Forex market is the largest and most liquid in the world today. A change daily to three trillion U.S. dollars with owner Forex. This is a huge sum. No stock exchange in all countries are close to them.
This market is huge. It is a sea full of sharks and dangerous waters of money, but it is also the only market where you hypothetically at least $ 1,000,000, within two weeks from only $ 1,000.
I say theoretically, because what often happens is that the blind people their money on Forex without knowing anything about it and they lose their shirts. So I say: Beware! This market is profitable, but you have to learn the basics, you do your homework and demo trade a lot.
Remember that 95% of the money traders, 5% and less than 1% of the profits lost on Forex. The good thing about this market is that you money, without selling any product or service, nothing, or advertising. You just trade money and paid on the basis of your knowledge and experience.
The market, banks, transnational corporations and individual traders exchange one currency for another. I speak of the spot market Forex. You can exchange up to considerable influence 400-1, so that for every dollar you have to trade, you mean 400 trading companies. For example, if you have $ 1,000 in your account, you can trade as much as $ 400,000.
This is dangerous. Most experienced traders will therefore not high on this multiplier effect. In contrast, high leverage can be good when you get to use them in your favor. Anyway, enough of the basics. If you want to know more about this market today, and so his story, then read my other article.
Now we will talk about strategies, and how some Forex traders to make money. Let's start with the fact that the work that works for me may not be necessary for you. Currency trading is risky. It is a fact. But finally I found a few strategies that a novice traders could be winners.
Forex Trading is to think not as easy as most people. Today you can win a lot and tomorrow you will lose 40% of your original capital. Novice traders often make the same mistakes again and again. I will list some of them below.
1st Do not look for a Holy Grail of trading.
This is for people who are afraid of losing or too greedy and want to get rich quick. Although it seems that the Forex market is not the place to get rich quickly. Yes, you can a lot of money over time to make, and you do not even sell to create more, or to advertise products. But you must learn a whole lot of what thrilled that market and what moves the price of currencies on how to manage your money effectively in order not to lose your shirt.
Many newcomers to spend much time in search of a perfect strategy that will enable them to always win-win and lose never will. You want to have guaranteed profits because they can not bear to lose and / or they want to withdraw too much (in millions) as fast as they can and buy a house fast in a beautiful tropical remote island. It does not take place.
Do not waist your time. A trading strategy makes it possible that you are not guaranteed profits available. The trade is very risky. That is why it is so profitable. Remember: "no risk reward, no." So try not to always win on every trade. It is simply not possible. There is no way to get rid of that insecurity. What I mean is that what may be the effectiveness of your trading strategy, sometimes it is not, and you must be willing to be to make this a reality.
By not about finding a perfect strategy you turns quickly to a millionaire is to own a ton of time and effort. It does not exist. If you find it, please do not tell me. First, I do not believe you. Second, I do not need. See below why I say I will not need.
2nd Use the technical analysis and fundamental analysis.
When I started trading I do not think I would know that a strategy which was to manage the money alone to find (which I received yet). This is not good! Money management is important, but you still need the other two. You define ("predict"), where is the market position on the effectiveness of your technical and fundamental strategies.
Mastering technical analysis is the ability to future price movements by analyzing past price data and graphical models predict. You see a diagram of certain currencies. Check the data you observe and based on your knowledge of technical analysis, to predict "with some precision, where the market is in progress.
Many brokers, you can add technical indicators for graphics while you are trading. You can try this on a demo account and see how you are able, the future price movements of currencies that you plan to trade are defined. One such broker is www.oanda.com.
Many technical indicators. I can not say that is more effective for you. Every trader is different. This is something you will discover for themselves. There is no hidden secret or magic formula for Forex trading. This is called doing it every minute when you before the graphic and news monitoring, what really counts.
The secret lies in your general knowledge and your decisions. That comes with experience and practice. When you open an account with one of these online brokers you can trade on paper before you trade real money, so you can learn and practice before risking capital.
Let me tell you about a few technical indicators, you can use. You can use the MACD (Moving Average Convergence Divergence) use, Bollinger Bands, Pivot Points, RSI, Stochastics, Fibonacci, EMA, Elliott Waves and many others. While there are many technical indicators, but these are among the best known and used.
If you lead technical indicators for graphics software to automatically add Broker mathematical calculations to interesting facts and patterns about the graphics that you disclose not simply be seen without these indicators. You can use technical indicators to create their own technical systems.
These systems will never work 100% of the time, but if they work, that, 70% - 80% sufficient, it. Since you can control your risk management techniques with the money, which I describe below.
To increase your chances of winning and reduce your chances of losing on every trade that you use fundamental analysis. I think that most traders choose one or the other, but many traders use both.
Fundamental analysis is to exchange messages. What happens to the economies of the currency you act? What is the index of unemployment? Something is suddenly could have a material impact on the prices of currencies?
Trading the news is another effective way to "predict" where the market is in progress. Many online brokers offer a link to important financial news.
3rd Use strategies for managing money.
You need technical management of the money. It makes you or breaks. Put this way, most traders to invest much of their bargaining power of capital on each trade. It is as follows. . . "Expect to do too much and do little to expect little to do and do a lot."
What does this mean? This means that if you try to make money on each transaction, you lose your shirt. If you plan to do some trades and you have made your profits, you can make lots of money over the long term.
The first rule of money management, says that you do not risk more than 1% of the money you have in your account. You can control this risk with a stop loss and limit orders. When you start trading This may seem small profits especially if you start with a capital bit of business. However, if you made some or all of your winnings, you can update your account over time exponentially.
The magic of compound interest is amazing! This is how most wealth is created in the financial markets, piece by piece. If you play your money you can lose it quickly.
Many traders do exactly the opposite. Just imagine that you open an account with $ 5,000 and a trade for $ 1,000. Suppose the market is against you and you lose $ 1,000. Now you have $ 4,000 in your account. You think the price of money is too small, should recover it. In fact, you are pretty sure it will come.
Then you invest $ 1,500 to recover to the previous loss and a profit of $ 500. The market moves against you again. He continued in the same direction, something you have not planned. What happened? Now you have $ 2,500 in your account. This is 50% of the initial trading capital. It is very difficult for you to recover from this loss.
However, if you risk 1% of your money with each transaction, you have $ 4900 in your account after the first loss. It will recover a lot easier for you to manage these trades.
The second rule of money management is still expected to receive more benefits than the money that you could lose. This can be achieved by the limit and stop orders and trailing stops.
For example, if you plan a win for all trades 25 pips to make, then you put the stop order 15 pips above or below your entry price. A better way to have a ratio higher life expectancy, use trailing stops as I described above. A trailing stop, you can lose the short and let your winners again cut off.
Monday, July 19, 2010
8 Basic Tips on choosing Best Broker
There is basic advice should you consider when you want to choose Forex online broker.
1 - Quantity distributed
The press release, which is calculated in points, is the difference between the amount that can buy or sell a currency at a specific time.
Forex currencies are not centralized on an exchange-traded, so that made the release may be different, depending on the forex broker you use. Some online forex brokers have variable spread, some of them two amounts, which spread from the day and night.
Some of them, their spread depends on the market. If the market is quiet the spread is low and where the market is spread is high. I prefer to have spread Forex brokers, the firm, because the long term can be fixed safely.
2 - Execution
- What is the speed of execution of the agent?
- Do they offer automatic execution?
- How you can before he request a trade offer?
- They do not act against their clients?
The best way to find out, is a demo account and give them a test drive.
3 - Options Leverage
Lever is in relation to total capital that is available to be paid back and put your actual capital. For example, if you have a ratio of 100:1, your forex broker will lend you have $ 100 for every $ 1 of actual capital you. Leverage is a necessity in forex trading, since the prices are set in the currencies of a fraction of a cent.
Before choosing an online Forex broker review, what is its influence. Many brokers offer some flexibility that the lever you have to choose.
4 - Account Types
Opinion Forex Broker Mini Account or not. Mini Account is for those who are new to trading currencies online, and those designed with limited investment capital. There is a small deposit required to start the trade of only $ 300 or less.
5 - Trading Platform
Good trading software online map prices, if you do not really trade can only be indicative quotes. It is to limit and stop orders, and ideally you will connect your command of the issues. Know-Cancels-Other are another useful feature - it means you can leave your business and then pull out the software.
6 - Management of the tools and value-added services
Learn online forex broker that offers the best information and resources to help you make smarter decisions negotiation. A good company should offer real-time charts, technical analysis tools, real-time news and data, software or support site. Beware that each company to reject information or trial versions before opening an account shares. You want to try your system before deciding to invest in it.
7 - Support
Forex is a market of 24 hours, so that should your online Forex brokers offer 24 hours support. You should also check whether the items on the mobile phone near you - in case of significant your PC or internet connection crash at a critical time. You can see at their offices via the Internet, how fast they respond to requests for information.
8 - get references
Ask around and read forex forums to find out where people use other Forex brokers and why they chose a particular broker.
1 - Quantity distributed
The press release, which is calculated in points, is the difference between the amount that can buy or sell a currency at a specific time.
Forex currencies are not centralized on an exchange-traded, so that made the release may be different, depending on the forex broker you use. Some online forex brokers have variable spread, some of them two amounts, which spread from the day and night.
Some of them, their spread depends on the market. If the market is quiet the spread is low and where the market is spread is high. I prefer to have spread Forex brokers, the firm, because the long term can be fixed safely.
2 - Execution
- What is the speed of execution of the agent?
- Do they offer automatic execution?
- How you can before he request a trade offer?
- They do not act against their clients?
The best way to find out, is a demo account and give them a test drive.
3 - Options Leverage
Lever is in relation to total capital that is available to be paid back and put your actual capital. For example, if you have a ratio of 100:1, your forex broker will lend you have $ 100 for every $ 1 of actual capital you. Leverage is a necessity in forex trading, since the prices are set in the currencies of a fraction of a cent.
Before choosing an online Forex broker review, what is its influence. Many brokers offer some flexibility that the lever you have to choose.
4 - Account Types
Opinion Forex Broker Mini Account or not. Mini Account is for those who are new to trading currencies online, and those designed with limited investment capital. There is a small deposit required to start the trade of only $ 300 or less.
5 - Trading Platform
Good trading software online map prices, if you do not really trade can only be indicative quotes. It is to limit and stop orders, and ideally you will connect your command of the issues. Know-Cancels-Other are another useful feature - it means you can leave your business and then pull out the software.
6 - Management of the tools and value-added services
Learn online forex broker that offers the best information and resources to help you make smarter decisions negotiation. A good company should offer real-time charts, technical analysis tools, real-time news and data, software or support site. Beware that each company to reject information or trial versions before opening an account shares. You want to try your system before deciding to invest in it.
7 - Support
Forex is a market of 24 hours, so that should your online Forex brokers offer 24 hours support. You should also check whether the items on the mobile phone near you - in case of significant your PC or internet connection crash at a critical time. You can see at their offices via the Internet, how fast they respond to requests for information.
8 - get references
Ask around and read forex forums to find out where people use other Forex brokers and why they chose a particular broker.
Forex Scams: How to Spot Them a Mile Away
In recent years, the investor is a higher number of investment opportunities and offerings have seen. While the complexity and success of these investment products vary, technological innovation has made the Forex market areas of greatest growth. Many Forex brokers market leader reported 500% increase in the number of new retail customers. However, growth in the foreign exchange market has been accompanied by a sharp rise in foreign exchange fraud.
Many of these Forex scams are promoted on radio, television, newspapers and the Internet. Investors who are victims of these systems lose, and often their money. As an illustration, consider the facts of a recent case involving fraud, Forex and its consequences. W an opportunity currency trading was told by an infomercial on the radio. K, the owner of a Forex asset management firm, spoke during the infomercial viewers promising profits with minimum risk. After seeing the infomercial, contacted WK, and later presented at a seminar of K and his company. The seminar was so convincing that W wrote a check to K for $ 100,000.
A few months later, W received statements (which were false) from the company K reflects a return on its initial investment, $ 100,000. Then W visited a seminar and decided to invest more money. W took a loan and invested another $ 800,000 in K's Forex trading operation. Shortly after the second investment of W, the Securities and Exchange Commission filed a complaint against K and his company for inclusion in a conspiracy to defraud investors. K's corporate assets were frozen, including $ 900,000 invested by W. A receiver was appointed, cheated to distribute the remaining assets of the company for investors K. The assets were distributed on a pro-rata no statutory preference for one of the victims. Since fixed assets are not sufficient K to be to satisfy all requirements of the investor defrauded, W received only $ 22,000 of the $ 900,000 he invested.
As a whole book could be written about the various tactics and methods used by fraudsters Forex, in this article I will identify the most important warning signals that prevent victims of fraudsters Forex should focus.
1st Promises little or no risk
If you are a company that claims to encounter a forex strategy trading currencies that bear little or no risk, have developed stay away. The reason Forex trading can be very profitable, because it is also a very high risk of loss. The Forex market is very volatile and without proper management of money, the investor can lose most or all of their assets in a few days. So, individuals and companies, which claims that far to make the market realities, as is the risk of less Forex trading, are really your money.
2nd Guarantees of big profits
Beware that ensure business high profits in the Forex market. These so-called "guarantees" are mere tricks to believe to investors that their money is safe and they are certainly big profits to win. Such claims are simply wrong, because even the best guarantee professional traders they can not benefit every day. The foreign exchange market, as most financial markets is very unpredictable. Therefore, be careful, such claims and those that do.
3rd Job offers for Forex Traders
Many companies use currency trading employment ads to attract individuals with capital to trade in their systems. Jobs, who often say in newspapers and the Internet, that the company has changed its trading partners for people who teach them how to trade in the Forex market-capital firms. Those who had responded to the ad are convinced by the company that they make a fortune trading currencies participate, if they are in the training of the company. During the training, often on a demo system, the operator asked time and told that to show their demo trading records that have made significant gains, they are ready to make real money is to be a great success. Despite the company's assessment of the novice trader as a brilliant newcomer, no firm capital is provided for the operator, instead of the newcomer is told thrilled to use their own capital base to trade in the platform of the company. In addition to various fees imposed on traders using the platform of the company, the company earns money as a Forex Introducing Broker. Each time the novice trader trades through the company is the system, a good part of the spread charged by the broker and is divided into the coffers of the company. After a few months, the novice trader loses all of its capital and leaves. The Forex firm, with money in the short relay operator beginner moves to new traders eager rich, commercial city of foreign currencies will be provided.
4th Forex is the member firm or CFTC NFA?
Before signing a check and give you your money for a company Forex, be sure to investigate the company. Check whether the trade Forex that you have to do business with the U.S. Commodity Futures Trading Commission or the National Futures Association is registered. Many scammers falsely claim that their companies are registered with the CFTC or the NFA to gain the confidence of the investors perspective. Do not trust anyone, research the company and the context of the parties before the departure of your hard earned money.
Many of these Forex scams are promoted on radio, television, newspapers and the Internet. Investors who are victims of these systems lose, and often their money. As an illustration, consider the facts of a recent case involving fraud, Forex and its consequences. W an opportunity currency trading was told by an infomercial on the radio. K, the owner of a Forex asset management firm, spoke during the infomercial viewers promising profits with minimum risk. After seeing the infomercial, contacted WK, and later presented at a seminar of K and his company. The seminar was so convincing that W wrote a check to K for $ 100,000.
A few months later, W received statements (which were false) from the company K reflects a return on its initial investment, $ 100,000. Then W visited a seminar and decided to invest more money. W took a loan and invested another $ 800,000 in K's Forex trading operation. Shortly after the second investment of W, the Securities and Exchange Commission filed a complaint against K and his company for inclusion in a conspiracy to defraud investors. K's corporate assets were frozen, including $ 900,000 invested by W. A receiver was appointed, cheated to distribute the remaining assets of the company for investors K. The assets were distributed on a pro-rata no statutory preference for one of the victims. Since fixed assets are not sufficient K to be to satisfy all requirements of the investor defrauded, W received only $ 22,000 of the $ 900,000 he invested.
As a whole book could be written about the various tactics and methods used by fraudsters Forex, in this article I will identify the most important warning signals that prevent victims of fraudsters Forex should focus.
1st Promises little or no risk
If you are a company that claims to encounter a forex strategy trading currencies that bear little or no risk, have developed stay away. The reason Forex trading can be very profitable, because it is also a very high risk of loss. The Forex market is very volatile and without proper management of money, the investor can lose most or all of their assets in a few days. So, individuals and companies, which claims that far to make the market realities, as is the risk of less Forex trading, are really your money.
2nd Guarantees of big profits
Beware that ensure business high profits in the Forex market. These so-called "guarantees" are mere tricks to believe to investors that their money is safe and they are certainly big profits to win. Such claims are simply wrong, because even the best guarantee professional traders they can not benefit every day. The foreign exchange market, as most financial markets is very unpredictable. Therefore, be careful, such claims and those that do.
3rd Job offers for Forex Traders
Many companies use currency trading employment ads to attract individuals with capital to trade in their systems. Jobs, who often say in newspapers and the Internet, that the company has changed its trading partners for people who teach them how to trade in the Forex market-capital firms. Those who had responded to the ad are convinced by the company that they make a fortune trading currencies participate, if they are in the training of the company. During the training, often on a demo system, the operator asked time and told that to show their demo trading records that have made significant gains, they are ready to make real money is to be a great success. Despite the company's assessment of the novice trader as a brilliant newcomer, no firm capital is provided for the operator, instead of the newcomer is told thrilled to use their own capital base to trade in the platform of the company. In addition to various fees imposed on traders using the platform of the company, the company earns money as a Forex Introducing Broker. Each time the novice trader trades through the company is the system, a good part of the spread charged by the broker and is divided into the coffers of the company. After a few months, the novice trader loses all of its capital and leaves. The Forex firm, with money in the short relay operator beginner moves to new traders eager rich, commercial city of foreign currencies will be provided.
4th Forex is the member firm or CFTC NFA?
Before signing a check and give you your money for a company Forex, be sure to investigate the company. Check whether the trade Forex that you have to do business with the U.S. Commodity Futures Trading Commission or the National Futures Association is registered. Many scammers falsely claim that their companies are registered with the CFTC or the NFA to gain the confidence of the investors perspective. Do not trust anyone, research the company and the context of the parties before the departure of your hard earned money.
Choosing Your Forex Broker: Important Facts
The best advice I can give is that you behave like a chief survey of potential employees. These employees are important decisions about your financial future (or lack of) and it is therefore of utmost importance that you ask the right questions. This decision can not be taken lightly as it should be well thought out. I interview (more like barbecue) at least five potential agents before the last two.
When choosing a Forex broker, there are many factors to consider.
- Trust
- Experience
- References from former clients
- Degree of success
- Amount of advice
- Equipment
- Offered amount of margin
- Speed
All these answers are of course important. In any financial transaction, it is important to trust the broker with whom you work. This confidence is gained by the degree of experience that the brokers are a. Of course there are new broker beginners who are very reliable, but most people prefer to work with an experienced broker. For this reason most new brokers a candidate company, where she cared for and can gain experience.
References from previous customers is important. If your broker has someone else in the past has successfully contributed to it, and that person is willing to talk to him, speaks volumes. You can gage the level of success of your broker has spoken to previous customers and see how well they work, have with the broker. Then have a look at the level of advice provided by your broker is willing to give you. Sure, you make your own decisions and never take someone else's word for everything, but it is good to have knowledge of working with and advice from an experienced broker the most important information convenience factor is also powerless inches. If you live in California, Ohio and then a broker may not be the best choice. But in the age of the Internet, that this factor has become less relevant. By fax and e-mail where you live and your broker has become less important.
The degree of flexibility is offered important. The edge is to use, your money will be used. The broker offers a margin of 50 to one is more valuable than one that you a 20th And of course the speed. Is your broker quick? Has he responded to telephone calls and emails quickly? If so, perhaps you can use it to work.
Your broker BA trusted advisor and someone you can work with the future in order to select the report carefully. Ask friends and acquaintances who are actively used in Forex trading broker that they and how they met. It is quite possible that you get a recommendation from a friend or acquaintance whom you trust and win a good Forex brokers that way.
Another great way to find a Forex broker is to go online. There are message boards, chat rooms and e-mail groups by portals such as Yahoo, Google and MSN, which contain a wealth of information. Setting one of these online communities and seek advice from others is how many people have found their brokers. If a broker has several customers in an online community who are happy with what he has done for them, so this is a good indication that you are happy with him be. Enjoy the many people who participate via the Internet and on some of these online communities. Ask questions and get to probably a lot from the experience that other people had. You will find subscribe, journals, magazines and online magazines. Read everything about the Forex Trading, before he in them. Are you an intelligent informed consumer and merchant.
Finding a good Forex broker is a work in itself. When visiting with a Forex broker you essentially a job interview to determine whether this is the broker to manage your finances, be as thorough. Ask lots of questions. Ask for references. Do not be shy. Also check with others in the office of the agent and see if we rely on them to your dealer if you want to replace not available. And, if the broker is willing to use a demo account to get a little exercise, take before you actually make an investment offer. If the broker is able to do this and encourage you, it means that the broker will provide customers educated and do not just easy money. You see, what kind of training and supervision of brokers willing to offer. A good agent to offer to answer any questions and help you in the learning process.
When choosing a Forex broker, there are many factors to consider.
- Trust
- Experience
- References from former clients
- Degree of success
- Amount of advice
- Equipment
- Offered amount of margin
- Speed
All these answers are of course important. In any financial transaction, it is important to trust the broker with whom you work. This confidence is gained by the degree of experience that the brokers are a. Of course there are new broker beginners who are very reliable, but most people prefer to work with an experienced broker. For this reason most new brokers a candidate company, where she cared for and can gain experience.
References from previous customers is important. If your broker has someone else in the past has successfully contributed to it, and that person is willing to talk to him, speaks volumes. You can gage the level of success of your broker has spoken to previous customers and see how well they work, have with the broker. Then have a look at the level of advice provided by your broker is willing to give you. Sure, you make your own decisions and never take someone else's word for everything, but it is good to have knowledge of working with and advice from an experienced broker the most important information convenience factor is also powerless inches. If you live in California, Ohio and then a broker may not be the best choice. But in the age of the Internet, that this factor has become less relevant. By fax and e-mail where you live and your broker has become less important.
The degree of flexibility is offered important. The edge is to use, your money will be used. The broker offers a margin of 50 to one is more valuable than one that you a 20th And of course the speed. Is your broker quick? Has he responded to telephone calls and emails quickly? If so, perhaps you can use it to work.
Your broker BA trusted advisor and someone you can work with the future in order to select the report carefully. Ask friends and acquaintances who are actively used in Forex trading broker that they and how they met. It is quite possible that you get a recommendation from a friend or acquaintance whom you trust and win a good Forex brokers that way.
Another great way to find a Forex broker is to go online. There are message boards, chat rooms and e-mail groups by portals such as Yahoo, Google and MSN, which contain a wealth of information. Setting one of these online communities and seek advice from others is how many people have found their brokers. If a broker has several customers in an online community who are happy with what he has done for them, so this is a good indication that you are happy with him be. Enjoy the many people who participate via the Internet and on some of these online communities. Ask questions and get to probably a lot from the experience that other people had. You will find subscribe, journals, magazines and online magazines. Read everything about the Forex Trading, before he in them. Are you an intelligent informed consumer and merchant.
Finding a good Forex broker is a work in itself. When visiting with a Forex broker you essentially a job interview to determine whether this is the broker to manage your finances, be as thorough. Ask lots of questions. Ask for references. Do not be shy. Also check with others in the office of the agent and see if we rely on them to your dealer if you want to replace not available. And, if the broker is willing to use a demo account to get a little exercise, take before you actually make an investment offer. If the broker is able to do this and encourage you, it means that the broker will provide customers educated and do not just easy money. You see, what kind of training and supervision of brokers willing to offer. A good agent to offer to answer any questions and help you in the learning process.
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