Online FOREX Trading Tips For Big Profits
by Yusoff Allian
Fortunes can be made (and lost) on the FOREX market, but patience and a little bit of common sense can help you succeed where almost everyone else fails. The simple FOREX trading tips outlined below will help get you on the path to big profits in the FOREX market while at the same time reducing your losses. And you *will* suffer losses - it's a fact of life in the FOREX market. What separates the successful FOREX investor from the burnout is the successful FOREX investor understands this and plans for it, while those that don't quickly lose their shirt.
FOREX Tip #1 - Start with at least $1000 ready to trade. Although you can open micro accounts for as little as $200 you really won't be able to weather any turbulence in the market with so little investment capital. Start your online FOREX trading career with a minimum of $1000 in a micro account, and once you've made $10,000 roll it into a mini account and see your profits really pick up.
FOREX Tip #2 - Use leverage wisely. The ability to control large sums of currency with small amounts of cash is one of the major advantages of FOREX trading, but if not used correctly you can quickly blow through all of your investment capital. Make smaller trades to start with, and keep enough cash in your account so that you can withstand the occasional margin call.
FOREXT Tip #3 - Use a winning FOREX trading system. Seems like a common sense thing to say, but jumping in and spending thousands of dollars on the first trading system you find online can leave you penniless and none the wiser. You're far better off creating your own system (it's really not that difficult) and applying it to your trades. You'll learn how to recognize trends, when to get in and exit, and you'll be able to understand why a trade works one day and why it didn't the next. Using this knowledge you can modify your FOREX trading system accordingly - if you had simply purchased a system online you'd be stuck with what they gave you.
FOREXT Tip #4 - Manage your risk. You make money on the FOREX market based on two events - when you buy and when you sell. Discipline is key when determining when to get out of a trade, so set up stop losses at reasonable positions in line with your trading system and *always* follow your system. There may be times you're tempted to get out early, but don't deviate from your system. If you set your stops wisely you'll manage your losses over the long run and end up turning a decent profit.
FOREXT Tip #5 - Practice, practice, practice! If you're just getting started in the FOREX trading world you may be seeing dollar signs dancing around your eyes, and yes it is possible to make some really nice profits by trading currencies. However, as with any kind of investing, if you jump in without really knowing what you're doing you'll quickly lose your money. Most online FOREX brokers offer demo accounts that let you trade with fake money using real data - take advantage of this and fine-tune your FOREX trading skills. Get comfortable with your trading system and work on your discipline, and only move up to real money trading when you're consistently making winning trades in your demo account.
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Online FOREX Trading Tips For Big Profits
Thursday, March 19, 2009 Forex Day Trading, Forex Education, forex experience, Online FOREX Trading
Here's A Quick Way To Learn How To Trade The Forex
Quick Way, Trade The Forex
Here's A Quick Way To Learn How To Trade The Forex
by Leo Howland
Interested in becoming a Forex trader?
It is easy to start into the Forex market, using a demo account until you are satisfied with your level of understanding. This will let you test your skill without risking your money in a live transaction.
Before you can start you need to learn the basic terms. Forex is the buying and selling of the different world currencies. If you buy one currency and sell another, you have completed a Forex deal. The Forex market is very large, with an average transaction rate of almost $2 trillion traded daily.
The first step in learning how to trade the forex market is to understand the quotes. A Forex quote is listed as a pair of numbers. The first number is known as the base currency and has a unit value of 1. The second number of the quote is known as the counter currency reflects the value of the counter against the base currency. For example: USD/JPY 109.2 would indicate that one US dollar will buy 109.2 Japanese Yen at that moment in time. As the value of the currencies change the quotes will change to reflect the difference.
Another type of quote is obtained from a currency dealer. The dealer will use a two sided quote which consists of a "bid" and "ask" price. If the quote for EUR/USD is 1.2385/1.2390, this means that the "bid" or selling price of the base currency is 1.2385 while the "ask" or buy price is 1.239. This means you can buy one Euro dollar with 1.239 US dollars. You could also sell one Euro dollar for 1.2385 US dollars. These quotes are always in the currency dealers favor. trader is required to buy the currency at the higher price. The difference goes to the broker which replaces a commission charge to the broker's clients.
This simple explanation of Forex quotes is merely a beginning toward becoming a Forex trader. You can learn much more with on line study, books, and utilizing demo trading accounts to hone your skills.
by Leo Howland
Interested in becoming a Forex trader?
It is easy to start into the Forex market, using a demo account until you are satisfied with your level of understanding. This will let you test your skill without risking your money in a live transaction.
Before you can start you need to learn the basic terms. Forex is the buying and selling of the different world currencies. If you buy one currency and sell another, you have completed a Forex deal. The Forex market is very large, with an average transaction rate of almost $2 trillion traded daily.
The first step in learning how to trade the forex market is to understand the quotes. A Forex quote is listed as a pair of numbers. The first number is known as the base currency and has a unit value of 1. The second number of the quote is known as the counter currency reflects the value of the counter against the base currency. For example: USD/JPY 109.2 would indicate that one US dollar will buy 109.2 Japanese Yen at that moment in time. As the value of the currencies change the quotes will change to reflect the difference.
Another type of quote is obtained from a currency dealer. The dealer will use a two sided quote which consists of a "bid" and "ask" price. If the quote for EUR/USD is 1.2385/1.2390, this means that the "bid" or selling price of the base currency is 1.2385 while the "ask" or buy price is 1.239. This means you can buy one Euro dollar with 1.239 US dollars. You could also sell one Euro dollar for 1.2385 US dollars. These quotes are always in the currency dealers favor. trader is required to buy the currency at the higher price. The difference goes to the broker which replaces a commission charge to the broker's clients.
This simple explanation of Forex quotes is merely a beginning toward becoming a Forex trader. You can learn much more with on line study, books, and utilizing demo trading accounts to hone your skills.
Forex Education - 3 Vital Tips to make Money Fast In 2008
Forex Education, make Money Fast
Forex Education - 3 Vital Tips to make Money Fast In 2008
by kelly Price
As we turn into the New Year it's a good time to make changes and take action - if you are trader who is not doing well or a potential trader then these 2 tips will help you make money fast not just in 2008 but at anytime and they should be a cornerstone of your forex education.
The first point I want to make needs serious thought 95% of traders lose money not because they can't learn forex trading (anyone can) but because they believe certain myths and commonly accepted wisdoms that are wrong.
The tips below are not conventional but don't let that worry you the bulk of traders don't make money so being in the minority is good so here are your 3 tips
1. Be Patient Trade Less
Many traders think the more they trade the more they will win but this is simply not true in forex trading in fact the opposite is true - the more you trade the greater the chances are you will lose.
You don't get paid for the effort or amount of trades you make - you get paid for being RIGHT that's it. I know traders who trade every day and make nothing and others who trade a few times a year and make over 100% annualized gains!
The majority of novice traders believe the day trade and make money myth and that's all it is a myth. Day traders don't make money period.
If you don't believe me, try and find a real track record on a day trading system and you will be looking for ever. You have to catch the big high odds moves and they can ONLY be spotted by looking at longer term data and data within a day is meaningless.
If you like the buzz of trading you will lose - if you are patient and wait for high odds trades you will win.
2. Diversification
You will have heard it countless times diversify; don't put all your eggs in one basket etc. On a small account of $1,000 or less you don't have enough to diversify and make big gains at the same time.
All diversification does is dilute gains - wait for the big moves and load them up with as much as you can afford.
3. Take Bigger Risks
You will hear many give you the advice of only risking a maximum of 2% on a trade - well on 1,000.00 that's $20 you won't make much doing that!
Wait for the good trades and load them and risk up to 20% on a small account.
You can only diversify and risk less per trade if you have enough cash and that's $10,000 + if you don't you need to risk more - period!
4. Have Courage
Learn to accept big gains!
Hang on you may say all traders can do that because that's why their trading currencies.
They are - but they don't understand accepting a big gain is harder than taking a loss.
Why?
Because as soon as a trader sees a profit he wants to take it and the bigger it becomes the harder the temptation is to resist. As open equity swings keep eating his open profit it becomes too much and he snatches a mediocre or minor gain.
What happens next? The trade goes on to make 10,000 20,000 or more and he's not in.
If you want to make money you need to have courage and accept that open equity will eat into your profits and have confidence to hold for a bigger longer term gain.
If you want to make more money from your forex trading and you are starting off with a small account make the above part of your forex education and you will see your profits increase dramatically.
by kelly Price
As we turn into the New Year it's a good time to make changes and take action - if you are trader who is not doing well or a potential trader then these 2 tips will help you make money fast not just in 2008 but at anytime and they should be a cornerstone of your forex education.
The first point I want to make needs serious thought 95% of traders lose money not because they can't learn forex trading (anyone can) but because they believe certain myths and commonly accepted wisdoms that are wrong.
The tips below are not conventional but don't let that worry you the bulk of traders don't make money so being in the minority is good so here are your 3 tips
1. Be Patient Trade Less
Many traders think the more they trade the more they will win but this is simply not true in forex trading in fact the opposite is true - the more you trade the greater the chances are you will lose.
You don't get paid for the effort or amount of trades you make - you get paid for being RIGHT that's it. I know traders who trade every day and make nothing and others who trade a few times a year and make over 100% annualized gains!
The majority of novice traders believe the day trade and make money myth and that's all it is a myth. Day traders don't make money period.
If you don't believe me, try and find a real track record on a day trading system and you will be looking for ever. You have to catch the big high odds moves and they can ONLY be spotted by looking at longer term data and data within a day is meaningless.
If you like the buzz of trading you will lose - if you are patient and wait for high odds trades you will win.
2. Diversification
You will have heard it countless times diversify; don't put all your eggs in one basket etc. On a small account of $1,000 or less you don't have enough to diversify and make big gains at the same time.
All diversification does is dilute gains - wait for the big moves and load them up with as much as you can afford.
3. Take Bigger Risks
You will hear many give you the advice of only risking a maximum of 2% on a trade - well on 1,000.00 that's $20 you won't make much doing that!
Wait for the good trades and load them and risk up to 20% on a small account.
You can only diversify and risk less per trade if you have enough cash and that's $10,000 + if you don't you need to risk more - period!
4. Have Courage
Learn to accept big gains!
Hang on you may say all traders can do that because that's why their trading currencies.
They are - but they don't understand accepting a big gain is harder than taking a loss.
Why?
Because as soon as a trader sees a profit he wants to take it and the bigger it becomes the harder the temptation is to resist. As open equity swings keep eating his open profit it becomes too much and he snatches a mediocre or minor gain.
What happens next? The trade goes on to make 10,000 20,000 or more and he's not in.
If you want to make money you need to have courage and accept that open equity will eat into your profits and have confidence to hold for a bigger longer term gain.
If you want to make more money from your forex trading and you are starting off with a small account make the above part of your forex education and you will see your profits increase dramatically.
Forex Day Trading and Scalping - a Guaranteed Way to Lose Your Money Quickly
Monday, March 16, 2009 Forex Day Trading, Guaranteed Way, Money Quickly, Scalping
Forex Day Trading and Scalping - a Guaranteed Way to Lose Your Money Quickly
by kelly Price
I have been involved in trading forex for 25 years and still amazes me how many people think forex day trading or scalping makes money - it doesn't its simply the dumbest way to trade and will lose you your money. Let's examine why.
Countless millions of traders trade trillions of dollars each day and it is impossible to determine what this mass of people will do within such a short time span as a day or a few hours.
Support and resistance levels are meaningless, as volatility can and does move prices anywhere in a day session.
If you don't believe me lets look at the proof.
The first question you need to ask yourself is if forex day trading really did make money why is there no real track record of gains to show the success? There are thousands of day trading systems promising gains and none of them have a real track record - what do you get?
A lot of hype and a track record that is simulated (not traded for real) in hindsight (knowing the closing prices). Here is the normal one you will see which is a CFTC standard one:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Put the above disclaimer on a track record and you can say anything you want and vendors do. They appeal to lazy or greedy traders and the trader buys and gets a guaranteed loss and the vendor makes a guaranteed profit from the sale.
Day trading is simply the dumbest way to trade and sensible knowledgeable people fall for it all the time - maybe the don't stop to think or simply miss the disclaimers when they buy these systems.
You can if you want to prove me wrong try and find a track record ( that's real dollars and audited) I saw one day trading system show his bank balance of evidence of his success - success in selling day trading courses, NOT trading that's for sure!
So if you find one be sure to let me know. I have been looking for a day trader to prove me wrong for 25 years and I Haven't found a long term track record of profits and know I never will.
So avoid day trading and pick another method that will help you gain currency trading success by trading the odds.
by kelly Price
I have been involved in trading forex for 25 years and still amazes me how many people think forex day trading or scalping makes money - it doesn't its simply the dumbest way to trade and will lose you your money. Let's examine why.
Countless millions of traders trade trillions of dollars each day and it is impossible to determine what this mass of people will do within such a short time span as a day or a few hours.
Support and resistance levels are meaningless, as volatility can and does move prices anywhere in a day session.
If you don't believe me lets look at the proof.
The first question you need to ask yourself is if forex day trading really did make money why is there no real track record of gains to show the success? There are thousands of day trading systems promising gains and none of them have a real track record - what do you get?
A lot of hype and a track record that is simulated (not traded for real) in hindsight (knowing the closing prices). Here is the normal one you will see which is a CFTC standard one:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Put the above disclaimer on a track record and you can say anything you want and vendors do. They appeal to lazy or greedy traders and the trader buys and gets a guaranteed loss and the vendor makes a guaranteed profit from the sale.
Day trading is simply the dumbest way to trade and sensible knowledgeable people fall for it all the time - maybe the don't stop to think or simply miss the disclaimers when they buy these systems.
You can if you want to prove me wrong try and find a track record ( that's real dollars and audited) I saw one day trading system show his bank balance of evidence of his success - success in selling day trading courses, NOT trading that's for sure!
So if you find one be sure to let me know. I have been looking for a day trader to prove me wrong for 25 years and I Haven't found a long term track record of profits and know I never will.
So avoid day trading and pick another method that will help you gain currency trading success by trading the odds.
Advantages Of Forex Trading
Advantages, Beginner Forex Trading, Best Forex Brokers, forex trading
Advantages Of Forex Trading
by Joon Trader
Forex Trading has many advantages as compared to stock or equity trading. Due to the current uncertainty of the stock market, many stock or equity traders are now thinking to trade the Forex market. Their main question and concerned was why trade the Forex market? What are the advantages of the Forex market as compared to the stock market? In this article, I will go through some of the advantages of Forex Trading.
24 Hour Global Market - The Forex market is truly a 24 Hour Global Market opens from Monday to Friday. The Forex market starts each trading day from Sydney, Tokyo, London, and finally to New York. Regardless of whether it is in the day or night, there are always market participants actively trading the Forex market. Forex traders can respond very quickly to any currency fluctuations or breaking news immediately unlike the stock and future market. The ECN's (Electronic Communication Networks) in stock and future market are relatively new products derived as an after hours extension to the regular trading hours. Many of these ECN's have ill liquidity and there is no guarantee that a trade will be executed, or at a fair price. Usually, stock or future market traders would have to wait until the real market opens the next morning in order to execute a trade at fair value.
Liquidity - The Forex market is the largest and most liquid market in the world. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform. This tremendous turnover is more than all the world's stock markets combined on any given day. With a daily trading volume larger than all stock market combined, this will ensure price stability. With such liquidity, Forex Trader can open or close a position without much difficulty and most importantly, will receive a fair market price.
Opportunity to Make Money in Both Direction - There is no such thing as "bull" or "bear" market in Forex. In Forex, it is of no concern whether the economy is booming or in a recession. For stock trading, profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical - all things that go up must come down. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit.
Simplicity - There are not many major currency pairs traded on the Forex market. Therefore, traders may have a better feel of price movement patterns and behavior. Where as in the stock market, there is literally thousands of stock to monitor and it is not easy to follow so many of them.
Small Trading Capital with High Profit Potential - Nowadays, the minimum amount needed to open a trading account is less than $300. Due to competition, some brokers may even accept much lesser amount. In Forex market, this small trading amount could potentially earn hundreds of dollars per week. In stock market, this may not be possible. Of course both market have potential to lose as well, but in the Forex market, traders can make good money with much lesser trading capital.
High Leverage of 100:1 - 100:1 leverage is commonly available from online Forex brokers. This is substantially exceeds the common 2:1 margin offered by equity brokers, and 15:1 in the futures market. Some brokers even offer higher leverage of 100:1. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. Leverage is a double-edged sword and necessitates the use of proper money management. Without proper risk management, this high degree of leverage cans also lead to big losses as well as gains.
Demo Account - Forex Trading has a unique feature called "Demo Account" or simulate account. This "Demo Account" allows the trader to trade using real-time price on the broker's trading platform with the exact interface and function as a real account. With this simulated account, Forex trader could gain real market experience in trading without risking any capital.
With Forex Trading unique advantages, its of little wonder that more and more retail investors are participating in the Forex market utilizing broker's electronic trading platform that are widely and easily available.
by Joon Trader
Forex Trading has many advantages as compared to stock or equity trading. Due to the current uncertainty of the stock market, many stock or equity traders are now thinking to trade the Forex market. Their main question and concerned was why trade the Forex market? What are the advantages of the Forex market as compared to the stock market? In this article, I will go through some of the advantages of Forex Trading.
24 Hour Global Market - The Forex market is truly a 24 Hour Global Market opens from Monday to Friday. The Forex market starts each trading day from Sydney, Tokyo, London, and finally to New York. Regardless of whether it is in the day or night, there are always market participants actively trading the Forex market. Forex traders can respond very quickly to any currency fluctuations or breaking news immediately unlike the stock and future market. The ECN's (Electronic Communication Networks) in stock and future market are relatively new products derived as an after hours extension to the regular trading hours. Many of these ECN's have ill liquidity and there is no guarantee that a trade will be executed, or at a fair price. Usually, stock or future market traders would have to wait until the real market opens the next morning in order to execute a trade at fair value.
Liquidity - The Forex market is the largest and most liquid market in the world. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform. This tremendous turnover is more than all the world's stock markets combined on any given day. With a daily trading volume larger than all stock market combined, this will ensure price stability. With such liquidity, Forex Trader can open or close a position without much difficulty and most importantly, will receive a fair market price.
Opportunity to Make Money in Both Direction - There is no such thing as "bull" or "bear" market in Forex. In Forex, it is of no concern whether the economy is booming or in a recession. For stock trading, profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical - all things that go up must come down. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit.
Simplicity - There are not many major currency pairs traded on the Forex market. Therefore, traders may have a better feel of price movement patterns and behavior. Where as in the stock market, there is literally thousands of stock to monitor and it is not easy to follow so many of them.
Small Trading Capital with High Profit Potential - Nowadays, the minimum amount needed to open a trading account is less than $300. Due to competition, some brokers may even accept much lesser amount. In Forex market, this small trading amount could potentially earn hundreds of dollars per week. In stock market, this may not be possible. Of course both market have potential to lose as well, but in the Forex market, traders can make good money with much lesser trading capital.
High Leverage of 100:1 - 100:1 leverage is commonly available from online Forex brokers. This is substantially exceeds the common 2:1 margin offered by equity brokers, and 15:1 in the futures market. Some brokers even offer higher leverage of 100:1. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. Leverage is a double-edged sword and necessitates the use of proper money management. Without proper risk management, this high degree of leverage cans also lead to big losses as well as gains.
Demo Account - Forex Trading has a unique feature called "Demo Account" or simulate account. This "Demo Account" allows the trader to trade using real-time price on the broker's trading platform with the exact interface and function as a real account. With this simulated account, Forex trader could gain real market experience in trading without risking any capital.
With Forex Trading unique advantages, its of little wonder that more and more retail investors are participating in the Forex market utilizing broker's electronic trading platform that are widely and easily available.
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