What are Your Options Regarding Forex Options Brokers?

By John Nobile

Forex option brokers can generally be divided into two separate categories: forex brokers who offer online forex option trading platforms and forex brokers who only broker forex option trading via telephone trades placed through a dealing/brokerage desk. A few forex option brokers offer both online forex option trading as well a dealing/brokerage desk for investors who prefer to place orders through a live forex option broker.

The trading account minimums required by different forex option brokers vary from a few thousand dollars to over fifty thousand dollars. Also, forex option brokers may require investors to trade forex options contracts having minimum notional values (contract sizes) up to $500,000. Last, but not least, certain types of forex option contracts can be entered into and exited at any time while other types of forex option contracts lock you in until expiration or settlement. Depending on the type of forex option contract you enter into, you might get stuck the wrong way with an option contract that you can not trade out of. Before trading, investors should inquire with their forex option brokers about initial trading account minimums, required contract size minimums and contract liquidity.

There are a number of different forex option trading products offered to investors by forex option brokers. We believe it is extremely important for investors to understand the distinctly different risk characteristics of each of the forex option trading products mentioned below that are offered by firms that broker forex options.

Plain Vanilla Forex Options Broker - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic option contracts that are traded through an over-the-counter (OTC) forex dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or forex put option contract.

There are only a few forex option broker/dealers who offer plain vanilla forex options online with real-time streaming quotes 24 hours a day. Most forex option brokers and banks only broker forex options via telephone. Vanilla forex options for major currencies have good liquidity and you can easily enter the market long or short, or exit the market any time day or night.

Vanilla forex option contracts can be used in combination with each other and/or with spot forex contracts to form a basic strategy such as writing a covered call, or much more complex forex trading strategies such as butterflies, strangles, ratio spreads, synthetics, etc. Also, plain vanilla options are often the basis of forex option trading strategies known as exotic options.

Exotic Forex Options Broker - First, it is important to note that there a couple of different forex definitions for “exotic” and we don’t want anyone getting confused. The first definition of a forex “exotic” refers to any individual currency that is less broadly traded than the major currencies. The second forex definition for “exotic” is the one we refer to on this website - a forex option contract (trading strategy) that is a derivative of a standard vanilla forex option contract.

To understand what makes an exotic forex option “exotic,” you must first understand what makes a forex option “non-vanilla.” Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific’s investor’s needs by an exotic forex options broker, are generally not very liquid, if at all.

Exotic forex options are generally traded by commercial and institutional investors rather than retail forex traders, so we won’t spend too much time covering exotic forex options brokers. Examples of exotic forex options would include Asian options (average price options or “APO’s”), barrier options (payout depends on whether or not the underlying reaches a certain price level or not), baskets (payout depends on more than one currency or a “basket” of currencies), binary options (the payout is cash-or-nothing if underlying does not reach strike price), lookback options (payout is based on maximum or minimum price reached during life of the contract), compound options (options on options with multiple strikes and exercise dates), spread options, chooser options, packages and so on. Exotic options can be tailored to a specific trader’s needs, therefore, exotic options contract types change and evolve over time to suit those ever-changing needs.

Since exotic forex options contracts are usually specifically tailored to an individual investor, most of the exotic options business in transacted over the telephone through forex option brokers. There are, however, a handful of forex option brokers who offer “if touched” forex options or “single payment” forex options contracts online whereby an investor can specify an amount he or she is willing to risk in exchange for a specified payout amount if the underlying price reaches a certain strike price (price level). These transactions offered by legitimate online forex brokers can be considered a type of “exotic” option. However, we have noticed that the premiums charged for these types of contracts can be higher than plain vanilla option contracts with similar strike prices and you can not sell out of the option position once you have purchased this type of option - you can only attempt to offset the position with a separate risk management strategy. As a trade-off for getting to choose the dollar amount you want to risk and the payout you wish to receive, you pay a premium and sacrifice liquidity. We would encourage investors to compare premiums before investing in these kinds of options and also make sure the brokerage firm is reputable.

Again, it is fairly easy and liquid to enter into an exotic forex option contract but it is important to note that depending on the type of exotic option contract, there may be little to no liquidity at all if you wanted to exit the position.

Firms Offering Forex Option “Betting” - A number of new firms have popped up over the last year offering forex “betting.” Though some may be legitimate, a number of these firms are either off-shore entities or located in some other remote location. We generally do not consider these to be forex brokerage firms. Many do not appear to be regulated by any government agency and we strongly suggest investors perform due diligence before investing with any forex betting firms. Invest at your own risk with these firms.

John Nobile - Senior Account Executive [http://www.cfosfx.com ]CFOS/FX - Online Forex Spot and Options Brokerage

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Forex Trading Online - 7 Reasons Why You Should!

By Keith Thompson

Forex trading online is a fast way to use your investment
capital to it’s fullest. The Forex markets offer distinct
advantages to the small and large traders alike, making
Forex currency trading in many ways preferable to other
markets such as stocks, options or traditional futures. Here
are seven reasons why you’ll want to look into Forex Trading
online.

1 - Forex is the largest market.

Forex trading volume of more than 1.9 billion, more than 3
times larger than the equities market and more than 5 times
bigger than futures, give Forex traders nearly unlimited
liquidity and flexibility.

2 - Forex never sleeps!

You can execute forex trading online 24/7, from 7AM New
Zealand time on Monday morning, to 5PM New York time on
Friday evening. No waiting for markets to open: they’re open
all night! This makes Forex trading online a very attractive
component that fits easily into your day (or night!)

3 - No Bulls or Bears!

Because Forex trading online involves the buying of one
currency while simultaneously selling another, you have an
equal opportunity for profit no matter which direction the
currency is headed. Another advantage is that there are only
around 14 pairs of currencies to trade, as opposed to many
thousands of stocks, options and futures.

4 - Forex Trading online offers great leverage!

You can make the most of your investment resources with
Forex trading online. Some brokers offer 200:1 margin ratios
in your trading accounts. Mini-FX accounts, which can
typically be opened with only $200-300, offer 0.5% margin,
meaning that $50 in trading capital can control a 10,000
unit currency position. This is why people are flocking to
Forex trading online as a way to highly leverage their
investments.

5 - Forex prices are predictable.

Currency prices, though volatile, tend to create and follow
trends, allowing the technically trained Forex trader to
spot and take advantage of many entry and exit points.

6 - Forex trading online is commission free!

That’s right! No commissions, no exchange fees or any other
hidden fees. This is a very transparent market, and you’ll
find it very easy to research the currencies and the
countries involved. Forex brokers make a small percentage of
the bid/ask spread, and that’s it. No longer any need to
compute commissions and fees when executing a trade.

7 - Forex trading online is instant!

The FX market is astoundingly fast! Your orders are
executed, filled and confirmed usually within 1-2 seconds.
Since this is all done electronically with no humans
involved, there is little to slow it down!

Forex trading online can get you where you want to go
quicker and more profitably than any other form of trading.
Check it out and see what Forex trading online can do for
you!

Keith Thompson is the webmaster of Forex Trading
Today; a blog focusing on the latest Forex news and
resources.

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Sending Signals for Trading in Forex

By Gary Berg

Forex signals are sent by a forex firm to their subscribers in order to buy and sell currencies. These signals are called entry and exit signals for the forex dealers. The firms, which send this forex signal, do so after tedious and meticulous research and analysis into the currencies that their dealers are trading in. For example a firm may send the entry and exit signals at designated time frames in real time. These will remain valid for a short period only after which they are going to be different.

Let’s say that there is a forex trading company say Acme Forex traders who send entry and exit signals to their clients in the following way

The first signal is provided to the trader at 08:30, and this signal is going to remain actual till 12.30
The trader will receive the second signal at 12.30, which would remain actual till 16.30.
The last signal would be sent to the trader at 16.30.

The transactions are given according to GMT. Please adjust for local time changes. The transaction shall be calculated till the signal is actual. The charges would be $300 per month per trader.

Forex dealers and experts provide forex-trading information and data to both institutional clients and individual investors and provide these kind of signals. Investors like to subscribe to credit worthy forex dealers / companies since their information and data would be genuine and more accurate. In fact many forex dealers would kill to get information before the rest of the market gets the same information. As forex dealing is a very competitive business.

These signals or forex indications are given to the forex dealers through the forex trading platform or hub. The signals or forex indicators are the specific entry and exit strategies. Therefore when you enter a currency trade buying currencies at lower price and then selling at higher price, you book a profit. currency pair. For example the forex dealer is trading in GBP/USD. The rate is for GBP/USD is .9800. If you expect that Euro is likely to go up in the future you would buy the Euros today to sell them off at a later date thereby booking a profit. If you expect the dollars to appreciate, then you would buy the dollars selling them off at a later date to book profits.

Most forex dealers will get the information via email or straight on their computer screens. It is then up to the forex dealers to decide whether they want to sell / buy / hold the currencies till further information is given to them.

Those who contribute in giving the information on currency dealing are hedge managers, foreign exchange dealers located in the major financial markets of the world, professional stock brokers, finance managers and a host of other finance professionals. They make it their business to collect, analyze and disseminate information in such a way, that can be used by forex dealers to buy / sell / hold the forex.

Therefore the companies take extreme care to send the forex signals for the currency dealers.

For the most updated information, articles, and news related to the Forex Market. Visit http://www.forex-made-easy.biz

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Forex Trading With Pivot Points

By Eddie Sieberhagen

Pivot Points are calculated on the previous days market move and trades are entered when the market hits a support or resistance line of the pivot point providing your OB/OS indicator (Overbrought/Oversold indicator) is in agreement. All the support and resistance lines are put in place 1st thing in the morning - Then you wait for the market to hit those entry Points.

Contrary to what some might believe, trading Forex with Pivot Points are probably the most popular method used in trading the financial markets today. Long before the invention of computers this was the method used by the traders in the pits to determine hidden support and resistance levels.

The Pivot Point is still used by experienced floor traders and technical analysts alike. The major advantage now is that we now have computers and can calculate our points well in advance. Many technical trading charting packages can calculate them for you automatically, thus enhancing the use of Pivot Points in your day trading.

Whilst there is a lot more to Pivot Point Trading in Forex Trading than we will be mentioned in this article, the purpose of this exercise is to introduce you to the concept of trading Forex with Pivot Points.

Remember the market can only go up, down, or sideways. It is like an elastic band that has been stretched, sooner or later it will rebound to an equilibrium point where the market is in balance, and then stretch the opposite way only to rebound and reach another balance point. Then some fundamental announcement or happening will drive the market in a new direction and so on day after day. Pivot Points can aid us in determining how far that elastic can stretch before it rebounds.

Whilst there are many time frames that can be used for calculating Pivots, for the purpose of this exercise lets concentrate on the daily time frame (i.e.: 24hr) Pivot Points are calculated using the previous days, Open, High, Low, and Close figures. There are many Pivot Point calculators available on the web so you don’t have to waste your time doing the calculations manually. Also bear in mind the longer the time frame you are using the longer you must be prepared to stay in the market or wait for the next entry point.

Pivot points unlike many other indicators are an objective tool. Because they are mathematically calculated, there can only be one answer for a specific time period.

Many subjective indicators like Fibonacci retracements, (and I am a great fib fan) Elliot waves etc. can have different people trading in different directions at the same time due to individual interpretation..

The PP’s can help you to predict the next day’s highs and lows in advance. PP’s can give you anything from 4 to 8 support and resistance levels. However you still have to be able to identify the trend to be a successful PP trader. Pivot Points also work best in a trending market.

Entry and exit points

Pivot Points can give you exact entry and exit points, rather than enter markets that are in the middle of a run, or about to turn the other way. Here is where we use other indicators to assist on the entry or exit. If the market stalls at a Pivot Point level, and you have an overbought or oversold indicator that will be a good time to get in or out. Or if a Fibonacci level coincides with a Pivot Point level it can make a strong case to enter or exit a trade. If the market is bullish and your favourite indicator is not near overbought, when it hits the first resistance level then you probably have a good case to stay in the market and make your profit target the next Pivot Point resistance line. The breakout above the 1st resistance level can then become your new stop or stop reverse.

Obviously the reverse is true of the support level as well. By combining the Pivot Points with your favourite indicator you can develop your own trading system that no one else uses.

Trading for the day will probably remain between the 1st support (S1) and resistance (R1) levels as the floor traders make their markets. Once one of these levels is penetrated other traders will be attracted to the market, and should the second level be breached, the longer term traders are attracted to the market.

Knowledge of where the floor traders are expecting support or resistance can be a distinct advantage especially when there is no outside influence in the market. Provided no significant market news has occurred between yesterdays close and today’s opening, the local floor traders and market makers tend to move the market between the Pivot Point (P) and the first support line (S1) and resistance (R1) If one of these levels is breached then expect the market to test the next levels (S2) and ( S3) or (R2) and (R3)

Whilst there are many other aspects to Pivot Point trading why not try this simple method first and see if you can develop your own strategy by using your existing trading technique’s in conjunction with the Pivot Points.

Free Forex Trading Information Online [http://www.fxhometrader.co.za/]Trade Forex Online - The Forex Guide with free forex tips and advise for the beginner FX trader. For the latest Forex insight visit our blog at [http://fxhometrader.blogspot.com/]Forex Trading News

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Learn Forex Trading, Forex Strategies, Forex Software, Forex Investment

By Jhon Ericsson

What is FOREX (Foreign Exchange)?

Forex (Foreign Exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.

Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. The following notation is used for these currency pairs: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. You may consider them as “blue chips” of the FOREX market. No dividends are paid on currencies. The investment profits come from well known “buy low - sell high”.

If you think one currency will appreciate against another, you may exchange that second currency for the first one and stay in it. In case everything goes as planned, some time later you may make the opposite deal - exchange this first currency back for that other - and collect profits.

Transactions on the FOREX market are fulfilled by dealers at major banks or FOREX brokerage companies. FOREX is the world wide market, so when you are sleeping in the North America some dealers in Europe are trading currencies with their Japanese counterparties. Therefore the FOREX market is active 24 hours a day and dealers at major institutions are working in three shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution.

Price movements on the FOREX market are very smooth and without gaps that you face almost every morning on the stock market. The daily turnover on the FOREX market is about $1.2 trillion, so investor can enter and exit position without problems. The fact is that the FOREX market never stops, even on the day of September-11, 2001 you could obtain two-side quotes on currencies.

The currency foreign exchange (http://www.123forex.blogspot.com) market is the largest and oldest financial market in the world. It is also called the foreign exchange market, or “FOREX” or “FX” market for short. It is the biggest and most liquid market in the world, and it is traded mainly through the 24 hour-a-day inter-bank currency market - the primary market for currencies. The forex market is a cash (or “spot”) inter-bank market. By comparison, the currency futures market is only one per cent as big.

Unlike the futures and stock markets, trading of currencies is not centralized on an exchange. Forex literally follows the sun around the world. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S.

In the past, the forex inter-bank market was not available to small speculators due to the large minimum transaction sizes and often-stringent financial requirements. Banks, major currency dealers and the occasional huge speculator used to be the principal dealers. Only they were able to take advantage of the currency market’s fantastic liquidity and strong trending nature of many of the world’s primary currency exchange rates.

Today, foreign exchange market maker brokers such as FX Solutions are able to break down the larger sized inter-bank units, and offer small traders the opportunity to buy or sell any number of these smaller units (lots).

These brokers give virtually any size trader, including individual speculators or smaller companies, the option to trade the same rates and price movements as the large players who once dominated the market. Market makers quote buying and selling rates for currencies, and they profit on the difference between their buying and selling rates

Why Trading FOREX?

The cash/spot FOREX markets possess certain unique attributes that offer unmatched potential for profitable trading in any market condition or any stage of the business cycle:

A 24-hour market: A trader may take advantage of all profitable market conditions at any time; no waiting for the ‘opening bell’.

Highest liquidity: The FOREX market with an average trading volume of over $1.5 trillion per day is the most liquid market in the world. That means that a trader can enter or exit the market at will in almost any market condition minimal execution barriers or risk and no daily trading limit.

High leverage: A leverage ratio of up to 400 is typical compared to a leverage ratio of 2 (50% margin requirement) in equity markets. Of course, this makes trading in the cash/spot forex market a double-edged sword the high leverage makes the risk of the down side loss much greater in the same way that it makes the profit potential on the upside much more attractive.

Low transaction cost: The retail transaction cost (the bid/ask spread) is typically less than 0.1% (10 pips or points) under normal market conditions. At larger dealers, the spread could be less than 5 pips, and may widen considerably in fast moving markets.

Always a bull market: A trade in the FOREX market involves selling or buying one currency against another. Thus, a bull market or a bear market for a currency is defined in terms of the outlook for its relative value against other currencies. If the outlook is positive, we have a bull market in which a trader profits by buying the currency against other currencies. Conversely, if the outlook is pessimistic, we have a bull market for other currencies and a trader profits by selling the currency against other currencies. In either case, there is always a bull market trading opportunity for a trader.

Inter-bank market: The backbone of the FOREX market consists of a global network of dealers (mainly major commercial banks) that communicate and trade with one another and with their clients through electronic networks and telephones. There are no organized exchanges to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets. The FOREX market operates in a manner similar to the way the NASDAQ market in the United States operates, and thus it is also referred to as an ‘over the counter’ or OTC market.

No one can corner the market: The FOREX market is so vast and has so many participants that no single entity, even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short-lived, and thus central banks are becoming less and less inclined to intervene to manipulate market prices.

Unregulated: The FOREX market is generally regarded as an unregulated market although the operations of major dealers, such as commercial banks in money centers, are regulated under the banking laws. The conduct and operation of retail FOREX brokerages are not regulated under any laws or regulations specific to the FOREX market, and in fact many of such establishments in the United States do not even report to the Internal Revenue Service (IRS). The currency futures and options that are traded on exchanges such as Chicago Mercantile Exchange (CME) are regulated in the way other exchange-traded derivatives are regulated.

For more information about forex, visit [http://www.123forex.blogspot.com/]Learn Forex Trading

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Avoiding Forex-Related Frauds and Scams

By Marquez Comelab

A lot of people have been

Currency Trading is Not the Monopoly of the Nerds and the Geeks

By Sara Chambers

The general perception is that any and every person who is involved in the business of trading of currency or foreign exchange is a person who has a super high IQ. To hear words and phrases like liquidity ratio, central bank intervention and inflationary demand makes us feel as if we are back in the boring and inherently avoidable lecture on economics that we were forced to attend in our college.

However, all these preconceived notions apart, forex or currency trading is not the domain for the super intelligent alone.

There is no doubt that you need brains to get involved in forex trading. Then, I bet you cannot name a single sphere of human activity that does not need the application of one

The Truth About Trading the Forex

By Sue Edwards

I have been trading the Foreign Exchange Currency Market (Forex) live for a few months as of this writing. I have to say it is VERY exciting!

I was beating my brains out trying to trade the Stock Market. Over 40 thousand stocks to watch (way too many). I tried Futures trading. That was just plain wacky. I tried Options Trading. Many more losses than gains. Then I found out about the FOREX!

At first, I was a skeptic. I didn

Forex the Future Investment

By Mike Pachuta

There are many many advantages over the various other
ways of investing. First of all it is a 24 hr market,
except for weekends of course. You have the US market then
the European and then the Asian. One of the great times to
trade is during the over lapping periods. The USA and
European overlap between 5am & 9am eastern and the Euro &
Asian between 11pm & 1am eastern. Usually the busiest time
and best to trade.

The is also the risk factor for the accounts. With
futures and options you can get margin calls that can wipe
you out. If you get caught in a bad trade not only do you
lose the money in the account but you may have to come up
with a lot more from your pocket. It can be very risking.
But not in Forex. Worst case scenario you could lose whats
in you account. But you would have to do something really stupid. Like making a big trade on a Fundamental day and
leave it alone. If market takes a bad move and you weren’t
there. OOOPS. But That wouldn’t happen with a smart
trader.

Then there are the demo accounts which is an account
where you can trade using all the right things,
platform, charts, and information. But you are using play
money, or what we call paper trading too.

Plus with Forex you have a mini account. Instead of
needing thousands of dollars to get into it. You can open
an account with as little as $300.00. Now of course you
will be trading at 1 tenth of a trade. IN other words you
controling 10,000 instead of 100,000.00 These are call
lots. Which also means you will only risk 1 tenth too!

So if you would love to learn to do investing and not
have near the risk you really need to take a closer look at
Forex trading.

Mike Pachuta

Forex trading is exciting

Free trading training. http://www.SUCCESSFUL-FOREX.COM/

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Electronic Currency Trading: Survival of the Fittest?

By Charles Cruz

Did you know that with E-currency Exchange it’s completely possible to double your investment in the first month.

In reality this is possible for most people because E-currency Investing is a linear system. This means that you and I are both following the same path because the dxinone system allows many investors to gain revenue from it’s system. The main difference that will make you or break you in will be if you make the decision to get top education for yourself.

Like in any other area, some people don’t realize that learning from the top people in that area will teach you much faster and effective than any other area you may find. The same example applies to you if you’re getting into Electronic Currency Trading. Even if you don’t know nothing about it right now, learning from a pro will teach you stuff in ways that not many people can.

Most people haven’t catched up that the principle of accelerated learning is in learning from others, and that’s what keeps them from succeeding.

What happens when you learn Electronic Currency Exchanging directly from a pro?

When you do this your knowledge of the system will grow and you’ll have results that may seem outstanding but it’s simply because you’re following a process that works.

The most important aspect that changes is that you now learn strategies that generate more money. Once you learn and follow this strategies your bank account statements start showing it and you’ll realize it’s something you can do. Your life becomes more comfortable, You’ll have more free time on your hands and You’ll be able to go out to more fancy restaurants.

It’s also very likely you’re asking yourself how is it possible to generate such great returns with E-currency Exchange ?

This is the concept behind E-currency Trading : Every day, a lot of money is being made through transactions of money on the internet. This is what we call “internet money”, which requires to have a physical backup of every cent traded. Since this happens daily, the same day you decide to provide the financial backup for the “internet cash”, that same day you’ll start to make money with it.

If you’re serious about making an income from the dxinone system, we recommend finding the top in this area and learning from them. One of the best ways to do this is by getting a training program from a Electronic Currency Exchange professional.

What are the best ways to learn about e-currency exchange, visit my site ( http://www.electronic-currency-exchange.com) for the inside scoop on you can learn more about [http://www.electronic-currency-exchange.com/e-currency-invest/The-E-currency-Exchange-Program--Better-than-FOREX-and-Wall-Street.htm]the E-Currency Exchange Program

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Five Forex Trading Tips You MUST Know

By Tony Chan

Jumping into Forex trading with both feet? Here are five must-know tips on forex trading and mini forex to help you stay afloat in the Foreign Exchange currency market.

Know your forex trading market.

Educate yourself about the currencies that you trade. The more you know about the country whose currency you

Currency Trading Success using Technical Analysis

By Stephen Todd

Anyone can achieve currency-trading success

Currency Trading Seminars

By Ken Marlborough

A seminar is a workshop conducted with an intention of teaching the audience about a subject. Currency trading seminars are basically helps advise the traders or potential traders about the subject. Seminars could address any issue that affects the market.

The forex market is an attractive short-term trading option and, because of its low transaction costs and unmatched liquidity, more and more professional traders are turning to it. However, to understand the nitty-gritty of currency trading, one must attend currency trading seminars conducted by renowned companies like Refco Canada.

Currency trading USA conducts seminars and online courses for people who are either currency traders or keen on starting. The training sessions are tailored to meet the requirements of the customers, which would help them in understanding the nuances of the trade. For newcomers, they have courses designed that can take them step-by-step through the basics of currency trading, while people with experience are given training on trading strategies with live examples. Most of these courses focus on issues like what influences currency exchange rates, which currencies to trade for profit, essential trading rules, order executions, stop placements and much more.

Swiss Net Broker offers one-on-one technical analysis courses for people interested in methods of doing on currency trading. The courses are provided in the seminars organized in Geneva, Switzerland.

Currency trading is one of the quickest practices for earning money by investing small amounts, and these seminars aid in understanding the fluctuation of money in a better manner as well as providing the knowledge to reduce the risk associated with the trade. [http://www.e-OnlineCurrencyTrading.com]Online Currency Trading provides detailed information on Online Currency Trading, Foreign Currency Trading, Currency Day Trading, Currency Trading Seminars and more. Online Currency Trading is affiliated with [http://www.z-CurrencyTrading.com]Online Currency Trading.

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Energies Seasonal Trends

By Sacha Tarkovsky

Seasonal trends give traders an extra tool that can be used to pinpoint the high reward low risk trades.

There simple to understand and easy to use and can increase profit potential dramatically.Last week one of the best seasonal tendencies returned over 14%!

If you have never looked at them you need to - They are great profit tool for any trader

Forex Fortunes - Use The News

By Tim Grimsley

In my time as a trader, I have never seen the benefit of announcements as being that great for off-the-floor traders. Generally anything you hear in the news is old information in the trading game, because the floor traders have access to it before everyone else.

Often the traders on the floor have already established the correct positions, before the announcement is made. This puts the public trader at a disadvantage.

The forex market has come along and changed that, because there is no trading floor, so everyone receives the information at the same time. This creates an even playing field for everyone.

There are several announcements that are made each month, that forex traders can use to their advantage. Since everyone gets the info. at the same time, its like being on the floor yourself. Some of the announcements that are beneficial to traders, are unemployment, interest rates, inflation, GDP, and the consumer price index.

There are others, and you have to also consider announcements by other countries. Using these announcements can be very beneficial to the part-time trader.

Often part-time traders do not have time to study the markets, but they can take advantage of the reactions to these announcements if they know how. [http://shadow-trader.blogspot.com/]next

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Systems on Option Trading Explained

By Stu Pearson

Stock option trading has always given the traders additional work of not just predicting correctly the security

Access Forex Calculators and Tool

By Kenny Yong

If you are in need of a good foreign exchange calculators for you business, travel, and other needs, there are quite a few you can choose from. There are a slew of foreign exchange calculators to meet every need imaginable. The trick here is for you to be able to find the one the meets your need.

If you need to a quick and easy means to converting any currency to another here are a few foreign exchange calculators you may want to consider.

Shortlist Currency Calculators

The Funny Sort Of Traders In Forex Currency Trading

By Kevin Anderson

What is the very reason why people get into forex currency trading? The money, of course. They would not be in it for anything other than that. Although there are very few who are more interested in knowing how the foreign market and the system work. But few of them really. Forex currency trading can offer a lot of money if the trader knows how to play their cards right.

Foreign currency trading has become the best income-generating industry in the world today. It is quite understandable because people do not need years of education to get into one. Compared with other industries that require some years of expertise, traders only have to learn some basic points about foreign currency trading, online for that matter. With the many online web sites offering free trainings and instant education, it is no wonder that people can get into foreign currency trading without any hassle at all.

Many people get into foreign currency trading but not all become successful either.

Some of the factors affecting the foreign currency trading are those within the market itself. These are expected and traders should know them about them first-hand to be able to anticipate and plan the needed action to counter it.

Other reasons for not succeeding in the foreign currency trading is because of the traders themselves. lacking of discipline and poor money management to mention some. These are problems that could be prevented but was not given much attention to.

There are really no personification of the

Do I Need To Learn Forex Trading To Make Money?

By Mike Singh

Once you have decided to enter the Forex market, you must decide how you will go about starting to learn Forex trading. Indeed when you do begin to know more on Forex trading you have three different ways to go about it. You can either join an online, or even one that isn’t, Forex school, become an apprentice for a Forex trader or broker or go it alone and do it yourself. The last way to master Forex trading is probably not the best way, and indeed carries a lot of risk, especially for someone who is just beginning. This is because the Forex market is very volatile, which makes it even harder to learn Forex trading.

For someone just starting out, the first two ways mentioned are much safer. When you learn foreign exchange trading in these ways, you have the bonus of experienced instructors to benefit from. Especially with an apprenticeship the learning process can be had in real time. Learning like this can actually be the best way to learn Forex trading. This is because when you are able to actually see decisions and processes being made you can benefit more thoroughly then through the filtered and neat classroom experience. For someone who has just begun Forex trading there are three main things they need to know. The first main idea or concept to be learned is what is called the process.

The process of the Forex market has to do with the fact that it is the largest market on the entire globe and is operated twenty-four hours a day. The process also includes the fact that all of the business is carried out in real time with no boundaries. Also what needs to be known about the process involves the fact that the trader has the option in either dealing in his or her national currency or in a foreign one. Remember when you begin to learn Forex trading and this aspect of it that there are no barriers, no entry points and you really need to make sure that you thoroughly have an understanding of it before jumping in.

Another aspect when you begin Forex trading is to learn about mapping or charting. Someone who is just starting out should begin to learn how to use the charting software available in order to properly map the market and how it moves. This information gathered by the software will better enable a trader with what they need to know to make better decisions and therefore earn better profits. A trader in combination with instinct to make better overall decisions as well as calculating the best times to buy or sell can use the software involved with charting.

The last thing that needs to be a part of the process when you start to learn Forex trading is called trading psychology. This aspect includes a trader learning to deal with his or her losses and if they happen to have a lot of them in a short period of time they should stop for a while. Something else that is part of trading psychology is that the trader needs to make sure they are not letting themselves get carried away in making too many trades just because of good profits.

In the end you must decide which way is the best for you personally to learn foreign exchange trading. Although most people would say that the best way is to learn while trading. A hand on approach when it comes time for you to learn Forex trading seems to be the one with the best benefits.

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3 Surefire Ways To Maximize Your Profits For Minimal Outlay

By David Jenyns

Online stock trading can be the most profitable or most ‘cash sucking’ form of investing you can ever get involved in. It all depends on how experienced you are, and how you approach it.

After all, there’s the…

…absolutely positively essential ‘US$15K US$20K starting capital’; the ‘US$97 per month membership site fees’; the ‘US$997 holy grail trading system’; the ‘must attend’ ‘US$3,447 two-day trading seminar’; the ‘US$150 per month live stock price feed subscription’; the ‘exclusive limited edition US$40 per month ‘insider tips’ newsletter’; the ‘US$77 per month ultra-fantastic charting service with the bonus 3,000 previously unknown technical indicators tossed in’…etc…etc…etc…blah, blah, blah.

…Isn’t there?

Sadly, far too many first-time traders get sucked in by all the hyped up tips for online stock trading spun by money-grabbing internet marketers masquerading as expert online stock traders. These greed merchants cunningly relieve the unwitting newbies of every cent they own… and then justify it by saying that it’s a ’small price to pay for the knowledge that’ll make them rich!’

If you’re a first-time online stock trader and you want to avoid falling into the same trap as so many before you, then this article on ‘tips for online stock trading’ is written for you. Please read on…

Here are three tips for online stock trading that’ll save you over US$1,500 a year!

1) Find an online stock broker who doesn’t require a minimum deposit. If you’re a beginner at online stock trading, or you’re on a tight budget, there’s no need to set up a brokerage account with ‘thousands of dollars’ in starting capital.

Personally, I opened my first online stock trading account with just a hundred dollars! I decided that ‘if I got it wrong a few times…too bad. It was my learning curve and the downside risk was no more than the cost of a good night out!’

I choose Sharebuilder (http://www.sharebuilder.com) for my online stock trading debut. Unlike most other trading firms, these folk allow you to nominate a DOLLAR AMOUNT as opposed to a SHARE AMOUNT when placing your order. For example, I opted to invest US$100 in high technology stock, Imation Corporation (Stock Symbol = IMC). I paid $37 a share and ended up with 2.594 shares (i.e. $37 x 2.594 = $96 + $4 brokerage = $100). The stock climbed to over US$51 a share before easing back to the low $40’s. I took my profits at $49 a share and banked a 27% gain!

2) DON’T PAY for online stock trading information when you can get it for FREE.
Why pay hundreds of dollars a year for so-called hot stock information when you can get it for free from either MSN.com or Big Charts.com? These two sites have so much online stock trading info and advice crammed into them you could spend a lifetime just reading it all!

For MSN.com, go to: http://moneycentral.msn.com/investor/home.asp and you’ll discover more tips for online stock trading than you’ll know what to do with! There are more than one hundred links per page covering every conceivable aspect of online stock trading. Market reports, IPO’s, currency exchange rates, portfolio tracking facilities, EFT’s, brokers, research tools, stock ratings, quotes, charts, company earnings, open streaming stock ticker, SEC filings, earnings estimates, analysts ratings, expert stock picks… the list is endless.

For BigCharts.com, go to: http://bigcharts.marketwatch.com and you’ll find a whole new bunch of tips for online stock trading. While the site itself is not as large as MSN.com, the depth of free technical analysis and charting tools is, in my opinion, superior. The many articles and stock reports hosted on this site are also of a higher calibre. However BOTH these sites are invaluable sources of trading information and considering they provide free access to all the data you’ll ever need, bookmark them NOW!!!

3) Profit from ‘back door’ companies. Instead of buying highly priced shares in mainstream companies whenever such companies announce a pending ‘major product roll-out’, why not do what the real professional traders do…’look for other, much lower priced stocks (such as raw component manufacturers and / or suppliers to the main company) which stand to benefit just as greatly from the impending product launch. Make a shortlist of these peripheral companies, and then buy shares in the one/s that offer the greatest potential leverage to the upside.

An example of this could be finding a small but publicly listed manufacturer that supplies components to a gaming console giant like Nintendo. While Nintendo doesn’t offer much leverage at almost US$180 per share, the small peripheral supplier might be trading for just a few pennies on the OTC or NASDAQ. If the launch of Nintendo’s ‘Wii’ later this year goes as well as some analysts expect it to, the associated OTC and NASDAQ stocks could literally ‘go through the roof!’

Conclusion:

Despite what you may have been led to believe, it really is possible to begin and maintain an online stock trading career without having to use up all your capital resources on unnecessary and / or highly over-priced trading resources. Even though this article only featured ‘three’ powerful tips for online stock trading, it won’t take too much effort on your part to unearth an entire library of them. Good luck and good trading.

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An Introduction To FX Currency Trading

By Ryan Lee

FX currency trading may be a new concept to some, but, there are plenty of people who find it a lucrative and worthwhile endeavor. Forex trading is done on the Global Foreign Exchange Market (often abbreviated to “FX”).

FX currency trading is the practice of buying and selling foreign currencies to turn a profit, and there are many different benefits and advantages to this kind of trading. Perhaps your portfolio is largely filled with stocks, mutual funds and bonds, but not currencies, in which case expanding to include foreign currencies is a great way to have your money in different aspects of the financial market.

Understanding FX Currency Trading

FX currency trading is done on the Global Foreign Exchange and is a 24 hour operation. The trading day begins in Sydney when their exchange opens for the day, and from there it moves around the globe as different markets throughout the world begin to open. The last major market to open is New York.

Yes, there are many different currencies throughout the world, but the majority of Forex trading is done with what are known as “the majors”. These are the major currencies of the world that are relatively economically stable, thus making them a good bet for FX currency trading. They include the Euro, British Pound, American, Canadian, and Australian Dollars, the Swiss Franc, and Japanese Yen.

FX currency trading may seem like an odd concept to some, so why would you want to buy and sell currencies? We are used to using currency to purchase material items so maybe buying currency seems a little strange.

Well, consider this - put simply, you stand a good chance of turning a profit when trading currencies. For example, if you see that the Euro price dropped considerably, that would be a good time to purchase some Euros. The next day, if it rises again, you can sell it and turn a profit on the difference.

Forex Trading Online

You can use the internet to do your FX currency trading, and there are plenty of software programs available that give you alerts concerning prices, market condition, whether you should buy or sell, etc. They also allow you instant access into the world of the Foreign Exchange market by being able to read current data.

Things to Consider

If you’ve decided to start FX currency trading, keep in mind that a good place to begin is by doing some research. Learn as much as possible in an effort to minimize your learning curve. Learning curves can be expensive, and one wrong decision can cost you a lot of money. Yes, Forex trading can be lucrative, but it can also be expensive, and the effects of poor judgment can be minimized if you simply allow yourself the proper time to understand the process.

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Forex Broker Comparisons

By Eddie Tobey

Forex brokers are companies or institutions that offer a range of forex services like management of forex accounts and execution of orders. A trader needs to be very careful while choosing a broker.

There are many websites that help new traders compare and choose a broker that can provide the services they need. There are many factors depending on how one compares the broker’s criteria for points like what is the minimum deposit required, maximum leverage, spread of major currencies, commissions charged, number of pairs offered, and are mini accounts available?

Minimum deposits required varies from company to company, and can range anywhere from $100 to $10,000. Leverage is the ratio of the money present in the account of the trader to the amount that opened the account. The allowed leverage makes a big difference while trading in the real market. The difference between sell quote and buy quote is known as spread. Sell quote is the price at which the base currency can be sold, and the buy quote is the price at which it can be bought.

Some brokers choose not to charge commissions. This must be determined before signing up with a broker. The past performance of the broker and the word of mouth from other traders must also be considered. A trader must compare the services offered by the broker. Constant updates and newsletters on market trends are services that must be provided to you by the broker. The reliability of the broker is of utmost importance. Many brokers insure their customer’s funds against any mishap. Also, the margin requirement or the deposit required for opening or maintaining a position must be checked. For small time investors, many brokers offer mini forex accounts. This is another area of comparison. [http://www.e-forexbrokers.com]Forex Brokers provides detailed information on Forex Brokers, Forex Trading, Forex Market Makers, Online Forex Brokers and more. Forex Brokers is affiliated with [http://www.Forex-ontheweb.com]Forex Brokers.

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5 Kick-Arse Tactics To Seize Favorable Probabilities at Forex

By Joseph Plazo

As you ponder how to balance your forex portfolio, it is important to map out sure-fire strategies beforehand.

With your plan, you optimize your reward with respect to the expected risk, and tweak probabilities to your favor. Forex strategies must be disciplined and limit risk; simultaneously, it positions you at the most favorable advantage in the market.

A beginner

Using Fundamental Analysis in Forex Trading

By Jill Kane

How do FOREX traders plan their strategies? What do they rely on to make their trading plans? Analysis. Both Technical and Fundamental Analysis. Let

Look Before You Leap - Why a Trading Education is Necessary

By Jeffrey Greer

Money can be made or lost on the Forex (foreign exchange) market, just like the stock exchange. With the proper trading education, the investor learns how to buy and sell at the right times, using various methods to achieve one’s goals.

The investor is, in most instances, looking for higher interest rates to receive a greater rate of return on their investment, and adjusting the interest rate is a method used by a central bank to ensure continued interest to trade by investors.

The following are brief explanations of different types of currency trading:

* * * * * *

Forward transaction: To decrease risk, forward transactions are often sought on the Forext trading market. In this type of transaction, money changes hands at a predetermined future date. Transactions are set up by the buyer and seller in terms of days, months, or even years. Regardless of the circumstances on that future date, the transaction closes.

Futures: Similar to forward transactions, foreign currency futures also involve standard contract sizes and maturity dates. Standardized and traded on an exchange for this purpose, the average contract is roughly three months. Interest amounts are usually included in these types of transactions.

Swap: The swap is probably the most common type of forward transaction. Two parties exchange currencies for a predetermined length of time. They also reach an agreement on when that swap will reverse - at a later date. Swaps are not contracts and the transaction does not take place through an exchange.

The most common type of forward transaction is the currency swap. In a swap, two parties exchange currencies for a certain length of time and agree to reverse the transaction at a later date. These are not contracts and are not traded through an exchange.

Spot: As indicated by its name, a spot transaction is for a much shorter duration - two days. A “direct exchange” between two currencies, spot transactions involve cash rather than contracts. Interest is not included.

* * * * * *

Though easy to understand in theory, it is most advisable that the potential investor learn everything there is to know about trading prior to making their first successful trade.

The world currency market is a highly fluid market. Conditions, positive and negative, within countries has impact on the rate of exchange for that given currency at any given time. Learning to properly trade in any exchange market helps increase the odds of the investor’s success. Forex trading education should be of the highest quality, with ongoing support and mentoring. Practicing one’s trading skills in a safe environment provides an excellent training education ground before one decides to jump into any trading arena.

As evidenced around the world, trading in the world currency market can be very lucrative, but as this article demonstrates the different choices and methods must be learned to offset financial risk.

Jeffrey Greer marketing agent of Market for Me, an [http://www.market-for-me.com]SEO Consulting Firm represents Margaret Dorsey who has over 35 years experience in the legal field. She is been an active member in the Forex Trading Education community. She enjoys helping others develop and hone their skills. Her firm belief is anyone can be an accomplished self-starter and develop multiple streams of income.

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Secrets To Currency Trading System Development - Part 1

By Jeff Wilde

Many traders fantasize about a trading system or technical indicator that can capture every zig and zag in the market. A very intoxicating thought, but sorry to be the bearer of bad news, it just isn’t so. Please don’t shoot the messenger!

Despite all the marketing hype all over the internet, no one system or indicator can do it all.

Have you ever tried to tune-up your car? Well if you did, you certainly didn’t use just one tool. Depending on the car, it took a whole bunch of specialized tools to get the job done. Not only that, you also need to know how to use the tools and when to use them.

Trying to pull profits out of any market on a regular basis is the same way. It requires a lot of specialized tools and for most traders, technical analysis provides our palette of tools.

Since the market can zig and zag at any time, we need a “Trading Tool Box” full of technical analysis tools.

For example, when the market is in a trading range, then oscillating indicators work very well.

However, when the market is trending strongly then oscillators aren’t worth a pile of beans. When the market is trending then things like moving averages are one of the ‘tools of choice”.

Getting back to the car analogy

Forex Trading - Factors You Cannot Ignore To Become A Successful Forex Trader

By Peter Lim

When it comes to forex trading, there is one particular aspect that differentiates it from other types of trading. This aspect is that forex traders are predominantly technical based, depending a lot of fast entry and exit following charts. Forex traders adopt fundamental analysis only to give them a better economic picture and projection of an overall currency trend.

However, there are particular times when the forex trader has to watch out for significant fundamental developments such as economic matters, especially when there are reports and news release pertaining to international interest rates of the major currencies. This is because everything might be quiet before a news release, with prices breaking out only in a strong move upon the release of the news or after an important meeting.

Therefore, in forex trading, in considering the technical setups, the forex trader has to be aware of the dates of the release of major reports, including what the “chairman of the Fed” says. Certain comments may be construed as bullish and may cause forex prices to move strongly and vice versa.

It would be wise for the forex trader to determine a few reliable source of financial news feeds, and to apply the information from the news channels to his trading.

In any profitable trading system, the forex trader must know how to buy and sell the currency pairs, set appropriate stop losses, and set profit limits, and exploit the power of leveraged margin to his trades.

If he fails to follow these important principles, losses can easily follow and losses can exceed whatever profits and can ruin a man.

In a technical trading system, the forex trader will use some indicators to gauge the market direction . He will need to set up his charts with the right combination of indicators, and more importantly how to use them correctly.

To accelerate one’s learning, a forex trader may use a trade simulator, called a trade sim for short. A trade sim provides simulation of actual forex price movements so that the forex trader can practise his entry and exit of his trades, and improve upon the timeliness of his trades.

From my own experience, I like to tell traders who are beginners to watch for 3 main technical trading setups which are broadly, to trade with the breakout of a trend, to trade with a strong trend, and lastly to trade the tops and bottoms of the market.

Following a period of consolidation which is represented on the charts as a rectangular pattern, a breakout can result in good gains. To trade with the trend means to make several trades as the prices continue to move up, and to buy on the dips and to sell on the rebound. To trade the tops and bottoms, a forex trader needs to recognise toppish and bottoming chart patterns, including Japanese candlestick charting to catch a glimpse of the future.

The biggest advantage of forex trading is that a lot of money can be made ( or lost) within a very short period of time.

Therefore, it is always best for a less experienced forex trader to get under the tutelage of an experienced professional trader to walk him through the ropes.

Good traders are never born. Traders become good through gaining skills and from learning through experience. Either they pay their dues in the market, gaining experience from disappointing trades that went wrong, or they can have a smoother transition into the lucrative field of forex trading by getting a successful professional trader to mentor them.

Academic and head knowledge is useful,but it is always skills and experience that will determine how successful and profitable a trader is. Get trained, be prepared, be capitalised and you can become a successful forex trader.

Peter Lim is a Certified Financial Planner. To discover how you can benefit from the secrets of successful forex trading as revealed by a profitable professional forex trader, and start to earn a 5 figure income from trading forex, visit the author’s blog at http://1forex-trading.blogspot.com

This article was originally published By www.ezinearticles.com

Trend Forex Trading Equals Money

By Adrian Pablo

For many people that has recently discovered the great earnings potential of the currency markets the problem of identifying a good forex system that will help them become profitable in their trading business becomes the main thought occupying their minds.

The forex market has the characteristic of being a highly trending market. As you can see by looking at the forex charts in every time range, there are always marked trends for any currency pair. The art is in identifying the trend early enough to enter the market with an edge in your favor and also in learning when to exit a trend that is about to reverse.

It is all about learning the right timing. And this is not involved with any future prediction capacities of the forex trader. Predicting the future is a complicated way of approaching the currency markets for the ordinary human being who usually doesn

Forex Trading Method

By Sacha Tarkovsky

There are a lot of forex trading systems sold on the net and most of them won

Forex Trading - Fibonacci (or How to Tell Where the Price Will Bounce)

By Nathan Pennington

How far will the price retrace? Ever asked that of yourself and you watch the price move down off of a high (of course, your fib lines are already drawn in).

Keep in mind that often the price won’t bounce exactly on a line. Knowing that fact you need some clues of where it might stop. What exactly are you looking for?

Very often the market won’t jerk one direction and then another if it’s making a meaningful move. There will be a period (however short) of consolidation. That will show up in the price chart.

Look for times when the price gets a little bunched up. Are the candles (or bars) getting smaller? That’s a huge clue. You know that a turning point may be just around the corner.

Then next think you need is confirmation. Too many Fibonacci traders jump on in anticipation of the market turning around. That’s not a good move unless you have enough capital to move the market yourself (you don’t).

Let the market tell you that it wants to go in your direction, then enter your order.

If the market doesn’t have a period of consolidation and it’s behaving jerky, most likely it isn’t a meaningful move. In other words, it was caused by a rash move of one (or several traders) in a time of less liquidity. Trading such a move is a good way to become separated from your trading capital.

Watch the for the slowdown around the major retracement levels and be ready.

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Forex Trading

By Sacha Tarkovsky

You will often read about the advantages of currency trading but you will rarely see the risk of currency trading mentioned, yet 90% of currency traders lose.

This article will look at the risks of currency trading and why this creates a vast majority of losing traders who wipe out their equity.

Let

Forex Trading Systems Make Online Trading Fast and Efficient

By Milton Z. Ziegler

In the FOREX market, you can use two distinct types of trading systems. The first type is the
mechanical trading system. The mechanical trading system is relatively easy to use because an
automated process makes all trade decisions for you. This trading system is based on technical
and systematic analysis. Traders call it mechanical trading because they use computers to get
trading signals.

At the other side of the spectrum, the discretionary trading system uses gut instincts. It is based on an investor’s experience, knowledge, and intuition. Some investors choose to use mechanical systems to understand current market conditions, and then analyze the details on their own before trading.

Mechanical Trading System

Of course, most FOREX traders use the mechanical trading system, simply because it automates the process and you can set it up with little effort. It is the easiest way to become a FOREX trader because it requires less training and education than discretionary trading. Mechanical trading systems are widely available online and some software is available in stores.

Mechanical trading systems take the human element out of FOREX trading. Through such a
system, you have no opportunity to make trading decisions based on greed, gut feel, or bad
judgment. Because a wise investor always invests with his head and not with his heart,
mechanical trading can help those investors who often base his or her decisions on emotions.

In recent years, the internet has made FOREX trading much easier by providing online trading
platforms. The brokerage firm you use will provide one for you. Some brokers have also
developed mechanical trading systems that their clients can use to trade. You can buy this
separately, or have one provided for you. Your broker may also provide valuable tools like
economic calendars, detailed analyses, and current currency charts. If your broker does not
provide these to you, you can buy them on your own or find a different brokerage firm to work
with.

Discretionary Trading Systems

Even when you opt to use the FOREX mechanical trading system, you should still understand the basics of the FOREX market to become an informed investor. There are various courses and
books on becoming a FOREX trader and you should take full advantage of them.

Those with limited knowledge in this area can gain just from testing a broker’s trading software.
The trading software can easily teach you terms, how to read charts, and some basic trading
theories. Used with a book or online course, you can quickly grasp the principles behind FOREX.
An informed trader can therefore use both discretionary and mechanical trading systems to
achieve maximum profits.

If you’re interested in entering the FOREX market, carefully consider your choices. It may be
best to start off by using mechanical trading systems before deciding of your own. In this way,
you can minimize losses and lessen the risk of betting over your head. Once you are familiar and
learned, you can start setting up the discretionary system of trading. Stay educated; it will pay
off!

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Commodity Trading - Advantages and Disadvantages

By Tim Wreford

What Is Commodity Trading?

Commodity futures markets allow commercial producers and commercial consumers to offset the risk of adverse future price movements in the commodities that they are selling or buying.

In order to work a futures contract must be standardised. They must have a standard size and grade, expire on a certain date and have a preset tick size. For example, corn futures trading at the Chicago Board of Trade are for 5000 bushels with a minimum tick size of 1/4cent/bushel ($12.50/contract).

A farmer may have a field of corn and in order to hedge against the possibility of corn prices dropping before the harvest he might sell corn futures. He has locked in the current price, if corn prices fall he makes a profit from the futures contracts to offset the loss on the actual corn. On the other hand, a consumer such as Kellogg may buy corn futures in order to protect against a rise in the cost of corn.

In order to facilitate a liquid market so that producers and consumers can freely buy and sell contracts , exchanges encourage speculators. The speculators objective is to make a profit from taking on the risk of price fluctuation that the commercial users do not want. The rewards for speculators can be very large precisely because there is a substantial risk of loss.

Advantages of commodity trading

Leverage. Commodity futures operate on margin, meaning that to take a position only a fraction of the total value needs to be available in cash in the trading account.

Commission Costs. It is a lot cheaper to buy/sell one futures contract than to buy/sell the underlying instrument. For example, one full size S&P500 contract is currently worth in excess off $250,000 and could be bought/sold for as little as $20. The expense of buying/selling $250,000 could be $2,500+.

Liquidity. The involvement of speculators means that futures contracts are reasonably liquid. However, how liquid depends on the actual contract being traded. Electronically traded contracts, such as the e-mini’s tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread.

Ability to go short. Futures contracts can be sold as easily as they are bought enabling a speculator to profit from falling markets as well as rising ones. There is no ‘uptick rule’ for example like there is with stocks.

No ‘Time Decay’. Options suffer from time decay because the closer they come to expiry the less time there is for the option to come into the money. Commodity futures do not suffer from this as they are not anticipating a particular strike price at expiry.

Disadvantages of commodity trading

Leverage. Can be a double edged sword. Low margin requirements can encourage poor money management, leading to excessive risk taking. Not only are profits enhanced but so are losses!

Speed of trading. Traditionally commodities are pit traded and in order to trade a speculator would need to contact a broker by telephone to place the order who then transmits that order to the pit to be executed. Once the trade is filled the pit trader informs the broker who then then informs his client. This can take some take and the risk of slippage occurring can be high. Online futures trading can help to reduce this time by providing the client with a direct link to an electronic exchange.

You might find a truck of corn on your doorstep! Actually, most futures contracts are not deliverable and are cash settled at expiry. However some, like corn, are deliverable although you will get plenty of warning and opportunity to close out a position before the truck turns up.

Tim Wreford operates [http://www.online-futurestrading.com/]Online Futures Trading, a website that provides information and resources for traders. Tim also provides an article detailing the development of a [http://www.online-futurestrading.com/example_trading_system.htm]day trading system, the results of which are updated daily on the site.

This article was originally published By www.ezinearticles.com

The Margin Advantages of Trading FOREX.

By Omar Vargas

There is one aspect that is considered as one of the best advantages of FOREX Trading. This is related to the amount of money you need to place a trade, this is known as “margin”, and in short, this is all that can be lost in a the case you had a bad trade.

I state it like this because, even though I know with
proper self-taught education you’re NOT going to lose as
much as you win anyway, I want you to know that despite the
super-high leverage associated with FOREX trading (200:1 is
possible; meaning that if you put up $1 the trading vendor will
allow you to trade like you really have $200), it’s still
arguably less risky than futures (commodities) trading. And, forget stocks, you’ll never get this type of LEVERAGE
in the equities market.

Futures markets are often prone to sudden and dramatic
moves, against which you can not protect yourself, even by
trading with protective stops. Your position may be
liquidated at a loss, and you

A Look at Online Forex Brokers

By Eddie Tobey

An online forex broker is a firm that facilitates retail trading using Internet technologies. Global Forex Trading (GFT), one of the popular online forex brokers. It provides retail traders with a free demo trading account, allows users to open a live account, gives live help, provides software called DealBook FX 2, and allows viewing of account documents. (DealBook FX 2 can be downloaded for the demo trading account).

Gain Capital Group

Intrenet Marketing VS Forex Currency Trading

By Amin Sadak

Have you noticed that when someone

The Top Four Forex Brokers

By Eddie Tobey

This article contends that the best forex brokers are: Saxo Bank, GAIN Capital, GCI Financial Ltd., and CMS Forex. CMS Forex accepts no commission, demands a small amount of only $200 to establish a mini account, provides users with a Free Demo account, provides leverage as high as 400:1, and has a 3 to 4 pip spread on major currencies.

Saxo Bank

Psychology Of Trading

By Tim Wreford

The psychological aspect of trading is usually underestimated by those new to trading. The psychological problem for most traders is the fear of losing - ironically it is this fear that causes most traders to lose money in the long run. The fear of losing can manifest itself in a number of ways:

Unable to pull the trigger and enter a trade. A trader can start to lose faith in a system that has produced a number of consecutive losing trades and might start to look for further confirmation before taking the next trade. Inevitably the trade that is not taken will be the winner. The point of a mechanical trading system is that it forces the trader to take the trades that they wouldn’t normally take just by looking at a chart.

Unwilling to accept a losing trade and cut a losing position short. Losing trades are an inevitable part of trading, many successful systems will produce more than 50% losing trades. The key is to never marry a position - if it hits your stop loss then exit it. Preserve your capital for the next trade.

Taking a profit too early to prevent a winning position become a losing one.

There are a number of ways to counteract the fear of losing:

Have a plan. Never enter a trade on a hunch, tip or gut feeling. Always know your exit before you enter a trade.

Discipline. Developing your own trading plan that you believe in will make it much easier to follow than trying to trade someone else’s.

Money Management. If a position is too large for your account size then you are more likely to hang on to the losers or cut the winners short. Each trade is merely one step along a very long journey. Strict money management rules should ensure that you never stake more than you are comfortable with.

Ignore the money. Don’t view your trading account as money, view it as points. The better your trading plan and your execution the more points you will accumulate as a reward. It is difficult to trade objectively if all you can think of is that your last losing trade could have paid for a two week holiday or bought you the latest camcorder!

Tim Wreford runs [http://www.online-futurestrading.com/]Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free [http://www.online-futurestrading.com/example_trading_system.htm]day trading system, the results of which are updated daily on the site.

This article was originally published By www.ezinearticles.com

Stock Trading: Why Averaging Down is a Losing Proposition

By Andy Swan

Many traders, especially those new to the markets, have a habit of “averaging in” to trades that aren`t going their way. The following reasoning is used: If this trade was a good entry at my earlier price, then it must be an even better entry now! On top of that, the trader gets caught up in the idea of improving his “average entry price.”

Unfortunately most traders learn the hard way that this logic simply does not hold up. This is a natural response that everyone has, which is exactly why it doesn`t work in a market. The reasoning that “this trade was good then so at this price it must be even better” is based on the flawed assumption that the first entry price was a good one.

Pride tries to keep us from realizing that the very fact that the position is a loser right now is PROOF that the first entry was NOT a good entry (at least not yet). In fact, the stock or option has moved in the opposite direction the trader thought it was going to move, indicating that either the analysis/reasoning used to take the position in the first place was incorrect or at the very least the reasoning has been weakened by the market action since the position was established. This does NOT mean that the trade is no longer a good one just because you did not make your initial entry at the perfect moment (who does?) — it just means that you probably shouldn`t be willing to put more capital at risk now that it has started to prove you wrong.

The other part of the reasoning, that “this will improve my average entry” is simply a mathematical illusion.

By “averaging in”, you don`t just move your entry closer to the current price (the part Pride makes us focus on), you also double your losing position (the part we don`t want to see). Instead of 1000 losing shares at 10.25 you now own 2000 losing shares at 10.00 — BIG DEAL — you are still down $500 because the stock price is still at $9.75 and now you own 1000 extra shares of a stock that is in a downtrend instead of the uptrend you predicted!

Don`t get me wrong, it is not always a mistake to increase your position on a losing trade — some circumstances (such as the stock sitting right at a very strong resistance or support level) warrant it. If you absolutely must add to a losing position, always do so with the conviction necessary to exit the ENTIRE position quickly should the trade move against you (through that critical support level you saw, etc.) from there.

On the flip side of the coin is the exact opposite reasoning and the exact opposite results over time. Adding to winning positions is a practice rarely done by even the most experienced traders, but one that can lead to increased profitability over time. This is exactly the strategy that our [http://www.daytradeteam.com/dtt/daytrading.asp]Day Trading Systems have used successfully since 2000. The next few times you hear pride telling you to “lock in your profits”, double your position and set a stop at your new “average entry”. After 5-10 of these trades you will be surprised at what a profitable (and a confidence building) method this can be.

Once again, traders who ignore pride and trade the opposite of emotion will reap extra profits and a much more pleasurable trading experience. DON`T MISUNDERSTAND ME — you will not profit more every time you add to a winner and you won`t lose every time you add to a loser — I am talking about trading strategies to work OVER TIME — anything can happen in the window of a few trades.

Andy Swan is co-founder and head of trading at [http://www.daytradeteam.com]DaytradeTeam.com

This article was originally published By www.ezinearticles.com

Discover An Effective Forex Trading System

By Bob Hett

What is the importance of an effective Forex trading system? An effective system provides you the trader, incomparable prospects to increase your earnings. And why not?

The Forex market is the largest financial market in the world with average daily trading of the currencies going over US$1.6 trillion. One other thing, it

Beginning Forex - How Are Lots Traded & What The Heck is a PIP?

By Amber Lowery

If you are new to Forex, no doubt you are confused by all of the strange and unfamiliar terminology. For example, what is a pip? Also, you are probably already aware that Forex trading can be risky. How can you limit your loss and best protect your funds? This article briefly covers how currency lots are traded to help you better understand how to plan your trading strategy and manage your funds.

In Foreign Currency Exchange (FOREX), earnings are expressed in “pips”. Pip is short for Price Interest Point, also called points. Whereas the smallest denomination in USD is the penny ($.01), in Currency Exchange, funds can be traded in an even smaller denomination, $0.0001. This means that very small movements in currency prices can create large profits.

So, a PIP is the smallest unit a currency can be traded in. The actual value of a pip is not a set price. If you are trading with a standard account, a pip is worth $10. If you are trading a mini account, a pip is only worth $1.

The value of a pip changes based upon the size of your account, because the size of your account affects how much currency you can leverage. A standard full size trading account is 100,000 units of the base currency. If you are trading in USD, a standard account has a value of $100,000 USD.

A mini lot is 10,000 units of base currency. If you are trading mini lots, you can leverage $10,000. This is why a pip in a mini account is worth less than a pip in a standard full sized account.

While Forex trading allows you to leverage more funds than you actually have, this can be a double edged sword. While you can make profits on funds that you leverage (rather than own), you can also have losses amplified as well. There are several ways, however, to manage your risk when trading Forex. If you are interested in trading Forex, you should have a definite trading strategy. You must educate yourself to know when to enter and exit the market and what kind of movements to anticipate.

You can also place something known as a stop loss order. Stop-loss orders the typical way traders minimize risk when placing an entry order. A stop-loss order to exit your position if the currency price reaches a certain point.

If you are taking a long position, you would place the stop loss order below current market price. For a short position, you would place a stop loss order above current market price. This technique allows you to manage your risk and, just as the name suggests, stop your losses at a certain point.

As you can see, Forex trading can be complex, but once you understand the basic fundamental principals of how lots are traded, its starts to come together for you. Foreign Currency Trading can be quite profitable and and exciting way to invest.

For more FREE Forex Training Articles, visit: [http://www.Forexpolis.com]Forex

This article was originally published By www.ezinearticles.com

Trading is Difficult - Or is it?

By Rick Ratchford

The reason most trade is to make profits. Rarely do we do so for the sport of it. There are some, however, that do treat their trading as if at the game tables of Las Vegas. Those that do, unfortunately, are soon sent packing to their day jobs so that they can return with another stake to try again. But if you are one of those who think trading should be taken more seriously, keep reading.

Trading is difficult, and then again, it is really simple. Perhaps it should be said that trading is simply a state of mind. What may appear daunting a task to some may yet seem as a catwalk to others. The glass is half full, the glass is half empty, that sort of thing.

How does trading appear to you? Are you overwhelmed with all the news? Or is it all the technical indicators being tossed into your trading programs making your eyes go cross? Perhaps it is all the different trading programs themselves that have you looking dumbfounded out your office window, staring into space and making strange sounds from between your drooping lips.

Well, maybe some choice words here might help clear up that situation for you. A little perspective can go a long way to getting you to see the market in a whole new light.

If the markets moved haphazardly with no rhyme or reason, I would suggest to you to run for the hills and do not look back. Fortunately, this is not the case. With all the conviction in the world, I know for a fact that the markets are governed by natural laws that make it predictable in various degrees. What degree they are predictable is more dependant on who is doing the predicting and how.

The mere fact that the markets have a tendency to trend says a lot about how much randomness it contains

Fear And The Profitable Forex Trader

By Adrian Pablo

Forex trading is one of the most looked for occupations for many people these days. Around the world people is getting tired of fixed working hours and tight cubicles that limit their aspirations of a more relaxed and satisfying working life.

In order to start Forex trading the new trader doesn

Analyze Your Trading System

By David Kosmider

I’m going to share with you some of the factors that I examine when I am testing and analyzing potential new trading systems. First, you might be wondering what I use when developing new systems. There are a variety of different software packages available, but I use TradeStation most of the time. The graphic below shows a TradeStation summary of a system that is being tested. You can refer to that throughout this article for the different factors we will discuss.

If you do not want to pay for a software package, advanced users in a spreadsheet program such as Microsoft Excel could import data from Yahoo! Finance or some other data vendor and set up data tables to simulate trading. That works just as well as sophisticated software packages but is much more time-consuming and difficult to set up.

The Time Period you choose is important because you want to analyze your system during a variety of market conditions. I usually choose to start somewhere around January 1998 and test all the way to the current date for my systems. This way your system will be tested in strong up years, strong down years and several years that moved relatively less.

Net Profit is probably the first thing most traders look at when they develop a system. Unfortunately, some traders only look at their net profit, and that is why I am writing this article. Net profit is important, of course, but not necessarily the most important factor. A system might have a huge net profit, but if all that profit was made in a couple large trades during 1999 or 2002, that is not a good system. What you want to make sure you develop is a system that works consistently well in all market conditions.

Total Trades and Trade Length are important so you know for sure that your system will work well with what you are trading and again you also want to look for consistency. If you are developing a swing trading system for stocks you will probably want a few dozen trades per year that meet your conditions and most of the trades taking anywhere from 2 to 14 days. If you’re going to be trading something else then those conditions will be different.

Another important factor in your new trading system is Percent Profitable. Of course we would naturally assume that the system that has the highest number of profitable trades would be the best. That is not always true though. This is where Win/Loss Ratio (average winning trade divided by average loosing trade) comes in. You may have a high percentage of profitable trades but the average loss might be much higher then your average gain. I have seen systems that have as many as 85% of their trades showing a profit, but if that same system has a Win/Loss Ratio of 0.50, that is their losses are on average twice as big as their wins, you still may not be able to make any money with this system. However there are also systems that may only be right 30% of the time but when they’re right they’re right by a lot and may have a high Win/Loss Ratio of 4.5 or greater and that you might actually be able to make money with. In general though, most good trading systems have a greater then 50% Percent Profitable and a great then 2.0 Win/Loss Ratio.

The final factor that we are going to examine is the Equity Curve. This is the ultimate test of a consistent trading system. The Equity Curve is simply a graph that shows the total profit or loss after each trade. The line of a good Equity Curve should steadily increase from the left side of the chart to the right. This shows that the system is making consistent profits in all market conditions. Bad systems, even ones who are winners in the end will have wild fluxations in their Equity Curve, having huge increases and decreases for long periods of time or periods of no movement at all.

David J. Kosmider is the President and cofounder of TimingResearch.com which provides advice and recommendations to stock and options traders worldwide. View all of his articles and services here: http://www.timingresearch.com/

This article was originally published By www.ezinearticles.com

Trading is a Game

By David Kosmider

Trading is a game just like any other game. When you are learning how to play a game you first need to know all the rules and then you need to practice what you have learned. Be careful to not mix up those steps though, because as my tennis coach in high school said, practice makes permanent not perfect. You want to be practicing the right way.

So lets start with the rules. What are the rules to trading?

You need to know when you can trade. Are you going to place all your orders after hours and let them execute during the day or are you going to watch the market during trading and place your orders? You need to know what the different type of orders are and how they affect your trades. Are you going to place market orders, limit orders, stop orders or a combination of different types depending on the situation? What are the advantages and disadvantages to each and how will you use them for money management?

Then, what is your hold time going to be? Day trading? Swing Trading? Short-term trading? Long-term trading? Different time periods work have different potential opportunities and risks. What are you going to trade? Just stocks? Perhaps options as well or even futures and currencies. How does volume affect your trades? There’s plenty more to learn as well, but you get the idea.

Once you know the rules then you need to practice.

Practice in trading usually comes in the form of developing and testing a system that works before using it to trade with real money. To do this you will need to learn about different indicators and oscillators, how they work and what they work best with. You will need software of some kind to test the results of your strategies.

Then it is a good idea to do some? paper trading? with your newly developed system, that is using either one of the stock market trading simulators available on the internet or just keeping track on your own. Get used to applying your strategy to real life and get a feel for how to manage it for several days at least. Then you will be ready to start trading your new system.

David J. Kosmider is the President and cofounder of TimingResearch.com which provides advice and recommendations to stock and options traders worldwide. View all of his articles and services here: http://www.timingresearch.com/

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