Forex Trading 101: Learning Guide for FX Beginners

February 9, 2010 by Teddy Low · Leave a Comment
Filed under: Currencies 

Being new to FOREX trading? Dont worry, getting started in FOREX trading is easy and you can always test your skills first in a demo account before you go live with real money. To get started in FOREX trading, we have to get to know what FOREX is. For the inexperienced, FOREX trading involves buying and selling the different currencies of the world. A FOREX deal is made when one buys one currency and sells another at the same time. It is always traded in pairs, Euro/USD, CHF/USD, USD/JPYyou get short in a currency every time to buy another and the profit is made when you buy-low and sell-high.

Facts on FOREX market

FOREX market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily and the figure is nearly 30 times larger than the total volume of equity trades in United States. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. There is no centralized location as stocks or futures markets and trades are done around the clock. Everyday FOREX trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always response to the market regardless of the local time.

Although FOREX trading involves such a big volume of trades nowadays, it is not made available for the publics until year 1998. In the past, the FOREX market was not offered to small speculators or individual traders due to the large minimum business sizes and extremely strict financial requirements. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the currency exchange market’s extraordinary liquidity and strong trending nature of world’s main currency exchange rates. Only until the late 90s, FOREX brokers are allowed to break huge sized inter-bank units into smaller units and offer these units to individual traders like you and me. Nowadays with the rapid growth of Internet and communications technology, FOREX trading has become one of the hottest make-money-at-home-businesses for those who wish to avoid conventional 9-5 day job.

As a fact in FOREX trading, FOREX is mainly traded in large international bank. According to Wall Street Journal Europe, 73% of the trade volume is covered by the major ten. Deutsche Bank, topping the table, had covered 17% of the total currency trades; followed by UBS in the second and Citi Group in third; taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For market participants segment, approximately half of the transactions done were strictly between dealers (i.e. Bank, or large currency dealer); others are mainly between dealer and non financial institutions.

Why FOREX is popular?

There are several reasons why FOREX had became such a popular investment among world wide speculators.

In FOREX trading, you can always use technology for your own advantage. The FOREX market has made an amazing transformation since the advent of the internet. Technology has now made it possible for smaller investors to play on the same level as larger corporations and banks. Anyone with a computer and a will to succeed can start trading currencies from the privacy of their home or office. Online FOREX trading has changed the way that investors do business. With access to your portfolio 24-hours a day, it is really very simple to get started. You can choose whether to hire a professional to handle your transactions, or you could choose to do them yourself.

Also, FOREX trading provides relative large leverage rates to individual traders. FOREX traders can do business with up to 200 to 1 leverage rates. With this advantage, ROI is escalated dramatically and traders can always start up small with capital as little as $1,000.

Getting started in FOREX trading

You dont need much to get started with FOREX trading. A computer with Internet access, a funded FOREX account with foreign currency exchange broker, and a trading system should be sufficient to get things started.

To reduce the risks of losing money, some basic charting knowledge is as well recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of exchange rate fluctuations. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. As stated by expert FOREX trader Peter Bain, charting is an essential tool in FOREX trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minute charts are used while trading in FOREX. As quoted from his informative newsletter — Daily chart will help you define the overall trend from a position trading point-of-view, and the hourly (one hour) chart will give you a feel for the intraday trend. The 15-minute chart is used for entry and exit with assistance from the five-minute chart, where price is moving quickly, and you need to be closer to the action.

Being one of the technical method, FOREX charting is based on the principal history repeats itself. FOREX traders who study charts predict the market future by evaluating past market performance. The time frame used for charting might differs for different traders, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the past five to ten years before getting involved in a FOREX trade. A huge variety of FOREX charts are available in the market. Some charting methods are very simple, using a few FOREX indicators to show trading direction; other charts may include up to forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and price are some of the well known indicators in charting.

Choosing the right FX dealer is a way to avoid unnecessary risks. FOREX dealers are not all regulated the same way. Although FOREX dealers must be regulated by law, firms and individuals can solicit retail accounts for FOREX dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your FOREX dealers are regulated. If they are not, you may be exposed to additional risks.
Also, beware of dealers with investment schemes that sounds too good to be true. Pay extra cautions to dealers that you first knew and always look into the investment offers. If you are from United States, you can always refer to CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for further information.

Conclusions

You come to this article probably because of you are new to FOREX and were looking for some readings on the Internet. To be frank, FOREX can be very profitable but the risk lie beneath is equally great. Remember to always trade with proper investment plan and strategy. Read books, attend courses, watch video seminars, read papers, or even practice first with a dealers demo account to get yourself ready. Trade smartly, and gain the maximum out of FOREX good luck!

Author: Teddy Low
Article Source: EzineArticles.com
Provided by: Import duty tariff

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10 Minute Forex Wealth Builder – Overview of Dean Saunder’s Course

November 26, 2009 by Ashley D. · Leave a Comment
Filed under: Currencies 

If you are an avid forex trader, you should already know by now how the forex market has grown explosively and profitable it is since the last decade. However for people who do not possess any first hand experience dealing with foreign exchange, trading the forex market part time well could turned out to be one of the most over looked, most profitable part time incomes ever. Besides, the advantage with forex trading is that any individual traders will stand a chance to gain profitable returns from just single investment. The only disadvantage which comes along with forex trading is the potential risk in terms of money management and the lack of right mindset whenever a trading is executed.

In addition, there is also another problem related to conventional forex trading which requires the trader to constantly monitoring their trade in front of their computer screen, which may be time-consuming and inconvenient for all traders who probably have a full 9-to-5 job.

However, this problem has been solved by an elite trader by the name of Dean Saunders, author and creator of the 10 Minute Forex Wealth Builder course. Besides containing some useful information on forex trading, the course also includes 2 revolutionary forex systems that might help to relieve the burden carried by all conventional forex traders regardless of their trading experience.

Another plus point of 10 Minute Forex Wealth Builder is the simplicity of the system interface. After reviewing the entire course, I would say that other forex systems in the market are far more harder to understand and operating, which might seriously put off people who are inexperienced or lacking of technical skills. This is one of the key reasons why I would recommend Dean Saunder’s Forex Wealth Builder system for all beginner and intermediate forex trader.

Why 10 Minute Forex Wealth Builder is Superior ?

Believe it or not trading with a limited amount of time is actually far easier than sitting and watching the charts all day long, this is due to several reasons.

First you are usually not around to watch the trade play out, this eliminates the greed and fear factor which is a huge problem to many new traders who exit too early due to fear of losing the profit they already have or being too greedy and holding on too long for more profit.

Second, it is a well-known fact that the larger the time frame is, the more reliable the signals are to trade. Due to the fact that you are trading the longer term charts, you have cut out a lot of the noise in the market. This noise is what many traders try to day trade spending 8-12 hours a day in front of their pc and even then they are still losing money.

In 10 Minute Forex Wealth Builder, Dean Saunders recognizes the above scenario as well as the essence of time to any forex trader and thus he has included two very unique and special systems to the buyer which will accomplish just that. However, the only requirement is that as long as the user can spare 10 minutes a day on the evenings then they are all set to start trading forex and slowly building their trading account and wealth, all by using 10 Minute Forex Wealth Builder.

What are the 2 systems in this package ?

There are 2 types of systems; the first one being the Breakout System while the second system centers on Swing Trading method.

Here are the summary for both systems.

A) The Breakout System:

This forex system relies on price action for entries into the market with the trend. Dean Saunders states that this system is a secret to trading forex successfully and requires only 10 minutes each evening to trade.

For more details, user can find in-depth explanations about this system on page 38 of the forex builder course.

B) 10 MFWB Swing Trader

Similar to the Breakout System, the Swing Trader System requires just 10 minutes to initiating the first trade. This system is all about taking high probability swing trades and consists of 11 pairs of profitable currencies.

Further details can be found on page 55 of the course.

For both systems, Dean Saunders has included comprehensive step-by-step video tutorials so that all buyers of 10 Minute Forex Wealth Builder can learn and copy the same strategy that allows Dean to produce an average of 300 to 400 pips in every trades.

For people who are doubtful about the reliability of these systems, your worries will be significantly reduced as the systems provide you with the actual proof of its existence with its Live Trade Demo.

The uniqueness of these two systems is the use of no indicators at all. Utilizing both Breakout and Swing Systems and following the 11 currency pairs, the trader will receive around 2 to 3 trades a week.

Click here for more details on how you can boost your trades by ten-folds with Dean Saunder’s 10 Minute Forex Wealth Builder.

Author: Ashley D.
Article Source: EzineArticles.com
Provided by: Hybrid and Electric Cars

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