learn forex first

It is so easy to become completely bogged down trying to keep up with the company news updates, you know, the feeds you get on the financial news channels. This causes you to get frustrated and often confused. There’s a lot of very interesting information, but does it serve to help our trading decisions? Remember, no two people have the same perspective on anything, and that includes the stock market. The analysts you watch and listen might well have very good and valid reasons for talking a stock up or down, depending upon their own investment criteria.

Here are 3 reasons to help you see why technical analysis works:

1. Every day trading decision, and I mean every one of them, without exception, ends up in one and only one result; price. The price of the stock at close of trading is where the whole picture finishes. You can do anything you like with company data; analyse it, pull it apart, listen to speculators, traders, journalists, but the result a closing is always the same.

2. It is correct that history does not necessarily reflect the future, and that’s quite right, no one would argue the case. But, and it’s a big but, it has been proven time over, that human psyche does repeat itself, the brain functions the in the same manner all the time. What you see on technical day trading charts is the result of past thinking, of past psyche. It will be argued until the end of time that you cannot trade for the future, based on historical data. But the technical data that is delivered and shown by these charts does lend itself to narrowing the odds enormously in our favour, IF used correctly. There are too many successful technical traders to suggest otherwise.

3. To see an excellent example, watch the price of a stock that’s moving in a trend, or range, and you can see that same patterns, by and large being repeated, day in, day out. All of a sudden, the price pushes beyond the upper and lower price boundaries that it’s held for the past few days or weeks, and you have a potential buy or sell trading opportunity.

There are traders who use only fundamentals, and still argue against technical trading, but if you have the time, a blend of both is best. The advantage of using chart set ups is that you can better gauge, and fine tune, where you are going to place you entry and exit positions.

How would you like to discover more about the techniques successful traders use to make profitable trades?

Download them free here: Day Trading Course

Ian Jackson is an authority on Day Trading information, learning the hard way - and now he reveals how you can learn the business too, without all the growing pains.

The Foreign Exchange, also referred to as Currency, Forex, FX or 4X Trading, is the giant of the financial markets. Historically the Forex was only accessible to the banks, large institutions and governments, however over the past 10 years, (with the help of technology making its way into almost every home worldwide), every day mum and dad investors can also compete with a little help of the Forex brokers enabling them access to high leverage, and become part of the 95% of speculators worldwide who trade this $3 trillion dollar a day, 24 hours, 5 days per week market.

There are many benefits for traders to chose the Forex as their main preferred trading instrument:

• First of all the leverage potential is a massive, there are many amounts available even as much as 400:1. This means a trader with a $50,000 trading account could achieve the maximum of exposure of $20 million.
• No commissions or brokerage (brokers make their money by the spread only).
• Limited Risk. Traders can only ever lose what is in their trading account as the Forex brokers will instantly close out the losing position or all their positions should the traders account fall below the brokers margin policy. Unlike other trading instruments where the account can go into negative figures where the account holder will need to immediately repay within a number of days.
• Accessible - If you work part-time or full time, or have other things on in your life, trading the Forex can fit in to your lifestyle as it is open 24 hours.

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Whether you call it Forex or Fx, you are talking about the Foreign Exchange market. This is where the trading of currencies, one against the other, is done. To have an idea just how big the action is, add all the stock exchanges in the world together and the Foreign Exchange will still be bigger!

When you consider that various speculators, hedge funds, governments as well as companies, plus countless private investors who take part, it is hardly surprising that this market is so strong and that the estimated daily average turnover of the foreign exchange market is over 3 trillion US Dollars.

By far the most asked for rate is the SPOT RATE. This transaction has to be settled within two business days.

With London, New York, Tokyo, Frankfurt and Sydney as the chief trading centres, the action hardly ever closes.

When you are at an auction and you put your hand up, it means you are bidding for something at a certain price. In a similar way, the word BID refers to the price at which the buyer is prepared to buy the currency.

The OFFER means the price at which an amount of currency the seller is ready to sell.

A LIMIT ORDER is when you give instructions the buy or sell a currency at a predetermined exchange rate.

When international banks buy and sell between themselves, the bid and exchange rates are called INTER- BANK RATES.

The difference between the bid and ask price of a currency is the SPREAD.

STOP LOSS is when an order is given to purchase or sell a currency at a price level set by the client on a particular trade which if reached, will close out the particular position at the stated price.

TRANSACTION DATE is the date on which a foreign exchange trade is being done.

The date which foreign exchange contracts settle is called the SETTLEMENT DATE.

Every currency has a three letter code such as for the Euro (EUR), for the British Pound (GBP), for the US Dollar (USD), for the Japanese Yen (JPY), for the Australian Dollar (AUD), for the Swiss Franc (CHF), for the Canadian Dollar (CAD). Actually, these are the major trading currencies and all commonly traded currencies are called the MAJORS.

CABLE is a name given to the US Dollar/British Pound rate in the foreign exchange market.

EFT is the Electronic Fund Transfer which is the transfer of money between banks.

When there is a quote in currency pairs, remember that the first currency is called the BASE currency. The second currency is called the COUNTER currency. As an example when you get a quote GBP/USD at 1.96 it means that for one GBP you will get 1.96 USD. So for ten thousand pounds you will get nineteen thousand six hundred US Dollars.

The many foreign currency exchange companies which you can find on the internet will gladly give you a quote, and by phoning around you can find the best currency rates. They will be better than a high street bank is likely to offer and they will give you a very fast service. Furthermore, most of them will not charge you any commission or the cost of the electronic bank transfer.

Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.

Foreign exchange market, or better known as FOREX, is the world’s largest and most prolific financial exchange market originated on 1973. Bearing the status of largest and most prolific currency exchange market, FOREX is the center stage where a vast majority of the currency trading or FOREX trading takes place, with a total daily turnover of currency worth more than $1.2 trillion.

For having such an enormous sum of total turnover everyday, FOREX can be considered as a liquid market ideal for Forex trading. Unlike many other securities, FOREX does not trade on a fix exchange rate, instead, currencies are traded primarily between central banks, commercial banks, non-banking international corporation, hedge funds, private investors and not to forget, speculators. Previously, smaller investors are precluded from trading in FOREX due to the large amount of deposit required. However, until the recent years, with the continuous growing of Internet and the rise of competitions, smaller investors can now trade in FOREX as the requirement to trade in FOREX has been amended.

Truthfully, there are a few factors why FOREX trading is starting to attract more and more medium and smaller sized investors. One of the main reasons is due to the fact that FOREX trading operates at 24 hours per day, 5 days per week. In addition to that, unlike the old days where trading is done only through telephone, it can now be done…

The full article available at http://www.forex.labuan.net/Forex-trading.html

Alvin Han is the editor of http://www.forex.labuan.net

Back in 1997 major financial slump rocked number of countries in Asia, an event that became known as “Asian currency crisis”. Effected countries included Taiwan, Thailand South Korea and others. One of the memorable comments of the time came from one of leading Thai politicians. He blamed this whole mess on speculators, with George Soros being the main culprit. The remarks went so far as to public statement of “not being able to guarantee his safety if he visited Thailand”. Quite ominous.

The fallout in South Korea was brutal. The US Dollar has about doubled in value against the Won, with USD-KRW moving from just above 800 in early 1997, to 1600 by the year’s end. Local stock market suffered similar fate, as did all areas of economy. Perhaps most telling was an enormous spike in unemployment, as the jobless rate soared to almost double digits, with about 9 million people out of work.

This author observed the aftermath first hand, during one of his business trips to South Korea at that time. Collapse of once high flying conglomerate Daewoo under burden of debt. The sight of many construction projects suspended or stopped all over Seoul and Pusan. Daily failure of scores of small business. It was good time to visit South Korea, due to low prices, but very difficult period for residents.

The country has rebounded nicely since then and became one of Asia’s most dynamic economies. KRW strengthen considerably reaching level 900 against USD in 2007. The stock market has recorded double digit gains in four of the last five years, gaining 32% in last year alone. Korean companies like Samsung Electronics Co, and Hyundai Motors Co, have established themselves as some of the world’s leading corporations.

Things have changed in 2008. Challenges like high oil prices, inflation, external debt and account deficit have shaken investors confidence. While many countries have seen outflow of funds into the dollar, this process became especially painful in South Korea. The Won has become the Asia’s worst performing currency, loosing 20% to date. Stock market was no better, falling 25%, with farther sell off of equities expected.

These developments created widely spread comparisons to situation from 1997 and were quick to be picked by the press. International Monetary Fund disagrees with this assessment and expressed confidence by saying that South Korea is a mature and resilient economy with country’s fundamentals much stronger than a decade ago. Korean financial authorities, however, felt obligated to act by intervention on Wons behalf in the open market. This seemed to stop the bleeding for now.

What can be expected next? In all reality, 1997 type sell off is extremely unlikely. As South Korean economy is cooling down together with the rest of the world, Seoul might not be able to stop bleeding of the stock market but there is one thing they can do- keep intervening on behalf of its currency. Unlike before, there are huge foreign reserves, about 250 billion dollars worth of, and they can be used to support Won.

Very likely scenario, as of this writing, is continued fall of Korean equities, in tune with broader stock declines. The Won should also keep dropping, but in much more measured and steady pace. Central Bank has not mentioned what the comfortable level for USD-KRW is, but as we noticed over last few years, major trends are very powerful and can go through any “line in the sand’ drawn by anybody.

Current rate is around 1150. Even with expected interventions, Won can easily weaken to 1300 and maybe 1400, but far short of the previous low of 1600. Also, one shouldn’t look for a fast move, but rather steady depreciation, lasting a year or two. This is not a situation for active traders, but for those who prefer longer term positions current development might present good opportunity for farther selling of KRW.

Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex LLC. He specializes in mechanical trading systems as explained on http://www.spectrumforex.com . Spectrum Forex LLC offers numerous services to individual traders. He also publishes trading blog http://www.fxmadness.com. With questions and comments e-mail him at kulej@spectrumforex.com

When a currency is being traded for another currency, a foreign exchange trading is taking place. It is commonly known as forex trading or simply FX. Forex trading is by far the largest financial market in the world with an average daily trading of a whooping $4 trillion. Banks, multinational companies, governments, financial institutions, and currency speculators trade 24 hours a day, 5 days a week. With all the currencies in the world being traded, you can see the extreme liquidity of the market. So, it really is not surprising that people are attracted to forex trading like a moth to a flame. The problem is that not everyone has the patience to learn how the market works. Before delving into the rough waters of forex trading, it is important to at least have a working knowledge on how the market works and how transactions take place.

In a typical forex trading scenario, you buy a currency that you think will either weaken or strengthen against another currency. Say, you want to sell your Euro at a specific bid price because you speculate that it will weaken against the US dollar. When the market moves in your favor, you can then buy back your Euro at a lower price. The difference in your Bid and Ask price will be your profit. It does look pretty easy and you can actually get the hang of it in just a few transactions.

Forex trading can be an attractive investment opportunity if you know how to play the game. The downside is that you need to monitor the movements of several currencies that you want to trade. Since the trading is active 24 hours a day, certain factors can easily affect the rise and fall of certain currencies. If you are not quick enough to catch these developments, you will not be able to cash in on forex trading. The best solution will have to be a Forex autotrader.

A Forex autotrader is a forex trading software that will help you handle all your online trading. It’s just not possible to monitor the market every waking hour, so the software can do all your forex trading work for you, even when you are snoozing or relaxing. Of course, you have to check once in a while how your trading is coming along. The great thing about this software is that it is easy to use. You just need to install it in your computer and you can instantly get started. If you are not too comfortable with setting up the system, there are ways to get it done with technical support. The graphs and the numbers you see on your screen are various monitoring system that will allow you to see the performance of currencies against each other. You can also see how much money you are earning and if you decide you want to invest more, you can let the Forex autotrader do its job. It’s great when someone does something for you, but it’s even better when you earn something in the process.

Steve Comet, a pseudonym, is a group of experienced forex traders. Our team has reviewed all the different forex autotraders that exist, and found out the ones with make money. Check out our forex autotrader reviews

Before I get into a review of this new system, a brief explanation of what the Forex is. Forex stands for Foreign Exchange, and it is where currency is traded. Speculators trade in the differing value of currency pairs throughout the world, trying to cash in on minute differences in prices.

Over the past few years, there have been a number of software releases, all hoping to cash in on the seemingly unquenchable appetite for home traders to try their luck in this market. These are automated systems that analyze all of the data from the exchange markets around the world, then suggest options for you to trade in. Often needing your computer to be on for 24 hours a day (because, unlike other markets, the Forex never closes - it trades 24 hours a day, seven days a week), these packages brought the thrill of the trade and the expected high returns, usually reserved froth skilled exchange market trader, into the homes of the man on the street.

The software available varies in quality - some are good, some bad. Additionally, they tend not to explain the mechanisms of Forex trading too much, relying on the software to pick the best trades. This makes everything very precarious for the newcomer, making it very difficult to pick the best package.

Finally, someone is about to release a product that teaches you, not only how to successfully trade, but also what is happening behind the scenes, giving a thorough understanding of the system. That product is the Forex Success Formula.

Aimed at both the experienced trader and the newcomer, this is broken down into 5 easy to understand training modules, each explaining more advanced techniques as you progress. All of this is complimented, as is usual these days, with video tutorials. Perhaps much more relevant in this instance than others, these video tutorials really help you to understand the processes, and how you too can make money in this marketplace.

It is important to understand this is a total trading strategy, concentrating as much on when to buy as to when to sell. One of the most refreshing aspects of this system is the fact that, not only does it show how you can make money, but also how you could lose it too, and what to do to try to avoid this and minimize your loss. It approaches the whole exercise very much as a business, and encourages you to do the same, laying down procedures and techniques to help you

Will you get rich from this? That is going to be down to your application and understanding of the principles involved. As with any system claiming to make you money, it can work. But if you expect to press a button and watch the cash flow into your bank account, I’d advise you to keep looking (and if you find it, please let me know what it is!)

The Forex Success Formula is a very comprehensive product, covering many aspects of trading, and introducing some new concepts, making it useful for beginners and experienced traders alike. If you are thinking of entering this market, then I would advise you to consider it before any automated system, as it gives you a thorough understanding of the Forex market, and you can always invest in one of those software packages later. At the time of writing, It also comes with a 60 day money back guarantee, making it very attractive, and offering enough time to evaluate the system without worrying about wasting your money.

If you are new to this, another word of advice - whatever process you choose, set up a ‘demo’ trading account first. This will allow you to apply the strategies you’ve learned without risk to any ‘real’ money. If you can’t get access to one of those for any reason, ‘paper trade’ - i.e. write down what you would have done and make a note of your profits / losses before entering into any real transactions. This will help you avoid any major mistakes, and provide you with invaluable experience when you enter the market for real.

Alan runs a successful internet marketing business. For some secret insider information about the Forex Success Formula, visit his website to find out all you need to succeed.

The reason behind the increase of interest and popularity of forex trading is the advent of automated systems. This is no longer the domain of financial institutions; it is now of interest to small and medium speculators as well. This market deals with trading the currency of one country for that of another country. This market works round the clock handling transactions worth trillions of dollars. This makes it one of the most dynamic financial markets of the world.

Anyone with a forex brokerage account and some experience in trading can now operate forex trading thanks to the internet, advanced networking and communication technologies. However to remain on top, it requires constant monitoring as global markets are open round the clock. What do these automated systems help you to do? Well with these systems you can choose a currency, its asking and selling price in advance. Your buy and sell orders can get instantly executed so all you need is your seed money and a broker to help you.

The automatic forex trading systems can help you reap the profits of the market despite the fact that you are not a professional trader. Automated trading through managed accounts, the program itself takes the responsibility of trading for you. Therefore automated systems help you save time as you do not handle the trading yourself. A reliable trading platform would let you manage a number of accounts at the same time which is impossible in manual trading. When you want to trade in multiple markets with multiple systems, these programs allow you to do this.

You can use automatic forex trading systems any time you like and it does not require your presence. It is impossible to miss any profitable trade, even when you are nowhere close to your computer. Taking advantage of multi-prong forex strategies and various systems therefore becomes easy. Since every system is activated according to specific trade movements, you can plan your investments and direct your risk accordingly.

There is no place for human emotions which adversely affect decisions; something that is not possible with these automatic forex trading systems. It enables you to manage and monitor many currency pairs and trade them as you deem fit.

Even when you start using an automated forex trading system, you have to allow time to learn about trading of technical analysis and market indicators, otherwise, you can not make consistent profits. No automated system can guarantee you regular profit because the market is controlled by many variables. The automated forex trading system allows you the flexibility of customizing it to suit you.

Brandon has been trading in the Forex markets for over 4 years now and currently uses forex trading software with little human intervention. If you would like to see how to properly set up a system to put your income on autopilot, click here

The reason behind the increase of interest and popularity of forex trading is the advent of automated systems. This is no longer the domain of financial institutions; it is now of interest to small and medium speculators as well. This market deals with trading the currency of one country for that of another country. This market works round the clock handling transactions worth trillions of dollars. This makes it one of the most dynamic financial markets of the world.

Anyone with a forex brokerage account and some experience in trading can now operate forex trading thanks to the internet, advanced networking and communication technologies. However to remain on top, it requires constant monitoring as global markets are open round the clock. What do these automated systems help you to do? Well with these systems you can choose a currency, its asking and selling price in advance. Your buy and sell orders can get instantly executed so all you need is your seed money and a broker to help you.

The automatic forex trading systems can help you reap the profits of the market despite the fact that you are not a professional trader. Automated trading through managed accounts, the program itself takes the responsibility of trading for you. Therefore automated systems help you save time as you do not handle the trading yourself. A reliable trading platform would let you manage a number of accounts at the same time which is impossible in manual trading. When you want to trade in multiple markets with multiple systems, these programs allow you to do this.

You can use automatic forex trading systems any time you like and it does not require your presence. It is impossible to miss any profitable trade, even when you are nowhere close to your computer. Taking advantage of multi-prong forex strategies and various systems therefore becomes easy. Since every system is activated according to specific trade movements, you can plan your investments and direct your risk accordingly.

There is no place for human emotions which adversely affect decisions; something that is not possible with these automatic forex trading systems. It enables you to manage and monitor many currency pairs and trade them as you deem fit.

Even when you start using an automated forex trading system, you have to allow time to learn about trading of technical analysis and market indicators, otherwise, you can not make consistent profits. No automated system can guarantee you regular profit because the market is controlled by many variables. The automated forex trading system allows you the flexibility of customizing it to suit you.

Brandon has been trading in the Forex markets for over 4 years now and currently uses forex trading software with little human intervention. If you would like to see how to properly set up a system to put your income on autopilot, click here

Breaking A 24-Hour Market Into Manageable Trading Sessions
While a 24-hour market offers a considerable advantage for many institutional and individual traders because it guarantees liquidity and the opportunity to trade at any conceivable time, it also has its drawbacks.Although currencies can be traded any time, a trader can only monitor a position for so long. This means that there will be times of missed opportunities, or worse, when a jump in volatility will lead the spot to move against an established position when the trader isn’t around. To minimize this risk, a trader needs to be aware of when the market is typically volatile and decide what times are best for his or her strategy and trading style. (For more, see Trade To Your Taste.)

Traditionally, the market is separated into three sessions during which activity peaks: the Asian; European; and North American sessions. More casually, these three periods are also referred to as the Tokyo, London and New York sessions. These names are used interchangeably as the three cities represent the major financial centers for each of the regions. The markets are most active when these three powerhouses are conducting business as most banks and corporations make their day-to-day transactions and there is a greater concentration of speculators online. Now let’s take a closer look at each of these sessions. (For more, see how does the foreign-exchange market trade 24 hours a day?)

Asian Session (Tokyo)
When liquidity is restored to the forex (or, FX) market after the weekend passes, the Asian markets are naturally the first to see action. Unofficially, activity from this part of the world is represented by the Tokyo capital markets, which are live from midnight to 6am Greenwich Mean Time. However, there are many other countries with considerable pull that are present during this period including China, Australia, New Zealand and Russia, among others. Considering how scattered these markets are, it stands to reason that the beginning and end of the Asian session are stretched beyond the standard Tokyo hours. Allowing for these different markets’ activity, Asian hours are often considered to run between 11pm and 8am GMT.

European Session (London)
Later in the trading day, just before the Asian trading hours come to a close, the European session takes over in keeping the currency market active. This FX time zone is very dense and includes a number of major financial markets that could stand in as the symbolic capital. However, London ultimately takes the honors in defining the parameters for the European session. Official business hours in London run between 7:30am and 3:30pm GMT. Once again though, this trading period is expanded due to other capital markets’ presence (including Germany and France) before the official open in the U.K.; while the end of the session is pushed back as volatility holds until the London fix after the close. Therefore, European hours are typically seen as running from 7am to 4pm GMT.

North American Session (New York)
By the time the North American session comes on line, the Asian markets have already been closed for a number of hours, but the day is only half through for European traders. The Western session is dominated by activity in the U.S. with few contributions from Canada, Mexico and a number of countries in South America. As such, it comes as little surprise that activity in New York City marks the high in volatility and participation for the session. Taking into account the early activity in financial futures, commodity trading and the concentration of economic releases the North American hours unofficially begin at noon GMT. With a considerable gap between the close of the U.S. markets and open of the Asian trading, a lull in liquidity sets the close of New York exchange trading at 8pm GMT as the North American session close.

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