10 Forex Strategy (3-Continue)

Currency Trading Strategy Number 22:
Former stock traders take note: I say former because I don't
honestly know why you would ever want to go back to stocks after
having tasted the forex. Don't over-trade the forex. This is not a
scalping market! If you have to scalp, do it in slow motion.
Currencies trend well. Don't buy too soon in a downtrend, and don't
sell too soon in an uptrend. Watch for trendline breakouts to know
when to make your move.

Currency Trading Strategy Number 23:
You cannot succeed at trading the forex unless you are TOTALLY
committed to trading, and trading it. This is not something to be
played with. If you are not going to take it seriously, then try
something else.
Currency Trading Strategy Number 24:
Put your emotions in your hip pocket. This is a business, and should
be treated as such. If you have any bad habits, the forex will fix
them real quick.

Currency Trading Strategy Number 25:
Important point here: If you deem the major trend for the current
session, based on everything you have learned to this point, to be
down, then think DOWN. Sell rallies. Don't look to buy, or you might
get whipsawed to death. Likewise, if you deem the major trend for
the current session to be up, based on everything you have learned
to this point, then think UP. Buy the dips. Don't look to sell. Former
stock traders fall prey to wanting to have it both ways. Maybe, when
you get real good at this, you can try. But for now, think one way,
and save yourself the grief.

Currency Trading Strategy Number 26:
Another important point here: The major rally for the Euro begins
after two am New York time. These are the London hours – the
busiest in the forex, bar none. The Euro always – session after
session – puts in, on average, 76 pips during the first 12 hours from
that time forward. Whether you want to believe it or not, the Euro,
once it makes up its mind what the major trend is going to be during
those 12 hours, will "drive" to the other end of its range (76 pips)
within those 12 hours. So catch the trend, and ride it. Now, it won't
be a straight line, of course. Even an airplane taking off or landing
encounters some bumps along the way. Same too with the Euro.
Once it picks its direction, it will meander all the way to the other
end of its range. This will "fake" the dumb money out. They never
know what happens to them. To conclude: If the Euro wants to have
a down trend during those 12 hours, it will achieve its 76 pips south
of where it started. So, think DOWN. If the Euro wants to have an up
trend from during those 12 hours, it will achieve its 76 pips north of
where it started. So, think UP. The Euro either goes up or down
during those 12 hours – not both. Here, I am talking about the major
trend, of course. Ah yes, there will be rallies or dips along the way,
depending on the direction of the trend (down or up), but like I said
earlier, SELL THE RALLIES IN A DOWNTREND, AND BUY THE DIPS IN
AN UPTREND. That's all there is to it.

Currency Trading Strategy Number 27:
Something to think about: If you get the above strategy - number
26, then you're going to love this one. It will test your nerve. If you
buy into the idea of the major trend unfolding during those 12 hours
(check it out here every day, and you'll see living proof), then why
not try to get in when it starts to unfold, and "ride it." That will take
nerves of steel, because the Euro will go against you from time to
time – but not enough so to take out your initial stop. From a
risk/reward ratio point of view, you are risking 20 pips to gain 76.
Not a bad ratio. What I am trying to say here is why not just put
your trade on, set the stop, and go clean the swimming pool while
the Euro meanders its way to the end of its range. What spooks a lot
of people out is when they stare at price action after they have
engaged their trade, and they over-react every time the Euro
hiccups. Just leave it alone. So, what's the worst that can happen?
You can get stopped out right? Chances are you won't. If you catch
the major trend, chances are very much in your favor that you will
be richer by at least US$760 per lot. If you trade the action all the
way through the trend, you may get beat up real bad, and lose
anyway. Let the Euro lead you, not the other way around.

Currency Trading Strategy Number 28:
Every once in a while, I would encourage you to step back from the
daily intraday action, and have a look at it from 30,000 feet.
Sometimes, we can get too close to it, and not see the trees in the
forest. On the daily chart, if you plot trendlines and look for
divergences, you will learn a lot about where price is going to go
"next." Of course, that's what we all want to know, right? Not only do
trendline breakouts and MACD divergences tell a "big" story, but
where a daily bar closes will offer up a clue as to where price will
likely go in the next session. Study the chart, and you'll see what I
mean.
For those of you who don't know what this is all about, the little line
pointing off to the right of a price bar is the "close" for the daily
session. The little line pointing off to the left is the "open" for that
session. In the forex world, the close of one session automatically
becomes the open for the next session, as this is a very liquid
market, and there are no gaps in trading.
I just thought it wise to pause and reflect at a higher level from time
to time. Looking at things top-down is sometimes healthy, and a
wise thing to do. We can sometimes get caught up in the minutiae of
the daily flurry of price movements, and lose perspective of the
bigger picture unfolding above us.

Currency Trading Strategy Number 29:
To reiterate, there are just a "few" things you have to watch out for,
and be "patient" for set-ups to occur. Don't just pull the trigger
because you "think" it's time to do so. Wait for bona fide "signals."
There are only "four" clues you have to look for: "reading bars,"
MACD divergence, pivot point breakthroughs/tests/violations, and
trendline breakouts. That's it folks. That's all it takes to succeed in
this wonderful business called forex trading. No other bells and
whistles or toys are required, contrary to what you may have learned
before. The hardest part for you will be to "unlearn" everything you
knew about trading before. Just give your head a shake, and it will
go away.

Currency Trading Strategy Number 30:
Although I have said that there are only four clues that you have to
look at for price direction – "bar reading," MACD divergence, pivot
points, and trendlines – there is actually a fifth. It's called "price."
Price is the number one indicator in the sky. It will tell you where it
wants to go. Let it point the way. It's like playing cards. Wait for it to
reveal its "hand." You just have to be patient and wait. It's called
"following the leader."

Currency Trading Strategy Number 31:
I was asked recently about multiple lots – in other words, buying or
selling more than one lot at a time. You can either "load up the boat"
at your entry point, or you can go at it one at a time – adding
additional lot(s), as price moves through each successive pivot point,
as it "reaches" for the end of its range. If you are confident that you
are "with the trend," and are using good money management
techniques, then there is nothing wrong with taking more position(s)
along the way. Or, you can do both – load up to begin with, and
buy/sell more, as price progresses through pivot points in its tear to
the finish line. Don't bail too soon. Remember, currencies trend well
(especially the major trend), and price knows where it wants to go.
Let it take you there. Use the "five" indicators – "reading bars,"
MACD divergence, pivot points, "price," and trendlines – to make
your trading decisions.

Read More......

10 Forex Strategy (2-Continue)

Currency Trading Strategy Number 11:
That all said and done, if you entered a trade close to a pivot point,
or a particular significant bar pattern (like a double top, for instance,
or a trendline breakout), place your stop on the other side (but not
too close to) the event that caused you to take action. This is
because price has a tendency to snap back to that situation that
caused it to bolt away from it in the first place. If you follow the 20-
30 pip stop rule, but a 33 pip stop on the other side of that event
would safeguard you against such a reaction, then so much the
better. So, yes the stop rule is 20-30 pips, but within reason of
course.

Currency Trading Strategy Number 12:
Stops (read “stop-loss”) are for insurance purposes only – not
necessarily for taking profits. However, you can most certainly
employ “trailing stops,” whereby you keep moving your stop up (or
down, whichever the case may be) to protect your profits, as price
advances, or declines.
Currency Trading Strategy Number 13:


Only use “reading bars,” MACD divergence, pivot points, and
trendline analysis in your forex trading toolkit. That’s all you need for
this market. Be a technical bigot. Focus on pure technical analysis,
and avoid funnymentals. Even news is factored into price action, soyou don’t need to be up on it each and every nanosecond. If you
don't have my .pdf file on reading bars, please send me an e-mail,
and I'll forward it to you: prbain@tradingsmarts.com As was pointed
out to me by a client, "reading bars" includes spotting double, or
even triple, tops and bottoms.

Currency Trading Strategy Number 14:
And now for the tough part. I know my documentation says that the
forecast low and high for the next trading session can be M1/M3 or
M2/M4. However, trading is shades of gray. It is not a black and
white business. If it were, the world would be paved in gold, and
everybody would be rich. Now, we wouldn’t want that would we? The
forex would be nothing more than a Church at the end of a road
connected to a river bank at the other end with nothing in between.
The point I am trying to make is that the “actual” low and high for
the next session could very well be any combination of M1, M2, M3,
and M4. It could be M1/M4, M2/M3, or combinations of the other five
pivot points. The M1/M3 and M2/M4 calculations are just guideposts,
but are not poured in concrete. Price is the number one indicator. It
will determine what the low and high are going to be. And one other
thing, you should use these forecasts in conjunction with the other
three “tools” in your forex trading toolkit – “reading bars,” MACD
divergence, and trendline analysis. In other words, if price has been
trending down from the past session into the current one, price is
trading at, say, M3, and price is still going down, then M3 may very
well be the high for the new session, regardless of the fact that my
system may have called for M4 to be the high. So, use the pivot
points in conjunction with other three possible signals – “reading
bars,” MACD divergence, and trendline analysis. I have seen it
happen, as in the example just given, where price was trending down
from one session to the next right through M3 at the open of the
next session – simultaneous with the formation of a “double top” bar
pattern. Well, there you have three indications that price was headed
south for sure. And, I believe MACD was also trending down in that
particular case. So, that was another clue that the high for the
session had probably already been put in.

Currency Trading Strategy Number 15:
When you are first starting out, pick one currency of the four major
pairs (EUR/USD, USD/JPY, GBP/USD, and USD/CHF) to trade, and
become a specialist in it. I would personally recommend the Euro,
especially if you are going to be asking me questions, as that's what
I focus on with my clients around the world. Get to know its rhythm.
When you are doing well with it, then move on, and trade the other
three major pairs, as you see fit. When you are in learning mode,
you will have your hands full trying to figure out what to look for,
and how to manage your trades – enough so that you don't want to
be skipping back and forth between currencies.

Currency Trading Strategy Number 16:
Keep a log of all your trades – both good and bad. Analyze where
you went right and wrong, and vow not to repeat those situations

that could have been done better. This is all part of being organized
as a "professional" trader - with good habits. This is not about gunslinging
and winging it with "Hail Mary" passes.

Currency Trading Strategy Number 17:
Important point here: If price action opens in the upper end of the
projected range for the session (all the way up to R2, and beyond) –
in other words, in the sell area (that area above the central pivot
point) – and there are other suggestions that price is too high (such
as a particular bar reading, MACD divergence, or trendline breakout),
then price has probably achieved the upper end of its price range for
the session. The same holds true where price action opens in the
lower end of the projected range for the session (all the way down to
S2, and beyond) – in other words, in the buy area (that area below
the central pivot point) – and there are other suggestions that price
is too low (such as a particular bar reading, MACD divergence, or
trendline breakout), then price has probably achieved the lower end
of its price range for the session.

Currency Trading Strategy Number 18:
If there is nothing to do, then don't do it. Don't just do something
because your "gut" tells you to. That can get you in a lot of trouble in
this business. Only react to bona fide signals provided by the four
indicators talked about above – "reading bars," MACD divergence,
pivot points, and trendline analysis.

Currency Trading Strategy Number 19:
Only use an "industrial strength" market maker with the lowest pip
spread in the industry. If you would like more information on this,
please send me an e-mail: prbain@tradingsmarts.com

Currency Trading Strategy Number 20:
Occasionally, you will see a huge spike up in price, as we did 11 May
03. This just happened to be on a Sunday, shortly after recommencement
of trading, after the weekend respite. Ordinarily, I
would take the OHLC numbers from Friday, but given the nature of
the wild swing up that evening on one of the 15 min bars, I would
then use the OHLC numbers from Sunday night's session close to get
a better reading on support and resistance levels for the next
session. This is, of course, if you are using a market maker that
delineates its break between trading sessions in the late evening -
anywhere between 20:59:50 and 24:00 (midnight).

Currency Trading Strategy Number 21:
I often get asked by fellow traders why my pivot points aren't the
same as theirs. Good question. The answer is, of course, that you
may be using a different market maker, where a daily 24-hour
session is "cut off" at a different time. Some end at 20:59:50. Others
at five pm. Where you take your OHLC from will have a direct
bearing on the pivot points that you calculate using my program. Theresults will obviously not be the same. But, that is okay – because
you want to use the pivot point calculations that are reflective of the
last 24 hours at the market maker you are trading with. That way,
the resulting numbers will be truly indicative of the support and
resistance levels you should be working with during the next session.
If you are trading with a firm that cuts off at 5 pm, and using OHLC
figures from another source that cuts off at a different time, your
figures will be "out-of-sync." I hope this all makes sense. If not,
please send me an e-mail: prbain@tradingsmarts.com Also, in your
message, you can ask me how to get a copy of my program, if you
don't already have one. You can also ask me where you should be
trading – i.e., which market maker you should be using. I only
recommend "select" providers, after considerable research, and
feedback from my clients.

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10 Forex Strategy

I got this off Peter Bains site. It's more geared towards the beginner,
so enjoy and maybe you might learn a thing or two!

Please pour over the 80 currency trading strategy items on the
checklist below that the big dogs use. You'll be glad you did. Please
pick up on the fact that you only need four tools to trade the forex
with, using my approach – "reading bars," MACD divergence, pivot
points, and trendline analysis. That's it. Nothing more! Plain and
simple. Don't let the naysayers have you believe otherwise. The
world is full of "Doubting Thomases" who are everybody's armchair
quarterback, but have never made a dime in this business. They "sell
shovels." They don't use them.
Currency Trading Strategy Number One:
When you are just starting out, strive to carve out 20 pips per


session, and that’s it. Then, turn it off, and study some more. When
you get really good at it, you can then “graduate” to higher returns.
So, set your goal at 20 pips and stick to it, until you are a grand
master at this wonderful “business” called forex trading. I stress the
word business. This is not a game, especially where your “hardearned
money” is involved.
Currency Trading Strategy Number Two:
Spend most of your time on the 15-min chart.
Currency Trading Strategy Number Three:
When you first start out in any particular session, look at the 1 hr
chart to get an overall perspective on trend from one session to the
next, and what it’s likely shaping up to be at the beginning of the
upcoming new session.
Currency Trading Strategy Number Four:
Only look at the 5 min chart if you absolutely have to see what’s
behind the current 15 min bar – especially where the bar is
elongated, and may have just penetrated a pivot point; in other
words, is price reversing course on the 5 min chart, which would
obviously not yet be reflected on the 15 min chart?
Currency Trading Strategy Number Five:
Don’t dwell on the 5 min chart, as it contains a lot of “noise” that will
whipsaw you to death.
Currency Trading Strategy Number Six:
MACD rules on the 15 min chart. Even if MACD is, say, trending up
on the 1 hr chart, if it is trending down on the 15 min chart, that’s
what you take your cue from. That’s not to say a shift in price
direction is not in the works. It just means it’s coming, but not yet.
In the meantime, you don’t want to miss what’s happening “in the
now,” which is what is reflected in the 15 min chart.
Currency Trading Strategy Number Seven:
If MACD is trending down on the 15 min chart, and price is wanting
to go north, price will sooner than later head south as it perhaps
bounces off a pivot point, or gets turned around at a juncture caught
by one of the other three “tools” you should be using (“reading
bars,” MACD divergence, or trendline analysis). Same thing if MACD
is trending up, and price is trying to head south.

Currency Trading Strategy Number Eight:
Only use MACD for divergence, not for buy or sell signals. It is a
lagging indicator, and as such is useless

Currency Trading Strategy Number Nine:
Again, MACD divergence on the 15 min chart is more significant than
what you see on the 1 hr chart in the near-term. For those of you
who don’t understand what divergence means, keep looking at my
own personal forex trading examples on this page on a daily basis for
examples of divergence. Basically, what it means is where you see
MACD waves “waving” in the opposite direction to price action. That’s
why I connect the top of the waves (in a downtrend) and the bottom
of the waves (in an uptrend) to illustrate that the waves are “waving”
higher in an uptrend and lower in a downtrend – in the opposite
direction to where price is going.
Currency Trading Strategy Number 10:
Always “protect” your money by using 20-30 pip stops. Mental stops
are okay, but not if you are dead serious about using a “disciplined”
approach to managing your money. You will lose three out of ten
trades. The three losses should be kept to 20-30 pips. Your wins will
by far surpass your small losses, and that’s what stop-losses are all
about. Don’t be afraid to lose. Even professional batters strike out six
out of 10 times. Lions are only successful 20% of the time in their
chase for the kill. Professional golfers lose 95% of the time.
Professional poker players lose 50% of the time. So, your chances
are better at trading the forex, using my system of course, than in
any other venue. Even businesses have “bad inventory.” And, life in
general is not always “100%” for sure.

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Forex News, news and news!

News is the most important thing that you must know in forex, even you are a technical forex trader.
Forex movement is influenced by economic indicator such as financial i ssue, politic, security, service trade, import and export. Every single number of changing makes different moving in forex, so you must read news about a currency that you trade in forex. We have discussed about each currency factor movement in last chance, you can read it in this forex's tutor. Good luck!

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Easy Tips For Computer

Things you can do to keep your computer running smoothly.

1. Empty your recycle bin, delete the deleted files from Outlook, you can also delete files in your sent folder that are no longer needed.

2. Get rid of those cookies, they can take up alot of space. Marketers also use this information to track your buying patterns.

3. You can delete your Temp files these end with *.tmp you can use F3 in Windows to search for that extension.

4. Run Microsoft ScanDisk at least once a month.

5. Run Microsoft Defrag as well to keep your files in order on your harddrive.

6. Dust, dust is horrible for your system. If you smoke, dust more often, you can purchase canned air from Radio Shack to blow out your case, do it outside.

7. Purchase system utilities software such as Noton System Works or Registry Mechanic to keep your system running optimal.



8. Consider upgrading your RAM if your system is running sluggish.

9. Upgrading your video card can improve your gaming experience.

10. A new processor can do wonders to application performance.

11. Make sure Windows is done shutting down before you power off.

12. Use Anti-Virus Software and update your Anti Virus signatures.

13. If your using DSL or Cable use a firewall.

14. Install the latest drivers for your hadrware.

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BGX-Forex Sistem Trading

Following are the conditions and variables where the BGX approach works most effectively:
Suggested Currencies (a1,a53)
· EUR/USD
· GBP/USD
· USD/CHF
· EUR/JPY (a53,a158)
Bunnygirl originally recommended trading 4 currency pairs – EURUSD, GBPUSD, USDCHF,
EURJPY. These pairs were considered to be the ones most likely to respond to her methodology,
based on her own back testing of BGX. However, as recently as April 2005, Bunnygirl had
temporarily discontinued trading the cable (b340), which had previously been her favorite. Since
then, she has picked the cable back up, indicating the flexibility of BGX to work with changing
market conditions.

Recommended Trading Sessions (a11, a158, a520)
· European
· US
· Best Trading times from 06:00 GMT – 16:00 GMT (7 AM UK – 5:00 UK)
Bunnygirl maintained that the best times to trade were the European session and the open of the
US session. Specifically, she indicated that the best time for crosses was at the beginning of the
European session after a flat Asian session (a11, a99, a520). Additionally, she recommended
observing "no touch" days. These are days where the daily or 4-hour bar does not touch the
WMA5. She clarified that this was more relevant to the cable than the other pairs (b197).
Primary Charts
- 30m for crosses (a11)
- 5m for scalping and exiting (a11, a52)
- Daily and 4h for longer term trends (a334)
Bunnygirl uses 30 minute charts to determine crosses and 5 minute charts for exiting and scalping
using the "Gimme Bar" method. She used daily and 4-hour charts to plot resistance points, fibs,
and to check for no-touch bars (addressed later).
Chart Setup
· 30 minute candlesticks
· 5, 20 and 100 Period Weighted Moving Average lines
· RSI 14 indicator with 50 line
Preparation
1. Setup charts for targeted pairs.
2. On the daily and weekly charts, observe any significant patterns, support or resistance points,
and Fibonacci points.
3. Also add the WMA 5, WMA 20, and WMA 100 lines to the daily and weekly charts. Observe
the general trend and whether the price is near any of the WMA lines.
4. On the 30 minute charts, determine any near term highs and lows, chart patterns, or other
resistance points.
The BGX starts with a crossing signal. Crossing signals occur when the WMA 5 and WMA 20 lines cross
each other. Following are the appropriate signals and the ideal position of the WMA 100 line for each
signal:
Long Signal
· WMA 5 Crosses above WMA 20
· WMA 5 and WMA 20 above WMA 100
Short Signal
· WMA 5 Crosses below WMA 20
· WMA 5 and WMA 20 below WMA 100

The signal is not the entry point. Entering at this point may often result in a whipsaw – a rapid reversal
immediately following a cross, frequently occurring in ranging markets.
Also, while these examples show the
WMA 100 either above the WMA 5 and
WMA 20 lines for a bear cross, or below
the WMA 5 and WMA 20 lines for a bull
cross, signals can occur when the WMA
100 is not in this preferred position. There
are, however, rules for trading "into" the
WMA 100 line, which will be discussed
later.

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Money Management

There are three key elements to being a successful trader.
1. Money Management
2. Market Analysis and A Good Trading System &
3. Sound Personal Psychology
We will cover all three of these in this course. Each of these three key elements are
equally important and without all three you will not succeed as a trader. Borrowing an
analogy from Dr. Alexander Elder, a respected psychiatrist and professional trader, in his
book Trading for A Living he says These three essentials are like three legs of a stool
remove one and the stool with fall, together with the person that sits on it. Losers try to
build a stool with only one leg, or two at the most. They usually focus exclusively on
trading systems. This chapter covers the first of the three, money management.
Trading without proper money management is like trying to cross a desert with no water -
you won t make it. As traders, our first goal of money management is to insure survival.
The second goal is to generate a steady rate of return, and the third goal is to make a high
rate of return, survival however, is the first.
NEVER RISK YOUR WHOLE ACCOUNT on one trade is your very first rule of
trading. People who lose money frequently violate it by risking too much of their account
on a single trade. They continue trading the same or even bigger sizes during a losing
streak. Most losers get killed trying to trade their way out of a hole. Luckily, good money
management can keep you out of the whole in the first place.
Let me illustrate how the more money you lose the more difficult it becomes to try to
earn it back. If you have a $10,000 account and you lose 10 percent, ($1000 of your
account), you have to make 11 percent on the account which is now $9000 to recoup that
loss. If you lose 20 percent ($2000) you need to make 25 percent on what is now $8000
to come back. If you lose 40 percent ($4000), you need to make a whopping 67 percent
of what is now $6000, and if you lose 50 percent of your account which would make it
$5000 you need to make 100 percent just to recover your money. While losses grow
mathematically, the profits that are required to recoup them increase almost
exponentially.
This is why it is absolutely crucial never to let these kinds of losses occur, and the only
way to do this is to employ and adhere to strict rules of money management. Amateurs
often ask what percent profit they can make per week, per month, or per year trading
currencies. The answer to that question depends on their skills (or lack of skills) as a
trader, the quality of their trading system, and market conditions. Amateurs however
never ask a more important question: What can I do to insure that I do not lose my
money? You must be sure you are not going to lose your money before you worry abouthow much you are going to make. Proper money management is your best insurance
policy on your trading capital.
HOW MUCH TO RISK
Most traders get wiped out by one of two things, ignorance or emotion. Amateurs act on
hunches and spontaneous urges to stumble into trades they never should have taken
because of unfavorable conditions in the market. Those who survive this stage of naivete
learn to design a better way of trading. When they become confident, the second enemy
comes to their door. Confidence makes them greedy, they risk too much money at one
time, and a short string of losses blows them out of the market.
If you trade with half of your account on every trade, your ruin is absolutely guaranteed.
If you risk a quarter of your account on each trade, you also likely will never survive long
term in the market. A short losing streak will completely wipe you out. Even risking a
tenth of your account on every trade is being more risky than one should if they want to
stay in the market long term.
Professional traders cannot afford to lose more than a tiny percentage of their equity on a
single trade. An amateur has the same attitude towards trading as a foolish gambler has in
Las Vegas. The more money they bet, the more they ll make. WRONG, even the most
successful traders in the world have losing trades, even strings of losing trades and
traders have to insure that the least amount of their capital possible is to be risked each
time.
This is one of the areas of trading where it is absolutely vital to treat trading as a
business. It cannot be treated like a game if one wants to make money. No smart
businessperson would do something to risk half, a quarter, or even a tenth of their
business in a single transaction. Trading has to be dealt with in the same manner. The
general rule to follow is if you are day trading to never risk more than 2-2.5% of your
total equity on any given trade. This means that on every trade, if you trade with 10
percent of your equity, and you will have a stop loss that limits your losses to no more
than 25 percent of that amount. When doing long term trading, like with the 5Minute
FOREX System our stop loss and risk per trade is normally much higher, but this is
okay because of how infrequently you trade compared to day trading. The second rule is
to never have more than three trades open at any given time. So the maximum about you
will ever have at risk is 6-7% of your account when day trading. For those starting with
less than $10,000 the rule for them is to only trade one currency at a time until your
account reaches $10,000. If you are trading with an e-mini account then it is the same,
except you would trade one currency at a time until your account reaches $2000. Trading
in this way will insure that you do not ever wipe out your entire account with a short
string of losses, which can happen with even the best of trading systems and the sharpest
of traders. There is no system in the world that wins 100 percent of the time.
Most beginners have absolutely no rules of money management in their trading strategy.
They risk more capital on trades that look really good to them. They risk less capital on

trades they are less sure about. This never works in the long run because there seems to
be a frustrating version of Murphy s Law found in this aspect of trading: trades that you
risk more money on will almost always be the losers and trades that you risk less capital
on will almost always be the winners. So now we move on to another way to use money
management to insure a steady increase in profits.

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Factors Affecting EUR/USD

The Eurozone: The 11 countries that have adopted the euro in order of GDP: Germany,
France, Italy, Spain, Netherlands, Belgium, Austria, Finland, Portugal, Ireland and Luxembourg.
European Central Bank (ECB): Controls monetary policy for the eurozone. The decision
making body is the Governing Council, which consists of the Executive Board and the governors
of the national central banks. The Executive Board consists of the ECB President, Vice-
President, and four other members:
ECB President- Wim Duisenberg (Netherlands)
Vice President- Christian Noyer (France)
Board Member (Chief Economist)- Otmar Issing (Germany)
Board Member- Tomasso Padoa-Schioppa (Italy)
Board Member- Eugenio Domingo Solans (Spain)
Board Member- Sirkka Hamalainen (Finland)
ECB Policy Targets: The primary objective of the ECB is price stability. It has two main
"pillars" of monetary policy. The first one is the outlook for price developments and risks to
price stability. Price stability is defined as an increase of the Harmonized Index of Consumer
Prices (HICP) of below 2%. While the HICP is very important, a broad number of indicators and
forecasts are used to determine the medium term threat to price stability. The second pillar is
monetary growth as measured by M3. The ECB has a "reference value" of 4.5% annual growth
for M3.
The ECB holds a Council meeting every other Thursday to make announcements on interest
rates. At each first meeting of the month, the ECB holds a press conference in which it gives its
outlook on monetary policy and the economy as a whole.
Interest Rates: The ECB s refinancing rate is the Bank s key short-term interest rate used for
managing liquidity. The difference between the refinancing rate and the US Fed Funds rate is a
good indicator for the EUR/USD.
3-month Eurodeposit (Euribor): The interest rate on 3-month Euribor, deposits held in banks
outside the Eurozone. It serves as a valuable benchmark for determining interest rate differentials
to help estimate exchange rates. Using a theoretical example on EUR/USD, the greater the
interest rate differential in favor of the euribor against the eurodollar deposit, the more likely
EUR/USD is to rise. Sometimes, this relation does not hold due to the confluence of other
factors.
10-Year Government Bonds: Another important driver of the EUR/$ exchange rate is the
difference in interest rates between the US and eurozone. The German 10-year Bund is normally
used as the benchmark. Since the rate on the 10-year Bund is below that of the US 10-year note,
a narrowing of the spread (i.e. rise in Germany yields or fall in US yields or both) is theoretically
expected to favor the EUR/$ rate. A widening in the spread, will act against the exchange rate.
So the 10-year US-German spread is a good number to be aware of. The trend in this number is
usually more important than the absolute value. The interest rate differential, of course, is usually
related to the growth outlook of the US and eurozone, which is another fundamental driver of the
exchange rate.
Finance Ministers:
Germany: Hans Eichel, who took over when his more left-wing predecessor, Oskar Lafontaine,
resigned in March 1999.
France: Christian Sautter replaced Dominique Strauss-Khan who resigned in November 1999.
Italy: Finance Minister Vicenzo Visco, Treasury and Budget Minister Giuliano Amato.
Economic Data: The most important economic data is from Germany, the largest economy, and
from the euro-wide statistics, still in their infancy. The key data are usually GDP, inflation (CPI
and HICP), Industrial Production, and Unemployment. From Germany in particular, a key piece
of data is the IFO survey, which is a widely watched indicator of business confidence. Also
important are the budget deficits of the individual countries, which according to the Stability and
Growth Pact, must be kept below 3% of GDP. Countries also have targets for reducing their
deficits further, and failure to meet these targets will likely be detrimental to the euro (as we saw
with Italy s loosening of its budget deficit guidelines).
Cross Rate Effect: The EUR/USD exchange rate is sometimes impacted by movements in cross
exchange rates (non-dollar exchange rates) such as EUR/JPY or EUR/JPY. To illustrate:
EUR/USD could fall as a result of significantly positive news in Japan, that filters through a
falling EUR/JPY rate. Even though, USD/JPY may be declining, euro weakness spills onto a
falling EURUSD.
3-month Euro Futures Contract (Euribor): The contract reflects markets expectations on 3-
month euro-Euro deposits (euribor) into the future. The difference between futures contracts on
the 3-month cash eurodollar and on the euro-Euro deposit is an essential variable in determining
EUR/USD expectations.
Other Indicators: There is a strong negative correlation between EUR/USD and USD/CHF,
reflecting a steadily similar relation between the euro and the Swiss franc. This is because the
Swiss economy is largely dependent upon the Eurozone economies. In most cases, a spike (dip)
in EUR/USD is accompanied by a dip (spike) in EUR/CHF. The inverse also usually holds. This
relationship sometimes fails to hold in the event of data or factors pertaining solely to either of
the currencies.
Political Factors: As with all exchange rates, EUR/USD is susceptible to political instability
such as a threat to coalition governments in France, Germany or Italy. Political or financial
instability in Russia is also a red flag for EUR/USD, because of the substantial amount of
Germany investment directed to Russia

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The Sidus Method

What do you need?
- 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 8 WMA (in yellow)
The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the start
of a trend and the end of a trend.
Long term
The WMA & 8 WMA will show you when to enter a trend, they will also help you to see the strenght of
the trends.
Short term
Entry Signals
! You should only open a position, when the red tunnel is extremly narrow or crossed !
LONG: 5 WMA & 8 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 8 WMA upwards, then the signal is extra strong.
SHORT: 5 WMA & 8 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 8 WMA downwards, then the signal is extra strong.
Exit Signals
Signals that show the end of the chosen trend:
- Long: The price has reached a top and 5 WMA dives under 8 WMA
Close position
- Short: The price has reached a bottom and 5 WMA jumps above 8 WMA
Close position
Always close your position when boundry’s of the red tunnel cross eachother or when they become so
narrow that they are one! This is a clear sign of a trend reversal. After you see this, close your position
and open a new postion in the other way (If you were long, close, open a short postion)
When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention! As long as the red
tunnel boundy’s doesn’t cross eachother there is no problem, but often this is a sign that they will!

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What Time I Should Trade in Forex?

The best forex time to trade is depend on your currency that you want to be traded, and also how long is your time in trading forex.
Because forex is 24 hour non stop trading I am sure you won't have time to trade all day long, you must chooce your trading session.
In forex there are four session.
1. New zealand-australia at 04.00-12.00
2. Singapore at 9.00-15.00
3. Europe 14.00-21.00
4. Usa at 20.00-04.00

if you trade in forex asia currency like Yen Japan or Australian Dollar,its much better if you choose Asia session or Australia session.
And you may choose Europe or USA session for major currency/forex.

And don't forget to see what news is released at that time/session forex trading.

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Fundamental Analysis

FA or Fundamental Analysis use news to make trading decision. Ussualy a FA trader always surf to source of news like www.forexfactory.com, blooberg or other (you can find it in google)
The benefit of Fundamental Analysis are:
1. You can predict the price's changing without watching your computer whole day
2. A TA trader also using this analysis first.
3. Easier to predict from the data which is released.

But,balancing is the best and wise choice. Don't use juz one of them.

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Technikal Analysis VS Fundamental Analysis

Many people said that TA is much better than FA, so is the reverse.
But,its completely true.
Each analysis has its own benefit.
TA is an analysis to predict the price change by using chart and math pattern. We use line chart, candlestick chart and bar chart..

the benefit of TA are :
1. We don't need spending much time to make a trading decision,because we get the indicators from the broker's platform
2. We can use TA for short and long term trading.
3. TA is an instant way to predict because its not neccessary to find news about a country economic condition

we will continue about the benefit of FA next meeting..

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Forex Website Recomendation

To support your analysis and learn more about forex, you can visit these website and see the information, all about forex..
Forex Factory
Strategy Builder
Forex Street

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Simple Tips To Start Trading In Forex

I have some simple tips when you have decided trying this job.
1. Don't underestimate when you alredy know every single step in forex trading.
2. Don't ever think that forex is a difficult job to be learnt when you just read the introduction without knowing deeply
3. Try demo trading first at least

one month to make you become familiar with this job.
4. Limit your profit. Its for prevent you to be greedy,because greedy is the biggest factor in analyze failure
5. Use a simple strategy.
6. Use your own decision and your own rirk. But the best way to learn is by making mistake.
7. Good luck!

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How to get the most out of your Crash Course Forex Trading Workshop? by Winston Ng

Introduction - The Science of Learning
There really are only two kinds of trading workshops, one that wants to teach you trading and the other that just wants to skim you of your money. With enough due diligence, most of us would be able to find good forex trading schools out there that actually teach because they believe in helping you through your learning experience.

However, even for the best schools these days, the market for Forex Education has become very competitive, and the way most companies stay ahead is by compacting their education process. It results in lower overheads for the main trainer and these savings are passed on to the client.

Unfortunately, it then becomes like one of those seminars that you attend the whole weekend and come out all dazed. Somewhere in there, you knew that there was lots of content, but yet you feel dazed because you are stuck at where to start.



This is because most workshop attendees have the false belief that the learning begins and ends over the workshop weekend. There is an expectation that they are equipped to go trade on their own after two days of theory lessons.

The reality starts to set in when they encounter hiccups in their first few trades, they suddenly realise that they are so many things they do not know. Yet, it seems too troublesome to re-read the whole manual.

Consequently, most retail traders then give up on the whole process after being demoralized by the sense of overwhelm.

Identify the Areas that will really make a difference to you

Hence, to avoid coming out star-gazed at your next Forex Trading Workshop, you should set up a plan for yourself to revise and study your notes in a structured manner beyond the weekend.

This is the best way for you to systematically reinforce and implement the learning lessons into your life. Furthermore, the split-up sessions would give you time to master each level before you move on to the next level!

Create your own Homework Schedule

You can start planning your "tutorial" schedule during the weekend workshop itself! Firstly, separate the material content into 8 main areas. You can usually just take what is listed on the content and separate it into 8 parts. Most course providers would have created the contents with some basic flow.

Next, be aware to highlight segments that you feel you really need to read up further or mull on it further.

It is essential that this whole process is done during the workshop proper itself, because you will forget the essential parts once the workshop is over! Research has found that we only retain approximately 7% of anything we hear. In trading terms, that would mean a really large sum of money to lose!

Now that you have marked out all the key areas, and categorised the content into 8 major segments, you need to wait for break time to pull out your organizer.

You will want to give yourself at least an hour a week to read through the segments and another hour to work on the homework for that segment. Alternatively, with the advent of the internet and wikipedia, you can even research more on each topic.

The essence is that good traders build on a solid foundation and it is the depth of the journey that matters rather than the speed at which you get there! History is littered with glorious hyper-speed trading success stories who crashed as fast as they rocketed to fame.

Focus on Practice. Its like exercise, we don't feel like doing it. But the most growth will come at the last push-up

You will want to ensure that there is a lot of practice in all the skills that have a direct impact on your trading, even if your instructor did not spend time doing it! Nothing is so simple in trading that you do not need to practice it.

For example, many instructors will skim over Support Resistance lines and instead focus on secret strategies that they are excited to teach you. Nonetheless, you would be amazed how much you would learn by doing years of historical work on support resistance since all indicators would inevitably be affected by support resistance lines.

You can test your own confidence level by doing support resistance lines for other instruments like stock indices, and commodity charts, thus building a robust confidence in your ability to swiftly and effectively pick out patterns!

Troublesome, but small when you think long term

At this point you might begin to ask yourself why would you even want to go for a course if there is so much work to do by yourself? Well, our optimum learning process does not change regardless of where we live or how we live. When we want to learn anything new, we need to space it out with repetitions until we get the entire process in our daily habit system.

Research has found that once you do anything for 3 months, it becomes a habit rather than an experience. Our whole life is essentially made up of the habits that we live every single day. Successful traders like successful people have very empowering and profitable habits on a daily basis, to continually activate and refine their trading prowess.



Winston Ng
Chief Driving Instructor
Forex Driving School

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The First Step to Financial Freedom Though Forex Trading is to Learn and Master the Craft by William R. Alheim, Jr., CPA, MA

A single word of caution for all novice traders and investors who desire to put their stamp of authority on the lucrative Forex market and that is, education. A premature entry into the market without a comprehensive understanding of the various intricacies your about to face could and often does lead to a quick retreat from the markets. The facts are clear on this matter and they are over ninety five percent of the traders that enter the currency markets never make money. The reason behind this statement is to create awareness among FX traders, especially the new ones to make it a priority to learn everything you can about the Foreign Exchange Markets before investing substantial funds in the pursuit of the capital gains they offer.
Learning the details of currency trading fundamentals as well as the various techniques and the multiple trading strategies is not as difficult a task as it once was. There are now numerous exceptional online trading courses, online trading seminars and online trading video programs. Each of these educational tools differs from the next in their approach to teaching Forex trading. One is always going to be better than the next in a specific section of the market, but they all offer the same advantage and that is your ability to learn on a flexible schedule designed to meet your needs.


Some offer interactive sessions with a veteran Forex trader who performs the role of mentor. The consultant will guide you through the educational process in a systematic method in an attempt to develop your skills to the highest level before you begin trading. These lessons generally include an introduction to the Foreign Exchange Markets (FX,) detailed terminology, risk management through the hedging of risks, and trading sessions which provides the novice the feel of a real-world online trading platform..

The all-inclusive course materials might include some or all of the following; a supplementary guide, multiple computer CD's and DVD's which contain videos explaining various trading methods and tools such as charts pertaining to currency data. Other trading courses offer special privileges to their clients in the form of daily 'Question & Answer' session through video conferencing, daily trading demos and reviews, daily pivot data for major currency pairs and discussion forums.

Each and every course available to learn Forex trading will improve your knowledge and trading technique even if you're an experienced trader. Which one is best really can't be answered in one definitive statement due to the fact most of the high quality courses are always updating their material as the circumstances demand it. As long as you enroll in one of the many exceptional programs that are available today you are ensured to achieve a huge heads start towards your final goal of becoming a profitable currency trader.

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Introduction And The Explanation Of Forex by Tracy Lenyk

Introduction And The Explanation Of Forex
The foreign exchange market - or Forex - is also known as FX. The foreign exchange market is also commonly referred to as, the "FOREX". All three of these have the same meaning. The FX market typically involves one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market is the largest and most liquid financial market in the world, and includes trading between large banks, central banks, currency speculators , corporations, governments, and other institutions. The average daily volume in the global forex and related markets is continously growing and was has been reported to be over $4 trillion US.

The financial market and the forex markets are always changing. Transactions must be completed through a forex broker and a bank. Many scams have been emerging in the FOREX business, as foreign companies and people are setting up online to take advantage of people who don't realize that foreign trade must take place through a broker or a company with direct participation involved in foreign exchanges. The retail FX market is a subset of the larger foreign exchange market. When trading in the retail market verify that the broker or financial institution has direct involvement with the foreign exchange and forex traders. The market is open 24 hours a day, which allows you to design your trading hours around your daily commitments. It is very volatile, which is great for those people who are looking for day trading opportunities.



Cash, stocks, and currency are traded through the foreign exchange markets. The FOREX market will be present and exist when one currency is traded for another. Think about a trip you may take to a foreign country. Where are you going to be able to 'trade your money' for the value of the money that is in that other country? This is FOREX trading basis, and it is not available in all banks, and the forex platforum it is not available in all financial centers. FOREX is a specialized trading circumstance.

Tourist and visitors of foreign lands need to exchange currencies when they travel. These participants do not have the power to set prices. They just buy and sell according to the prevailing exchange rate. They make up a significant proportion of the volume being traded in the market.

This is the most perfect market because it has a large number of buyers and sellers all selling the same products. There is a free flow of information and there are little barriers to participate.

In the last five years, with the help of the Internet, FOREX trading and the awareness of FX trading has become all the rage. Banks are the number one source for FOREX trading to take place. Financial institutions have trained and licensed broker who will complete the transactions and requirements you set forth. The common practice is to pay commissions on the transaction

Small business and individuals, who are looking to make big money, can become victims of scams when it comes to learning about the foreign trade markets. FX is seen as a way to make a quick buck or two. People don't question their participation in such an event. But if you are not investing money through a broker in the FOREX market, you could easily end up losing a lot of your money.

A FOREX scam is one that involves trading but will turn out to be a fraud. That is true for any scam. With a FX scam you have no chance of getting your money back once you have invested it. If you were to invest money with a company stating they are involved in FOREX trading you want to read closely. Learn if they are permitted to do business in your country. Many companies are not permitted in the FOREX market, as they have defrauded investors before.

There are many software applications that will aid you in making trades, assist you in learning about the foreign markets and in practicing. So you can prepare yourself for following and making trades.

Want to learn forex? You will need to rely on a program or software forex that is really going to make a difference. A good forex software application will help you with your forex trading strategy. Consult with your financial broker or your bank to learn more about FOREX trading, the FX markets and how you can avoid being the victim while investing in these markets.

http://www.forex-money-exchange.com

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Automated Forex Trading - Is It For A Newbie? by Mary Guthrie

There has been a growing interest in forex trading software programs ever since the introduction of automatic systems became common and accessible. Not long ago this was the zone where the players were large investors, be it banking concerns or other financial organisations, but now even mid and tiny level investors are getting attracted towards this field. This is the place to where the dealing of currency from one country to another happens. This is the marketplace which witnesses trillions of dollars being traded non-stop, making it the single largest financial market places in the world.

What with the advent of the internet and state-of-the-art computer technology, anyone having internet, backed by forex dealing computer software and some basic knowledge of accounting and brokering can do dealing with forex. This market never closes, and to know about what is happening in the market, you have to keep a constant monitoring system in place. Picking up a currency of your choice as well as its asking and selling price in advance of any purchase can be aided by these automated systems. If you want your transaction being attended to instantly, all you need to have is a small sum for investment and a broking agent.


You do not have to be an expert to earn profits from this trade because the automatic forex trading software programs systems take care of all the work for you. When supervised accounts use the automated dealing systems, the program can easily control everything for you. Since you do not get involved in dealing yourself, you save a lot of time using this process. Moreover, the automated trading system helps you manage multiple accounts simultaneously which you cannot expect to handle manually. dealing in of various marketplaces with numerous systems is allowed by these programs.

You need not be present and can choose to trade any time as the forex dealing computer software allows you that flexibility and convenience. Though you are not always connected to your computer, it doesn't actually mean that you are more likely to miss out any profitable opportunity. Not only does this make working with multiple systems a easy, it also gives you the chance of marshalling many of your forex strategies instantly. The activation of each system is planned to be triggered by a number of particular deal elements so getting the maximum profits with minimum risks, as well as extending your investment, is feasible.

Perhaps the most wonderful thing about the forex trading computer software is that it has nothing to do with human feelings or ingredients, which often stand as a barrier while taking methodical and intellectual dealing decisions. Handling and monitoring a number of currencies all at once as well as trading them any time you like are the powers that will be given to you.

as this is also something that you just can't get away from when using the software. Even when one used a highly sophisticated automated system, it still does not guarantee profits, since the forex marketplace is changeable and unpredictable. The forex dealing software can be changed and made more personalised to fit your own needs.

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The Things We Must Do Before Invest In Forex

There are many things that we must considere before playing in forex trading, such as :
1. Don't under estimate when you already know about forex, even much.
2. Don't ever thinking that forex is a difficult job before you try it.
3. Learn aabout forex as much as possible. so that you can avoid big mistake ini trading decision
4. Learn just a simple strategy or technik. because, kompleks one just make you confuse. simple is the best strategy to win ini forex. but it doesn't mean learn nothing. just get the poin in forex investment

i hope it could help you to make a decision

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How To Get Started in the Forex Market by matthew faulkner / http://tinyurl.com/5uhbcz

In today's world, it seems that almost any topic is open for debate. While I was gathering facts for this article, I was quite surprised to find some of the issues I thought were settled are actually still being openly discussed.


You can see that there's practical value in learning more about Forex Market. Can you think of ways to apply what's been covered so far?


So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.



To get started in learning about forex trading, you will need to locate the forex trading software, http://tinyurl.com/5uhbcz the internets most powerful software, education-learning system to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the 'game', you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.

You will open an online 'account' using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.

The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets.

There's a lot to understand about Forex Market. We were able to provide you with some of the facts above, but there is still plenty more to write about in subsequent articles.

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Keep Your Shirt On- Skirt Those Forex Scams

Whenever there is an opportunity to make large amounts of money, there will be people who are eager to jump right in and start making money. And where there are people who are eager to get rich quick with a minimum of effort on their part, there are fraudsters waiting to take their money. Experienced traders are wise enough to avoid the frauds – it’s the new traders who are most vulnerable to the forex scams that are slipping into the currency exchange market
The U.S. CFTC (Commodity Futures Trading Commission), which regulates futures and commodities trading, warns new investors to be wary of frauds and scams that promise huge profits from your investments, in and out of the Forex market. The CFTC has issued several Consumer Fraud Alerts in connection with foreign currency trading. They offer the following tips to help you avoid being scammed.

Be skeptical of high-profit-low-risk come-ons.

“I made $1900 in one minute!” touts one sidebar ad for a Forex trading company. Ads that promise high returns on small investments with little or no risk to you are tempting bait. The fact is that while there are certainly big profits to be made in forex, there are correspondingly large losses. And most novice traders drop out of active trading by the end of their first year because they can’t afford the risk.

Be suspicious. Period.

Before you part with a penny, thoroughly check out the company or trader you’re planning to do business with. Check the CFTC’s consumer fraud alert page. Check to see if the company is registered with the CFTC, or is a member of the National Futures Association. Check to see if there’s any disciplinary action against the firm or company. Get even more basic. Get a valid address and telephone number, and verify that it belongs to the company. Check to be sure the person you’re dealing with actually works for the company. Especially if you’re doing business on the Internet, it’s very easy for a scammer to fake credentials.

Be wary of sending money over the Internet.

The Internet has made it incredibly easy for scammers to operate. It only costs $6.95 a month to have a professional looking web site hosted – that’s pennies a day to reach millions of potential marks. Before you part with credit card numbers, bank account transfer permissions or wire transfers, be sure to check out the company with all the authorities listed above.

Beware high pressure sales tactics.

Legitimate dealers don’t need to contact you with unsolicited email, or pressure you into doing business with them. If someone is pushing you to invest right now, tonight, this moment, it should set off huge warning signals in your head. A real dealer is more concerned with keeping you as a customer for the long haul. He’ll be patient while you check out his credentials and reputation. A phony dealer can’t afford that luxury – he needs to get you on the hook right now, or risk losing his score.

Be cautious of companies that tell you they’ll trade for you on the ‘interbank’ market.

The interbank market is a term for a loose network of currency traders that include banks, financial institutions and large corporations. Fraudulent currency trading firms often tell customers that they’ll trade for them on the interbank market where the prices are better. It should be a warning signal to you to stay away.

While technically not ‘scams’, you should also be wary of paying good money for training courses that promise you systems that are ‘guaranteed’ to earn you high profits. If the course advertises that their system will earn you huge profits with minimal risk, or guarantee you 40% return on your money in six weeks, take the promises with a huge grain of salt. Experienced traders understand that the forex market is a time market – while it’s possible to make large amounts of money in short-term trades, finding those profitable trades is a matter of being in the right place at the right time… which means putting in the time and the effort to be there.

They also understand that they’ll lose more often than they win – the trick is to keep your losses short and your profits long. Any company that guarantees that you’ll make a profit on all or most of your profits is coloring their advertising. Stick with trusted companies whose credentials you can verify and whose background you can check.

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Forex Investment

You may not be involved in Forex trading directly, but the fact remains that you are affected by what occurs in foreign exchange trading every day.

Here are some examples of how this constant< flow of currency trading makes an impact on your daily life. Perhaps the most obvious impact is that currency trading makes an impact on the price you pay for goods and services.

Should you happen to live in a country where the comparative value of your currency falls in comparison to that of other countries, you could find yourself paying a higher price for items that you are used to purchasing at a relatively inexpensive rate.

The reason is that the rate of exchange for imported goods would have changed and chances are the brunt of that change will be passed on to you, the consumer.

These goods may include anything from petroleum products to underwear.

Another way that changes in trading currency impact you is the simple ability to obtain goods and services.

A severe enough change in the rate of exchange could mean that it is no longer viable for certain types of business commerce to continue.

The result will be that you may find that some items that you are used to purchasing regularly will at first become much scarcer and carry a higher price tag, but ultimately no longer be available to you at all.

This will require you to change your spending habits and settle for other goods that you may consider being of lesser quality.

An extreme example would be if you were no longer able to get the imported car parts you need for your vehicle and had to turn to either generic replacements or used parts.

Your investments may also be impacted as well.

While the stock exchange is a totally different process from currency exchange, the fact of the matter is that they do impact one another.

Adverse changes in the rate of exchange can mean your stocks may slow down their process of earning money for you, especially if the stocks happen to be investments in retail companies or any entity that relies heavily on foreign trade.

Changes in your portfolio of course make a difference to your overall financial health, and may especially hurt if your stock portfolio happens to also be your form of retirement plan.

Many people do not give the trading of currency a second thought. Nevertheless, this process that is in a constant flow every day does reach out and touch the lives of each of us in some way. We may find ourselves paying higher prices for goods or services that we are used to enjoying.

In some cases, we may have to substitute for a lesser product, due to lack of availability. We may see our overall financial health impacted, even to the point of wondering about our future and retirement. Keeping up with Forex trading is a good idea for all of us.

It should be noted Forex trading involves substantial risk of loss and is not suitable for all investors.

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Forex Benefit

Forex trading is fast becoming the top method of making money on the internet and plenty of average people are trying their hand at becoming millionaires. For most people, forex trading is a much needed source of a second income, to supplement their current single income from their main profession. However, the true potential to become very wealthy is not tapped by most such investors and they earn mere pennies on the dollar, compared with what they could be earning. While everyone has their own forex currency trading system, this will be in proportion to your risk appetite and will only bring the returns that you strive for.

While there are many ways to invest your money in currency, most people play safe by either investing small amounts or spreading their money very thin across the various currencies they are invested in. This makes for a very small return but practically no risk potential, since the bases are mostly covered so that if one currency depreciates, the other appreciates and the losses are minimal. However, clearly this will never make the forex trader a millionaire.


Life is short, and most forex trading millionaires made their money fast off the forex market. These individuals are generally highly leveraged, because they know that money makes money, and the more money they invest, the greater the risk and the greater the potential reward. Also, betting on unlikely currencies is risky and can have a huge potential upside.

So what exactly will leveraging yourself mean for you? You can start with a portfolio, meaning that you put your investment towards buying a part of the forex trading. Then, you buy shares of the forex trading the world over, depending on what countries appeal to you. The prices of these shares may rise slowly to increase your portfolio, and you are still playing safe. Once your total portfolio value goes over the 5000 dollar mark, you as a forex trader can apply for something known as a console, which now puts you in the position to act as an agent for others. At this point, you can process exchanges for small investors who want to buy and sell currencies through you. For each transaction processed, you will earn a fee of 6% and this can roll into your portfolio, increasing further, making your status as a forex trader more credible.

Other than an unlikely event such as a war or natural calamity, nothing on the forex market will give you a sudden unexpected windfall. Do not expect to become a millionaire over night. You will have to plan and strategize, and most importantly, leverage yourself, to truly make a lot of money. The forex market will generally move like the stock market, in small digits and only when you have plenty of money spread out on the forex market do you stand a chance of making a great deal of profit.

While this type of trading is not for the faint hearted, experience in forex trading will bring some confidence to your forex trading strategy, especially as you learn which systems work for you and which don't. As your level of confidence grows, the process will seem much less daunting. However, it is great to be cautious and be sure of any risks you take. That said, do remember that millionaires are always highly leveraged in the forex market – take calculated risks.

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Introduction To Online Forex Trading

Today and average person can learn forex trading. The sale or trading of currency is at the heart of what forex is all about. As exchange rates fluctuate and the economies of countries go up and down, these investments in cash behave in value very much like the regular stock marketWhen you are in the Forex trading market you will find it operates 24 hours a day giving you access to trades when ever you want. Unlike with other markets, such as the stock exchange, you can continue dealing with the currency trading market without worries over it closing at the end of the day. The beauty of forex websites is that they allow you to monitor the market in real time when ever you choose. This really helps in the learning process.

You'll also be provided with tools that will help you understand the mechanics of trading. This is a clear advantage because you can hone your trading skills before laying down your own money in the market.

When you think of it, the forex firms are training you to become skilled at trading for free by providing guidance, demos and news at no additonal cost. It won't take long to feel comfortable in trading. Soon you'll be making money investing as little as $300.

Thanks to the internet, learning the currency market has made it easier for even a regular guy to successfully earn money. Currency representatives, called forex brokers, will most likely provide you with access to the forex market.

Similar to stock brokers, forex brokers are there to help. They can consult with you and provide market information and trading strategies. The advice extends to everything needed to become successful trading forex which includes technical analysis and fundamental analysis data. It is only natural that large financial institutions try to monopolize the market because it provides such a solid return on investment.

Profitable results are there for the taking even for an individual investor with a few dollars, because of the easy access to the internet. As I stated earlier, the online forex companies have been making powerful free tools available to educate and improve the knowledge of new investors.

The best way to choose a forex broker is to decide on what you need at the moment. Many forex internet sites provide a bevy of tools for the beginning trader including detailed research, online trading simulators, and expert technical advice. You will find that some sites offer access to experienced professional forex traders that make themselves available for questions and advice to forex traders at various skill levels. All of these tools are available to beginners to try out.

While many people who actively trade today have had to learn to use the tools available on the internet in the midst of doing business, these tools will be second nature to those who will come after them. Future generations of forex traders will know how to use the full power of forex trading tools that are available to them and they will be the most powerful group of investors that any economy in any market has ever seen.

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