Think in Trading http://www.thinkintrading.com Trading System Blog Sat, 27 Oct 2012 00:26:18 +0000 en hourly 1 Forex Fundamental Analysis http://www.thinkintrading.com/forex-fundamental-analysis/ http://www.thinkintrading.com/forex-fundamental-analysis/#comments Sat, 27 Oct 2012 00:22:34 +0000 Max http://www.thinkintrading.com/?p=1334
  • Forex Forecasts: 7 Top Fundamental Indicators
  • Introduction to Fundamental Analysis
  • Forex Trading Signals: Fundamental Or Technical?
  • ]]>
    Factors that Influence the Fundamental Indicator
    When it comes to the Forex market a lot will depend on your ability to judge how the currency will perform in the coming times. A currency that you expect will rise more in value is worth holding on to while one which is expect to fall is best avoided. For this purpose fundamental indicators are often employed by many traders.

    What are fundamental indictors?
    Also known as non -technical indicators, fundamental indicators take into account the political and economic conditions of a country and try to predict if the currency of the country will rise in value or not. With the knowledge if the currency is undervalued or overvalued, the Forex trader can develop trading strategies that will help benefit from either of these situations.

    What are the factors that influence fundamental indicators?
    There are many factors that will need to be taken into account when one is looking to forecast how the currency will perform via the fundamental analysis method. Some of these factors and their indications are discussed below –

    • High interest rate – high currency performance – If the interest rate offered by the country is high, they are going attract foreign investments and this will mean that the currency of the said country will appreciate. On the other hand if the interest rates offered by a country are low then the foreign investment will stay away and this will automatically result in a downfall in the currency value.
    • High exports – high currency performance- The trade balance will definitely affect the currency value of a nation. Countries where the exports are higher than the imports will thrive and their currency is going to rise in value. On the other hand, nations that are importing more while exporting less are going to see a downfall in their currency.
    • High GDP – high currency performance – The gross domestic product of a country must be high in order for its currency to rise in value. Countries where the GDP is low indicate a weak economy and this is a clear sign that the currency of the country is going to take a blow and fall in value.
    • High employment rate – high currency performance- Countries where the rate of employment is high clearly indicate that the economy is thriving and this means that the currency is also going to rise in value over time. Similarly if there are too many individuals without a job this goes to show that the situation is not good and the currency will fall in rate.
    • High inflation – low currency performance- In case the inflation rate of the country is high, this will automatically mean that the currency of that nation is going to weaken in value. A high inflation rate indicates fluctuations that are not considered good. Of course a steady rate of inflation is bound to be in order, but in times where the jumps are too big and too sudden, it does spell doom for the currency of the country.

    Keeping an eye on these factors will help to decide which way the currency of a country is headed and this is known as fundamental analysis.

    Related posts:

    1. Forex Forecasts: 7 Top Fundamental Indicators
    2. Introduction to Fundamental Analysis
    3. Forex Trading Signals: Fundamental Or Technical?

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    Online FX Trading For Beginners http://www.thinkintrading.com/online-fx-trading-for-beginners/ http://www.thinkintrading.com/online-fx-trading-for-beginners/#comments Fri, 10 Aug 2012 00:20:42 +0000 Max http://www.thinkintrading.com/online-fx-trading-for-beginners/
  • Online Foreign Currency Trading For Beginners
  • Currency Online Trading For Beginners – Where to Start
  • Commodity Forex Online Trading Secrets
  • ]]>
    Online FX trading is also known as forex, foreign exchange or currency trading. It’s a speculative form of investment trading, a way of making money by trading on changes in currency prices. If you are interested in getting involved, it is very simple these days because it can be done on your own computer from your home or office.

    If you are not sure how you could make money from currency price changes, it is very simple to explain. You probably already know that different countries use different currencies and these have a value that changes. For example you may hear about the dollar strengthening, which means that the value of the dollar is rising compared with other currencies. The value of the dollar usually rises when the American economy is strong compared with other countries.

    Currency prices are constantly changing, going up or down in response to news, economic reports or market activity. This means that a forex trader can deal in currency to make a profit, just a stock trader would do. You buy when a currency is rising and sell when it is falling, in just the same way.

    The difference from stock trading is that currencies do not have an absolute value but are always priced relative to another currency. When you buy or sell, you are in fact always exchanging one currency for another. This means that you will always deal in a pair of currencies, which might be the euro and the US dollar. This pair is usually written EUR/USD and it has the highest trading volume of any forex pair.

    Online FX trading uses leverage and margins to increase the value of trades. This means that you only need a small balance in your trading account to control very large sums. The most common leverage used by forex brokers is 100 times. This means that $100 in your account can control a position size of $10,000, or $1000 can control $100,000. As you can imagine, when you are dealing with these kinds of figures a small percentage change in the price can come out to a big profit or loss.

    Because of the risk of loss, it is important to understand how and why currency prices change and to follow a good system which will give you clear signals on when to open and close a trade. Most of these systems rely on analyzing charts and mathematical indicators which you can access from inside most broker accounts.

    Alternatively you may choose to use an automated forex trading system to trade for you. These are the forex robots which have become very popular over the past few years as they have become more and more accurate. There is still room for error and it is important to understand the settings of your robot thoroughly and test it in a demo account before you start online FX trading for real.

    Related posts:

    1. Online Foreign Currency Trading For Beginners
    2. Currency Online Trading For Beginners – Where to Start
    3. Commodity Forex Online Trading Secrets

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    Foreign Exchange Broker: What You Need To Know http://www.thinkintrading.com/foreign-exchange-broker-what-you-need-to-know/ http://www.thinkintrading.com/foreign-exchange-broker-what-you-need-to-know/#comments Wed, 08 Aug 2012 00:35:04 +0000 Max http://www.thinkintrading.com/foreign-exchange-broker-what-you-need-to-know/
  • Foreign Exchange Broker Comparisons
  • Forex Broker Secrets: 7 Ways To Find The Best Broker
  • Foreign Exchange Brokers: What To Look For
  • ]]>
    When it comes to choosing a foreign exchange broker, there is a lot of information that a trader needs to know. There are so many brokers out there these days since the market opened up to retail traders. Many brokers have dropped their minimum investment so that the average person can get into forex trading, and even more new companies have sprung up as if from nowhere.

    So how do you choose between them? One way is to look at their business model, which can have a big impact on your individual trading results. Here are four types of foreign exchange broker that you need to know about.

    1. NDD (No Dealing Desk)

    In the old days, brokers had their own dealing desks through which they would place orders for clients who normally called in with their instructions. The time and skill that this required meant that clients had to have a large investment fund to make it worth the broker’s time. That is why the ‘standard’ forex account size usually has a minimum investment of $10,000 to $50,000 or more.

    However, as we have seen, the internet has changed all of that. There are still some brokers who only operate standard size accounts but they are much less likely to use their own dealing desk. Instead, traders manage their own accounts through the broker’s trading platform. That is the software on their website that you can access to place your trades. The platform connects up with a liquidity provider that matches the order with a counterbalancing order in the market.

    The spread in this situation is naturally low because of the competition between liquidity providers. However, brokers will often increase it a little so that they make money on the deal.

    2. ECN (Electronic Communications Network) Brokers

    The ECN is a large network on the internet which matches trades. Most market makers connect to the ECN but some brokers will let you access it directly. Again the spread here tends to be low but brokers may add to it with fees.

    3. Market Makers

    Unlike traditional brokers, market makers will first match your order themselves and then cover their risk by opening a position in the electronic communications network. This allows them to set their own prices – not only spread, but the currency prices that you see on their site.

    Market makers have some disadvantages. The main one is that in some cases, especially if you are using scalping strategies, they may not be happy if you are successful. This is because if they did not fully cover your position, they can lose out on your successful trades.

    The main advantage, on the other hand, is that they usually have the lowest minimum investment levels. This means that most beginners start out with a market maker rather than a traditional foreign exchange broker.

    Related posts:

    1. Foreign Exchange Broker Comparisons
    2. Forex Broker Secrets: 7 Ways To Find The Best Broker
    3. Foreign Exchange Brokers: What To Look For

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    Forex Trading Forum Hints And Tips http://www.thinkintrading.com/forex-trading-forum-hints-and-tips/ http://www.thinkintrading.com/forex-trading-forum-hints-and-tips/#comments Mon, 06 Aug 2012 00:23:32 +0000 Max http://www.thinkintrading.com/forex-trading-forum-hints-and-tips/
  • Forex Forums For Free Forex Trading Advice
  • What To Expect From A Forex Forum
  • Forex Software Hints And Tips
  • ]]>
    A forex trading forum is a popular place for beginners to go when they are just getting into forex trading. There are many internet forums and you can discuss any aspect of currency trading there. But should you trust the answers that you get? Are these online discussion sites really a valuable source of information, or just a drain on your time?

    Forums began in the time of the Roman empire. At that time they were a physical space in the middle of the city a little like a market place but without a market. The men of the city would meet there to hear and debate matters of importance such as politics and the law.

    Since then the word has come to mean any location or group in which discussion takes place and opinions can be aired. On the internet, it has gradually taken over from the term ‘bulletin board’ which was used for the old style of sites where members could post messages. The new format of forums is much easier to navigate and people can more easily get involved in discussions than they could on bulletin boards.

    This means that it is very easy to either start or join in a discussion. If you have a question you can post it and you are almost certain to see replies. For some aspects of foreign exchange trading this can be very useful.

    For example if you are thinking of investing money, time or both in a forex system, ebook, robot or training program, it can be very useful to check a forex trading forum for reviews and feeback from people who have already used the product that you are considering. Use the search facility to see if there is already a thread about the product and if not, start one by asking if anyone has experience of the product. Feedback from other users can help you decide whether something would be suitable for you or not.

    It is best to find several different opinions before making up your mind. Remember that one person’s opinion is only one view and you might not agree with that person. They might have been looking for something different, or they might have had unusually good or bad luck with the product. If you find a lot of different opinions it is much more helpful. You can see what kind of person has a good experience with the product and what kind of person has a bad experience.

    If you have questions about trading, a currency trading forum can be useful too. But again you need to think about who is replying to your question. You might not necessarily want to trust everybody.

    Sometimes different users will disagree with each other because they have different ways of making money with FX. There are many different methods and when you get conflicting advice it can be confusing. So do not be distracted by all the people who will tell you that their way is best.

    It is very easy to sound like an expert in a place where nobody knows you. All a person has to do is to make a lot of posts and sound experienced. In fact a high post count often just means that the person likes hanging out in the forum and does more talking than trading. Some users may never even have traded for real at all, but only used demo accounts. Remember that you do not know who these people are. You should not automatically trust everybody’s opinion.

    Finally, take care that you are not becoming an addict yourself. It is very easy to waste a lot of time following random discussions and chatting. Have a clear purpose when you enter a forex trading forum and leave when you have found what you were looking for.

    Related posts:

    1. Forex Forums For Free Forex Trading Advice
    2. What To Expect From A Forex Forum
    3. Forex Software Hints And Tips

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    Forex Trading: The Best Way To Make Money Online? http://www.thinkintrading.com/forex-trading-the-best-way-to-make-money-online/ http://www.thinkintrading.com/forex-trading-the-best-way-to-make-money-online/#comments Sat, 04 Aug 2012 00:29:33 +0000 Max http://www.thinkintrading.com/forex-trading-the-best-way-to-make-money-online/
  • Make Money Online From Home With Forex Trading
  • Make Money On The Internet With Forex Trading
  • Online Foreign Exchange Trading: Make Money From Home
  • ]]>
    With more people every day giving up their day jobs to work from home, it is not surprising that everybody wants to find the best way to make money online. Having your own business or working freelance can give you financial freedom while you stay home with your family.

    There are so many options it can be hard to find the best one for you, but in our opinion forex trading is right up there among the best of them. Why? Well, let’s take a look at the advantages of forex, otherwise known as foreign exchange or currency trading. What’s in it for you?

    1. When you start out, you can trade currency at the same time as holding down a nine to five job, because the forex market is open 24 hours a day. It’s even better if your day job involves working weekends because the forex market is closed at that time.

    2. Starting out is simple. All you need is a computer and a broadband internet connection and you can sign up with a broker or market maker to start trading through their forex software platform.

    3. You do not need a lot of money to get started. In the past, forex trading was only for the big financial institutions and the rich. These days, since the internet opened up the market to everybody, brokers are letting you get started with a few hundred dollars or even less.

    4. There is no need to spend thousands of dollars on training. You can learn fast and cheap from online forex courses that will explain how the market works and how to operate a profitable trading system. You can even gain experience with no risk by using a practice account, available for free from most brokers.

    5. You are in complete control of your schedule. Depending on the system you choose, you may only need to check the markets once a day. On the other hand if you like quick profits and enjoy the excitement of a fast moving market, day trading systems can give you several profitable trades every day.

    6. The forex market is so huge (bigger than all of the world’s stock markets added together) and there are so many possible currency pairs to trade that you will almost never suffer from a lack of trading opportunities.

    7. Forex brokers offer up to 200 times leverage which means that you can control sums that are 200 times the amount that you have put at risk. This means that a small account balance has the power to make you a lot of money. It also means that you can lose very fast, so be sure to set stops to minimize any losses. Like all lucrative speculation, forex trading is risky!

    Of course if you are not a risk taker and like the security of earning the same salary every month, then forex trading will not be right for you. A successful trader may earn $20,000 one month and $5,000 the next, or even make a loss. But this is true of just about anybody who works for themselves and it does not affect that fact that forex trading is arguably the best way to make money online.

    Related posts:

    1. Make Money Online From Home With Forex Trading
    2. Make Money On The Internet With Forex Trading
    3. Online Foreign Exchange Trading: Make Money From Home

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    Forex Trade Signals For Easy Forex Trading http://www.thinkintrading.com/forex-trade-signals-for-easy-forex-trading/ http://www.thinkintrading.com/forex-trade-signals-for-easy-forex-trading/#comments Thu, 02 Aug 2012 00:22:04 +0000 Max http://www.thinkintrading.com/forex-trade-signals-for-easy-forex-trading/
  • Free Forex Signals: Are They A Waste Of Time?
  • Forex Trading Signals, Indicators Of A Better Timing Trade
  • Forex Trade Signals – Are They Any Good?
  • ]]>
    Forex trade signals can provide you with an easy way to trade the currency market … as long as you understand what you are getting and what to do with it. There are many providers of forex signals out there and not all of the services are the same, so it is important to know what you are signing up for.

    Many companies provide forex alerts that tell you when conditions are right for trading. In some cases they are aimed at beginners and will advise you on stop losses, profit aims and number of lots for the trade which will vary according to the strength of the observed trend.

    Acting on signals like these is almost like using a forex robot, except that you do control the trade yourself. This has the advantage that the final decision is yours, but it also has the disadvantage that you may not be able to act and access the market at the time that the signal comes through, while a robot would do that automatically for you.

    If you are comparing forex signal providers with the aim of following their trading plan, you will want to look at their results, if published. This is the result of making trades in the live market based on the signals. It will usually assume that all of the recommendations were followed.

    When you are looking at results, keep in mind that they are often based on a standard forex account with a lot size many times bigger than most beginners would start out with. This means that you might only have a small fraction of the profits shown. Also, they will make assumptions about costs which you should check carefully. They may assume a smaller spread than you can expect on a mini or micro account.

    Finally, do not be too concerned with recent results, but look at the long term trading profits or losses. Be suspicious of any company that only provides results in the very recent past. Remember that there are no guarantees with forex trading. You could pay a lot for forex signals and still end up losing money. A lot depends on how you manage your funds.

    Other forex trade signals will be less prescriptive and simply announce market conditions or the results of indicators, leaving you to make your own trading decisions. In this case you have a lot more control and of course you need to understand the market yourself in order to make the best use of these alerts. Many experienced traders make use of a service like this so that they can be away from the computer for most of the day without missing good trading opportunities.

    Signals are usually sent by email and/or SMS. Which you prefer depends on you. SMS is better if you check your text messages more often than email, but you may be a long way from a computer when you receive the text. It can be frustrating if you receive forex trade signals and then cannot place the trade.

    Related posts:

    1. Free Forex Signals: Are They A Waste Of Time?
    2. Forex Trading Signals, Indicators Of A Better Timing Trade
    3. Forex Trade Signals – Are They Any Good?

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    MACD Chart In Forex Trading http://www.thinkintrading.com/macd-chart-in-forex-trading/ http://www.thinkintrading.com/macd-chart-in-forex-trading/#comments Tue, 31 Jul 2012 01:07:37 +0000 Max http://www.thinkintrading.com/macd-chart-in-forex-trading/
  • FX Technical Analysis: What Is An MACD Indicator
  • FX Charts: How To Use The MACD Indicator
  • How To Read A Candlestick Chart
  • ]]>
    The MACD chart is normally shown below the candlestick chart and provides useful forex trading indicators. MACD stands for Moving Average Convergence-Divergence. As the name suggests, it shows the convergence (coming together) or divergence (moving apart) of two exponential moving averages, one of which is fast and the other slow.

    The indicator was invented by a New York stock analyst named Gerald Appel in the 1970s. Designed for the stock market, it nevertheless can be applied very well in other markets including forex.

    On the MACD chart you will see two lines. One tracks the average of the difference between the two moving averages mentioned. Example settings for those might be 12 and 26 period moving averages. The other line on the chart is an exponential moving average of the MACD line itself, with a typical setting of 9. This is used as a signal line.

    There are two simple ways to use the MACD. The first is to open a trade on the crossover of the two lines. If the faster line (the signal line) crosses the other from above, that can be treated as a signal to buy. If it crosses from below, that can be a signal to sell.

    This can form the basis of a simple forex trading system which can be refined by checking the MACD in a second time frame. For example in day trading, look for the crossover on an hourly or 30 minute chart before moving in to the shorter time frame to make the trade. Then watch the higher time frame again for a signal that the trend is ending.

    It is always best to consult the higher time frame first when trading on the basis of this indicator. This helps to prevent problems caused by trading against a longer term trend.

    MACD can also be used to indicate overbought and oversold markets. When both lines are significantly above zero, the market can be said to be overbought. When they both fall significantly below zero, it is oversold.

    The chart also includes a histogram giving a visual indication of convergence or divergence between the two lines. If the histogram is growing smaller, the lines are coming together. This can indicate that a crossover is approaching. The histogram is at zero when crossover occurs.

    MACD is a lagging indicator and is prone to whipsaws when the market changes. Traders can be badly caught out. This is particularly true in the stock market where traders are relying less on the MACD these days. However, the MACD chart is still a useful provider of trading signals in many other markets, including forex.

    Related posts:

    1. FX Technical Analysis: What Is An MACD Indicator
    2. FX Charts: How To Use The MACD Indicator
    3. How To Read A Candlestick Chart

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    Metatrader 4 Expert Advisor: What You Need To Know http://www.thinkintrading.com/metatrader-4-expert-advisor-what-you-need-to-know/ http://www.thinkintrading.com/metatrader-4-expert-advisor-what-you-need-to-know/#comments Sun, 29 Jul 2012 01:02:29 +0000 Max http://www.thinkintrading.com/metatrader-4-expert-advisor-what-you-need-to-know/
  • Why Not To Get A Free Forex Expert Advisor
  • Expert Advisor Review Tips
  • Metatrader EA: What You Need To Know About Expert Advisors
  • ]]>
    The Metatrader 4 expert advisor range is the most popular range of forex autopilot software. There is a wide choice of expert advisors designed to run on this free downloadable platform or framework that sets a structure for EAs to be built on. Whichever expert advisor (EA) you choose will act as a robot on the forex market, trading for you according to the boundaries that you set.

    Clearly this has many advantages over making all of the moves in a trade yourself. The EA does not need breaks for eating, sleeping and human contact. Neither does it suffer from human weaknesses such as fear and over optimism which can distract us from our systems and lead us to exit a trade too soon or not soon enough. Once you have set it up it will obey your system to the letter all the time that it is online.

    An EA will often protect your interests when you could not do it yourself. The opportunity to set a trailing stop is one example. A trailing stop automatically moves up with rising prices but stays in place if the market falls. This means that on a successful trade it protects a part of your profits without exiting too soon. On an unsuccessful trade it protects you from heavy losses just as a standard stop would do.

    Some of the functions of an expert advisor depend on having it constantly connected to the internet. This because MT4 and the EA run on your own computer or server, not on your broker’s servers. For example if you have set a trailing stop, MT4 sends a message to your broker account to move the stop each time and it has to be connected to the internet to do that.

    This means that to make the most of the potential of a Metatrader 4 expert advisor on a home computer you have to leave your computer online 24 hours Sunday night thru Friday unless you happen to have exited all of your trades before you stop work on any particular day.

    Any break in the connection will mean that no more messages are sent to your brokerage so the trailing stop will be left where it was last set. It will still protect you from a large loss but it will not move up any more so you will have lost some of the advantage of having a system that works while you sleep.

    However, some EAs can be hosted remotely. This means that you can set them up on an internet server instead of your own computer. This could be your own or a facility offered by the EA company. They may offer this option as an upgrade after you order their Metatrader 4 expert advisor.

    Related posts:

    1. Why Not To Get A Free Forex Expert Advisor
    2. Expert Advisor Review Tips
    3. Metatrader EA: What You Need To Know About Expert Advisors

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    Singapore Foreign Exchange http://www.thinkintrading.com/singapore-foreign-exchange/ http://www.thinkintrading.com/singapore-foreign-exchange/#comments Fri, 27 Jul 2012 01:10:37 +0000 Max http://www.thinkintrading.com/singapore-foreign-exchange/
  • Foreign Exchange Hedging Strategies
  • Foreign Exchange Trading: How Much Money Can You Make?
  • Automated Forex Trading, Clever Yet Effective Technology
  • ]]>
    The Singapore forex exchange market is one of the largest Asian forex trading floors, considered second in importance after Tokyo by many sources in the region. Hong Kong is another major Asian financial center.

    Turnover

    The 6 monthly survey carried out by the Singapore Foreign Exchange Market Committee in October 2008 found an average daily turnover to the value of US $262 billion in ‘traditional’ forex trading plus another US $28 billion in OTC foreign exchange derivatives.

    Traditional forex trading includes spot transactions (average US $106 billion per day), outright forwards (average US $56 billion per day) and foreign exchange swaps (average US $100 billion per day). Derivatives include currency swaps and forex options.

    Currencies Traded

    Of course the Singapore dollar is not one of the major currencies but this does not affect the turnover. The most widely traded currency pair in Singapore, as in the total world forex market, is EUR/USD with USD/JPY second and GBP/USD third. In Singapore the local currency (USD/SGD) comes next, followed by the other major pairs, AUD/USD, USD/CHF and USD/CAD.

    Market Hours

    Trading in Singapore forms part of the Asian forex trading session. Trading generally takes place in the forex market from 8 am to 4 pm local time in any country, Monday through Friday. Singapore time is 8 hours ahead of UTC/GMT or 13 hours ahead of US EST.

    Therefore the Singapore forex market would be open from 12 midnight to 8 am UTC/GMT which is 7 pm to 3 am EST. During these times the biggest forex trading centers in London and New York are closed.

    This can be a good session for European traders who like to trade their early mornings or Americans trading in the evening, as well as people in Asia and Australia who can trade their own business hours.

    However, liquidity is lower during the Asian session than during the London and New York sessions. This can mean that slippage is a little higher: you might not always get the price you wanted. You will need to balance this against the various advantages for you in having this convenient time for your trading.

    Singapore Forex Brokers

    Many of the major international forex brokerage companies have a Singapore branch. These include CMC Markets, City Index, GFT, IG, Oanda, Goldman Sachs and Morgan Stanley. However you are not necessarily limited to brokers that are regulated within the country.

    Forex trading in Singapore requires the same strategies and techniques as you would use elsewhere. Remember that forex trading is risky and you should only use money that you can afford to lose. Taking this into account, if you have a profitable system and good money management then you could find the Singapore foreign exchange market a source of high forex trading profits.

    Related posts:

    1. Foreign Exchange Hedging Strategies
    2. Foreign Exchange Trading: How Much Money Can You Make?
    3. Automated Forex Trading, Clever Yet Effective Technology

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    Day Trading Forex Currency: Does It Work? http://www.thinkintrading.com/day-trading-forex-currency-does-it-work/ http://www.thinkintrading.com/day-trading-forex-currency-does-it-work/#comments Wed, 25 Jul 2012 00:18:03 +0000 Max http://www.thinkintrading.com/day-trading-forex-currency-does-it-work/
  • Forex Scalping Expert Advisor Programs: Do They Work?
  • Currency Forex Trading: How Does It Work?
  • Forex Day Trading Course: Scalping
  • ]]>
    Day trading forex currency is a popular strategy for traders in the foreign currency market. Day trading simply means that most of your trades will be open and closed during the same day. In fact they are often much quicker than that, and one of the things that draws many people to day trading is the fast pace.

    Forex day trading has some advantages over other longer term currency trading strategies. Although the fast and furious nature of slipping in and out of the market for quick trades can be stressful, at least when you stop for the day all of your trades are closed and you know where you are. You do not have to leave trades open, not knowing what will happen while you are sleeping.

    Generally speaking, this strategy takes advantage of mini trends and daily fluctuations in price. You would only be aiming to make a relatively small profit on each trade when compared with long term trading, but of course you will be involved in many more trades. On balance the two strategies can be equally profitable.

    However, there is a higher risk involved in day trading forex currency when you compare with trading on long term trends. The market will tend to be much more volatile and unpredictable. It is hard to say for sure, but many people estimate that around 80% of forex day traders are actually losing money. You would not want to join them, so do be sure that you can handle the pace and know what you are doing with a good trading plan before you start.

    Day trading forex currency can certainly work. There are many traders out there making a lot of money from it. However, it is important to understand that it does not suit everyone. If you are liable to crack and make bad decisions under pressure, it may not be ideal for you. But the only way to know for sure is to try it.

    In the beginning it is a good idea to use a very cautious strategy and practice with a demo account. This way you can discover a good system that works for you, without risking your shirt. It is important still to understand that when you go live the pressures will be different and so your results may be different too. Do not go straight from virtual money to trading a standard lot size. When you are consistently successful in demo, graduate to the minimum size of real account to get some practice day trading forex currency under real market conditions, then scale up your trades gradually.

    Related posts:

    1. Forex Scalping Expert Advisor Programs: Do They Work?
    2. Currency Forex Trading: How Does It Work?
    3. Forex Day Trading Course: Scalping

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    Are You Trading Forex Online For Income Or Wealth? http://www.thinkintrading.com/are-you-trading-forex-online-for-income-or-wealth/ http://www.thinkintrading.com/are-you-trading-forex-online-for-income-or-wealth/#comments Mon, 23 Jul 2012 00:53:19 +0000 Max http://www.thinkintrading.com/are-you-trading-forex-online-for-income-or-wealth/
  • The Correct Implementation Of Mechanical Wealth System
  • Ways to Wealth Through the Investment Property Vehicle
  • Currency Forex Trading is the Secret of Success and Wealth
  • ]]>
    Many people see trading forex online as a way to make money without having much idea of what they want to do that for. Of course money is useful, but with other types of investment people are usually clear in their minds about what they are looking for in terms of a return: income or wealth building. But forex traders do not always think about this.

    It is important. Even though you can make money with currency trading without having a clear aim in view, the ideal strategies and trading plan will be different depending on your aims for your investment. Something that a wealth builder considers to be a successful strategy could cause an income seeker to consider that he is failing at times. So let’s look at the differences and how to handle them in your online trading strategies.

    If you are seeking profits for income, then your aim will be to live on the profits of your currency trading account. You may only have a small fund now but you will probably be hoping that in a few years you can give up your day job and pay all of the bills from your forex profits.

    On the other hand, somebody who is building for wealth will not plan to take an income out of his profits. He will leave them in the account to grow. He may have the aim of building a retirement fund or some other plan where he will eventually use the money, but this is a long term goal and anything taken from the account in the meantime will be lump sums for a particular purchase rather than money to live on.

    So someone who is trading for income has to make a certain amount of profit per month, or at least a certain average over a few months. You’d need your income to be reasonably stable and above a certain level, otherwise you risk not being able to pay the bills.

    You would need some backup in the form of savings to cover you in the case of drawdown. You would also need extremely good money management and discipline to stick to your system in difficult times. Somebody who depends on trading forex online for their living expenses is under a lot more pressure and mindset will be crucial.

    Traders who are building for wealth tend to trade less often because they do not feel this same pressure. Ironically, this can mean that they wait for clearer signals and make more consistent profits than the income trader. They do not mind if their money is tied up in a trade for weeks or even months. They do not need the profits right now.

    Wealth builders are also able to accept a bigger drawdown. They take a longer term view and know that they will regain the losses and then some before they ever need to cash in. This means that, other things being equal, they can afford to take a bigger position with the associated bigger risk.

    The bottom line is that if you are trading for income you should be looking for a system with low drawdown and your trading plan should be set for low risk. A system that provides frequent signals for small trades will probably suit you better than a system that waits for major trends and swings. If you have clear aims for your trading and understand the implications as set out in this article, you will put yourself in a good position to make profits from trading forex online.

    Related posts:

    1. The Correct Implementation Of Mechanical Wealth System
    2. Ways to Wealth Through the Investment Property Vehicle
    3. Currency Forex Trading is the Secret of Success and Wealth

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    Learn Forex: Using Pivot Points http://www.thinkintrading.com/learn-forex-using-pivot-points/ http://www.thinkintrading.com/learn-forex-using-pivot-points/#comments Sat, 21 Jul 2012 00:20:59 +0000 Max http://www.thinkintrading.com/learn-forex-using-pivot-points/
  • Trend Trading Software: How It Works
  • Forex Trading Strategy: The Trend Is Your Friend
  • 10 Points To The Best Currency Trading Broker (Part 2)
  • ]]>
    When you learn forex trading there are many technical tools to master, but one of the simplest to use is the pivot point. Pivot points work with support and resistance levels to give you an indication of entry and exit points.

    The first thing to do when you plan to use this forex trading method is to identify whether the pair is currently in an upward or downward trend. This would mean looking at patterns over several days or weeks. Of course, if you regularly trade the pair, you probably already know which direction the trend is currently headed.

    Once you know the trend, you will generally trade in that direction. So as long as the pivots indicate a long order during an upward trend or a short order during a downward trend, you can trade. But if they indicate the opposite, it is best to leave it alone. There is too much risk of the trade going wrong in that situation.

    Pivot points are calculated from the last day’s trading high, low and close. Most traders use the New York session closing time, but that is up to you. Just be consistent. So the pivot point is yesterday’s high plus low plus close, divided by 3. A very simple calculation, but it will be done for you in your chart software.

    Then the support and resistance lines are calculated in relation to that pivot point. You will see two of each on your chart. The first support line is twice the pivot point minus yesterday’s high. The second support level is the pivot point minus the high minus the low. Resistance lines are the equivalent in the other direction. Again, these calculations will be done for you.

    You would then use that pivot point and levels for the whole of the current day’s trading, and recalculate tomorrow on the basis of today’s high, low and close.

    Pivot points and their associated support and resistance lines are used in two main ways by forex traders. If you are trading within the range, you would enter a buy order at or near to the support level, and a sell order at or near to resistance. The levels can also be used with other indicators to identify a breakout.

    Of course, as with any system, you should check your signal against at least one other indicator before trading. The MACD crossover or stochastic overbought/oversold levels can be very valuable here. It is also a good idea to check several different time frames to ensure that the direction of the trend is clear.

    The basis of pivot point trading is the assumption that prices will tend to fluctuate between the support and resistance levels, bearing in mind the effect of the current trend. The simplicity of this method can be very attractive when you are setting out to learn forex, and it can also be very effective.

    Related posts:

    1. Trend Trading Software: How It Works
    2. Forex Trading Strategy: The Trend Is Your Friend
    3. 10 Points To The Best Currency Trading Broker (Part 2)

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    Online Foreign Exchange Trading: Make Money From Home http://www.thinkintrading.com/online-foreign-exchange-trading-make-money-from-home/ http://www.thinkintrading.com/online-foreign-exchange-trading-make-money-from-home/#comments Thu, 19 Jul 2012 00:56:19 +0000 Max http://www.thinkintrading.com/online-foreign-exchange-trading-make-money-from-home/
  • Make Money Online From Home With Forex Trading
  • Forex Course: Making Money With Foreign Exchange Trading
  • Why Should You Trade Online On Foreign Exchange
  • ]]>
    Online foreign exchange trading is something that you should know about if you are interested in making money from home. Also known as forex, FX or currency trading, it is a form of speculative investment in the international money markets.

    We often see news reports about currencies rising or falling in value. Not surprisingly, there is a global foreign exchange market where the dollar and other currencies are constantly being traded. Some of this trading is on behalf of people or businesses who need to change money, either for travel or for reasons connected with importing and exporting goods. However, where there is a market there is also the possibility of speculative trading for profit, and that is what online foreign exchange traders do.

    The forex market used to be the exclusive province of international banks and other large financial powers, but since the use of the internet spread into all of our homes the possibility of trading in currencies has reached the small time private investor.

    Slowly brokers altered their practices to include people who did not have a lot of money to invest. At the same time, they developed software that enabled traders to manage their own accounts over the internet. They also began offering demo accounts so that people could test drive their systems. This also meant that anybody new to forex trading could try it out without risking any real money.

    The combination of all of these factors has meant that online foreign exchange trading attracts more and more people every day. However, it is important to spend some time understanding the market and figuring out a good trading system. As we have said, this can be done in demo mode. Forex trading is a risky business and it is important to be confident of your abilities before you start trading with real money.

    There are plenty of opportunities to pick up training in forex trading. Everything from books through instantly downloadable ebooks, DVDs and online video training packages is available to help the new forex trader. There are online forex forums where you can pick up tips and make contacts. There are even high level seminars and training courses in many cities.

    Forex is a 24 hour market during the business week. Nobody is limited to trading during the business hours of their own country, because it goes on in all time zones, all over the world. This makes online foreign exchange trading very convenient for many people who might not be able to get to the computer during the day time.

    Related posts:

    1. Make Money Online From Home With Forex Trading
    2. Forex Course: Making Money With Foreign Exchange Trading
    3. Why Should You Trade Online On Foreign Exchange

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    Forex Rebellion Review http://www.thinkintrading.com/forex-rebellion-review/ http://www.thinkintrading.com/forex-rebellion-review/#comments Tue, 17 Jul 2012 01:13:02 +0000 Max http://www.thinkintrading.com/forex-rebellion-review/
  • Ivybot Review
  • FAP Turbo Review
  • Forex Confidante Review
  • ]]>
    This Forex Rebellion review takes a look at the new system introduced by Russ Horn in late 2009. Russ Horn is a former T shirt printer who says that even a beginner can learn his system in 25 minutes. So, what is Forex Rebellion and does it really work? Are users actually making money with Forex Rebellion?

    What You Get

    So what is Forex Rebellion? Is it another robot?

    The answer is no – and yet, it does have an automated component.

    This is a manual trading system that identifies trades with a high probability of success. But you also get a piece of software called a ‘trading assistant’ which will alert you when conditions are favorable for a trade according to the system. You then decide whether to go ahead and trade.

    This means you are in complete control of your trades, but at the same time, you do not have to waste your life scanning the markets 24 hours a day. It’s the best of both worlds. It also means that you can cover more than one currency pair.

    As well as the trading assistant, you get over 40 videos showing how the system works. This includes footage of Russ trading the system live on the real market. It also includes different kinds of situations that may arise in the market and how to deal with them.

    You also get special chart indicators that have been developed specifically for the Forex Rebellion system. You will not find these indicators anywhere else but they come free with this system. Other systems leave you to tweak standard indicators as well as you can – Forex Rebellion serves them up to you on a plate.

    Plus of course, you get a manual. This is great for referring back to, after you watched the videos. Or if you are the kind of person who prefers to learn from the written word, you will find the system very well explained in the manual. (But it is best to watch the videos at least once, especially the bonus videos. There’s information and strategies there that are not in the manual.)

    The System

    This is a short term trading system (day trading) which will suit anybody whose time on the computer is limited. It can be used in any time zone and on any currency pair. Since forex is a 24 hour market, people with a regular job can use this in the evenings or early mornings, while a stay at home parent could trade while the kids are at school. It’s very flexible.

    Another advantage of this kind of flexibility is that the market will not be saturated with traders using the same system at the same time. Forex Rebellion traders will be dispersed through different time zones and different currency pairs.

    However, when you are starting out with the system it is best to stick with one currency pair. EUR/USD will be easiest to begin with, because of the high volume of trades. You also have a choice of time frames and we recommend starting with one hour.

    How To Use The Videos

    40 videos is a lot! And as for the claim that you can learn this system in 25 minutes – well, you would be missing a lot if you only spent 25 minutes on this. But it is a simple system that is quick to learn.

    While some people will happily watch the whole video series right through from start to finish, for beginners that could be confusing. So instead, a great way to use this type of video training is to sign up for a broker demo account and actually follow along with what Russ Horn is doing. Using a demo account means that you do not have to risk any money.

    At the same time, take brief notes of what is included in each video. This makes it way easier to find what you want if you want to come back and watch a strategy again.

    User Feedback

    People are raving about Forex Rebellion! You will see plenty of testimonials from users on the site, but the place to look for genuine impartial feedback is the forex forums. Comments there are extremely positive, with plenty of 5 star reviews.

    We didn’t really find any negatives except people recommending that you start small – start in demo to find your feet, pay attention to the training on risk management and stop losses, and don’t start right out with 10 different currency pairs all at once. It’s just common sense.

    Some users do go live right away but this would only be appropriate for experienced traders who can see that the system is going to work from the videos. Beginners need to get accustomed to the mechanics of trading and this is best done in a demo account where a mistake will not cost you anything.

    Guarantee

    You have a guaranteed refund here if you are not happy with this system. You have up to 60 days to test it out.

    In order to make this a truly risk free 60 days, it is best to use a demo account. For newbies who do not already have a broker, there is a special link to a recommended broker in the download area. With this service (and most others) you can trade in demo mode at first until you are completely confident in the system and your trading abilities.

    Summary

    There is a PPS that Russ Horn has put on the site: “Fate brought you here and fate can take you to a whole new level in the Forex Trading niche. I’ve done all I can to help you find true success. The rest is up to you.”

    We could say the same about this Forex Rebellion review. Destiny … or something … has brought you here and you can be thankful, because you have actually come across a real money making forex system among all of the dubious forex strategies out there. This is the one folks – get it or get out, because if you can’t make money with this, you shouldn’t be trading.

    Related posts:

    1. Ivybot Review
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    3. Forex Confidante Review

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    Forex Currencies: The Best Pairs http://www.thinkintrading.com/forex-currencies-the-best-pairs/ http://www.thinkintrading.com/forex-currencies-the-best-pairs/#comments Sun, 15 Jul 2012 00:50:07 +0000 Max http://www.thinkintrading.com/forex-currencies-the-best-pairs/
  • FX Pairs: Best Pair For Forex Trading
  • Currency Forex Market: Best Forex Pairs
  • Best Currency Pairs For Forex Trading
  • ]]>
    People starting out in forex trading often do not realize how many trading opportunities this huge market offers. It can seem overwhelming to think that you can trade any combination of the world’s currencies.

    Theoretically at least, a trader can deal in any pair: that is, any two of the 150 or so currencies of the world. Almost all countries have their own currency except for the European countries who are part of the euro system and a few small nations who use the US dollar. There are other countries whose currencies are pegged to the dollar to give them some economic stability. Still, there are a lot of currencies out there, and in combination that makes a huge number of forex pairs.

    In practice of course there are limits on the currency pairs that an individual trader can access. Most brokers will only let you deal with certain pairs, or if they quote prices on unusual pairs then the spread will be high so you have a higher threshold to beat before you start making money. If you want to trade in a minor currency it is often best to do so through a broker who is based in that country.

    However, for most traders this is not even an issue. The average forex retail trader (that is, somebody trading on their own account, often from home) would not touch most minor currencies because they are too volatile. For anybody starting out, certainly the best option is to stick with the major currencies.

    So which forex currencies would be described as major? There can be some debate about this but most sources count 7 major currencies in order of their traded volume. They are: US dollar USD, euro EUR, Japanese yen JPY, British pound GBP, Swiss franc CHF, Canadian dollar CAD and Australian dollar AUD.

    Major pairs are defined as pairs of the US dollar with any other major currency. This creates 6 major pairs which are EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD and AUD/USD. Pairs of two major currencies where neither one is the US dollar are called cross pairs. This gives another 30 possible pairs. An example would be GBP/CHF.

    The most heavily traded pair of forex currencies is EUR/USD. The high liquidity of EUR/USD has three main advantages. First, you will not have trouble getting matched including having stop losses matched at the planned point without a lot of slippage. Second, the spread tends to be low because competition between brokers is intense for this pair. Third, there is a ton of forex news relating to these two currencies and you are much less likely to miss some important announcement.

    With all of these factors coming into play, the recommendation for beginners is to keep to one pair and make it the biggest, EUR/USD. That is if you are trading for yourself. If you are using a robot, it may be set up for other forex currencies and you should go with the recommended pairs.

    Related posts:

    1. FX Pairs: Best Pair For Forex Trading
    2. Currency Forex Market: Best Forex Pairs
    3. Best Currency Pairs For Forex Trading

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    Currency Demo Trading – The Essential For Novice Forex Traders http://www.thinkintrading.com/currency-demo-trading-the-essential-for-novice-forex-traders/ http://www.thinkintrading.com/currency-demo-trading-the-essential-for-novice-forex-traders/#comments Fri, 13 Jul 2012 01:05:32 +0000 Max http://www.thinkintrading.com/currency-demo-trading-the-essential-for-novice-forex-traders/
  • Currency Broker Choices: Essential Information
  • Secrets Of Top Currency Traders
  • Demo Currency Trading: Is It Bad For Your Health?
  • ]]>
    Being a novice Forex trader requires you to get a currency demo trading account for many important reasons. So you have made your decision to start trading on the Forex market and that is great. There is plenty of things going for it and in these uncertain times where economies are lagging, traditional commodities have lost their lustre. A recent revelation of a scandal on Wall street revealed that hedge funds might die out because $50bn swindled away by the former Nasdaq chief. Banks like PNB Paribas and HSBC are direly affected. The world economy has slowed to almost a halt and there is news that there will be the biggest cut in oil supplied known to man.

    Stocks and bonds have lost their lustre and let us not even broach the subject of futures – putting money in basic hope that their delivered price will multiply as the commodity matures. Within a few months, the world economy went from being in the black to surpassing the thin red line that many financial analysts have drawn many years ago. Alarm began panic as financial giants like the Lehman Brothers and Freddie Mac declared bankruptcy. Citibank had the biggest bank bailout ever recorded – done only because their collapse would shudder across the entire continent. Investors are now no longer just jittery, they are afraid to put their money in markets that were once thought to be of low risk and moderate gains. So why the Forex market then?

    The risks are higher because of the level of factors that can affect market psychology and currency shifts. But beneath that dynamism is a market that is also forgiving, highly liquid, customisable trading options and almost no steep financial or any sort of barrier to entry. This is why so many novice Forex traders have sprung online, most of them are students, the retired and working adults looking for an alternative revenue stream. They could also be those investors who had been involved in other commodity markets – but have turned their attention away from lacklustre performance. If you are any of these people, there is just one thing you have to do – get a currency demo trading programme and these are readily available from most of the major online brokerages who offer options for causal investors.

    The importance of a demo trading programme is that it allows you to understand and experience investing the Forex market with dummy money and dummy accounts. This is a brilliant learning process which exposes the novice investor to the mechanics and the intricacies and the difficulties of investing in the market – helping to make the decision whether or not they like that they see, or find it too difficult. The problem with many novice investors is that they just simply jump into the market and hope for the best. This ‘try before you buy’ mantra set by these currency demo trading programmes is that the sort of thing that makes well thought out decisions.

    Related posts:

    1. Currency Broker Choices: Essential Information
    2. Secrets Of Top Currency Traders
    3. Demo Currency Trading: Is It Bad For Your Health?

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    3 Important Things You Should Know About Your Forex Broker http://www.thinkintrading.com/3-important-things-you-should-know-about-your-forex-broker/ http://www.thinkintrading.com/3-important-things-you-should-know-about-your-forex-broker/#comments Wed, 11 Jul 2012 00:50:33 +0000 Max http://www.thinkintrading.com/3-important-things-you-should-know-about-your-forex-broker/
  • Finding a Forex Broker
  • The forex broker is a valuable advisor
  • Finding The Right Online Stock Broker
  • ]]>
    Well normally when you trade in something like Forex you will need to recruit a stranger with more know how than you to start making some serious money on world currencies. You are depending on this person to tell you what to do and make some wise money making decisions on your behalf and he is called the Forex broker. With brokerage firms and individuals offering private services, there are so many to choose from and you might have a hard time finding this person. This is further compounded by the fact that you might never even meet this person that you are trusting your money with and so before anyone goes forth, there are 3 Important Things You Should Know About Your Forex Broker.

    Your broker should be reliable and transparent. If you got a broker from a brokerage company, you should check its credentials and how they operate. There should be no hiccup within the point of you investing your money, to the point where you want to find out how much money you are making and right to the point where you want to take our everything you have staked inside. Your broker is your YES man and your wise advisor all rolled into one and there should be no communication problems. See how easy it is to invest and start and account and if there are any ‘fine prints’ then you should really have a look at another firm.

    Your broker should be there in a snap, not like a magic genie but more like logging on the internet. Brokers should be a click and phone call away from your decisions and your decisions should be acted on almost immediately. Sometimes you might be wiser then your dealer and when you have struck genius in your investment ideas, you don’t want someone dilly dallying on your order fil – something that can cost you your massive profits! We are talking about the fine line between instant and just a few seconds. If you are stuck with a broker or a firm that is about as fast as an elephant in a potato, then you should rethink who you trust your potential retirement with.

    The last point may not be important some, but I think that for any product or service with a potential risk that could run into thousands of dollars, then you should be able to get a dry run of their services and some trial trading in small amounts or even fake money. Some companies and brokerages have this sort of system set up and you can find out alot about what you can and cannot do with these free trials. You should even see if you can get some online or even visual training from them and a guide book wouldn’t hurt at all.

    What they offer and what they can do for you. Go beyond these 3 important things you should know about your Forex broker and look for yourself. A little education wouldn’t hurt.

    Related posts:

    1. Finding a Forex Broker
    2. The forex broker is a valuable advisor
    3. Finding The Right Online Stock Broker

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    Forex Training: Tracking Your Trades http://www.thinkintrading.com/forex-training-tracking-your-trades/ http://www.thinkintrading.com/forex-training-tracking-your-trades/#comments Mon, 09 Jul 2012 00:36:05 +0000 Max http://www.thinkintrading.com/forex-training-tracking-your-trades/
  • Currency Trading Tutorial: Increase Your Profits
  • How To Get The Best Forex Trading Software To Assist You With Your Trades
  • Forex Trading Training: Don’t Go Trading Without It
  • ]]>
    One of the most important steps in forex training is how to apply a successful trading plan by tracking your trades. Applying your plan correctly is very important if you are going to maximize your profits, and very often it makes the difference between profit and loss in the long term. Tracking is a vital part of this process.

    Many beginners think that they will remember their successes and failures. In fact, it is only the most memorable that stick in our minds. Record keeping is not sexy and at first glance you might not think it is a profitable use of your time. But in fact it is the easily forgotten average trades with their small gains and losses that will determine whether your system is successful in the long run.

    Some traders start out with good intentions of recording their successes and failures but quickly lose interest. You may need a large number of trades to build up in either a demo or a real account before you can learn anything useful from your records, so it is hard to keep the motivation going.

    In particular, if things are going well, you may think there is no need to keep a record because your system is perfect. But no system is perfect and sooner or later it will go through a bad patch. At that time you will desperately need an accurate record of your trades so that you can see what went wrong. Is it just the kind of blip you can statistically expect, or did you inadvertently start doing something differently that might have thrown the system out? Without records you will have no way of knowing, so if there is a problem, you cannot correct it.

    Your forex trading records do not need to be complicated. All you need is a note of each trade that you make. You will need the opening and closing prices, the stop loss that you set, your profit target and your actual profit or loss. It often helps to add comments such as why you opened the trade (the signal that you acted on) and anything that you did that was different from your trading plan, e.g. opening or closing earlier or later than your system proposes.

    You could just write this down in a notebook, but most traders use Excel or a similar spreadsheet. This makes it easy to analyze the trades to work out figures such as your average profit or loss per trade, your profit or loss over time or over a certain number of trades, and other statistics that may be useful if you find at a later stage that you need to make changes to the system. Take a few minutes at the weekend to look through your records for the past week and you might notice some interesting and profitable trends.

    You will need a different record for each system that you follow, so that the results of individual systems are not hidden in the average. For example, you might be operating three systems and be making regular profits. Sounds like a good situation. But if you separate out the three systems, you could find that one is very successful, another is relatively successful and the third is actually making a loss. You could increase your profits by cutting out that third system. But you will not know this if you record them all mixed together.

    So go ahead and set up separate spreadsheets for each of your systems now, and have them open on your computer whenever you are trading, to make best use of your forex training.

    Related posts:

    1. Currency Trading Tutorial: Increase Your Profits
    2. How To Get The Best Forex Trading Software To Assist You With Your Trades
    3. Forex Trading Training: Don’t Go Trading Without It

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    Forex Guide Essentials http://www.thinkintrading.com/forex-guide-essentials/ http://www.thinkintrading.com/forex-guide-essentials/#comments Sat, 07 Jul 2012 00:29:31 +0000 Max http://www.thinkintrading.com/forex-guide-essentials/
  • Forex Trading Courses: What To Look For
  • Currency Exchange Trading: 10 Essentials For Profit
  • What Is Forex Spread?
  • ]]>
    If you are starting out in forex trading, you will definitely need a forex guide. The currency trading world can be bewildering and you need at least one good book, ebook or course that you can rely on to help you fight your way through the undergrowth and emerge as a profitable trader.

    So what are the essentials that you should look for in your forex guide? First, it should cover the basics. Even if you know most of the language, you will probably learn something new from this section. It should explain the terminology of the forex market, such as pips and spread.

    Then it should cover technical analysis, that is, the analysis of the market using charts and indicators. It should explain how to read a candlestick chart and cover the most useful of the technical indicators including those based on moving averages. It should explain support and resistance, and how to identify a trend.

    Beyond that, a forex guide will normally cover at least one forex system. In many cases a forex ebook or training course will focus on teaching you one particular system that the author has used successfully. This is often much more useful than a book that covers a lot of different systems in a sketchy way. Following one system step by step is probably the best route if you want to begin trading successfully as soon as possible, which most traders do! Nobody ever sets out intending to be one of the losers!

    So it is very important to have clear instructions for the central system that is being taught. If it is an ebook, expect some screenshots so that you can see examples. You may be lucky and have something that includes video training. This is probably the best way to learn, assuming you are able to follow the narrative. People who have English as a second language may find a written book easier to understand. You can actually pause the video while you go copy the step exactly, then click on play when you are ready to continue.

    A good currency trading guide will not ignore the vital subject of psychology. A trader’s mindset is just as important as his or her system. This is one of the things that beginners find hard to understand. Everybody wants the perfect money making system, but they do not want to learn about things like stress reduction and developing patience. Most traders have to hear over and over how important this is, before they stop and take notice. Learn all you can about psychology from your forex guide, because it can turn a losing trader into a profitable trader, and vice versa.

    Related posts:

    1. Forex Trading Courses: What To Look For
    2. Currency Exchange Trading: 10 Essentials For Profit
    3. What Is Forex Spread?

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    Forex – The Best Instrument To Day Trade With http://www.thinkintrading.com/forex-the-best-instrument-to-day-trade-with/ http://www.thinkintrading.com/forex-the-best-instrument-to-day-trade-with/#comments Thu, 05 Jul 2012 00:31:05 +0000 Max http://www.thinkintrading.com/forex-the-best-instrument-to-day-trade-with/
  • Teach Me To Trade Forex – Your Guide To Forex Trading Success
  • Online forex trading allows you to trade at your convenience
  • What To Trade, When To Trade, And How To Trade
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    To be specific, the actual phenomenon of Forex trading is not the fact that there are more and more people turning to it as an investment opportunity, nor is it the fact that it has been growing steadily for the past few years. It isn’t even the fact that more and more investors cropping up from all sectors of society. The phenomenon of the Forex market is the day trade, which was once the exclusive landscape of many large financial firms, banks and investors/speculators, has now stretched to hundreds of thousands of casual traders which do most of their work from the comfort of their own home.

    This is because of the advent of online trading as well as margin trading, meaning more and more people have access to the investment tools necessary for trading. Day trading’s definition is the buying and selling of financial instruments or commodities in a single day, so that the investor liquidates all his investments and assets before the positions are closed on the day itself. These people are called day traders and they range from large banks, financial institutions to – only recently – a large portion of casual ‘at home’ internet traders. The basic machinations of the day trade is that an investor will always look for a position that has momentum or tension to move – in price.

    This makes for a lot of research and a good eye for financial positions. Day traders make their money through cumulative results, they don’t settle for the long view but are content to make a little a day and hopefully at the end of the month, the sums will total to something viable. Day trading is more popular to casual investors because of the fact the risks are lower. Day trading always incurs smaller amounts than long term positions (traditionally) and Forex is one of the best instruments to day trade with because of the fact that the Forex market is liquid.

    The ability to pull out whenever you want as well as to make your investment decisions into actions is one of the most important things about day trading. Day trading is reactionary and impulsive, and it requires a market that shares the same properties. Within the Forex market, movements called percentage in points (pips) happen all the time in all areas of trading (spot, forward, future, swap, options, ETF trading) – and they happen within the course of different regional markets in different days. Forex is the best instrument to day trade with because of its reflexive nature and the amount of resources that has been pumped into it – the interface, training programmes, software, that allows for split decisions to be made and communication to the broker at an almost instant integer. If you have decided to trade in the Forex market, I would advise that you start with the day trade. It is a safer option for the casual investor – then as you gain confidence, you might want to diversify your portfolio.

    Related posts:

    1. Teach Me To Trade Forex – Your Guide To Forex Trading Success
    2. Online forex trading allows you to trade at your convenience
    3. What To Trade, When To Trade, And How To Trade

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