An Introduction To Forex Money Management

An Introduction To Forex Money Management


Forex trading money management is one of the most imperative things you must learn before you really start up with live trades. The Forex money management principles discussed here would further teach you how to keep yourself away from the expensive mistakes many fresh forex traders make, frequently to the degree that they lose their full investment on the first few trades. Psychology is actually the most key factor to money management when it comes to forex trading. You have to be clever to separate yourself from any touching affection you might have got to your money. This is not extremely simple to do, but it works and it could be really done.First and foremost, you have to mull over leverage and risk. It is sensible that you by no means risk more than two percent of your account stability on any forex trade. However, some go beyond and permit for as much as ten percent, but in no way more than that. This gives you the capability to endure market fluctuations in forex, and if the trade goes poor, you yet have money to try again. You must never function under the hypothesis, which you would profit from each trade. You must as well plan for losses. Therefore, most forex traders would tell you that the most excellent thing to do is to keep your gains big and your losses less. Develop your forex trading strategy around this idea. Keep a proper track of your gains and losses. Keeping correct and detailed records of your forex account commotion would permit you to see whether or not the forex trading strategy is working, or if it requires being rebuilt. Never go blindly into trading without a means to keep follow of results. You would surely lose all of your money and never know why it happened.
Finally, it is extremely advisable that you first carry out a strategy on a forex demo account. Nearly all forex brokers provide a virtual demo account upon which you make trades in real-time, but with fantasy money, so nothing is risked. This is the most excellent way to test a strategy before you put your real money on the line.
By: Rajamuma
Article Directory: http://www.articledashboard.com
Uma is a Copywriter of Forex Currency Trading . She written many articles in various topics such as forex day trading,forex trading system. For more information : contact her at 1worldforex1@gmail.com

Day Trading Signals

Day Trading Signals


With the help of day trading signals, day traders sell all long positions and cover all short positions at the end of a working, trading day. In day trading, you usually finish the day with cash in hand, to avoid holding any risks. One of the benefits of day trading is that since the positions are closed at the end of the trading day, any sudden news of events doesn't affect the opening prices of trading.
In day trading, different shares are bound to undergo different resistance and support levels. As the name indicates, resistance is basically a price level of a stock or perhaps an average that finds it difficult to break through. The support is a price level where the stock or average tends to hold above. The day trading signals are the signals obtained when stocks bounce off of support levels or sometimes even off resistance, if required.
These day trading signals are created watching the moving averages of shares. These moving averages, have trend lines similar to moving averages. A day trading signal depends on the number of times a stock tends to hit a particular trend line. The more faith there is in the trend line, the better it acts as a support for you. The longer the stock stays at a particular level; the better is the day trading signal of support.
The Internet boasts of many websites having bulletins where day trading signals are broadcast the whole day through. With these continuous day trading signals, it makes it rather easy for the day trader to predict how the share market will move. So day trading signals play an integral part in making profits in the share market and in having an interesting day of trading.

Martin's Review of Easy-Forex

Martin's Review of Easy-Forex

With the emerging of Internet-based currency trading, more and more people become appealed and interested in this area. They are looking to explore the benefits of investing in foreign currency. They want to receive up-to-the-minute information on foreign currency exchange rates and interact with their invested fund first hand everywhere, anywhere.
Easy Forex has made the process of investing in foreign currency as simple as possible so that practically anyone can try their hand at it. You can easily fund your trading account since Easy Forex allows and encourages small investors to try their service as low as $25.
There are also tutorials to help you understand the trading process for those new to this form of investment. Forex people new to foreign exchange trading find this will be a good way to start. That's one reason why Easy Forex has quickly become one of the biggest players in the Internet-based currency trading market.
What is Easy Forex?
Easy Forex offers a proprietary trading platform providing 24/7 access to the Forex markets. The idea that stands behind Easy Forex is using the internet in order to give common traders the most advanced and competitive the ability to trade likes the "big dogs". They claimed that their revolutionary online trading platform is the first online Forex trading system that allows clients to deal Forex as a consumer product.
Easy Forex was founded by a group of bankers and Forex experts and offers Forex traders direct access to the global currency markets. The company opened its door for business in 1998.
The principals of Easy Forex are Ofer Komem (CEO), Zelig Shalgi (Active Director), Miki Ishai (COO), Joab Kirsch (CFO), Thomas Keane (Legal Advisor), Gadi Hadar (managing director of Asia Pacific), and Polyvios Polyviou (Internal Advisor).
Easy Forex is regulated by the Australian Securities & Investments Commission (AFS 246566) to provide worldwide financial services under the supervision of the EU financial commission through Cyprus. Their headquarters are located in Limassol, Cyprus. They also have international branches in Warsaw, Tel-Aviv, Switzerland, Sydney, Manila and they say that more are on the way.
Trading Platform
Unlike other players in the Internet-based currency trading market, Easy Forex didn't require you to download any annoying software as their online trading platform is web based. No matter what kind of operating systems you use, it is definitely no problem at all.
There are also Java charts supplied, with all the usual indicators, timescales, and drawing tools. These can be detached from the browser, letting you keep an eye on them at the same time as the trading screen itself. You can have up to four charts open at the same time, watching different currency pairs, or the same pair in different timeframes.
They also offer charts (Netdania software that has been modified--can see up to twelve tiled screen shots at a time), a daily "Forex Outlook" which consists of a market summary, economic data releases, upcoming economic releases and technical analysis. In addition, they offer currency rates, interest rates, financial calendar, and a Forex glossary at no additional cost.
Features
Easy Forex has managed to maintain its impressive position in the currency trading market by offering its customers the best options available. Web-based trading, no commission costs, live-real-time quotes and a stop loss guarantee are only a few of the things that Easy Forex presents to individuals looking to speculate on foreign currency. Easy Forex also offers the opportunity to invest in gold and silver in addition to foreign currency, further broadening its appeal to both seasoned and budding investors.
Basically, Easy Forex offers three different account types: (1) Mini account: $25 margin, 10 pip spread, (2) Gold account: $500 margin, 7 pip spread, and (3) Platinum account: $2500 margin, 5 pip spread via Internet, 3 pip spread via Dealing Room.
Easy Forex's products are day-trading, limit orders, forward, and optional. The day-trading zone allows a client to perform daily currency rate deals. The deals renew automatically, every night at 22:00 (GMT time), until the deal ends, and are charged with a daily rolling fee.
A limit order deal allows a client to reserve a day-trading deal, which is executed when and if the client's desired exchange rate exists in the market.
Easy Forex watches for the appearance of the client's pre-defined rate, during the period the client defined. If and when such a rate does appear in the market--a day-trading deal is reached.
According to their website, you will get the following unique features:
Select the account type that suits your trading style or create your own custom account.
Start trading immediately with a deposit as little as $25. Lowest margin ever.
Freeze rate option. You can freeze the rate you wish to buy/ sell as the market is changing.
No commissions and no bank charges on trading, depositing or withdrawing funds.
Possibly the highest leverage in the industry.
No download required - Unique web based platform. Including live streaming quotes.
Guaranteed stop-loss rate.
Special terms for frequent traders.
Easy Forex Pros
Simplicity and ease of use is the biggest advantage of Easy Forex. The sign up process at Easy Forex is indeed very quick; you just create an account, deposit some funds and then start trading as well as send off copies of your ID card to verify your identity. No need even, to provide any bank details.
The minimum deposit is only $25 while the minimum transaction size is 2,500. Easy Forex accepts deposits by credit card as well as American Express, wire transfers, and even PayPal. Add your credit card details to your account, and hey presto, you can send margin whenever you need it.
By not relying on computer software installed on your own computer, you may also simply login to your account from anywhere the Internet is available. Anyone who's had their fair share of setup problems and program glitches can appreciate this aspect of the service.
As they claim, you do not need to pay commissions for the deals you make. By using a competitive spread, the company eliminates the need for commissions by making its money through the spreads already figured into the currency rates. In the "day-trading" zone you may roll over your positions and then you pay a renewal fee.
Easy Forex doesn't collect Tax for any authority in and form or manner. The obligation to calculate and to pay taxes is the client's responsibility. Phone dealing is also available. After hour trading is available but the spread could be higher. Unfortunately all of these offers are not available to US residents.
Easy Forex Cons
Although of this sounds so great, caution should be advised. Making it easy to open and fund an account is a nice idea, and a welcome one. But on the other side, it makes it a little too easy to start losing money. Low deposits come without its drawbacks, as their spreads are high however frequent traders get narrower spreads.
Easy Forex also do not offer a free demo account arguing that with such a low minimum deposit they don't need to as free demo account doesn't always allow you to really practice your trades as you are never risking real money.
Another disadvantage of Easy Forex is that I thought the spread is too wide. Short or long positions any cross, it's the same: you pay rollover. They seem too much after your money for my liking.
When there are not enough funds in your account to pay for the rolling fee, your card is also charged with the minimum possible amount from a credit card which is $3. This happens when all the money in your account is used by you as margin in open position.
Note also that if you deposit cash using a credit card they also require photocopies of the front and back of your credit card. At the present, the website's only method of withdrawal is the wire transfer form.
Concluding Remarks
Easy Forex is indeed for those starting out; it represents probably the quickest, simplest route to start trading. I have rated the very impressive Easy Forex platform as one of my best Forex broker. The platform is incredibly easy to use so you will not waste time or money trying to figure out how to make your trades.
Remember, Forex trading can be very profitable if you invest wisely, however, it can also be a risky and daunting prospect. Make sure you choose the right platform so that you can start enjoying the life of luxury as a professional currency trader.
I hope you enjoy trading with Easy Forex and will start making money with Easy Forex. If you decide to give it a try, please take a look at this link.
About the Author
Martin Chandra has over years experience in marketing. Hooked on potential of the Internet since '97. Good at seeing the big picture with an eye to detail.

Forex Charts Use This Combination And Watch Your Profits Soar

Forex Charts Use This Combination And Watch Your Profits Soar

If you are using technical analysis and forex Charts, then using the simple combination below, will help you catch the really big trends that yield the big profits and make your profits soar. Let s look at this combination on Forex charts and how to turn it into profit. We are going to look at a 3 step process that anyone can incorporate in their forex strategy that can make it more successful. 1. The weekly trend Very few forex traders look at the weekly charts, but the weekly chart shows you the longer term trends and effectively separates out the wood from the trees , so you can see the important trends. When looking at the weekly chart you simply need to look for valid support and resistance. By valid we mean areas of support that are considered important by the market and have been tested several times in different time frames.2. The daily chart Look for the points above, to be in synch with the daily chart, so the same important price levels are lining up on both charts.Note: If you have support and resistance that is valid then chances are there are stops behind these levels and trend following systems waiting to kick in if these levels are broken, so the break will continue and a new trend develop.When these breaks occur they tend to move quickly and they don t retrace much, so you need to be prepared to buy the break and miss the first part of the move. Don t try and anticipate and get in anyway this won t work!A breakout is only valid after it occurs and if a level has been tested then of course it can hold as well, so you need to trade on confirmation only.3. Getting confirmationThe way to see if a break is going to continue or reverse is to look at price momentum. There are lots of momentum indicators to look at but two that work well in combination are the Relative Strength Index RSI and the stochastic. Watch for a rising RSI and for the stochastic lines to pointing in the direction of the break if they have crossed with bullish or bearish divergence just before, all the better. If you don t know how to use these indicators they are an essential part of your forex education! There easy to learn and apply, so check our other articles. The biggest profits from the really big movesIf you follow the above tips you will tap into the really big profits from the big moves they don t occur often just a few times a year, but these are the trends that yield the biggest profits and the lowest risk. Most traders don t do this and most traders don t win!Most traders hate buying breakouts, as they think they have missed the first part of the move and want to wait for the pullback to get a better price but on valid breaks prices move quickly and you need to be inas prices wont come back quickly and you will never get a better price.If you can buy or sell breakouts, keep in mind they normally pile up bigprofits so the fact you have missed a little bit of the intial move is fine there is plenty more to come and of course it is missing this bit that gives you the odds in your favor. Watch your profits soarThe majority of currency traders can t psychologically buy or sell breakouts, but the majority don t win so dont let that worry you - join the winning elite who can and do make huge profits.
If you incorporate the above in your forex trading, it can lead you to currency trading success and really help your profits soar.
By: kelly Price
Article Directory: http://www.articledashboard.com
GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at www.net-planet.org/index.html

Forex Trading - 10 Essential Tips You Must Do And 10 Errors To Avoid

Forex Trading - 10 Essential Tips You Must Do And 10 Errors To Avoid

Here are ten things you must do and 10 things to avoid when formulating and executing your forex trading strategy. If you want to be successful at forex trading then read and understand the points below there essential to achieve currency trading success1. Don t day trade It doesn t work! All short term volatility is random so you have no chance of winning longer term. 2. Don t buy a Currency trading system with..A hypothetical track record. These are done in hindsight knowing the closing prices so avoid them. In forex trading its more difficult, you have to make money going forward! 3. Don t trade off news stories News is discounted by the markets instantly and is impossible to trade so don t try. 4. Don t mix fundamentals and technical There separate, you are either a technical or fundamental trader - you can t combine both. 5. Don t use scientific theories The king of these is Elliot wave and it doesn t work. It s supposed to be objective but everything about it requires subjective judgement. If markets moved to a scientific theory we would all know the prices in advance and there would be no market! 6. Be Objective Use objective criteria to execute trading signals. Avoid subjective theories (like Elliot wave mentioned above) or cycles, these are subjective and mean your emotions can get involved7. Don t chase your tail Gets a currency trading system you are confident in and stick with it. Don t chop and change it!8. Don t forget to place stops immediately Always place it as soon as you have entered a trade. Never use a mental stop or you will be tempted to run losses. 9. Don t have an ego Many traders like to see that market as they want to and not as they really are. Leave you ego behind and accept the market price is the RIGHT price.10. Don t work to hard Many forex traders think the more they put in the more they will get out. While this is true in many professions, it is not true in the forex markets you only get rewarded for being right.Successful forex trading is all about working smart not hard. Now ten things you must do: 1. Get a simple system you understand Simple systems work best and you only need a few rules or indicators in it. Don t complicate it, the more rules and the more parameters, the more likely it is to break or lose in trading.2. Make sure you have confidence & discipline Develop it yourself and you will get confidence that leads to discipline. If you try and follow someone else s system you will lack both and fail. 3. Use a technical approach Takes less time and also takes into account human psychology which moves all forex prices. 4. Be patient Only execute your trading system in line with your trading signals and don t be tempted to chase profits. 5. Always look for confirmation Never hope a support or resistance level will hold, get the odds on your side by using momentum indicators to confirm first, this will dramatically increase the odds of success. 6. Ignore others Trade in isolation and ignore others. Don t discuss what you are doing, this will keep your emotions out of your trading. 7. Have goals & a plan Have a realistic plan and profit goals. Sure people get rich overnight but their a minority! If you can make 50 100% per annum your up there with the best traders. 8. Take risks Forget restricting risk to much, when you see an opportunity go for it and take calculated risks this is not being rash, it s the reality of trading FX. 9. Know your edge If you don t know your edge i.e. why you should win at forex trading while 95% lose you don t have one so you will be joining them! Get the right forex education and know your edge before you begin. 10. Enjoy what you doIf you sweat about positions, feel edgy, or worry about trading it s not for you. You should view trading as enjoyable and a challenge, if you don t forget it and do something else. We have expanded on all the points in our other articles so check them out.
Keep in mind forex trading is not easy very few win and most lose. The good news is, if you understand and apply the above, you could soon be making big forex profits.
By: Monica Hendrix
Article Directory: http://www.articledashboard.com
GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at www.net-planet.org/index.html

An Introduction To Forex Money Management

An Introduction To Forex Money Management


Forex trading money management is one of the most imperative things you must learn before you really start up with live trades. The Forex money management principles discussed here would further teach you how to keep yourself away from the expensive mistakes many fresh forex traders make, frequently to the degree that they lose their full investment on the first few trades. Psychology is actually the most key factor to money management when it comes to forex trading. You have to be clever to separate yourself from any touching affection you might have got to your money. This is not extremely simple to do, but it works and it could be really done.First and foremost, you have to mull over leverage and risk. It is sensible that you by no means risk more than two percent of your account stability on any forex trade. However, some go beyond and permit for as much as ten percent, but in no way more than that. This gives you the capability to endure market fluctuations in forex, and if the trade goes poor, you yet have money to try again. You must never function under the hypothesis, which you would profit from each trade. You must as well plan for losses. Therefore, most forex traders would tell you that the most excellent thing to do is to keep your gains big and your losses less. Develop your forex trading strategy around this idea.
Keep a proper track of your gains and losses. Keeping correct and detailed records of your forex account commotion would permit you to see whether or not the forex trading strategy is working, or if it requires being rebuilt. Never go blindly into trading without a means to keep follow of results. You would surely lose all of your money and never know why it happened.
Finally, it is extremely advisable that you first carry out a strategy on a forex demo account. Nearly all forex brokers provide a virtual demo account upon which you make trades in real-time, but with fantasy money, so nothing is risked. This is the most excellent way to test a strategy before you put your real money on the line.
By: Rajamuma
Article Directory: http://www.articledashboard.com
Uma is a Copywriter of Forex Currency Trading . She written many articles in various topics such as forex day trading,forex trading system. For more information : contact her at 1worldforex1@gmail.com

Currency ETFs Simplify Forex Trades

Investing in any market can be volatile. Minimizing risk while retaining upside potential is paramount for most investors - that's why an increasing number of traders and investors are diversifying and hedging with currencies. Different currencies benefit from some of the same things that may hurt stock indexes, bonds or commodities and can be a great way to diversify a portfolio. However, digging into currencies as a trader or investor can be daunting.


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New currency exchange-traded funds (ETFs) make it simpler to understand the forex market (the largest, most liquid market on the planet), and use it to diversify risk. Now, you can have General Electric (NYSE:GE) and the British pound in your portfolio by holding the CurrencyShares British Pound ETF (PSE:FXB) in the same account. Have an IRA? Sprinkle some euros in there by holding the CurrencyShares Euro ETF (PSE:FXE), and offset some downside risk of your S&P 500 holdings. Read on to learn more about this unique way of using currencies to diversify your holdings. (For more on ETFs, see Introduction To Exchange-Traded Funds and Advantages Of Exchange-Traded Funds.)Hedging Against RiskEvery investor is exposed to two types of risk: idiosyncratic risk and systemic risk. Idiosyncratic risk is the risk that an individual stock's price will fall, causing you to accumulate massive losses on that stock. Rooting this kind of risk out of your portfolio is quite simple. All you have to do is diversify your account across a broad range of stocks or stock-based ETFs, thus reducing your exposure to a particular stock. (To learn more, read The Importance Of Diversification and Do You Understand Investment Risk?)However, diversifying across a broad range of stocks only addresses idiosyncratic risk. You still have to face your account's systemic risk. Systemic risk is the exposure you have to the entire stock market falling, causing you to accumulate losses across your entire diversified portfolio. Minimizing the exposure of your portfolio to a bear market used to be difficult. You had to open a futures account or a forex account and try to manage both it and your stock accounts at the same time. While opening a forex account and trading it can be extremely profitable if you apply yourself, many investors aren't ready to take that step. Instead, they decide to leave all of their eggs in their stock market basket and hope the bulls win. Don't let that be you. (Want to give currencies a shot? Read Wading Into The Currency Market.)Currency ETFs are opening doors for investors to diversify. You can now easily mitigate systematic risk in your account and take advantage of large macroeconomic trends around the world by putting your money not only into the stock market but also in the forex market through these funds. (For more see, A Beginner's Guide To Hedging.)How Currency ETFs WorkETF management firms buy and hold currencies in a fund. They then sell shares of that fund to the public. You can buy and sell ETF shares just like you buy and sell stock shares. Investors value the shares of the ETF at 100 times the current exchange rate for the currency being held. For example, let's assume that the CurrencyShares Euro Trust (PSE:FXE) is currently priced at $136.80 per share because the underlying exchange rate for the euro versus the U.S. dollar (EUR/USD) is 1.3680 (1.3680 × 100 = $136.80).You can use ETFs to profit from the exchange rate of the dollar versus the euro, the British pound, the Canadian dollar, the Japanese yen, the Swiss franc, the Australian dollar and a few other major currencies. (For more on this market, see Common Questions About Currency Trading.)What makes currencies move?Unlike the stock market, which has a long-term propensity to rise in value, currencies will often channel in the very long term. Stocks are driven by economic and business growth and tend to trend. Conversely, inflation and issues around monetary policy may prevent a currency from growing in value indefinitely. Currency pairs may trend as well, and there are simple factors that influence their value and movement. These factors include interest rates, stock market yields, economic growth and government policy. Most of these can be forecasted and used to guide traders as they hedge risk in the rest of the market and make profits in the forex. Economic Factors and Currency TrendsHere are two examples of economic factors and the currency trends they inspire.Oil and the Canadian DollarEach currency represents an individual economy. If an economy is a commodity producer and exporter, commodity prices will drive currency values. There are three major currencies that are known as "commodity" currencies that exhibit very strong correlations with oil, gold and other raw materials. The Canadian dollar (CAD) is one of these. (For more on how this works, read Commodity Prices And Currency Movements.)One ETF that can be traded to profit from the moves in the CAD/USD pair is CurrencyShares Canadian (PSE:FXC). Because the Canadian dollar is on the base side of this currency pair, it will pull the ETF up when oil prices are rising and it will fall when oil prices are declining. Of course, there are other factors at play in that currency's value but energy prices are a major influence, and can be surprisingly predictive of the trend.This is especially useful for stock traders because of the effect that higher energy prices can have on stock values. Additionally, it provides another way for stock traders to speculate on rising commodity prices without having to venture into the futures market. (For on this topic, check out Currency Moves Highlight Equity Opportunities.) In Figures 1 and 2, you can see 18 months of prices for the Canadian dollar compared to oil prices over the same period.
Figure 1: Crude oil (continuous)
Source: MetaStock Pro FX
Figure 2: Canadian dollar
Source: MetaStock Pro FXAs you can see, there is a strong positive correlation between these two markets. This is helpful as a hedge against stock volatility as well as the real day-to-day costs of higher energy prices. Short-term traders may look for a breakout in oil prices that is not reflected in the value of the Canadian dollar immediately. When these imbalances occur, there is opportunity to take advantage of the move the market will make as it "catches up" with oil. Long-term traders can use this as a way to diversify their holdings and speculate on rising energy prices. It is also possible to short the ETF to take advantage of falling oil prices.Interest Rates and the Swiss FrancThere are several forex relationships that are impacted by interest rates, but a dramatic correlation exists between bond yields and the Swiss franc. One ETF that can be used to profit from the Swiss franc, or "Swissie", is the CurrencyShares Swiss Franc Trust (PSE:FXF). The currency pair is notated as CHF/USD. When the Swissie is rising in value, the ETF rises as well, as it costs more U.S. dollars to buy a Swiss franc.
FREE REPORT: The Five Things That Move the Currency Market
Year after year, key players in the Forex market make a killing by picking the right currencies – now it’s your turn. Access industry gurus Boris and Kathy’s exclusive FREE report, The Five Things That Move the Currency Market – And How to Profit From Them, right now! The correlation described here involves the 10-year bond yield. You will notice in Figures 3 and 4 that when bond yields are rising, the Swissie falls, and vice versa. Depending on interest rates, the value of the Swissie will frequently rise and fall with bond yields.
Figure 3: 10-Year Bond Yields (TNX)
Source: MetaStock Pro FX
Figure 4: Swiss franc
Source: MetaStock Pro FXThis relationship is useful not only as a way to find new trading opportunities but as a hedge against falling stock prices. The stock market has a positive correlation with bond yields; therefore, if yields are falling, the stock market should be falling as well. A savvy investor who is long the Swissie ETF can offset some of those losses. ConclusionCurrency ETFs have opened the forex market to investors focused on stocks. They adds an additional layer of diversification and can also be used effectively by shorter term traders for quick profits. There are even options available for most of these ETFs.
by John Jagerson (Email Biography)John Jagerson has worked in the capital markets and private equity for most of his career, including investing, writing and money-management. He currently manages a registered CTA and contributes to www.pfxglobal.com, the companion site to the book Profiting With Forex by John Jagerson and S. Wade Hansen.