Tag: forex trading account

The Foreign Exchange Market, also referred to as The Forex Trading is the biggest and largest financial market in the world. It has a daily average turnover of $1.9 trillion- just imagine that amount of money! Don’t you want to join this trillion-dollar industry?

Forex Trading

Forex is the simultaneous buying of one currency and selling another currency. Currencies are traded in pairs, for example Euro US Dollar (EUR / USD) or (USD / JPY) (US dollar and Japanese yen) So basically, The forex Trading is.

There are two reasons to buy and sell currencies. About 5% of the daily transactions carried out by companies and governments that buy and sell goods and services in foreign currency and therefore must convert profits made to the local currency.

The other 95% of the trading done in order to make a profit, or what might be called speculative. Often, the investors are trading based on information that they believe in the degree of association and their impact, and that is sometimes this is not right, where the market completely ignores this news.

On one side of the speculative deal on one stock trader is no one who thinks he has a superior all other information with the other side there is another trader believes that his information is correct.

For speculators, the best trading opportunities come with the most common currencies in circulation (and thus more liquid 0 meaning they cash or readily convertible to cash), these are called “major currencies”. Currently, more than 85% of daily FX swaps involving the major currencies trade.

Market operates 24 hours a day actually, Forex trading begins every day in Sydney, then moves across the world with the beginning of the working day in each financial center, starts from Tokyo to London to New York. Unlike other financial markets, investors can express their reaction on the currency caused by the economic, social and political events fluctuations as soon as they happen – in real time – day or night.

Forex market is considered an internal swaps market (OTC) or “Antrpenneka.” This is due to the trade-offs between two parties by phone or one of the electronic networks. Trading has no central exchange, compared with the situation in the stock and futures markets.

Understanding Offers Forex Rate

Reading View Forex prices may seem a bit confusing in the beginning. Nevertheless, it is already quite simple if you remember two things: 1) Currency placed first called the base currency) and 2 (the value of the base currency is always 1).

The US dollar is a key element in the forex market and the currency is often considered ‘base’ in quotations. For “major currencies”, this includes USD / JPY and USD / CHF USD / CAD dollar. In these currencies and with the other, the quotations are expressed in the form of a unit of the US dollar against other currency in the pair. For example, the USD / JPY 110.01 means that the prices offered to one US dollar is equal to 110.01 Japanese yen unit.

While the US dollar is the base currency will be, when the price of the pair is moving to the top of this means high value of the dollar and the decline in other currency. If the increased offer price of the dollar yen to 113.01 previously mentioned, this means that the US dollar has become stronger now unable to buy any more of the yen by more than previously.

There are three exceptions to this rule are the British pound and the Australian dollar and the euro. In these cases you can see a quote such as GBP / USD GBP / USD 1.7366 means that one British pound equals US $ 1.7366.

In these three currency pairs where the US dollar is not the base currency, the high offer prices mean weaker US dollar, because more American dollars can now be purchased in against the British pound or the euro or the Australian dollar per share.

In other words When one goes quote currency pairs to the top, this means increasing the value of the base currency while when falling display prices, this means twice the base currency.

Currency that does not include the US dollar are called cross currency pairs, but the rules keep one. For example, the width euro 127.95 yen means that one Euro is equal to 127.95 Japanese yen.

Forex trading remorse will always see both sides display a price consists of a ‘tender’ ‘and Q’. ‘Tender’ is the price at which you can sell him the base currency (at the same time buying the counter currency). As the price of ‘question’ is the price at which you can buy by the base currency (at the same time selling the counter currency).

How to Get Started in Foreign Exchange Trading

You may have heard about the foreign exchange market exchange (FX) and on the many investment advantages. Would you like to experiment, but do not know where to start. This article will introduce you to shortcut the basics of Forex, and thus allow you to start your post quickly in this market which is growing relentlessly.

Trade foreign exchange market in the past were limited to big players such as national banks and multinational companies. In 1980, the rules changed to allow smaller investors to participate through the use of margin accounts. Margin accounts was the main reason to make Forex Trading enjoy such immense popularity. With the expense of margin with 1: 100 you can control $10,000 invested only $1,000.

Forex Trading is not easy, though, you will need a certain amount of knowledge so you can make wise investment decisions. Although the start of trade seems easy in theory, but it involves a lot of risks. Initial your movement in this market must be the collection of the maximum amount of knowledge about everything related to it before it starts to risk even one penny.

Forex traders are usually need a mediator for the implementation of treatment. Most of the brokers who have a good reputation be associated with major financial institutions such as banks. Good mediator will be registered with the Futures Trading (FCM) and the Committee on Commodity Futures Contracts (CFTC) as a kind of protection against abusive and fraudulent practices.

Opening an account Forex trading is characterized as easily as large as it does not exceed the mobilization of one of the models with the necessary information on your own. The model included a margin agreement which authorizes the mediator to intervene in any deal deemed too dangerous. This is to protect the interests of intermediaries because most of the deals are carried out using intermediary funds. Once you establish your account you can deposit the money to begin to engage in trade.

Many brokers offer a variety of accounts to suit the needs of individual investors .accounts thumbnails allow you to enter the world of forex trade amounting to $ 250. Standard accounts may require a minimum deposit of between $ 1,000 and $ 2,500, according to the terms of each broker. The amount of leverage (the amount of money that can be borrowed for trade) vary depending on the account type. Large financial leverage calculations give a larger amount of money to trade with the trader in exchange for investment, which deposited amount.

Yet the traders freshmen of them strongly advisable to get used first on the Forex market using the “paper trading” for a period of time. Paper transactions is a transaction with the aim of training and therefore are not in fact use any funds. This type of trading will allow you to measure the efficiency of the trading system that you use while also provide an opportunity to learn how to use trade offered by most Forex brokers that software tools.

Most forex brokers on the Internet offer demo accounts which will allow you to do deals paper up to 30 days service. Each new investors for the Forex must This demo accounts used even sure of its ability to achieve continuous profitable results.

Each broker in the Forex offers its own tools for the execution of transactions, but there are a few tools I have accepted all forex brokers. Instant quotations, news feeds, technical analysis and graphics interfaces and tools to analyze profit and loss are all features you can expect to find all brokers have sites on the Internet.

Almost all brokers are now currently know through the Internet. To access the broker services via the Internet will need to be a computer is relatively new and fast connection to the internet and a new operating system such as Windows XP. Once the account is established, you can access it from any computer just enter your account name and password. For one reason or another, if you can not access your account through a computer, most brokers possibility of concluding transactions over the phone.

Forex transactions are free of commission, meaning that you can play like any number of deals in one day without worrying about incurring high expenses paid by The Broker.

The Fibonacci number sequence and golden ratio can be found in nature and traders such committees have applied this theory in the financial markets and were able to achieve millions of dollars by using this unique tool as part of their trading method.

Serial numbers Fibonacci golden ratio is used by many savvy traders today, because this let’s take a look on how to make huge profits by using this method in all financial markets.

Support and resistance levels are crucial for all traders as they help identify entry and exit points during trading.

“Bounce” ratios derived from the Fibonacci sequence Fibonacci numbers and the golden ratio is considered innovative and useful tool for any trader, then why are these big interest.

Fibonacci Numbers Trading

let’s see .

The application of Fibonacci numbers and the golden ratio in trade

Fibonacci sequence was printed in the book “Libre Apache,” which was written for Fibonacci in the year 1202. In this book the Fibonacci for the first time to provide the Indian numbers – Arabic to Europe, where he replaced the Romanian figures.

Fibonacci sequence numbers based on the following equation:

How many pairs of rabbits that produced from a single pair, if the production of a new pair Each pair since the second month, the production will begin the largest number of pairs of rabbits?

While it is using serial numbers Fibonacci golden ratio to solve this equation.

The result is explained below:

Sequential numerical produced are of great importance in all parts of the world of nature.

After the first few numbers in the sequence, the rate for any number to the next higher number is approximately 0.618 and for the lower number is 1.618.

These figures are known as the golden mean or golden ratio.

Golden Ratio Golden average

These figures are interesting for us as can be seen in several areas, such as biology, art, music, weather and creatures and even architecture.

Examples of the natural things deliberate on the golden ratio:

Missiles and spiral galaxies, hurricanes, DNA molecules, sunflowers and other things in nature.

Retracement levels

Percentages of Corrections Fibonacci levels, which is the most important by traders are: 38.2% and 62.8%.

The other to bounce percentages which followed in importance are the 75%, 50% and 33%.

So how it is used by traders?

Well, there are three main advantages are:

1. Fibonacci numbers define exit points

If met three or more of the Fibonacci levels together-price, the stop loss point can be placed higher that the area where the points to the importance of this region both as a support or resistance.

Stop-loss limits using Fibonacci corrections allow traders to set pre-defined exit points, and then they can get out of the market if their accounts were wrong.

This method will help them in trading in an orderly manner and then maintain their capital, which is is central for all traders.

2. Fibonacci levels can determine the volume

Based on a risk-wants to be borne by rolling in his trade, the Fibonacci numbers can determine the volume of trading is, who should be taken depending on the degree of risk they wish to carry around stores in size.

Why?

Simplistically, this is because the monetary loss per trading center vary according to these centers that have been opened in the market.

Stop loss near a support or resistance lines point may mean that the trading center, which will open it could have been bigger than the last trading limits are stopping far from the support and resistance lines loss center.

Consequently, traders can report on the trade volume within the framework of capital management rules very easily once they have to put a specific exit points.

3. Fibonacci numbers and profit in every trade

Using Fibonacci numbers, once the formation of a technical models completed in exchange for Fibonacci zone-price, the trader can use these levels to book some profits.

This signal about how far this can go to profits traders booked profits at specified levels.

Sequential Fibonacci numbers advantage is that they are predictive tool: and then they allow traders that have limits on stop loss and take profit targets in advance:

Traders can use this method whether to book profits or reduce losses to the minimum alone, which is essential to make a profit in the near term.

Jean Fibonacci sequence used for this purpose which is further evidence of the important tools to help all traders.

One of the key factors for the success of trade in any market is discipline:

To reduce losses and increase profits and long-term win, you must be traded without the influence of emotions.

Jean was familiar with this matter and all traders now know that emotions may spoil their business plan and we can say that the serial numbers Fibonacci help rolling to stay disciplined.

Is it useful?

Jean realized that the use of Fibonacci numbers to make huge profits and reduce losses while trading, and then succeeded in using them to achieve enormous wealth estimated at more than $ 50 million.

Fibonacci numbers are useful but should be used as part of a general trading and commissions on a plan, for example not only it depends on them where he had another series of innovative tools that mix to achieve amazing profits.

He was one of the most successful traders in history and legend survived so far, many of the skilled traders around the world are still using methods in trade

Then access to these methods and you will be happy you did it.

Not only because they are characterized by innovation, but also they will give you more likely to make a profit which we all seek the mechanism of Traders.

Hello dear investors …. We will address together this article is a simple explanation and is dull Foreign currencies Trading. Of course it is possible to find such information in many other places on the Internet, but usually provide that information extremely dry.

For this, we will try to simplify the information in this article and for other articles on our site as much as possible, so you can find out more information about Forex Trading.

Foreign Exchange Trading

What is The Forex Market?

Forex Market is the place where to meet both banks, corporations, governments, investors and traders to exchange and currency speculation. Forex market also known as “the currency market” or “foreign exchange market” or “the foreign exchange market.” The forex market is the most liquid market in the world with an average daily trading volume to $ 3.98 trillion.

Forex market is open 24 hours a day, 5 days per week with more global trading centers in the world, which is located in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.
It is noteworthy that there is no place or central market of the Forex market. But trading is from anywhere. This is in contrast to stock trading where there is a central market represented in the stock market.

A Historical Overview of The Forex Market

This part may be a bit boring for many investors, but it is important that you have some basic background knowledge of the history of the forex market so that you will know the reason for the existence of this market and how it came to us. The following is a short history of the Forex:

In 1876, the implementation of the so-called “gold exchange standard”. And requiring that all paper currency backed by gold is pure, and this idea was aimed at stabilizing the global currency by linking the price of gold. In theory it was a good idea, but in reality it has created patterns of boom and bust that led ultimately to the demise of the gold standard.

It has been dropped the gold standard throughout the world with the onset of World War II, where he did not have the major European countries have enough gold to support all major currencies. Although the gold standard regime fell at the end of the day, but the precious metal has not lost its place as the ultimate form of monetary value.

After that, the world has decided to apply fixed exchange rates, which resulted in the fact that the US dollar reserve currency core and it will be the only currency backed by gold, and this is what is known as the “Bretton Woods system.” In 1971, the United States announced that it would exchange gold in US dollars, and this was the end of the Bretton Woods system.

Thus, it has been broken Bretton Woods system, which eventually led to the universal acceptance of floating foreign exchange in 1976 prices, this is the current market generator of foreign exchange, but it has become electronically diffuse widely in the middle of 1990.

Now let’s move on to some of the topics most entertaining! ….

What is The Foreign Exchange “Forex” Trading?

Forex Trading is a speculation on the currency rate in another currency. For example, if you think that the euro will rise against the US dollar, you can then buy the currency pair the euro against the US dollar at a low price, in the hope of selling it at a higher price to make a profit. If you bought the euro against the US dollar, increased the value of the US dollar, you would have made a loss. Therefore, it is very important to be knowledgeable about the risks involved in foreign currency trading operation.

Why is the most popular Forex Market?

To become an investor in the field of forex trading, it provides you with the lifestyle of a very spectacular than any other profession in the world. It’s not easy to get there, but if you have enough determination and discipline it is certain that you will eventually, the following are the most important things you need to reach your goals in the forex market:

The ability – to accept the loss without any emotion.

Trust – to believe in yourself and your trading strategy, and that is liberated from fear.
Dedication – to become a better investor Forex.
Discipline – to comply with the emotional calm in a world full of constant seduction (the market).
Flexibility – to you trade Forex successfully to changing conditions.
Focus – to keep your own trading plan and not to move away from the track.
Logic – because you look at the market from the perspective of an objective and straightforward.
Regulation – on the formulation and promote positive habits of trading.
Patience – to wait for the top trading strategies according to your plan.
Realism – that does not covet the get rich quick and understand the reality of the market and trading.
Savvy – to take advantage of currency trading and be aware of what is happening at all times.
Restraint – not to over-trading and excessive use of leverage for your trading account.

Of The Trading in The Forex, and why?

Banks – the interbank market allows for both the majority of commercial trading transactions and trading large amounts of speculation every day. Some large banks are trading billions of dollars a day, and sometimes this is the trading on behalf of clients.

Companies – companies need to use the foreign exchange market to pay for goods and services from foreign countries, and also for the sale of goods and services in foreign countries. The corporate activity resulting from currency exchange in order to deal in other countries is an important part of the daily activity of the Forex market.

Governments / central banks – Central Bank plays in different countries play an important role in the foreign exchange markets. The central bank could cause an increase or decrease in the value of the currency, by trying to control money supply and inflation and interest rates. You can also use foreign exchange reserves to try to stabilize the market.

Hedge Funds – controlled by hedge fund speculation about exceeding billions of dollars of stock and that every day in the currency markets.

Individuals – if you travel to a country and you exchange your money for various currencies in the airport or the bank, so you have already participated in the foreign exchange market.

Investors – investment firms that manage large portfolios for their clients using the foreign exchange market to facilitate transactions in foreign securities.

Retail investors in The Forex – They represent the people on the next couple of trading in foreign currencies in the Forex market like you. The number of these investors is increasing day after day, especially with easy access to foreign exchange trading platforms and access them through the internet. These investors can access the market indirectly, either through intermediaries or brokers or through a bank.

The advantages of trading in the forex market:

* Forex market is the largest market in the world, beyond the daily trading volume of $ 3 trillion. This means high liquidity which makes it easy entry and exit to and from the market any time.

* Trading whenever you want: There is no date for the start of trading in the Forex market, you can get in and out of trading whenever you want during the period from Sunday 05:00 EDT to 16:00 EDT.

* Easy access: You can start your trading account by about $ 250, can also start trading on the same day directly through the execution of trading orders by clicking the mouse.

* Fewer currency pairs, allowing you to easily focus, instead of getting lost in an attempt to analyze thousands of stocks.

* Trading freedom from anywhere in the world, all you need is a computer connected to the Internet.

* Low commission and transaction costs than in the stock and commodities market.

* Market volatility allow investors to make a profit in any market conditions.

Finally, we must note that in spite of the diverse and multi-market pros, but there are many risks that come next profit potential. Because you may find that there are a lot of investors on the next trading believing that the forex market is not only its profits without regard to the risk side, which may cost the loss of money.

Successful Trading in The Forex Market does not happen by accident, but there must be a great deal of discipline and commitment to a set of rules and principles that will lead ultimately to achieve satisfactory trading results. We often find that Forex trading professionals warn can trade without the use of elaborate pre-trading plan, or strategy has been designed according to the circumstances of each trader.

Best Rules For Successful Trading

The following will mention the most important rules of successful trading in the Forex market and should be adhered to at all times:

Use plan or strategy for trading: trading without the use of a plan or strategy is a waste of time, and eventually lead to the expected results.

Commitment to the plan all the time and work to develop them: It’s not just choose one of The Super Profit Scalper Trading strategies only, but it is essential that there be a commitment on the trading strategy that has been selected and is being used every trader to develop its own trading strategy constantly according to changing market conditions on the one hand, the hand another according to its own circumstances and so will eventually reach a stage of harmony between him and his trading strategy, which helped him to achieve amazing trading results.

Limit orders from loss mode: the most important rules of successful trading in the Forex market position limit loss orders, which would limit the expected losses in the forex market and thus increase its own profit rates.

How to erase the fear of losing money when you start trading

If you want to become a successful investor in the Forex market, you know very well that you will lose money at some stages of the trading stage, but if you think you will avoid losing money in all transactions, you must forget all that now.

It can truly say that the loss of money in the forex market is part of the real investor wins. The winning and losing in the field of forex two things are inseparable. If you do not learn how to correctly loss will never be able to make money in Forex.

In fact, almost all professional investors are losing money, they understand very well that’s just part of the “game.” Unfortunately, a lot of investors, unaccompanied fear at every trading process and well-founded fear of massive loss of money and in some cases there is a very passionate emotion.

Some of the main reasons behind investors’ fear of losing their money are:

1. anhm do not understand it mathematically, through a series of transactions, the investor may lose the majority of transactions, but it is still a winner on a large scale, simple math to prove it.

2. They are simply afraid of losing money in general.

3. They do a very large trading transactions (the risks are more than they should be really). Which may cause fear, loss of sleep and to ensure the occurrence of massive emotional swings and emotions.

In the rest of the lesson I will give you an insight about the fear of losing money in the markets, and how to overcome it. This information is very strong stuff, so be sure to read the entire re-read them again if possible. What you learn in this article should give you enough strength to eliminate the fear of losing money in the market and will also help the development of your confidence and your emotions as an investor.

Fear of losing money may be a good thing, but we need to shift its focus.

Fear of losing money is a good emotion in many areas of life, and if we did not have this passion, there will be more chaos in world markets. General humans who protect their wealth and property acquired, and they were right to do so, they have worked hard to obtain.

However, in circulation, this natural energy on being a defensive and passionate with the money you need to be converted and re-focus in the case of a different mindset …

Instead of the fear of losing money when trading, and to make these emotions control you when each trade, the investor has full control over risk management at every trading through stop losses and control the volume of trading transactions process. Risk management tools are the way to control your own money, investment funds, rather than to feel the fear of losing money, you can feel the power and control, so that you can pre-determine how much and the amount of the loss can be tolerated before entering into the trading process using these tools. However, the use of these tools to control the risk at every trading process is not sufficient to remove the fear of losing your money altogether.

Ask yourself some serious questions:

If you feel scared or any emotion in general when you can trade, you need to give yourself a “slap” on the face and ask yourself three big questions and to answer them honestly:

1. Do I really have the knowledge and confidence enough to do I trade using my money real?

If you are trading in the market using private money that hard-earned, and do not know what are the trading limits you have, and do not have 100% confidence in your ability to analysis and trading in the markets … maybe it was not supposed to trade.

One of the biggest reasons behind the fact that investors are afraid of losing their money because they do not have confidence in their ability to trade! I know this may sound silly, but this is very true. Many investors simply do not have a trading strategy to do successful Trader, also do not have a plan for trading, and trading magazine, etc … and therefore they are not willing to risk their money in real markets after … and thus always get scared when trading.

2. Am I trading with volume of trades is too big for what I can afford the risk per trade?

If you do not know what is the amount that you can afford the risk at each trading. You need to define this first. This amount can be determined simply by specifying the number of dollars could afford to lose during the trading process, and remember well that the loss is very likely on any transaction. Therefore, you have to take into account the overall financial situation for you, and then you can determine how much money could be lost at each trading process … At this point, you should be honest with yourself too.

3. Do you really understand the math behind the trading?

When I say “behind the trading of mathematics,” I mainly refer to the risks of return, and how it relates to your own by winning in general. For example, a series of 20 trading deal, you are likely to lose at least 35-45% of the total deals, most successful investors are making the proportion of losses ranging from 40% to 50% most of the time, and in some cases may up to 60%. With the strength of the risks of return, you can lose more than you win, and at the same time he graduated from the trading process and achieving the success of the big profits.

Well understood that the loss when trading is quite a bit

During the trading loss is considered a good thing, in case what you have to quickly reduce these losses and do so through the preservation of your capital and then will pay the loser Winning trades behind deals.

Even very lucrative deals usually include a loss of more than a win, and to prove this point, let’s take a look at the case study of a number of trade deals worth 14 show deal win rate equal to only 43%. To illustrate, it means you lose 57% and win for only 43% of the total transactions. It may be difficult to link the loss of the majority of transactions the possibility of winning and ultimately profit.

Believe in your own trading strategy documented in mathematics

As we saw in the previous example, the math shows us that even with the loss achieved by 57% of the total trading transactions we have, and if we leave Winning trades to work and reduce the losses, the profits will protect itself eventually.

If you’ve followed the actual plan, and accepted the loss, because you at least have a plan or a road map followed and explain your decisions and actions, the mind will see it is a logical, and therefore you are less likely to be subjected to control feelings of fear. Thus, one of the most important concepts that always focus on is the need to train your mind to accept losses.

“Night Test sleepless”

Everything that we have said above is important and delicate, but there is still one thing is simple: “Fear test,” which I find effective for many investors. This test is used simply to measure how you feel at night before going to bed while there is a trade going on. If you find you can not stop thinking about your trading, or that you attach to your computer screen while you have to be asleep at this time, know that you are still faced with the fear of loss. Therefore here is very simple test you:

One rule is simple … if you can not afford to go to sleep at night with the comfort and tranquility of your own trading operations …

1. You either you trade using a very large volume of transactions / risk very much.

2. You do not have any idea about what you do and lacks confidence in your trades.