All About Online Forex Trading

A Short Study Of Mechanical & Discretionary Forex Trading

2010-12-17T04:16:00.000-08:00

Forex trading, like many other types of financial market participation, is mostly carried out using one of two approaches: mechanical or discretionary. In the mechanical trading approach, one relies on application of technical analysis to produce trade signals, and this is done in a very systematic way. While in discretionary trading, the trader takes advantage of his/her experience in the markets to sieve and evaluate trading opportunities. Human judgment is involved in this case.

Is one trading approach superior to the other? How do you decide which one is suitable for you? Let's have a look at the advantages and disadvantages of each trading approach and consider what selection criteria should be applied in each case.

** Mechanical Trading Approach **

1. A mechanical Forex trading approach has many advantages. Here, a trader follows very precise rules for trading, which keeps him/her in control to avoid emotional trading. There is no guess work, as it is very clear cut whether a trade should be entered or exited.

2. Mechanical trading derives trade signals from a system using primarily past Forex trade data. Since Forex trading strategies formulated this way can be accurately back-tested with performance statistics to show for it, this is seen as a plus. Additionally, a mechanical trading approach is suited for automated Forex trading -- the trader can do Forex trading unattended via automatic system-generated trades sent direct to the broker.

3. The main drawback of a mechanical trading approach is its inability to react to and follow new market conditions. As historical data is always biased to prior market conditions, even if the system statistics show favorable performance there is no guarantee the system will continue to produce Forex profits in the present or future. Worse, the system can be tweaked to optimize performance statistics, which may create an illusion it works exceptionally well.

** Discretionary Trading Approach **

1. Discretionary trading utilizes mainly a trader's experience in the Forex markets, which can be an advantage as the trader is able to single out higher probability trade opportunities and ignore the mediocre ones. Since a human makes the trade decisions, changing and new market conditions can be factored in quickly and adjustments made to the trading approach.

2. However, the human factor in the discretionary Forex trading approach can also be viewed as a drawback. It takes many years to gain the necessary Forex trading skills and experience, and most probably also a few accounts blown. Few traders can trade without emotion when money is at stake. The fact that the system is discretionary also means the Forex trader can be influenced by hindsight to change trading rules arbitrarily. Lastly, trade automation is not feasible since a human needs to make a decision on every trade setup and when to exit trades.

Before you embark on either trading approaches, review first you perform as a Forex trader. Do you doubt your trade setups? Are you the sort that keeps shifting stop losses as trades play out? Does being in a trade often evoke elements of fear, greed and anger? Perhaps a mechanical trading approach would fit you as it can alleviate most of these problems.

What if you have a special ability to hit home runs under certain market conditions? Or if you can "tell" that a trade setup might fail to work in a particular situation? And you are very disciplined and also emotionless when trading? Well, discretionary Forex trading may suit you better since you are in control and larger-than-usual profits (compared to mechanical trading) can sometimes be had.

Finally, there is also the possibility of marrying both trading approaches to generate a hybrid one. Consider taking the advantage of Forex trade automation from mechanical trading, so that you get trade evaluation and order entry covered. Include the option of human intervention to allow non-performing trades to be closed early, new trades to be scaled in, and repositioning of target prices. This is like a best-of-both-worlds system and is perhaps the ultimate choice for some Forex traders.

Whichever trading approach you select, there are a few inescapable rules to follow. Always know your risk before each trade, not take a setup first and evaluate risk thereafter. Always use correct position sizing for proper risk and money management, so that you protect your trading capital. And do give time for the system to perform.

Engie F is an independent freelance article writer and reviewer specializing in the investing domain. For more information on automatic Forex trading, visit http://www.theAutomaticForexTrading.com. Learn how to trade Forex the hassle-free way.

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Online Forex Trade the thirty minute game

2010-12-17T00:06:00.000-08:00

The very first point to bear in mind is - your own Forex currency trading technique needs to be simple! This is due to the fact that simple techniques are more effective than complicated types, as they are better quality and fewer likely to break in unstable market action. Anyone can easily learn a technique but you should base that upon sound logic which most dealers don't so, let's look at how to build a Forex currency trading strategy for good results.

Use Graphs and Rely on Long Term Trends

The best and fastest approach to learn Foreign exchange is to use charts. Tendencies in currencies may last for many days and these are the type that give the biggest profits so this is the fundamental essentials types you should concentrate on. Don't ever crown or day trade you will simply end up buying and selling the sound from the marketplace as well as take low odds deals. Through buying and selling long-term, you'll do much less work making more money and that's got to do well.

Another major error traders create is that they think that they are able to forecast Forex price course in advance. You cannot forecast Foreign exchange prices ahead of time, no one knows the future and if you do try to forecast, your predictions find yourself as precise as your horoscope.

Instead, wait for the pattern change to end up being confirmed and then jump in. The very fact you miss a little little bit of the particular relocate the trend which can last for weeks, wont prevent you making a lot of money. Concentrate on trading chances as well as earning money and do not try to be perfect - your aim is to make money and you don't have to be correct all the time to do that.

Discipline is of utmost importance

In Forex trading you will get lots of shedding investments but that doesn't matter, just keep your losses small , if you operate the big trends you can make large gains all round. Most dropping traders, allow deficits get free from control and maintain them as well as wish they will come back directly into gain but this can be a huge mistake and creates a wipe out. Therefore keep your inner thoughts out of trading as well as trade with self-discipline at all times.

Why You Can Win

In the event you comprehend the above details, you will find that you can acquire with a easy program, based on reading through graphs and if an individual trade with an organised attitude, you can make massive gains in close to thirty minutes a day buying and selling Foreign exchange at home.

Author writes on forex trading, trade forex, Forex Brokers, online forex trading, online forex tradersand online forex brokers click : http://totradeforexonline.com/

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Auto Forex Trading - Pinpointing the right System for You

2010-12-16T20:02:00.000-08:00

If we're talking about auto forex trading, usually it means forex robot or expert advisor. Yet, we actually have other type of automated trading: forex trading signals. This type of automated system will only do half of the job for you, mainly analyzing the market and pinpointing potential profit opportunities.

Both of them can give you steady profits as long as they're supported by a tested trading system. However, that doesn't imply that you should just go for a full automated system (forex robot). See the advantages and disadvantages of both options before you determine anything.

Fully Automated System (forex robot)
Pros
The largest advantage of a forex robot is it doesn't require any kind of human intervention to do its job. It can analyze the market and execute orders by itself, thus your task as the user is simply wait. Should you place it in a dependable VPS, you can be assured that your robot will keep working 24/5 for you; that is something which a human trader just can't do.

In addition, you may also modify the configurations to get better result. Having said that, make sure that you know what you're doing. Careless experiment on the configurations could cost you your whole account.

Cons
To be able to gain the best from your robot, you have to get a VPS service. This will cost you several dollars each month. Furthermore, you might also need to do a little research to make sure that your robot is in the appropriate forex broker. Finally, you need to ensure that the robot only trades currency pairs that it has been optimized for.

Half Automated System (trading signals)
Pros
This type of auto forex trading can allow you to be the decision maker of every trade. Should you have other judgment about the situation, you can decide to ignore the signal and wait for a better opportunity. Of course, you must at least master the basic of forex trading before you are capable to judge any trade recommendation.

Cons
Yes, you have some control to your trades, but once in a while you will unintentionally skip potential profits. In other words, you may overlook some signals that can bring you profits.

So which is better? The completely automated one or the half automated one? It actually depends on you. If you don't have any plan to actively involved in currency trading or learn it more, a forex robot 's what you need. Of course you've still got to know a thing or two about choosing the best broker and finding out the best currencies, but that can be carried out with small efforts.

On the contrary, if you wish to be a better trader and sharpening your trading skills, you can use trading signals to help you. Each signal that comes can be analyzed and you will get better as you execute trade after trade. With a good signal provider, you can even earn money while you learn.

Different traders with different goals require different auto forex trading system. Choose the one that can accommodate your need better.

No matter what your decision, you still have to recognize the best one among hundreds of junk products. Look into automated currency trading and forex trading signal service to find out the way to recognize a working system.

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Would you like to Learn Forex Trading Online? Here's the Basics...

2010-12-16T15:37:00.000-08:00

Online currency exchange or forex trading is growing like wildfire. It draws a huge amount of rookies who want to make extra money from home. Mostly they have seen advertising regarding the quantity of cash that can possibly be earned in this trillion dollar marketplace. But what on earth is foreign currency trading?

Trading currency consists of swapping one of the planet's currencies for another, hoping that the one that you purchased will increase in price. When it does, you swap it back again (close your trade) at a profit. If it falls, the trader will lose. As a result there is a risk and it can be a sizeable risk dependent upon the amount you leverage on each deal.

The majority of traders don't try to monitor the prices of all currency pairs simultaneously. You will discover about 150 currencies altogether, so the amount of feasible combinations are in the thousands. The majority of traders stick to only a few of the major currency pairs. These include the American dollar paired together with the Euro, Japanese yen, British pound, Swiss franc, Canadian dollar or Australian dollar.

You can trade forex from almost anywhere on the planet, although there are some countries similar to China where online currency trading is against the law for political motives. Otherwise, all you actually need to have is a personal computer with a high speed broadband connection and some cash fund your trading account, and you are ready to proceed.

You do not need a huge trading account to get started either. Online foreign exchange brokers are opening up their services to traders with smaller trading account balances. Where a few years ago a trader required lots of trading capital to start forex trading, today you are able to open a forex account using just a few hundred or so.

It is because there happens to be a brand new level of forex brokers called market makers who have come into being (blank) ever since the world wide web exposed the foreign exchange market to online fx brokers who do not have actual dealing desks. It also cut brokers' costs by enabling retail currency traders like you and me to have control of our own accounts by interacting with online currency exchange software platforms on the brokers' websites.

Actually, it's also possible to have forex trading software trade for you automatically. These automated forex trading programs are known as forex robots or expert advisors. You will discover numerous of these available. You can acquire them for a wide range of prices from absolutely free to several hundred dollars. The catch is that you need one that will actually generate an income for you. Forex robot software function according to pre-set strategies which some are better than others and none are (blank) certain to succeed. You are able to read review articles in order to investigate whether a trading program is profitable for other individuals, nonetheless it is also vital to test it on a forex demo account for (blank) before using real money.

Fortunately, brokerages make available demo accounts that permit you to try out their services without risk through the use of 'virtual money' rather than investing any real cash. This can seem a little like playing a game however it is actually critical to work hard at it to be able to learn forex trading skills that you can put into action in the real market later. If you use a forex robot for your online currency trading you can set it up with a demo account in the beginning also.

For more information about how to learn forex trading online by training live with professional traders, click the link below...

FREE Live Forex Trading Training Session with 26 year InterBank Chief Dealer. Follow Live Trade Calls and Learn to Trade with Fibonacci Grid forex trading software.

Live Forex Trading Room Webcam to see Live Forex traders in action

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Stock Trading Education and Analysis

2010-12-16T11:33:00.000-08:00

If you want to make handsome money in stock trading you must look for professional stock market advice. On internet you can easily find out various companies offering stock trading education for traders of all capacity.

Gain Knowledge on Stock Trading

As you venture to enter the world of stock market investment you should have sound knowledge about stock trading. Before you start investing you must be well aware of the jargon and the critical terms and technicalities of this business. For new stock traders it is highly essential to find out the most reliable resources for best stock market advice.

Locate the Authorized Company

Though there are number of companies on net offering info and guidance regarding stock investment you must locate the best authorized company which provides professional online stock trading education and high quality aid for analyzing and understanding the current market trends.

Beat the Fear Factor

Stock market trading involves a fare amount of risk and uncertainty. To ensure your success in this lucrative business you have to overcome the fear related to this trade. Most of the time, this fear is due to the lack of knowledge on stock market. By following the stock investment advice offered by the stock market experts you can gain required knowledge on the trade and can as well get rid of your fear. And this will surely help you to minimize the risk and maximize your profit in stock trading.

Analyzing Stock Investment

As you accept the fact that investing in stock market is, like any other trade, vulnerable you should look for ways to shun the financial loss. Number of reliable online stock trading agencies provides authentic investment advice for the traders' benefit. It is highly essential for any investor to watch the stock market trends closely and to analyze various aspects of stock investment you can use the professional stock picks and financial analysis tools available on individual websites.

Choose the Right Path

Those who wish to enter the most volatile financial domain of stock market must understand the vital facts about this business. To invest your hard earned money in the stock market safely you should be able to locate the most profitable stocks. You can secure your profit in stock trading only by investing in the highly recommended stocks that are performing consistently well in the market. As you analyze the stocks with the help of various high end financial analysis tools you can confidently choose the right stocks and can make your investment safe and gainful as well.

Rely on Experts' Guidelines

Professionals providing authentic stock market advice and stock trading education online also offer trading strategies and stock recommendations for successful investment. With the formal training and proper investment advice even a new trader can easily make good money in stock trading.

Dive Inside for Timely Stock Market Advice

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2011 Forecasts For Commodities and Currencies

2010-12-16T07:08:00.001-08:00

2011 Forecasts For Commodities and Currencies

Mediums: The CR News Reports© is a copyright publication of Channeled Readings®. The following predictions on COMMODITIES & CURRENCIES were channeled on December 14, 2010 directly from our "Higher Intelligence Source" and not from what we, the Mediums may think, reason, guess, analyze or anticipate from probabilities or trends. These predictions are not based in conspiracy theories or come from a doomsayer's slant. We provide Survival News Predictions to help you overcome any fear of the future you may have and empower you to prepare for what's coming… Each December here at Channeled Readings, LLC we channel our Forecast for the coming year on each of our 14 CR News Reports© topics. Today's topic is the Commodities & Currencies. Remember, we are the only psychics in the world that have every prediction notarized for accuracy and date. Last December, in 2009, our CR News Reports© session on Commodities & Currencies featured the following forecast for 2010…

1.) Both individuals and the government will be concerned with digging themselves out of the debt hole.

2.) We predict that during 2010, the U.S. will start to have fewer buyers for its debt. In fact, the foreign buyers may dry up and the only ones left will be the Federal Reserve.

3.) By the second or third quarter you may start to hear talk about devaluing the dollar or possibly issuing a new dollar that would be worth 1/2 or 1/3 of the old dollars.

4.) Gold is the first thing people flock to when you see trouble with the dollar. Silver is more of a "hybrid" metal - with both investment appeal and manufacturing appeal.

5.) The biggest catalyst that will affect gold and silver prices is Sovereign debt default. When you hear that a country or Sovereign fund is defaulting, get in line to buy both gold and silver.

6.) The mining stocks may become the new "darlings" of the market and have the prestige the home builder and construction stocks had during the boom. This will make them a more steady play. Many of the mining companies have eliminated their hedge positions.

7.) The talk about metals-backed money will increase during 2010 and further fuel precious metal buying. People are looking for something they can trust and believe in. Faith is declining worldwide in paper money.

8.) The administration will attempt to do everything to get banks lending again to individuals and small and medium-sized businesses, but the banks will fight back. This is when talk about devaluing the dollar will start…talk about lowering the value of the dollar.

9.) People may want to start buying some gold or silver on this current pullback.

Following this link http://www.channeledreadings.com/modules.php?name=Subscriptions&Page=CRGreatestHits&Aid=513 to the CR Greatest Hits© PREDICTIONS on Commodities & Currencies for December, 2009 is where you'll find 8 news stories that support these predictions after they happened. We would now ask Higher Intelligence to bring through their predictions and commentary on what they see coming in 2011 for Commodities & Currencies … Go ahead with your predictions and commentary…

Voice of Higher Intelligence: "2011 will be a good year for many commodities and a tough year for some currencies. We will start our predictions with commodities. We see oil going to $110 per barrel by summer of 2011. Then higher by the end of the year. Worldwide oil demand is rising and Americans have paid low prices for gasoline for decades. Americans will see gasoline near $5.00 a gallon. Gold will continue to be a strong play as people flock to metals. We predict gold to be near $1,700 an ounce by mid-year and near $2,100 by the end of the year. Silver will continue to be a stronger play than gold. By the end of 2011? continue http://www.channeledreadings.com/CRNews/2010/12/2011-forecasts-for-commodities-and-currencies/

Like the reputed seer from the 16th Century, Nostradamus who predicted future events, Channeled Readings, LLC predicts Survival News Predictions each month on fourteen topics; Weeks, Months, Years in advance.

Since 1989 ... THE CR NEWS REPORTS© are channeled through Ray Holley & Linda Deir, the Channeled Readings, LLC Intuitive Medium Team.

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What Is A Mini Forex Account?

2009-07-09T08:52:00.000-07:00

Nowadays many people around the world is looking for entering the world of Forex trading due to its very high profitability potential and many other advantages the Forex market has over other capital markets.

But one of the main worries of the new trader is if he will need lots of money in order to be able to access this market and start placing trades.

The reality is that practically anyone can enter the forex markets and place trades. You don't need to be super-rich or the owner of a big corporation. You just need a few dollars and the right strategy to start profiting from Forex trading.

In the Forex world there is something called a Mini Account, and it uses a different leverage calculation than a regular (100k) account. This means that instead of trading full-size currency lots (100,000 units), you'll trade in lots that are just 1/10 the size (10,000 currency units), which in turn greatly reduces the amount of money you risk in each trade you enter. Pips in a Mini Account are worth, on average, $1 instead of the $8 to $10 value they have in a regular account. The Mini Forex account offers up to a huge 200:1 leverage, this means that just a $50 margin deposit will allow you to trade lots worth roughly $10,000 , but the smaller lot sizes, with correspondingly smaller pip values, means that you'll be profiting less from a successful trade and also losing less if the trade goes bad . For example, while a 20-pip loss on a 100,000 USD/JPY position would be $200, the same loss on a 10,000 USD/JPY position in a Mini account would amount to only $20.

The following are the characteristics of a Forex Mini Account.

- Minimum required account deposit = $300
- Recommended required account deposit = $2,000
- Traded in 10,000-unit currency lots
- Default Margin: set at 0.5% ($50 per mini-lot)
- Leverage up to = 200:1

Contrary to what you may be tempted to think, there is no downside to trading a Forex mini account, you will be enjoying all the benefits that full-size FX account holders enjoy; including, same state-of-the art trading software from your broker, charts, resources, and tools. This mini accounts are ideal for a new Forex trader to develop a disciplined, rational forex trading strategy and technique without excessively focusing on the fear naturally arising from thinking too much about profits and losses.

One more great new for the starting forex trader is that there is no maximum trade volume when you use a mini account. Although the standard trade size is 10,000 units, you are not limited to trading one lot. For instance, you can trade 10,000 units or even 200,000 units. Allowing that, as you become more seasoned and build up your confidence you can slowly increase the size of your positions to maximize profits. This ability to customize the size of the trade will allow you to have a better risk management of your money.

Best Place to learn forex? My recommendation is INO TV's Free Video Trading Lessons

Other alternatives

Learn Forex Live.
The Traders Club!
Trendlines.TV
Forex Candlesticks Made Easy!

Cheers

Alkepong

The Pros and Cons, of Trading a Forex Trading Demonstration Account

2009-07-09T08:47:00.000-07:00

Trading is a skill that takes time to learn. Think of it like Boxing it’s also a skill that takes time to learn.

If you get into a professional boxing ring without any training, you’ll get beat up physically! If you get into the Forex ring without any training, you’ll get beat up financially!

The similarities are that both the examples are Skills, and both require psychological preparation. The difference is that one is physical and the other is financial.

We can get over a physical beating usually in a few days or weeks, BUT a financial beating can be devastating and easily affect us for the rest of our lives, not only does it hurt our hip pocket but it can cause problems with our relationships and family. So when we get into the Forex ring we have to be prepared.

The Professional Boxer

When a professional boxer gets in the ring he has already been practicing in a safe environment usually for years, this safe environment is where he can make mistakes without having medical treatment. He can also spar with other opponents that have more skills and experience then he does and he learns from them. He also has someone there to watch him and give advice and guidance.

Then when he is ready, he gets into the ring and boxes for real, he’s accepted the risk and KNOWS that he can get hurt, but he’s also studied his opponent and done his home work, so he KNOWS he has a good chance. He can still lose this round but if he wins most of them he will take the money home.

BUT! What about the psychological side? Does he fear getting into the ring? Sometimes! But he’s aware of it and he can control how it affects him in a way that is beneficial. Will he be thinking about the money he’ll make? Or will he be thinking about the fight as is happens and planning his next moves during the breaks? He’ll be analyzing the results from the previous rounds and making changes in his strategy for the next round.

The professional Trader

Can you see what’s coming next? If so than, you’ve learned to analyze what you read and form a projection into the future. (A very valuable skill for the FOREX Trader) A forex trader, like the professional boxer, will not get into the Forex trading ring without being prepared first. He might not spend years practicing in the Demonstration Account, but he will at least have spent a month or two or three, sparing with the Forex Market in a safe environment that he won’t get beat up in.

He’ll practice trading forex against all the other traders and learn from them, and he’ll also have someone watching him and giving advice, and guidance.
Then when he is ready, he’ll get into the Forex trading ring and trade forex for real, he’s accepted the risk and KNOWS that he can get hurt, but he’s also studied the Forex market and done his home work, so he KNOWS he has a good chance. He can still lose on this trade but if he wins most of the trades he will take the money home.

BUT! What about the psychological side? Does he fear getting into the forex trading ring? Sometimes! But he’s aware of this fear, but he can control how it affects him, in a way that is beneficial to his forex trading. Will he be thinking about the money he’ll make? Or will he be thinking about the things that are influencing the market as is happens and planning his next trades while he waits for the results? He’ll be analyzing the results from the previous trades and making changes in his strategy or continuing with the one that’s working, and planning for the next Forex Trade.

So it's easy to see that trading with a Forex Trading Demonstration account is something everyone should do before getting into a live Forex Trading account.

The practice account will give the trader MOST of the skills necessary, to be able to trade profitably, giving them the training ring to spar in.

BUT A BIG WARNING!!!

Like the Boxer the Forex trader has to learn to manage his emotions, this is often overlooked by new Forex Traders. BUT is probably what separates the successful investor from the ones that keep getting beat up!

If you are considering getting into the Forex trading Ring, then be sure to practice first, and find all the information you can about controlling your emotions.

Fear, greed, impatience, are the main culprits of financial bashings, so keep an eye out for them, and learn how to beat them before you get in the ring with them.

Understanding these emotions will enable you to use them to your advantage in understanding the market, the market is influence by these emotions and if you understand them you can have them on your side, thus giving you an advantage.

Best Place to learn forex? My recommendation is INO TV's Free Video Trading Lessons

Other alternatives

Learn Forex Live.
The Traders Club!
Trendlines.TV
Forex Candlesticks Made Easy!

Cheers

Alkepong

Will I Get Rich Trading?...Probably Not

2009-07-09T08:43:00.000-07:00

Don't throw that coffee cup at your screen, I'm only being honest. The internet is filled with talented pitch men that can hype anything from watching the stars to the latest and greatest make you rich on auto-pilot software program for your trading signals. (but the stars thing does work great with my wife) Well, here today on the World Wide Web I am going to reveal the Holy Grail of trading. The surprise is it won't be found sold on the 'net in fact it is not a trading system at all. It is (drum roll please) being honest with yourself. My goodness, that's not very exciting after all the hype we've been fed by the guru's.

Do Some People Get Rich Trading Forex?...Absolutely

The truth is there are many trading systems that work, but there are precious few people can be honest enough with themselves to pick a system correctly. Most people that want to trade start off by looking for that system that will beat the market. Now I know that some systems out perform others and by all means you should seek the best one. Where many struggling traders don't understand is that the best system is the one that matches your own personality. If one trader has good discipline he may not need a system that is very rigid.

On other side of the discipline spectrum, a trader would need many rules to protect him. If either of these traders try to trade with other system they would probably fail. When you try to trade a system that does not align with your need for discipline as an individual you are destined to fight the very system your trading.

The holy grail that many seek is the ability to correctly identify their strengths and weaknesses. This sounds simple but you would be surprised at how many people will disregard certain weaknesses that they do not want to admit to anyone, even themselves. If more traders would first be brutally honest with themselves and then design a system tailored to their own attributes we would have many more Rich traders.

So Will You Get Rich Trading Forex?

If you have the honesty to choose the correct system, and the discipline to follow that system it may be possible, why not?

Best Place to learn forex? My recommendation is INO TV's Free Video Trading Lessons

Other alternatives

Learn Forex Live.
The Traders Club!
Trendlines.TV
Forex Candlesticks Made Easy!

Cheers

Alkepong

Why Is A Mentor Necessary To Succeed At Forex (FX) Currency Trading?

2009-07-09T08:13:00.000-07:00

Forex (foreign exchange) trading, which is becoming a very popular due to its low investment capital, 24-hour market availability, lower transaction fees, as well its high returns potential. However, it is not easy to learn Forex trading on your own. While it can be done, the lessons can be relatively expensive.

With vast online-forex trading courses, videos, books, and seminars, it is difficult for you to know which one will be the one that is suitable for you. You may end up falling for scammer mentors without actually finding the one that actually helps them learn Forex trading. While this is not rocket science, it can be quite confusing and a little knowledge can be more dangerous and expensive than a true education.

This is why I suggest a mentor to assist you in the process of learning Forex. A mentor will save you countless hours of research that will not help you as well as thousands of dollars purchasing ineffective material. You are also likely to find that you are making profitable currency trades much sooner than you would have been without utilizing the services of a mentor.

Where to start? My recommendation is INO TV's Free Video Trading Lessons

Other alternatives

Learn Forex Live.
The Traders Club!
Trendlines.TV
Forex Candlesticks Made Easy!

Cheers

Alkepong

Understanding What Influences Forex Prices

2009-07-09T08:06:00.000-07:00

Differences between Technical Analysis and Fundamentals

Below are excerpts taken from the best-selling book ‘Market Wizards’ where Jack Schwager interviews Ed Seykota and Bruce Kovner.

Ed is a trend trader (uses technical analysis) and also relies on hunches from 20 years of experience. He definitely emphasizes his reliance on technical analysis. While reading this, I liken, the ‘hunches’ to knowing the effect fundamentals can have on a market although I could be mistaken, they could be purely from reading lots of charts so well. Here are is exact words “Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them ‘funny-mentals.’ However, if you catch on early, before others believe, then you might have valuable ‘surprise-a-mentals.’”

Ed says his priorities when trading are the long term trend, the current charts and picking a good spot to buy or sell, in that order.

Bruce says technical is awesome and very useful but by no means disregards fundamentals.

It’s important to note that technical analysis is a critical method of understanding the history of market movements and hence useful to identify trends. It doesn’t actually tell us where the currency is going but analyses historical data. We then need to use our own intelligence to see what the activity of trading says about future trades.

Technical Analysis can be compared to taking a patient’s temperature. To ignore it is ignorance and it can tell you whether a market is active, or cold and dormant.

It also picks up unusual behaviour. Anything that creates a new chart pattern is something unusual. He also says “Studying the charts is absolutely crucial and alerts me to existing disequilibria and potential changes.”

It’s the fundamentals that will help to indicate whether a trading value will increase or decrease.

Everything that makes a country tick, in Forex terms. Consumer spending, government spending, employment cost index, government policy, political concerns and even an individual event can influence the market heavily.

In summary, the fundamentals will indicate the direction of a price but not exact prices. The chart analysis or technical analysis is better for that, so together you can really increase your chances of coming away with some pips.

The reason technical analysis is so emphasized is that many traders use charts to trade and at any given time, will be drawing the same lines of resistance and same lines of support. So if you can read the charts well, you have an awesome chance of predicting market movements. The best way to learn about the effect of fundamentals is to learn one piece of economic data at a time. This will help you make better-educated trades.

Cheers
Alkepong

Recommended programs
Learn Forex Live.
The Traders Club!
Trendlines.TV
Forex Candlesticks Made Easy!

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Forex MegaDroid Robot

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Think Forex And Consider These Two Factors

2009-07-09T07:41:00.000-07:00

If you are thinking trading forex, consider these.

Daytrading with a small account
If you want to daytrade with stocks and you have less than $25.000 on the account, you are likely to have a hard life. The reason is that a rule called "pattern day traders" allows you to daytrade freely only if you have that amount or more on your account. If you have less, your daytrades (positions entered and exited the same day) are limited to three in any five trading days period. Your broker should monitor your activity and make sure you do not execute trades that are not allowed under the "pattern day traders" rule. This regulation applies for stocks and stock options. The Forex market at the time of this writing is not involved.

Risk Control
The Forex market has two characteristics that may translate in a better risk control on your trades. What I mean by risk control, is the possibility to define your maximum loss should the market move agains you. If we do not consider the use of options or other tools as a hedge, the way to take control of losses is by using a stop loss order.
Nothing new, up to here. The problem that at times traders face is that a stop order can be executed at a price much worse than the one intended and originally set.

Generally, there are two situation where this can happen.

The first has to do with the liquidity of the market. Within this article, we can consider liquidity as a synonymous of trading volume. If liquidity is poor in a market, there might be a significant price difference from one execution to the next one. You can notice this easily in any intraday chart of a small volume security: the price does not move in a continuous an harmonic way, like it does in a very liquid market; rather, it has a tendency to "jump" from one level to the next. This can affect the execution of your orders in a negative way. The phenomenon is also referred to as "slippage". Here we consider in particular the exit order, but slippage can affect your entry order as well, and this could translate in for example in a buy order executed at a higher price than the one you wanted to buy. The Forex market does not fear competitors about liquidity. 3.98 Trillions dollar are traded in Forex every day. The other markets follow at a big distance.

The second factor that gives trouble to risk control is in the occurence of price gaps. Say your stock closes today at 63, and your stop order is at 61.5. In theory, your maximum risk is 1.5 points per share. But the stock for any reason tomorrow opens for trading at 57, and you will be stopped out at that price, so the actual loss will be 5 points per share. Gaps are common in stocks whenever an important news is announced when the market is closed. Sometime an important news can cause a gap even intraday, especially in a not so liquid market. Some other times, the trading in a stock is suspended just in the wait of an important pending news. A gap in almost assured when the news is released. Of course, your position can also benefit from a gap, if the gap direction is in your favour. But the point here is that the occurence of gaps reduces your power to control risk with a stop loss order. The Forex market is virtually always open from Monday to Friday. There can be wild intraday moves caused by news, but the occurence of gaps is very rare within the week.

These are just two of the potential advantages the Forex market offers to traders. There are many others that I will not cover here, from the cost of trading (commissions are often zero), to the amount necessary to open an account (which can be very low). All these factor explain why the Forex market is attracting more and more traders.

Where to start? My recommendation is INO TV's Free Video Trading Lessons

Other alternatives

Learn Forex Live.
The Traders Club!
Trendlines.TV
Forex Candlesticks Made Easy!

Cheers

Jay Alkepong

Online Forex Trading

2009-07-07T08:24:00.000-07:00

Online forex trading is now an alternative for just about anybody to venture into this lucrative business with very small capital. This especially so as 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.

With jut as little as US $ 250 in your account, your can to get in one of the biggest, and most exciting, opportunities that has come along in decades, and you can even trade at home. On forex trading is made possible with a number of foreign currency trading platform such as the meta trader which most brokers will supply it once you opened an account with them. Just install it and you are ready to trade.

Consider these

1.Lower margin
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
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
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
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 $3.98 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.

However, 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.

Where to start? My recommendation is INO TV's Free Video Trading Lessons

Other alternatives

Learn Forex Live.
The Traders Club!
Trendlines.TV
Forex Candlesticks Made Easy!

Thats it for now