FOREX TRADING - Basic Rules

If you have just started trading in the FOREX market or your considering it , These five basic rules could save you a lot of money.

The Five Basic Rules for FOREX Trading

Yes it is worrying starting your journey into FOREX trading .The rules and methods of trading can seem like a lot to deal with . Of course you will learn many things along the way , like which currency pairs perform the best and trends in the market.

There is however key rules and methods you should be aware of in order to keep loses to an absolute minimum and maximize profits. You will avoid many pitfalls as well as recognize opportunities that will boost your profits in the FOREX market.

These are the four rules/methods we will cover :
1) Don't Over Leverage Your Investment

2 ) Quit When Your Ahead Know When That Is

3 ) Do your Research Before Making Trades

4) Stop Loss Orders Protect Yourself From Large Losses

5) Consider Getting Trading Robot That Will Save You Time and Money

1-Don't Over Leverage Your Investment
It's so easy to get caught up in the buzz of FOREX trading , However Leverage is a two edge sword. Leveraging is basically trading more money than you have in your portfolio . For example If you have $2000 in you account some brokers will allow you to buy $50,000 of a currency .

Its better to get the know the market over time than take unnecessary risks. Don't get carried away as you need a steady well thought out approach to make a long term consistent income with FOREX trading .

2-There Is A Time to Quit - Know When It Is

When your riding high on a profitable trade ,many people don't want to sell in the hope there profits will just keep on rising . Well values can fall as well as rise so don't get greedy and lose your gains.

However you don't want to cash in to quick and miss those few extra gains. Some trades you make won't be successful. But over time and careful studding the market trends , you will get a feel for when to start and stop trading. Even Experienced traders have a few losses along the way , but over all they have far more wins that losses and you will too.

3-Doing Your Research Before Making Trades

Research is a word many people don't like , because it involves extra work with no apparent benefits . Well in the FOREX Trading market , having an idea of history and current trends can be the difference between winning and losing . Don't treat the FOREX market like a casino because you will lose far more than you win. Do your research.

4-Stop Loss Orders For Protection

Stop loss is part of a system that stops you from losing too much of your investment or profit , basically if the value of the currency falls to the value you set in the stop loss , Stop loss will sell and stop you from losing any more profit .

Stop loss should be st up before you start to trade ,and you need to decide the value that the stop loss activates. The successful traders use this safety method all of the time .

5-Consider Getting Trading Robot That Will Save You Time and Money

Well after reading the four rules above you must be wondering if there is an easier way .

Well yes there is , FOREX automated robot software , not only trades on average better than humans it can also trade night and day with no interaction from you. Real live account studies have shown one particular Robot Doubling Profits every month.

Forex Trading Examples

Example.1

An investor has a margin deposit with Saxo Bank of USD 100,000.

The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.

The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.

Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.

Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.

Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.

Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.

As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we havedisregarded the interest rate swap that would marginally alter the profit calculation.

This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.

Example 2:

The investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).

The dealer quotes 112.05-10. The investor sells EUR at 112.05.

Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.

He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.

Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.

The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.This results in a loss of JPY 0.55m = approx. USD 5,300 (USD/JPY 105) = 5.3% loss on the original deposit of USD 100,000.

Example 3

The investor believes the Canadian dollar will strengthen against the US dollar. It is a long term view, so he takes a small position to allow for wider swings in the rate:

He asks Saxo Bank for a quote in USD 1,000,000 against the Canadian dollar. The dealer quotes 1.5390-95 and the investor sells USD at 1.5390. Selling USD is the equivalent of buying the Canadian dollar.

Day 1: Sell USD 1,000,000 vs. CAD 1.5390. He swaps the position out for two months receiving a forward rate of CAD 1.5357 = Buy CAD 1,535,700 for Day 61 due to the interest rate differential.

After a month, the desired move has occurred. The investor buys back the US dollars at 1.4880. He has to swap the position forward for a month to match the original sale. The forward rate is agreed at 1.4865.

Day 31: Buy USD 1,000,000 vs. CAD 1.4865 = Sell CAD 1,486,500 for Day 61.

Day 61: The two trades are settled and the trades go off the books. The profit secured on Day 31 can be used for margin purposes before Day 61.

The USD account receives a credit and debit of USD 1,000,000 and shows no change on the account. The CAD account is credited CAD 1,535,700 and debited CAD 1,486,500 for a profit of CAD 49,200 = approx. USD 33,100 = profit of 33.1% on the original deposit of USD 100,000.
Posted by Forex Trading And Currency at 3:35 AM
Labels: Forex Trading and Exchange.

Choosing an Automated Trading System

Automated Trading is the next revolution in trading: a system that can trade Forex and other assets automatically by sending trading signals directly to your account. The good thing is there are a lot of Automated Trading systems available and more on the way. On the other hand, there are a lot of bad systems available. Here are ways to find the best instructions

Step 1
Go to a automated trading exchange, like Collective 2 or Strategy Exchange and review the systems.

Step 2
Pick systems that have long-term success. Anyone can develop an automated trading strategy that makes money for a month and then blows up.

Step 3
Find a system with small rates of slippage. Slippage is when a system loses money before it starts to gain. Too much slippage can wipe out your account.

Step 4
Avoid excessive trading. A system that produces solid returns but conducts a high amount of trades is likely to lose money, or limit your return through trading fees and commissions.

Step 5
Check volatility. If a system’s swings scare you on the chart, imagine what it will do to you in real life. You’ll be spending just as much time watching the trades as you would if you were making the calls yourself.

Forex Trading - source of good income

There is quite a variety of trading options available in this day and age. So many opportunities to make a good income from your own home are out there waiting to be explored. And one of the most successful, practical, and convenient ways is Forex trading - the exchange of foreign currency. If you have capital to invest or are in need of a new career, or if you are in need of a job you can do from home, Forex trading is the best thing for you. Let me explain some reasons.

Forex trading is ideal to do from home, because you can access the market from any computer as long as you have internet access. On top of that, the market is open 24 hours a day, 7 days a week. You trading will fit easily into any time frame that you have. Unlike investing in the stock market, you are not limited to normal business hours. You can spend your day as you like, enjoying the things you like and living your life, without being chained to a desk.

Flexibility And Control

Forex trading is flexible and can be incorporated into whatever lifestyle you have. As well as being time-smart, Forex trading is money-smart. No longer do you have to pay frustrating licensed broker fees. In Forex, you have control over your own account and can make your own decisions and exchanges without having to work through a broker.

But perhaps the greatest advantage of all is the stability and predictability of the Forex market. By using technical analysis, you can foresee changes and fluctuations in the market and act accordingly. Besides, the Forex market does not have such moody swings as the stock market. The only thing that would make the market swing much is if you were to buy and sell only one particular currency for a long time. But since there are hundreds of currencies available in the world, your options are never limited, therefore such swings can be prevented.

Though the benefits far outnumber the negatives, there are some risks in Forex trading. There are certain dangers involved in banks in foreign countries, credit and interest rates, and exchange rates. But if you thoroughly understand the market and are ready to trade, you can prevent many of these risks-get Started For Free

In fact, there are free demo accounts available where you can try your hand at Forex trading without actually risking your capital. This way you can get used to trading and learn how best to make decisions in the account that is designed to be exactly like the real market.

If Forex trading interests you and looks like the smartest choice for you, there are many resources online where you can learn more. There are courses available that teach you the details of Forex trading, how to make profitable decisions and how to succeed. One example of a site where you can find information on Forex is the Federal Reserve Bank's website.

On the whole, Forex trading is the most successful career that you can do from home. It not only allows you to live your life your own way with its immense practicality and convenience, but it opens the door to a whole new world of opportunity and endless potential to make money

Foreign currency market

Foreign Exchange (Forex, FX or currency) will be distributed worldwide sales trading financial instruments. financial centers in the world in trade between the anchor has many buyers and sellers at any time, except weekends.

The course "Forex" is to promote international trade and investment. Foreign currency can be converted into another currency. For example, it allows us operators to import goods and services, wages, although corporate profits in U.S. dollars. Some experts believe, however, that the theory of free movement of money from large financial institutions such participation to improve the global movement of capital account deficit is much more difficult. This trade could lead to a loss of competitiveness abroad.

In a typical exchange pages the same amount of money to pay more money to buy. Modern foreign exchange market started in 1970 when the country finally has a floating exchange rate, which is in the same room as the Bretton Woods system

Global exchange Trade

Target currency currency trader, trading and border to visit the market value in exchange for other currencies, weak sales and earnings strong buy. Currency trend, and that is what attracts Forex speculation want to lock in profits and expected trends. Currency trading in the long term, and many of the trends that can take months or even years, and trends that are less than a week or several days.
Factors that money can not be political or economic interests, and the environment from all sides, reducing the final price will reflect that. international exchange, it seems easy - but to decide what the company is worth millions if the court in the shadow of greed and fear, a little difficult.

Forex Trading - Lose Money

exchange operations have 3 reasons why traders lose money. If you want to see what kind of problems that the winners of the stack, you can join in the great minority.

Here is the trade falls, you lose money:

1. Contrarian disease

Unlike other distributors in the currency market has an opinion - most traders lose money, so they want to act against the common people.

Traders lose because the lack of discipline and money management - but often in the direction of the market. Traders Forex trading opportunities as they are - most of his life with a disability and a trend that is losing money.


Many retailers are trying to ups and downs, and sometimes focus on the next trend. The choice of tops and bottoms is impossible. You can not predict turning points in Forex Trading - should concentrate on the evolution of change can not be predicted.

2. Chartists Trap

Many traders study charts to trade forex to invest in a trap. review of the letter is important - not subjective, but if you lose, you have to stop.

Forms of subjective analysis, Elliot Wave and cycles to avoid - and the indicators moving averages and oscillators for the moment - and examine trends in hunting.

Subjective and objective is currency trading.


3. Ego

Global Forex trading attracts some of the smartest traders are smart people - but also have a big ego. I trade in foreign currency is not a good sign - it means you've always wanted to watch the market wants to see - as in reality it is not.

Operators must take the following questions: Can I make money or do not want to feel smart? Consider the market needs - would make money out.

The Stock Exchange

The Stock Exchange is a market like any other market, there is no market for cars and clothing on the market, for example, the stock market is the place to buy and sell stocks and bonds of companies that aligns the place where investors, whether young or old investors or companies, each market has its different values, such as gold and silver are especially speculation in the stock price of gold to sell and buy homes Petroleum Exchange, oil prices and international currency Forex is the best ever is the currency of international trade (such as the currencies of countries with large economies like the United States and Japan) - Dear stocks exist in all countries of the world, in every state of the stock market, which buys and sells shares of existing companies in the country, the New York Stock Exchange in the United States, and the Egyptian Stock Exchange and Dubai Stock Exchange, Tokyo Stock Exchange in Japan and other countries.
The share market has no specific place in the world spreads across networks and the Internet, but none of them control or control a certain point, the action is universal.

Choosing a Forex Broker

Forex market is considered the largest financial markets in the world.

For many years it is only for big companies and professional talents that are deeply related to the market. Today there are many people involved in this ignorant world business.However profitable, but dangerous for those who are beginners, which includes individual and small traders in this market as something new for them. Sometimes not so uncertain that it will invest or not. Or at least enough knowledge of processing operations and the ability to grow in the future. This lack of knowledge can lead to economic base of this loss.In, operators are trained mostly in the trading system and how it works, or use the assistance of an experienced professional forex brokers. Have a clear idea of these corridors? In the narrow sense, intermediaries are individuals or companies who agree to buy and sell orders in accordance with the decisions of investors. To earn money, brokers were demanding fees or service charges.

It is essential that Forex brokers to join a large financial institution, such as banking, that so few resources outside trading.As exchange trading, opening an account with a Forex broker. Traders Exchange Forex broker to use to take care of business. Forex brokers will act as adviser to clients of the foreign exchange market. Allow Forex brokers to work for one day of major currencies, namely EUR, JPY, GBP, CHF etc against the dollar at the same time, which agrees with the current market price of foreign currency international exchange. His skills with a level of resolution appropriate broker Forex profits.Moreover give technical analysis, and even offer tips on research to ensure that its distributors Forex success. Sometimes proposals in the corridor of the currency, which is moving towards currency broker Forex trading.Maybe function is virtually useless, since the development of technology and consciousness, but we can not completely ignore its role. The introduction of the new model also has an impact on financial markets. But then, that many banks and stock market extended its service to close its online system for retail market. For this reason, some operators use computers to access the forex market, which is in place. Forex broker is now required for this field to select a Forex Forex Brokers Margaret, you must be smart about it. Of course, expected to be very brokers who offer their services online.

Before deciding to choose a Forex broker, make sure you free some research. The amount of time, or know more about the services provided and the amount of different currencies brokers.There things to consider before opening an account with a broker. First, a broker is licensed and registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC), to avoid confusion and business practices which are offensive. Secondly, you must be aware of the charges. Margin is a fixed or variable that counts? Thirdly, the speed of execution. In the fourth trading platform. Fifthly, the broker offers assistance 24 hours. Sixthly, we have solid financial support. In seventh place is always a demo account.

The International Currency Trading

One of the most profitable businesses today is the international currency trading. Despite the fact that the world seems unstable global economic crisis with the publication of a threat, companies still find what in the world of currency trading worldwide. Despite the downturn in other industries, has people in Forex trading continued to expand its activities in this trade.Why?

The main reason for this is because the international currency trading scene is very dynamic. You never know how it rotates. Although some people may think that this unpredictability, the company can cause unattractive, the opposite seems to happen. Along with the unpredictability of the currency comes from the fact that a fair game for everyone. So long as you have what it takes to thrive in this rapidly changing environment, you can expect the unexpected profits go.

Invest In GOLD

The significance of GOLD in terms of wealth can not be compromised. Gold is undoubtedly one of the most valuable elements in the soil. But sources are limited. Gold is more rare with each passing day, so the price of gold continued to rise higher and higher.

Invest Gold Therefore, it is a perfect alternative for gold trading. It is advisable that you buy gold when the price falls in the market. Later, when a rise in the price you sell gold in the market. Before you start investing in gold, it is best to have a perfect strategy for investing in gold. You should also be familiar with the market that deals in precious metals to the maximum in Gold benefits.Invest Next will invest in gold bullion bars in various sizes and weights, like us, g and kg is a better solution. To purchase gold from the 10-ounce bar, consisting of a fine purity of 99.5% is the standard unit and is best alternative of vital importance not only in the gold trade, but also personal use.

There are many benefits of Gold bullion. This corresponds to the store and traded on the latest rates. Gold is considered not only as a tangible asset, but also an investment that the total value of security and ensure that in times of financial or crisis.Invest inflation in Gold

The many benefits that a majority of investors believe it is better investing in gold certificates. You are free to trade gold in the gold market by investing in gold certificates or funds.

Gold funds and certificates are fully insuredFor invest in gold, gold coins certainly shows one of the best opportunities. By selling gold, you can make money in an emergency or urgent, while saving others. This will save you extra costs. As these coins come in smaller sizes, there is no reason to cut them a little more in Gold pieces.Invest Whilst considering safety in finance, gold bullion bars is the ideal liquid investment. These bars are easy and convenient for transportation and storage. Moreover bullion is very useful in times of inflation or recession, and other similar financial crisis.

It is therefore useful to consider investing in gold. It would be useful for you in a lot of knowledge about the process of gold trading and gold trading market before you actually decide to trade gold.

Forex market orders

Currency markets are open 24 hours a day, five days a week, excluding weekends. You can not sit in front of the computer screen all day to monitor the markets move. Currency traders use market orders to capture market movements, but their monitors. market movement is likely to happen when you sleep or shower, which, sitting at the computer screen.There many types of market orders. Appropriate use of market orders is very important to your business success.

You should think about different types of market orders, which operate about to happen. You're in the market so most accurate as possible, while playing for market orders, typing, and follow-starting price performance. Trade can be very difficult without these orders.

Professional exchange market traders often use market orders to reduce the risk of market volatility or uncertainty, implement business strategies for access to the exit, take a sharp fluctuations in the short term and to maintain against unwanted commercial capital losses. Market orders are necessary to maintain discipline and quiet trade as a businessman.

Forex Software - select the best

When it comes to foreign currency trading software that you choose is essential. There are so many foreign trade companies compete for your business, choosing the foreign currency can be a daunting task. Most Forex software in real-time online platform for foreign trade, but other ingredients are essential when it comes to their own currencies Software Before software.Key project money to each program has some basic elements should be included. More importantly, security and software, online foreign exchange transactions, including 128-bit SSL encryption to prevent hackers access to personal data and information such as your account balance, transaction history, etc.Providing best protection for Exchange operations at the company, including 24 -hour support, server software, Exchange 24-hour support if something goes wrong, daily backup of all data security systems designed to prevent unauthorized access.As these security protocols are also some foreign exchange trading companies, using smart card and fingerprint reader to ensure that only employees can access to their servers.Another key factor in selecting Forex software is to check once in the same company. When it comes to currency trading, particularly online forex trading, you must be sure that the chosen international exchange software is reliable, 24 hours a day. Program, select your currency exchange transactions must also possess the technical assistance program has been cut logging short.Ensuring all elements above currency of your choice to help success in foreign currency transactions to guarantee.

Overview of the Forex Market

Forex market carries the largest amount of liquidity relative to other types of securities market. Not only is there enormous liquidity, are also trading is available 24 hours a day, but it can be negative if it is not possible to drag yourself away from the screen

Let us look through the leverage used in Forex market. Typically, merchants use 200:1 leverage in the marketing business. New dealers must be extremely cautious in their accounts can be destroyed in a business where good risk management is employed.

Another advantage of the forex market is that it only varies dramatically when the macro-economic events taking place, unlike shares that can have a huge drop overnight because of earnings reports or other negative news.

Forex trading can be like daily trading

Forex trading or currency trading has become a craze a little late, especially because it is something available to anyone with a computer. And anyone who is willing to provide some training time can profit from forex trading.

In the currency market to find dealers worldwide monitoring currency fluctuations, not unlike a trader may monitor a change in the ratio of Dow Jones.

Forex Trading, Business of two pairs of currencies like the U.S. dollar and British pound. Because it requires more money to buy first, that currency loses value. Not unlike, stock trading, forex traders try to accumulate currency weakens, he hopes to sell when the value rises. Forex trading is otherwise not buy low, sell high approach found in stock trading.

As a trader, the forex exchange market continues to give currency bid / ask bid, says he is willing to purchase, for example 1.6 marks per dollar and sell them for $ 1,625 per. One is a market trader to get into this process. So most people who are online forex trading buy currency at the banks by paying premiums, they must come up with a fee to a bank account for the calculation of their spread, or profit when you sell.

Forex trading is not an easy path to riches. And some people have lost considerable money miscalculating the market. Its growing popularity, may take some time forex market exchange more than one trillion U.S. dollars exchanged. Packages of teaching a new forex trader how to invest in the market, prices may vary.

Forex4x - What is forex?

Forex: forex is an abbreviation of the word literally exchange - the exchange of international currencies.

forex Market:
Currency Trading (Forex) market is the biggest market in the world with a daily circulation of more than 3000 billion dollars. Participants in this market are banks, organizations, investors and individuals.

Forex goods are the currencies of various countries. You buy Euro, paying with U.S. dollars, or sell Japanese yen to Canadian dollars. Or maybe you're just exchanging pounds or U.S. dollars to buy property abroad.

Profit in Forex?
Of course you can buy cheap and sell for more! Profit potential comes from the fluctuations (changes) in the foreign exchange market.
the Best thing of the forex market is that the daily fluctuations, say - around 1%, multiplied by 100!

Forex Trading -Risk management

If you trade the futures market, or agreeing to buy or sell a currency at a later time - the risks may be high due to the nature of the contract. The possibilities are less dangerous because they generally carry the maximum risk from the beginning. Spot cash and carries no currency risk. Just back what you paid for the amount of days. If the currency goes up or down later, it does not affect you.

Strategies of stock market

Investors can use a number of strategies to invest in the stock market. First, analyze market trends, know the market where companies are interested in and buy stocks at the right time.

Generally good companies advertise their earnings and their market position, and at certain times of the year. Stock prices have a tendency to increase the communication is made. Why should investors pay attention to these periods, rather than buy shares at this time. In other words, it is important to wait for the right to "monitor the markets and stock trading. Some of the key strategies for stock market investors who are listed below: -

Make a well-planned portfolio to respond to a certain level of risk tolerance.

Review and update your portfolio to keep pace with market developments.

Technical analysis of stocks helps to improve the knowledge of company: profits are capitalizing on the market and its prospects for future growth. It is also important to be able to understand and use quantitative indicators for the stock market.

As investment in stock market is complex, inexperienced investors should always seek help from financial advisers and stock market analysts and conduct their own money.

Under the motto "Buy low and sell your car, always buy shares when prices are low and sell when prices rise.

Invest wisely. What sense of the market, along with a good knowledge of the company is planning to invest, helping to ensure that investment decisions more efficient. Investors should carefully consider the market where the company has chosen.

long-term vision and planning are crucial. Investors should assess their strength and capital to set the limits of their tolerance before investing in the company. In other words, when the shares they hold, and quitting.

In general it is recommended to develop and implement an exit strategy carefully. Investors can make their appearance when they get a good profit for the period.

Returns received from the sale of shares can be reinvested in other gives promising high.

Investors have also set a deadline for their approach to the extent of damage that they are willing to accept when the market does not work. They can go after their loss with this approach or is predetermined limit. This strategy limits the amount of loss an investor can tolerate commonly known as "Stop Loss Limit.

Another strategy, investors can use the "Buy and changes often. Stock market research shows that every company has some restrictions on the expected benefits of their actions. So, investors can withdraw funds achieve maximum return on shares, respectively. It important to invest in a number of companies to support small loss.

The objective of any investment to maximize returns and minimize risks. Diversification allows you to maximize return on investments in shares and bonds to manage risk better. Investors should allocate their investments across various categories, such as securities and foreign investment funds in this matter, and good profits.