Forex trading is a high-risk investment. Past performance is no guarantee of future results. You should only invest "Risk Capital" and never with money you cannot afford to lose. Lets first get to the introduction of forex. FOREX is an international online currency exchange that was established in It is now the premier foreign currency exchange market in the world, with an average daily trading volume reaching as high as one and a half trillion. Depending on the market, a bank, corporation, or individual can make a windfall profit through FOREX online currency trading.
Another reason to do currency trading is to get into a secured position by eliminating trading risks arising from foreign exchange rate movement.
In other words, FOREX online currency trading can help a bank, corporation, or individual to weather changes in foreign exchange rates by already having the foreign currency they need on hand. FOREX is unique in terms of trading exchanges. The rate of foreign exchange changes so quickly those traders must be able to react to market shifts within seconds. Rather than trading telephone calls and trying to catch a great deal by shouting and waving papers, FOREX trading is accomplished with a touch of a button on the computer.
FOREX exchange rates are continually updated on many websites. It is simple to buy one currency when it is low and sell it when it is high. However, what goes up can also come down, and new traders on the FOREX online markets must be prepared for losses.
Keeping updated with the world market is the best way to prevent losses with currency trading. Learning which countries are experiencing economic growth or recession is essential to make the best currency trading decisions. It is always good to invest in currency from nations who are experiencing growth. Likewise, avoiding countries that are historically unstable or are experiencing war or international economic sanctions is only wise.
FOREX online currency trading is not for everyone, but with some knowledge and skill, it can be very lucrative. Posted by Ping at Sunday, January 06, 20 comments: Links to this post. He or she, who is known to gamble on horses, or dogs, or other sporting events etc.
However, if a person speculates on buying and selling securities, foreign currency, or property, their classification would point to a persona grata. Both cases are of course a form of gambling dressed in different clothing. In both cases, there is a possibility of risk loss or the possibility of bigger gain. The need to arrive at an opinion without having positive evidence to back it up is equally there. So is the problem that complete facts are hardly ever disclosed, to enable the finding of a certainty.
In spite of these hurdles, in the case of property and foreign currency buying or selling, the chances of getting it right are better as opposed to finding the outcome of a horse or a dog race, or a football game. Getting involved is also less of a worry, because even if you get it wrong, you still have that house or that other currency you bought.
The result is over only when you say, since these investments can eventually regain value, and actually show a profit. Backing losers in racing and other forms of gambling can mean that for the serious or occasional gambler, the money is dead and buried.
Of course, some gamblers attach a lot of importance to the thrill effect of their bets. There is no doubt that betting on sport events, cards, or many casino games can be thrilling, but so is the constant movement of the value of currencies. That wheel goes round and round nonstop, but you can get on and off whenever you like. There are many foreign currency exchange companies ready to let you operate, offering very good rates.
Never think of a bookmaker as an enemy whom you have to beat, your selection may be the one he also wants to win. Also, remember your foreign currency exchange office as a friend that makes it possible for you to play at good currency rates. You are putting your wits against a market that has no financial interest in your winnings or losses.
A realtor has equally no interest to see you lose any money. On the contrary, he likes you to be happy with the purchase of your property. Even if the prices should go against you, he knows that in due course things will change. A speculator in the foreign currency game increases the chances of success by keeping in touch with as much relevant data as possible, which means that there is never a dull moment. The same applies to a property speculator.
By having to constantly study the market and world affairs, the person becomes necessarily rather well read and interesting to talk to. Amongst other things, that gambler is a persona grata. These days, more and more gamblers turn to the forex game. It keeps them amused as well as thrilled. Instead of a horse or a tennis star etc. There is little doubt that the well prepared person has the chance to prevail.
The currency market is not a geared slot machine. It has inexhaustible money to hand out if you get things right, and does not care if you keep winning, should you be clever enough. Who knows, you might be champion material. Posted by Ping at Sunday, January 06, 8 comments: Dec 31, - Jan 4, Posted by Ping at Sunday, January 06, 1 comment: Many today prefer to buy stocks online because they don't have the time to get involved in trading decisions during the day and want to take decisions only when they are free, that might even be at midnight.
Also online trading service providers offer the individual a whole wealth of information to analyze and internalize before making the investment. Further the commission that these service providers charge on each transaction is much less than what on-floor brokers do.
So the investor earns a lot more on every transaction. While trading online, there are a few things that you should be careful about. We will try here to provide you with some basic indicators. You must understand that however fast your internet connection is, and whatever software and hardware you are using there will be some time lag between the time you click to place your order and the actual time when your order gets processed and registered.
This time lag, depending on how long it is can seriously alter your final gains or losses. What you can do is to see the time-lag is kept to a minimum. That would be possible if you have the best set-up in place and your trading firm provides its subscribers with the best service. You must get real time updates and stock quotes from your service provider. If it is delayed then you will be placing orders for rates which are long history.
And then it will take further time to process your order. What you will finally get is something a lot different from what you were expecting. So the feeds have to be live and real time.
There can be no two-ways about it. In this article we will briefly try to explain a few fundamental things that any investor on the stock markets should know. And since you will be investing online and there will be no guide for you, knowing these basics will definitely stand you in good stead. As online trading get increasingly easy many investors drop their guard. You just cannot take it easy on the net. There are a few simple things you should practice while investing on the net like always have all you transactions confirmed by your online brokerage firm, never trade from unprotected computers, regularly update the security features of the software of your computer, never provide your account information to anyone, etc.
Posted by Ping at Wednesday, January 02, 2 comments: If you have any experience in using any kind of charting packages to assist you with your forex trading, you will know that there are endless different technical indicators you can use. In this article I'm going to be asking what are all these indicators and which ones do you really need?
As you can guess from the title of this article, there are essentially four different types of technical indicator and they are as follows: MACD, Parabolic SAR and the various moving averages are a few examples of trend indicators and they can all be used to identify a trend.
It's widely argued that you should only trade with the trend so all of these indicators will help you to take the decision out of your hands, and therefore dictate which way you should be trading. Your only decision now is at what level to enter the trade. These types of indicators are essentially oscillating indicators and are most useful for determining overbought and oversold positions and can be very useful in signalling the start of a new trend.
As the name suggests, these types of indicators show the volume of trades behind a particualr price movement which can be extremely beneficial because a price movement backed up by high volume is a much stronger signal than a price movement based on low volume. Volatility indicators generally use ranges to show the behaviour of the price and the volume behind any movements.
This is useful because any dramatic change in behaviour can provide a good entry signal. So there you have the four different types of technical indicators available to you.
Which ones you use is entirely up to you, but it's generally advised that you have at least one type of each in order to provide additional confirmation for entering a trade.
Trading forex using technical analysis is all about probabilities in that when you enter a long position, for example, you want all of your chosen signals to be signalling an upwards movement, therefore indicating a high probability of an upwards movement taking place. If you use a strict stop loss policy and use these different types of indicators to confirm positions, then over time this high probability trading method should provide you with more winners than losers in the long run.
Basic Tips in Forex Trading. Tip 1 — When trading forex, always make sure to trade with a stop order, not because you expect to lose, but to prevent a large loss from an unexpected news event like a currency devaluation, government coup d'etat, terrorist attack, natural disasters, or whatever. Tip 2 - New traders to the forex can learn to trade with the less volatile pairs and then move to the more volatile pairs later. Tip 3 - Trade only with the trend and market momentum.
As they say, "the trend is your friend. Trending is a directional move up or down, oscillating is up and down movements going sideways within a range. We usually like to trade in trending movements only.More...