What All Forex Failure Have In Common

What All Forex Failure Have In Common
This article is about what all Forex failure have in common. What makes me the right person to write this article? I am the perfect person to right this article because I have been a Forex failure. I have wasted my time trading Forex in unprofitable ways, I have lost my entire account before, and I've used to much leverage and zero money management. I am the perfect person to write this article because I've experience all the downs of Forex marketing and few of the ups. I am like a better version of most people who try Forex.
What separated the winning retail Forex traders from the losers. First, we must establish that very few people make money trading Forex. I can tell you with a straight face that 90% of the retail traders lose money or barely break even. You will not get rich over night trading Forex. By the way, retail trader is someone one who doesn't trade for a bank and someone who has basic access to the Forex market.
Winning retail Forex traders us money management. Money management is the precise allocation of trading funds. A money management system might only allow a trader to trade 3% of his account in any one trade. Money management is how you don't broke at the speed of light. A money management system will also have limits on the amount of leverage you can use on a given day. It will also account for volatility in the market.
Winning retail Forex traders try to remove as many discretionary decisions from their trading as possible. It is said that the top two things that bad traders and humans in general have a hard time managing is greed and fear. The discretionary trader will change his trading plan based on those two elements. The big banks use computers to remove these two elements from their trades.
Winning retail traders do not scalp and they do not day trade. Short-term trading only works for the big banks with million dollar computers operated my Ivy league mathematicians. I doubt you are an Ivy league mathematician and you probably don't have a super computer in your basement. Leave short-term trading to the professionals and to the global banks. You are just a guppy swimming in shark infested water. Guess who's for dinner?
Winning Forex traders spend most of their time trading higher time frames such as, the daily and monthly chart. They now that it is easier to spot trends on these higher time frames and it is easier for them to earn money trading this way.
In closing, Forex is not easy. It is a market dominated by huge global banks using super computers to trade. Successful retail traders do not go to war with the banks, they just follow their lead by trading trends on a larger time frame. Using money management and an easy to follow system, successful retail traders carve out their own niche.
What All Forex Failure Have In Common What All Forex Failure Have In Common Reviewed by هيما فؤاد on 01:14 Rating: 5

What Do Forex Brokers Get From Your Account?

When you engage a Forex broker you will find they do not charge a commission; this is because they derive their revenue by other means. Forex brokers make an income from converting and holding currencies, from buying and selling, from interest on funds that have been deposited with them and also on rollover fees. But it is important to understand where they benefit from your account.
Whilst you may not be paying an upfront commission, don’t be fooled into thinking that brokers are not making a profit from your account. Obviously there has to be a benefit to them so they make their money from selling a currency to you at a particular price and then buy it back at a lower one. The difference between the two prices is known as the “spread” and this can increase substantially in a very short period.
When a Pip isn’t a Fruit Seed
In Forex terms a “pip” is better known as the smallest possible monetary increment, approximately one hundredth of a percent. Currencies are priced to the fourth decimal place in Forex markets and that fourth place is what is more commonly known as the “pip” or the “basis” point.
It is through these pips that Forex brokers earn their income. Forex brokers charge a number of pips per trade and this is known as the spread. When you have been trading for a while you will notice some Forex brokers charge a consistent spread immaterial of what the trade is, but others can charge a variable spread. In a slow market a variable spread might look appealingly small, but if the Forex trading starts to fluctuate you can be certain the broker will increase his spread.
Forex brokers are regulated by the Commodity Futures Trading Commission, and you can find them through investment firms or major banks. However, since the rapid uptake of the internet finding a Forex broker has become a simple matter of searching and checking out a broker that meets you needs and that you are comfortable with. This has been a huge bonus particularly for small investors who don’t have a lot of capital and require some hand-holding to get started.
Forex Broker Office Hours
Trading in Forex markets is a bit different to other commodities, in that it virtually never sleeps, so it’s important to find out your brokers availability. By knowing this you can be confident that if you need to get out of a trade in a hurry and you PC or internet connection has crashed you know you can still close over the phone if necessary.
It’s in your own interest to thoroughly check out the backgrounds of any Forex broker that you are considering signing up with. Genuine brokers will make their companies’ financial position and history available to you on request. It is suggested you try out the demo online trading features offered by the broker before committing yourself to make sure they are suited to your needs, this costs you nothing and can prove to be a saving in terms of selecting the right broker for you.
What Do Forex Brokers Get From Your Account? What Do Forex Brokers Get From Your Account? Reviewed by هيما فؤاد on 01:14 Rating: 5

What Every Forex Scalper Must Know

What Every Forex Scalper Must Know
Scalping is one of the most entertaining forms of trading. You can make several hundred and even thousand dollars in a few minutes but you can also lose that same amount of money within seconds. This seat of the pants roller coaster style of trading attracts many traders, mostly new traders.
It is easily to get sucked in, especially if you have some early success, but remember failure is right around the corner. Everyone who has had some immediate success with scalping has always had several days where they have almost lost their shirt. It's inevitable that this happens and is extremely likely because new traders use too much leverage and don't use a money management system.
Not only is scalping hard to be successful at over the long time because it's mostly discretionary trading on the retail level, retail traders do not have the correct tools or brokers to scalp effectively.
Retail traders do not know this dirty little secret: Your broker wants you to fail! But you thought they only earned money on the spread! Most retail brokers also act as the market maker for their customers, that means that your broker is on the opposite end of each one of your trades!
If that wasn't enough dirt, you also do not get to see the market as it actually is! The price feeds on your retail account lags the major banks currency feeds, so you can't really scalp in real time.
Although the pip fees at most retail Forex brokers isn't too high, it's still too high to truly scalp. I know have had this thought: I would make a killing if I didn't have to pay so many pips on each trade. It's a valid thought and it's why professional scalpers don't use retail brokers. Imagine how much money you could make if your pip spread was under 1 pip? You could truly scalp the market all day long for micro pips.
Professional scalpers either use an ECN or they have account directly with the major banks. This is how they are able to truly scalp the currency market and earn those little fractions of pips which equate to big dollars when you use leverage.
So what should you do? Well you should probably look into trading with an ECN or if you can afford it get a direct account with a bank feed.
One last thing that you don't get on a retail account are an order flow book. An order flow book will allow you to know when trades are being made and for what amount. This will allow you to know when a bank is about to pump in a large amount of money to move the market. There are traders who scalp the order book without using any charts.
As you can see, there are a lot of secrets that your broker is keeping from you. You are missing out on so many opportunities to get an edge when you trade with a retail broker.
What Every Forex Scalper Must Know What Every Forex Scalper Must Know Reviewed by هيما فؤاد on 01:13 Rating: 5

What Is Forex?

What Is Forex?
With the crazy markets of today it is very important for investors to diversify and keep their eyes open to new markets. One of the biggest markets right now is forex. What is forex? it stands for FOR-eign EX-change. It is basically the trading of one currency to another.
Many large corporations and even countries simply need to exchange their local currency for another in order to do business. For example most countries must pay for their oil with us dollars, which means they need to exchange their currency for dollars before they can but oil. Another example is with multinational corporations that need to pay expenses in different nations where they do business.
A large part of the foreign exchange market, however, consists of currency traders. Currency traders basically speculate on which direction currencies will go then they buy and sell currencies in order to make a profit.
On your own you may need a significant change between two currencies in order to make a good profit, however, many currency traders are able to take advantages of even small fluctuations in the market.
One major difference between the stock market and the foreign exchange market is that there is almost no inside information. Most significant news is released to the public through news agencies and therefore everyone can have access to the news simultaneously. This is because the fluctuations result mostly from macroeconomics and monetary flows.
A basic thing to know is that each pair of currencies is considered to be an individual product. Each individual currency is given a three letter code. For example, the code for the euro is EUR and the code for the dollar is USD. So EUR/USD is the price of the euro in dollars.
Another major difference is that the market is always open. Forex operates 24 hours a day five days a week. It operates between banks with banks, banks with brokers, and brokers with individuals like you and I. The market is open 24 hours a day because when one market closes in the next time zone another market is open leaving the possibility to continually exchange, even into Saturday and starting Sunday evening.
This is good if you are an individual trader, because you can work during the day and trade in the evenings. Or if you suffer from insomnia you can even trade at midnight!
If you start out slow you can easily get a feeling for the foreign exchange market, it isn’t as difficult as it seems. However, it is important to start out slow until you can get a feel for the market. Many would be investors try to start out big and end up loosing big! Don’t let greed get the better of you.
If you are interested in entering the forex world, don’t hesitate it can be well worth it. It is surprisingly a very user friendly market and with all of the fluctuations in the world scene there is a lot of money to be made!
What Is Forex? What Is Forex? Reviewed by هيما فؤاد on 01:13 Rating: 5

What Is the Best Forex Trading Software in the Market?

To get started with Forex trading, basically all you need is a computer and an Internet. But after signing up with a broker they will often provide you with their specialized software to make your trading easier. This software can be either web based or can be installed on your computer and run from your desktop.
The web based software has the advantage of being able to run on any operating system, without any installation. On the other hand, installed software generally runs faster and keeps your data stored locally.
A common question which brokers get asked is “what is the best Forex trading software on the market?” But in reality there really isn’t one specific software program that suits everyone. Forex traders will have their own preferences as to which type of software they find best suits their needs, and consequently will have their own opinions as to which is more effective for them.
But to give you an idea of what’s available we will look at some of the more popular platforms.
Meta Trade 4
Beginners to Forex trading quite often start off using Meta Trader 4 which can be used for Forex and CFD trading. This is a very powerful platform and popular with many of the more experienced and professional traders. Meta Trader 4 has a quick response time in regard to executing transactions and provides advanced technical analysis in addition to its automation capacity. You are able to access a wide variety of indicators and graphical instruments and create personalized expert advisers (EA). By using a software platform such as Meta Trader 4 you are able to enhance your trading time and experiences.
Market Trader
Market Trader is a similar platform to Meta Trader 4 in that it has a good CFD and Forex trading capacity. The downloadable graphical software is easy to install and use. It comes with a flexible interface that you can easily operate by using drag-and-drop commands with your mouse. You can gain a lot of benefits from your Forex trading experience by using real time graphics and professional analytical tools for developing a good and reliable trading strategy.
Market Web Trader is a simple platform that can be synchronized with your Meta Trader 4 account and the software provide access to all the exchange markets.
Market Java Trader
Market Java Trader is a Java based software and doesn’t require downloading and installing. It is intended primarily for those traders who need instant accessibility. Market Java Trader is equipped with all the powerful tools of Market Web Trader, allowing you to trade from any browser. Last, but not least, a professional Forex trader is able take advantage of any tool to keep trading and check out the updates including from their mobile phones.
This application provides customers with three different mobile applications, being an iPhone application (Market iTrader), the well known Market Mobile Trader for smartphones and the WAP i-mode application Market WAP Trader.
So to go back to the original question as to the best Forex Trading software, only you can decide which one best suits your purposes, each has its own advantages and disadvantages. Whichever you decide to use, it’s important for you to feel comfortable and confident that it provides what you need.
What Is the Best Forex Trading Software in the Market? What Is the Best Forex Trading Software in the Market? Reviewed by هيما فؤاد on 01:12 Rating: 5

What Sets the Forex Market Apart?

What Sets the Forex Market Apart?
The forex market is one of the most interesting trading markets out there because there are so many different aspects that make it unique. While many traders are familiar with the stock market and even commodities, these pale in comparison to the sheer volume traded on the currency exchange markets, more commonly referred to as the forex market.
The first thing to know is that the forex market is by far and away the largest trading market in the world with a volume that is in excess of $4 trillion USD a day. No other market comes remotely close to matching this sheer trading volume. Currencies are always traded in pairs, so a USD/JPY trade means US dollars are being used to buy Yen, while selling those positions means those Yen are used to buy dollars.
While trading can be done with minor currencies, the majority of trades are from the eight "major currencies" of the U.S. Dollar, Canadian Dollar, British Pound, Swiss Franc, Euro, Japanese Yen, Australian Dollar, and New Zealand Dollar. This is why economic reports from these eight regions are so important since those directly affect the price of each currency in relation to the others.
The next thing to know about the forex market is that trades are heavily leveraged. This is what gives the opportunity for huge profits but also opens the door for impressively big losses as well. Normally in the forex a trade is leveraged at 100 to 1. This means a single dollar put down for trading controls $1,000 of currency that's being traded. This is how a change of .001 can lead to profits or loss - because the leverage is so heavy.
So who trades the currency market? The market is available and open for general trading, so anyone with an Internet connection can open up an account. Day traders are a prime example of individuals who trade the Forex. Many large banks and financial institutions participate as well.
One word of warning: trading the forex is nothing like trading in commodities or the stock market. The combination of market volatility and leverage can be a very dangerous combination despite the opportunities that abound. Many traders have gone in who were successful at stocks and commodities but ended up getting hammered when they tried to wade into the forex without doing their homework.
The forex is unlike any other market in the world. Not only is trading so wide spread across many different nations and currencies, but the market is active 24/7, six days a week. Forex might be relatively new on the scene when it comes to trading markets, but it's not one to be taken lightly and it's not one where you can rest on past laurels to carry you through. To be successful a trader has to be on top of his or her game for every single trade because one bad run can completely wipe out a position.
At the end of the day however there's no denying that no market offers the opportunity of the forex market.
What Sets the Forex Market Apart? What Sets the Forex Market Apart? Reviewed by هيما فؤاد on 01:12 Rating: 5

Who Is Involved In Forex?

Who Is Involved In Forex?
There are in excess of one hundred different official currencies globally. Most international trades and payments use the U.S. dollar, Euro or Yen and there are several players in this market. Currency trades can be done via spot transactions, swaps, option contracts and forwards.
Central Banks
The central banks form a very important part of the foreign exchange market. Interest rate policies and open market operations of the central banks play a huge role in currency rates. Central banks make decisions regarding the regime that will be used to trade their currency in the open market. The different types of regimes are pegged, fixed and floating types.
The actions of the central banks are done mainly to increase the value of the currency or to stabilize the rate. Central banks along with governments often intervene in currency trade to boost or limit their currencies. For example, a central bank may decide to weaken its currency during prolonged deflationary periods. To do this, the bank will create an additional supply and use it to buy foreign currency. This causes a weakening of the local currency which makes exports in the global trading market more competitive. Central banks utilize these different strategies in an attempt to abate inflation, but forex traders can use this to their advantage if they keep abreast of developments.
The interbank market handles the largest volume of currency. The interbank market is the place where all banks trade currency. Banks undertake foreign exchange transactions on behalf of their clients and do speculative trades as well. Banks who undertake speculative dealings on behalf of their clients normally make a profit based on the bid-ask spread.
Businesses that are involved in importing and exporting require foreign currency to pay for services and goods. An example of this is a European company who imports parts and components from an American company and sells their finished product to South Africa. Once the sale of finished goods has been finalized, the South African Rand has to be converted to Euros. The European company will need to exchange those Euros to Dollars to pay for the components bought from the American company.
To limit their risk of currency fluctuations, the European company may choose the option to buy U.S. dollars via the spot market, or it may enter into a swap agreement. If it enters into a swap agreement it will obtain the U.S. dollars in advance to reduce the risk attached to fluctuation.
Hedge Funds and Investment Managers
Portfolio managers, hedge funds and pooled accounts are the second largest players in this financial market, second only to the banks. The managers of investment funds usually trade currencies on behalf of large accounts such as endowments and pension funds. Investment management firms who handle large international portfolios need to sell and buy currencies to trade with foreign securities. Investment managers often undertake speculative trades as well, as do hedge funds.
The main players in the foreign exchange market are banks, investment management firms and hedge funds. Central banks play a huge role and individual investors are the smaller players.
Who Is Involved In Forex? Who Is Involved In Forex? Reviewed by هيما فؤاد on 01:11 Rating: 5
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