Saturday, October 20, 2007
The Exciting World Of Forex Day Trading
Forex trading is the largest known financial market. Day or night, it doesn't really matter; the trade goes on even as half of the world is asleep. It offers a lot of opportunities for many organizations and individuals to make profit. There are many day traders in the market, and if you think you can do it, why not join the day traders.
Once you decide to start to day trading, don't expect to learn everything about it in an instant. You will surely need to learn for some time, and you need to exert a lot of effort. Practice makes perfect, and forex trading requires a lot of it.
Before using real money, you can practice through simulated trading and do a paper trade. Here you can incorporate all your trading techniques and see if they actually work.
Don't be a scared to lose a certain amount of money, because any trade involves a lot of it. But it doesn't mean that you should not limit your losses, you can make use of stop orders. And most importantly, you should learn from your past losses.
A good trader by day should be disciplined. Make discipline a habit in order to make sound decisions, and act in accord with trading systems/strategies. This way, you can do your trade in a consistent and reliable manner. Certain situations require an individual to make decisions based on their pre-set criteria and parameters.
You should make it a point to habitually follow your trading system/plan; this way you can effectively evaluate the results of your plan. If your expectations are not met, perhaps its time that you make certain adjustments and fine tuning, so that your plan will still be of good use in the future.
Don't let your emotions rule you, especially when you're making trading decisions. A day trader should always be disciplined, and once you attain your objective, leave the market first. Oftentimes people plunge in deeper because they are influenced by greed and fear.
There are also day traders who are quite reluctant to lose money. For instance your stock goes down, and you're still hoping that after some time it will rise again. And to your surprise, the share price goes further down. If only you were not reluctant to lose money, you could have sold it the first time its price went down, and prevent further loss.
A day trader should leave no room for fear and greed to take over; otherwise, this will be the key to your losses.
If you're serious with your day trading, you can also do it at home. You would need hardware and software requirements to put a sufficient platform at home for online trading.
For your hardware requirement, you would need a computer with a Windows XP operating system or the like. The monitor should not be less than nineteen inches.
You must have a fast internet connection because day traders need to make fast executions and confirmations of the trade. They also need to receive and deliver quotes, news, and other pertinent market data. A fast internet connection allows you to make your day trading in a timely fashion.
Execution services are available online, and it comes in two types: the internet-based discount brokers and the online systems or the EDAT. The first type varies on how customer orders are executed, reviewed, and confirmed. This causes delay in completing a trade. On the other hand, the EDAT enables the trader to contact specialists directly. This results to a much quicker execution and confirmation of the orders.
Software platforms that are especially designed for day traders are often used by the more serious ones because real time data are usually provided like stock ticker and quotes, market indices and averages, charting, market stories, and price alerts. However, you would need to make monthly payments because this type of software usually charges fees.
Becoming a day trader is easy, but only if you are quite serious with this kind of endeavors. Like any type of trade, it requires dedication, time and effort. If you are able to put all of these things together, then you will reap profits that you've never imagined.
Remember that trading Forex is risky and you can lose as well as gain money. Good Forex software will help you.
Saturday, October 13, 2007
WHY FOREX? -small capital to earn your first million!
The answer is simple. Forex can earn you lots of money. But on this note, I have to warn everyone that FOREX is a very risky trade! You must never invest all of your life savings in the FOREX market.
My reccommendation is to invest only $2000 in this market. With $2000, it is possible to earn $1,000,000 in one year. But this is based on high risk aggressive trading, and spending 2 hours starring at the computer screen every trading day. If this does not suit you, you can also spend only 10mins a day but your earnings become smaller. Maybe about $20,000 after one year.
To try trading, I reccommend opening an account with Easy Forex, simply because it is one of the easiest platform to use for beginners. Here is an introduction about FOREX by EASY-FOREX.
Forex? What is it, anyway?
The market
The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover. (click here to read full market background by Easy-Forex™).
Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.
How does one profit in Forex?
Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.
The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200). If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes.
Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.
You can implement your choice (the pair of currencies, the volume amount) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down: you can always decide to buy Euro and sell dollar, or vice versa - buy dollar and sell Euro. You don't have to physically possess certain currencies in order to perform "buy" or "sell" with them.
How do I start?
Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading "margin" amount (credit cards are welcome, only by Easy-Forex™); start trading.
It can't be simpler or easier than that. Need help? We'll provide you with 1-on-1 training and service, as much as necessary (Easy-Forex™ offers real people service, live, in your own language).
How do I trade Forex?
You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the "margin" (collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say: 1% or 1:100).
Before you finally activate the deal, you can still "freeze" it for a few seconds. That enables you to either change the terms, or accept it as is, or altogether regret the whole idea. The "freeze" feature is a unique service by Easy-Forex™.
When your Forex deal is running (you hold an "open position"), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any). Moreover, Easy-Forex™ lets you determine a "take-profit" rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.
Want to know more? Want to get on-line training? Register here (simple, quick, no obligation), we'll be glad to guide you, every step of the way.
Good luck!
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
My reccommendation is to invest only $2000 in this market. With $2000, it is possible to earn $1,000,000 in one year. But this is based on high risk aggressive trading, and spending 2 hours starring at the computer screen every trading day. If this does not suit you, you can also spend only 10mins a day but your earnings become smaller. Maybe about $20,000 after one year.
To try trading, I reccommend opening an account with Easy Forex, simply because it is one of the easiest platform to use for beginners. Here is an introduction about FOREX by EASY-FOREX.
Forex? What is it, anyway?
The market
The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover. (click here to read full market background by Easy-Forex™).
Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.
How does one profit in Forex?
Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.
The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200). If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes.
Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.
You can implement your choice (the pair of currencies, the volume amount) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down: you can always decide to buy Euro and sell dollar, or vice versa - buy dollar and sell Euro. You don't have to physically possess certain currencies in order to perform "buy" or "sell" with them.
How do I start?
Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading "margin" amount (credit cards are welcome, only by Easy-Forex™); start trading.
It can't be simpler or easier than that. Need help? We'll provide you with 1-on-1 training and service, as much as necessary (Easy-Forex™ offers real people service, live, in your own language).
How do I trade Forex?
You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the "margin" (collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say: 1% or 1:100).
Before you finally activate the deal, you can still "freeze" it for a few seconds. That enables you to either change the terms, or accept it as is, or altogether regret the whole idea. The "freeze" feature is a unique service by Easy-Forex™.
When your Forex deal is running (you hold an "open position"), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any). Moreover, Easy-Forex™ lets you determine a "take-profit" rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.
Want to know more? Want to get on-line training? Register here (simple, quick, no obligation), we'll be glad to guide you, every step of the way.
Good luck!
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
Friday, October 12, 2007
THE SUPER BASICS OF FOREX
1. Currency pairs
The forex market is almost similar to the stock market. Instead of buying shares, you buy or sell currency pairs in FX (short form for Foreign exchange).
Currencies are traded in pairs, the 4 main pairs that are the most active are:
EUR/USD
GBP/USD
USD/JPY
USD/CHF
Each currency pair is made up of a base currency and a quote currency.
The base currency is the first currency and this is being bought or sold using the quote currency.
Currency pairs are traded in lots or mini lots.
1 lot is 100,000 units, while 1 minilot is 10,000 units
When you buy 1 lot of EUR/USD quoted at 1.4000, you are buying 1 lot of Euro dollars (100,000 Euro dollars) using 1.4000*100,000= 140,000 US dollars.
2. What is PIP
In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the smallest unit for price change. For most currency pairs, 1 pip is the 4th decimal place except the USD/JPY pair where 1 pip is the 2nd decimal place.
When you trade 1 lot of EUR/USD, 1 pip gain in price equals 100,000 * 0.0001 = USD 10 gain
When you trade 1 minilot of EUR/USD, 1 pip gain in price equals 10,000 * 0.0001 = USD1 gain
3. What is spread
Currency pairs’ quotes consist of a 'bid' and 'ask':
The 'bid' is the price at which you can sell the base currency
The 'ask' is the price at which you can buy the base currency
Spread is the difference between the ‘bid’ and ‘ask’ price.
In EUR/USD, a 2 pip spread is quoted as 1.2500/1.2502
The broker earns money from this spread instead of charging commissions.
4. LONG and SHORT
When you buy a currency pair, you are going long on the currency pair, when you sell a currency pair you are going short.
5. Technical Analysis
Using technical indicators like Stochastics, moving average to identify patterns in the market.
6. Candle stick charts
It is one of the most commonly used chart. If the price closes higher than previously, the candle will be green colour. If the price closes lower than previously, the candle will be red.
7. How to earn so much with so little capital?
The answer lies in LEVERAGE. Leverage enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 2,000 deposit can command positions of up to USD 200,000 through leverage.
The forex market is almost similar to the stock market. Instead of buying shares, you buy or sell currency pairs in FX (short form for Foreign exchange).
Currencies are traded in pairs, the 4 main pairs that are the most active are:
EUR/USD
GBP/USD
USD/JPY
USD/CHF
Each currency pair is made up of a base currency and a quote currency.
The base currency is the first currency and this is being bought or sold using the quote currency.
Currency pairs are traded in lots or mini lots.
1 lot is 100,000 units, while 1 minilot is 10,000 units
When you buy 1 lot of EUR/USD quoted at 1.4000, you are buying 1 lot of Euro dollars (100,000 Euro dollars) using 1.4000*100,000= 140,000 US dollars.
2. What is PIP
In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the smallest unit for price change. For most currency pairs, 1 pip is the 4th decimal place except the USD/JPY pair where 1 pip is the 2nd decimal place.
When you trade 1 lot of EUR/USD, 1 pip gain in price equals 100,000 * 0.0001 = USD 10 gain
When you trade 1 minilot of EUR/USD, 1 pip gain in price equals 10,000 * 0.0001 = USD1 gain
3. What is spread
Currency pairs’ quotes consist of a 'bid' and 'ask':
The 'bid' is the price at which you can sell the base currency
The 'ask' is the price at which you can buy the base currency
Spread is the difference between the ‘bid’ and ‘ask’ price.
In EUR/USD, a 2 pip spread is quoted as 1.2500/1.2502
The broker earns money from this spread instead of charging commissions.
4. LONG and SHORT
When you buy a currency pair, you are going long on the currency pair, when you sell a currency pair you are going short.
5. Technical Analysis
Using technical indicators like Stochastics, moving average to identify patterns in the market.
6. Candle stick charts
It is one of the most commonly used chart. If the price closes higher than previously, the candle will be green colour. If the price closes lower than previously, the candle will be red.
7. How to earn so much with so little capital?
The answer lies in LEVERAGE. Leverage enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 2,000 deposit can command positions of up to USD 200,000 through leverage.
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