Sunday, December 13, 2009


Forex trading is buying and selling the foreign currencies of different countries. It has a similarity with stock trading in that the foreign currencies behave like shares of the currency institutions of the countries. Like stock prices, these also move up and down with time-dependent volatility.


It is possible to buy a currency low, buy long and sell short another high currency. It needs meticulous pursuit of the exchange rates of currencies you want to trade. One needs to keep up a continuous scrutiny of the trajectory every particular currency vis-à-vis the other currencies, pair-wise.


Forex online trading is a multy million Dollar business now day, joining one the forex broker is as easy as 1 2 3. Million of people everyday invest their money for a dream of getting rich quickly. Well I guesse they will just end up to be an easy pray for these online brokers. Many of these investor are as eager to immediately get rich in order to solve their money condition in this world wide recession period.



The chance of winning a trade is 50/50 win and loose. But without market knowledges a trade session will end up loosing by 20-30/80-70 percent advantages to the broker. So what are the tool to increase our odd of winning a trading session. One must have the patiens, convidence, fundamental knowledge and technical analysis knowledge. Without either one of the mention factors, an investor will end up giving charity to the forex


It often has leverage enough to induce highly profitable arbitrage and hedging. Each internationally accepted currency has a market and the Forex market is the superset of all these markets taken together. Traders make their own basket or inventory of Forex and trade according to their anticipation of movements.

For example


the primary Forex statistics for the euro in relation to the German mark prior to 1999 reveals a lot of interesting features and profit potential of dollar or German Mark in relation the euro.
From the evidence it appears somewhat surprisingly that the euro lost ground against the US dollar in Forex spot trading, and in quite a few dimensions did not match the international transaction role of the German mark.


The euro changed the structure of the Forex market and increased market transparency through currency elimination. This exposed the dealers to higher inventory risks as their respective inventory imbalances became exposed easily to other dealers.
It takes time not days but years to matured a trading technic. Loosing a trade must become a lesson in order to make strategies for future trading session. One must psychologically sound, because once a trade is launched there is no turning back and the blood can be felt rushing through every part of the vains. But with a sound knowledge of the current forex situation, this all are worthed.



So what is the first basic knowledge before entering a trading session? Well the answer is simple, one must know which currency is the stongest and which is the weakest. That currencies pair is the best to be traded upon. Suppose Euro strenght is 4% and the Aussie $ is at the bottom of -3%, the pair EURAUD is the best to be traded upon. With the strenght condition 4% vs -3% it is clear that the trading session is a bull session or all the time going up. Suppose the USD is 3% strenght and EUR is 2% strenght the direction of the trade will be a slow side way but bearish market (not worth to trade upon). Slowness will become a boomerang and with out money management, one will enter the market with invesment exceding the supposely standard value (will be discussed later).
With the knowledge of currencies strenght one must cross check those numbers with the fundamental issues, such as economic calendar, change of interest rates, wars, etc. All which effected the money market.



Then again cross check those numbers with technical analysis, such as Elliot wave (In which wave number 1,2,3,4, 5,a,b,c) and is very important. If the session is in a rebound then check the session chart with Fibonacci Retracement line percentage. These 2 important technics Elliot Wave count and Fibonacci Retracement percentage is the key not just for forex trading but also others such as index, commodity, etc.
Understanding technical indicators such as Laguerre, MACD, ADX, Moving Average (MA), SAR, etc is a great advantage. These indicators show, the best time to enter and exit the market.
Joining a forex forum can also be a good way to winning a trading session.
When all infos have been gathered, one will become technically and psychologically sound to enter the market with ease and ends up winning. So the odd increases to 60-70/40-30 percentage with a winning advantage to the trader. Sustaining the winning odd of 60% above is a good way of trading.
One more thing before ending this article, is knowing a money management. Meaning how much money one spend to be traded upon. The best value is below 10% of your capital. On entering aposition, safety measures must also be taken to safe guard the investment. The use of automatic stoploss and take profit tool are the most important
safety measure tools on guarding the investment.Well I guesse those the things, that I know after some years of trading. Good luck and have asafe trade.





The increased inventory costs were recovered by the dealers in the euro markets through higher spreads. This made the euro a less attractive transaction medium than the German mark. This shows how trading in Forex involves both risk and profit potentials.

Earlier, the fore market was the trading ground of millionaires and billionaires only. Now with the introduction of online Forex trading, the average person is able to create amazingly large amounts of wealth from safe online investments in foreign currencies. Online forex trading is nothing but Forex trading transacted through internet links and email through a competent broker.

No technical know how, big “risk”, or large investment, hard work is needed. Online forex trading investment lets you use your dollar to control an investment two hundred times as high, $1 to control an investment worth $200, $1000 to control $200,000 and so on and on worth of investment.

Through online forex trading, you are now able to invest your money to fetch more money for you like the millionaires and billionaires, instead of you laboring hard for your money.

can help you save a lot of time and money. Here are some of the most valuable tips one can get:





• Know Yourself: Before executing a particular trade, define your risk tolerance and capital allocation for that trade. While selecting a trading style, ensure that your own financial objectives are met and risk tolerance levels are not exceeded.

• Plan and Stick to It: Once you have decided your financial goals, define a timeframe and make a working plan for your forex trading career. Ensure that you have enough time to practice with a demo account before executing actual trades. Decide the amount of time you want to spend trading and whether you want to turn forex trading into a career. Once you have designed the plan, stick to it to determine whether your trading strategies are working.
• Determine the invesment Amount: One of the most forex trading tips is to start with a small amount of money. You should gradually increase the investment capital as you start making profits. It is better not to pump more and more money in the initial stages of trading.

• Restrain Emotions: Although traders might find it difficult to implement, they must refrain from letting excitement, euphoria, greed or panic affect their trading decisions. Emotions running lose is one of the reasons beginners are advised to trade with small amounts. Low emotional intensity and a logical approach are the best ways to conduct forex trading.

• Choose The Right Broker: Ensure that your broker can help you meet your investment objectives. You can get a lot of information about a broker by checking his client profile and customer testimonials. You can read online forex broker reviews to get a broker who would suit your trading strategies and style. Your broker should also offer you some great forex traing tips void adding to a losing position: Ignorance of this principle has been a cause for several disasters in the forex market history. Since one can never definitively say when the market trends will turn , adding to a losing position can raise your risk profile.












Online Forex trading is real fun. It is often the most striking and profitable internet investing opportunity because you can do it from your PC or connected laptop from any place in any country in the world.
You don’t need any stocks or big inventory in this trading. In online Forex trading, all you do is, just open an account with one of the brokers with as little as $300 or so. Of course, the larger your initial investment, the faster you stand to gain wealth.

Then you simply have to follow simple instructions to purchase and sell the currencies. You buy when the price of the currency is low. Within a few seconds or minutes, the price may go up, and you may sell it and make a profit. This way, by just buying, selling and trading these foreign currencies for about 3 or 4 hrs in a day, you can easily make $500-$1000!

Forex trading is easy money. Especially with the introduction of online trading, it is virtually a continuous upward money spiral for any alert person with a competent

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