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Currency Trading

What Are Forex Trading Signals and How Can You Benefit From Them?

Forex trading can be quite intimidating to many, especially because of the sheer information overload. Even experienced traders work for many hours on charts and numbers everyday, just for making sense of the data they get. In order to make precise trade entries and exits, they spend innumerable hours on charts, market news, speculations, analysis, world market economy, and lots more.

What if you keep getting the signals everyday to make the right trade moves, without having to spend so much time and efforts?

Forex Trading Signals:

Trade signals are more like taking continuous guidance from an experienced trader, in an ongoing way. The signals provided by them on everyday basis, indicate the good entry and exit points. You can set up your trades for those points, and get on with your other works. The Buy and Sell alarms automatically trigger your trading activities.

You can receive the alerts on your mobile phones, computers, tabs, etc. With proper and timely signals from reputed traders, you are likely to make more winning moves. It is also an excellent solution for those people, who are generally cramped for time.

How are the signals generated?

The alarms generated by the signals, are always based on thorough technical analysis of the prevailing currency market. The signals are sent after closely analyzing the indicators, market trends, and many other financial cues.

You will need to subscribe for daily Forex signals with any of the reputed traders or trading firms, and then get the valuable trading insights from them everyday.

Why is it a good idea to subscribe for Forex Signals?

Getting into Forex trading is not as easy as it might sound. You will need to learn a lot of things just to understand the basics of how the market works. For a new trader, phrases like Bollinger Bands, MACD, Simple Moving Average, indicators, oscillators, candlestick charts, etc can be simply too overwhelming.

One of the main reasons why people tend to lose money in Forex is because they don’t have the time and patience to learn about all the things that are needed to make sound trading decisions. Why would you want to take such a risk, when you can have the experienced traders work on the market analysis part for you?

That way you will be able to skip the complex part of trading, and get straight into the winning circles. However, make sure that you research well about the Forex signals providers, before deciding to subscribe with one.

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Currency Trading

Forex Trading Money Management

In this article, I will be focusing on the importance of Money Management in Forex trading. Successful Forex traders have a larger edge and better money management than unsuccessful Forex traders.

After observing hundreds of amateur Forex traders, I began to discover that their failures can be explained almost exclusively by their poor money management practices.

When trading, the importance of Money Management is underestimated by a lot of Forex traders. It is of much more importance than entry and exit decisions (=timing decisions) will ever be. Very few indicators are better than a coin toss, and if they are, the edge is eaten up by slippage and commission.

Money Management in Forex trading is also called asset allocation, position sizing, portfolio heat, portfolio allocation, cash flow management, trade management, capital management and position management, size management, bet size selection, lot size selection, or even risk control, equity control, and damage control.

Money Management is managing the position size while Risk Management is about managing losses and open profits (unrealized trading returns). Actually I don’t like the term ‘Money Management’ in Forex trading as it also has a very general meaning (it’s also used to describe the “process” of saving, those “learn valuable skills” pages talking about piggy banks and how to teach kids about pay checks).

But ‘Money Management’ tells a Forex trader that he should concentrate his research on how to optimize capital usage and to view his/her portfolio as a whole.

Actually there are (at least) 2 steps to implement proper Money Management:

1) Position sizing is the determination of what (fixed or non-fixed) fraction of a portfolio’s total (or again fixed or non-fixed fraction) equity to risk on each trade expressed in Dollar-, Euro-, Yen-, or Swiss Franc-denominated currency values.

2) Position sizing, on the other hand, is the calculation of how many contracts I should hold in my position once a trade entry is signaled, which basically is a function of the Big Point Value (the number of dollars that a 1-point price move represents) and a rounding algorithm as the number of contracts/stocks can’t be traded in fractions and must be cut down to a whole integer.

Let me show you a clearer picture of money management. Suppose you and I bet $0.20 on a coin flip: Heads, you win, Tails, you lose. Suppose you have $10 of risk capital and I have $1. Even though I have less money, I have little to fear, because it would take a string of 5 losses to wipe me out, unless two brokers get between us and drain our capital by commissions and slippage.

The odds will dramatically change if you and I raise our bet to $0.50. If I have only $1, then I can only afford to lose 2 times. If you have $10, you can afford to lose 20 times.

Many amateur Forex traders take wild risks with a poor money management system. When they lose on their trade, they increases their lot size or position, hope that they can recover their losses made previously and make some profits. This action has caused their capital to be more exposed to risks. This lesson won’t automatically build wealth, but will bring a wealth of experience and knowledge, which will prove invaluable to you if both understood and applied properly. It will steer the course for your success in the global financial marketplace.

If you are too lazy to dig deep to both find and understand this lesson, I would advise to either refrain from trading.

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Currency Trading

Earn Money Online With Forex

Would you like to learn how you can earn money online with Forex? Many people have heard of making money in the currency market and are keen to try it out. I started my Forex trading activities by researching on the internet for ideas and systems too, and I soon discovered this type of software called automated trading robots.

1. My Experience with Online Forex Automated Trading Programs

After testing and failing with many of the useless programs, I was finally able to find one that could consistently make a positive return on my money month after month. This currency trading robot can be downloaded by anyone with or without experience, and its user will be able to earn money online with Forex within minutes after setting up the software.

2. What Will You Get to Download in the Forex Software Membership Area?

Once I signed up as a member of the program, I got access to the membership area that allowed me to download all the materials I needed to get the robot running. There were also resources that introduced me to the world of currency trading and step by step instructions on how I should start using the software. The particular robot that I use does not charge monthly recurring fees to use and provides a lifetime support service to all its customers.

3. Downloading and Installing the Online Forex Trading Software

Setting up the whole thing will not cost any additional fees and should take typically 15 to 20 minutes to complete. Included with the installation program is a downloadable PDF that tells you exactly how to setup the software. On top of installation instructions, you can also learn all the basics and some advanced concepts about currency trading from it.

4. Using the Right Trading Platform with the Robot

Every trading software will have specific platforms that they can work on. The one that I use works on the widely popular Meta Trader 4.

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Currency Trading

Forex Trading – Do You Play The Blame Game?

Many people find excuses about their losses in Trading? Are You one of them?

Do You Play The Blame Game?

This article will discuss what you need to discover about yourself to move forward with trading.

One of the several reasons many people have trouble trading consistently and successfully is that they play the Blame Game. When they do poorly they always blame everyone else except themselves.

For example how many times have you said this to yourself or to others?

“My broker really does a bad job of executing my orders, if I could just find the right broker I would make a fortune in the Forex Market.”

“As soon as I start to move my trading forward, they get me.”(When I here students say this I always wondered who the proverbial They are.)

“If it were not for bad luck in trading, I would have no Luck at all.” (trading Forex or any trading for that matter is NOT Luck!)

Professional Trading is not unlike professional gambling. (We have greater odds in trading because of the positive expectancy of our systems. Gambling is a negative expectancy system. They don t build those huge hotels in Vegas by losing money.) Professional Gamblers(Black Jack, Poker) who are successful have determined their edge. They develop a plan to asses how that edge can be used to win. Then they follow it and stick to Money Management.

If You want to make money in the markets trading, you must take the same approach. You must determine what your natural biases are that prevent you from your goal of trading success. Once you determine them, you need a sound Trading plan to steer clear of your own pit falls.

So your first step is to realize that you are responsible for all your trading. You must take personal responsibility for your trades. Even If You are following someone else. They are still your trades. You made the decision to follow, no one put a gun to your head.

Once you take personal responsibility for your trades an amazing thing happens, you get to learn from your mistakes, and become a stronger and more efficient trader.

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Currency Trading

Internet and Computer Systems in the FOREX Business

With every passing year the interest in electronic trading is bigger, more especially trading shares and currency through Internet. A new profession came forward – this of the currency dealer. The appearance of this profession was caused by the full force of development of Internet, which enabled the exchange business to be carried over at home or at the office. The electronic platforms offered by banks and investment brokers enables all of us to go in the sea of ​​the financial markets and to start living a difference and unknown by this moment way of life.

The development of the computer technologies, the program security and the telecommunications, as the same as the grown experience, raises the qualification level of the brokers. It it's turn this raises the belief of the brokers in their own abilities to benefit and to lower the risk while operating. That's why the higher level of the trading qualification leads to a higher level of trade amount.

The introducing of automated dealing systems at the eighties, as the same as co-coordinating systems in the beginning of the internet trading at the end of the nineties, entirely changes the standard methods of currency trading. The dealing systems are online computer systems which integrate the banks in a united net while the co-coordinating systems become electronic brokers. The dealing systems are more reliable and much more effective which enables the dealers to realize a bigger number of concurrent transactions. Moreover, they are safer as far as the dealers can observe the executors of the transactions. Thanks to their reliability, speed and safety, the dealing systems are playing cardinal role in the expansion of the currency business.

The using of computers is taking a substantial role at many stages in the realizing of the currency business. In addition to the dealing systems the co-coordinating systems connect together the dealers all over the world in this way building up an electronic brokers market. The new office systems are ensuring a full account report, filling vouchers, keeping secretary work, procedures of lowering the risk and they account the expense for their acquisition. The present-day program products afford an opportunity to be generated all types of graphics, adding theoretically well-grounded technical indicators and favor the dealer for lon lasting using with comparatively low expense.

The using of Internet makes the financial information about the currency markets, currency indexes and prognoses about the rate of exchange, easy accessible all over the world. Now there are many websites with financial information. A big role in the currency trading has the rate exchange. The speed of the electronic post makes it possible getting these prognoses in a moment. If you take out a subscription to such a service, you can get prognoses of rate-exchange by electronic post every day. Such a service you can find at the following address:

http://www.iforex.org

Categories
Currency Trading

A Short Introduction To FOREX

FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new “thing” to talk about at parties, business events, and other social gatherings.

Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.

But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind

has to be open and the slate has to be clear for starting out fresh with the CORRECT information.

So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck “FX” (FOREX) means, what it is, and why it exists.

As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up.” Others in the industry

have also said, Trading FOREX is like having an ATM machine on your own computer.

Here’s an explanation (one I feel you’ll appreciate) of what FOREX is and how a bunch of traders, profit from it:

The Foreign Exchange Market, also referred to the “FOREX” or “FX” market, is the spot (cash) market for currency.

But, don’t mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.

What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.

So, you’re probably wondering where it’s at … or … how to access the FX market?

The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or ‘Interbank’ market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

Yes, if that’s the first time you’ve heard about an all-electronic market, I know this may sound somewhat intriguing to you.

Here’s what you are actually trading when you participate in the Foreign Exchange (FOREX) market:

Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is

simultaneously exchanging one countries currency for another. So, in actuality, they’re electronically trading a currency-pair and the price that is quoted to us is the exchange rate

between the two currencies.

In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.

Example:

EUR/USD last trade 1.2850 – One Euro is worth $1.2850 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.

The FOREX has a DAILY trading volume of around $1.5 trillion dollars – 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day!

The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.

There’s plenty of money to be made using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them to profit immensely. And, with only 5% of the daily turnover of volume coming from banks, government and large corporations who need to hedge, the other 95% is for speculation and profit.

[http://www.1-forex.com/]

Categories
Currency Trading

Forex Aggregation – Advantages

Foreign currency market continues to remain non-centralized and fragmented. While the collective daily volume in spot, forward and swap foreign exchange market is around 3 trillion, lack of transparent price discovery and liquidity amongst numerous institutional Forex dealing platforms still remains a prime concern due to the fragmented nature of Forex market. Given the increasing interest in online foreign exchange dealings, new and improved trading venues are becoming available.

Due to the decentralized, segmented and over-the-counter nature of Forex market, liquidity has always been dispersed. However, in the last ten years the number of sources from where liquidity can be sourced has increased enormously. Forex Liquidity Aggregators are tools that enable market participants to view all of the various sources of liquidity on one screen. Following are some of the advantages of Forex Aggregators:

Virtual Forex Exchange

A Liquidity Aggregator acts as a centralized trading portal by accepting and normalizing several data feeds, feeding that data into algorithmic engines and receiving orders and routing them into the market. By presenting the liquidity in a single and consolidated order book, Aggregators act as a ‘Virtual Forex Exchange’ for buy-side traders. Traders can get a complete picture of available liquidity in a single trading environment, which enables them to have maximum control over their order flow by easily sorting, analyzing and making profitable decisions.

Limiting Transaction Costs

By accessing multiple sources of liquidity, Forex Aggregators put back the market together for buy-side traders. Besides lowering transaction costs and time spent for searching liquidity, they also limit the potential risks involved by placing all execution orders in one order ticket. The cost of aggregation services will be offset as traders spend less time searching for the best price.

Increasing Trading Efficiency

By employing Aggregators, traders will no longer require to subscribe to multiple portals on their desktops. By aggregating the functionality, pricing and liquidity under one portal, traders can save on the cost of staff and infrastructure which they would have otherwise employed for managing various portal connections under traditional execution system. A major challenge faced by traders using traditional execution process is the ‘last look provision’. Bank portals have a waiting period of several hundred milliseconds to several seconds before a deal is executed. Seconds can make a huge impact on profitability especially for algorithmic trading system. However, by aggregating various liquidity sources, last look provisions can be minimized, thereby increasing trading efficiency.

Better Price Discovery

Forex Aggregators internally match trade orders between all buy-side traders and liquidity providers thus providing better price discovery, greater liquidity. This further improves the response time and order confirmations for the users.

Maintaining Anonymity

Buy-side firms prefer maintaining anonymity while trading in Forex marketplace as they do not prefer reveal their trading strategies. Forex Aggregators enable them to execute daily currency flows without revealing their position or identity.

Smart Order Routing

Forex Aggregators also allow for ‘smart order routing’, wherein buy-side firms can continuously observe all the liquidity sources to determine where the best market opportunities lie. After an order is executed, the Aggregator automatically decides where to route, how much of the total amount to send to which venue and what orders to send. Also, users can refer to only one screen instead of referring to several single or multi-screen portals at the same time, thus saving on cost of employing systems for each trading venue. Besides delivering efficiency gains, this technology also enables market players to retain more trading value. Forex players are therefore giving increasing services that deliver a single point of access to market liquidity, combined with a common trading record.

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Currency Trading

Following Forex Price Action – A Powerful Method for Huge FX Gains

Here we will look at the concept of following Forex price action via charts and making huge FX Gains with a simple and proven method. If you use the FX strategy enclosed, you will catch every big trend and profit so – let's take a look at it in more detail.

If you look at a chart of any currency pair you will see big trends which last for weeks on end and these trends can give you fantastic profits if you know how to get into them. The good news is the big trends all start and continue in the same manner – They break overhead resistance and then, move higher and this is called a breakout. If you trade breakouts, you will have a simple and powerful method which simply follows price action and gets you in on all the big trends.

Of course, not every break of resistance, will see a new trend develop and many will fail to follow through. To make profits, you need to know which breaks offer you the best odds – before you enter your trading signal.

The best breaks are ones which occur after a level has been tested a few times and becomes significant to other traders. If a level has been tested a few times, traders will want to short into resistance and have their stop behind it. The more times the level is tested, the more stops are clustered just behind resistance. When the break does occur, these stops are triggered and push the price away from the breakout point then, new technical buying comes which pushes the price further away from the breakout point and a new trend is born.

In terms of numbers of tests before the break, I like about 4 – 6 and ideally, want 2 of those testes to be at least a month apart. The break when it comes is even better, if most people think the currency should be going the other way. The reason these breaks are better is simple – the vast majority of traders always lose money and there are likely to be a lot of stops to be hit as the resistance gives way and takes these losers out of the market.

The simple method above, will make you money and not only will it get you in on all the big trends, allow you to trade just a few times a week and make triple digit gains. If you want to achieve currency trading success, there is no better method than breakout trading.

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Currency Trading

Forex Megadroid – Assessing Its Compatibility With the MetaTrader Platform

If you are a beginner in the currency trading industry, you have probably heard from a lot of sources how the Forex Megadroid is an ideal one for those who are just starting. Even with no experience, you can rely on the accuracy of its trading decisions such that you will still be able to have a success rate that averages at above 90%.

Compared to other robots, this one focuses only on the major currency pair of the US and the Euro. At first this may seem like your options are limited since you will not be able to participate in trading with other currencies. However, this is actually one trading forex strategies in itself. As a beginner, learning from just one currency pair will make you more focused and help you learn faster. Besides, this is one of the major pairs and you will still be assured of profits even if you trade with this exclusively.

Another thing that you should know about the Forex Megadroid is that it is compatible with the MetaTrader trading platform. Using this platform is also ideal for beginners since it offers quite a number of functionality that will be very useful for them. The charts, indicators, and other tools in this platform will give a lot of help to a new trader as he learns along with this system.

For example, there are tools such as the indicators that will provide signals when there are changes that happen which will trigger a down trend or an up trend of a currency. Sometimes there are a lot of movements in the market that are so volatile that you may have a hard time to notice without any technical help.

This functionality will also help you when you decide to learn and do some option trading even at this beginner stage. Some beginners have a hard time and can suffer from information overload if they go into currency options but with the right platform and trading robot, you can tread this part of the forex market successfully.

Beginners are understandably apprehensive the first time they try live trading. With the help of tools like the Forex Megadroid and a user-friendly trading platform, you will learn to navigate this industry in no time.

Categories
Currency Trading

4x and Forex Signal Services

Forex trading is a great way to make money fast. Do you have to know everything about the market before you start making money? No, you really don’t.

The Forex industry, as attractive as the market might be, is headed in a bad direction. Many Forex services whether they are brokers, signal providers, or just general Forex websites are going about their marketing in a totally ineffective way, and are thereby preventing themselves from turning over any profit, or at least making a smaller profit than they could have made.

Too many people have a negative impression of the Forex industry and associate it with shady markets, and not with the serious global markets, to which Forex should be compared. If there is anyone to blame for this, it is the Forex players themselves.

Before we talk about some steps Forex companies should take, let’s examine what the Forex companies are doing wrong. If you look at the average broker or service provider in the Forex market, you will generally see one thing in common. They all promise immediate and large scale results. This is of course false, and misleads people, which ultimately causes a bad name for Forex as an industry.

Forex is not a magical solution and generally speaking, no one is becoming the next Bill Gates over night by trading Forex. Yes, it is the biggest market, yes, there are 3-4 trillion dollars traded daily in the Forex market, but you will almost definitely not see any of that money without preparing yourself before jumping in. Learn the market, study the charts, understand the financial news, and pay attention to the experts and Forex signal service. These are just some of the basic pieces of advice I would give a new trader.