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How You Can Earn 50 to 500 A Day Currency Trading From The Comfort of Your Own Home

Margined Currency Trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences one percent swing in value. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investor's financial well-being. There is no guarantee that readers of this document or our websites will make money. Readers use the information and links entirely at their own risk. Erol Bortucene Cynthia Macy owners of DayTradeForex.com do not accept any liability in respect of any loss or damage arising from or in connection with any use of the information on or accessed through this document or our company websites. All intellectual property rights in this...

Why should you trade forex market

Forex trading day starts in Wellington, New Zealand followed by Sydney, Australia, Hong Kong and Singapore. Three hours later trading day begins in Dubai (UAE) and other Middle Eastern countries. In couple of hours they are followed by Frankfurt, Zurich, Paris, Rome London is the last one to open in Europe and five hours later it is followed by New York, Chicago and finally the West Coast. The busiest hours are early European mornings because at that time major Asian exchanges are still open and European afternoons because at that time major US markets are open at the same time as Europe. Therefore, wherever you live and whatever your work hours are you can always find some time to participate in forex trading as opposed to stock market where you are usually limited to the regular business hours.

Benefits Of Forex Trading

There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market as a business opportunity 1.LEVERAGE In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. Some Forex firms offer 200 to 1 leverage, which means that a 50 dollar margin deposit would enable a trader to buy or sell 10,000 worth of currencies. Similarly, with 500 dollars, one could trade with 100,000 dollars and so on.

Forex Trading Is A Serious Business

Forex trading must be seen as a serious business, not just a casual roll of the dice or a leisurely pursuit. If you approach trading as a means of getting your dose of adrenaline, do yourself a favour by staying away from it - you will do less harm to your pockets by going to the latest Louis Vuitton sale or by bidding on that vintage car on eBay for the adrenaline shot. Both serious and casual traders, of course, dream of making it big in the forex market, but it is not the goal that counts, it is the preparation and dedication that is important. Forex trading should be considered and treated as a serious business, just like other types of businesses. Approaching trading from the perspective of a shrewd business person can greatly tilt your chances of success to your side.

Currency Realignment and the Evolution of Currency Trading Theory

As FOREX trading evolved during the 1970s, the focus was, indeed, on balance of trade. The relationships seemed simple. Countries whose goods were in the greatest demand had the highest currency parity. Ah, life was easy. However, the global economy grew far faster than most had envisioned. In fact, money and currency transformed from exchange mediums to commodities, but with a twist. Once the gold standard was removed, money supply could expand and contract more freely. This set the stage for various revaluations that provided spectacular profit opportunities. When a country suffered from too much expansion, its central bank usually intervened by raising interest rates. This raised a red flag that the brakes were being applied to avoid inflation. FOREX traders postulated that rising interest rates represented an exit or sell signal. Few wanted to hold a currency that was likely to inflate against other more stable currencies. For a brief time, traders followed this theory. However,...

How To Overcome The Odds Of Trading Forex

It is one of the hardest jobs in the world to make big money. And trading forex is not one of the easiest ways - despite what many new traders believe. Many traders fail, and they empty their trading accounts before they learn how to exploit the forex market to their advantage. Although there are also traders who are successful in forex trading, their numbers are small compared to the majority of losers. Many times, traders are not aware that they have the power and might to shift the odds to their favour, that they can dramatically increase their chances of success if they want to. The main reason why many traders get defeated by the market can be attributed to their lack of knowledge. In this 21st century, where the buzzword is knowledge, it is not just a matter of working hard, but also a matter of working smart. Knowledge is the key that can open many doors - if you have an intimate knowledge of how something works, you can then come up with ways to exploit what you know to your...

Understanding Forex Trading Truisms

If you have been around Forex Trading for a day, you have heard the popular truisms Cut Losses short, Let Your profits run, Never Add to a loser, Always use stops, and Go with the trend. These are some of the popular ones. I will show you how to apply these truisms. The traders who state these, without explaining the proper principle behind them will cause a novice to lose their capital. You have to remember that no single rule (or truism) will spell the difference between Profit and Loss. It is with the use of a system and money

Archetypes in Forex Trading Which One Are

The Gladiator Samurai - This person loves to trade even more than winning or losing. Being in the action is the objective. We call it the gladiator type because gladiators had no fear of death and focused on the battle itself. A gladiator type of forex trader has the advantage of focusing on being committed to the trade without being frenetic about the result. The disadvantage of this personality is that it can lead to overtrading and unnecessary losses. Few gladiators survive for long.

Key Principles of Forex Trading

These principles can help shape the forex trader's develop strategies and tactics for trading. Yet, no matter how many principles are developed, trading forex will always be a combination of technique, art, emotion, and luck. Almost every field has its principles that provide a foundation for performance and prediction. One of the most famous is Isaac Newton's Philosophiae Naturalis Principia Mathematica (Mathematical Principles of Natural Philosophy), commonly known as the Principia. It codified and revolutionized the study of physics. Forex traders can only dream about having laws that guide the markets as surely as those that explain the physical world. This book has discussed many dimensions of forex trading, and we can conclude that there are some generally accepted principles that can make your trading less painful. 1 - Asymmetrical Information - In other markets, such as equities and futures, there is a democracy in the distribution of information. price charts for these...

The Path to Success in Forex Trading

The trading environment used by the trader is more important than is usually recognized. Getting started the right way requires having a trading environment that serves the needs of the trade. Having two screens is a minimum suggested configuration. One screen should provide access to charts, and the second screen should enable access to Internet-based information and other activity. Having more than two is not unusual among more serious traders. The forex trader beginning today can use any new computer due to the advances in computer speed and capability. The most important aspect of organizing your own trading room is whether it is dedicated to the trader. The trading room should be isolated from family interference. Trading with kids running around is too distractive. Today's Internet connections provide easy access via high-speed links (DSL, digital cable, etc.). Trading through a dial-up should be avoided, but it can be used as a backup. Central bank of New Zealand The path to...

Ten Steps Before Trading Forex

You should trade forex in an environment that is conducive to trading, not in the middle of your bedroom or family room where other members of the family are interrupting. The workstation should allow easy scanning of the markets. Many traders have multiple screens. You don't have to get carried away. A two-or-three screen system helps a lot where one screen is for internet-based scanning, email, etc., and the other two screens are devoted to presenting market charts that are used to evaluate price action. As a forex trader, you can access many daily published reports around the world. Many banks have currency research and release daily commentary. Information portals have developed that enable you to enhance your knowledge. Reading these reports provides a top down look at the world. For the beginner it can bring to light trading opportunities that they would not have noticed otherwise. Reading too many of them, however, is not advisable The result may be overload and a bit of...

Conclusion Paths to Success in Forex Trading

Forex trading, it should be clear by now, offers major opportunities and is both challenging and exciting. Yet many people want to start trading Forex without the necessary training. There are many paths to success in trading Forex and many strategies one can use. But successful traders have one thing in common- training and experience. The goal of this book is to provide a framework of knowledge and skills and in-effect a map of what forex trading involves. Another way to characterize the paths to success is to summarize some key steps everyone needs to think through Successful trading requires staying in the game. Learning risk control and managing your trades is a key to moving from the level of beginner to making Forex trading a career. . Currency Trading Terminology A person new to currency trading may become confused by the terms involved. Every new field has its own terminology. Forex has its distinctive features. Let's look at a few.

An Inside Look at an Innovative Forex Trading Method

Rhe Quarters Theory improves and simplifies the decision-making process in foreign exchange trading through the use of a revolutionary new methodology applied to the price behavior of currency exchange rates and trend developments in the Forex market. This book provides currency traders with a step-by-step guide to the unique premise of The Quarters Theory and offers many real-life market examples, variations, and innovative Forex trading strategies. Ilian Yotov, a longtime Forex strategist, delivers a new, reliable compass to help you navigate through the complexities of the daily fluctuations in the prices of currencies. He shows unique ways leading to consistently better trading decisions and helps maximize your trading results. Introduces a fresh new approach to foreign currency trading With The Quarters Theory as your guide, you will quickly gain that extra edge that will help you to make more profitable decisions in your Forex trading activities.

Trading ForeX

The Forex market may seem like a new market to those of us in the United States but in actuality this market has been around for many years. There are two developments that brought Forex trading to life and to the United States. First was the decision that led to the free-floating market we trade today. The catalyst was President Richard M. Nixon's decision to abandon the gold standard in 1973. Subsequently, the fixed-rate system fell apart and currency values were set by supply and demand. Second was the Commodity Futures

What Drives the Forex Market

Part I of this book offers a look at the big picture in foreign exchange (forex) trading, that is, what forces influence currency price movements. These forces are accepted by economists around the world as responsible for changes in the value of currencies. The person learning to trade forex or trying to improve his or her trading will benefit from a gain of knowledge of these fundamentals. In fact, as you will see, fundamental forces act as leading indicators of currency movement.

What Does It Cost to Trade Currencies

An online currency trading account (a mini-account) may be opened for as little as 100. Do not laugh mini-accounts are a good way to get your feet wet without taking a bath. Unlike futures, where the size of a contract is set by the exchanges, in FOREX you select how much of any particular currency you wish to buy or sell. Thus, a 3,000.00 grubstake is not unreasonable as long as the trader engages in appropriately sized trades. FOREX mini-accounts also do not suffer the illiquidity of many futures mini-contracts, as everyone feeds from the same currency pool.

Exploiting Information About Economic Growth

Interest rate and inflation levels are the main ingredients of forex price movements, and economic growth data follows closely in shaping the currency flows. Countries that are experiencing economic growth generate more jobs in their economy. Consumer spending therefore increases. In turn, the demand for housing increases as people have more disposable income and can better afford housing. Other sectors, such as the auto sector, also experience changes in demand as consumers' propensity to spend reflects greater confidence regarding their economic conditions. The transactions of a modern economy intimately involve global flows of capital as exports and imports are part and parcel of the vitality of an economy. The term economic growth is really a wide category. How is economic growth measured and tracked by the forex trader The rate of economic growth or development of a country is mainly measured essentially by its gross domestic product (GDP), so news about GDP becomes an essential...

Commodity Futures Modernization Act of 2000

Currency trading remains much less regulated than either the stock or futures markets. This means the prospective trader must be especially knowledge Check in on the CFTC and NFA Web sites from time to time for actions against broker dealers and for updates on any pending regulation that might affect U.S.-based FOREX traders.

The Personality and Performance of the US Dollar

Gaining a fundamental understanding of the U.S. economy is a critical part of being prepared fundamentally for forex trading. The U.S. economy is still the largest developed economy in the world, and therefore the U.S. dollar reflects this importance. Much of the world's trade is denominated in dollars, and global reserves of central banks hold over US 4 trillion, which is about 60 percent of all reserves, according to latest data. It is true that we are in a period when the world economy is growing, particularly with the growth of Asia. This growth may mean that in the coming years, the preeminence of the U.S. economy will diminish. However, as the U.S. economy remains the critical pivot point of the world economy, forex trading will continue to pay close attention to U.S.-based economic events. In particular, the forex trader, in trading a currency pair involving the dollar, is actually making a judgment or a bet about the direction of the U.S. dollar with regard to the other pair....

Chart Formations and Price Patterns You Should Know

The challenge to the new trader in forex is to build a database of experiences in trading patterns. The beginning trader lacks a history of trading. The trader with years of trades accumulated is able to match the pattern he sees with his successful experience with that pattern in the past. The question often arises How long will it take to become a successful trader The answer is not one of time duration but one of trades. After accumulating an experience base of 10 trades, there is almost no basis for generalizing about future success. After accumulating an experience base of 100 trades, traders will be able to detect patterns not only in the market but in their own trading. The critical path to success in forex trading is a constant application of pattern-based trading and knowledge.

Check the Weekly Crude Oil Copper and Gold Charts

Beyond having an impact upon their release, confidence indicators can also provide a leading indicator for the forex trader. If business confidence is at its highest in years, the market will interpret it as positive for the currency because greater confidence indicates expansion and growth of an economy. Where there is expectation of expansion and growth, there is the concomitant expectation of interest rates not going lower and possibly going higher. These confidence surveys are not perfect predictors of resulting currency moves. They are one of the most important ingredients in the mix of fundamental forex factors.

Volatility in Forex and Its Dimensions

This chapter reviews how volatility should be used in helping the forex trader evaluate market conditions. Volatility conditions, when added to classical support and resistance, and trend analysis identify high-probability trading opportunities and patterns. A technical quantitative measure of volatility is the standard deviation of the price range over time. Zero volatility doesn't mean that the price has stayed the same. It means that there hasn't been a change in the price range. The key notion to understand is for the forex trader to observe market ranges and notice whether they are stable or varying.

Trading Styles and Setups

One of the major reasons that forex trading has such a wide appeal is the presence of different trading styles that can be applied. Those traders looking for very quick moves can adapt scalping strategies and tactics. A great portion of forex traders put on trades that have moderate-size intraday durations that allow the currency pair to move through a range. These traders go for 10 to 30 pip moves. Multiple day trades allow for larger profit objectives of 100 pips or more. Forex trading can also include the goal of trading for income. This goal is featured in carry trades and is a dominant strategy of large hedge funds and institutions. But carry trades are also possible for the average retail trader. As we can see, there is no single style of trading, nor any one technical indicator or methodology that will be sufficient. Successful trading of forex is a combination of fundamental knowledge, technical tactics, and experience in pattern recognition. While there are many paths to...

Fear and Greed Greed and Fear

By nature all people are emotionally attached to their money. Since the you will be trading with funds that you have already defined as nonessential to your well being, you must cultivate an attitude of emotional detachment from your FOREX trading account. This is emotional detachment not indifference or nonchalance. Otherwise, each sour trade will infest you with stress, worry, and fear. Currency trading is not worth an ulcer. On the other side of the coin is overconfidence. One very profitable trade can induce the novice trader to go gung-ho and trade more currency pairs than he or she can track efficiently in one trading session. Overconfidence tends to breed avarice and avarice can lead to financial shakiness. Moderation, levelheadedness, experience, and intuition all play key roles in the formula to successful currency trading. Knowing when to take a calculated risk definitely helps, too.

The Right Way to Use Simulation Accounts

One of the most useful tools to prepare for forex trading is the demo or simulated account. All firms provide these accounts. They enable a person to practice trading without the risk of loss. The trades go through an identical platform that would be used in real trades, but they do not execute. Instead, the profit and loss are hypothetical but tracked in the account history. The demo accounts are viewed and used by the forex firms as marketing tools for converting prospects into customer accounts. They are not designed to train people on trading. The result is that many people have observed the experience in going from simulated accounts, where they were making large profits, to real accounts with sudden and large losses. Their conclusion has been that simulated accounts are not a valid way to prepare for trading. That is a wrong conclusion. While the real test of one's capability is in trading real dollars, testing one's strategies and tactics through simulation can be very useful...

Conducting Your Own Fundamental Analysis

The forex trader today is very lucky. The Internet provides unprecedented access to information and data perhaps too much information. A good technique to use that provides an efficient way to pull information out of the World Wide Web is to use the search engines and input the right terms. For example, as the trader prepares to evaluate a currency to trade, he or she should also scan the latest news. Here is how to do it

About This Book

From the very beginning we must emphasize that currency trading may not be to everyone's disposition. The neophyte investor must be keenly aware of all the risks involved and should never trade on funds he or she deems necessary for survival. If you have some experience with leveraged markets such as futures or options, you owe yourself a look at FOREX. Those who have never traded will find it the purest of all speculative adventures.

Summary

Tracking changes in how an economy is growing is clearly an important part of gaining a sense of whether a currency will be strengthening or weakening. The relationship of growth and currencies applies throughout the world. While there are many aspects to economic growth, the forex trader's main focus should be on interest rates. An increase in interest rates tends to strengthen the currency. The trader needs to go further than just knowing what the rate levels are. They trader needs to assess whether the economy is strengthening or weakening. Housing data is one of the most important areas that affect the decision to increase rates, keep rates the same, or decrease rates. The forex trader should keep track of housing data when trading a currency.

Broker Policies

There are several active forums and discussion groups on currency trading on the Internet. Spend a little time in these forums reviewing what others have experienced with certain brokers. Feel free to ask questions, too. Do not get addicted to the discussion groups and forums, however. Although they are a great way to occasionally find information and share information, they are, for the most part, a distraction to the serious trader. The authors check in with the top two or three boards about once a week for perhaps ten minutes each, maximum.

Swing Analysis

Within the framework of this book, we will define swing analysis as the study of the distance between local peaks and troughs in the closing prices for the purpose of identifying recurring patterns and correlations. The swing chart, like its older sibling the point and figure chart, requires the use of a massaging algorithm that filters out lateral congestion (whipsawing) during periods of low volatility. For this purpose, a minimum box size must be selected. Within currency trading, this is almost always a single pip in the quote (second) currency of the currency pair. Additionally, a minimum reversal quantity must be selected. This is simply the number of pips (box sizes) required before a retracement can be drawn in the opposite direction (the continuation of an existing trend requires only one box size to plot the next point).

Rollovers

In the spot FOREX market, trades must be settled within two business days. For example, if a trader sells a certain number of currency units on Wednesday, he or she must deliver an equivalent number of units on Friday. Yet currency trading systems may allow for a rollover, with which open positions can be swapped forward to the next settlement date (giving an extension of two additional business day). The interest rate for such a swap is predetermined, and, in fact, these swaps are actually financial instruments that can also be traded on the currency market. to day according to the precise interest rate differential between the base and the quote currency. Such rollover rates are quoted in dollars and are shown in the interest column of the FOREX trading system. Rollovers, however, will not affect traders who never hold a position overnight, since the rollover is exclusively a day-to-day phenomenon.

About the Author Abe Cofnas

After more than a decade as an equity broker, futures trader, and technical analysis instructor, Abe Cofnas founded Learn4x.com in 2001. Learn4x was one of the first firms in the world to provide web-based interactive training exclusively on forex trading. Building upon expertise in geopolitics and economics, (he holds a Masters Degree in Political Science, and a Masters Degree in Public Policy, both from the University of California) Mr. Cofnas created the Virtual Trading Room in 1998, specializing in training using virtual simulation. When forex trading became accessible to the retail trader on their desktops, the need for effective training in forex developed. Futures Magazine selected Mr. Cofnas to write its Forex Trader column and create Forex Trader, educational content at www.futuresmag.com . Since 2001 this column has been providing innovative observations and educational tips on forex trading to a worldwide readership of more than 65,000. Mr. Cofnas is also a consultant to...

This Is Not A Free Ebook

Copyright Mark McRae and www.surefi re-forex-trading.com Info surefire-forex-trading.com Trading any financial market involves risk. This ebook and the website www.surefire-forex-trading.com and its contents is neither a solicitation nor an offer to Buy Sell any financial market. The contents of this ebook are for general information purposes only (contents shall also mean the website www.surefire-forex-trading.com and any email correspondence or newsletters related to the website). We reserve the right to change these terms and conditions without notice. You can check for updates to this disclaimer at any time by visiting www.surefire-forex-trading.com tou.html The content of www.surefire-forex-trading.com and this ebook are copyright and may not be copied or reproduced. FOREX TRADING Congratulations on your great decisions to buy ''Sure -Fire Forex Trading''. It is my hope that you find true value in this ebook and learn something new about how to trade the forex market.

Nfa And Cftcrequired Disclaimers

Trading in the Foreign Exchange (FOREX) market is a challenging opportunity where above-average returns are available for educated and experienced investors who are willing to take above-average risk. However, before deciding to participate in FOREX trading, you should carefully consider your investment objectives, level of experience, and risk appetite. Do not invest money you cannot afford to lose.

Foreign Exchange The Fastest Growing Market of Our Time

Over the past few years, currencies have become one of the most popular products to trade. No other market can claim a 57 percent surge in volume over a three-year time frame. According to the Triennial Central Bank Survey of the foreign exchange market conducted by the Bank for International Settlements and published in September 2004, daily trading volume hit a record of 1.9 trillion, up from 1.2 trillion (or 1.4 trillion at constant exchange rates) in 2001. This is estimated to be approximately 20 times larger than the daily trading volume of the New York Stock Exchange and the Nasdaq combined. Although there are many reasons that can be used to explain this surge in activity, one of the most interesting is that the timing of the surge in volume coincides fairly well with the emergence of online currency trading for the individual investor.

Fdr Ex Capital Markets

WARNING Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds, and therefore you should not speculate with capital that you cannot afford to lose. *Without proper risk management, currency trading has a high degree of leverage which can lead to large losses as well as gains. **Please note FXCM Micro in its discretion may or may not offset individual transactions unlike transactions in most FXCM Standard accounts.

Modern Currency Speculation

In a previous book I authored entitled The New Precious Metals Market, I called attention to the relationships between physical standards such as gold and silver and commodity standards that rely upon relationships called parity. Interestingly, the parity concept and term is conspicuously missing from modern currency trading vernacular and recently written texts. Being somewhat of a traditionalist, I return to the use of parity in this book as a term of art and vital currency trading principle. Today's currency traders can focus too closely upon the money. What is the British pound doing today, this hour, minute, or even second A narrow focus misses the big picture. Currency buys commodities and services. Currency has a value or standing relative to commodities and services. This is parity. It is expressed as a ratio or a price. Parity is where modern currency trading becomes exceptionally exciting and broad. For the moment, we have global commodity markets trading in various...

Tick Stock Tick Stock Tick Stock

Just because you've got a nice, solid, grown-up stock portfolio doesn't mean you can't have any fun. Why not add currency trading into the mix at FOREX.com It's fast, exciting, open 24 hours a day -and there are no commissions.* But best of all, it's easy to get started. All you need is 250 to open an account. You can even try it out FREE with a FOREX.com practice account. Go to FOREX.com now. If you tike to trade, it's the most fun you can have with your clothes on. Forex trading, like all leveraged investments, carries a high level of risk and may not be suitable for all investors. Before deciding to trade forex you should carefully consider your investment objectives, level of experience, and risk appetite. *FOREX.com is compensated for its services through the bid ask spread. Trading Hours Sunday 5pm ET - Friday 4 30pm ET. FOREX.com is registered with the Commodity Futures Trading Commission (NFA ID 0339826). 2007 FOREX.com. 44 Wal Street, New York, NY 10005.

Back To The Basics A History Of The Forex

FOREX trading is conducted through individual contracts. The standard contract size (also called a lot) is usually 100,000 units. This means that for every standard contract you acquire, you are controlling 100,000 units of the base currency. For this contract size, each pip (the smallest price increment) is worth 10. Many companies offer mini accounts in which you can trade units of 10,000, where the pip value is 1 or even smaller. Most currencies have a daily range of fluctuation of about 100 to 150 pips on average, some even more. This gives FOREX traders the opportunity to make money on these changes.

Just Another Serendipitous Moment

If you really wanted to learn how to trade the forex successfully, where would you go Who would mentor you Who would teach you Who would show you how to take advantage of the market, instead of the other way around - the market taking advantage of you If you could get there on your own, you'd already be there. We're here to help you conquer the magnificent world of forex trading.

Effects Of Currencies On Stocks And Bonds

It is not the advent of online currency trading alone that has helped to increase the overall market's volume. With the volatility in the currency markets over the past few years, many traders are also becoming more aware of the fact that currency movements also impact the stock and bond markets. Therefore, if stocks, bonds, and commodities traders want to make more educated trading decisions, it is important for them to follow the currency markets as well. The following are some of the examples of how currency movements impacted stock and bond market movements in the past.

Be sure your defibrillator is fully charged

Currency trading is not for the faint of heart But if you live for the rush, you should be trading at FOREX.com. Because unlike stock trading, the action's fast and furious, 24 hours a day. And with up to 200 1 leverage, you get maximum buying power for every dollar you commit. Plus, there are no commissions* With over T00 billion executed each month at FOREX.com, and trillions traded every day, forex is the largest, most liquid market on the planet. How much longer can you resist Go to FOREX.com now and get started. Assuming, of course, your heart can take it.

For Whom Is This Book Written

To trade forex with confidence, you do not need a background in trading other markets. In fact, previous experience in investments may be counter-productive by allowing a person to bring prior concepts or baggage to learning forex trading. This book is designed to build your knowledge base and skills. Whether you are a total novice to trading in any market or coming from experience in equities, futures, or options, this book provides a map of how to navigate through the forex markets. If you have experience but have yet to achieve consistency in profitable trading, you will find many new insights about forex strategies and tactics. This book is designed to provide you with Trading forex is partly a misnomer. What do we really mean by trading forex Trading is the final act of putting on an order to buy or sell a currency pair. But the trade is also the result of a process of analysis that combines fundamentals and assessment of charts, as well as one's own psychology. To truly...

The Regulatory Environment

The foreign exchange market has no central clearinghouse as do the stock market and the commodity futures market. Nor is it based in any one country it is a complex, loosely woven worldwide network of banks. These two facts permeate every aspect of currency trading, especially the regulatory environment. It is difficult, if not impossible, to get a firm regulatory grip on such an entity. That cuts both ways. The market is very laissez-faire, but it is also a caveat emptor enterprise. If you wish to trade currencies, you must accept these facts from the beginning. clients and their suitability for currency trading. One effect of this will probably be eliminating account funding options by PayPal and other electronic transfers except for bank wires.

How this book is structured

The forex market has long been the exclusive playground of the big players, namely banks, institutional investors and hedge funds. But the playground is no longer restricted to just them individuals can also participate in this speculative game. However, independent forex traders can be disadvantaged in some ways due How To Overcome The Odds Of Trading Forex How are you going to tackle the odds that are stacked against you from the start in the forex trading business In this chapter, I will highlight the three Ms that have brought me success in this field Mind, Money and Method. Many traders, especially the inexperienced ones, are too fixated on finding the perfect trade setup, the perfect trading system or the strategy that never fails, thus neglecting the other more important aspects that are crucial to good trading performance. The forex market is extremely sensitive to economic and geopolitical news from around the world, especially those which relate to the industrialised...

The Barter Process and the Evolution of Money

This is not necessarily a historically correct portrayal. The metaphor simply illustrates how a barter economy develops and functions. Reviewing and understanding this fundamental economic system is important when we seek to determine FOREX trading strategies based upon relative values for global goods and services. With the decline of colonization, nations have become regional. Since global resources are highly regional, national wealth becomes a function of location, population, and sophistication. In turn, national wealth determines a currency's relative strength or weakness.

Forex Or Futures Which Is Right For

The Foreign Exchange (FX) is one of the fastest-growing investment arenas today. Large institutional investors and hedge funds are big players in the forex market and in the past three years, the Foreign Exchange market had an estimated 50 percent increase in volume. Some had credited this increase to the large activity created by the online currency trading for the retail investor. The forex market is an over-the-counter market, which means that there is no main exchange or clearinghouse. This is contrary to the futures markets which offer futures trading in open outcry and electronic access which is transparent pricing through a trading platform. This en

Forex The Atm Of The Investment World

Foreign Exchange currency trading, otherwise known as the forex market, offers a completely different investment asset class that offers leverage and virtually unrestricted access 24 hours a day. Forex trades virtually around the clock from the Asian market open on Sunday night until the U.S. market close on Friday afternoon. One of the attractions from an individual trader's perspective is that there is this constant access to make a trade. In other words, in every transaction, a trader is long one currency and short the other. A position is expressed in terms of the first currency in the pair. For this reason, currencies are always traded in pairs for example, if you have purchased euro and sold U.S. dollars, it would be stated as a euro dollar pair. With a volume of over 1.5 trillion daily, the Foreign Exchange market is the largest and most liquid financial market in the world more than three times the aggregate amount of the U.S. equity and Treasury markets combined. This means...

Exploring the Currency Market

Whether you trade stocks, commodities, currencies, or real estate on Mars, it is important to understand the marketplace in which you're working. If you have little market experience, if you're new to currencies, or if you want to brush up on market basics, this chapter is for you. This chapter does not contain an exhaustive history of the modern foreign exchange (forex) market. Instead, we look at the market from the perspective of an active trader. You will learn about the roots of the market, its structure and participants, how currency trades are executed, and the tools used to conduct business. If you have experience trading other markets, this chapter will brief you on the unique attributes of the currency market. If you have little or no experience in trading, the contents of this chapter are an essential part of learning the business of currency trading. The roots of our modern forex market are an interesting topic that has been covered ad nauseum by other trading books...

Forex and the Global Economy

You do not need a PhD in Economics to get a useful sense of the global economy. Before you start trading forex, you need to understand the big picture. New traders often want to skip any review and tend to look at where a price is at the moment. This is a mistake because important clues to trading opportunities are embedded in gaining a larger perspective. The knowledge base that contributes to successful trading is not all in the charts. Currency trading is not new. It began thousands of years ago when coins were issued to represent an exchange medium instead of barter. The image of Caesar on a coin increased confidence in the currency and transformed the efficiency of trading. During this period the credibility of the money was based on its being backed by precious metals. The value of currencies reflected a set value of a percentage of the metal into which the money would be converted. In fact, the term dollar arose out of the historical circumstance that silver coins were minted...

Come Into My Trading Bathroom

Before we get into specifics, I want to make sure you have a basic knowledge of currency trading. You might want to skip this section if you know what a pip is, how margin works, and that kind of stuff. In currency trading, there is no central exchange so all trading occurs in what is called over the counter trading where buyers and sellers match themselves up through various dealers or directly to each other on the banking trading systems. Two prominent trading platforms for banks and hedge funds are Reuters and EBS.

Harness The Power Of Leverage

Obviously, leverage can be a powerful tool for currency traders. While it does contribute to the risk of a given position, leverage is necessary in the forex market because the average daily move of a major currency is about 1 percent, while a stock typically sees much more substantial moves in excess of 10 percent. When trading in the forex arena, the use of leverage is pretty much considered similar to an interest-free loan from your broker. It enables a trader to use as much as 200-to-1 leverage. This translates to having 500 in margin while controlling a 100,000 position in the market, or 0.5 percent of the position value. This is considerable leverage that can work in favor of as well as against an online forex trader. Once again, leverage can be seen as a free short-term credit allowance, just as it is in the futures markets, allowing traders to purchase an amount of currency exceeding that of their account balance. As a result, traders are exposed to an increased level of both...

The Gold Standard and Alan Greenspan

If the world ever returned to a gold standard, currency trading greenspan011098.html would effectively end. In recent years, there were attempts to try to link currencies to gold. The Islamic dinar had emerged, providing the ability to trade using the gold-backed diner currency. Digital currencies are now emerging. They allow for internet transactions in a digital gold format. It is an exciting time to be involved in the world of currency trading. Until the arrival of the internet, currency trading was the domain of banks and large investors and corporations. The online trading revolution changed all that. Currency trading today is no longer an exotic form of investment. Rather, it affects everyone in the world and currencies can be traded by almost anyone with a computer. It's important to have a sense of the global economy as you consider what currencies to trade. Globalization has truly arrived, and with the power of the internet, the person interested in forex trading is virtually...

Historical Events in the FX Market

Before diving into the inner workings of currency trading, it is important for every trader to understand a few of the key milestones in the foreign exchange marker, since even to this day they still represent events that are referenced repeatedly by professional forex traders. When George Soros placed a 10 billion speculative bet against the U.K. pound and won, he became universally known as the man who broke the Bank of England. Whether you love him or hate him, Soros led the charge in one of the most fascinating events in currency trading history.

Trade a Mini Win a MINI

Show off your skills and compete against other forex traders FOREX,com is a division of GAIN Capital Group, a registered Futures Commission Merchant fNFA ID 0339826). regulated by the Commodity Futures Trading Commission (CFTCi. Forex trading carries a high level of risk and is not suitable for all Investors. MINI and MINI Cooper are registered trademarks of BMW NA, LLC. All rights reserved. MINI a division of BMW NA, LLC,, does not support or endorse this promotion The current account deficit's impact on the U.S. dollar examines whether the quarterly current account numbers are responsible for regular patterns in the U.S. dollar. In Volatility based currency trading, contributor Kathy Lien discusses two simple techniques inside bars and short-term long-term volatility comparisons for exploiting volatility characteristics in the forex market. Sometimes, the biggest risk in Forex trading is your Forex trading platform. Fingers crossed, your platform won't crash at the critical moment....

The Mechanisms of Money Currency and FOREX

I indulge in this elementary-level exercise because it is exceedingly important to make the leap from fractional units to currency units. The entire process of FOREX trading is based upon common fractional values known as pips. A pip is the common denominator between currencies much like the cent is the denominator for the dollar. While writing this text, I could only identify one U.S. product where domestic prices were quoted in fractions of a penny. Perhaps you can identify more. What is it For some strange reason, U.S. retail gasoline is priced ending in nine-tenths of a cent. I've always wondered why this is always rounded up to the nearest cent. Who is keeping all those one-tenths When conducting seminars on FOREX trading, I often draw the parallel between components like money or currency and quantum physics versus cosmetology. Admittedly, this correlation is a scientific stretch and is not intended to infringe upon the territorial imperative of our most brilliant academicians....

The Regulation of Money Supply

The focus on money and related banking mechanisms alone can fill a book. Indeed, many texts have been written on the subject. A basic understanding of how money supply is regulated is another essential piece of the FOREX trader's strategic puzzle. This is because money becomes a commodity for FOREX trading. Money translates into currencies that can be exchanged at rapidly fluctuating values to generate a profit or, heaven forbid, a loss. During the 1970s through the 1980s, FOREX traders keenly focused on money supply. It was a Friday ritual to bet on the change in M1 and M2, and therefore the change in U.S. currency value relative to other currencies. The premise was simple. If M1 and M2 grew appreciably, the dollar should weaken against other currencies all things being equal. If the supply of U.S. currency shrank while demand remained stable, the dollar's value should increase. Also, flooding the money supply implied increasing inflation. Inflation meant...

Buying and Selling at Retail

Fast forward to around 1996, as computers and the Internet began making online financial trading both practical and in demand. With stock trading starting to go online, foreign exchange brokers market-makers began emerging to create and satisfy a new demand for retail forex trading. Prior to this time, access to speculative forex trading was reserved almost exclusively for banks and large institutions. With the advent of online platform trading, however, access for the average individual trader investor opened up in a major way. This new frontier of retail currency trading was in the arena of spot forex, which was clearly differentiated from futures and forwards. Spot foreign exchange trading is distinguished by its almost immediate delivery of the currency, rather than future delivery. Of course, in speculative currency trading, the actual physical currency never gets delivered delivery is simply rolled over continuously to the next delivery date ad infinitum (or until the trading...

Unique Characteristics of the Forex Market

Being able to go long or short on currency pairs anytime is a tremendous advantage as forex traders are able to profit from both up and down trends anytime, and this translates to a more efficient and instant order execution. This is especially valuable in the financial markets where time equals money, and even a second's delay could cost you money. Who doesn't like trading on other people's money With possible leverage of up to 400 times, the forex market indisputably offers the highest amount of leverage compared to other markets. This high end of leverage is usually offered to mini trading accounts, due to the smaller lot sizes and lower minimum account deposit requirements. With a 100 times margin-based leverage, that is typically offered for standard-sized accounts, forex traders are allowed to execute trades of up to 100,000 with an initial margin of only 1000. loss is equally large. Many people mistakenly shy away from trading forex after hearing that it is a highly leveraged...

Before going any further

O In writing this manual I am assuming that you the reader already knows about forex trading and does not wish to be confronted with history lessons of the exchanges or the inner workings of spread firms or forex brokers. No matter what you trade, or how you trade the process is basically the same as is the end game to make money If you need to know any of this stuff then please contact me and I will provide the basics for you.

Big and Liquid Like the Ocean

This blanket statement, however, notably excludes the world's central banks (e.g., the U.S. Federal Reserve (the Fed), the European Central Bank (ECB), the Bank of Japan (BOJ)), which can and do attempt to manipulate the markets. This type of manipulation activity, however, has become an accepted part of the forex trading game, and generally does not offer an unfair advantage to any speculative market participant. Furthermore, central bank attempts to manipulate currencies for the purposes of furthering national economic policy are usually much easier to accept than, for example, the profit-minded manipulation of individual stocks by often unscrupulous traders.

Foreign exchange as a part of the world financial market

An important role in the process of the preparation for trading Forex belongs to the demo-trading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage. A short history about the origin and development of the currency exchange market. Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, which were transferable third-party payments that allowed flexibility and growth in foreign exchange dealings. Main factors influences on this spectacular growth in volume are mentioned below. A significant role belonged to the increased volatility of currencies rates, growing mutual influence of different economies on bank-rates established by central banks, which affect essentially...

LEYR Tin Carry Or Pay The Price

Regardless of how it is used, leverage is a critical aspect of currency trading that leads us to a discussion of the most common trading strategy in the market the carry trade. In FX every currency carries an interest rate. These interest rates are set by the central banks of their respective countries, and within the industrialized world can vaiy widely (see Figure 1.3). In 2005, for example, one of the largest interest rate differentials existed between Australia and Japan. The Australian economy, buoyed by a huge demand from China for metals and commodities, has experienced strong growth at the beginning of the new century, with unemployment reaching

Speculating in the currency market

While commercial and financial transactions in the currency markets represent huge nominal sums, they still pale in comparison to amounts based on speculation. By far the vast majority of currency trading volume is based on speculation traders buying and selling for short-term gains based on minute-to-minute, hour-to-hour, and day-to-day price fluctuations. The bulk of spot currency trading, about 75 percent by volume, takes place in the so-called major currencies, which represent the world's largest and most developed economies. Additionally, activity in the forex market frequently functions on a regional currency bloc basis, where the bulk of trading takes place between the USD bloc, JPY bloc, and EUR bloc, representing the three largest global economic regions.

Global Economic Indicators How to Track the Health of the Global Economy

When you visit a doctor, how do you know how healthy you are Basic indicators such as blood pressure, heart rate, cholesterol level, and blood sugar levels provide base-line measurements of your health. Similarly, the forex trader can follow how healthy the global economy is by tracking certain indicators. These include GDP, unemployment rate, consumer price index, interest rates, etc. By reviewing how indicators in different countries are performing, the forex trader will get a measure of the global economy. Tracking global economic indicators is relatively easy. To prepare trading strategies that match fundamentals, the forex trader needs to compare and contrast the economic health of different countries and regions. Many sites provide updated economic information on countries and regions.

Playing in the Majors

Just because there is price movement in a given currency does not necessarily mean that the currency is liquid and heavily traded. On the contrary although the number of currencies in regular use around the world comes close to the number of countries in existence, only a very small handful of these currencies make up the vast majority of forex trading volume. This is yet another unique characteristic of As in other businesses and industries, foreign exchange trading has evolved its own vernacular over time. To outsiders, some of the terminology used by professional forex traders may seem a bit peculiar. But it has become virtually a language unto itself for those that deal with currencies on a daily basis. Here are some of the most common examples of currency terminology

Market Volatility and Parity Fluctuation

This leads to one of the most important axioms of FOREX trading you will learn in this text. There are no exact relationships. I should add a qualifier. No exact relationships exist that I am aware of other than the consummation of each sequential transaction. Does this sound like techno-speak It means that the print on the chart or quotation screen is the only exact relationship. You will find more meaning in this statement when we subsequently examine fundamental and technical analysis.

New Broker Instructions

In my previous eBooks I recommend that you use either FXCM or RefcoFX as your Forex trading broker. As I've stated in Forex Scalping that recommendation isn't because I consider them to be the best brokers overall, but simply because they are the best brokers, in my opinion, to use for a new trader. Other reasons aside, the primary reason that I suggested you use them is because their trading platform is so easy to use. A newbie trader with limited understanding should relatively easily figure out how to place market orders, entry orders, stops and limits. Other brokers' trading platforms are more complicated and far less intuitive for implementation of trades. When you are learning about Forex trading it is better to stay with the simpler to use brokers (FXCM & RefcoFX) as you don't need to clutter your mind with the mental gymnastics needed with the more complicated brokers. But by the time you are reading this eBook, Forex Sailing, I would now consider you to be somewhat more...

In Search of Amazing Profits

I didn't say a thing about this to my wife. I knew that the best way to handle this situation would be to get the software, have Scott, my assistant, install it on my computer at work, and start making a boatload of money then I would buy something really nice for my wife and announce that I was going to be a full-time forex trader, a millionaire, and a hero to our family. The plan was foolproof

Synthetic Constructs In This Text

Another very important synthetic construct we will use is the concept of a unit. The HPRs that you will be calculating for the separate market systems must be calculated on a 1 unit basis. In other words, if they are futures or options contracts, each trade should be for 1 contract. If it is stocks you are trading, you must decide how big 1 unit is. It can be 100 shares or it can be 1 share. If you are trading cash markets or foreign exchange (forex), you must decide how big 1 unit is. By using results based upon trading 1 unit as input to the methods in this book, you will be able to get output results based upon 1 unit. That is, you will know how many units you should have on for a given trade. It doesn't matter what size you decide 1 unit to be, because it's just an hypothetical construct necessary in order to make the calculations. For each market system you must figure how big 1 unit is going to be. For example, if you are a forex trader, you may decide that 1 unit will be one...

Inflation Parity and the Global Economy

Rency management is perhaps the most impressive aspect of modern parity determination outside a country of origin. The Fisher Effect simply suggests that a 5 percent annual inflation coupled with a 5 percent real interest rate produces a zero rate of return or a zero real inflation. The relationship was stated before derivative transactions could provide an offsetting hedge or, better still, a profit potential. We combine this with the theory that the general price level is a function of the velocity of money multiplied by the amount in circulation, as previously mentioned. This raises several important points about money, currency markets, and FOREX trading. Clearly, fundamental relationships that previously determined parity between money, goods, and services have changed. Consider a rather far-fetched concept of modern delivery mechanisms including the Internet and phone systems for services and transaction processing, Federal Express, Airborn Express, and other overnight couriers...

Leveraged to the Hilt

As will be discussed further in Chapter 2, however, this can be both a very positive feature as well as a very negative one. By definition, leverage is a type of financial magnification. While it is true that high leverage magnifies profits, it will also magnify losses equally. Oftentimes, it is this high level of leverage that summarily wipes out otherwise healthy trading accounts. Used with a great deal of caution, however, high leverage of the magnitude found in forex trading can offer tremendous possibilities to the upside as well as to the downside.

Why Trade The Spot Forex Market

From all the financial instruments traded, forex is believed for a number of reasons by many professional traders and analysts to be one of the best-suited markets to trade using technical analysis methods. First, it is well-suited because of its sheer size in trading volume according to the Bank for International Settlements, average daily turnover in traditional Foreign Exchange markets amounted to 1.9 trillion in the cash exchange market and another 1.2 trillion per day in the over-the-counter (OTC) Foreign Exchange and interest-rate derivatives market as of April 2005. Second, the rate of growth and market participants in forex trading has increased some 2000 percent over the past three decades, rising from barely 1 billion per day in 1974 to an estimated 2 trillion per day by 2005. Third, since the market does not have an official closing time, there is never a backlog or pool of client orders parked overnight that may cause a severe reaction to news stories hitting the market at...

The Impact of Interest Rates and Forex Movements

Following global interest rates is important to forex trading to gain insight about which countries' economies are performing better. When New Zealand increased its interest rates, the Australian dollar became weaker because money was getting a better return in New Zealand. The recent era of low rates during in the past few years has also had a profound impact on equity markets. The concept of the carry trade comes into effect. Because it is easy to borrow cheaply in currencies that have low interest rates, traders begin to borrow money in that currency and invest it elsewhere, hoping for a greater return. This is similar to borrowing on your credit card to invest in stocks. It is a highly leveraged investment and increases the volatility in the market

Foreign Exchange in a Historical Perspective

Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, which were transferable third-party payments that allowed flexibility and growth in foreign exchange dealings.

Become Convinced Of My Ci Vii S

A week passed it was far more difficult to open the trading account than I had imagined, especially considering that I needed to fax the forex broker copies of my passport, utility bills, and everything except the results of a prostate exam. During this time, I watched as the Amazing Forex software lived up to its name. During the hours at work alone (as I stayed late every evening and kept an eye on it during the day), it was racking up hundreds of point gains every day. This was nearly too much for me to bear, as I realized how much in dollar terms this could mean. to dedicate this unintended downtime to becoming more capable with my e-mail so that I would know immediately when I could fund my account. Scott even took an entire day to teach me to use a BlackBerry, so that I could receive the e-mail no matter where I was. The more I used e-mail, the computer, the Amazing Forex software, and the BlackBerry, the more I realized how powerful all this technology was. Perhaps I could run...

Forex Analysis Is Simpler

From an analytical point of view, tracking the forex market is a much simplified trading vehicle when compared to the futures products. One reason is due to the uniform contract sizes. In the forex market, the standard lot size is 100,000. The tick, or PIP, value varies in the futures products based on the contract, and the contract size varies on the different currencies. For example, the euro is 125,000, and the tick value is 12.50 per point the Canadian dollar is 100,000, and the tick value is 10 dollars per point. The British pound futures have a contract value of 62,500, which makes each tick worth 6.25. The yen is worth 125,000, so every point is valued at 12.50 but it is quoted inversely to the cash market. For instance, the futures is quoted at 0.8610, and at the same time the spot forex would be bid at 116.50 and offered at 116.54. Forex traders do not have to deal with what is known as rollover. Every quarter in the futures markets, there is an expiration of the contracts....

The Interest Rate and Inflation Expectation Game

In this statement the Federal Reserve indicated that a slow rate of increase in rates should be expected. For the forex trader this statement meant to expect future rate increases. Like all other economic phenomena, interest rates, when they are at extremes, generate consequences that do not last. At some point the world trend of lower rates will shift to a trend of higher rates. In late 2004 this trend shift already started. The forex trader will need to monitor the global interest rate environment as well as expectations regarding the future increase or decrease of those rates.

Gem Of A Benefit In Futures

One of the best features of the futures markets is that they have listed options and because these are futures products, they also have the access of the transparency on how many options on the futures contracts are available to buy and how many options on the futures contracts are offered to sell. This book, Forex Conquered, is designed to give you specific trading plans on all aspects of foreign currency trading opportunities. I feel that there are many, many choices and yet so few people are aware of them. Options are just one futures trading vehicle, and many forex traders have had only limited exposure to options. Therefore, I want to introduce you to what they are and how you can benefit from them in your trading career. To start with, there are two types of options a call and a put. And there are two kinds of positions for each call and put a buyer and a seller, or an option writer.

What to Expect from This Book

The core of this book begins with in-depth descriptions of basic foreign exchange trading mechanics in Chapter 2. This includes all of the terminology and explanations necessary to get started in foreign exchange trading. From the structure of a currency pair to the intricacies of margin and leverage as they pertain to forex trading, Chapter 2 will get true beginners up and running quickly. The chapter is also directed at experienced traders coming from other financial markets, serving as a thorough discourse on the unique intricacies of trading currencies. Following the chapter on basic trading mechanics is Chapter 3 , which is a comprehensive discussion of technical analysis as it is applied to foreign exchange trading. The tools of technical analysis are perhaps the most tangible and accessible trading tools available to the individual foreign exchange trader. Software programs used specifically for charting prices in the foreign exchange market abound, and they provide the most...

Cross currency arbitrage

This is one of the advantages of cross currency trading. It applies mainly to banks and brokers who are set up for the purpose. In simple terms, if the currency that is being traded is EUR JPY, and a counterparty sells the bank EUR against yen, the bank has the option of either

The Anatomy of a Trend

The perceived economic strength or weakness of an economy is usually reflected in the underlying currency. Since Forex trading involves matching two currencies against one another, situations often arise in which one currency is much stronger than the other currency in the pair. The result is a trend that can last for months or years, much to the delight of traders who use trend-following techniques.

The Fundamentals of Forex

In many ways, forex trading is similar to playing a game. You have an opponent (the market). In game of chance the key feature is that everyone faces the same odds and therefore the same level of information. In these games, no player can change the odds. Playing forex, however, is not a game of odds. Participants in forex trading do not share the same amount of information. In forex, this asymmetry of information results in advantages and disadvantages to trades. Some players have more information than the others. In forex, information about fundamental aspects of economies does not arrive simultaneously to all participants. The real important question is what kind of knowledge and information can improve trading performance. The search for an edge starts with a fundamental understanding of the nature of the forex market. Having a foundation of knowledge in fundamentals is a first step in evolving into a winning trader. Consider the following every transaction in the world settles in...

What sort of leverage can I get

Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, that money is usually borrowed from a broker. Forex trading does offer high leverage in the sense that for an initial margin requirement, you can build up and control a huge trading position.

The Economic Impact of Unification

Unification is a tricky concept that will have profound implications for currency trading for many decades, if not centuries. Effective investors know they should think the unthinkable. For example, Germany and Russia were mortal enemies through the first half of the twentieth century. Russia was responsible for splitting East Germany from the West. Germans held a distinct distrust for Russians. Any alliance between these adversaries was, indeed, unthinkable. However, Germany holds the technological key to unlock the massive natural resources controlled by the Commonwealth of Independent States (CIS). By the same token, Russia controls vast natural resources that can fuel Germany's industrial machine.

Basic Strategy Variation

Are truly powerful to use to determine with a very high probability where prices will turn around, and can be used to enter the market very close to the lowest price that it'll go, and exit the market very close to the top price. This is truly an amazing technique, and I'd say that it is very worthwhile learning as a FOREX trader. It is especially powerful when you learn advanced Fib techniques (Convergences and Gartley's - dealt with in my other eBooks). I will cover some more Fib techniques later in this eBook.

Technical Versus Fundamental

There are two types of analysis that can be applied to FOREX trading fundamental and technical and traditionally they are thought of as opposed views. There has always been a controversy about which one is better or which one is the truest one. The truth is that both are an important gauge and a reflection of the markets. Each one has its own methodology and rules.

Rapid Change and Globalization

As this text was being written, concurrent changes in currency markets were exceptional. Not only was the euro launched as physical money, but China and the CIS were seeking status within the World Trade Organization. Consider the enormous power of these two sovereign entities. Although ruble trading may not be popular as of 2002, it could dominate in future decades. Currency trading requires forward thinking. Keep an open mind and vivid imagination. You never know where the next opportunities will develop.

Trading Currency Stocks

Foreign currency trading is not just for gamblers or hungover commodity traders. It really has become a respected asset classification and is extremely popular with professionally managed trading entities and hedge funds. Foreign currency is so hot that major players are taking it to the extreme. How so Well, there is now what is called exchange traded funds (ETFs) on foreign currencies. The first to be introduced was the Euro Currency Trust (FXE). On the first day of trading, the Euro Currency Trust had over 600,000 shares trading hands.

Trading in the Asia Pacific session

Currency trading volumes in the Asia-Pacific session account for about 21 percent of total daily global volume, according to a 2004 survey. The principal financial trading centers are Wellington, New Zealand Sydney, Australia Tokyo, Japan Hong Kong and Singapore. In terms of the most actively traded currency pairs, that means news and data reports from New Zealand, Australia, and Japan are going to be hitting the market during this session

Introduction To The Forex

Two of the greatest things he taught me were how to perform under pressure and, more importantly, how to keep things simple with respect to teaching Forex trading. For example, at one point, Ian could only recognize and understand uptrends. I can't see or understand downtrends, Crown reversals, consolidations, Gartleys, or harmonic vibrations, he told me, but I sure can see an uptrend. A simple fact about trading on the Forex is there are six major world currencies traded against the U.S. dollar when three go up, the other three go down. They have to move in opposite directions to keep the world economy in balance. So when the currency of Ian's choice stops trending up and begins to reverse and trend down, Ian goes and finds one of the other three currencies that have reversed from a downtrend and are now trending up. He keeps his trading simple.

Risk Aversion Bottom Fishing Boosts Japanese Stocks and the

The year 1999 witnessed the simultaneous recoveries of East Asian and Russian economies following the market crisis of 1997-1998, and the continued boom into the equity markets of industrialized economies. Global fund managers exhibited a high degree of risk aversion from the emerging markets of Asia, Eastern Europe, and Latin America, opting to capitalize on higher growth in more developed economies. The Japanese yen was the highest-performing currency of 1999 as Japan offered the combination of industrialized economy status and cheap valuation, as the country was widely expected to finally recover from its decade-long economic slump. The buy-the-Japanese-dip strategy mobilized massive flows of funds into Japanese equities, propping up the yen across the board. While the introduction of the euro to currency trading replaced the national currencies of 11 European nations, U.S. equity markets were busy absorbing foreign flows chasing an increasingly solid bull market in high-growth...

Diversification Through Trading Periods

If you have a passion for currency trading, then in order to utilize diversification to the extreme, consider your overall allocation of your investment strategies within this sector. Depending on your time constraints, you may only be able to participate to a limited extent in day trades during the European session or early morning U.S. hours as economic numbers are released. As such, you should also have devotion toward holding positions as they go into a strong trend mode and should carry a position for more than a few days. This is known as a swing trade. Then, if you want to really capture a longer-term market trend, finding the right vehicle and strategy will allow you to hold a longer-term position. Let's define what I consider the three important time periods and classifications of a trade. Day traders can use the forex or futures markets for small price swings. Swing traders can also use the forex and futures markets but can also implement an option strategy, such as a long...

If The Subscription Is Free How Do They Make Money

According to the CFTC. the amount of FX scams has skyrocketed in the last few years. This is a direct result of the increase in popularity of forex trading and the lax oversight by government agencies. A quick web search is enough to show the full range of forex scams out there, some promising 1000 return with no risk Before entering into any investment scheme, every investor should regularly check the CFTC's website and also make a point to regularly check www.futuresbuzz.com for the latest industry news and FX scams.

Spot Forex Market Structure

Trading of currencies is done OTC (over-the-counter), in the sense that currency buyers and sellers from all over the world make a binding contract with each other after agreeing on a price - and this is not carried out through an exchange. This aspect of spot forex trading is different from forex futures trading which is carried out through an exchange. Forex traders carry out their activities by dealing directly with one another or through brokers via telephone and internet connections.

Treasury Yield Relationship to Currencies

An investor or a foreign central bank can park money into a short-term instrument and receive close to a 5 percent return without risk. That is one feature that will attract foreign capital flows and help support the dollar. This effect will occur until better opportunities evolve elsewhere. As a forex trader, you want to monitor yields on a global scale or events or reports that may impact these rates.

Forming Currency Alliances Group of 5 G5 and Group of 7 G7

If we closely examine Germany's maneuvering, it is not difficult to conclude that there was a new war being waged. It was economic and used currency exchange as a central weapon. The target was the pre-war alliance. Perhaps Germany and Japan could win the real war of world dominance while having lost the military conflicts that proved so costly. Indeed, look how both nations prevailed in post World War II trade. The development that halted German and Japanese progress may have been the evolution of currency trading. Vast and rapid currency adjustments leveled the playing field to the extent that the five most powerful economies joined in an effort to stabilize the floating monster they had helped to create. The Group of 5 (G5) was formed to negotiate central bank intervention efforts aimed at taking the sting out of adverse exchange rate fluctuations. G5 grew into G7, which kept the same objective. The group quickly discovered that forces driving currencies were significantly stronger...

Why Take Profits When I Cam Risk More

From the look on her face, I could tell that my wife was not privy to the obvious wisdom of this strategy. It was frustrating to have to explain to her the intricate details of how I was on my way to becoming a currency trading tycoon, that I was on a hot streak, and that I was going to have a pool with midnight blue water and with attendants who served me drinks. I needed to be trading for more money per pip now, and I'd need all the money in the account.

July22004 Job Growth Report Causes US Dollar Sell

The forex trader should follow the economic reports closely as well as scheduled speeches of key central bank officials. A useful way to track them is by accessing economic calendars. These calendars are available at many forex trading firms and at many sites. (see previous page).

Shifting Sands Of Fundamental Analysis

Ask a dozen currency traders about fundamental analysis and it is likely you will get 12 different answers. Once considered the scientific approach to forecasting, fundamentals have taken a backseat to technical trading with the advent of increasingly powerful desktop computers and analytical software. Fundamental analysis was always considered quantitative, while technical analysis was viewed as subjective. Since 1970, this consensus, along with other correlative theories, has reversed. This is more the case for currency trading since the basis for currency valuation has substantially and rapidly changed.

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