Forex Market Trading Basics

The forex market can be intimidating for someone who has never invested in it before. What is a ticker, what do the symbols mean and how exactly do pips work? Well if you really want to learn the forex market then you’re in luck, that’s what this article is all about. These days, due in part to the online forex market, things are wide open for new-comers and the numbers swell up every day. Don’t be one of those who’ll fall to the way side too soon after they’ve begun.

Don’t Play to Win, Think to Profit

The first thing to remember with the forex currency market is that it’s only gambling if you take spontaneous, unproved actions without strategy or research; successful forex traders definitely do not make their success this way. Games may be fun, but losing money you don’t want to lose is definitely not fun. To begin with, never invest real money in the forex exchange market right off the bat; you’ll want to open a Metatrader 4 demo account and virtually play the forex market for at least two months. Using the results of those two months will give you an idea about how ready you are and with 90% of all new forex traders failing it’s a pity that more people aren’t satisfied with practice to begin with; practice makes perfect after all.

Follow Trends of Success

We’ve all heard the stories about the fish that swim upstream and make millions trading in the forex market, but these will always be the exceptions to the rule. Trends are your friend and you should always follow through on them. When trending is up, you do not want to be buying and when trends are down you do not want to be selling; it’s as simple as that to play it safe. Another safe bet is to never risk more than 2-3% of your total forex account which allows you to weather the tumultuous times. An unsuccessful trader will usually lose their account after a dozen or so unprofitable trades in a row; losing 50% of your account means making 100% to break even.

Trade With Your Head

Finally keep calm if you lose out on a trade because immediately going on a revenge trade frenzy will without a doubt lose your money. Forex market success is built on calm collected and logical trades with low-risk; slow and steady wins the race. The forex market can only threaten your life if you put that life in its hands and disrespect it; otherwise it’s like a big kitten.

Eugene Calvini is a writer and forex enthusiast; his experience with finding the best online CFD broker has helped him become a successful Metatrader 4 forex broker.

Learn Forex trading With Demo Accounts

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Any broker who wants your money in a live account will offer you a demo account; it’s the ‘norm’. But is demo trading; and are demo accounts, really required? The answer is a resounding yes. The broker will entice you in with the ability to open a trading account with a very small amount of money; they will offer you lots of leverage. Alarm bells should be ringing in your head at this point – if it was this easy to make money, why isn’t everybody a millionaire?

A demo account and demo practice is necessary for long term success as a trader and there are many advantages to beginning your Forex training on a demo account. Try not to be enticed to the action and excitement of trading real money because as a new trader, you lack the skills required. A demo account will give you the chance to get used to the trading platform and to make silly mistakes. “Whoops I just bought instead of sold” – at least that mistake didn’t cost you anything. “So, that’s how position sizing works”, “Right, now I understand leverage” -those mistakes will blow up your first live account quicker than you could possible believe. Keep your Forex training simple and learn Forex trading the way it will help you the most.

Ultimately, the best way to get the most from your demo trading and demo account is to treat it as real. Admittedly, it doesn’t have the same emotional requirements as live trading, nor the euphoria and excitement. However, it does have the ability to teach you the mechanics and techniques of trading and the chance to create and test a trading strategy, for free.

When you first start to learn Forex trading with your demo account keep a log of all of your trades as you would if it was real. Follow your Forex training strategy entry and exit rules (test that it works). Try to remain as focused and “true to life” as you would if it was real. Otherwise, there is little point in the exercise. Imagine your progress as a trader in stages – your first stage is demo trading. In order to progress to live trading you have to get to stage two. Now set yourself a target in order to get to stage two. It could be based on time such as aiming to go live within 6 months. It could be based on profit, such as aiming to go live once you grow the Forex training demo account by 10%. It could be based on statistics such as aiming to go live once you have done 100 trades with a greater than 55% win rate. It doesn’t really matter too much how you decide. Just make sure you know that you have a vastly greater chance of longer term success if you spend time practicing on a demo account if you decide to learn Forex trading.

 

If you want to Forex learn trading you will need to practice on a demo account. Our Forex training course will provide you with a demo account as soon as you start.

Forex Trends of 2011: Opportunities for the Future

SetForget Pattern Profit

It is impossible to predict what the future holds with regards to currency trading. It is a form of betting where one must make use of Forex trends from the past, weigh out probabilities and examine the overarching social, political economical environment that the Forex market resides in. For Forex geniuses like George Soros or Jimmy Rogers, this information paints Forex trends as clear as day. Nevertheless, they are still using archives of information and their understanding of outside influences to make informed decisions as opposed to intuitive guesses. Fortunately, beginners or enthusiasts can rely on the expert analysis of professionals and Forex trading companies on the web, who share insight in exchange for loyalty. Below is the general web consensus of the Forex trends of 2011, both the mistakes and opportunities that were made as well as what there is to gain in 2012.

The Major Events that Affected 2011 Forex Trendscurrencies

There were a few major events that sent the Forex trend lines in varying directions. The first came from the United States who lost their AAA credit rating for sovereign bonds. Next there was the move towards ‘Oliver Twist’, that is the Federal Reserve Banks decision to trade some of its shorter dated bonds for longer bonds, with consequently affected the interest rate. The third and most publicized event was the yo-yo economic changes within the Eurozone. Going from red to green and then red again, a pattern which is expected to continue in 2012. This will heavily affect Forex indicator trends as fear of further contamination will dictate the attitude of the market. The US Dollar is expected to be a safe refuge for the Euro and experts in Forex trend forecasts expect a similar role from the British Pound.

Forex Trends and Trading Opportunities

Forex trend strategies and tips that have been suggested by expert Forex trend forecasters include going long with the USD/JPY; they have also warned to be careful with the timing. However, a profitable trend Forex system is to start off small, going larger only when you have confirmation that the strategy is working. Keep a look out for reversal opportunities for the USD/CAD, AUD/USD, NZD/USD and USD/CHF. Look back on Forex market trends in 2011 to ensure when past conditions for reversals are repeated in 2012. The biggest pointer to remember when examining forex trading trends is to remove the bias that is inherent in the human mind. Although it is not possible to completely do this, be consciously aware of ingrained biases. Put analyses, past Forex trends and overarching global conditions first and watch signals from the market as closely and objectively as possible.

Penny Munroe is an avid writer in currency trends and forecasts and aims to educate readers on how to be responsible traders. She started trading under a metatrader 4 broker but after downloading a mt4 demo she now manages her own Forex account.

Forex Trading For Beginners

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Forex trading seems a complicated affair and most of us put our money in the bank and hope that our money magically grows. This is why many people are looking to Forex trading as a means to making money for them as opposed to them always working for their money. Forex trading for beginners is gaining in popularity, with many beginners educating themselves by way of Forex trading tutorials for beginners.

The simple Forex market

The Forex market, as most know, the market on which currencies are traded, and Forex trading is the largest liquid market in the world with the market rapidly growing each day. As there is no central place where currency is traded, unlike the stock market on Wall Street, Forex trading is done online or over the counter. There are traders of various sizes but it’s been stated that it’s better to use larger Forex traders because they have better access to pricing at larger banking facilities.

Currency pairs are the fundamental factor behind Forex trading and beginners need to educate themselves on the breakdown of currency pairs. In the currency pair there is base currency and counter currency. The currency pair is the quoting of one currency against another, as in how much it would cost of one currency to buy another. Forex trading beginners while working MT4 download tutorials for will learn that in the currency pair a certain amount of the counter currency will be needed to buy one unit of the base currency. As an example: How many USD to buy one EUR?

The easiest way to learn Forex trading is for beginners to download a demo and work through it at their own pace. Many large traders offer free demo accounts which mirror the live accounts their clients utilise for live online Forex trading. Tutorials and information is all on-hand to ensure all questions are answered and given in layman’s terms. Investing and trading seems intimidating due to the plethora of confusing terms, but they are not as complicated as they seem.

Traders

When looking for a demo trading account for beginners it’s preferable to utilise the demo platforms of larger traders due to their experience and on-hand tips for first-timers. The demos allow for trading with “monopoly” money thereby allowing Forex trading beginners to learn by trial and error with no risk involved.

Learn Forex trading for beginners by using online Forex trading. It’s a competitive world, but with the correct guidance through a highly-respected trading house, Forex trading opens doors to an entirely different world of investment that can yield extremely high returns in a short space of time.

Vida Denning enjoys writing on a wide variety of topics.

Early Warning Signs that your Forex Broker a Scam

A trader whom we shall call Mr Dee sees a web page advertising a chance to make money from trading Forex. But this web page is one with a difference. He is taken in by the glamorous video of a pretty brunette detailing all the benefits of trading with the broker whose sales page he is looking at. Just then, something she says catches his attention. The broker is offering him a 100% bonus. He cannot believe his ears, but when he decides to pitch his tent with this broker and wires in $10,000. To his surprise, he is credited with an extra $10,000. But that is when he is told by his broker that he has to trade a certain number of times before he can withdraw any profits. He keeps trading, and when he then decides to make his first withdrawal after fulfilling the terms of the bonus, he gets an email saying he has allowed third party trading on his account, and his account is suspended and all funds seized. The broker cuts off all communications with him, and he is left bemused. Further investigation reveals that the broker is in a location which is completely unregulated.

 

In another scenario, another trader notices that he keeps getting stopped out in one of his Forex accounts even when the price quotes on other trading accounts indicate that the price action still had a few pips to go. He is at a loss as to why this is the case, and all emails to his broker are met with unconvincing responses.

 

In yet another scenario, trader notices that any time he trades high-impact  news items, and his trade is in a profit, his trading platform freezes up, and he cannot close his trades, until when the market has probably reversed against him. When he tries to withdraw any profits, he has made, his broker finds one reason or the other not to honor the withdrawal request.

 

If your broker or any other broker you know has engaged in one or all the practices mentioned above, then that broker is a scam broker. The sad thing is that many cases like this occur, and they are not rare; they are commonplace. For any genuine broker out there, there are 10 scam brokers in operation. The wide geographical location and the absence of a specific global legal framework has made it difficult to pursue and prosecute such scam brokers, and traders have to rely on personal due diligence and a bit of luck or prayers to ensure that they pitch tents with the right brokers.

 

Here is a list of identified scam brokers, who have closed shop and disappeared with traders’ funds.

 

  • CrownForex.com
  • CRE Capital Corporation
  • CDH Global
  • Forexgen.com
  • GCI Trading.com (GCI Financial)
  • BForex.com

 

There are a whole lot of others out there. All you need to do is to check on Forex forums, and you will get so much information that it will almost be criminal for you as a trader to fall into the hands of these scam brokers.

 

Article was written by Alexander Collins. As a general rule, always choose brokers that are regulated and have a good track record when it comes to trading conditions and withdrawals. Stays the question: “How to choose a Forex broker?” Visit my Forex blog to learn how to choose a broker wisely, and what unethical tricks Forex scam brokers use to rip of retail traders.

Who Says You Can’t Make Money On The FOREX Market?

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There are a lot of scams and get rich quick schemes being touted in the media, both on and offline. While naysayers might tell you that you can’t make money, and that you’ll certainly loose money, when investing in Forex, know that with some basic education on the Forex market and how to trade, you can make money–really good money–with Forex. Here are four tips to help you as a beginning Forex trader.

Don’t Jump In Head First: Unless you’ve lost your job, don’t quit your day job until you are making at least half of what your normal pay equals, on a consistent basis. If you are used to brining home $4000 a month, make sure that you have four to five months where your Forex trades earn you a minimum of $2000. Treat Forex like your part-time job while you learn the ropes and make your trades in the evenings, weekends or vacation days. Since the Forex market is open round the clock, you can make trades anytime. Going from part-time to full-time income probably won’t take you as long as it takes to go from $0 to a decent part-time income.

Start Small: Once people begin to see just how profitable Forex is, they tend to want to mortgage the family farm, so to say, in order to maximize their profits. This is a key reason people doubt that you can make a long term living trading Forex. Assuming you have a steady income now, spend no more than a week’s pay for your startup investment. If you have a family or people who depend on your income, you might want to be a bit more conservative. When investing it’s best to take small, steady steps rather than huge leaps if you are planning to be in it long term. As you make more and more profitable trades, you can put more money into them thereby increasing your risk and profits.

Get the Support of Your Partner: Far too many people who get into new businesses without telling or getting initial support from a partner. You really need to do this especially in a marriage, long term relationship or when your finances are combined because your partner can be your number one fan and support you through the learning stage when more losses tend to occur. On the other hand, they can also be your worst enemy if you start spending your time and money at the computer making trades when they don’t agree with what you are doing.

Use Educational Tools Wisely: Remember to treat any and all programs and Forex trading software pieces as tools, not a fast track to earning cash. Forex is part luck and part knowledge. Using the knowledge you learn will put you in a better position than someone who just relies on luck.

Follow these tips as you start making money on the side with Forex to show others that you really can make money with Forex. Remember to treat it as a business, make trades and study as much as you can on a consistent basis and a year from now you bank account could be a lot bigger!

Chad Smith is a Markham car insurance agent who spends a great deal of his spare time watching the foreign exchange markets.  If you’d like to get in on currency trading you’ll need to start somewhere.  There are a great deal of apps which will allow you to play the market using fake money.  When you feel confident you can move up to trading with your real money.  If you’re short on cash you can always reduce your expenses.  One thing that many people overspand on is their car insurance.  You can compare car insurance quotes at Kanetix, and often considerably reduce the operating expense of your automobile.