Is Forex Arbitrage a Good Alternative to Earn a Living in Forex Trading Market?

October 8, 2011 by  
Filed under Currency

Forex arbitrage is a type of trading strategy wherein the trader make a profit by exploiting the inequality in currency pairs. This inequality or inefficiency is a self correcting one, so the opportunity window through which profits can be made is very narrow.

Arbitrage is considered a risk free fx online trading strategies as compared to other strategies forex traders or investors may adopt from time to time. Arbitrage is a strategy where transactions are performed on assets that are traded in two different markets. To earn a profit, these two markets have different quote prices for the same asset. Now when such a difference is noticed by some speculator, he buys the asset in the market which is offering the lower price and obviously sells it in the forex market that is quoting a higher on it. The important point to note in arbitrage is that this price difference causes immediate reaction from speculators and traders; the correction or elimination is also immediate because of supply and demand. However, while the difference exists profits can be made.

Forex Arbitrage is performed in two ways – two-way and three way arbitrage. Two-way arbitrage is simpler as compared to the three way Forex arbitrage, which is more complex and difficult to grasp and take control of. 3-way forex arbitrage requires real understanding of exchange rates and some understanding of calculation and accuracy skill. 3-way Forex arbitrage is possible when the exchange rates of three currency pairs do not match, and there is a difference between expected rates and actual rates. When a speculator enters into three-way transaction with a view to earn a profit from this difference is rates in different markets for same currency markets, it is called forex arbitrage.

Forex arbitrage may be considered risk free, but doing it properly calls for maturity and patience, besides computer programs that run at high speeds to make the best use of time as every second is crucial in forex arbitrage. Arbitrage opportunities also tend to close very fast.

As an experienced forex trader my honest advice would be that if you come cross an arbitrage opportunity in the course of your trading, try your best to use it, but don’t devote your entire time looking for forex arbitrage opportunities. Making a living this way is very complex, since these opportunities are very rare and last just a while. NOW THE BIG QUESTION, “WHETEHR IS IT A GOOD IDEA TO TRY AND EARN A LIVING TRADING Forex ARBITRAGE?”

About Author Copyright 2009 – Vahid is a forex trader and forex market analyst. His website is the MOST reliable reference for advanced, intermediate and beginner forex traders, Forex Arbitrage

Forex Strategy Trading Tips Why Small Victories Will Assist You to Win All Your Trading Battles

October 8, 2011 by  
Filed under Forex review, Forex Trading

As most traders I started by trying to puzzle out Forex trading without any help. I was always hunting for new methods to learn more, bring in more revenue, and be a better trader. Many people also tried to feed me lies, gimmicks, and sales pitches but I didn’t buy into them. Becoming profitable at Forex strategy trading was not simple and it took lots of work and effort. During my journey to become a profitable trader I learned one of the biggest Forex secrets.

Successful traders are not hunting for jackpot trades (normally trades with quite high risk parameters) that will make them large sums of income once in a while. Pro traders are rather in search of trades that can produce them smaller profits repeatedly.

In this article you will learn how you can make Currency trading work for you by trading high probability/ low risk trades. Pick your battles wisely: Choosing the right battles is extremely important to ensure that you accomplish your goals. In Forex trading you must pick time frames and currency pairs that suit your trading needs. For example, if you are looking into trading only for a few minutes a day you may need to learn how to trade lower timeframes. If you are planning to trade everyday you may need to consider day trading and so on.

Be sure to possess the right Foreign currency trading “weapons”: I am careful whenever I choose or build a new trading system. Lacking the appropriate trading tools can be quite detrimental and sometimes it can cause you to lose most or all of your trading funds. The best way to measure the success of your trading strategies is by testing for 3-4 months and then analyzing the final results. Every trading month is different but 3 months definitely seems to be the magic number to perform back testing on a FX strategy. To make an omelet you need to break some eggs: No trader wishes to lose but the truth is that every trader loses money.

Additionally, a successful Forex career is formed by several small failures. Successful Forex traders accept the fact that loses are part of the trading game. What really makes all the difference is your ability to manage your risk and find trading opportunities with high reward to risk ratios. Perseverance will always overcome misfortune: The best way to be a consistent and very profitable trader is by having many small victories time upon time.

When facing a losing streak your perseverance and discipline will be tested. Furthermore, a Currency trader that is consistent, never gives up, and takes smart trading decisions will achieve his goals sooner or later; it’s just a matter of time.

Most beginner traders believe that the way to succeed is to find the “holy grail” trading system or technique that can make you millions. This approach will not take you to where you want to go with your trading career. Focus on using simple trading strategies, solid money management, and keep reading my Forex strategy trading tips 😉 and you will be on your way to become a very successful trader. All the best, Jay Molina Pro Forex Trader & Educator

Jay Oil mill is an advanced Forex to trader that helps to other investors around the world to learn about the Forex market and its rewards and risks. To learn dwells forex strategy TRADING tips visit the Link: http://www. myfxinvestment. com

07.01.2011 – Movers and Shakers by Dukascopy

May 15, 2011 by  
Filed under Forex review


Movers and Shakers represents a generalized forex analysis of how the currency rates shaped up from the daily open up to 15.00 GMT. With more than 25 currency pairs and 8 majors included in the analysis, traders will gain a better understanding of market dynamics and trends. The bulletin includes two parts: the short term analysis provides the data on the biggest market moving currency pair and compares the performance of majors against each other, while the long term part of the program is based on top weekly and monthly gainers and losers. By watching the review, traders will get a concise and clear picture of currency markets on a daily basis.

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