Foreign Exchange

Forex For Beginner 1

Tuesday, October 31, 2006 11:54 AM mistrack

Forex-Trader's Top Picks for Getting Started Forex Trading
Forex-Trader's Top Picks for
Getting Started Forex Trading (FROM : FOREX-TRADER)

This an outline of the minimum requirements necessary to operate your 'trading station'. If your needs extend to viewing multiple monitors, surfing the net simultaneously etc. additional requirements would be needed.

Windows 2000, XP, ME (or more recent)
Microsoft Internet Explorer 5.5 (or more recent)
Pentium III or IV (or equivalence)
256 MB RAM or greater
20 MB of free disk space
Back-up Device (Zip, Tape, CD-WR, etc.)
Cable Modem, DSL, ISDN, T1 or T3 Highspeed Internet Connection
An Internet Service Provider (ISP)
Printer

1. Read as many books on the subject of Forex Trading as you can. A good beginning (or a good refresher) would be either of Cornelius Luca's Books: "Trading in the Global Currency Markets", or "Technical Analysis in the Foreign Currency Market" with CD-ROM. If you are a rank and file beginner you may want to begin with the basics, "An Introduction to Foreign Currency Exchange Markets". Many of these books are expensive -- just consider it tuition and never consider shortchanging yourself in receiving the full value of your ongoing trader education. This education from experts is invaluable. Determine from the start that you, like successful traders (and all successful people) will have an extensive, constantly updated and growing library.

2. Choose your learning style and make arrangements to receive the best you can afford in quality Forex training:

a) Online Training
b) CD-Rom Training Courses
(especially when combined with Live Professional Trading Session Chatrooms)
c) Seminar Group Training
d) One on One Mentoring (in your home/office)

We have learned trading using all the above learning methods, and have found value in each. While books are essential for foundation building, online training and similar CD-ROM courses are useful for mastering the basics in an applied way . Seminar group interaction was useful for clearing away obstacles and developing hands-on trading skill. The ultimate experience for us was one-on-one mentoring over a two+ day period in our own home/office, at our own computers. Being Mentored can provide a quantum leap for mastering consistently profitable trading (and for only slightly more than group seminars). Expect to pay $1,000 up for online training up to $5,000 or more for one-on-one mentoring. It is reasonable to set expectations and goals to recover this cost (potentially many times over) in the first months of dedicated trading.

3. Subscribe to a Charting Software system, while you are reading and training so that you can clearly understand the market activity as it relates to what you are learning. Our example below illustrates live-data candlestick charting software with technical analysis indicators.Charting is an up-to-the-minute snapshot of foreign exchange activity that is indispensable for seeing the movements of currencies and determining buy and sell transactions. You can get a free trial 2 week (or more) charting subscription. Professional Charting Subscriptions offer many more tools and advantages than the free charting software that Clearinghouses often offer as an incentive to encourage new traders. Professional charting is an ongoing 'cost of doing business', plan to pay $100 to $250 / month for independent charting service. Discounts are sometimes available through training companies or brokerage houses.

4. Obtain a Trading Platform with Free Demo Account from a Clearinghouse/Brokerage firm (one you expect to continue on with. After you have learned platform trading skills you fund your trading account with real money). The 'Free Demo' is the actual trading platform (also called a trade station). It is a live-data-feed, real-time professional trading platform, provided to you so you can learn how to perform actual foreign currency trades (based on information you discern from your charting software, trading advisories etc.). On this Trading Platform, you make actual buy/sells (trades) with your $50K demo (play money) account.
This free Trading Platform, attached to a demo play-money account, is intended to introduce you to forex trading in an authentic way. It will usually expire in 30 days unless you opt to fund a (real money) account before that time. If you would like to maintain a demo account to continue to practice on while you concurrently go 'live' with your real-money account, your clearinghouse will likely oblige your request. Since a Clearinghouse typically makes a small profit on each buy or sell transaction (the spread) be wary of any no upfront costs to open an account to begin forex self-trading, and no commissions should be charged. The trick is to find a Brokerage with 'tight' spreads but also other features advantageous to a trader. Other than the spread, which is automatically deducted with each trade, there should be no operating costs associated with using any particular Brokerage's trading platform.

5. Provide yourself with the best Forex Advisory subscriptions that you can afford. Daily forecasts based on technical analysis and other indicators of forex market activity are an incalcuable advantage to predicting market moves. Plan on paying $75.00 up for a good subscription. This will provide a good cross-reference for the buy/sell indicators you are learning to identify. Also, make it habit to check CNN.com to keep your finger on the pulse of world events that are fundamental indicators in themselves.

6. As time goes on you may want to play with some of the interesting specialty forecasting software out there. It is continually being developed, as traders search for trade-fail-proof artificial intelligence forecasting. We are in the habit of reviewing and test-driving them as they debut. If one shows up that we have a good experience with you can find it here.

7. Practice, practice, practice. Begin by consistently achieving 4 positive 4-pip demo-trades per day. Imagine that your first serious goal will be to accomplish 50 positive trades in a row. On the day that happens, keep the printout of that historical event, because in the forex industry it is at that point you are considered to have 'what is takes' to begin to become a Forex Trading Mentor yourself -- if you so choose. Mentors, as you might suspect, are very much in demand in this time of rapidly expanding interest in self-trading. Mentoring could represent a satisfying and lucrative extra income stream for you, but, equally as important, mentoring has shown itself to be very instrumental in a trader's personal ongoing development --we learn best what we teach.

We love to see the milestone print-outs of 50-in-a-row traders, and welcome receiving them by fax at: 1-928-447-2978. There is a Hall of Fame being started for these achievers if you are interested. It is worth knowing that this kind of authentically documented trading record can also be a helpful third-party validation for those traders wishing to expand into the role of a Professional Trader trading funds for their clientele, either as an independent trader or a corporate trader.

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Buying and Selling

In the forex market, currencies are always priced and traded in pairs. You
simultaneously buy one currency and sell another, but you can determine
which pair of currencies you wish to trade. For example, if you believe
the value of the euro is going to increase vis-á-vis the U.S. Dollar,
then you would go long on EUR/USD instrument (currency pair).
Obviously, the objective of forex currency trading is to exchange one
currency for another in the expectation that the market rate or price
will change so that the currency you bought has increased its value
relative to the one you sold. If you have bought a currency and the
price appreciates in value, then you must sell the currency back in
order to lock in the profit. An open trade or position is one in which
a trader has either bought / sold one currency pair and has not sold /
bought back the equivalent amount to effectively close the position.

Market Conventions
Market
conventions are rules and standards imposed by a governing body. In
case of decentralized forex market these conventions might differ due
to many national regulators (FSA, FSC, CFTC, NFA, BCSC, etc.). Since
there is no central governing body that sets forex market rules and
standards, we will reference only these that are universal.

Quoting Conventions
The
first currency in the pair is referred to as the base currency, and the
second currency is the counter or quote currency. The U.S Dollar is
usually the base currency for quotes, and includes USD/JPY, USD/CHF,
and USD/CAD. The exceptions are the Euro (EUR), Great Britain Pound
(GBP), and Australian Dollar (AUD). As with all financial products,
forex quotes include a "bid" and "ask", which is more often called
"offer" in the forex market. The bid is the price at which a forex
market maker is willing to buy (and you can sell) the base currency in
exchange for the counter currency. The offer is the price at which a
forex market maker will sell (and you can buy) the base currency in
exchange for the counter currency. The difference between the bid and
the offer price is referred to as the spread.

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Fundamental VS Technical analysis

Sunday, October 29, 2006 9:57 AM mistrack

Currency traders make decisions using both technical factors and economic fundamentals. technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, where as fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor.
The most dramatic price movements however, occur when unexpected events happen. the event can range from a central bank raising domestic interest rates to the outcome of a political election or even an act of war. nonetheless, more often it is the expectations surrounding an event that drives the market rather than the event it self.

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Factors Affecting The market

Currency prices are affected by a variety of economic and political conditions most importantly interest rates, inflation and political stability. moreover, government sometimes participate in the forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. this is known as central bank intervention. any of these factors, as well as large market orders, can cause high volatility in currency prices. however, the sizes and volume of the forex market makes it impossible for any one entity to "drive" the market for any length of time.

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how it works

Friday, October 20, 2006 2:18 PM mistrack

Foreign exchange is the simultaneous buying of one currency and selling of another. the world's currencies are on a floating exchange rate and are always traded in pairs, for example euro/dollar or dollar/yen. in trading parlence, a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. A short position is one in which the trader sells a currency in anticipation that it will depreciate. in every open position, an investors is long in one currency and shorts the other. FX traders express a position in terms of the first currency in the pair. for example, someone who has bought dollars and sold yen (usd/jpy) at 104.37 is considered to be long us dollars and short yen.
the most often traded or "liquid" currencies are those of countries with stable governments, respected central banks, and low inflation. today, over 85% of all daily transactions involve trading of the major currencies, including the us dollar, japanese yen, euro, british pound, swiss franc, canadian dollar and australian dollar. the FX markets is considered an over the counter (OTC) or 'interbank' market, due to the fact that transaction are conducted between two counterparts over the telephone or via an electronic network. trading is not centralized on an exchange, as with the stock and futures markets. A true 24 hour market, forex trading begins each day in sydney, and moves around the globes as the bussinies day begins in each financial center, first to tokyo, london, and new york. unlike any other financial market, investors can respond to currency fluctations caused by economics, social and political events at the time the occur day or night.

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Forex Market2

Thursday, October 19, 2006 1:06 PM mistrack

there are three main reason to participate in the FX market.
one is to facilitate an actual transaction, whereby international corporations convert profit made in foreign currencies into their domestic currency. corporate treasurers and money managers also enter the FX market in order to hedge against unwanted exposure to future price movements in the currency market. the third and more popular reason is speculation for profit. in fact, today it is estimated that less than 5% of all trading on the FX market is actually facilitating a true commercial transaction.

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Forex Market

Sunday, October 15, 2006 12:28 PM mistrack

the foreign exchange market, also referred to as the "forex" or "FX" market, is the largest financial market in the world, with a dailly average turnover of approximately US$1.5 trillion. in comparison, the daily volume of the new york stock exchange is approximately US$30 billion per day.
until now, professional traders from major international commercial and investment banks have dominated the FX market. Other market participants range from large multinational corporations, global money managers, registered dealers, international money brokers, and futures and options traders to private speculators.

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Marketiva 2

Provides spot forex on major currency pairs and crosses; $5 cash rewards you can start trading right away; tight spreads from 3 pips; trading on 1% margin; virtual and live desk within one account; latest news, alert on market, events, signals, no market commisions; zero-interest on open positions, 24 hours support chat channel. the most sophisticated and easy to use forex charting tool; ability to trade from the charts and the best forex trading software available!

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Marketiva Online Forex Trading.

what is marketiva?

marketiva is a market maker for instrument traded on the over the counter foreign exchange (forex) markets. through marketiva, you can buy or sell instrument like EUR/USD, GBP/JPY, and others. marketiva also provides services like discussion channel, latest forex news, trading signals and alerts, charting services and many more.

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FOREX

Arsip Artikel

• October 2006
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• February 2007
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