ForexGen trading strategies

While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities provides you with real-world strategies and a rare sense of clarity about the specific mechanics of currency trading. Leading trading educator Ed Ponsi will explain the driving forces in the currency markets and will provide strategies to enter, exit, and manage successful trades. Dozens of chart examples and explanations will guide you each step of the way and allow the reader to "look over the shoulder" of a professional trader hard at work at his craft. This book provides traders with step-by-step methodologies that are based on real market tendencies.

New Forex Trader

However, what the sad statistics bear out is that over half of all new Forex traders lose their money within a year. The foreign exchange market is seeing a lot of hype right now, and too many people are signing on in the hopes of making a quick buck. Forex is simply not that easy, though, and it is certainly not a get rich quick scheme for the average person.

How to Learn Forex

The technical trader is concerned with studying patterns of price movement on the chart in order to predict the direction of current and future trends in the Forex market. The decision to buy, sell, or hedge a current position – or to stay out of the market entirely – is made upon this analysis. Identify recurring patterns and make educated assessments to guide your decisions; should you initiate a trade at the current price, or set your system to open a position at a future price? The goal of the technical analyst is simple: to make profitable Forex trades by identifying past patterns that have historically led to a predictable outcome. However, the potential risk should always be considered. A recurring pattern is not precise and does not guarantee a desirable or expected price movement. Using various chart types and technical indicators, more accurate predictions can be made from better analysis of the Forex market. Technical indicators can be utilized to help you track specific, identified patterns. Once a pattern is recognized (not all are apparent), the Forex trader can decide whether to place a trade, or wait and monitor the price to see if the predictions were accurate. Additional drawing tools can be used to identify common trend qualities.

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What things do you need to start doing trading forex ?

A Personal Computer (and PDA, optional and preferable)
Stable and high speed internet connection
Limited equity (for example $1000)
Reliable, reputable and trusted online forex broker

You dont need an office, otherwise you can start your business from home or anywhere else. Even when you are travelling, you still can make money. As simple as that !

Employ a sound money management strategy

In our opinion, money management is the single most important aspect of any trading system and is badly neglected by forex beginners. It enables the trader to fully utilise their capital to grow their money as fast as possible while protecting them from excessive losses and final account blow out.
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Speeches and policy decisions

When Alan Greenspan, the Chief Banker of the United States, is expected to talk the currencies normally range within a tight range until his speech commences during which time they can move quite substantially, depending on the topic and content of his speech. Other speakers in the USA who can move the market include: Ben Bernake, John Snow and Janet Yellen.

Policy decisions such as those made at G11 meetings tend to initiate a trend in the currency market which may last a few days or weeks.

Forex Currency Trading Strategies and Systems

In this article we look at the different types of currency trading strategies and systems the forex trader can choose from before commencing their FX trading journey.
The Best Currency Trading System
There are many many different currency trading systems out there for sale, some even claim to be the best currency trading strategy ever! Unfortunately, these systems sold online rarely (if ever) live up to this bold claim. And the reality is, if these forex strategies were really any good, it is unlikely they would be for sale. The owner of the system would be using it to make money currency trading, instead of spending his time and possibly money marketing the strategy.

Don't put your faith in the expert's recommendations and comments

There are literally hundreds of forex companies providing trading signals, daily commentary and trading recommendations. While it may be useful to read some of these to get an outside opinion, it can just be information overload for newcomers to the forex market, creating indecision and stress! Believe in your system and trade accordingly.

The influence of geopolitical events

Geopolitical events do not generally move the currency market as much as important economic events do. However, major occurances such as September the 11th do cause extreme moves. It is therefore necessary to always trade with a stop loss to protect your capital against such unexpected, large movements.

Summary of the important economic announcements.

Generally, announcements relating to the economy of the USA are most important. The top three market moving figure releases are:

Interest rates
Trade balance, budget and treasury budget
Employment situation

The following figures are less important but can be market movers if the figure comes in very different from what was predicted by economists:
Retail sales
Durable goods
GDP (usually the most stable figure)

Forex Trading Styles

There are two main Forex trading styles that are used by a majority of Forex traders:
Technical Trading
Fundamental Trading
Each of these has its differences, so let’s look into them in some more detail.
Technical Forex trading is primarily based on one of two tools. Charting tools are, as the name suggests, charts of past currency movements. As with any chart, you can add in trend lines to help smooth out the minor fluctuations and allow you to see the bigger picture. Of course, charting is a lot more complicated than mere trend lines but there are software programs out there that will help with your chart analysis. Once you get deeper into charts, the other main technical Forex trading method is the use of Quantitative Trading Models. These use math to analyze the markets and identify opportunites for trading. Technical trading uses past data to endeavor to predict future movements in the market.
Fundamental Forex trading involves the analysis of things such as key economic data. This includes reports from governments, current event news coverage and any other data that the fundamental analyst considers useful. Fundamentalists consider that currency movements are mainly affected by economic and political conditions and events. Whilst central banks have been known to get involved in the currency markets, this has become less common in recent years. Fundamentalist Forex trading looks at interest rates, inflation figures, balance of trade figures, Gross Domestic Product, retail price indexes, producer price indexes amongst other factors.
You need to decide which of these two trading styles fits best with your own personal style as well as the amount of time you have available for analysis and any help that you can get from computer programs.
Forexyard is the leader in online currency trading. It provides real-time deal execution, free Forex charts and quotes together with 24 hour commission free Forex trading.

Forex Earning Potential

Forex currency exchange trading is one of the fastest growing trade markets in the world. It is also the biggest with an estimated 1.8 trillion dollars being exchanged every single day.
With these stats to it's name it should come as no surprise that one of the major reasons for this exponential growth is the fact that Forex trading offers incredible earning potential.
This is also why large multi-national corporations have been investing in foreign exchange for years and more and more individuals are utilizing currency trading to supplement their incomes and some are even living purely off the profits they make.

Trade Forex For a Living

If you want to enjoy currency trading success you can, but you need to be aware of one key point. 95% of traders lose money and that’s a lot of people! Don’t think you can’t do it, you can and this article will show you how.
The Forex markets remain the final frontier of the free market economy it’s the world’s biggest business and the most lucrative and is one of the few businesses you can start with small stakes and build real wealth. You can earn huge profits due to leverage, which allows you deposit 1,000 dollars and leverage it up 200 times to trade $100,000! If you can use leverage the right way, you can make huge profits let’s take a look at how to do this.
Forex trading is a learned skill and anyone can learn a simple Forex trading strategy for success; in Forex trading simple systems work best, because they have fewer elements to break than complicated ones. You only need a simple strategy to succeed but that’s not enough, you need the right mindset and that’s why most traders lose they don’t understand the next key point!
Despite what a lot of so called experts or Forex robot advisors will tell you, you can’t predict what Forex markets will do in advance and this means you will have losing periods. These losing periods, can last for weeks but that’s ok, so long as you cut your losses and run your profits. If you are trading with leverage you can lose 70% of the time (if you keep your losses small) and win just 30% of the time (if you run your winners) and still make triple digit gains!
The key to Forex is simply trading with discipline; forget your ego, learn to lose keep losses small, have faith in your system and the courage to run your winners and you can enjoy currency trading success.
New Forex traders think geeks and mathematicians, make the best traders but they don’t - Why?
Because they think being clever and building complicated trading systems, is the way to make money but as we have seen, simple trading systems always work best. Clever traders also come with egos, they simply hate losing and let their losses run and with leverage that leads to disaster. The best traders tend to be humble, highly disciplined and simply focus on what needs to be done and that’s, keeping losses small and running profitable trades for as long as they can.
Most traders don’t lose because they can’t learn to win, they lose because they don’t adopt the right mindset to succeed. Anyone can learn a method and anyone can adopt the right mindset, if they really want to and you can too.

Automated forex trading

We are constantly researching new trading concepts. When a newer and better trading method is found, the Destiny members get it sent to them automatically.
The forex market is dynamic and always changing so it is necessary to modify a trading strategy over time. We want you to have the best possible trading results. Destiny will give you a realistic chance for success. You can withdraw your funds at any time as you are the one who is in control of them. Just contact your broker and they will wire your funds to you. Or you can keep the money you made in your forex trading account and let the Destiny select the highest probability trades and execute them automatically.. The choice is yours. Enter your name and email above and you will receive updates on how to trade using Destiny.

Access To Better Spreads

To give you access to better spreads, we introduced No Dealing Desk*execution. As one of the largest Forex Dealer Members** with strong liquidity relationships with the world's leading banks, we constantly press them to supply the most favorable prices to us.

Using Technical Analysis

Technical analysis is probably the most popular form of financial market analysis, since it can be applied to literally any market from currencies to stocks to commodities. It has to do with examining charts, price data, and using different mathematical indicators to try and come up with accurate trading signals.

The different technical methods that this article will cover are support and resistance, fibonacci retracements and profit targets, momentum oscillators such as the Relative Strength Index (RSI), and moving averages. While this is by no means a comprehensive guide to forex technical analysis, it will introduce you to some of the most popular trading tools and allow you to acquaint yourself with the notion of analyzing price charts.

In a sentence, technical analysis is the study of historical price movements to try and predict future results. While this is not always 100% accurate, it is based on the simple premise that all market movements are caused by real people, and human psychology and investment behavior tend to remain consistent. And because technical analysis is widely practiced by so many traders, with many of them even following the exact same indicators such as support and resistance lines, there is an element of self-fulfillment involved.

How to Trade Forex

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

FUNDAMENTAL ANALYSIS

What is fundamental analysis?

Fundamental analysis in forex broadly investigates how various governments' economic policies influence the currency market. This study is generally more appropriate to the longer time frame.

For the daytrader, daily economic announcements are the only significant fundamental events that could influence your trades. These announcements comprise economic figure releases and speeches by prominent people.

10 Tips for your success in Forex trading

1. Implement a trading plan.

“If you fail to plan, you plan to fail”. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation.

Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.

2. Trade within your means

If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings.

Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.

3. Avoid emotion trading

If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.

4. Ride on a win and cut your losses

Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.

5. Love the trends

Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.

6. Stop looking for leading indicators

There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.

7. Avoid trading in a thin market

Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.

8. Avoid trading in too many markets

Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.

9. Implement a proper trading system

There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.

10. Keep learning

The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.

Spot and forward trading

When you trade foreign exchange you are normally quoted a spot price. This means that if you take no further steps, your trade will be settled after two business days. This ensures that your trades are undertaken subject to supervision by regulatory authorities for your own protection and security. If you are a commercial customer, you may need to convert the currencies for international payments. If you are an investor, you will normally want to swap your trade forward to a later date. This can be undertaken on a daily basis or for a longer period at a time. Often investors will swap their trades forward anywhere from a week or two up to several months depending on the time frame of the investment.

Although a forward trade is for a future date, the position can be closed out at any time - the closing part of the position is then swapped forward to the same future value date.

What are the most powerful figures that move Forex market?

Interest rate
Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.
Employment situation
Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency.
Trade balance, budget and treasury budget
A country that has a significant Trade Balance deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.
Gross Domestic Product (GDP)
GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity.
A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.

Combining Mutual Funds With Forex Trading

In every financial market, the forex market included, there are certain gaps that can lead to decreased profits and decreased opportunities for profitable trading. Investing and trading in mutual funds can be a good way to earn money from both a short-term and a long-term perspective, but there are still certain gaps in this market where the inadequacies of trading opportunities become apparent.

While investing and trading in mutual funds can be an excellent way to profit from the stock market, one of the biggest problems with trading in mutual funds is that you typically cannot open or close positions until the market closes for the day and reopens.

Foreign Exchange Trading Intermarket Analysis

In our global financial system all of the major world financial markets are interconnected, yet the most popular form of forex market analysis, technical analysis, concentrates only on one market at a time. Most traders that implement technical analysis-based trading strategies may use tools such as candlestick formations or moving averages, but they will only focus on one chart or one market at a time.

Technical analysis can still be very useful to a forex trader. After all, the vast majority of all daily forex trading volume is speculative in nature, and all of those masses of traders working at their computers are likely following the same handful of indicators and oscillators, as well as focusing on the same levels of support and resistance. If enough traders are following a 14-day Relative Strength Index indicatorthen making successful trades based on that indicator becomes self-fulfilling in nature.

In fact, it is possible for you to completely ignore all other financial markets and only focus on one currency pair's chart, and you could still have a profitable trading strategy. However, the stock and commodity markets (with oil and precious metals playing a large role) of a given country will inevitably affect the value of that country's currency, so it would be wise for any astute currency trader to stay aware of the goings-on of other related financial markets.

An interesting development that comes with the widespread proliferation of forex trading is that there is a relative lack of intermarket analysis compared to most stock or equity markets. If you have even a brief knowledge of stock-picking strategies, then you should be familiar with the concept of diversification (spreading your stock picks across different sectors) as well as using a general index of stocks to rank a specific sector's performance.

Forex Trading Philosophy

Many beginning FOREX traders are captivated by the allure of easy money. FOREX websites offer 'risk-free' trading, 'high returns' 'low investment' – these claims have a grain of truth in them, but the reality of FOREX is a bit more complex.

There are two common mistakes that many beginner traders make – trading without a strategy and letting emotions rule their decisions. After opening a FOREX account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover.

This kind of undisciplined approach to FOREX is guaranteed to lose you money. FOREX traders need to have a rational trading strategy and not allow emotions to rule their trading decisions.

To make rational trading decisions the FOREX trader must be well-educated in market movements. He must be able to apply technical studies to charts and plot out entry and exit points. He must take advantage of the various types of orders to minimize his risk and maximize his profit.

The first step in becoming a successful FOREX trader is to understand the market and the forces behind it. Who trades FOREX and why? Who is successful and why are they successful? This knowledge will allow you to identify successful trading strategies and use them as models for your own.

There are 5 major groups of investors who participate in FOREX – Governments, Banks, Corporations, Investment Funds, and traders. Each group has varying objectives, but the one thing that all the groups (except traders) have in common is external control. Every organization has rules and guidelines for trading currencies and can be held accountable for their trading decisions. Individual traders, on the other hand, are accountable only to themselves.

This means that the trader who lacks rules and guidelines is playing a losing game. Large organizations and educated traders approach the FOREX with strategies, and if you hope to succeed as a FOREX trader you must play by the same rules.

Euro depreciated in Asia Session

The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3090 level and was capped around the US$ 1.3250 level. The common currency came off as traders moved out of higher-yielding currencies and into safe haven plays on account of a swine influenza outbreak that has already claimed more than 100 lives in Mexico. Data released in the eurozone tosay saw the German May GfK consumer sentiment index remain steady at 2.5. “Also, the German March import price index was off 0.4% m/m while the eurozone composite index of leading indicators climbed 0.2% to 92.4 in March,” said GCI Financial Team.

US Small Businesses Dig In Heels As Recession Bite

Vanessa Baug knows as well as anyone how the recession has ushered in a new era of frugality for Americans. Sales at her once-thriving jewelry store have plummeted. Some days she sells nothing.

"When times were good we were seeing 50 percent more traffic than we are seeing now" at Baug's Vanessa Fine Jewelry in Lakewood Ranch, Florida, she said. She will fight to the bitter end to keep her store open, she said, and is taking on more jewelry repair orders to keep cash coming in.
Margaret Van Voast, who runs a construction management outfit in Falls Church, Virginia, has also seen a decline in contracts. She has downsized her staff to one from four and has enough work to last until the end of the year.

Fairbrother said that while the mortality rate of small businesses was likely to increase, most entrepreneurs who had been squeezed out nearly always started another business venture.
And the recession has not deterred newly laid off workers from venturing into self-employment. Both the Chamber of Commerce and the National Association for the Self-Employed reported an increase in the number of people seeking information about starting their own business.
Most of these people are starting ventures related to their previous employment and are using severance packages and savings to fund their businesses.
"The demand may not be there, but people will still find little niches where they can survive. It is not as easy as it was three or four years ago," said Giovanni Coratolo, vice president of small business policy at the Chamber of Commerce.
For Arnie Brown, the constant effort to keep his fast-food business afloat amid the rising tide of bills proved too much. He closed his Caribbean eatery in July.
But for small business owners, hope springs eternal. Brown said he hopes the federal government's $787 billion stimulus package revives the economy so he could open another fast food joint.

Important Forex Trading Terms

The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.* PipsA pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.

Forex Trading Example

An investor has a margin deposit with Saxo Bank of USD 100,000.

The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.

The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.

Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.

Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.

Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.

Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.

As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the profit calculation.

This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.
Example 2:

The investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).

The dealer quotes 112.05-10. The investor sells EUR at 112.05.

Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.

He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.

Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.

The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.

This results in a loss of JPY 0.55m = approx. USD 5,300 (USD/JPY 105) = 5.3% loss on the original deposit of USD 100,000.
Example 3

The investor believes the Canadian dollar will strengthen against the US dollar. It is a long term view, so he takes a small position to allow for wider swings in the rate:

He asks Saxo Bank for a quote in USD 1,000,000 against the Canadian dollar. The dealer quotes 1.5390-95 and the investor sells USD at 1.5390. Selling USD is the equivalent of buying the Canadian dollar.

Day 1: Sell USD 1,000,000 vs. CAD 1.5390. He swaps the position out for two months receiving a forward rate of CAD 1.5357 = Buy CAD 1,535,700 for Day 61 due to the interest rate differential.

After a month, the desired move has occurred. The investor buys back the US dollars at 1.4880. He has to swap the position forward for a month to match the original sale. The forward rate is agreed at 1.4865.

Day 31: Buy USD 1,000,000 vs. CAD 1.4865 = Sell CAD 1,486,500 for Day 61.

Day 61: The two trades are settled and the trades go off the books. The profit secured on Day 31 can be used for margin purposes before Day 61.

The USD account receives a credit and debit of USD 1,000,000 and shows no change on the account. The CAD account is credited CAD 1,535,700 and debited CAD 1,486,500 for a profit of CAD 49,200 = approx. USD 33,100 = profit of 33.1% on the original deposit of USD 100,000.

FOREX CURRENCY TRADING

FX, Forex or Foreign Exchange, is all about exchange of currencies from one hand to another at an ongoing price in the market. Forex is all about investing money in foreign currencies, just gain profit by selling at a higher price, the one you hold, just to buy another one at a lower price. Earlier, not many traders were clear about the Forex trading and that Forex is just short for "foreign exchange", as it did not get much publicity through media.

Foreign Exchange market is the biggest financial market in the world, with a potential of fast and great gains and a sizable number of investors. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors.

About a decade ago, currency trading was only limited to large banks and financial firms because they were the only ones to have access to the tools and methods required to trade Forex market. However recently, due to up and coming efficient online platforms, technology has advanced to the point of being accessible to any and every individual trader who wishes to trade or invest in Forex. Marketforex.net being one of finest online trading platforms is easily accessible by all who are interested in investing in Forex.

Forex Currency Trading Market

WHAT IS FOREX CURRENCY TRADING?

If you read about investing, you've seen the word forex trading. But because forex doesn't get much publicity in the major publications and websites, many investors don't know that forex is just short for "foreign exchange". So trading the forex market is simply trading foreign currencies.

As recently as ten years ago, currency trading had high barriers to entry, so only large banking and institutional firms had access to the tools and systems required to play in the forex trading game. Recently, however, technology has developed to the point that any individual investor can hop right in and trade with one of the many online platforms.

When buying and selling in the forex currency trading system market, you'll see that there are four "currency pairs" that dominate the percentage of trades. Those four are the Euro vs U.S. Dollar, US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, and US Dollar vs British Pound.

The goal when investing in currency is to be holding a currency that appreciates in value in relation to the other currencies. To use an overly simplistic example, if you bought 50 British Pounds for 100 US Dollars, held the Pounds for 1 week, and in that period the value of Pounds increased in relation to US Dollars, you could then convert those Pounds back into dollars for, say, $120.

Unlike the domestic stock markets, the forex currency trading is open for trades 24 hours a day. Much like the phrase "it's always noon somewhere," it's always business hours at some region of the globe. Since every country trades on the FX market, and it's open all day, the daily volume is roughly $1.2 trillion, which dwarfs that of the NYSE. Another comparison to make in order to truly realize the magnitude of the forex market is with the currency futures market (which has around 1% of the daily volume).

One other important distinction to make is that forex currency trading is not centered on an exchange like the NYSE or NASDAQ. There is no central body or organization required to act as middleman. Trading circulates between major banking centers around the world.

Until recently, there were strict financial requirements and massive minimum transaction sizes which prevented individual investors from trading. But with the advent of the internet came the FX brokers. A forex currency broker is similar to an online stock trading account such as etrade.

Anybody can open an account and buy and sell in any quantity. Because the brokers have thousands of investors placing orders through them, they are able to meet the large minimum transaction size by purchasing in large blocks and distributing currency amongst the purchasing investors.

Although it is now easy to start trading forex, it is a complicated and complex market. While it offers fantastic opportunity for wealth, it is also very easy to lose your shirt in a hurry. Before trading forex, do your homework and read as much as you can find before investing your hard earned money.

Learn Forex Trading and Multiply Your Wealth

To many people that sounds amazing, and perhaps it is. It can be very profitable for investors and fortunes have been made by many. The incentive to learn forex trading is the oldest incentive by far, the incentive to make profit. If you learn forex trading you are learning how to make your money make more money for you, the goal of all investors.

If you choose to learn forex trading online you are not alone since thousands of people choose this method every year. If you learn forex trading online you have the benefit of choosing an instructor from almost anywhere in the world, or to choose multiple instructors.

When you learn forex trading in this fashion your virtual classmates could be from England, Hong Kong, Singapore, Paris, or any other exotic locale that you may have only read about in the past.

Obviously this diversity of culture and knowledge will be beneficial. During online chats and student discussions questions will be raised that you may not have thought of yourself, and you’ll be able to benefit by hearing the answers.

The ultimate goal of forex trading is to trade currency in a consistent manner that will result in profit. For instance, buying Euros with US dollars and then selling the Euros for more than you gave for them when the market changes.

This is the oldest rule of business, buy low and sell high. If you learn forex trading you’ll be able to do this on a scale you never would have thought possible, limited only by the amount of investment funds you have and by market conditions.

GAIN Capital Group

FOREX.com is a division of GAIN Capital Group, a dedicated partner to professional FX traders and fund managers worldwide. Institutional services include IB programs, white label solutions, and asset management. Individual forex traders can take advantage of the market expertise and financial strength of GAIN Capital Group and access an institutional FX trading platform, FOREXTrader, along with our powerful real-time forex charts, professional forex market research, and suite of advanced forex trading tools. For traders new to the currency trading, FOREX.com offers forex training programs, forex minis, and information about trading the foreign currency market

Why Forex Trading

If you want to know why the Forex trading market is superiors to other investor options such as Equities or the futures market, then you can rest assure that you'll find the answer in this page.
The best way to clarify the advantages of the Forex market is through a real example. In 1929, the stock market collapsed, causing many people and businesses from around the world to go broke. This also happened when the high tech bubble burst. The fear of a market crash is a concern that constantly dwells in the minds of investors, both professional and beginner ones.
In the online Forex trading market, There is no way for the market to crash. If you have read about what is the Forex trading market, then you know that when you buy a certain currency, you are at the same time selling another currency. When some currencies' price false, others' price rise.
So this is the most important advantage of Forex day trading. Unlike other markets, where in some cases all traders lose money, with Forex trading there are always traders that make a profit, at any given time

Forex Vs Currency Futures

you have read our article comparing forex to equities you probably already know why Forex is a superior market in measuring up to the equities market. In this article we will evaluate the Forex market in conjunction with the currency futures market. Of course there are various points of distinction between each of these markets – historical, philosophical and technical to name a few. In this article we will review some significant differences between the two markets that reflect the way you trade and make money in each of them.
One of the biggest advantages the Forex market has to offer is its unparalleled volume. In fact, the amount of money traded every day on the Forex market is over 50 times bigger than the volume on the futures market. If you have read our previous Forex trading articles you probably already know that the Forex market is the biggest financial market in the world. Fact is that this size does not only indicate the popularity of the market but most of all it shows the amount of trading opportunities you can find on this market. The Forex market offers a place for any trader, from the smallest pastime traders to the professional, high-rollers

Online Forex Trading Introduction

The online Forex market, also known simply as Forex, FX or the foreign exchange market is the biggest trading market in the world, with daily Forex trading that exceed $2 trillion.
Even tough we are talking about a huge market, Forex trading is quite simply - the buying of one currency while at the same time selling of another currency. If the trader can predict correctly which currencies will drop and which will rise - he will benefit from his investment.
There are a lot of benefits in Forex investing over other investment markets.