or not.

If a Forex transaction per trader is averaging within an hour, a single trader can place as much as 8 trades within the regular trading hours (if he is following the day trading schedule) and additional trades beyond the regular trading hours. There are thousands of traders in just a single market who can place such average number of trade per day. Combining it with the number of Forex markets around the world, the figure is just huge enough.

In addition, the technology is changing continuously, thus there is a tendency that the average number of trades per day will increase, thus a possibility of increased trade volumes on daily basis. With faster trade execution, that is a certain possibility.

Be thankful, the Forex market is now at the helm of automation. Transactions are now faster, and earning money through Forex trading is now easier.

– Your capital is at risk
For-ex stands for Foreign Exchange; it is a global market for dealing currencies at floating exchange rates. The foreign exchange is world’s biggest currency market, on an average everyday dollar one to two trillion is traded in the foreign exchange. The trade is mostly done over the internet and telephone lines. Online forex trading is a fast, safe and easy mode of investing. It offers huge returns like twenty to thirty percent every month, yes unbelievable but truth, however that’s only in some cases and you need a lot of experience to be able to extract that amount of interest!

There is no fixed centre for the trade so all the trade is done over telephone, internet and fax. The foreign exchange trade witnessed a massive boom only after online forex trading systems were introduced, internet and telephone has helped the trade grow from $70 billion a day in the 80s to around $1.5 trillion to $2 trillion today.

The currency market is made up of around five thousand institutions most of which are international banks, central government banks, commercial companies as well as big brokers and all these are connected with each other and do business on the go through online forex trading system. The major centers for online forex trading are New York, Frankfurt, London, Paris, Tokyo, Hong Kong, Bombay among others, and all these centers also communicate and deal through online forex trading. The benefits of online forex trading are listed below:

– Currency market never sleeps: online forex trading allows you to keep track and deal from anywhere at anytime.
– Mini accounts: some websites offer mini accounts that allow you to get started with as less as $200.
– No Commission! – Online forex trading is commission free, there’s no exchange or hidden fee either. Your broker earns from the spreads.
– Instant: it’s instant unlike offline trade which may involve paperwork.

The nature of the market is such that risk comes inherent and can not be separated but risk can be minimized if you are trading at the right point of time and the right point of time can be anytime only online forex trading allows you to be there at the right time as all other methods as explained above are slow and usually take up a lot of time in processing.

– Your capital is at risk
Forex stands for the Foreign Exchange market, or Forex (FX). The foreign exchange market (FOREX) is the largest financial market in the world, with a volume of over $1.5 trillion daily in the US alone; more than three times the total amount of the US Equity and Treasury markets combined.

Traditionally, investors only way to gain access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment uses. Now because of federal rule changes, Forex trading is no longer a monopoly of the banks and investment houses, that means you too can enter and profit from the largest financial market in existence.

Forex trading is an alternative to the unpredictable fluctuations and ups and downs of the other markets. Trading is about making money and the opportunities in this market are boundless, they far exceed the slim pickings in the other markets.

Today, foreign exchange market brokers are able to offer small traders like you and me the opportunity to buy or sell any number of smaller money lots with the option to trade them at the same rates and price movements as the big players who once dominated the market.

You can start with as little as US $ 300 in your account, and you would be surprised to find out that trading currencies is far less risky than any other kind of trading. And that is why before long all the other traders won’t fail to discover the FX market and the immense wealth creation possibilities it has to offer. This is your time to get in one of the biggest, and most exciting, opportunities that has come along in decades, and you can learn forex trading strategies easily, there is even a free course “Forex Freedom” you can grab and start on your way to Forex profits.

Still need more reasons to give the Forex trading your full attention?
There are many different advantages to trading forex instead of futures or stocks:

1.Lower margin

The margin requirements that are needed for trading futures are usually around 5% of the full value of the holding, or 50% of the total value of the stocks, the margin requirements for forex are about 1%. For example, the margin required to trade foreign exchange is $1000 for every $100,000. That means trading forex, your money can play with 5 times as much value of product as a futures trader’s, or 50 times more than a stock trader’s.
When you are trading on margin, this can be a very profitable but it’s important that you understand the risks that are involved as well. Here is where a great Forex trading course comes in to help and support you all the way to real profits.

2. No commission and no exchange fees

When you trade in futures, you have to pay exchange and brokerage fees. Trading forex has the advantage of being commission free, which is much better for you. Currency trading is a worldwide inter-bank market that allows buyers to find sellers in an instant.

3. Limited risk and guaranteed stops

When you are trading futures, your risk can be unlimited. For example, if the price for an item falls dramatically, you can’t leave your position and this could wipe out the entire equity in your account as a result. If the price keeps falling, you have to find more money to make up for the deficit in your account.

4. 24 hours marketplace

With futures, you are generally limited to trading only during the few hours that each market is open in any one day. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another. Forex market operates 24/5. You can trade any time you like from Monday to Friday.

5. Free marketplace

Foreign exchange is perhaps the largest market in the world about $ 1,9 trillion and with the huge number of people trading forex around the globe, it is very hard for even governments to control the price of their own currency, the prices are fair.

6.You Can make money in rising and falling markets

There are no restrictions to sell currencies short, which means that with forex currency trading you can make money just as easily in rising and falling markets.

Forex trading is simply a great alternative to futures and commodities trading. Unless you are a broker, you will likely want to get some help in forex trading to help ensure that you are successful with it. As with all trading, there are always some risks involved, but if you follow the tips and teachings of people who made the Forex easy to trade, there is nothing which can stand between you and substantial profits.

Now I ma sure you have some questions like:

Where do you start?
Who would teach you the great profitable strategies?
Who would mentor you so your risks are minimalized?
Who would explain to you the special Forex terminology and its nuts and bolts?
Who would show you how to trade the Forex for profits working just a few hours the week?

The easiest way to get started is to get the free course “Forex Freedom” and study it carefully. You will see and feel the advantages of such an investment over all other kind of investments and you know you can start with as little as $300. Seize your chance now because it might be like having your own licence to print money on demand.

– Your capital is at risk
More and more people are beginning to hear about FOREX trading. FOREX stands for FOreign Currency EXchange Market. It was once available only to the large banks, multinational corporations, governments,and other financial markets and institutions; however it was de-regulated in 1997, and now anyone may participate.

Many with experience in stocks and/or commodities trading who have then discovered FOREX, prefer it for its many advantages over stock and commodity trading. Many who have never invested before are also now
successfully trading the FOREX market.

The FOREX market is open 24 hours a day, except weekends, so you can participate whenever you have time. Trading is now done online and transactions are almost instantaneous.

The FOREX market offers 100:1 leverage, so you can control large amounts of money on the market while using much less of your own money. You can start with a mini-account for as little as $300, and with a strategy, steadily build your account and confidence, until you can open a regular account. You can grow that $300 seed to substantially more money in 6 months with the right application of sound strategy. And, you can set the level of  risk you’re willing to accept; and you can do this with very minimal risk.

FOREX is the world’s largest, most liquid trading market. It is the best trending market, moving in the same direction (up or down) over 78% of the time, and you can learn to profit on either trend. Technical analysis works very well in this market, and there are many tools that aid in this.

Because most FOREX trading is focused on 7 major currencies, you have much less to learn than when trading stocks or commodities.  Of course you’ll want to learn as much as you can about FOREX, but this can be done to your satisfaction much sooner than you might think. There are many training courses and also lots of free information available on this subject.

FOREX trading is fun and challenging, and FOREX is quickly becoming one of the investing world’s hottest, most rewarding opportunities.

Learn more about FOREX, and take your wealth development into your own hands if you want to accumulate real wealth!

– Your capital is at risk
Forex or Foreign exchange has been more visible in many business portfolios ever since small investors were given a chance to join in the currency exchange realm. Even with the presence of pressure and the rigors of a day job, numerous traders still aspire to enter and profit from the Forex markets.

There are available Forex accounts that lets you practice your trading skills for 1 month without risk. There are quotes, currency pairs, technical charts and analysis and 24 hour news regarding your account. The amount of the mini practice account is $5,000 while the standard practice account costs $50,000.

The minimum investment in a standard Forex account ranges from $5,000 to $10,000.

There are different types of foreign exchange accounts and most traders keep two or more accounts while trading. These accounts are basically categorized according to how much capital a broker can invest. Generally there are three types of Forex accounts namely:

1. Mini account which is ideal for beginners who have an initial capital of less than $10,000. Basically, one is allowed to engage in Forex with just $250. Mini account can be a good starting point which can build up the confidence of new and less experienced traders in the market. With just a small capital, one should not expect a high profit; nevertheless your money is subject to low risks of loss.

2. Standard account which requires a trader an initial investment of $2,000.

3. Premium accounts with significant amounts of capital required. These accounts can have different trading services and tools for innovation.

With the presence of these kinds of accounts, it is worth pointing out that a good managed Forex account can do miracles in trading. A trader can gain much by choosing a managed account backed up with good track records. Aside from these facts, certain benefits are worth mentioning such as:

• Managed Forex accounts can let a trader participate in trading market without the hassle of monitoring it 24 hours.

• Managed accounts are handled by professionals

• There are managed accounts that are not attached to the stock market, thus assets can be more diversified.

• Greater profit maximization can be possible in both falling and rising markets.

• Assets are liquid and can be withdrawn regularly

• Monthly reports of account are accessible and there is a real time management of account.

Choosing a right account and investing in it poses a risk. It is important therefore to know what steps are to take in order to minimize. Here are the few things to remember when opening a Forex account:

1. In signing up for an account, identification is necessary; this is required by the Federal Law to avoid fraud. A trader will be asked to sign a margin agreement. Prepare the necessary documents and read the agreements thoroughly to avoid confusions.

2. Try the practice or demo account to learn the basics of trading. There are brokers who impulsively leap into trading and quickly lose their money. Take your time and learn how the trading process works.

3. Avoid being emotional while in a trade. Traders should stick to their decisions and not let their emotions control them.

Foreign exchange can be considered as the biggest and most interesting markets in the world. Certain individuals, even inexperienced ones get hooked on trading it. Before opening a Forex account, it is but necessary to be knowledgeable in all the aspects involved in trading.

– Your capital is at risk

Forex is a trading ‘method’ also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. The basics of forex are similar to that of the stock market found in any country, but on a much larger, grand scale, that involves people, currencies and trades from around the world, in just about any country.

Different currency rates happen and change every day. What the value of the dollar may be one day could be higher or lower the next. The trading on the forex market is one that you have to watch closely or if you are investing huge amounts of money, you could lose large amounts of money. The main trading areas for forex, happens in Tokyo, in London and in New York, but there are also many other locations around the world where forex trading does take place.

The most heavily traded currencies are those that include (in no particular order) the Australian dollar, the Swiss franc, the British pound sterling, the Japanese yen, the Eurozone eruo, and the United States dollar. You can trade any one currency against another and you can trade from that currency to another currency to build up additional money and interest daily.

The areas where forex trading is taking place will open and close, and the next will open and close. This is seen also in the stock exchanges from around the world, as different time zones are processing order and trading during different time frames. The results of any forex trading in one country could have results and differences in what happens in additional forex markets as the countries take turns opening and closing with the time zones. Exchange rates are going to vary from forex trade to forex trade, and if you are a broker, or if you are learning about the forex markets you want to know what the rates are on a given day before making any trades.

The stock market Is generally based on products, prices, and other factors within businesses that will change the price of stocks. If someone knows what is going to happened before the general public, it is often known as inside trading, using business secrets to buy stocks and make money – which by the way is illegal. There is very little, if any at all inside information in the forex trading markets. The monetary trades, buys and sells are all a part of the forex market but very little is based on business secrets, but more on the value of the economy, the currency and such of a country at that time.

Every currency that is traded on the forex market does have a three letter code associated with that currency so there is no misunderstanding about which currency or which country one is investing with at the time. The eruo is the EUR and the US dollar is known as the USD. The British pound is the GBP and the Japanese yen is known as the JPY. If you are interested in contacting a broker and becoming involved in the forex markets you can find many online where you can review the company information and transactions before processing and becoming involved in the forex markets.

I have been trading the Foreign Exchange Currency Market (Forex) live for a few months as of this writing. I have to say it is VERY exciting!

I was beating my brains out trying to trade the Stock Market. Over 40 thousand stocks to watch (way too many). I tried Futures trading. That was just plain wacky. I tried Options Trading. Many more losses than gains. Then I found out about the FOREX!

At first, I was a skeptic. I didn’t believe all the hype (having seen the results of my last trading encounters). Now, I have found it is entirely possible to completely replace your income. In a matter of a few minutes, you can make hundreds of dollars and do this multiple times a week!

Here are only some of the advantages I have found trading the Forex:

You only have to watch one major currency pair (EUR/USD) to make money instead of over 40,000 stocks on the stock exchanges. Feel free to trade other pairs, but get good at it first.

The Forex Market trades 24 hours / 6 days a week. The Forex begins trading on Sunday at 2 pm EST and goes straight through until Friday at 4 pm EST. You can trade according to your schedule, unlike the Stock Market that’s only trading from 9:30 am to 4 pm EST.

You only need $300 to open a trading account with a Forex broker.

You don’t have to pay commissions to the broker.  This is HUGH! What a savings!  What you see is what you get in your brokerage account. After you close your trade the exact amount goes, instantly, into your account.

You can learn how to trade in a matter of hours. All beginners are welcome.

You don’t have to have any special degree to trade. No one is going to ask you what university you attended or what credentials you have. You are completely anonymous!

World’s best home-based business. You can have your own business with NO employees!
Work from home or ANYWHERE you can get an internet connection! (High Speed Broadband connection preferred) You are in 100% control!
In fact, you can sit at your computer and trade without having to talk to anyone.

You are now on a level playing field with the enormous international banks. The Forex used to be only available to the banking institutions until around 1999. Now individual traders can trade the Forex to make a healthy income.

Trading the Forex Market offers an unlimited opportunity! The choice is yours. I know which market I chose!