Forex Online

Forex trading is one of the most feasible options for someone who’s looking at bigger possibilities, bigger profit and greater ease in trading and business. Because of it’s high liquidity and speedy transactions, forex trading is becoming a popular game among players in the field of business and marketing. While it’s traditionally for companies and corporations with huge capital and experience in the field, it has also proven itself to be a good venture for a neophyte through what is known as a Mini Forex account or mini forex trading.

Mini Forex Basics

Mini Forex trading is adequate for people who have just started in the forex market and with not enough funds to open a regular account. It requires a smaller capital compared to regular forex accounts, a minimum of $300. Mini forex trading, allows you to control a $10,000 currency position.

The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. For instance, with a $250 deposit, one could trade a maximum of 5 mini lots. This type of leverage is greater than stocks or day trading. Of course, it is wise to start with a manageable leverage that allows greater flexibility in transactions.

What are the benefits of mini forex trading? With just a small amount involved, you can have access to free trading platform and benefits that regular forex traders get to enjoy. These would include state-of-the art trading software, charts and resources. With a leverage of 200:1, the trader can trade in a commodity careless of the amount of money available to him.

Mini forex trading also allows for lesser losses as the contract size is only 1/10th the size of a standard forex account. There is also more flexibility with regards to customizing trades and minimizing risks. Ideal for those with smaller capital, the trader has an opportunity of investing in more areas of the market with lesser risk as there is lesser capital to be lost. It is important not to hesitate with his transactions as there is lesser capital involved.

With the same freedom enjoyed by regular forex traders, a mini forex trader can trade as many lots as he desires. Although the standard trade size is 10,000 units, you are free to trade as much as 50,000 units or more. In this way, the trader also builds up his confidence in his trading abilities while he also slowly increases his profit and trading position in the market. He gets to manage his money before going for the higher stakes in regular forex trading.

The trader likewise gets to develop a sound trading strategy without getting too emotionally involved in possible losses and profit. For practice, a beginner in forex trading can practice through paper trading. But in the real market, he can start small with mini forex trading. There require lesser capital involved and the practice builds up the trader’s trading gameplan for future explorations in regular, higher stakes forex trading.

An Example

On a regular account, a 25-pip stop loss is equivalent to a loss of $250. Given that a mini forex account is just 1/10th of the standard forex account, this is amounting to $25 only. If you trade in units of 10,000, the trader is given more flexibility in terms of customizing his trades and lessening the risks of loss.

They say that business is for the risk-taker. But if you’re just starting out, it’s advisable to be cautious and think about your actions. In the world of foreign trading, mini forex accounts provide the wisest and best option especially for a neophyte. It requires lesser capital, lesser emotional investment, and slowly builds up your skills and confidence as a trader. In some way, it’s a way to prepare the trader for the higher stakes in the more advanced world of foreign trading.

The Forex trading software has provided many reasons to make Forex markets much better. The software efficiently integrates different currencies in their respective markets around the world. It has really enabled Forex traders to do business 24 hours a day.

There are two alternative Forex trading software. The first is known as service side software. This software works by letting the users log in using their Forex market accounts. The user is asked to introduce their passwords and user names. Then they can already execute any operation associated with the accounts that they wanted.

The other kind of Forex trading software is known as client side software. This type of software is installed by technicians in the computers of the traders. Both varieties of Forex trading software are working jointly to allow the traders to make business transaction any time of the day or even during the night.

Forex trading software provides many advantages to the traders. It includes the relationships of currencies to trading and vice versa. One of the greatest benefits is the real time accessibility on Forex quotes. It can also provide helpful information about past behavior of real time quotes and rates. The charting mechanism is also an excellent advantage. It can help the trader to gain great profits if it is properly interpreted.

Another advantage is that Forex trading software can have access to charting software. In this way, both software can work together to give the traders the complete details they need in order to make the best possible decision.

Forex trading software provides security to the traders, as well. There are various security layers that would be complicated for hackers to crack into. This security is much needed when huge traffic volumes occur in the Forex market. The general security of the Forex trading software ensures that the personal data of the traders are also safe. The two things being considered are data integrity and privacy. This will prevent the hackers from getting into the transaction for a possible change in Forex rates. Hackers can change rates in huge amounts putting the business in chaos which can crash global markets.

Forex trading software allows the traders to see the entire Forex markets conditions at the same time. It helps in increasing Forex sales volumes in the market. Take note, Forex market can be sometimes difficult to determine. You have to understand every detail to select the best to make it work for you. As much as possible, learn the latest Forex trading software and apply it. The software is considered as two-in-one. It includes both the trading software and charting software. Excellent earning are not impossible to gain if the traders are able to interpret these correctly.

Although Forex trading is very popular nowadays, make sure that you employ the right software in order to reach your objective. The advantages of software programs mentioned above are vain if it is not properly reviewed. Remember that web technology continuously increases in popularity becoming the latest trading avenue.

There are several internet sites which are providing different software programs that can allow the traders to do Forex trading. However, make sure that the software is accurate. When you acquire a determine software as your tool, try it first. Allow dry runs or testing especially when decision making is concerned. There multiple of Forex trading sites that are offering trial runs of their products. The software can determine the currency rates each day. Besides this useful task, some software also helps the trader by analyzing data and predicting market behaviors. It can also involve graph utilization which shows the rising and falling of currencies.

Upon subscribing to a site on Forex trading, secure transactions can be already accomplished. You can now have an access to the different markets of sellers and buyers globally. It is not complicated to conduct business transactions regardless of time as long as it is still market hours. Novice traders should not worry. They can add services such as accessing the expert’s sites for advice. These experts help the traders in analyzing the behavior of the market. Later on, the traders can be able to make wiser decisions regarding the best currency to trade and be successful. Forex trading software is really the foundation of Forex market improvements.

Have you ever thought about doing a trade globally? Some people might be a bit hesitant to do such a thing, but the opportunity is just waiting for you out there. You don’t actually have to travel outside your country, if that’s your concern. With the the Internet facility, you can in fact do forex trading on a global scale even in your own home, at work, and regardless of your location.

The FX market seems sophisticated, especially to new traders, and they find it rather complicated to go about the trade. But nothing is impossible once you’ve learned the trade. It is a worthwhile venture that you might want to consider even on a tight office schedule.

Being employed in a particular company may not provide you with all the money that you would need to finance your everyday living. Doing some extra work is often advisable specially in today’s times when money is difficult to find. Don´t worry anymore; the FX market is not far from your reach.

Identify your objective upon entering the FX market. This is the first step, so that you will stay focused in your endeavor. Once you’ve set up a goal, you have to do all that is necessary to reach that goal, but it should be in a reasonable manner.

In going through forex trading, you will need an investment program, and a good one. Don’t settle for anything less because a good program is essential to succeed in forex trading.

Most rookies commit the biggest mistake of their lives by availing fraudulent programs. The FX market is an enormous industry, and the fact is that there are many scams and con artists in the Internet, which actually provide useless materials for beginners. This often leads to frustrations of beginners because they’ve already failed even before they get to start the actual trade.

Find a legitimate forex investment program. Although it might require a bit more research, as well as a bit of your time, once you get what you’re looking for, you’re in a good position to start.

You don’t need to settle with expensive programs, nor with programs promising easy and quick profits with less the risk. You must be aware that though the FX market offers a lot of opportunities, it has also a lot of risks related. To become like the pros, you need to learn the forex trading system; and you have to be serious in learning it.

A good program is dynamic. It provides daily advice, manuals, DVD materials, computer disks, and other important forex trading stuffs or resources to turn you into a successful trader. Verify if their previous clients are satisfied with their services, and see if the company has built a good reputation in the business.

Professional traders conceive forex trading as a science, some thinks it’s an art; and to start the real trade, you must undergo a lot of practice. After all, practice makes a perfect trader. Demo accounts are surefire ways to learn and apply the different techniques used in the FX market. After you’ve dominated it, you can proceed to a mini account. Here you can do an actual trade but the risks are minimal. If you think you’re quite ready, then get a regular trading account. This is a highly effective step-by-step process because you get to learn a lot of things while you are practicing. Always maintain calmness, and act like the pros. You are about to make big money, one that you probably never imagined in your entire life.

Forex trading is done on a margin. Margin trading allows you to control more money than what you actually avail. For you to trade one million US dollars, you should have a security deposit worth ten thousand US dollars. This is a typical example with the rate at 1%.

The FX market expands around the globe, so you can trade twenty-four hours a day. If you choose to do margin trading, the spread rate is much lower compared to futures trading. The requirements are also very low.

Get acquainted with all the in and outs of forex trading. Trading globally implies a lot of risk; you must learn to overcome all these risks in order to earn big profits. Get a good forex trading program.

Forex trading also has grown popularity among many Muslims. Like any other traders, they have an option to manage their accounts by themselves or open a managed Islamic forex accounts. Forex accounts that are managed are created for people who do not have the ability in dedicating their time on foreign exchange transactions. This is also an option for people who do not have the expertise in dealing with the forex markets. They can hire professionals who are available for managing forex accounts.

Forex account management is a very competitive and serious business. Many investors are allocating part of their funds on forex accounts that are managed by professionals. This is very useful when it comes to reducing the risks and mitigating any losses arising from portfolios which include bond market and stock. Remember, the forex transaction is separated from the stock market, which is why the losses and profits are also separated.

Islamic forex trading accounts can magnify the portfolios of the traders in great ways. Take in mind that Islamic forex trading accounts which are professionally managed regardless of the account or the manager of forex trading you have chosen should provide the following things:

- The Islamic forex trading account is not tied on the operations of stock markets. It should provide better returns than treasury bonds or other money making instruments in the market.

- It is essential that professionals who handle your account have expertise. The company should have a good reputation on the forex markets. The foreign trading accounts should be handled by experienced professionals. Take note, most transnational firms and foreign banks are employing the best people who always outperformed others. It does necessarily mean that you hired people who are graduates of Harvard. It only underlines that the traders should hire better trained people who can successfully manage their Islamic forex trading accounts.

- The company or professionals that handle your Islamic forex trading accounts should know how to leverage in order to gain maximum profits. The manager can book profits either the rising and falling currency markets. It is advisable that weekly or monthly reports are provided for every forex transactions together with the real time reports.

- The Islamic forex trading accounts has liquidity. It should offer the traders simple money withdrawals from investors within specified periods of time and during emergency cases.

- The Islamic forex trading accounts which are managed by professionals uses tools on statistical analysis to optimize results and maximize profits. It is because:

• The professionals know the market on trading forex. They are well educated about the currencies being trade hence they can also accurately anticipate the direction of the money in the forex markets. They know the right speculation about the money being sold and bought in pairs. The rise and fall of the currency prices are well predicted so they can sell the currency with higher value and buy the currency with lower value.

• They have studied your Islamic forex trading accounts picking the forex trading system that will be consistent with it. They can choose the system allowing your trades to be automated according to its history, or followed traditional valleys and peaks. This can ensure better execution of the trades preventing market manipulation.

• The professionals are well educated on dealing with real time forex market trading. Their learning experience can handle whatever market oscillation and sees it as an opportunity in making enormous profits. They are also well acquainted with the things needed in minimizing market losses.

• They know the margins of every forex trading. So, they can handle your Islamic forex trading account in such a way to avoid trading margins that can compile huge amount of money loss.

• They are experts on using the best forex trading strategy that will help you come to success. These strategies include the correct time when to enter or exit in the forex markets. Since forex trading is also open twenty four hours a day, seven days a week, the professionals who are managing your account already know the best times to trade.

Letting your Islamic forex trading accounts be operated by professionals can ensure that it is well taken cared of. You can also assist to other activities without worrying about the future outcome of your accounts.

The Internet is one of the most useful tools that you can take advantage of today. With the developments in communications technology, you can send and receive data over the Internet for free or at a very cheap price.

Since the development of the Internet and introduction to the public, people have been using it to communicate with family and friends. The Internet, gives you de possibility of chatting for free even though the person you are talking to is half way around the world.

Today, thanks to the advancement of the Internet, and the availability of a cheap broadband Internet connection, it is now possible for people to start an online business, work through the network, and even trade in the financial market.

Trading in the financial market online has many advantages. Don’t need to be inside the market floor to trade any longer. All you need is a computer with a high-speed Internet connection, and trading software and you’re ready. If you are thinking of trading in the financial market, you might want to consider trading in Forex.

In the past, given that the Internet was still in its infancy and the Forex market had strict sanctions and policies, regular people, such as yourself were not allowed to trade in the Forex market. Only multinational companies and financial institutions had permission to do it and it also required huge amounts of investment capital to start trading in this financial market.

The Forex market is the largest and the most liquid financial market globally. It operates 24 hours a day and generates currency exchanges that sum up to 2 trillion dollars daily. With this kind of feature, people would really want to trade in the Forex market.

The improvements in the Internet technology, have made it possible for people to trade in the Forex market. The Forex market also opened up its doors to individual traders and brokers.

Forex trading is considered to be a fantastic money making tool that you can take advantage of. With the right abilities and knowledge, you can be very successful in the Forex market and earn that money you have always wanted.

In fact, many people who have traded in the Forex market have earned quite a lot of profits. Some even considered it to be a great full time career and decided to give up their regular jobs to trade fulltime in the Forex market.

However, the Forex market also carries an equal risk to traders. There is also a probability for you to lose money when operating in Forex. It is also a fact that Forex took people in the brink of financial collapse. However, the right skills, knowledge and strategy, can help you minimize the risk and maximize your earning potential when you trade in this very liquid market.

If you are seeking for a great fulltime career that you can do in your own home, you can think of Forex market as one of the best career choices.

The first thing you need to have in order to start trading in the Forex market online is a fast computer with a high speed internet connection. Fast Internet connection is very essential in order to let you have access to real time information on what is happening in the market. This will also prevent slippage.

The next thing you need to do is hire a firm that is available online that specializes on Forex trading. The online Forex trading firm will allow you to use their online software which is necessary for you to start trading. For inexperienced Forex traders, it is recommended that you hire a firm in order to have first-hand knowledge on how to trade currency, and also help guide you on your trades.

In case you don’t want to hire a firm, there are a lot of software programs available in the market that you can use to start trading in the Forex market. The most important thing you have to consider when choosing a trading software program is that it should allow you to gain access to the Forex market instantly. It should also give you the tools you need, such as charts and other indicators that are necessary for you to trade effectively.

The use of software programs is recommended for experienced traders who don’t want to spend money on Forex trading firms.

These are some of the things you should consider when trading in the world’s largest financial market online. Always take in mind that there are no guarantees in Forex. You should be prepared to lose money during your first few months of trading. Once you have completely understood how Forex works, you can be sure that you will be able to earn a lot of money in no time at all.

17
NovemberForex Online Trading: Information that You Should Watch Out For
Posted by Rod
Getting the necessary and the proper information is one of the most important if you want to be successful.

In a company, in the military, in the government, and virtually in any kind of organization, getting the right information is essential to make the right decision. All decisions are based on this. Information plays a vital role in the society.

For example, in the military, making the right decisions during war or even during peacetime is required to save and protect lives. In the business world, it is also important to get the right information to make the right decision in order for a company to grow and profit.

Most wrong decisions are often made because of lacking information or because of getting the wrong information.

Here’s another example on what can happen when decisions are made based on the wrong information. Countless leaders of countries have been ousted because of one minor glitch in the information that their advisers gave them.

It cannot be stressed enough that it is necessary for everyone to get the right information. After getting the information, you should analyze it, and make a decision that you believe is right for the present situation.

This is also applicable to the financial market, such as the Forex market.

The Forex market is the biggest and the most liquid market in the world which operates 24 hours a day and reaches up to two trillion dollars each day in currency exchanges. This market has no centralized location as trades are open 24 hours a day in different parts of the world.

In fact, the Forex market has made lots of people rich and also taken a lot of people in the brink of financial collapse. The Forex market can really be a difficult market for you, as an investor. It can only mean two things, either you make it big by earning lots of money or you can really lose big time.

With the constant fluctuations of currency value in this market, it is necessary for you, as an investor to get the right information in order to make your decisions. The right and wrong information or late information can mean the difference of you hitting the jackpot by earning lots of money or you losing a lot of money.

Having the necessary skills and knowledge about the Forex market is just not enough for an investor to be successful. It is well known that there are lots of seasoned Forex investors or traders who have lost a lot of money in this financial market. Some even got into debt or bankruptcy.

This is why you should first study your options whether you should join the Forex market or not. However, the fact that you can make lots of money in this market can really lure you. Apart from that, the Forex market can offer you a chance to make the big bucks.

Therefore, if you want to join the Forex market or if you already have an active, funded account, you should make sure that you have access to the relevant information.

It is advisable that you should hire technical and/or fundamental analysts or brokers if you don’t know anything about Forex charts and graphs. The news also play an important role in the Forex market.

These people can help you make the right kind of decision by providing you with all the necessary information on what currency you should buy and sell.

Even though they will charge you a fee for their services, you can trust that you will be getting the right information on time which will help you in your decision-making. So, to make it short, you should hire these people’s services.

Even if you know how to read the charts, there are simply too many things that you have to take in mind; there are just simply so many indicators about the different aspects in the Forex market that you should keep an eye on. Just reading one kind of chart can be very complicated. Try combining it with another chart, and not to mention that you still have to make decisions.

Always remember, if you want to be successful in the world’s largest financial market in the world, you should get informed with the relevant information on time. You should always take in mind that the information that analysts and brokers provide you is the key to success.

You have for certain been looking into how the Forex market works and you have questions like if you can or not make money in Forex. Many web pages assure you that it is very easy to make money in the exchange market and they even tell you that you can make loads of money overnight, but this is not the way things works, allow me to explain:

Forex gives you hundreds of opportunities daily to make small and great amounts of money, but it can only be achieved if you are well instructed and you practice with a demo account before entering the market with real money. Just like any job you have in life, you must prepare in theory and in practice to reach success.

You can make a lot of money in Forex, if you apply strategies and do a technical analysis of every movement of the market, skills you acquire from a specialized education. You probably ask yourself if you need to make a considerable investment to make money, which comes to you do not need a great amount of money; it all depends on your investment capacity, which allows you to open an account that better fits such capacity.

Types of Accounts:

1. Micro Account: Opens with less than $2000. You may operate mini and micro lots.
2. Mini Account: Opens with $2001 to $20000. You may operate mini and micro lots.
3. Standard Account: Opens with more than $20000. You may only operate full lots.

Also, Forex allows you to open accounts and make money through leverage, which means that a broker, with solid finances, lends you money for you to operate in the market and this way get earnings from the differentials in the appreciation or depreciation of the operating currencies. Forex can become a risky activity when the leveraging takes novice traders to over leverage, because they get greedy and they want to make a fortune with little capital at hand. This way, from 2 or 3 operations that end up in losses, the trader loses all of his capital. This is why it is important to know how to manage money, risk and every operation correctly.

You may leverage from:

• 2:1 = give $1 you will get $2
• 10:1= give $1 you will get $10
• 100:1= give $1 you will get $100
• 200:1= give $1 you will get $200
• 400:1 = give $1 you will get $400
So, the amount of money that you can make depends on the number of pips you obtain and the size of the account that you opened. For this reason it is vital to be realistic on how much you can invest at first in relation with what you can make.

Also, the amount to lose depends on the number of pips lost and the size of the account. Remember that from the time an trader enters into a position, he loses because of the spread or differential from the brokers in each pair. But if you use good strategies and correct money and risk management techniques, this will not be a relevant factor.

It is even more important to be able to increase earnings in the winning operations and minimize the amount lost in those in which we lose money. This should be clear. With good money and risk management, a Forex trader can make money even in a strategy where he loses 6 out of 10 times. How? In the remaining 4, his earnings are higher than his losses in the 6 operations that ended up in loss.

The same way, a trader could lose money even winning in 8 out of 10 operations, following the same logic.

For this reason you will notice the first time that you enter the demo account, that when you take a position in the market, immediately it will show a “loss” in your money, which really is not a loss, but rather it is the commission that your broker charges from that moment for each position that you take in the market. In the demo accounts they add this commission for you to always have this in mind when getting a real account.

It is important to realize that you must look for a trustworthy broker, since unfortunately there are people that try to take advantage of others. For this, we recommend you to examine the history and background of the broker. Even though you may be able to select a broker from a variety of countries, you must make sure they are legally established. For example: in the USA, a broker must be registered with the CFTC (Commodities Futures Trading Commission), or be a member of the NFA (National Futures Association). You may also verify this with a Costumer Protection Office, depending on his country of origin and its IT laws.

To make money in Forex, it is important that you know it will not happen overnight, it will take a whole process for you to become an expert trader. In this money making market intervene probability and consistency. Success is measured with profitability, and it does not matter the amount of operations, but also perseverance to reach your set goals in this business. For example, constantly following a strategy and not searching every week or month a better strategy than the one before (a very common mistake among new traders).

You may also get long term or short term earnings, meaning that you may choose to make only 1 or 2 operations in a year to reach your goal, which is possible only if you use the correct strategies and receive constant education. You can make 10 or more operations a day, a week or a month, to reach the same goal and get earnings and vice versa.

The recommendation if you are new at this is to start with few operations, but strong ones, in longer periods of time, like daily.

You can make money in Forex if you:

• Receive the proper education and training.
• Learn to determine in the market when to enter into a position and more importantly when to leave, either with losses or earnings.
• Use the correct leverage offered by brokers and you are realist when thinking of possible earnings.
• Are patient. Patience to practice, as well as for waiting the correct settings to enter into a position, as well as waiting to see for the right time to reach your goal for earnings.
• Do not get obsessed with reaching your earnings goal in the first week.
• Accept losses as part of the “investment game”.
• Properly manage your emotions and the psychological aspect of trading.

The Forex University specializes in courses for beginners and more advanced traders, and teaches how to obtain earnings in a constant manner, managing Forex as a business. For more information, you may go to the following link:

http://www.udeforex.com/Cursos/Cursos-de-Forex.html

In every crisis there is very interesting events, opening the gap of social status. I really mean, the rich and poor, and I do not mention the middle class; I place them in the methodology in the same bag as the poor. The poor are poorer and the rich are richer. But being rich is not about money, it is a matter of attitude.

The economic crisis we are experiencing stronger than ever these days not only affect our economy, but as always happens when the world is mobilized by an important fact, also our mental health at risk. Stress, depression, among other mental disorders is leading to the economic crisis raging for months to markets, and that affects our decisions every day. Therefore, we must understand that our emotions precede our attitudes, changing our thinking is a key fundamental.

You may think that a lot of rich attitude you may have is not enough, if you don’t have capital you’re out; you will not cross the line of a poor with aspirations. Investing in Forex is a real and effective solution. Doesn’t produce great opportunities the crisis in Forex? Perhaps this is one of its greatest attractions.

We are in crisis and this is no longer questioned anymore. Now we wonder what kind of crisis we are suffering. There is talk of a global crisis, or more chain-crisis, value crisis, environmental crisis, financial crisis, a crisis of production, economic crisis, real estate crisis, etc.

Most of us were resigned and think that the cycle of crisis will be about for two years as the experts say. Others look for opportunities. Every crisis creates an enormous opportunity for anyone who is willing to take the risk. We can stay looking as prices go up and how that affects our accounts or we can risk and pursue new business and investment by taking advantage of the bear market. This is what forex is creating, opportunities.
Does The Current Crisis Affect the Forex Market?
Yes, the fall of the stock market and the global financial crisis, affects forex as well. However, as speculation on world currencies we do in forex, there will always be currencies that are better than others. So, we trade the strongest by buying and sell the weakest.
When the Crisis is Over, Are People Going to Invest in Forex?
The blows that have suffered major economies of the world in recent months hurt those who do have an investment in forex. What happens is that the volatility in the markets provides an extreme sensitivity to any asset and the risk increases as the days pass.

If we are to make an investment in forex we must take into account that in this market, 80% of transactions are conducted with the so-called major currencies. These currencies are backed up by the strongest economies in the world providing the security that the investor needs.

The euro has become a safe trade currency, and this has led many countries to be saving or investing in that currency, even in many cases is to prefer the euro against the dollar. The dollar has depreciated against the euro, which is why many countries are investing in this currency. This has also contributed to this phenomenon, the differential between the official rates of the major hard currencies and some of the country’s most affected by the crisis (United Kingdom). The United States on official rates are currently at 0.25%, 0.50% in the United Kingdom, 0.25% in Canada and 0.1% in Japan. All this contributes to a strong euro is continuing to act as a refuge.

The substantial difference between the two powers is that U.S. lowered their interest rates and the results were not expected, and in Europe they are reluctant to lower the cost of money to prevent the fall of the euro, although in recent days has suffered a slightly low rate cut.

The banks have followed the policy of the Fed for example the Bank of England who reduced its interest rate to protect the British economy from the global crisis. While the measure is too recent to be seen whether the British pound suffered a fall, so it continues to be a good option to invest in the forex market.
In these cases it is advisable to invest in the forex market, but betting on currencies that might not have a performance as profitable as the dollar, the euro or sterling, but they provide confidence to investors.

Diversifying is the key and foreign exchange is a good option to make such moves. The dollar is a currency that has devalued and one of the reasons is that oil had change in short range of time and that enhances competitiveness.

Anyone who invests in foreign currency should analyze what are the economies most affected by the global crisis, and from there, to deduce which are the currencies that are devalued, and which benefit from this situation.

Actually the current situation is not favorable for those with a negative attitude, but for those who see an opportunity where none exist are those that can grow. We can learn that in forex there is always an opportunity, but each investor must believe in it and see in detail where you can take advantage of every opportunity. Today the psychology of the operator is essential to survive.

The Directional Movement Index, or DMI, is a Forex trading system, where you can determine a Forex trading trend presence in the market.

It consists of three lines:

•The Average Directional Movement Index (ADX). This moves between 0 and 100 value.
•The Positive Directional Index(+DI).
•The Negative Directional Index(-DI).
+DI is used to measure uptrends, and the -DI measures Downtrends in the currency trading chart.

A high ADX indicates that there is a strong trend in the market, while a low ADX shows a slighter trend. An ADX above 25 indicates a non trending market while an ADX above 40 indicates the trend is strengthening.

When the DI lines cross each other, then a buy or sell order is generated. If the +DI crosses above the -DI line, then a buy signal is generated. On the other hand, the buy signal is generated if the +DI crosses below the -DI line.

We have seen that the DMI has a lot of uses for Forex trading, and alerts traders on upcoming and current Forex trading trends. Another use for the Directional Movement Index is to know when to buy and sell the Forex trading currency, through the intersection between both DIs. This is a powerful technical analysis tool that can really help you with your trade.

The Forex trading stochastic indicator is an indicator that follows the momentum of the market. The stochastic indicator is based on a simple idea. During an uptrend, closing price tend to be high, while during downtrends prices close low.

The Forex trading stochastic indicator warns about the presumed future direction of the Forex trading currency price, based on the assumption the when the currency price rises is closes near the high and when it drops it closes near lows. This way the stochastic oscillator helps analyze a certain trading pattern, whether it is an uptrend or a downtrend.

Using stochastic indicators does not require advanced calculations in most Forex trading sites, since these are included and are done automatically in the Forex Trading Software Online. The current closing price for the stochastic indicator is shown in relation the previous prices over a period of time.

This indicator has two lines:

•%K compares the current Forex trading closing price to the previous trading range.
•%D is a smoothing of %K that is seen as a signal line.
When the stochastic line is above 80%, an overbought signal is given, and when it drops below 20%, the oversold signal is given. This explanation tells you when to buy and sell using Forex trading stochastic indicator:

•Buy when the indicator falls below the line, and when it crosses the bottom level up.
•Sell when the indicator rises above the line, and crosses the top level downwards.
•Buy when the %K line crosses the %D line from below upwards, or from top downwards.
Basically, the Forex trading stochastic indicator currency's closing price to its price range over a given time period. The sensitivity of the indicator can be lowered by adjusting the time period or by using a moving average of the result.
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The Forex trading Exponential Moving Average was developed because the simple and weighted moving average indicators failed to predict buy and sell signals properly. By assigning more weight to the most recent price data, the prediction of currency price is made more accurate, and this is the basis of exponential moving average (EMA).

To calculate a regular weighted moving average, a 10 day MA for example, you would take the closing price for the 10th day and multiply it by 10, the 9th day price multiplied by 9, and so on till the 1st day price. This total would be divided by the sum of multipliers - meaning for 10 days - 55. The EMA has helped make Forex trading technical analysis more accurate and flexible.

The exponential moving average is similar, only it is not linear, and it is adjustable by the trader, so he can give more or less weight to the recent prices.

One possibility for learning about the EMA more profoundly is using a forex trading system course, even though most traders usually get the basic idea of the indicators in pages like these, and then learn everything else while trading in demo accounts.

Forex trading Moving average convergence divergence (MACD), is one of the most popular technical analysis indicators available for traders.

One of the biggest advantages of this indicator is that it can be used either as a trend or as a momentum indicator. The MACD calculates the difference between the 26th day and the 12th day exponential moving average indicator(EMA). The 12-day EMA is the faster indicator and the 26-day is the slower one. These measures use the closing prices of the period that is measured.

The 9th day EMA is also used for MACD, in order to calculate triggers for buy and sell orders. One of the reasons for EMA's popularity is its wide use in global forex trading, relative to its ease and friendliness of use.

•A bullish signal is generated when the MACD gets above the 9th day EMA.
•The MACD sends a sell sign when it moves below its 9-day EMA.
The MACD histogram
The MACD histogram is the representation of the difference between MACD and the 9-day EMA. The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA. For rising speed of prices the MACD histogram grows larger. The histogram contracts, on the other hand, for price speed decrease.

Traders use the MACD to evaluate the momentum and the strength of a trend, rather that for estimating trend direction, because it measures price movement speed.

Trading divergence
Sometimes the prices will make a new swing high or swing low, while the MACD will not. This is called a Forex trading divergence. This indicator is not accurate, and should not be relied upon.

The Forex trading RSI is an oscillator that measures the strength of a currency trend, and ranges between 0 and 100. If you're keen to learn forex trading, the RSI is one of the key indicators you should learn, as it enables you to recognize a Forex trading market situation. The relative strength indicator (RSI) is a measure for whether a currency is overbought or oversold.

•Overbought Forex trading occurs if the currency is in an uptrend pattern, because many traders buy the currency in an expectancy for it to keep rising. Over time traders cease to buy the currency, and the rise slows until the trend changes.
•Oversold Forex trading happens when the currency price is in a downtrend. Here too the traders stop selling over time, and a short position is created, finally changing the trend direction.
The RSI is an index of price fluctuations over a certain period, and is seen as a percentage.

RSI=sum of price rises/ sum of all price fluctuations

Forex trading RSI rates consist of:

•Neutral market- RSI Between 30%-70%.
•Oversold market- RSI under 25%.
•Overbought market - RSI over 75%.
An RSI should not be used alone, but in addition to other Forex trading technical analysis indicators. The longer the period of time that is used for the RSI, the less fluctuations it is expected to show.

People who are arrogant and complacent do not enter into Forex trading

People who are too self-confident do not enter into Forex trading

People who do not admit mistake do not enter into Forex trading




To understand the essence of these phrases, first of all is to understand how the Forex markets trend being formed. Forex traders should keep in mind that the Forex market is being formed through a buyer and a seller when someone wants to buy and sell at a particular price, that represents this price is the market approval price. It does not matter whether this price is being approved by a well-known analyst, it also does not matter whether this price is being approved by the President of the Central Bank.

Remembers, as long as there is a transaction, the price will be the correct market price, it does not matter how fast it goes or even jumps in 1 minute spatial several hundred, as long as there is a transaction, the price will always be the correct market price. But the majority Forex traders often could not accept that according to the technical analysis, how the market could fall in a sudden.

In other words according to the fundamental analysis, the economical numeral of this currency is very good, how could it fall until a certain price? Certainly it was a mistake created by the market. By giving more patients, it will return to its fundamental price. Thereupon the concept to buy at a low price has become a pushing hand for the Forex traders to enter the market without market price. Such "bad behavior" has created a pitiful destiny for a loser forever.

Was sure to remember that, only by admitting our mistake and then immediately "stop loss" and then wait for the right moment to come again. We have seen a Forex trader made mistake and being reminded to stop loss. But, without second thought, he picked up the phone and increased the amount of transaction. In the end, you can imagine that, it did not take long time for him to loss all his balance and ran away.

Finally, a skillful analyst repeatedly said, that "the road of investment is the road of admitting mistakes”, only by admitting mistakes continuously then only successful result can be achieved.

Forex Latest News




News plays an important part in our daily life as news provides us with the latest happenings around the globe, be it political changes or daily news. Therefore, for the same reason, the news in the Forex market is a vital information source for all of the Forex traders because the Forex news will keep the Forex traders up to date with the latest trend in Forex trading, the change of flow in the financial market, the change of direction for a currencies and other vital information such as the latest Forex exchange rate.



Actually, the news released in the Forex market plays a vital role as any news released may cause fluctuation in the exchange rate of Forex market. This is because unlike conventional news, the Forex news released in Forex market is mostly related to the whole Forex market itself. Some of the examples of this news are a company's press released of their budget, a government press released of their budget, a nation's action taken towards their economy and other relevant topic. Therefore, this simple news may actually trigger a chain reaction in the Forex market resulting in either a hike or a slump in the exchange rate.

For both Forex trading and stock exchange, the concept of news is almost identical with each other where any news in both of these markets will result in a fluctuation towards the whole financial market. Take for example one of the most common type of news which may affect directly a currency of a nation, political news. For political news, sometimes, a change in the political events for a nation will result in a fluctuation of the nation's currency. Take for example the mighty US, when the election for the President is going on, the exchange rate of the dollar is very unstable, this is due to the reason where most of the investors are afraid of being affected by the political changes in the country and therefore, temporarily halt their investment or completely withdraw their investment. This of course, caused a fluctuation in the exchange rate when the news regarding the election was released. Another good example regarding the impact of Forex related news in the Forex market is a nation's change of plan in their budgeting. As we all may know, sometimes when a nation is experiencing a slow or stunned economic growth, the government will actually reduce the tax in that country and maybe, they'll provide more jobs to the unemployed people by having more projects running (such as paving new roads, building new structures and others). If such action is taken, more and more money will flow into the market and therefore, boost the growth of that country's currency as money is circulating more rapidly in that nation. When such news is released or made known to the public, most of the investors will then be tempted to trade that currency as such action taken by the government will cause the currency to be more active and as a result of that, gives more trading opportunities to the investors in Forex market.

Besides paying attention to the news in Forex, we must actually be more sensitive to other issues which are happening around the world, such as war, political disputes and others. This is because anything that happens around the other side of the world, such as war, may as well affect other countries because waging a war means a lot of resources will be directed in order to wage the war and therefore, causes inflation to the currencies.


Forex News Reference
http://www.forex.labuan.net/forex-news.html
http://www.investopedia.com/articles/basics/04/050704.asp

Forex Chart, Forex Charting




For either stock exchange or currency exchange in the market, technical analysis plays a vital role for all of the investors as technical analysis is a method used to evaluate and predict the market movement by gathering statistical information from the trading market itself. For the sole above reason, we can say this is why Forex chart is very important in terms of Forex trading.



First of all, for a brief introduction, there are actually 3 main types of charts which are bar charts, candlestick chars and point & figure charts. Actually in truth, the first charting analysis technique originated from Japan over 300 years ago, and not the west as many people thought it might be.

Until today, one of the most common and widely used chart in both Forex trading and stock exchange is none other than the bar chart. As the same suggested, a bar chart uses bar as their graphing for the chart and in addition to that, normally a bar chart is used to display the high, low, open and closed for each particular days, which makes it an advantage compared to the other two types of charts.

Another one of the common used chart types is the candlestick chart. For candlestick chart, it is commonly referred to as a "Japanese Candles" as the Japanese often used this chart type to analyze the price for the rice contracts. Regardless, this chart performs almost the same function as the bar chart where it displays high, low, open and closed. However, the candlestick chart differs from bar charts due to the reason where candlestick charts uses different colors (such as blue and red) to display the condition of a certain currencies. For most of the investors, the candlestick chart can be said as a "love or leave" situation because the investor will either use the chart frequently or wouldn't use it at all.

Last but not least, the 3rd type of chart is the chart known as point and figure charts. Actually to tell the truth, this chart is seldom offered in most of the online Forex chart resources as it is very tedious to keep a long record of the trading which occurred through the whole period. This is due to the fact where originally, point and figure chart is used for intraday charting only. This chart normally plots day to day increase or decrease of a certain currency with "x" for increase and "o" for decrease. This graph actually helps the investor to filter out less active trades and helps them to focus their investment on more active trades.

In truth, charting is very important for technical analysis as it shows the result of the data collected from daily Forex trading. With the aid of charts, the flow of the Forex market can be predicted easier and more accurately. Try to consider this where if there is no chart or any graph to show the performance of the market, how can analysis be done by just looking at a chunk of raw data which obviously meant nothing if it is not analyzed?


Forex Chart Reference
http://www.forex.labuan.net/forex-charts.html
http://www.investopedia.com/articles/technical/04/060204.asp
http://www.investopedia.com/university/technical/
http://www.investopedia.com/articles/trading/04/031704.asp
http://www.stockcharts.com/education/ChartAnalysis/chartPatterns.html

Forex Signals Providers Reliability



Due to the continuous growth in the Forex market nowadays, more and more Forex signals provider can be seen everywhere, especially on the internet. Although Forex signals is quite a common term in the Forex market, some may have unheard about it. Actually, Forex signals are signals generated by a certain signal provider for their customer indicating to the Forex traders whether they should buy or sell their currencies in the Forex market.



In the actual reality, there has been a lot of dispute and debates going on regarding the reliability of the Forex signals in Forex trading.

First of all, one may wonder how all this buying and selling signals are generated in the first place? Many of the Forex signal providers claimed that they utilize an advance method to analyze the flow of the Forex market and in addition to that, some even claimed that they generated their buying and selling signals based on insider’s information. This is a signaling approach where an insider has access to information not available to the market. This in term means that, moves made by insider can signal information to the traders outside and thereby, changing the exchange rate in Forex market. On top of all this, there is one major question regarding all these Forex signal providers. If their buying and selling signals are as good or as accurate as they claim it to be, why wouldn’t they get involve in the Forex trading using all of the resources they have in the first place. There is no obvious or strong reason given regarding this matter as we all know where the profit generated from Forex trading with the aid of leveraging is far more greater than the profit generated from providing trade signals.

Regardless of all the negative comments about Forex signals, there are still a few reliable sources of Forex signals provider in the market. This is because for these trustworthy Forex signals provider, their signals are generated using a known method and is being constantly monitored by financial experts. Actually, some of the newly established signals provider joined in the rank of providing signals in order to earn some fast profit (such as registration and subscription fees from their customers) without setting up a proper foundation and as a result of that, most of the Forex signal providers are getting a bad name due to these bad apples.

Practically, a Forex trader shouldn’t rely fully on the Forex trading signals itself. In fact, they should first draft out a strategy for their trading, and only after that, they should use the trading signals as a guideline. This is because by doing so, the Forex trader will know where is the limit of his profit and when to look for another trade. In addition to that, the Forex trader can use the entry and exit signals (buy and sell) as a reference as to when he should start buying and selling his currencies. Sometimes, as the signals are not fully reliable, a trader may end up selling or buying another currencies when he is on a winning streak and in order to counter this problem, most experts would recommend a multiple exit signals where for example, instead of selling all of the currencies in one go, it can be split to a few proportion and trade them off individually according to the signal.

In reality, there is no absolute winning method in Forex trading as some of the Forex signals provider claimed, in order for one to gain the most out of their investment, it is most advisable where the trader himself must first draft out a proper investment strategy (time, funds and others) and abide by the investment plan he had draught. After all, the hardest thing to overcome in trading is one’s own mind and thoughts.


Forex Signals Reference
http://www.forex.labuan.net/forex-signal.html
http://www.geocities.com/daytradingtutor/day-trading-signals.htm
http://www.stockcharts.com/education/GlossaryS.html
http://www.investopedia.com/terms/s/signallingapproach.asp
http://www.investopedia.com/articles/technical/03/120303.asp

FX2u Forex strategy on successful Forex trading




The essence of the FX2u Forex strategy is that it does not have any Forex trading system but could forecast the market trend accurately.

Every set of Forex trading system available has its disadvantages. The market trend could not be forecasted. If the market could be forecasted, by depending on the RSI, PAR, MOM analysis techniques and some other theories, Forex traders could easily make a fortune.

Many Forex traders could not obtain the anticipated outcome by using these analysis tools, and suffer huge losses. The main reason is relying on some imperfect tools to forecast the unpredictable market trend is just a waste of effort. Therefore the FX2u Forex strategy spirit is to abolish the entire subjective analysis tool.

To survive in the market is to follow the market trend, following the market trend is the essence of the FX2u Forex strategy. By using the opposite theory to enter the market, will only lead to lost. The reason is that if the market rises, it may continue to rise. If the market drops, it may continue to drop. No one is able to forecast when the market trend will stop.

By following the market trend, the market risk could be reduce to the lowest, the FX2u Forex strategy will advance the following the ten principles:

fully understand the how market function and the market trend, else don’t trade

After entering the market, the Forex trader MUST immediately put a market stop.

If the stop order has been hit it MUST be executed immediately, NEVER make changes by lowering the stop order price.

If the forecast is wrong, Forex traders should leave the market immediately, then analyze again.

If the forecast is wrong, Forex traders should stop loss and should not increase trading.

Forex traders should admit mistakes, do not continuously make mistakes.

All analysis tools are imperfect, mistakes could always occur.

If the market rises Forex traders should buy, if the market drops Forex traders should sell, always follow the market trend.

Forex traders should not forecast the market price because such forecast will not be as easy as forecasting the market trend.

If the forecast is wrong, once the loss reach 10%, Forex traders must stop loss immediately, do not let it surpasses 10%, otherwise it would be difficult to recoup the capital again.

Forex VS Futures



What Is The Difference Between Forex and Futures?



A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market, moreover Forex traders could make more profit from the Forex market due to the larger trading volume (the transaction volume is a few times larger), the REFCO Switzerland rich transaction platform allowed transaction between 1-100 times to be carry on, moreover a Forex trader could decide his or her own transaction amount, for example: Your account has $30,000, the basic transaction unit is each $1,000 (which transaction amount in $1.00, million), namely, so the proportion of the margin of each transaction unit is 100:1.

The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required, the Forex trading system will automatically settle your position, this means even if a Forex trader suffered losses, moreover if the market is suffering from a disaster fluctuation, your loss could not surpass your account amount. In order to understand the advantages, please apply for the demo account to carry on the complete zero risk.

A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world. At present the trading volume in the Forex market is 140 billion Dollars, such big market will completely digest your transaction cash.

A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open, such linkage market enable you to do 24 hours transactions, also provide flexibility for Forex trader to do transaction.

What is the Difference Between Forex and Stock?

The Forex market has a lot of advantages compare to stock market:



A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.

Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.

Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.

Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.

If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.

In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.

Technical analysis is one of the two methods of analyzing Forex; fundamental analysis is the other. These two methods are very important in the Forex trading by forecasting the variations of the Forex market, prediction of the price and the movement of the market. Although technical analysis and fundamental analysis differ greatly, they both predict a price or movement. In this article, Forex technical analysis will be analyzed in detail.


Technical analysis is a method of forecasting price movements and future market trends through the study of past market action which take into account price of instruments, volume of trading and open interest in the instruments. Unlike fundamental analysis, technical analysis is focused with what has actually happened in the Forex market, rather than what should happen. There are certain technical analysis tools such as the relative strength index (RSI), which is a price-following oscillator that ranges between 0 and 100; the Elliott waves method, which deals in the prediction of the market movement by the study of wave patterns over a period of time; the parabolic SAR methodology, in which the prices are examined and compared to stop and reversal numbers which are an indication of entry points and exit points for any Forex trade; the stochastic oscillator, which shows the over bought or oversold currencies on a scale of 0- 100%; and gaps, which denotes the spaces on the bar chart that none of the trading takes place.


Technical analysts are confident that historical performance of stocks and markets denote future performance. They use charts and other tools to identify patterns that can suggest future activity. They do not attempt to measure a security's intrinsic value. They study the price and volume movements. And they create charts from that data. A technical analyst would rather sit on a bench in a certain mall and watch people going into the store. He decides basing on the activity of people going into each store. But if he is a fundamental analyst, he would rather go to each store and study the products on sale. Later he decides whether to buy or not. In other words, technical analysts disregard the intrinsic value of the products in the store. From the point of view of technical analyst, anyone can gain the profit by posing himself in the trend direction. Consequently, they use different patterns in order to create the price chart that will suit the future market and the price would follow the pattern.


In summary, Forex technical analysis focuses on what actually happens in the market. The charts are based on market action involving price, volume and open interest. It is always focused with the pricing and time factors rather than the factors affecting the market. Thus technical analysts study the effects, not the cause of market movement.

If the currency pair means the quotation of two correlated but different currencies known as pip or “percentage in point”, then a “tick” depicts to the smallest change or increment or movement in any currency pair on the FX market.

In a currency pair, the first currency is called the base currency or the transaction currency while the second currency is known as quote currency, payment currency or counter currency and they are always subjected to changes like for example; EUR/USD currency pair. For example, a change or movement from 0.8941 to 0.8942 is called one tick or pip, so pip for this is 0.0001. For AUD/USD currency pair the case is the same, one pip is 0.0001.

Below is a table for the most common or major currency pairs showing its National Amount and Its pip to USD equivalents:

EUR/USD EUR 10,000 .0001 = $1
USD/JPY USD 10,000 .01 = $1
GBP/USD GBP 10,000 .0001 = $1
USD/CHF USD 10,000 .0001 = $1
USD/CAD USD 10,000 .0001 = $1
AUD/USD AUD 10,000 .0001 = $1
NZD/USD NZD 10,000 .0001 = $1
You will notice that in the table the example currencies are quoted in four decimal places, which is the most common way to quote, except for Japanese yen. Let’s take a value of USD/CHF of 1.5395 as an example, 5 the fourth place is the pip.

So, how do we arrive with these results? The formula to calculate this value is defined as: one PIP (with proper decimal placement) / currency exchange rate x National Amount

Let‘s take for example per 10,000 Euros in EUR/USD, how much in dollars is one pip movement or one tick? Taking or referring to the size that is in this case is 10,000 units of Euros as the base currency and National Amount and one pip base on the given table, we will get: (.0001/.8942) x EUR 10,000 = EUR 1.1183

Using the same example, since we want to the get the value of one pip in dollars or USD, we will need to get the product of EUR 1.1183 and the exchange rate of this currency pair, that is 0.8942 and we will get $1.00 same as in table.

If you notice, every currency pair like the USD/JPY, GBP/USD or USD/CHF one pip is always $1.00 per 10,000 currency units. This in an amazing fact and that is why pip or tick values even in futures are always the same.

This is one important term on Forex that one should know and have to understand because this will determined or using pip you will know how to calculate your profits and losses in the Forex market.

The balance of trade also referred as trade balance, which sometimes is symbolized as NX, is the difference of the monetary value of imports and exports in one economy in a given period of time. The balance of trade is considered the biggest part of a country’s balance of payments.

Imports, domestic spending, foreign aid, and investment abroad are called debit items while credit items includes exports, foreign investments in domestic economy and foreign spending in domestic economy.

A trade surplus is a positive balance of trade which is consists of more exporting than importing. A trade deficit is the negative balance of trade or sometimes called a trade gap. The trade balance can sometimes be divided as services balance and goods balance just like in the United Kingdom which they use the terms invisible and visible balance.

The balance of trade is a part of current account which includes transactions that includes income derived from international investment and international aid. Thus, if the current account comes as a surplus then the nation’s international net asset increases also while deficit will decrease the international net asset.

A good trade surplus is achieved when a country exports products more than buying imported goods. A trade deficit is eventually experience as a result of the opposite of a trade surplus. The trade balance is alike to the difference of a country's output and the domestic demand. These factors may affect the trade balance: prices of goods manufactured, taxes and tariffs, trade agreements, business cycle (home or abroad), and exchange rates.

The trade balance is different in many business cycles. For instance, export growth like oil and industrial goods which improves when there is economic expansion.

In developed countries like; Japan, China and Germany usually run at trade surpluses in which they experience a higher savings rate. Around the world there are different natural resources which a country may have for instance, countries from the coastal regions are major producers of fish, Canada can be a major producer of lumber because of its huge forests while in the Middle East, has the most oil reserves.

International trade is important so in order to sustain the balance of trade. A country should be totally self sufficient without international trade. Through international trades, each country will have the opportunity to produce specialize goods efficiently. In relation, when a nation specializes in producing these goods, the total production increases instead of trying to be self sufficient. Nations will benefit from international trades and also meets their needs. Generally, nations will trade to other nations when they gain from the trade. But the gains are not usually equal in terms of benefits and profit.

In economics, transaction costs are the rate acquired when making an economic exchange. This costs incurred when buying or selling securities or stocks. This is also referred as transaction fees. Transaction costs also comprise of brokers’ commissions ad spreads (difference between the price that the dealer paid for a security and the price it may be sold. This is what the broker or bank produce for being a middleman in a transaction.

For instance, most people when buying or selling a security or stock, pays a commission to their broker and that commission can be considered as the fee or transaction cost for doing that stock deal. When evaluating a potential transaction, it is crucial to think about these costs that might prove significant. Mostly, in financial markets, the initial cost for these transactions is commission which is paid to brokers upon trade execution. This costs becomes increasingly important the shorter the holding time of an investment.

Many market models disregard transactional costs, presumptuous instead those markets are non resistant. While this thought is invalid, for many applications such costs are low enough that they can be disregarded. The lesser the cost for a transaction, the more effective and competent a market is said to be. The Foreign exchange market and stock market have lower costs for such transactions of any major asset class.

It is considered to be much more cost- efficient to trade in Forex in terms of both commissions and transaction fees. An online website for example charges no fees or commissions and at the same time offer traders an access to all relevant market information and trading tools. On the contrary, online stock trade commission ranges from $7.95 - $ 29.95 per trade and up to $100 or more per trade with full service brokers.

Another thing to consider, which is an important point is the width of the bid / ask spread. Regardless of the deal size, foreign exchange dealing spreads are normally or common in 3-4 pips (anyway a pip is .0001 US cents) in the major currencies. Generally, the width of the spread in a foreign exchange market transaction is less than one tenth (1/10) that of a stock transaction, which could contain a .125 or one eight (1/8) wide spread.

Since transaction costs are paid via bid/ask spread, there has to be no charges to trade or hidden fees. There are instances that there would be extra charges asked by good brokers for some non compulsory services or access to particular reports. A smaller spread is visibly better. Since brokers are taking the other side of all the customer trades, brokers gain profit by making the spread between the bid and offer prices. You may find that find spreads vary by broker.

In order to be successful in trading on the foreign exchange market, you have to find a good broker.

Interest rates play the foremost important role in moving the prices of currencies in the Forex market. As the institutions that set interest rates, central banks are therefore the most influential factors. Interest rates dictate flows of investment. Since the currencies are representations of a country’s economy, differences in interest rates affect the relative worth of currencies in relation to one another. When central banks change interest rates they cause the Forex market to experience movement and volatility. In the realm of Forex trading, accurate speculation of central banks’ actions can enhance the trader's chances for a successful trade.

An increase in interest rates encourages traders to invest within that market and causes the demand for the currency to rise. As demand rises, the currency becomes scarcer and consequently more valuable. Investors are drawn to the currency, causing it to appreciate, because they will gain a higher yield on their investments, as in the Jane example. In order to purchase the country's assets (stocks or bonds), Jane will have to convert her domestic currency to the target country's currency also increasing demand. Conversely, a fall in interest rates discourage investors from purchasing assets in that particular economy, as the return on their investment is now smaller. The economy's currency will depreciate as a result of the weaker demand.

An online FOREX trading course can be a great tool for those looking to participate in the FOREX market. FOREX has become very popular because most trades occur online whereas in the past much of the FOREX trading occurred over the phone. The internet has made it possible for everyone to use the FOREX market and not just large financial institutes.

For those just getting into FOREX trading there are many different course available in many different forms. The courses can provide you with all the information you need to start trading. You will find trading courses that are free and those that will have an associated fee. You do need to be careful with free training courses.

You need to see who the individual is offering the course. Are they an expert in the field or just writing who wanted to publish a book? What type of course are they offering? Many courses come in the form of a book while others may be a series of videos or lessons. If it is a free site try to find out why they are providing this information for free.

You need to be careful with free online FOEX trading courses as many times they will be pushing you to use one specific site or you may have to enroll in a specific program. Many times a book may push you to use a specific system or program. It is important you answer these questions as many times free information may not necessarily be honest.

So it is recommended that instead of using free online FOREX trading courses you use the courses that are available in the form of articles and advice. Many sites are dedicated to FOREX information and by just going though all they have to offer you will find yourself on a trading course.

The best types of free online FOREX trading courses are those that take the form of article series or advice. Many sites that are dedicated to FOREX will provide you all of the information you will find in a trading course. This information will be unbiased and practical as it can actually be applied to FOREX trading.

THE PRICE OF GOLD bounced from an overnight dip to $1101 an ounce in London dealing on Friday, heading into the weekend 0.9% higher from last week as world stock markets held onto their near-3% gains.

Crude oil fell towards $76 per barrel while government bonds were flat, as was the Dollar.


"Gold is undergoing a slight correction, as the market is very long and the rise has been quite fast over the last few days," says a note from MKS Finance in Geneva.

"The USD is still determining the trend."

"The Dollar is a gold driver but it's not the only one," counters Walter de Wet in today's Commodities Daily from Standard Bank. "[There's] a clear step-change in the gold price irrespective of which currency is used.

"Real demand for gold is rising,"

"Gold's surge may indicate that investors fear the next stage of the crisis will occur in the foreign-exchange markets," says Philip Coggan in his Buttonwood column for this week's Economist.

"Developed-country governments have attempted to control bond yields through quantitative easing and to support stock markets through ultra-low interest rates. But they cannot support their currencies as well without risking problems in the bond and equity markets."

New data today showed US import prices falling faster than analysts forecast in October, while the monthly trade deficit widened by nearly a fifth to $36.5 billion.

The 16-nation Eurozone reported an end to its 15-month recession, but with weaker-than-expected GDP growth of 0.4% in the third quarter.

Thursday saw the US Treasury report a record October deficit, the 13th monthly shortfall in a row. The Federal Reserve last week vowed to hold its key interest at next-to-zero for an "extended period".

The Bank of England here in London has now created £200 billion of new money since March, using it primarily to buy government bonds as Whitehall's deficit hits a peace-time record equal above 14% of GDP.

China's central bank reported record gold reserves this spring of 1054 tonnes. The Reserve Bank of India bought 200 tonnes of gold from the International Monetary Fund at the start of November. Russia's gold reserves have risen by more than 71 tonnes since January.

"[Thursday's] price action shows as a large outside day," says Scotia Mocatta's technical analysis today, "typically good reversal warnings."

"Gold and silver yesterday surpassed both the high and low from Wednesday," agrees a London dealer in their technical note.

A lower close would be needed on Friday for technical analysis to "confirm" a change in short-term direction. The gold price in Dollars has risen 6.0% since the start of November.

"You just don't see increases like this over the short term," says Steve Condon, head of investor advice at Truepoint Capital in Cincinnati, speaking to the Associated Press.

"This isn't materially different from gambling."

The gold price has risen for 11 of the last 13 weeks against the Dollar, compared with nine and seven against the British Pound and European single currency respectively.

"[People] are bringing in jewelry from the '70s and '80s they don't wear anymore," says Anthony Iannelli, owner of Iannelli Diamonds in New York's diamond district, speaking to the AP.

"They're following the news and see gold prices are high. They realize they have a little cache, and want to take it out of the vault."

Asked what will happen if gold reaches $1500 an ounce, "I think it will just about kill the gold jewelry business," he says.

New figures released by the Birmingham Assay Office yesterday showed UK hall-marking down 40% between July and Sept. compared with the same period last year.

The number of silver and platinum items hall-marked both rose slightly.



Adrian Ash



Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK's leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen's Award for Enterprise Innovation, 2009 – where you can Buy Gold Today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

I ventured into the Forex market a little more than 1 year ago. I have tried and tested many different types of trading techniques and styles. Most were failures and some were successful. From my experience, traders making money in Forex will not reveal their trading system, simply because somebody has to lose money in order for you to make money.

Currently I have two strategies working for me. I started with a demo account a little more than one year ago and used the obvious techniques such as technical analysis and fundamentals. Technical analysis seemed to be the easiest method for an inexperienced trader since it only required looking at charts as opposed to watching the news. I used indicators such as MACD, Fibonacci, and RSI to help assess the market and make a prediction on price movement. Needless to say I was successful in my demo account, however when I went live, fear set in and I could not trade using the same techniques I had developed over 4 months of trading with a demo account.

The stress was too much and like a lot of people, I started looking for a Forex signals provider to minimize the time spent and stress. After some due diligence on quite a few Forex signals providers, I did find a reliable Forex charting software package that provided excellent signals. To my surprise, the signals worked. The only difficult part was to discipline myself to take each signal whether I agreed with it or not. After all, the company I chose had a winning track record for 3 consecutive years.

Now that I had a positive flow of income from a Forex signals provider, I decided to open a second account using my own trading system. This is where I discovered what I feel is a full proof system when it comes to making a fast 30 to 50 pips in Forex.

Trading now for a little more than 1 year, I noticed that the market moved on speculation. Speculation based on fear and news events, such as the CPI and retail sales. I noticed that between the times of 4:30 am eastern and 8:30 am there was a lot of critical news in majors such as the Euro and the British Pound. The market would move at the exact moment these major news events were released. If a news event was due out at 4:30 am on the British Pound, more than likely the market spiked at that exact moment 30 to sometimes 50 pips up or down. What I started to do was trade on these news events. I would wait until that exact moment the news was due out and execute a trade when the market moved more than 7 pips from its current price 15 seconds before the news is released. A stop-loss should be set at 10 pips above or below the current price.

The trick to this method is executing the trade at the right time and discipline yourself to keep your stop-loss very tight, setting it to no more than 10 pips after you got into the trade. The reason being, this works all of the time, but if you click too soon or too late you could fail to predict the direction of the market. However, when you are right, your winning trades will outweigh your losing traders significantly since you are looking to make a gain of 30-50 pips and if you a wrong a loss of only 10 pips. I have used this method for 5 months and it works.

Forex trading refers to an international, 24/7, over the counter, exchange market where currencies of different nations are bought and sold. Trading is always done in pairs assuming the price of currency bought to go up and that sold to fall down. It is the largest liquid financial market making it impossible for any single investor to influence the prices of currencies.

There are two kinds of Forex investing strategies:

TECHNICAL ANALYSIS FUNDAMENTAL ANALYSIS

TECHNICAL ANALYSIS:

Technical analysis is mostly undertaken by small and medium size investors. A technical analysis considers factors that are actually affecting the market rather than factors that can affect it. Thus the price quoted reflects all the factors that have influenced it. Only market generated facts and figures are taken into account and factors like fear, hope, expectations or other changes are not considered. Thus the analysis is generally based on these suppositions:

* Price reflects all actual market movements. That means price includes everything known to the market like supply and demand of foreign exchange, political factors, trade agreements etc. It is not concerned with what resulted in change rather deals with actual changes. It works on the assumption that price can take only one of the three directions:

Upward, downward and sideward

* It rest on those market patterns that have been identified as significant. That means those factors which are repetitive in nature or will produce desired results.

* History always repeats itself as human psychology changes very slowly with time. That is market movements are predictable.

VARIOUS TECHNICAL INDICATORS ARE:

1. RELATIVE STRENGTH INDEX:

It takes into account the ratio of upward and downward movements in index and expresses it in the range of zero to hundred.

2.CHARTS:

Charts include various hills, slopes, curves that develop on a chart over a time and reflect some major and minor changes in pattern. Some of the chart formations include:

* TRIANGLE * RECTANGLE * HEAD AND SHOULDERS * DOUBLE TOP AND BOTTOM * SAUCERS * V

3.GAPS:

A gap represents area on a bar chart where no trading took place.

* UPGAP: it is formed when the lowest price on a particular day is more than the highest price of previous day.

* DOWNGAP: it is formed when highest price of a certain day is less than the lowest price on previous day.

NUMBERS:

Various number theories are used in technical analysis like:

* Fibonacci theory * GANN

STOCHASTIC OSCILLATOR:

This indicates the overbought or/and undersold condition. It uses a scale of zero to hundred percent.

FUNDAMENTAL ANALYSIS:

It is the one where current economic, political, financial situation of the country of currency is studied. A country's economical and political condition depends upon many factors like the interest rate, unemployment level, exports and imports, per capita income, percentage of population living above and below the poverty line, inflation, trade relations with other countries, tax policies etc.

A fundamental analyst studies and evaluates all these factors before coming to any decision. Thus it helps in long tem decision making and making profits in short term by extra ordinary developments.

Some of the indicators that help in fundamental analysis include:

1. GROSS DOMESTIC PRODUCT:

It reflects total market value of all the goods and services produced in a country during a given year.

2. RETAIL SALES:

This reflects total receipts by all the retail stores in a country.

3. CONSUMER PRICE INDEX:

It reflects change in prices of consumer goods.

4. BUSINESS CYCLE:

It reflects various phases through which a business passes. These phases include:

* EXPANSION * PEAK * RECESSION * DEPRESSION

5. MONETRY POLICY:

It controls the supply of money in an economy.

Trading successfully needs knowledge, time and understanding of a market. You cannot earn continuously in a Forex market due to its volatile nature. Thus as a trader you should try to consider both technical and fundamental strategies of forex trading and make decision based on market expectations and trends. Try trading with money that you can afford to loose without any regrets. Trade with logic and if you are not sure quit and take rest for some time.

Before we go into 7 rules of Forex Trading, that have been approved by a number of full time and successful traders, I'd like to narrate this story.

There was a lion, a donkey and a fox all keen to go out rabbit hunting together. After a productive day of hunting, the three of them sit around the pile of rabbits and the lion asks the Donkey, "Mr Donkey, would you please divide the pile into equal shares for the 3 of us?". The Donkey obliges and counts the rabbits into three equal piles for each of them. The Lion immediately roared and pounced him. He then piled all the rabbits on top of the donkey and asked the Fox "Mr Fox, would you please divide the rabbits up evenly between us?". The Fox takes out 1 scrawny rabbit from the pile and puts it in a pile for himself then say "There you go, Mr Lion, that's your pile" pointing to the large pile of rabbits. The lion says "Mr Fox, where did you learn to divide so equally?" and the fox says "The Donkey taught me."

The moral of the story is to learn from others' mistakes. Now we proceed to our 7 rules. These are for you benefit as mentioned earlier, from experienced, successful traders.

Rule #1 Never risk any more than you can afford to lose, you will lose money, all traders do, make sure you're not sacrificing anything else important in the process

Rule #2 Never risk any more than 2% of your margin trading account on a simple trade. For mini account holders, 2% of $300 would be $6 so realistically you would need around $15 so you can make this 5%. As soon as your account size is big enough, make this 2%.

Rule #3 Always use a stop loss order. If you haven't figured out where your stop loss order and limit order should be at the start of your trade then you shouldn't be trading.

Rule #4 Know your exit point before you enter a trade.

Rule #5 Demo Trade First: Become successful with paper trading when there's nothing on the line before you open a real account.

Rule #6 Take a breather when your equity has taken a dive.

Rule #7 Don't let your emotions call the shots: Stay cool, calm and collected. Patience and a clear head will win the game.

Buying and selling of different currencies of the world is known as forex trading. Forex or foreign exchange market is the largest trading market in the world. Forex trading market deals with more than US$2 trillion everyday. It has become favorite option for currency traders. Foreign exchange market is extremely different from stock exchange market. Currency trading is always done in pairs like USD/EUR or USD/GBP etc. Forex trading market works 24 hours a day.

Several investors and traders are joining forex trading every day. First time investors should keep in mind that forex trading works on certain principles. They should remember that it is an investment not an income. Currency can fluctuate at any time so right time investment is the best investment in forex trading. You should have another source of income while dealing in forex trading. If you are a first time investor don't believe in demo trading because it can be dangerous in long run. After getting all information about broker's system you can start forex trading with small amounts. You should always invest that amount for which you can bear profit or loss.

Sometimes forex trading is a risky business but the trader can reduce the risk by following best trading strategy. Trader should know the right time to enter and exit the market. Forex trading is an easy and simple trading business. You can do forex trading while sitting in your home. It requires a PC with Internet connection and a bit of time. You can perform all the transactions online with a small fee and the best thing of forex trading is that you don't have to pay large amounts to professional. Forex trading market offers a large number of online options for currency trading. Before joining it you've to search for the best option to achieve your goals.

Beginners can use forex trading software programs to track and analyze market conditions. These programs will help you in finding the best investment opportunities. Forex trading software enables you to make right decisions about investments. Beginners shouldn't try to predict the forex trading markets because currency fluctuation may occur anytime. You can handle forex trading by using trading system and money management strategy.

Don't be emotional in forex trading. You should behave like a businessman that can efficiently test the market data. Testing system and best money management strategy lets you to invest your capital in the best way. While paying minor attention to the ups and downs of the forex trading market you can easily maximize your profits. You can make profitable trades by focusing on the hours when market generally makes their biggest moves.

With some research, a lot of skill and a bit of luck you can enjoy forex-trading market completely. You've to be smart at the time of making choices and taking risks. The trading process is so simple and can be done with a small amount. You don't have to wait for the opening and closing of stock market because it works for twenty-four hours. Several trading companies are providing free information online. You can search for required information before making any decisions. Some companies also offer free trail periods; you can also check it out.