Two Currency Trading Methods- Which Will You Choose?

February 1, 2010 · Posted in Forex Exchange · Comments Off 

The two main currency trading methods we are going to outline in this article are:

  1. Using Leverage
  2. Taking Ownership

Once a reasonable amount of experience and knowledge has been gained in the currency trading market (FOREX) it can be very profitable to combine both methods. Here are the main characteristics of each:

1. Using Leverage

Beginners in currency trading will typically find an online broker, open a free demo account, read a manual or take a tutorial, and start practicing speculating skills based on technical indicators.

Through the online broker they are able to use leverage so if they eventually decide to open a mini account, a 100:1 leverage means that with $1 they can participate in the market with $1,000. If in time they graduate to a regular account, 1 trading lot of $10 can be leveraged by the broker so $100,000 can be traded for another currency.

Many newcomers to currency trading concentrate on getting small profits, getting in and out of the trade quickly, usually taking no longer than a few hours at the most. Day trading necessitates learning how to read candle charts, recognizing patterns, and anticipating where price is likely to go.

As many new traders find when they have been currency trading for a while, it is possible to have a succession of losing trades, and without proper equity management, their account can be blown necessitating another cash injection to allow them to trade again.

A series of blown accounts can add up and many view this as part of their currency trading education expenses.

Alternating between a demo account and a mini account can reduce the cost so the new currency trader can regain confidence in the demo before going back to live trading again. Eventually, the hope is that the trader will develop a consistent trading pattern so more trades are won than lost so their equity gradually increases.

2. Taking Ownership

This method of currency trading still requires a learning curve as one has to anticipate the market moves and recognize chart patterns. Unlike using leverage however, the risk of financial loss is smaller and you are not in danger of ‘blowing your account.’

It simply means you create a portfolio with whatever funds you wish to commit to currency trading and open bank accounts in each of the currencies you wish to trade.

For example, you may wish to open bank accounts for any of the following:

  • US Dollar
  • British Pound
  • European Euro
  • Japanese Yen
  • Swiss Franc

Of course, more substantial sums of money are needed to make this method of currency trading worthwhile after taking into account bank transfer charges.

However, if you have x,000 dollars or euros or any of the big five currencies to commit to currency trading this method is certainly worth considering.

After studying technical indicators and learning about support and resistance and Fibonacci calculations, you will soon recognize key patterns on the higher time frame charts. Using daily and weekly charts will bring to your attention currency pairs that are in an up or down trend or pairs that appear to be topping out or reaching a strategic high or low.

If for example the British pound reaches a high against the dollar that is the highest it has been for many years, there is a reasonable possibility that it will not stay at that level. Taking a portion of your equity and buying dollars would make good sense. Within a few days or weeks depending on your profit targets, the pound is like to come down at which time you sell dollars and buy pounds.

For example, with GBP10,000 you purchase dollars as the pound touches 2.000 against the dollar. You now own USD20,000. Within a few days the pound pulls back to 1.9800 at which time you sell dollars and buy pounds giving you GBP10,101 less bank transfer fees.

This is just a quick example of how the ownership method of currency trading works. Of course, the currency may not go in the direction you anticipate in which case your equity will be reduced. You will then need to hold that currency until such time it increases in value. Alternatively, you may see another opportunity involving a different currency cross and be prepared to take a loss in order to use that capital in a new trade.

Once currency trading skills have been acquired, the ownership method can be quite profitable, especially as your equity increases. This method requires patience as ideal setups may not appear very often. But when they do you can commit a reasonable part of your portfolio to the trade with a high probability you will profit.

Currency Trading Is High Risk

Currency trading is viewed as a high risk enterprise, and with good reason. A very high proportion of those who attempt to trade the Forex fail and give up in time, up to 95% according to some authorities. Other veteran traders suggest it can take from a few months to 3 years to gain the necessary skills – quite a learning curve!

Those who have the psychological stamina and determination to ride the bumps, accept the losses, and keep coming back until they are able to make consistent profits, are generously rewarded with a changed financial status.

Author: Michael A Jones
Article Source: EzineArticles.com
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Forex Broker Trading Rebates

January 28, 2010 · Posted in Currencies · Comments Off 

Most investors who trade Forex use a broker. A broker is an individual or a company, who buys and sells lots of currency according to the trader’s wishes. Brokers earn money by collecting commissions or fees for their services. Many of the Forex Brokers available today do not charge any fees or commissions. Most of our clients do not understand how a Forex Broker can stay in business and not charge any fees or commissions. Brokers do there very best to spin this fact into a positive for their particular firm, but most Forex Traders know the facts. The fact is that Forex Brokers make a significant amount of revenue from the spread in each Forex trading pair that the client trades. For instance, when a client of these Forex Brokers buy the EUR/USD, the spread is usually 2-3 pips. The cash equivalent of 2-3 pip spread in a standard account is $20-30 per standard lot currency trade. This amount is what the Forex Broker earns for every trade that their clients take. As you can see, the Forex Broker is getting paid rather handsomely to conduct the business of buying a selling currencies. We feel that some of those enormous profits that the Forex Broker can and should be distributed to the Forex or Currency Trader.

You should check that a broker is registered and or regulated in the place they conduct Forex Trading services. A Forex broker also needs to be associated with a financial institution, such as a bank in order to provide funds for margin trading. Picking the right Forex broker for you will take some work on your part. There are Forex Brokers who do not charge a trading commission and some that charge commission. It may be a good idea to talk with friends and business associates about their Forex brokers. You may get some good leads, and you’re certain to hear who to stay away from. There is nothing like word of mouth advertising. I have conducted numerous interviews and conversations with leading Forex Brokers, and the most important question you can ask them is always the same, I will explain. I realize you are in the market to make money and so am I. I really want to do my Forex Trading with your firm but I want to be discounted on my trading volume through trade rebates. This type of question for the Forex Broker will reveal two very important things to them. First, they will know that you have done your homework ,and the Forex Broker will know that requesting a rebate is well within the right of any Forex Trader. Second, the Forex Broker you are interested in will most likely not try to pull a fast one over on you, and that you are a knowledgeable Forex Market participant. This should be the first step in choosing the right Forex Broker, because if you are an active Currency Trader, you will be collecting on sizeable trading rebates every month regardless of your trading wins or losses.

If you are thinking of investing online, you could choose several online brokers and contact their help desks. Seeing how quickly they respond to your questions could be key in how they will respond to their customers needs. If you don’t get a speedy reply and a satisfactory answer to your question you certainly wouldn’t want to trust them with your business. Just be aware that as in other types of businesses, Before sign up service might be better than After sign up service. I would put your potential Forex Broker on the clock when you reach out to them. I typically would give the Forex Broker a six hour window to fully address your question by email or phone call. You must realize that even though a Forex Broker Firm calls you back in a few minutes after you send them an email or a call, that does not mean they are the best Broker Dealer available. It means they have a quick response division maybe, but that is it. The Forex Broker has not proved anything to or your interests until their promises are in writing. What I mean is that they can blow smoke at you till the sun goes down, but until they put your needs as a Currency Trader on paper, they are just words. I have found some of the lesser known Forex Brokers are the best to deal with. Remember, the more a Forex Broker Dealer advertises to have your business, the more that cost will be put into your trading spread or fees. The Forex Broker who has a good customer base and treats their army of Forex Trader right, is the choice for me. Those fancy commercials and websites the bigger Forex Brokers have are nice to look at but that is where my interest in them end.

Before you choose an online broker get a copy of their online demo account. What features are included? Is the software reliable? Does it offer automatic trading? Are there extra software features that cost more? I think a FREE demo account is essential for a quality Forex Broker to have and practice on, but they can cause a problem when it comes to live Forex Trading. When it comes to trading in the Forex Market, the Forex Demo account does not take into account the biggest problem a Forex Trader faces, that is emotion. It is great to put on a position in a Demo account that makes and losses incredible amounts of money. What if it was real money that was being won and lost in real time? What if you freeze up when trading your account and start hoping a bad trade back to profitability? these are just some of the many questions that eventually must be considered. I think a Forex Trading Demo Account is a good thing for very new Forex Trader, but be careful not too get to comfortable with trading it. The difference in trading a demo account and a live Forex account is huge.

Before setting up an account with a Forex broker you will need to do further investigation. How quickly will these brokers execute your buy/sell orders? What is their policy on slippage? What are the transaction fees? What is the spread, fixed or variable? What are the margin requirements and how are they calculated? Does the margin change with currency traded? Is it the same for mini accounts and standard accounts? All these fundamental questions should be investigated, and most of the quality Forex Broker present the answers to these questions right on their websites to view. The most important issue, in my opinion, is the Forex Trading Rebate that a Forex Trader should be receiving.

Don’t forget to be prepared to be able to offer the Forex Broker information about your trading volume. If you are trading your own system or trading an Expert Advisor, it is in your best interest to give your Forex Broker an idea of your monthly trading volume. This information that you provide your Broker will help them offer you the best Forex Trading Rebate possible.

by Jimmy Mack (Fx Trade Rebate)

Author: Jimmy Mack
Article Source: EzineArticles.com
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5 Easy Tips to Find Best FOREX Expert Advisors

January 20, 2010 · Posted in Currency Trading · Comments Off 

As you probably know, Forex trading is very risky, like any other form of financial speculation. In order to trade successfully you need the right skills and good training.

One of the easiest ways to get started in forex trading is to use an automated trading robot, or expert advisor…

These are automated trading systems, software and there’s a very wide choice of them available. Some are more effective than others, so finding the right forex robot can be a nightmare, meaning the one that works and suits your trading style…

After you’ve installed the automated trading system in your trading account it’ll be placing trades for your automatically.

If you’re trading with a good Forex robot it can also help you maximize the chances of success while minimizing the risk of losses at the same time, which is why it’s important to find a good one.

Some FX robots lose more money than they make, but don’t panic because you can test your trading robot in a demo account and tweak the settings…

Here you have 5 tips to make it easier for you to find really good Forex trading software…

  • The ideal automated trading software will count with different strategies that you can use in different market conditions. You need to make sure that these strategies suit the way that you want to trade. For example, your FX robot could have long and short term trading strategies, or one strategy for a choppy market and another for a stable market.
  • When you find a robot you like, read customer comments about the software in forums, look for the facts and not just for the opinions. Try to find opinions about the software and how it operates, information about possible problems encountered by customers and how they managed to solve them.
  • Only go for trading systems that offer full money-back guarantee for the purchase, in the event you’re not happy with it after trying it out in a demo account, you can ask for a refund and get your money back…and continue your research somewhere else…
  • It’s better to have a realistic approach. You want to focus on those forex robots that go along with your trading style and knowledge, and would probably work for you, and then narrow down your selection from there…
  • Depending on your knowledge and trading strategies you may need more “flexibility”. If you want to have more control over your trades you need to be able to trade manually. Try to buy forex robots that allow some level of customization and make sure you get some kind of tutorial or training material with your trading robot…

These tips should help you find the best automated trading robot for you, always having in mind your particular needs. I hope you can soon find a good Forex robot that will enhance your trading experience and help you automate your trading!

You can get my ecourse: Easy Forex Advisor for more information on Expert Advisors.

I’m also posting tips for new forex investors you may find useful if looking for Forex Easy tips.

Article Source:http://www.articlesbase.com/currency-trading-articles/5-easy-tips-to-find-best-forex-expert-advisors-1753799.html

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Forex Overview

January 10, 2010 · Posted in Currencies · Comments Off 

Each day, millions of trades are made in a currency exchange market called Forex. The word “Forex” directly stems off of the beginning of two words – “foreign” and “exchange”. Unlike other trading systems such as the stock market, Forex does not involve the trading of any goods, physical or representative. Instead, Forex operates through buying, selling, and trading between the currencies of various economies from around the world. Because the Forex market is truly a global trading system, trades are made 24 hours a day, five days a week. In addition, Forex is not bound by any one control agency, which means that Forex is the only true free market economic trading system available today. By leaving the exchange rates out of any one group’s hands, it is much more difficult to even attempt to manipulate or corner the currency market. With all of the advantages associated with the Forex system, and the global range of participation, the Forex market is the largest market in the entire world. Anywhere between 1 trillion and 1.5 trillion equivalent United States dollars are traded on the Forex market each and every day.

Forex operates mainly on the concept of “free-floating” currencies; this can be explained best as currencies that are not backed by specific materials such as gold or silver. Prior to 1971, a market such as Forex would not work because of the international “Bretton Woods” agreement. This agreement stipulated that all involved economies would strive to hold the value of their currencies close to the value of the US dollar, which in turn was held to the value of gold. In 1971, the Bretton Woods agreement was abandoned. The United States had run a huge deficit during the Vietnam Conflict, and began printing out more paper currency than they could back with gold, resulting in a relatively high level of inflation. By 1976, every major currency worldwide had left the system established under the Bretton Woods agreement, and had changed into a free-floating system of currency. This free-floating system meant that each country’s currency could have vastly different values that fluctuated based on how the country’s economy was faring at that time.

Because each currency fluctuates independently, it is possible to make a profit from the changes in currency value. For example, 1 Euro used to be worth about 0.86 US dollars. Shortly thereafter, 1 Euro was worth about 1.08 US dollars. Those who bought Euros at 86 cents and sold them at 1.08 US dollars were able to make 22 cents profit off of each Euro – this could equate to hundreds of millions in profits for those who were deeply rooted in the Euro. Everything in the Forex market is hanging on the exchange rate of various currencies. Sadly, very few people realize that the exchange rates they see on the news and read about in the newspapers each day could possibly be able to work towards profits on their behalf, even if they were just to make a small investment.
The Euro and the US dollar are probably the two most well-known currencies that are used in the Forex market, and therefore they are two of the most widely traded in the Forex market. In addition to the two “kings of currency”, there are a few other currencies that have fairly strong reputation for Forex trading. The Australian Dollar, the Japanese Yen, the Canadian Dollar, and the New Zealand Dollar are all staple currencies used by established Forex traders. However, it is important to note that on most Forex services, you won’t see the full name of a currency written out. Each currency has it’s own symbol, just as companies involved in the stock market have their own symbol based off of the name of their company. Some of the important currency symbols to know are:

USD – United States Dollar

EUR – The Euro

CAD – The Canadian Dollar

AUD – The Australian Dollar

JPY – The Japanese Yen

NZD – The New Zealand Dollar

Although the symbols may be confusing at first, you’ll get used to them after a while. Remember that each currency’s symbol is logically formed from the name of the currency, usually in some form of acronym. With a little practice, you’ll be able to determine most currency codes without even having to look them up.

Some of the richest people in the world have Forex as a large part of their investment portfolio. Warren Buffet, the world’s richest man, has over $20 Billion invested in various currencies on the Forex market. His revenue portfolio usually includes well over one-hundred million dollars in profit from Forex trades each quartile. George Soros is another big name in the field of currency trading – it is believed that he made over $1 billion in profit from a single day of trading in 1992! Although those types of trades are very rare, he was still able to amass over $7 Billion from three decades of trading on the Forex market. The strategy of George Soros also goes to show that you don’t have to be too risky to make profits on Forex – his conservative strategy involves withdrawing large portions of his profits from the market, even when the trend of his various investments seems to still be correlating upward.

Thankfully, you don’t have to invest millions of dollars to make a profit on Forex. Many people have recorded their success with initial investments of anywhere from $10,000 to as little as $100 for an initial investment. This wide range of economic requirements makes Forex an attractive venue for trading among all classes, from those well entrenched in the lower rungs of the middle class, all the way up to the richest people alive on the planet. For those on the lower end of the spectrum, access to the Forex market is a fairly recent innovation. Within the past decades, various companies began offering a system that is friendlier to the average person, allowing the smaller initial investments and greater flexibility that is seen in the market today. Now, no matter what economic position you are in, you can get started. Although it’s possible to jump right in and start investing, it’s best that you make sure you have a better understanding of the ins and outs of Forex trading before you get started.

The world of Forex is one that can be both profitable and exciting, but in order to make Forex work for you it is important that you know how the system works. Like most lucrative activities, to become a Forex pro you need a lot of practice. There are many websites that offer exactly this, the simulated practice of Foreign Exchange.

The services provided by online practice sites differ from site to site, so it is always a good idea to make sure you know all of the details of the site you are about to use. For example, there are several online brokers who will offer a practice account for a period of several weeks, then terminate it and start you on a live account, which means you may end up using your own money before you are ready to. It’s always a good idea to find a site that offers an unlimited practice account. Having a practice account allows you to learn the ways of the trade with no risk at all.
Continuing to use the practice account while you use a live account is also a beneficial tool for even the most seasoned Forex traders. The use of a no risk practice account enables you to try out new trading strategies and tread into unknown waters. If the strategy works, you know that you can now implement that strategy into your real account. If the strategy fails, you know to refrain from the use of that strategy without the loss of any actual money.

Of course, simply using a no risk account won’t get you anywhere. In order to make money with Forex, you need to put your own money in. Obviously, it would be ridiculous to travel to other countries to purchase and sell different currencies, so there are many websites that you can use to digitally trade your money. Almost all online brokerage systems have different features to offer you so you have to do the research to find out which site you wish to create an account with.
All brokers will require specific information of you to create your account. The information they will need from you includes information required to communicate with you, including your name, mailing address, telephone number, e-mail address. They also require information needed to identify who you are, including your Social Security number, Passport number or Tax Identification number. It is required by law that they have this information, so they can prevent fraudulent trading. They may also collect various personal information when you open an account, including gender, birth date, occupation, and employment status.

Now that you have practiced trading currency and set up your live account, it is time to truly enter this profitable yet risky world. To make money with Forex, you do need to have money to begin with. It is possible to trade with very small amounts of money, but this will also lead to very small profits. As is with many other exchange systems, high payouts will only come with high risks. You can’t expect to start getting millions as soon as you put money in to the market, but you can’t expect to make any money at all if you don’t put in at least a 3-digit value.

As most Forex brokers will warn you, you can loose money in the foreign exchange market, so don’t put your life savings into any one trade. Always trade with money that you’d be able to survive without. This will ensure that if you get a bad trade and loose a lot of money, you wont end up on the streets, and you’ll be able to make a comeback in the future.

So how does trading currency work? Logically, trades always come in pairs. For example, a common trade would be the United States Dollar to the Japanese Yen. This is expressed as USD/JPY. The way to quote a trade is kind of tricky, but with practice it becomes as natural as reading your native language. In a Forex quote, the first currency in the list (IE: USD in USD/JPY) is the base currency, and in the quote the base is always one. This means if (hypothetically of course) One USD was worth Two JPY, that the quote would be expressed as 1/2.

When trading in Forex, we use pips. Pip is an acronym for “percentage in point”. A pip a certain decimal place in a number compared to the same decimal place in another number. Using pips, we track the gains and losses of a currencies value compared to another’s. Let’s take a look at an example. Say a value is written as 1.0001/1.0004. This would indicate a 3-pip spread, because of the 3 number difference in the fourth decimal place. Almost all currency pairs go to the fourth decimal place. The only currency pair that doesn’t is that of the USD/JPY, and it goes to the second decimal place. For example, a USD/JPY quote with a 3-point spread would look like this: 1.01/1.04.

A very common aspect to the foreign exchange is leverage. Leverage trading, also known as trading on margin, is a way to amplify the amount of money you are making. When you use leverage trading, you borrow a certain amount of money from your broker and use that to make your transaction. This allows you to trade with more money then you are actually spending, meaning you can make higher profits than you would normally be able to make.

There are risks associated with leverage trading. If you increase the amount of money you are using, if a trade goes bad, then you’ll loose more money than you’d usually loose. The risks are worth it though, because a big win on margin means a huge payout. As mentioned before, it is definitely a wise idea to try out leverage trading on your practice account before you use it excessively on your live account, so you can get a feel for the way it works.

Now that you’re an expert on the way Forex trading works there are some things about foreign exchange that you should know. Forex is just like the stock market in that there are many benefits and risks, but if you are going to invest your time and personal money into this system, you should be fully aware of all of the factors that may change your decision to invest in the currency market.

Generally speaking, Forex is a difficult subject to opinionate on, because of the different factors that may alter the currency over the years. “Supply and demand” is a major issue affecting the Forex organization, because the world is in constant variable to change, one significant product being oil. Usually the currency of all the nations around the globe is described as a huge “melting pot”, because of the fact that all of the interchanging controversy, political affairs, national disputes, and possibly war conflicts, all mixed together as a whole, altering the nature of Forex every second! Although problems such as supply and demand, and the whole “melting pot” issue, there are a numerous amount of pros to Forex; one being benefited profit from long term stock. Because of the positive aspects of Forex, the percentage of the use of electronic trading in the FX market (shortened from Foreign Exchange) increased by 7% from 2005 to 2008. Despite the controversial realm of Forex, it is still recognized today by many, and is still popular amongst many of the nations in the world.

Of all the organizations that recognize Forex, most of them practice fiscal policy, and monetary policy. Both policies are dependent on the nation’s outlook on economics, and their standards set. The government’s budget deficits, or surpluses against the country, is widely affected by the country’s economic status of trade, and may critically inflict the nation’s currency. Another factor for the nation’s deficit spending is what the nation already has, in terms of necessities for the citizens, and the society. The more the country already has, prior to trade, the greater the budget for other demands from the people, such as technology, innovations in existing products, etc. Although a country may have an abundance in necessities, greed may hinder the nation’s economic status, by changing government official’s wants, to want “unnecessary” products, therefore ruining or “wasting” the country’s money. This negative trend may lead to the country’s doom, and hurt the Forex’s reputation for positive change. There are some countries which hold more of a product (such as oil stated above), the Middle East dominating that sector in the circle of trade; Since the Middle East suffers much poverty, as a result of deficit spending, and lack of other resources, they demand for a higher price in oil, to maintain their economic status. This process is known as the “flights to quality”, and is practiced by many countries, wanting to survive in the trading network that exists today. Interest rate, and leveraged financing, is due to the inflations that occur in many parts of the world from one point to another. Inflations wear down purchasing abilities, causing the currency to fall with it. In some cases, a country may observe the trends that it takes, and beforehand, take action to avoid any mishaps that had been experienced before. Sometimes, the country will buy more of a product, or sell more of a product, otherwise known as “overbought” or “oversold”. This may aid in the country’s future, or devastatingly hurt the country, because of lack of thought, as a result of fraud logic.
“What started out as a market for professionals is now attracting traders from all over the world and of all experience levels” is part of a letter of the chairman of Forex, and it is completely true. There is even a 30-day trial for Forex online at http://www.forex.com/forex_demo_account.html if anyone interested in Forex wants to learn more about the company. Although affected by leveraged financing, interest rate, and causing an increase or decrease in exchange rate risks, Forex can be a great way for quick profits and integrated economy for the country. In investing in stocks that are most likely to be successful for a long period of time, and researching these companies for more reference and background that you need to know, Forex can aid in these fields. In the Forex market of different levels of access, the inter-bank market composed of the largest investment bank firm, which contains “spreads”, which are divided into bid, and ask prices. Large amounts of transactions, with large amounts traded, and requesting a small amount of difference is known as a better spread, which is preferred by many investors.

In comparison to the Stock Market, the Forex organization is just as stable, and safe, if the users on it are aware, and decently knowledgeable about the topic. The Stock Market Crash in 1929 was a result of lack of thinking, because of the extremely cheap shares, replacing the shares originally costing thousands of dollars. When the Stock Market crashed, and the New Deal was proposed by Franklin D. Roosevelt, leveraged finance was present, and utilized to stabilize the economy at the time. The United States was extremely wealthy and prosperous in the 20s (prior to the depression), and had not realized what could happen as a result of carelessness in spending. This is a result of deficit spending, and how it could damage a society, in less than a decade! When joining Forex, keep in mind that with the possible positive outcomes, and negative ones, there are obstacles that must be faced to become successful.

As a result of many catastrophic events, such as the Great Depression that occurred in the United States, people investing in the Forex organization keep in mind of the dangers, and rewards that may come upon them in a certain point in time. With more work and consideration outputted by a person, or organization in the Forex program will there be more signs of prosperity as a result. In relation to individuals such as Warren Buffet and George Soros, they have become successful through experience, and determination through many programs, and research, for security purposes. Reserving some of the most riches people in the world, to others that are just test driving it to discover its potential for them, Forex is a broad topic that experiences different people everyday. Forex may not help everyone that invests in it, but if enough outputted effort is amplified in attempts to better the economy, it is most definitely something that any person should experience first-hand.

Author: Sean Supplee
Article Source: EzineArticles.com
Provided by: Duty on LCD/Plasma TV

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Can I Really Make a Living Day Trading Online

January 1, 2010 · Posted in Currency Trading · Comments Off 

The answer to this question is a qualified yes.  Many people make a great income day trading the emini contracts from their computer at home.  That being said, there are some important prerequisite skills you need to develop before you make your first foray into the trading world, and the first question you need to ask yourself is “Am I committed to learning how to day trade?”  If you don’t have a high level of commitment to the task of learning, you should shelve your plans to day trade.  The markets can be very unforgiving to those who think they can start a trading account and the markets will reciprocate and fill their account with cash.  Trading is a skilled profession, but the skills can be readily learned.  Like any profession, your commitment is
all that is needed to master the skills of day trading.

What do you need to learn to day trade?

There are several things you can do to hasten the learning curve in day trading, but first you will need some basic necessities.

1.  A reliable computer with at least 2Gb of RAM.
2.  A high speed Internet Connection, preferably through the cable company, but DSL will work.
3.  An office in your home or somewhere you can work uninterrupted.

That takes care of the physical necessities, which is the easiest part of your preparation to trade.  It is important that your computer is in great working condition and your Internet connection is reliable and fast.  A dial up connection will not work in day trading, as the speed required to execute trades is insufficient.  Cable modems are optimal as the speed and throughput is superior to anything else on the market.

Next you will need to learn a system and practice for a time.  There are several reputable and scores of disreputable trading education firms out there and I have a favorite I reference in the resource box below.  I don’t recommend buying a book or two and then trying to tackle the markets.  Learn from a good firm and develop a mentoring relationship with the firm.  I think this is one of the most important aspects of trading; most good traders had someone who served as a mentor to them and a backstop when they get in a rut or simply have questions about the market.  Know your trading system inside and out, then spend some time and trade on a demo account to learn how the trading platform works.

You will want to establish a working relationship with a futures brokerage, and an individual broker in that firm.  Many of the brokerages have substantial online and off line resources that can be of great help in your trading.  Usually your mentor will have a suggestion for a good brokerage, and quite possibly an individual broker in that firm who has been helpful to his past students.  As I said, I always cultivate a good relationship with my broker as they can be very helpful in your trading and account management.

One of the toughest skills to master in trading is not the technical aspect of the trade.  No, you would think all the charts and lines would be confusing, but that is not the case.  Mastering your own emotions is among the most challenging aspects of trading and probably the causes the demise of most new traders.  Once you have learned a good system to trade, you must require yourself to stick to that system regardless of what your emotions tell you.  It is very common to see a trader get off to a great start and then start improvising a bit and find themselves consistently in losing trades.  Self-discipline is the name of the game, and maintaining self-discipline is a challenging proposition.  Trading psychology is an emerging field in trading and their findings are startling, and most of the findings point to the euphoria created by winning trades and effect it has on the ego of the trader.  Winning trades beget sloppy trading technique and overconfidence in an individual trader’s ability.  The consequence for this kind of thinking can be catastrophic and the market has little regard for your crestfallen ego when you lose your trading self-discipline and trade outside the parameters of the system you were taught.  Trading systems work if you stay true to the system, but when you decide to take trades “on a lark” you will find the machinations of the market to be very unforgiving.  Self-discipline is the name of the game.

The day trading profession is the fusion of technology and skill, and the markets have developed specific products for day traders to use, specifically the emini contracts.  You will learn in your trading training which markets to trade.  I always recommend a trader learn one market before he/she begins to tackle another emini market.  Each market has it’s own personality and you are well advised to learn that personality before jumping from contract to contract.

Hopefully this brief article has given you some insight into day trading, and encouraged you to seek out information to see if day trading is a good profession for you.  I love it, because I get to spend more time with my family and children, travel, and I don’t have a boss.  If those are goals you desire, you might want to investigate day trading as a profession.

You can learn to trade from a 15 year veteran trader, not a salesmen. This program comes with a lifetime mentoring program and an educational package that is second to none. Additionally, the trading system is time tested and has been in use more than ten years. You can get your emini starter pack (valued at $500) by going to Click here for your trading pack at Trading Concepts, Inc

Article Source:http://www.articlesbase.com/day-trading-articles/can-i-really-make-a-living-day-trading-online-1650818.html

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7 Advantages Of Trading Forex

November 24, 2009 · Posted in Currencies · Comments Off 

Foreign Exchange market, abbreviated FOREX or FX, is the largest financial market in the world. Forex traders include many financial institutions, such as large banks or central banks, as well as governments, currency speculators, and multinational corporations. The average daily trade currently exceeds $3 trillion.

Although Foreign exchange trading can be confusing for newbie’s, the market still lures many people in because it has numerous advantages when compared to other markets like stocks or commodities. Forex trading is somewhat different from stock exchange markets and there are opportunities for those who take part in it. Do not be tempted to jump into trading forex before you have a clear understanding of how the market works.

So how does the forex market work? Here are the key features of forex that differentiate it from other trading markets:

(1) Forex trading does not happen at one location but through use of the telephone and networks, although there some main trading centers in major cities all over the world. Foreign exchange brokers conduct business from their office via a microphone that is connected directly to a phone line. The brokers voice is continuously being transmitted to dealing banks’ speakers. To have a better feel for how this is done, visit http://www.forexvoice.com and you will hear brokers calling the bid/ask prices. Currencies are quoted in pairs, for example EUR/USD. A trade in forex is equivalent to buying one currency while at the same time selling another. The sell quote is displayed on the left and is the price at which you can sell the base currency. The sell quote is also referred to as the market maker’s bid price.

(2) Forex is extremely liquidity. The large number of traders on the forex market and their diversity makes forex unique. The exchange rates, which represent the basis of the forex market, can be influenced by a great variety of factors, hence the opportunity for speculations that exists on this market more than on any other financial market. Although the forex market has low margins of profit by comparison to other fixed income markets, its large trading volumes allow for profits to be considerably high.

(3) Forex trading hours and the geographical dispersion are unique. Forex trades virtually for 24 hours each day from 5pm EST on Sunday until 4pm EST Friday. A trader can choose to trade whenever it is convenient for him or her. You even have the possibility of using auto-trading on many trading platforms.

(4) Another characteristic specific to the forex market is that it lacks a central regulatory agency. There are some countries that regulate their dealers. You should only do business with regulated dealers. Otherwise, you may wake up one day and find out that your dealer has gone under taking your account with it!

(5) Forex provides the opportunity to trade with leverage, hence higher profit or loss. In the stock market, you could use margin to achieve a leverage of 2:1, while in forex market leverage of 100:1 or 500:1 are available.

(6) You can open an account with as little as $25 to start trading with. With most brokers/dealers, you can open a demo account and practice for as long as you like without paying a dime.

(7) There are free real time quotes and sophisticated charting programs for forex. An excellent example is Metatrader that you can download for free with tons of technical analysis and expert advisors to show you how to trade forex.

Just as in any other market, trading forex along with its exclusively high profit potential, carries a high risk that must be understood. It is possible to gain success only after good training including a familiarization with the structure and kinds of forex, the principles of currencies price formation, the factors affecting prices alterations, trading risks levels, and money management. You also need sources of information necessary to account for all these factors. You need techniques to analyze or predict market movements as well as trading tools and rules. In future articles we will discuss some of the pitfalls beginners should look out for before starting forex trading.

Author: Femi Sunmonu
Article Source: EzineArticles.com
Provided by: Excise Tax

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Receiving Forex Trading Education

November 19, 2009 · Posted in Currencies · Comments Off 

There are many people in this world who want to do Forex trading. To start with Forex trading people should always learn about Forex trading first. They should take proper education on Forex trading. It is always advisable never to do Forex trading without proper knowledge. With the correct Forex trading education, a person can work his own way towards trading and with a clear profit.

The basic thing to know before starting Forex trading is what is Forex? Forex is basically known as foreign exchange. Forex is the immediate exchange of one country’s currency for another. The trading should be done at the right time to gain profit. A person can learn all this with thorough Forex trading education.

The main part of Forex trading education is to learn about the market conditions. As the scenario of Forex market keeps on changing, Forex trading education will help you observe these market conditions and how can they be favorable for you.

The second step of Forex trading education is to know about the risk control and risk management. With education on this you can learn to manage yourself and your emotions do not overpower your thrill of the possibility of making money. It trains you how to control your losses.

One other vital part of Forex trading education is to know about how to open or manage your Forex trading account. You should always start your trading with the demo account. With demo account there is no chance to lose money and it is just as realistic as the real trading account. Forex trading education will help you know when you can trade in the real world. It is suggested that you should open your live trading account only when you are prepared.

The various ways to get Forex trading education are:

  • Online Forex trading education, as there are many free websites available that provide free demo accounts for practicing.
  • Free seminars, which are held and are available to participate in easily.
  • Take advice from the people who are into Forex trading from last many years. They will be able to provide complete overview on the Forex trading topic.

The Forex trading education provides complete information and knowledge to the people and makes trading easy for them.

Author: Juan Saton
Article Source: EzineArticles.com
Provided by: Programmable Multi-cooker

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Forex Warlord Review

November 9, 2009 · Posted in Currency Trading · Comments Off 

Have you tried every darn Forex Robot out there and still haven’t found “the one”? Maybe you haven’t been looking in the right places or maybe you have and have just been misguided. Well the search is over for you now my friend… Take a look at this

Forex Warlord gives you the advantage over the “experts” that you have always wanted when trading. Imagine earning the same amount of money the Top Forex guys earn with about 5% of the workload required to make these sums. Well thanks to the 3 in 1 Forex Warlord you get this and much more. It is so easy to use that even a child could use it to profit.

People have been using Forex Warlord for a number of weeks and it is unbelievable the number of features this robot has…It comes with 3 different trading strategies unlike anything I’ve seen before, It has been designed to give you total control over your Forex trades, which in turn helps you to optimize your profit potential for maximum gains!

This has been one of the industries best kept secrets for a while now, but finally for a limited amount of time I have agreed to open the doors to you all. This robot turn a $3,000 account to over $33,000 in the space of 3 MONTHS!

LAUNCH DATE: November 10th 2009 AT 12.00PM EST

This Robot is unstoppable and no wonder it has been kept a closely guarded secret for so long. Expect to see a sharp increase in your bank account followed by a desire to go shopping if you are lucky enough to get your hands on a copy!

I will give you more info as it comes to me, as I would hate you to miss out on this opportunity to change your life and the way you view the Forex Market forever. Remember this is a limited offer restricted to 300…If you are remotely serious about being successful via Forex trading, then it is essential you have the Forex Warlord in your corner!

Find Out More Here
==> Forex Warlord

Rob Trader – Forex Expert
http://tradingtoollist.co.cc/

Article Source:http://www.articlesbase.com/currency-trading-articles/forex-warlord-review-1435249.html

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E-currency Trading – An Alternative to Futures & Forex Trading

October 31, 2009 · Posted in forex trading · Comments Off 

I find it amazing that nearly everyday I receive something online or offline that is the greatest break-through in Trading. You know the stuff. This system or that method has been thoroughly tested and back-tested in every conceivable fashion and is wildly successful. Some work for a period of time but most do not. The decades old statistical fact still remains, 90+% of Futures Traders will lose all of their trading capital within their first year of trading. Now there is a new and promising alternative.

Enter e-Currency Trading. In simple terms e-currency is Internet Money. E-Currency allows the purchase of Internet goods and services at lightning speed and most importantly with a high level of security. Much higher than credit cards, bank transfer etc. The demand for e-currency should only grow as Internet Commerce grows.

So what does this have to do with trading? There are literally hundreds of different e-currencies. Each is backed by an underlying Currency or a precious metal. The need arises to exchange between these e-currencies or convert an e-currency to hard cash. Much like the Euro is to the European Union. We can profit from the exchanging process and profit from the fluctuation of the underlying currency value.

The same basic strategies apply to e-currency trading as with futures trading. Supply and demand dictates price primarily. You could buy e-currency that has historically performed well (buying the trend) or go the opposite way and buy those that are under-performing, looking for a turn-around. You can even chart them if you like.

Leverage, that double-edged sword that Futures Traders are so familiar with is also present in e-Currency Trading. You can borrow against your portfolio to buy more e-currency. The compounding affect is almost outrageous. Some would argue that you never have to pay back the leverage. I contend that it is paid back if you closed your e-Currency account, because your final balance would be less the amount leveraged. The point here is the leverage in futures trading is often times the demise of a well intended trader versus the leverage afforded an e-currency trader combined with the daily compounding affect creates portfolio growth at a phenomenal rate. It is not uncommon to see portfolio growth of 20 40% per month.

Futures Trading and e-Currency Trading have a common downside. The learning curve is huge and can be frustrating and costly. Each has unique terminology, which is impossible to work around until you have a good understanding of the meaning. Thankfully in this world of information, we are able to find resources online and offline that shorten that curve. How much it is shortened is dependent on how much time you want to dedicate.

Industry experts have debated for years the optimum amount one should fund their futures trading account with. The obvious moving target is enough capital to withstand the drawdown periods. Many factors go into this but Ive seen numbers range anywhere from $10,000 to $50,000 and up. If this is the case then there is little doubt why most futures traders lose as most are willing to fund only the amount required to cover Margin or the Brokers account minimum usually a few thousand dollars. One of the biggest reasons for small business failure is being under capitalized, the same holds true in futures trading.

E-Currency Trading is different in that the experts recommend starting with a few hundred dollars and let the system build your account. Whatever route you choose, only trade with risk capital.

E-Currency Trading certainly has advantages over traditional futures trading and may well be worth your serious consideration.

Author: Merv Thompson
Article Source: EzineArticles.com

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Is Currency Demo Trading Bad For Your Financial Health?

October 29, 2009 · Posted in Currency Trading · Comments Off 

From the time when brokers started providing free forex demo accounts, Fx demo trading  has gathered a lot of attention. It is usually recommended without reservation both for beginners and for more experienced traders who want to test new systems. But is it appropriate for every circumstances, or does it sometimes have disadvantages? Could too much forex demo trading be unpleasant for your financial health? We will look at the pros and the cons of demo accounts so that you can make up your own mind.

Firstly let us  explore at what is in it for the broker. Why do they permit you explore their system, with their resources, for free? The main motive, of course, is that they are hoping you will register for a real account. But if you are a novice, they would like to get you making money on a demo trading account so that you get really eager about putting in your own personal money. If you are currently trading, they want you to see how great their platform is so that you will contemplate moving your account.

There is nothing unsuitable with any of that. Practicing trading is a great way to learn. In fact, if you were to read a couple of books on forex and then start trading for real right away, pretty much anybody would tell you that you were crazy|. So the main advantage of a practice account is that it lets you test out a broker’s services or a system without any risk.

The quandary comes if you do not understand that there is a differentiation between trading virtual money and trading for real. In your demo account, you are likely to take bigger risks than you would take in real trading. If you are lucky and do well on those trades, you could become overconfident. You could think you had mastered forex trading when really you were just starting out. So you put all your savings into a live trading account, start to try to follow the same system, and bang! The risks were too high, the stress was too great, a couple of losing trades and you are wiped out.

So forex trading demos can be very helpful, but they have to be used right. From the moment that you open a demo account, remember that it is extremely critical to stay disciplined. Employ a system, follow a trading plan, make a huge attempt to operate as if that was your money. Subsequently move to actual trading after you can see a pattern of profits and losses, with an overall gain. At that time you can open a micro account and start trading very small sums. That is the best way to use a forex mini demo account account.

With years of trading experience, I want to help the beginner trader to achieve their goals of being successful.

There is no magic bullet that will make you instantly wealthy trading the stock or forex markets but with good trading practices and effective money management techniques, you can grow you to be self assured of your trading ability making trading very profitable.

Discover Forex tips and trading techniques at the at the Forex Learn Exchange

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