If you want to earn extra cash aside from the cash you earn from your regular job or your business, maybe it’s time to you to enter the financial market. One kind of financial market that made a lot of people earn a lot of money is the Forex market.
Aside from the fact that the Forex market can give you an opportunity to earn a lot of money, you should also know that Forex is the largest and the most liquid financial market in the world with trade exchanges that amounts up to trillions of dollars each day.
Forex also operates 24 hours a day and therefore making it the most liquid market in the world.
However, Forex is also a very risky market. Besides that fact that it generated a lot of people to become rich, it also made a lot of people lose large amounts of money. Therefore, you should consider that you should think twice before entering this financial market. You should have enough knowledge and skills before you enter this market. Part of the knowledge that you should know the best time you should enter this very liquid and very large market.
Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts. Perhaps, you also know one or two strategy when trading in the Forex market. However, you should also consider the fact that because the Forex market operates 24 hours a day, you need to know when you should trade.
Every minute in the Forex market counts. One minute you notice a currency is increasing in value, the next you notice that the same kind of currency you noticed a minute ago is decreasing in value. This is why you should consider the fact that Forex market is a very dynamic market with lots of price oscillations.
Minute by minute events are very important in order for you to be successful. Because of this feature that is found in the Forex market, you, as a Forex trader, can enter the market a number of times a day. This will allow you to earn some profits after every number of trades you do and perhaps maybe even lose one if you made the wrong trading decision.
Firstly, you have to remember that the Forex market beings at Sunday at 5PM EST to Friday at 4PM EST then it beings again at 5PM EST. Trading begins in Forex at New Zealand next at Australia followed by Asia, in the Middle East, Europe and ends in America. The major markets in Forex are London, Tokyo and New York with trading activities the heaviest when major markets overlap.
Basing from the times, you will see that there will always be someone anywhere in the world who is buying and selling currencies. You will see that when one market closes, another market opens. Trading in the Forex market is 24 hours a day.
Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market and the US market opens at the same time.
These are the trading hours in the Forex market you have to trade in, in order to get the highest possible trades. This are the hours that are also the most profitable.
Here are the open market times that you can use as reference:
• New York – 8am to 4pm EST
• London – 2am to 12nn EST
• Great Britain – 3am to 11am EST
• Tokyo – 8pm to 4am EST
• Australia – 7pm to 3am EST
If you look at the schedule and study it, you will see that there are two instances where two of the major markets overlap on trading hours. These are between 2am and 4am EST with Asian and European markets and 8am to 12pm EST with European and North American.
These are the things you should remember when trading in the Forex market. It is not only important that you know how to trade and know some strategies on Forex trading, But, you should also know when is the best time to trade in this very large and very liquid market.
If you follow all these, you can be sure that you can earn a potentially higher profit than on other trading times.
Effective Advices for Forex Trading Beginners
Not all people are familiar with forex trading. In fact, most people think that when you talk about forex trading, it has something to do with stocks or bonds. But forex trading is different from stocks or bonds. It involves the trading of currency pairs.
Currencies are traded in pairs, and you can't find a particular currency without a pair. The major currencies being traded are chosen above the rest because they are stable and have a greater value than other foreign currencies.
Every time a new comer arrives in the market, the very first ones to take notice of them are what you call frauds. That is why, if you're new in forex trading, you need to take some advice. It doesn’t hurt to ask for advice from the ones who are already engaged in forex trading. In fact, you can make use of their advice for your own good, and even to your advantage.
Since forex trading is globally available, it is not surprising if there are frauds that are able to infiltrate the financial market. To safeguard people from these frauds, they must be made aware of these growing fact, so that they will be able to protect their trading career.
The opportunities that forex trading provides for different individuals, firms, and organizations is growing rapidly every year. And accompanying this growth is the widespread growth of different scams related with forex trading. But you should not worry because there are a lot of legitimate companies or firms that can help you in forex trading.
The best thing to do is to find these legitimate companies to stay away from fraudulent ones. However, most new traders fall prey to these scammers because of their savory offers.
A piece of advice: stay away from companies or firms which advertise high profits for minimal risks. In today's financial market, if you want to earn high profits, then you are likely subjected to high risks as well. These things always go together.
Always stay on the safe side. If you're looking for a forex trading broker, and of course, each broker is part of a certain company, make sure that you select a government registered company. In signing any contract with them, double check if they are registered or certified brokers. This is a good step to undertake in order to prevent any misfortune that you might encounter in the future.
The job of reducing the risk is entirely yours, not that of the broker; so if the company offers or promises little risks, guaranteed profits, and the like, that is a sure sign that they are there to make a fool out of you.
Professional trader or not, a little use of the common sense can go a long way.
Before doing any forex trade, do your homework. Research all the necessary details about trading. Ever heard of inter-bank market? Stay away from companies which lure you into trading in the inter-bank market because the currency transactions are negotiated in a wobbly network of large companies and financial institutions.
If a certain company does not disclose any information about their background, that should serve as a red flag. It means that you should continue doing transactions with them. Nor is it advisable to transfer/send cash through the mail or the internet. Practice caution in everything you do, and you'll be more than sure that you are always safe.
Fraudelent companies often solicit services and advertise soaring pressure tactics to attract you in participating or joining their services. Offshore companies which guarantees no risk and return of profit is a big no. Always be skeptical and don’t jump in to any instant offer that comes your way.
You can decide for yourself. After all these pieces of advice, it will still depend entirely on you whether you will apply it or not. You are the one who will be subject to fraudulent individuals or companies. If you want to protect your forex trading career, carefully consider these things.
With patience and a little diligence, you can expect for a successful forex trading career. These frauds which abound in the financial market will not succeed if only people are alert and skeptical.
Currencies are traded in pairs, and you can't find a particular currency without a pair. The major currencies being traded are chosen above the rest because they are stable and have a greater value than other foreign currencies.
Every time a new comer arrives in the market, the very first ones to take notice of them are what you call frauds. That is why, if you're new in forex trading, you need to take some advice. It doesn’t hurt to ask for advice from the ones who are already engaged in forex trading. In fact, you can make use of their advice for your own good, and even to your advantage.
Since forex trading is globally available, it is not surprising if there are frauds that are able to infiltrate the financial market. To safeguard people from these frauds, they must be made aware of these growing fact, so that they will be able to protect their trading career.
The opportunities that forex trading provides for different individuals, firms, and organizations is growing rapidly every year. And accompanying this growth is the widespread growth of different scams related with forex trading. But you should not worry because there are a lot of legitimate companies or firms that can help you in forex trading.
The best thing to do is to find these legitimate companies to stay away from fraudulent ones. However, most new traders fall prey to these scammers because of their savory offers.
A piece of advice: stay away from companies or firms which advertise high profits for minimal risks. In today's financial market, if you want to earn high profits, then you are likely subjected to high risks as well. These things always go together.
Always stay on the safe side. If you're looking for a forex trading broker, and of course, each broker is part of a certain company, make sure that you select a government registered company. In signing any contract with them, double check if they are registered or certified brokers. This is a good step to undertake in order to prevent any misfortune that you might encounter in the future.
The job of reducing the risk is entirely yours, not that of the broker; so if the company offers or promises little risks, guaranteed profits, and the like, that is a sure sign that they are there to make a fool out of you.
Professional trader or not, a little use of the common sense can go a long way.
Before doing any forex trade, do your homework. Research all the necessary details about trading. Ever heard of inter-bank market? Stay away from companies which lure you into trading in the inter-bank market because the currency transactions are negotiated in a wobbly network of large companies and financial institutions.
If a certain company does not disclose any information about their background, that should serve as a red flag. It means that you should continue doing transactions with them. Nor is it advisable to transfer/send cash through the mail or the internet. Practice caution in everything you do, and you'll be more than sure that you are always safe.
Fraudelent companies often solicit services and advertise soaring pressure tactics to attract you in participating or joining their services. Offshore companies which guarantees no risk and return of profit is a big no. Always be skeptical and don’t jump in to any instant offer that comes your way.
You can decide for yourself. After all these pieces of advice, it will still depend entirely on you whether you will apply it or not. You are the one who will be subject to fraudulent individuals or companies. If you want to protect your forex trading career, carefully consider these things.
With patience and a little diligence, you can expect for a successful forex trading career. These frauds which abound in the financial market will not succeed if only people are alert and skeptical.
Foreign exchange market is different from the stock market
The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970's. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries.
What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries.
What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
Do You Have A Back Up Plan?
I know a woman in her sixties. She worked for a company for a little more than a decade as an administration and office assistant for a staff of one hundred sales people, who loved her dearly. She always made sure all the faxes got to their desks; the stationery stock was full and each staff member had what he needed.
Beyond her job description, she was like a mother to all of them: making sure the toilets got cleaned, old food was removed from the fridge and decorating the entire floor which the department occupied. She worked hard and never complained. She was always smiling, friendly and polite.
She felt good about being a 'mother' to all the people who entered and left that department. She was comfortable with her position. No-one else could do the things she did. And she did them better than anyone else in the building.
One day, she went to work as usual. After doing her morning chores, she was invited to the office, where she was told her services were no longer needed. The company was undergoing certain cost-cutting measures in every department and unfortunately, her role would have to be sacrificed. She was then asked to leave the building as soon as possible. She was assured, however, that before having made the decision, every attempt had been made to find a position for her somewhere within the company.
She has financial obligations to fulfil and she still hasn't saved enough for her retirement. She still has credit to pay off and she was saving for a trip overseas, something she never got around to doing in her younger years. She wanted to save up to establish a book-selling business. Suddenly, she would have to re-evaluate her plans. Losing a job and nearing retirement age, she will have to relinquish some of the things she had dreamt for herself.
I am sure you have heard hundreds of similar stories like these. Just five months before writing this article, I had already read about companies cutting costs by laying off jobs. Their main reason is to remain competitive, so they would not have to raise the prices they charge to their customers.
Companies are outsourcing jobs overseas because the labour costs in other countries are relatively cheap compared to the local currency and sometimes because of significant skills or technological advantages. Other businesses lessen staff when sales drop and they can no longer sustain to pay the same number of people they have on their payroll. No organisation – not even a big, established business – is immune from the need to become leaner in an ever-increasingly competitive market environment.
In the past, most people believed the companies or the governments – whom they work for – could guarantee them a job for life. Nowadays, I think more and more people are becoming increasingly aware that expecting to have a job-for-life is unrealistic. It is a dire predicament to be working everyday, taking care of someone else's business and realising that at the end of one's career, years of service do not guarantee one's well-being. Because of this, I believe that people are now looking to improve their chances of having enough funds to meet their needs and wants after retirement.
I think there is a dawning awareness that the ultimate responsibility for one's own well-being lies within each individual. People are beginning to understand that their boss or the company they work for does not have an obligation nor the ability to ensure that they are taken care of when they finish working for them.
According to an article written by John Roskam*, based on a forthcoming Institute of Public Affairs (IPA) Backgrounder on self-employment and the self-reliant society, the trend to self-employment will speed up in coming decades. Five reasons explain this change:
1. Our societies will continue to develop knowledge-intensive and service industries.
2. Jobs of the future need more education; however, better educated workers might opt to work for themselves instead.
3. Older workers are more comfortable with being self-employed than the younger workers, which might indicate individuals would prefer to work for themselves as they grow older.
4. Individuals want more control and flexibility over their working arrangements and self-employment allows for this.
5. Individuals are more willing to assume responsibility for the decisions that affect their lives and their families.
In addition to this trend, more and more people are now seeking to gain greater control over their financial assets.
1. Our societies will continue to develop knowledge-intensive and service industries.
2. Jobs of the future need more education; however, better educated workers might opt to work for themselves instead.
3. Older workers are more comfortable with being self-employed than the younger workers, which might indicate individuals would prefer to work for themselves as they grow older.
4. Individuals want more control and flexibility over their working arrangements and self-employment allows for this.
5. Individuals are more willing to assume responsibility for the decisions that affect their lives and their families.
In addition to this trend, more and more people are now seeking to gain greater control over their financial assets.
What we can all learn from this article is the idea that we do not have to rely on our employers to be there for us when we desperately need them to pay us our periodic paycheques at the end of our working days. There are alternatives and, while we still can, I believe we owe it to ourselves and our families to have a back-up plan and look at every single opportunity available. The question for you is this: Do you have a back-up plan?
FOREX Fundamental Analysis
Most FOREX traders rely on analysis to make plan their trading strategy. This article will discuss fundamental analysis.The other common form of analysis is technical analysis. After reading this article you should have a better understanding of fundamental analysis and how to use it as part of your FOREX strategy.
Political and economic changes are the basis of fundamental analysis. These can frequently affect currency prices. Traders that take advantage of fundamental analysis will gather their information from a variety of news sources. They are looking for information about unemployment forecasts, political ideologies, economic policies, inflation and growth rates.
Fundamental analysis will provide you with an overview of currency movements and a broad picture of the economic conditions.Most traders then will combine their fundamental analysis with technical analysis to plot actual entrance and exit points as well as confirming the information provided by their fundamental analysis.
Just like most markets the FOREX market is controlled by supply and demand. Many economic factors can affect the supply and demand but the two most critical ones are interest rates and the strength of the economy. The over all strength of the economy is affected by changes in the GDP, trade balances and the amount of foreign investment.
There are many economic indicators released by government and academic sources. These indicators are usually released on a monthly basis but will sometimes be released weekly. These are pretty reliable measures of economic health and are closely followed by all traders.
There are many indicators that are released but some of the most important and commonly followed are : interest rates, international trade, CPI, durable goods orders, PPI, PMI and retail orders.
Interest Rates -can cause a currency to either strengthen or weaken depending on the direction of movement. In some cases high interest rates will attract foreign money, however high interest rates will frequently cause stock market investors to sell of their portfolios. They do this believing that the higher cost of borrowing money will adversely affect many companies. If enough investors sell of their holdings in can cause a downturn in the market and negatively affect the economy.
Which of these two affects will take place depends on many complex factors, but there is usually an agreement among economic observers as to how the current change in interest rates will affect the general economy and the price of the currency.
International Trade - If there is a trade deficit (more items imported than exported) it is usually
considered a negative indicator. When there is a trade deficit it means that more money is leaving the country to buy foreign goods than is entering the country and this can have a devaluing effect on the currency. Usually though trade imbalances are already factored into the market consideration. If a country normally operates with a trade deficit then there should not be an affect on the currency price. The currency price will normally only be effected by trade differences when the deficit is greater than the market expected.
considered a negative indicator. When there is a trade deficit it means that more money is leaving the country to buy foreign goods than is entering the country and this can have a devaluing effect on the currency. Usually though trade imbalances are already factored into the market consideration. If a country normally operates with a trade deficit then there should not be an affect on the currency price. The currency price will normally only be effected by trade differences when the deficit is greater than the market expected.
The measurement of the cost of living (CPI) and the cost of producing goods (PPI) are a couple of other important indicators. You should also watch the GDP which measures the value of all the goods produced in a country and the M2 Money Supply which measures the total amount of currency for a country.
In the US alone there are 28 major indicators, these can have a strong effect on the financial market and should be closely watched. This information can be found many places on the internet and
is provided by many brokers.
is provided by many brokers.
All About Forex – What You Need To Know
In order to succeed successfully in forex trading you need to know what the purpose of trading forex is.
Forex trading as you know is the trading of online currency and the key to success is to buy low and sell high just as with any other market.
You task as a forex trader is to try to determine the trend of the particular currency you are looking to either buy or sell and to utilise the forex trading strategies to ensure that a profit is made.
Now that you know the purpose of forex trading the next step in knowing all about forex is to understand the codes, definitions and numbers used when trading. All currencies used in forex trading are assigned a three letter code.
An example of this is the US dollar which is USD or the Euro EUR. Online currency trading is done in combinations that are known as a cross and these are represented by 6 letter words with the more expensive currency coming first. An example of this is GBPUSD which will show you how many US Dollar you will need to pay for one British pound.
These rates are shown as five digit numbers for example GPBUSD = 1.6262 which means that 1 British pound is worth 1.6262 US dollars.
When the rate changes the change will be displayed in bold, eg GPBUSD = 1.6264 which will mean that the rate has moved by 2 points. Knowing this is the key to successful forex trading and your key to profit.
When you enter the forex trading market you will enter as a buyer or a seller of a particular currency. If you are a seller you price is known as the ASK price and the buyers price is known as the BID. You can only buy currency from a seller with an asking price the same as the BID price.
These are the main beginner's points to note when it comes to forex trading and knowing what the purpose of trading forex is and knowing all about forex before you enter into the market can make a big difference when it comes to your profits.
A Guide To Forex Trading
Trading money in the global markets can be great way to make more of it, it can also be a lesson in how to lose money quickly.
More than $1 trillion is traded every day on the foreign currency exchange (Forex), and yet no centralized headquarters or formal regulatory body exists for this form of trade.
Foreign currency exchange is regulated through a patchwork of international agreements between countries, most of which have some type of regulatory agency that controls what goes on within their respective borders.
Thus, the foreign currency exchange actually is a worldwide network of traders who are connected by telephone and computer screens.Although more international policing of money trading has occurred in recent years, authorities have had some successes exposing scams and frauds that victimize traders, especially newer ones
So if you want to try this wild world of trading, you need to be wary and not depend entirely on experts.
Sure, experts can help you in explaining the working of foreign exchange markets and how the language of the Forex and its risks are unique, but you need a lot more training before you even consider entering this extremely risky trading arena.If you have ever traveled outside the United States, you have probably traded in a foreign currency. Every time you travel outside your home country, you have to exchange your country's currency for the currency used in the country you are visiting.
If you are a US citizen shopping in England and you see a sweater that you want for 100 pounds (the pound is the name of the basic unit of currency in Great Britain), you would need to know the exchange rate. And that's the way foreign currency exchange is used by the average shopper, but foreign currency traders trade much larger sums of money thousands of times a day
7 Reasons To Trade The FOREX Market.
More and more savvy investor and entrepreneurs are shunning traditional financial markets, like stocks, bonds and commodities and building their fortunes in the foreign exchange (forex) marketplace.
The reason why they are turning to the all electronic world of Forex trading is its numerous advantages over any type of investments.
Even if you are an experienced Stocks or Commodities trader you will discover how powerful the Forex is.
You can make $200 to $3000 in less than 30 minutes of work everyday.
Forex Trading is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.
Why should you trade the forex market?
Here are the reason why...
1) The forex market is open 24 hours, it never sleeps.
You can enter a position, or exit whenever you want, whenever you are six days a week. You do not need to wait for the opening bell like if you was trading stocks. it is excellent for you as you choose the best time for you to trade.
You can enter a position, or exit whenever you want, whenever you are six days a week. You do not need to wait for the opening bell like if you was trading stocks. it is excellent for you as you choose the best time for you to trade.
2) The daily trading volume of the Forex is around $1.5 trillion dollars
It is 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock would have daily!
It is 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock would have daily!
3) You profit in both raising market or falling market.
You have equal potential to profit in both a rising or falling market, because it' s up to you to buy a currency, or to sell it, after you determined the market trend tendency.
You have equal potential to profit in both a rising or falling market, because it' s up to you to buy a currency, or to sell it, after you determined the market trend tendency.
4) You can trade from anywhere.
If you like to travel, this is a dream business, you just take your lap top with you and that' s it, you can make money from anywhere in the world, all that you need is to be sure that you can access an Internet Connection.
If you like to travel, this is a dream business, you just take your lap top with you and that' s it, you can make money from anywhere in the world, all that you need is to be sure that you can access an Internet Connection.
5) The leverage is considerable.
In fact, you don' t need a lot of money to trade forex, it is recommended to start with $2000, but you can start with $300, then if you have a proved strategy, your investment will grow consequently, as you can trade up to 200 times your investment. You can trade 100,000- unit currency lots with as little as 1% margin, or $1,000. there is no comparison with the stock market where you need a big amount of money to start, if you want to see real profits. And beside that, you need to post 50% margin.
6) Price Movements Are Highly Predictable.
Price movement or highly volatile in the forex, however, the foreign currencies market is moving in trends, and you can identify these trends - as they repeat in cycle- with the technical analysis.
Price movement or highly volatile in the forex, however, the foreign currencies market is moving in trends, and you can identify these trends - as they repeat in cycle- with the technical analysis.
7) No commission fees.
Unlike the stock market, brokers don' t take commission on transaction.
Unlike the stock market, brokers don' t take commission on transaction.
To trade forex, you don' t need to have a lot of money to start; you can trade at any time, from anywhere, with a Internet connection, you will not have an order pending because of lack of liquidity, you will not have to work all during the day.
The forex market has many advantages over the other traditional investments, and for sure, it will give you more freedom, and more money.
How To Make Money Trading Forex, The Trade Process
On the forex market we are trading currencies, exchanging a currency
for another. So we buy a currency hoping its value will increase
compared to the value of the one we are selling. Yes, we, at the same
time, buying a currency and selling another currency. An example may be a
little more understandable.
We bought 1 euro for $1.25 and sell it back for $1.35, we made a 10 cents profit. Of course on the forex market you will not buy only one euro, this will be few hundreds or thousands, depending on your budget and the leverage offered by the broker.
Exchange rates are always moving. When I say that you "hope" the value will increase, many factors can be used to predict the rate, based on technical or fundamental analysis. This is not the topic of this article so let's have another example of a selling trade.
We take the same pair (EUR/USD) as above starting with the same exchange rate (1.25). We want to sell euros so we can buy it later at a lower price. Here we hope, or know that the value of the euro will depreciate. We sell one euro for $1.25. The exchange rate drops to 1.15. That means that now we only need 1.15 to buy our euro back. We exchange our dollars back into euros and again, make a 10 cents profit.
When you buy or sell, you always buy or sell the base currecy. The base currency is the first one in the pair. In the pair EUR/USD, the base currency is the euro and the USD is called the quote currency. When you decide to buy, you buy euro and sell dollars. When you decide to sell, you sell euros and buy dollars.
Think that you always need to exchange something two times. If you buy something and want to make a profit from it, you would prefer to sell it at a higher price. And so, if you are selling something that you will need to buy again, you would prefer to have it at a lower price.
Forex Education: Learning the Basics
Trading currencies can be a great way to make money, unfortunately a lot
of people are afraid to try it. The biggest reason that people are
afraid of trading forex is that they are confused by how the process
works. There is no doubting that if all of your trading experience is in
stocks you will find things to be very different. However once you pick
up the b...
asics the rest will fall into place pretty quickly.
The area that gives a lot of people the most trouble when they start learning how to trade forex is the terminology that is used. If you come from a background of trading stocks you will notice that it is quite a bit different. Before you even start trading forex the first thing that you are going to have to learn is the terminology. It will take you a little bit of time but once you start working with forex and making some practice trades you will pick it up pretty quickly.
The next thing that you have to make sure that you understand before you can start trading forex is the way that prices are determined. Again this is very different than the way it occurs on the stock market. The big thing here is to realize that the value of one currency is measured against another. That means that when you are trading currencies you are actually trading them in pairs. You really only care about how the currencies move against each other. They may both decline relative to a third currency and it will have no impact on your trade.
One other thing that you are going to have to learn if you are going to trade currencies is how to actually make a trade. This is another of those things that you will find is different than you are used to but once you start doing it you will pick it up pretty quickly. The main reason for the difference is the fact that you do have to trade currencies in pairs, once you get that down the actual trading process will start to make a lot more sense. It is also important to realize that because of the huge amounts of leverage you get when you trade forex that small moves in the price can have a huge impact, this also affects how trades are made. When currencies are traded the moves in price are measured by pips which is just a way of keeping track of price changes that are very small. You will get the hang of it pretty quickly once you start making trades.
It can be a challenge to make the right forex trade. This is why forex education is some important in helping you to make profitable trades profitable trades.
The area that gives a lot of people the most trouble when they start learning how to trade forex is the terminology that is used. If you come from a background of trading stocks you will notice that it is quite a bit different. Before you even start trading forex the first thing that you are going to have to learn is the terminology. It will take you a little bit of time but once you start working with forex and making some practice trades you will pick it up pretty quickly.
The next thing that you have to make sure that you understand before you can start trading forex is the way that prices are determined. Again this is very different than the way it occurs on the stock market. The big thing here is to realize that the value of one currency is measured against another. That means that when you are trading currencies you are actually trading them in pairs. You really only care about how the currencies move against each other. They may both decline relative to a third currency and it will have no impact on your trade.
One other thing that you are going to have to learn if you are going to trade currencies is how to actually make a trade. This is another of those things that you will find is different than you are used to but once you start doing it you will pick it up pretty quickly. The main reason for the difference is the fact that you do have to trade currencies in pairs, once you get that down the actual trading process will start to make a lot more sense. It is also important to realize that because of the huge amounts of leverage you get when you trade forex that small moves in the price can have a huge impact, this also affects how trades are made. When currencies are traded the moves in price are measured by pips which is just a way of keeping track of price changes that are very small. You will get the hang of it pretty quickly once you start making trades.
It can be a challenge to make the right forex trade. This is why forex education is some important in helping you to make profitable trades profitable trades.
5 Secrets of Successful Forex Traders
Trading Forex is not difficult. But only if you do things the right way!
In fact, if you have been studying Forex for a while you certainly already know what you need to do.
However, the real challenge is not to know what to do but to do it correctly.
Let's look at what pro Forex traders are doing in order to make a very comfortable income trading from home...
In fact, if you have been studying Forex for a while you certainly already know what you need to do.
However, the real challenge is not to know what to do but to do it correctly.
Let's look at what pro Forex traders are doing in order to make a very comfortable income trading from home...
1. They don't try to predict the market
Professional Forex traders know they can't predict the market. And, unless you have some kind of psychic power, neither do you.
What successful Forex traders also know is that you don't need to be able to predict the market in order to profit from it.
Forex trading is a probability game. To win it, you need to make sure you have a system in place that allows for bigger wins than losses over the long term. Which brings us to the second point...
2. They have a system in place
Forex traders are not gamblers. They don't enter a trade just because they feel it will go the way they want it to go!
Instead, Forex traders use their experience and data in order to build a precise system allowing them to know when to:
-enter the trade;
-exit the trade;
-take profits.
Note that everything is set up in advance. They already know under which conditions they will exit the trade. Most importantly, they always stick to their rules.
Intelligent traders build very precise and rigid systems, helping them to leave emotions out of the way!
3. They leave emotions out of their trading
You have certainly read about this before. But do you really trade without emotions?
Trading without emotions basically means that you just follow your system, even after a series of losses.
Trading without emotions also means that you are in control at all time and never switch to "gambling" because you "feel" the trade.
Successful traders never rejoice over the winning trade. They rejoice over the cause (the system) of the win!
4. They understand the value of experience
Most wannabe traders are looking for the magic system which will make them rich over night. And if they can't make a profit within their first month of trading, they quit, arguing that Forex trading is just a scam.
However, right now, they are traders making very large amounts of money days in and days out. Why?
Because they learnt from experience. They adapted their trading and progressively managed to make a profit over time.
They understood that losing was part of the game and their experimentations necessary for them to grow into professional traders.
5. They have realistic goals
Linked to the previous point, most traders want to make millions in a few months, starting with $1,000. This is not going to happen.
A successful trader knows what he is capable to make and adapts his goals accordingly.
Of course, month after month, year after year, he increases his goals, as he learns more and improve his system.
In fact, when starting off, the Forex trader should not be worried about the money made but about the return on investment he is capable to make.
It is much better to make $120 with a $1000 investment (12%) than $200 with a $10,000 investment (2%)!
How to read the indicators Belkhayat
To analyze the graph of Mostafa El
Belkhayat uses 2 indicators that are based both on the concept of center of gravity of a stock movement.
1.
The first
indicator, Belkhayat Gravity center, calculates the center of gravity dynamic
market. It is represented by parallel stripes which appear to serve with
supports and resistance.
2.
The
indicator Belkhayat Timing, calculates the center of gravity static. It is
represented by the chart below the price chart and provides areas for optimal probability to buy
or sell.
Reading both of these indicators can have
immediate visibility on the evolution likelihood of a market without the need
for comments. At a glance, the reader will know whether to buy, sell or wait
and do nothing.
The indicator Belkhayat gravity centre:
This indicator uses a mathematical formula developed (polynomial nonparametric
regression) that first to calculate the center of gravity of a moving stock (blue line) and 3 standard
deviations to upwards (red stripes) and 3 to the decline (green strips). The amplitudes of these deviations
are always proportions golden ratio 1.618. And we will, after studying this indicator
on a hundred different markets that the magic number is well printed in the
brains of human beings, whatever race or origins.
1- The first finding is that all financial markets
oscillate around its center gravity. They exaggerate the up or down from a consensus price or less unconscious.
2- The
amplitude of these exaggerations is not random, rather the contrary: as seen on
graph above (the market for U.S. Treasury bonds), the amplitude is very often equal to the exact number of gold from the center of gravity dynamic. As if human exaggeration is highly dependent on the number of gold.
3- The blue curve, representing
the dynamic center of gravity gives us so immediate and visual direction of the current market trend is downward. Since
the blue curve is bent down.
4- The
extreme red lines and green indicate the amplitude of breathing of
the market. Otherwise That is, its volatility. It is also an immediate and easy reading because
visual. Like all markets vary in elasticity relative to their center of gravity, they are
extreme of paramount importance to make decisions to buy or sell.
5- The basic principle of the indicator Belkhayat
barycentre is simple: when the price in the area contained by the two red curves,
it is in an area conducive for sale, because the
probability that the market return, like a rubber band, to its center of
gravity is approximately 90%) and vice versa when the price falls within the
lower area contained by the lines green.
6- The corollary of this principle is not
recommended to buy when the price is at above the center of gravity, or sell when it is below.
The indicator Belkhayat barycentre is
dynamic and is calculated (and therefore change) each period of
4 hours (240 minutes). It is the "time frame" of the graph, or periodicity. It therefore adapts as with the progress of the market while making the historic past of the 250 periods.
4 hours (240 minutes). It is the "time frame" of the graph, or periodicity. It therefore adapts as with the progress of the market while making the historic past of the 250 periods.
To optimize the technical analysis, we included an indicator based on the revolutionary gravity centre static indicator Belkhayat Timing. Reading both of these indicators provides immediate visibility of the likely evolution, in the short term, any market fellow.
Belkhayat Timing Indicator
This indicator is an oscillator that provides 3 types of very important areas:
·
The "dark"
environment that represents the area centroid. When the price is in this area, it is recommended to do nothing because the probability of
being right (or wrong) is about 50%. It is a neutral zone where he must show patience and prepare for next position.
·
The "gray"
areas represent extreme where it is recommended to take profits. Liquidate its position in the "gray" contained by the red
lines and redeem its position in the "gray" contained by the green lines. And this, of course, in agreement with the basic principle of the indicator Belkhayat
gravity center.
·
The white
areas beyond the extremes, called alert zones, which issue signals for buying and selling high probability of success.
Basic rule of Belkhayat:
When the indicator Belkhayat Timing, the
zone alarm is crossed, we check if it corresponds to an area of extreme indicator Belkhayat gravity centre. If so, then the
probability that the valid signal is greater than 80%.
This system of analysis, very easy to use, is of considerable power. With experience, the eye observes and detects in a fraction of a second what to do, even when the market seems complicated. For a simple reason: we offer mathematics benchmarks that are more or less unaware of by the majority of traders. Benchmarks that allow us to know in advance the area of prices where they are given appointments without even knowing.
Mostafa Belkhayate Forex System
When you are looking at trading in currency, it can be nearly impossible to find the proper system to use, unless you know about the Mostafa Belkhayate forex system. The problem is that many people have never considered the MBFX forex system and they will not even know about the reasons why they should be using this system versus any of the other systems that are available for them to use. Once they have learned that this system was made by an actual trader with over twenty seven years of experience, this is the system that he has used to make his own millions of dollars in trading, and it will adapt to suit the needs of each individual, it will be very easy for people to see why they should be using this system versus any other.
Honest Mostafa Belkhayate Forex System Review
Using the Mostafa Belkhayate Forex System people will see that he is an actual trader. Now unlike some of the other systems that were developed by people that claim to be traders and have made millions, this gentleman will have the proof. In fact, if people research his name they could find that he has been given numerous awards that were presented to him by some of the most highly respected markets in the world. Some of those rewards were presented to him based off of him using the MBFX forex system.
The Mostafa Belkhayate Forex System is the exact one that this professional trader used to help him in making his millions of dollars. Since he used the MBFX forex system and is including the guide on how to use it, it will be fairly easy to see that you could follow in his footsteps. Without having that kind of assistance, though, people could have the problem of not being able to make the money and could easily be duped into using one of the other systems that has claimed to make money, but cannot provide the actual cash proof that it has done this because it could have lost it all the next day that it was working.
Individual needs will change for each person, but each person will need to realize the Mostafa Belkhayate Forex System will adapt to meet those needs. Without knowing about how the MBFX forex system will adapt to meet the needs, though, they could easily select the wrong one and that could lead to them not being able to make the money that they desire in any form.
Mostafa Belkhayate Forex System – Conclusion
Being able to use a system to make money in the Forex market can be difficult at time. However, if people know about the MBFX forex system and how nice it is, they will see that this could easily be the best system for them. Some of the main features that can be found is this is made by an actual trader, this same trader made several million dollars using this exact same system, and the Mostafa Belkhayate Forex System is rather adaptable for the specific types of trader that is going to be using the system.
Best Forex Trading Software
Reasons Why You Need the Best Forex Trading Software Do not be satisfied with the amount you are making currently on the currency trade, because you can make a bigger sum once you get the best FOREX trading software. This will make your trade decisions more informed and well researched unlike the decisions you make driven by emotions and the love for one currency more than others on the market.
The best FOREX trading software allows you to watch the market with a keen eye because it will analyze all the currencies you are interested in and also forecast deals that you should watch out for. It will also allow you to watch several currencies concurrently to ensure that you do not miss any deal. Your mind cannot handle all the statistics of this market and that’s why you need a system that can base its predictions on an analysis of the past and the present situation.
One of the reasons that should prompt you to get the best FOREX trading software, the MBFX, is the fact that it suits scalpers as well as traders. The MBFX is an acronym for Mostafa Belkhayate FOREX System. If you want to trade for the day and count your profits in the evening, this is the best FOREX trading software you can use. In addition, it can suit your long-term trade. This system is the creation of one of the old hands in the currency trade. Mostafa Belkhayate has been in this market for 27 years, within which he has won awards for the best trader in 1999 and also the Best FOREX Technical Analyzer in 2009 and 2010. Hence, when you get the best FOREX trading software, you will be acquiring a lot from this seasoned trader, in order to push your earnings higher. The currency market requires you to learn even as you go on with the trade.
This means that you have to get experts to give you information upfront, for assistance in choosing the stable currencies. Some of the experts charge for the training sessions and they will not give you all the secrets that have helped them in the trade. However, Belkhayate’s best FOREX trading software is offering more than just advice; he is giving you an automated assistant to guide you through the loopholes of highs and lows in currencies, which are the outstanding characteristics about this market. Operating the MBFX system is easy and you will have your way around it in a short while after installation. More so, this system comes with an instructional video that will assist you in installation and use to make it the best FOREX trading software for profit maximization.
You do not have to count strings of losses anymore. Get the best FOREX trading software and if you feel it does not meet your expectations, the manufacturer has a money back guarantee that has to be within 60 days after purchase. However, why should you return this piece of innovation when it can help you rake in millions? If Mostafa Belkhayate managed to make money using the same system for more than two decades, you can also turn your experiences in this market for the better. But first, you need to acquire the best FOREX trading software.
Best Forex indicator : Mostafa Belkhayate Forex System
Need Competent, Efficient Assistance? Get My Best Forex Indicator
Trading in currencies is one of the easiest ways to make money especially if you have the best FOREX indicator. This is a program that assists you in identifying currencies that you should place your money on and it can also predict the future trading options. You will have a worthwhile experience because the system will work for you especially if you are starting out in this trade and you have little or no experience. Therefore, you need to go for the best FOREX indicator because there are so many in the industry, some of which have not been tried and tested.
For instance, when you get the MBFX (Mostafa Belkhayate FOREX system), you stand to accrue many benefits. This is a good choice for a person who wants to increase the amount of earnings by using the best FOREX indicator. One of the striking aspects about the creator of this system is the wealth of experience acquired over 27 years he has been in the currency market. He, Mostafa Belkhayate, is an award winner as the Best Trader, 1999 and Best Technical Analyzer, 2009 and 2010. He attributes his success as a trader to using the best FOREX indicator that helped him analyze the market carefully and know when to trade or not to trade.
Hence, if you are keen about how you will spend your investment in currency trade, you need such competence that will help you become as successful as this pioneer. In addition, you will get the assurance that you are using the best FOREX indicator that has been tried and tested in the trading floor and has proven beneficial.
This system took 22 years to develop and test on the market to make sure that it was flawless. Some creators are in a rush to make a quick buck out of traders and they do not check the soundness of their programs.
The result is a system that is prone to hackers and other problems.
Since the best FOREX indicator has been on the market for years, the creator wants traders to experience the fun of having assistance and decisions you can trust. Its’ strategy is very simple that even a first time trader can comprehend. Hence, you can use it as a scalper (when you want to trade for a day and get your money quickly) or even when you want to be in the market for a longer time observing and trading.
The best FOREX indicator will give you graphical representations of the market and offer suggestions about when you can trade.
When the graphs are at the green indicators, you should buy because that’s when the prices are favorable; on the red indicators, it is wise to sell because that is a representation of the high-end prices. More so, when the prices are on the blue indicators of the MBFX, you should seal the deal. When you purchase the best FOREX indicator, you will also get a video step-by-step guide to help you with the installation. This enables you to load and start using the best FOREX indicator as soon as possible. You do not want the good currencies to pass you by.
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