Saturday, May 31, 2008

A great article on online trading forex

Why You Should Get Started With Mini Forex Trading


If you are new to the world to currency trading and aren?t ready for a full time Forex trading account find out why you should get started with a Mini Forex Trading account. With just a couple of hundred dollars you can set up a Mini Forex Trading account and enjoy many of the same privileges that a full account enjoys.

A normal Forex account requires you to put a minimum of $2500 into the account and for many that?s far more than they have to play with or want to play with. That?s why you should get started with a Mini Forex Trading account.

A Mini Forex Trading account let?s a person play, find out if they like what they see, and decide whether it?s an investment portfolio that appeals to them and it?s why you should get started with a Mini Forex Trading account.

Although there are some restrictions on the mini account there are very nominal. A Mini Forex Trading account handles 10% of what a standard account is and the PIP is also 10% and it is why you should get started with a Mini Forex Trading account.

When you get involved in mini trading you are actually marginal trading which means that you are borrowing money so that you can complete a trade without having to put the full amount up yourself. This is called leveraging and it?s why you should get started with a Mini Forex Trading account.

When you open your mini account and you put the minimum $250 in your account and that gives you 5 mini lots to trade. So see why you should get started with a Mini Forex Trading account? On a normal account the leverage would be 4:1 and the heavy leverage of 200:1 might be a bit hard to take but in Mini Forex trading this is not considered over leveraging.

The investor?s risk on a Mini account offsets the lower risk of losses which are 10% the amount that would be lost on a regular Forex trade. This actually makes it easier to run a trading strategy that is more disciplined. So you see why you should get started with a Mini Forex Trading account?

If you want to invest less than $10,000 using a Forex mini account is the way to go. Now that you know why you should get started with a Mini Forex Trading account what are you waiting for?

Copyright ? 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)


About the Author:

Joel Teo is the owner/webmaster of http://www.GlobalProsperity.info/ the free financial article directory.





Jumping Into Forex? ? Jumping Off A Cliff!


It is very, very simple: the Forex market can help make all your dreams come true or it can become a total nightmare and bleed you dry. As with anything in life, it helps to have a strategy in place to help guide present and future decisions. For Forex investors, there are a lot of options from which to choose, including:

? Scalping
? Swing
? Position
? Discretionary
? Automated

All of the investment strategies listed above have been proven effective in various ways and no doubt have a track record to back up their effectiveness. Still, Forex investing and the specific strategy used will boil down to the investor and their particular style: Hunter or Gatherer.

A hunter is very careful about every investment they make and do not like surprises. This style of Forex investing tends to favor technical analysis. Technical Forex traders sift through pricing charts and back test currency pairs to determine the pair with the greatest pip movement and the least volatility. A hunter does not necessarily believe that they will make a profit with every investment but they do believe that currency pricing momentum can be predicted from historical data. Trend Forex investors tend to favor technical analysis, are patient, and believe that the charts and disciplined investing are the surest path to success.

The gatherers, however, tend to favor fundamental analysis which involves the interpretation of how interest rates and overall economic performance (of the nations involved in the currency pair) will affect exchange rates. Scalping is a strategy of foragers and involves trying to predict currency rate fluctuations for a few hours or days into the future.

Those who believe in the foraging investing style believe that the size and volatility of the Forex market works to their advantage. For instance, when interest rate change announcements are made, foragers believe that they can predict and react to the market faster than the large players. If they predict how the information will change the exchange rates, then they should reap a profit if they can buy a position fast enough. Sudden spikes in gold prices, interest rates, oil prices?all of these things do indeed temporarily affect the markets?but can the forager really capitalize quicker than the larger players?

In truth, the odds are always going to be with the larger players?especially when it comes to having access to breaking news and then reacting to it before the rest of us! This is probably why most Forex traders are considered hunters and opt to use technical analysis to identify trends and then capitalize on them. It is much easier and safer to identify and capitalize on emerging new large trends than to try and make a quick profit guessing at the smaller trends of daily price movement. For anyone serious about success on the Forex, technical analysis, in my opinion, is the best method for making consistent profits and avoiding those horrendous cliffs!


About the Author:

Article by Kent Douglas, author of "The Simple Forex Solution: The Easiest Currency Trading System Anywhere." To learn how you too can succeed in Forex and Currency Trading, please visit http://www.SimpleForexSolution.com





Day Trading Forex?might Be A Bad Idea!


The Forex market has understandably become one of the most attractive and popular financial markets in the world. Operating around the clock via a decentralized network of central banks, investment institutions, hedge funds, and similar institutions, the Forex market allows traders to speculate on the movement of currency exchange rates. Players of the Forex tend to like these features most:

? Round the clock action?the Forex market constantly adjusts and is open 24 hours per day between Sunday and Friday afternoon.

? Less problems with gap down (when price starts out lower than its previous ending price due to factors that occurred when the markets were closed)

? Huge leverage (can get 1:100 margins)

? High volume

? Live trading (most traders are connected to the Forex market via an Internet platform that provides them with real time exchange rates)

? Commission-free trades (but most brokers tend to get the difference between bid and ask price which tends to equal 3 to 5 tenths of a penny on most transactions)

While all of these are very attractive characteristics for any investor, the truth is that there are a lot of people who find themselves on the wrong side of a trend and suddenly in trouble because they try using day trading as an investment strategy. Day trading essentially boils down to making a series of short, small trades in hopes of making a quick profit. A rich idea with often a poor outcome.

People can and do make very good money trading on the Forex market but the most common trait of successful investors is the use of a proven investment strategy, patience, and using pre-determined stops after making certain to do your homework. The ability to understand the emergence and direction of trends through analysis is a common trait in successful Forex traders.

Because day trading often involves multiple transactions made in rapid succession in order to make a profit, it is very hard to properly analyze the day?s events and your charts. Day traders are more prone to fear-basic panic selling and other decisions that lose money and lower profitability.

Day trading is also not a good idea with the Forex market because transactions are almost always conducted at the very limit of the margins (typically 1/100, or $1,000 is all most investors have in a given Forex transaction of $100,000, or one lot of currency). Because of this, even small fluctuations in the wrong direction can and often do spell disaster for day traders.

Indeed, there are day traders out there claiming to make a good living trading Forex and they no doubt exist?but they are rare. The volatile nature of the market, the lack of information, and the extensive use of margins in Forex all combine and make day trading possibly a bad investment strategy?period.


About the Author:

Article by Kent Douglas, author of "The Simple Forex Solution: The Easiest Currency Trading System Anywhere." To learn how you too can succeed in Forex and Currency Trading, please visit http://www.SimpleForexSolution.com





course forex online trading Facts

Forex Trading Basics


What exactly is Forex Trading? When you exchange one country?s currency at the same time with another country?s it is known as foreign exchange, Forex or FX trading.

Most people are aware that when they travel from one country to another it becomes necessary to conduct trade in the currency of the country being visited. Knowing the value of various currencies at particular times can also be a great business venture because you can profit by trading one currency for another.

For example, if you buy the US dollar when it is rising in value against the Japanese yen, you can later sell it before its value begins to drop and make a tidy profit. Taking advantage of these timely dips and swells of the currencies on foreign currency market, you can make much money. Similarly, Forex traders who pay strict attention to a changing international currency market have the potential to earn big profits.

Buy Low Sell High
Forex traders deal with often complicated currency exchanges, however, successful Forex traders buy currencies when they are low in value and sell them at their peak. Although on the surface this sounds like just plain old common sense, in fact currency exchanges can rise and fall wildly within a few minutes. Holding on to a currency too long can result in a loss of value if the market for the particular currency begins to fall. So, timely and decisive responses are essential in securing a profit on every transaction.

Economic and Political Conditions
Currency values fluctuate because of events happening in the economic and political arenas of different countries. For example, a country that goes to war may see it currency drop in value, whereas, a country that reports robust economic growth, may also have a strong currency. Similar to the stock market, currency trading requires skill, luck and risk management. Successful Forex traders know when to hold a losing trade and when to get out. You cannot make money in this market if you are constantly worried about losing your initial investment. Sometimes you have to let a bad trade go and start over.


About the Author:

Get the latest in forex trading know how from the only true source at http://www.forextradingline.com . Check out our forex trading pages.





Online Currency Trading: Three Ways To Profit With Forex Trading


Online currency trading is an excellent way to make good money online. Suddenly what was once barriers is now a chance to become wealthy. And here is a business opportunity like never before. These three ways to profit with Forex trading will have you thinking.

1.Develop a better trading system ? each system can help make more profits. This is even more so when it is not connected to another system. Do ongoing research so that you find a new system that can make better projects. Sometimes a trading system will just stop working for whatever reason. You need to keep on top of this and dump out what ever isn?t working.

2.Add more traders ? each of your traders can only do so much work well. The trader will reach a point where there effectiveness is no longer of value. Let?s say your best trader trades 75 million dollars effectively but when he goes above that total he is no longer effective. The best thing to do is to add more traders. That is if you want to grow your business bigger.

You can also optimize the traders that you have making them more effective at what they are doing for your trading business. Coaching is a great way to help them improve and sometimes a bonus incentive program will be very beneficial.

3.Optimize your position by meeting all of the objectives that you have set out. You must start by clearly drawing out what those objectives are for the business. Too often this step is missed and it is quickly reflected on the profit margin.

You also need to determine your R value on the distribution of each system. You need to know this in order to make the right changes. You must also simulate different algorithms so that you can decide from the many thousands of possibilities that will best meet your obligations. Finally you have to apply that algorithm that you choose to your system.

Don?t expect to be able to pull off all three ways to profit with Forex trading at the same time. Sure it would be great if you can but don?t be too disappointed if you are unable to do so. After all it is all about the bottom line and you will want to get more efficient while at the same time not jeopardizing your income flow.

Copyright ? 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)


About the Author:

Joel Teo is the owner/webmaster of http://www.GlobalProsperity.info/ the free financial article directory.





My forex pivot points Reviews

FOREX beginners reading: Make money in foreign currency excahnge


I bet you are well aware of the existent of FOREX trading nowadays. FOREX market exists wherever one currency is traded for another. FOREX, or Foreign Exchange Market, is generally works as an international currency exchange market. Investors and speculators are allowed to trade currencies from all around the world thru FOREX trading. Major currencies traded nowadays are United States dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.

FOREX is a very unique type of trading where traders are buying and selling ?money? in the same time. The trades are done in pairs, such as Euro/JPY, USD/CHF, and CAD/USD. It is the world largest trading market where an average of $1.9 trillion trades is done on a daily basis. The turnover rates in FOREX are nearly 30 times larger than the total volume of equity trades in United States.

Despite its large volume of trades done daily, FOREX is relative new to the publics nonetheless. It is only made available to publics in year 1998 where big sized inter-bank units are sliced into smaller pieces and offered to individual traders like you and me. Before that, FOREX is a game only for banks, multi national cooperation, and big currency dealers. Only those with large business size and strong financial background were permitted to trade foreign currencies.

As a matter of fact, large international banks are still the major traders in currency exchange market. Deutsche Bank is one of the top currency traders; along with other major banks like UBS, Citi Group, HSBC, Barclays, J. P. Morgan Chase, Coldman Sachs, ABN Amro, Morgan Stanley, and Merril Lynch; these banks are said to be responsible for more than 70% trades in currency market.

If you are new to FOREX trading, I bet the FOREX quotes will confuse you. USD/JPY 119.8, EUR/JPY 127.95, EUR/USD 1.2385/1.2390, and GBP/USD 1.7360/65 ? these figures are just too complicated.

While FOREX quotes might looks like Greeks to the new comers, the concept behind of it is simple. Currency quoted in pairs simply means the relative value compare to the other. Always remember, currency listed at first in a FOREX quote has a constant value of 1. If you see USD/JPY 119.8, this means 1 USD (the first currency listed has a constant value of 1) is equal to 119.8 Japanese Yens. The currency USD in our example is known as base currency; while we normally call the currency listed in the second as the counter.

When you are trading FOREX with currency dealer, the FOREX quotes might look a bit different from our previous example. Often, a two-sided quote, consisting of ?bid? and ?ask? price, is listed when dealing with currency brokers. For example, EUR/USD 1.2385/1.2390: 1.2385 is known as the ?bid? price while 1.2390 is commonly known as the ?ask? or ?buy? price. The 'bid' is the price at which you can sell the base currency; while the 'ask' is the price at which you can buy the base currency. As you study the numbers, you might realize that the two-sided currency price is quoted against you. Traders are forced to buy the currency in a higher price than the selling one. This is done because FOREX trades are done without any commission chargers. Thru quoting currency ?bid & ask? price differently in this way, the currency brokers are manage to make profit without charging their client commission fees directly.

Strategies in FOREX trading: Fundamental analysis and Technical analysis

Fundamental analysis refers to the study of the core underlying elements that influence the economy of a particular entity. As in FOREX trading, government policies, bank policies, natural disasters, and speculators mood are some of the fundamentals considered to predict the currency market trends. Fundamental FOREX traders will review a country economy?s situation base on these fundamental elements and respond accordingly. To gain max, fundamentalists often apply precise method to convert study?s results into accurate entry/exit price indicator.

Instead of reviewing on the fundamental issues, traders from technical side define market movement according to data purely generated from the market. The term ?Technical? is applied in all trading fields, from commodity stocks exchange to option trading, from FOREX to futures.

Generally, the purpose of technical analysis is to find potential price reversal or pivotal points. These points basically refer the change of market trends, which then indicates when to enter or exit from the market. It is important to know that as with any other techniques in your trading system, these technical analysis indicators could be used alone or with other indicators. Traders are always recommended to learn more different technical methods to analyze different market data because none of these techniques are 100% accurate and 100% foolproof. Taking example of the ?price? data and the ?time? data, which are widely used by FOREX trader. There are some techniques consider solely on the ?price? factor, while some solely rely on the ?time? factor. The fact is if you know both technical methods, you can take both price and time into consideration during estimating market future trends. This will of course then reduce the risks of losing money in FOREX market. Also, it would be wise if traders combine both technical and fundamental techniques when trading FOREX, as a country currency value depends a lot on fundamental variables such as war, change of national leaders, terrorism attacks, as well as natural disasters.

Without a doubt, FOREX is gaining its popularity fast against other kind of trading. No limited market access, no liquidity issues-after market hours, zero commission fees, low capital requirements with high leverage rates, and no restrictions on short selling -- FOREX can be very beneficial to a variety of people. Like any other trading business, if you are new to it, best advice you can get is to learn and practice more before you test your ?wings?. Forex trading course, seminars, eBooks, Internet, papers, ? all these are helpful to raise your confidence level before you trade with your real hard-earn dollars. Plan your investment wisely by investing first on yourself; you shall get your reward at the end of the road.







Martin Leif Wear, experience Internet writer in Forex> www.pipforex.biz '>Forex trading. Learn> www.pipforex.biz '>Learn more on Forex at his new website: .> www.pipforex.biz .

The FOREX market- introduction for the fresh trader [Pt.1]



The Foreign Exchange Market literally grew out of the international financial market because of different countries' need of buying and selling each other's currency. This trading system is identical to the stock market in many ways. As in the stock market, people who trade in the forex influence the currency ratio (aka "price") according to the code of supply and demand. The forex is the most liquid and exceptionally financial market with gigantic sums (up to 1.5 trillion) of US dollars shifting in value per day. Due to its mammoth liquidity and its swift pace, it is improbable for neither an individual trader nor financial foundation to manipulate the market or affect the price of any currency for their own profit.


The forex market has an assortment of world centers: London, Paris, Frankfurt, New York, Sydney, Z?rich, Tokyo, Singapore and Hong Kong create a circle of 24 hours open market- across different time zones. Therefore there is always a demand and there is always a supply in any given time. Nowadays, especially with the Internet, a trader can seal a deal in a matter of seconds.


Unlike the stock market which is familiar with long-term investments, the forex is known for its possibilities to gain huge profits in an issue of minutes or a small movement change in a certain currency. There are long-term investors as well, mainly hedge investors. For every way of trading, there is a selection of tactics that may apply and systems to choose from, each way got its own compensations as well as shortcomings.



About the Author


Andrew Keynes is a long time FOREX trader. A husband and father of two, Keynes has proven himself and built his reputation as an expert to the Foreign Exchange market over many years.
He has successfully served as financial advisor to several large hedge funds and groups and is nowadays busy pushing his latest effort, www.forexblogs.net.

Should You Invest In The Forex Market Or In Stocks?


Stocks, or shares as they are more commonly called in the United Kingdom, have been the backbone of many investments for hundreds of years and often form the underlying investment in many traditional forms of savings plan, such as life insurance policies set up not only to provide life cover but also to produce a return on maturity.

Companies typically issue stock when they wish to raise capital and purchase of this stock represents a partial ownership in the company. In return many companies will often issue a share of their profits to stockholders in the form of an annual, or sometimes biannual, dividend payment. In addition, if the company does well the value of its stock will increase and stockholders may then profit from the sale of their stock.

Stocks are traded on a number of stock exchanges through brokers including the London Stock Exchange (LSE), the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ). There are also a number of other major stock exchanges around the world. In most cases stocks will be listed with one particular exchange, but larger international companies may well list their stock on several different exchanges.

Traditionally stocks have been seen as long-term investments and purchasers have normally been looking at buying stock to hold for periods of five years or more. Many stocks, often referred to as "blue chip" stocks, are issued by companies with long and proven track records and traditionally form the core of many investment portfolios.

Short-term trading in stocks is a relatively new phenomenon and has been made possible to a large extent with the arrival of Internet trading. Here day traders try to take advantage of often large daily movements in the market by buying and selling many times in a single trading period. This is however a fairly risky business and any profits made can quickly be reduced by broker commissions which are charged on every transaction.

The Forex, or foreign exchange, market is quite different from the stock exchange. The Forex market is principally a short-term market with most traders entering and exiting deals within a single day and, sometimes, within as little as a few minutes. Forex trades are also "commission free" which means that a large number of trades can be made without running up a large brokerage bill. In the Forex market brokers earn their money by setting a spread in the price for buying and selling, known as the asking and selling prices.

The Forex handles transactions worth $1.9 trillion every day is the largest financial market in the world. To really appreciate the size of this market you have only to compare it to all of the American stock exchanges which, combined, handle daily transactions worth about $100 billion. The huge volume Forex trading also means that it is one of the most liquid markets in the world and that there is almost always a buyer and seller for any currency as the world economy is based very largely on the movement of goods from one country to another. The stock market by contrast is far less liquid and many stockholders choose to hold their investments for considerable periods of time.

Unlike the stock markets, The Forex market has no central location and trading markets are located throughout the world. Also, because of differences in time as we move across time-zones, trades can be made 24 hours a day, 5 days a week. Trading begins in Sydney, Australia on Monday morning (Sunday afternoon New York time) and continues non-stop until Friday afternoon New York time.

Stock exchanges offer far more limited trading hours and, while it is theoretically possible to trade on stock markets in Japan while the American markets are closed, many stocks are only listed on specific exchanges and cannot be traded elsewhere. Most stock exchanges are open from Monday through Friday, typically for a period of seven hours each day.

The Forex market tends to be more predictable than stock markets and often follows fairly well established trends. It also allows traders to take advantage of leverage which is typically as high as 100 to 1 (against 2 to 1 found on most stock markets) which means that investors can participate in Forex trading with a minimal investment. Indeed many brokerages today offer mini Forex account which can be opened with as little as $250.

For more information about mini forex online trading accounts or to learn forex trading online please visit ForexOnlineTradingSystem.info