The Best Way To Learn About Forex Currency Trading

June 16, 2012 by  
Filed under Currency

What is the best way to learn about Forex currency trading? Is there a single source for you to just look up, like a one-stop shop of knowledge database of what to do or not do when it comes to Forex currency trading? Diving in head first is usually not a good idea when it comes to one of the most dynamic and volatile markets out there. Currencies can rise and fall in value and where the money is placed is based on the health of the market, the health of the investment framework and how secure you feel about the currency you’re investing in. Your money would go global and more often than not you have no idea how it is being used to strengthen the currency. But the fundamentals are really simple, the more money that is being pumped into the dollar of a country, the more the country can use it to surplus its development and thus invest into infrastructure that can increase the strength of its dollar.

This way, the money trickles down back to you in the form of a stronger dollar. The discrepancies are the profits you earn. But this is just fundamentals of the Forex market and these are the normal outcomes you want. Hey, everyone wants to make money and Forex is the best way for you to make good, decent and even fantastic money but there are certain principles that you must learn about before you go into this full steam ahead. The first thing you need to do is to keep up with world events, get RSS feeds, get news GPRS fed into your hand phone, get a PDA, get BBC to email you – knowing all about world development will help you get an idea of what currency to back and which not to. Remember that knowledge is power, and when you are able to learn to apply this to the market and work out the trends and predict the market based on these world events, you will be able to make the best informed decisions in order to make a killing in the Forex currency market.

Try to learn from the veteran traders and brokers, get advice about their successes in the Forex game from them. Ask them questions that matter, like what convinced them to play in the Forex market, what are its advantages and what are its possible disadvantages. Ask for horror stories and let them know you are completely green about the whole matter, but prudent enough to know that you have to learn a lot more before you start investing. I think researching brokerage companies and trading companies are just some of the methods that you can use (both offline and online) to learn more about investing in Forex. Learn about Forex trading software programmes, interfaces, order fills and the many trading platforms that are used widely to trade and invest in the currency exchange market.

Last of all don’t rush into things and take your time. The currency market will always be around as long as the foundation of the world is based largely on capitalism and neo-liberal thinking, but the thinking you should have is smart and prepared before you jump into Forex.

 

Forex Made Easy: Everything You Need To Know To Get Started In Forex Trading

May 16, 2012 by  
Filed under Forex Trading

Forex – you have definitely heard about it, you’ve seen it being mentioned on the financial channel or even seen it being mentioned by prim and proper newscasters on the BBC or Bloomberg, but do you actually have any idea what it is all about? Sure, you might have a vague idea about it being something to do with currency. But how does the entire system work? How is it you can make money from money you know nothing about? This article is to educate you, a sort of Forex made easy; telling you what Forex trading is all about.

The first thing you need to know is that the Forex market deals strictly in currencies. Typically, people who trade in Forex buy a large amount of another countries currency in exchange for paying for another currencies quantity. Confusing? Yes it can be. Basically it is the buying and selling of different forms of money and you make money when one currency gets stronger or when grows weaker. The market will always try to balance itself out when one currency gets weaker, so you can actually make money both ways. A weak currency would mean that other currencies may be appreciating, and it is this balancing-out of the market that traders can leverage on. Here the U.S. dollar is the normal benchmark but arguably, some have the opinion that in today’s markets, it should be the Euro or even the British Sterling Pound.

Being the hugest and most liquid financial market in today’s world, it sees the participation of banks, a large amount of commercial companies, hedge funds, investing firms, brokers, trading firms and even other smaller players. Multi national companies who have a lot to play with and the rest by smaller firms, brokers and individuals take up most of the action. The distinct uniqueness of the Forex market when compared to other markets is the fact that it is a true 24 hour market, accessible at any time, liquid beyond measure, nomadic in nature and there are a plethora of factors that can affect exchange rates around the world – and the way you can make or lose money. If you haven’t already noticed, the top players, the top currency traders in the market happen to be banks – banks deal with money and it is only natural that they trade in it as well.

For a better understanding of how Forex trading works, let’s take an example. You buy let’s say 100,000 dollars of the U.S dollar by selling the British pound at a particular price. The reason for this is because you know through your media monitoring and watching the U.S market that they are coming out of a recession and re-development is in the works. Trading is back at full swing and employment numbers are running high. This means demands go up and the elasticity of the market demands that prices go up and trading intensifies. Part of your money will go to the U.S. or it might be spread out in different companies (depending on where the U.S. has stakes in) and at the end of the day, the dollar gets stronger – when you bought it in its weaker stage. Voila. You have made money.

 

Forex Trading Strategy ? a Simple Method for 100% + Annual Gains

September 22, 2011 by  
Filed under Articles, Currency

The Forex trading strategy we are going to look at here is not complicated and anyone can do it, but if it is executed correctly it can make you triple digit gains or more with very little effort or monitoring.

So here is your simple forex trading strategy for big gains.

Fundamentals

The first place to start is with the fundamental supply and demand situation.

This sets the tone for the longer term trends that last for months or years and these are the trends you want to be in on.

Currencies move in line with these fundamentals longer term and you are really looking for strong GDP growth. If you look at the currencies that did best against the Dollar this year its countries with strong GDP and Australia led the pack against the dollar.

Two Countries that have economies that doing well compared to the US at present are Australia and Canada and these are set for far higher prices into year end.

Getting In on The Action

Currencies trend for years we all know that but its getting in on the trends that is the hard part and your aim is to get in and then simply hold the trend.

Any currency that is bullish will become overbought at some point and break and when these breaks come you buy them

Use Sentiment tools

Always use these two sentiment tools – Net Traders Positions and % Bullish to check that sentiment is not in over bought territory when you enter the trade. Start with your weekly charts and loo k for support and time your entry with your daily charts.

Risk – Reward

Don’t over do the leverage! You can get 200:1 but on a trade about 10:1 is fine for a buy and hold strategy. What you are going to do then set a stop and leave the currency alone. Hopefully it will trend for months and make great gains if you have been careful in your selection.

That’s your Forex trading strategy! It’s extremely simple but it will make money if executed correctly. The real key is not to overdo leverage have a wide enough stop, so you are not taken out by normal volatility and let the trade run. There are some excellent trading opportunities around that will enable you to do the above so take a look at them and try it.

NEW! FREE Trader PDF’S – Forex Newsletters and Alerts
On all aspects of becoming a profitable trader including: Free, weekly and daily newsletters, and some essential FREE FOREX Trading PDF’s visit our website at: http://www. learncurrencytradingonline/index. html

Next Page »