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Friday, October 30, 2009

How to choose good forex broker


Almost 90% of the investors enter currency markets as short term speculators. Most of the investors look for quick capital gains in forex. Many start forex day trading as a speculative venture. If you have made the positive decision to start forex trading, your first step should be choosing the right forex broker. This is very important. The right choice of a forex broker will greatly influence your success as a forex trader.

These days, the market is overcrowded with companies and banks offering online brokerage services to individual traders and investors to access the currency markets. It is not easy to make the right choice without a certain set of criteria. These criteria will mostly depend on the interests, preferences and means of each individual trader depending on his/her trading strategies and tactics. You may ask, what is the best way to choose the right broker? You should compose a list of questions to ask the forex broker before making a final decision. The following are some of the suggested questions that you should ask. You should ask these questions before making a final decision.

What is the amount of the interday and overnight margin? What is the corresponding leverage? Many online forex brokers offer margin between 2-5%. They provide leverage ranging from 20:1 to 100:1. Higher margin requirement means lower investment efficiency for you. Margin is the amount the broker sets aside as guarantee against your trading losses. However, beware of lower margin. It means that most of the time the forex broker will be against you as a trader and will do everything possible to prevent you from winning. You will face many trading problems with such a broker. It will become difficult for you to work under such conditions.

What is the minimum contract size offered? Now days, the standard contract size is a $100,000 lot. This contract size is quite affordable. This contract size also allows small individual investors to participate in currency speculation. It allows for reasonably effective money management with limited capital. What are the minimum deposit requirements demanded by the forex broker? It is not unusual that many new traders dont have sufficient funds to open an account. The investment and financial means of traders differ. $10,000 is the required minimum amount corresponding to the forex market conditions by good dealers. In my opinion, the optimal minimum amount is $10,000 with 2% margin requirement.

What are the terms of setting and executing stop and limit orders by the forex broker? The ideal condition should be the execution of the stop and limit orders at the fixed price. This should be regardless of the market conditions, its speed and its direction. Some forex brokers provide this type of execution. Other brokers reserve the right to fulfill an order with slippage under unsteady market conditions mostly defined by the broker themselves. The amount of slippage depends on the current state of the currency market. It can vary from a few pips to tens of pips. It is practically impossible to arbitrate the prices received from the broker during a currency transaction. The slippage creates favorable conditions for the abuse of an individual trader by the forex broker.

When choosing the right forex broker, you should find from the broker what are the spread size and its dependence on the contract size? Spread is the difference between the bid and the ask price given at any moment on the trading terminal. The smaller the spread size, the better it is for the trader. Spread is your cost of trading. Most forex brokers give spread up to 5 pips under steady market conditions. Spread up to 5 pips is reasonable and should be acceptable. Some brokers will offer spreads lower than 5 pips if you trade contracts of $500,000.

ECNs (Electronic Communications Networks) offer spreads of not more than 1-2 pips maximum. But they require initial deposit of $10,000. If you have $10,000, then its better to open an account with an ECN. The rates offered by ECNs are interbank and are far better than most of the retail forex brokers. You should look at the additional service like analytical, data, news, quotes, graphics and such offered by the forex broker. Online forex trading is quite popular now. You can monitor currency market movements by following current real time prices, graphics and even news on your laptop or PC monitor.

Does the broker provide trading software with the opportunity to manipulate, modify, and customize graphics; technical analysis using indicators and draw trend lines with support and resistance lines? This can save substantial money by eliminating the necessity of buying an expensive market quote service and analytical and charting software for conducting technical analysis. Does the broker charge commissions and other payments and dues? The most reputable forex dealers and forex brokers charge no transaction fees from their clients. Reputable dealers when transferring an open position to the following day execute the rollover operation in accordance with the current LIBOR rates. The rollover is reflected in your daily statement.

It depends on the currency pair and the direction in which the position was opened. At the moment of its transfer the next day, the client could actually win as the result of the transfer. A certain amount of interest would be added to his account just for holding the position for more than one day. This interest is the difference between the interests offered on the deposits on the two currencies in the pair. Sometimes a trader will hold two opposite positions overnight.

For example, a trader may have executed USD/CHF transaction for the total amount of $400,000 buy and $200,000 sell. Then the long position of USD/CHF amounting to $200,000 should be transferred to the next day and the corresponding interest deposited or charged to the traders account accordingly. Most forex brokers always charge the client interest for holding the position overnight regardless. They do not bother with these calculations. Many brokers will charge interest for practically non existent positions. You as a new trader should know these facts. You need to choose you dealer after due diligence.

video on forex trading tips

forex newsGold Prices As A Leading Indicator


The AUD, NZD, CAD and CHF all have strong correlation with the gold prices. Natural gold reserves and currency laws in these countries result in almost mirror like movements. The CAD also tends to move somewhat with the oil prices. However, the correlation is not that strong. Each one of these currencies has a correlation with gold and oil and the fundamental reasons of doing so.

Knowledge of the fundamental reasons behind these correlated movements between gold, oil and these currencies and their direction and strength could be a good method to discover trends in both the markets. There is a strong correlation between gold prices and US Dollar too. During times of geopolitical instability as well as when fears of global recession become strong, traders tend to shy away from Dollar and instead turn to gold as a safe haven for their investments.

Therefore, as Dollar depreciates, gold prices tend to appreciate as wary investors become afraid of losing their wealth. AUD/USD, NZD/USD and USD/CHF currency pairs tend to mirror gold movements. Generally speaking, gold prices are a leading indicator of currency prices. As such, commodity block traders monitor gold and oil prices to forecast movements in currency pairs. This knowledge can help forex traders to diversity their risk exposure using different products. The combination of gold and forex trading can be very profitable.

Follow Gold in Currency Trading
The old image of cranking up the printing press to increase money supply is outdated in the digital age. Now computer keystrokes can create dollars or euros or yen by the billions, and then move them around the globe at cyberspeed. But advances in technology and global finance have not changed the basic economic principle represented by the printing press: when central banks can churn out paper money at will, the value of this paper is highly suspect.

Paper money can be valued, of course. The question is, ‘Against what?’ It would seem that cash is losing its purchasing power at an accelerating rate against other assets because of expansionary monetary policies. You can print money, you can increase the supply of bonds, you can increase the supply of equities through new issues, but you simply cannot increase the supply of oil endlessly, nor of copper, nor of gold. Certainly not of gold.

Since 2000 gold and precious metals have significantly outperformed other financial assets. And the worse the economic and financial conditions of the United States and other countries become, the more value cash will lose against hard assets, which have now become the world’s ‘new money’. In an environment of monetary debasement – that is, when cash loses rapidly its purchasing power– all goods, services and assets become currencies. It is during these times that investors and savers realise that the only way to protect their purchasing power is to move away from paper assets.

Everyone wants to buy gold. Gold is the ultimate global currency. US Dollar used to be pegged to gold before 1973. But with the collapse of the Bretton Woods System that year, US Dollar was unpegged from gold. It became a freely floating currency. Free floating for a currency means the value of the currency is determined by the fundamentals of supply and demand. Now US Dollar is only backed by the full faith and credit of the US Government. Most of the currencies in the world are free floating now. Many countries are also purchasing gold in the open markets as a hedge of their foreign reserves most of which are in US Dollar. In the present financial crisis with the global economy in recession, many investors are trying to take refuge in gold as the ultimate safe haven of their wealth from financial turmoil.

The Australian Dollar is known for its strong correlation with gold prices. Most of this is due to the amount of gold that Australia produces and exports. US Dollar has an inverse relationship with gold prices. When gold prices rise, US Dollar falls in value. This causes the currency pair AUD/USD to rise in value. The opposite of this is also true. When USD gains value, gold usually loses value. The pair AUD/USD depreciates as a result. So when gold prices are rising, we can trade AUD/USD currency pair long. Likewise, when gold falls in value, we can trade AUD/USD short. This relationship may be due to the fact that gold is considered to be the ultimate safe haven of their wealth by investors in times of financial crisis. This relationship provides us with a method that we can use to take advantage of the fundamental factors that influence the currency markets.

Saturday, October 24, 2009

Forex Peace Army Attcking Forex Traders



If you asked me, what is the most profitable and liquid market of all, then my answer should be the foreign exchange market or famously known as forex market. Literally the foreign exchange market is a common trading where banks, government and financial institution are buying and selling currencies from many different countries. But there are also some parts of the traders who involve solely for making profit from the gap between each currency. As you know every currency are waiving around up and down as the result of the economic movement reflect by the issuer country.

For example, it’s very common for traders to get profit by buying US dollar when forex signals shows them that US dollar is strengthen against the British Pound Sterling and sell it back when the US dollar is high enough to collect the profit. This system is also work on the opposite direction. This is the reason why forex market sometimes called as two ways market.Latest internet technology also contribute highly for this raise, since people today can easily enter the market, make some trades and earn profit without needed to leave their home. They can involve in forex trading independently through the internet. Years ago, this practice seems to be impossible for regular Joe who wants to trade on forex market. Back before, only the authorized institution backup with huge fund can involve on forex market and gain profit from it.

The easiness, prospective and long term opportunity that makes online trading become more and more popular today. But of course, just like other business, trading forex also involves risk. The risk is even bigger if you don’t have enough skills and knowledge about Forex Signals and how to ride the currency waives and makes profit from it. There are tons of examples where a fresh newbie get broke when they enter the forex market and get burnt out. It’s all because they have a wrong mind and think forex market as an easy money which is completely wrong. To make profit you do need enough skills and knowledge about the forex market in order to manage and minimize the risk.

If you are a completely newbie in forex but would like to trade like a pro, you do need helps. One of the most recommended places to get help from professionals traders to guide you or even give you a hint on FOREX SIGNALS is at dtsinvestments.com. They offer forex signals, futures signals, and ETF trading strategies from professional and veteran traders who did make living solely from trading on the forex market and future market. With their help you can minimize your risk to lose money as the result of your lack on skills and knowledge about forex market. For more detail information just visits their website or calls them at 877-Trade-51 or 760-444-0604 (tool free). They will gladly to give you assistance.

TOday 's Global Forex SOUTH AFRICA!



Forex stands for FOReign EXchange and represents the mechanism by which the value (price) of a currency is established in relation to another. This value is called the exchange rate and the FOREX market is the market on which the various currencies are exchanged.
The FOREX market was born because any economic transaction involving two operators of different nationalities has to pass, sooner or later, through the stage of the purchase and sale of currencies. Over the last twenty years, however, the role of pure speculation on FOREX has become increasingly important, to the extent that, today, around 90% of the transactions on this market are speculative.
The FOREX market is an "over-the-counter" market and has no precise physical location. FOREX trades are made bilaterally, between two contracting parties, who independently establish the terms of the exchange contract. So, the rates indicated by the international information circuits, such as Reuters or Bloomberg, are indicative and not operational, and there are no predetermined quantities, settlement methods and due dates.
The main actors on this market are banks, brokers, hedge funds and central banks.
The Forex market is open 24 hours a day, uninterruptedly, from Sunday night (Monday morning in Japan) to Friday evening (close of the US Markets.
The value of a currency reflects the economic situation of the country involved. The variables that describe this situation, e.g. inflation, interest rates, GDP growth, etc., are referred to as "fundamentals". They also include the exchange rate, which influences and, in turn, is influenced by the other "fundamentals".
Generally speaking, fundamentals indicating a flourishing economic situation with good future prospects tend to cause the value of a currency to rise, and vice versa.

Forex Successful Currency Trading:By JAWAD



The Foreign Exchange - Forex, FX - market is one of the biggest markets today. Daily turnover has skyrocketed from approximately 5 billion USD in 1977, to a staggering 3 trillion (and more) US dollars today. This is more than 40 times the daily turnover of the NASDAQ.

Forex currency trading is attractive to traders as currency markets are cnstantly fluctuating and there is potential to profit whether a currency is going up or down. Traders trade on margin which leverages their potential gains. What also makes it so popular is that there is no centralized location for trading as there is in futures or stocks, as trading occurs around the clock over the telephone and on computer terminals at thousands of locations worldwide.

Currency trading occurs when one country's currency is traded for another country's currency at the prevailing exchange rate. All currency is traded in LOTS. Each lot has a different amount of currency. Currency trading is carried out on a point (or pip) system. Traders are trying to capture points. Depending on the currency, each point is worth a different amount. For example, if the Brittish Pound is worth about $10 per point that is traded per lot and you trade 1 lot and capture 40 points, you make $400.

Forex currency trading does involve substantial amount of risk. About 10% of people make money and 90% lose money on currency trading! Why? Because many of those who enter the currency trading market are dirven by emotions and know very little about the techniques of currency trading. Having some forex currency trading education, being in the optimal state of mind, and having the right tools can help you to join the ranks of those 10% of people who do make money in forex currency trading.

Currency trading professionals seek price fluctuations and investors seek return on investment. Both take a calculated risk that is minimized by knowledge, optimal mind set, and the right tools. Currency trading turns into gambling when you are uneducated, trade emotionally or with a "hot tip".

Successful Forex Trading set of CDs is designed to help you become a successful Forex trader by programming your subconscious mind to help you choose the best currencies to trade, when to enter, when to exit the trade, develop your intuition and open yourself to financial abundance. Financial wizards will tell you that 80% of financial wizardry is in your mindset and the other 20% is in techniques and mechanics.
Successful Forex Trading CDs help you to get into the optimal mindset for successful Forex trading. Beside having the optimal mindset, you could also tremendously benefit from having the right tools - like Real Money Doubling Forex Robot - click here to watch the videos that show you the results you can achieve

Introduction to Forex Trading


Foreign Exchange is the simultaneous buying of one currency and selling of another. In other words, the currency of one country is exchanged for that of another.

The currencies of the world are on a floating exchange rate, and are always traded in pairs - Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve the trading of the major currencies - U.S. Dollar, British Pound, Euro, Swiss Franc, Japanese Yen, Canadian Dollar and Australian Dollar.

The Foreign Exchange market (FOREX) is the largest and most liquid financial market in the world with a daily turnover of over $2 trillion, more than three times the aggregate amount of the United States Equity and Treasury markets combined. By comparison, the currency futures market is only one percent the size of the Foreign Exchange Market.

Unlike other financial markets like the futures and stock markets, the Forex market has no physical location and no central exchange. It operates through an electronic network of banks, corporations and individuals (referred to as Interbank) trading one currency for another.

Forex Trading Begin making money with FOREX



ANYONE can profit from the forex funnel system even with no knowledge and no trading experience, this is the money you have already missed out on by not getting the forex funnel system earlier. DONT WAIT ANY LONGER.

OSWLZ.com is a division of LIBSA International Group, a dedicated partner to professional FX traders and fund managers worldwide. Individual forex traders can take advantage of the market expertise and financial strength of LIBSA International Group and access an institutional FX trading platform, along with powerful real-time forex charts, professional forex market research, and suite of advanced forex trading tools. For traders new to the currency trading, OSWLZ.com in partnership with the forex funnel has been designed a system easy to setup and profit from it right away. Even if the most you have ever used your internet for is browsing ebay or checking emails, you will still be able to use this system to funnel money.. ... But don’t think this is restricted to newbies, if you are a proven forex trader - you can profit from this system even faster, however it does not distinguish between skillsets, it simply makes money for ANYONE, anywhere in the world that has an internet connection.

LMT Forex Formula Review, It's a scam?Jawad



With so many new Forex products coming into the market every day, it can be difficult choosing one that will be as effective as you would like it to be. Most Forex products promise unbelievable results and prey on people who are new to the industry because of their vulnerability. If you are looking for a Forex product that you can trust, you should get LMT Forex Formula.
LMT stands for Low Maintenance Trading, and that is exactly what the program offers. It is a program created by one of the most established names in the industry- Dean Saunders. Saunders is the author of many other Forex products in the past, all of which are known to be effective. That is one of the main reasons that make the program trustworthy.

The other main reason to trust the program is that it is not a Forex robot. Forex robots are a highly risky proposition as they take over the entire trading process. There is no human input to the program and it only runs on an algorithm. Algorithms may not always give accurate results, which could means thousands of dollars in cash for you. LMT Forex Formula does not trade on your behalf. Instead, it uses its algorithm to identify the trade, but only goes ahead with the trade once you have given your confirmation. And, the program also helps you decide whether or not a trade is profitable. It provides you with 4 checks and if the checks are satisfactory, you can go ahead with the trade.
The best thing about LMT Forex Formula is that it only deals with trade that can make over 100 pips. So, you will only have to look at a few trades a week as opposed to many trades throughout the day. This makes it easy even for a part-time trader to make money.

LMT Forex Formula Review



If you are looking for a Forex program that gives you expert advice on profitable trades, but does not take away the reigns of trade from your hands, you need to look no further. The recent trend in Forex programs has been Forex robots that take control of the entire trading process and not only select the trades, but also conduct them. Most traders are not comfortable with such a proposition and they can’t be blamed for their skepticism. Many traders have lost their shirt by placing their trust in Forex robots.

LMT Forex Formula is not a Forex robot and will not take over your entire trading process. Instead, it will select the most profitable trade opportunities and conduct 4 checks on them. All you need to do is look at the 4 checks and decide for yourself whether or not you would like to put your money on it. If you choose to go ahead with the trade, the program will carry out your instructions. What’s more, it will also provide you with tips to close the trade at the right time.

The best thing about the LMT Forex Formula is that the control over your trading remains firmly in your hand. LMT Forex Formula manages to combine cutting edge program algorithm with human touch, a rare to find commodity anywhere in the world. With LMT Forex Formula, you need not worry about losing all your hard earned over a glitch in the algorithm.
LMT Forex Formula comes from Dean Saunders who is an established trader and a reputable expert. His previous Forex products have been a great success and LMT Forex Formula also promises to be one. Do not get fooled by Forex robots, place your trust in a leader who is known to show the path of success to those who follow him,

Classifications of Forex Trading Accounts:jawad


Simple classification of Forex Trading AccountsIndividual Account: When transactions are done only for you, then it is referred as an individual account. This account can be a ‘non-discretionary’ type where only you have the right to make decisions and a broker must get your prior permission or sanction to carry out any transactions, or it can be a ‘discretionary’ account where you give the right to make decisions on your behalf to a broker or any third party.
Commodity Pool: Here the trade is executed on behalf of a group of individuals who trade commodities by means of a ‘commodity pool’. You have to purchase a share in the pool and the transactions are made for the pool as a whole and not based on the interests of an individual. And likewise, the profit or loss is shared by the entire pool.
Before making transactions you should:• Set your goals and be aware of your capabilities to invest and handle a risk or loss.• Know the extent of help you need from a trading advisor and signals to make decisions.• Check the reputation and registration status of the advisor with the National Futures Association.• Obtain and review the disclosure document before opening a trading account.• Not hesitate to ask any question regarding trading that you do not understand or have doubts.

Friday, October 23, 2009

Forex is the largest and most happening financial market of the world


Forex is the largest and most happening financial market of the world. It is the venue where one currency is traded for the other. The market place is distinguished from the rest because of its high trading volume and geographical dispersion. A trader with sound knowledge of currency trading can earn substantial profit in forex market. Along with the knowledge of trading, he should have access to a few tools of forex trading. These tools are made to strengthen the confidence of a trader and can prove out to be a great help for a winning currency trading in forex. Being an awakened trader of forex market, you should remain aware about every latest happening of currency trading. Therefore, it’s important for you to have access to daily forex trading summary for important currencies and currency pairs. Add to this, a weekly forex trading summary is also beneficial as it will encompass detailed analysis of your sought subject. Tools that help you to access and monitor the interest rates, financial calendar, glossary database are also worthwhile. Apart from the above, there are several other tools of currency trading available around you. Several software containing detailed analysis and information about currency trading are also available at your disposal. All these tools and software packs are important for a successful forex trading. With access to such tools, a trader can easily execute his trading. Now, how to get these tools easily and satisfactorily? Well, it’s easy. With the availability of internet, you need not to get out of your home to access these tools and software packs. Just a single click and you can access valuable information and tools regarding currency trading in forex. Several online forex firms have been established only to offer you tools and software packs for forex trading. Some of them may charge money from you to download or access the software packs and tools. If you are not at all interested to cut your pocket, go for those forex firms, who offer free download facility. Online forex firms are beneficial in many ways. They not only offer you currency trading tools and software but also keen to give you an insight into the latest incidents of forex market. They also publish economic reports and influential topics on their websites with an aim to update a trader about what matter in currency trading. You can also access live charts of the forex market and trading secrets from such online firms. These forex firms are usually run by experienced professional, who own years of experience in currency trading. So, you can trust them. Thus trading in forex market has become easy with the availability of tools and software packs. And the advent of internet has made it easier. Today any one from any corner of the world can access forex trading tools for simplifying his currency trading.

Million Dollar Trader - Trade Forex From Home



Million Dollar Traders was on BBC2 last night. What a great introduction to city traders and how unpredictable the Stock market can be! So thats why I trade the Forex and not the Stock Market then!

Some of the trainees have aspirations to trade full time including a retired man who was interviewed stating that he wanted to use his savings to trade from home after the series had finished. With the availability of great trading from home facilities avaialble to anyone, anywhere in the world and anytime day or night - trading from home, especially within the Forex market is a real possibility.

Well I guess it was pretty bad timing as the program was filmed last year when Freddie Mac and Fannie Mae announced financial meltdown in the US so the newbies couldn't be trading at a worse time! However the familiar 'frozen finger' inability to place a trade was prevalent so too was emotional attachment and emotional reactions, loss of confidence etc to trading which most newbies go through - including myself.......oh yes some good 'ol roller-coaster days but have managed to keep it together long enough to have learnt and come through the other side.

Having said that I haven't been able to do it trading the UK Stock market - Forex is where its at as far as I'm concerned so hats off to the guys in the program for trading the UK Stock market through one of the most difficult periods in a generation.

Trading psychology and risk management as emphaised in the program are essential key factors to get right when trading any market. Building this into your strategy, giving yourself targets such as the '3 srikes and your out' rule will make this easier to deal with. Don't allow yourself more than 3 trades to go against you in one trading period. If that happens finish for the day there.

Trading any market has the ability to wipe out your money, savings and future. As the Million Dollar Trader program is showing, trading without strategies is like playing with fire. Formulate a good solid trading strategy before you open any position - it will also make you more confident as knowing you have done your homework is good for your trading mindset.


Million Dollar Traders was on BBC2 last night. What a great introduction to city traders and how unpredictable the Stock market can be! So thats why I trade the Forex and not the Stock Market then!

Some of the trainees have aspirations to trade full time including a retired man who was interviewed stating that he wanted to use his savings to trade from home after the series had finished. With the availability of great trading from home facilities avaialble to anyone, anywhere in the world and anytime day or night - trading from home, especially within the Forex market is a real possibility.

Well I guess it was pretty bad timing as the program was filmed last year when Freddie Mac and Fannie Mae announced financial meltdown in the US so the newbies couldn't be trading at a worse time! However the familiar 'frozen finger' inability to place a trade was prevalent so too was emotional attachment and emotional reactions, loss of confidence etc to trading which most newbies go through - including myself.......oh yes some good 'ol roller-coaster days but have managed to keep it together long enough to have learnt and come through the other side.

Having said that I haven't been able to do it trading the UK Stock market - Forex is where its at as far as I'm concerned so hats off to the guys in the program for trading the UK Stock market through one of the most difficult periods in a generation.

Trading psychology and risk management as emphaised in the program are essential key factors to get right when trading any market. Building this into your strategy, giving yourself targets such as the '3 srikes and your out' rule will make this easier to deal with. Don't allow yourself more than 3 trades to go against you in one trading period. If that happens finish for the day there.

Trading any market has the ability to wipe out your money, savings and future. As the Million Dollar Trader program is showing, trading without strategies is like playing with fire. Formulate a good solid trading strategy before you open any position - it will also make you more confident as knowing you have done your homework is good for your trading mindset.

Tuesday, October 13, 2009

Discussion about Factors which cause foriegn exchange volume growth

Foreign exchange trading is generally conducted in a decentralized manner, with the exceptions of currency futures and options. Foreign exchange has experienced spectacular growth in volume ever since currencies were allowed to float freely against each other. While the daily turnover in 1977 was U.S. $5 billion, it increased to U.S. $600 billion in 1987, reached the U.S. $1 trillion mark in September 1992, and stabilized at around $1,5 trillion by the year 2000. Main factors influence on this spectacular growth in volume are indicated Below.

For foreign exchange, currency volatility is a prime factor in the growth of volume. In fact, volatility is a sine qua non condition for trading.

The only instruments that may be profitable under conditions of low volatility are currency options.

• Interest Rate Volatility

Economic internationalization generated a significant impact on interest rates as well. Economics became much more interrelated and that exacerbated the need to change interest rates faster. Interest rates are generally changed in order to adjust the growth in the economy, and interest rate differentials have a substantial impact on exchange rates.

• Business Internationalization

In recent decades the business world the competition has intensified,
triggering a worldwide hunt for more markets and cheaper raw materials and labor. The pace of economic internationalization picked up even more in the 1990s, due to the fall of Communism in Europe and to up-and-down economic and financial development in both Southeast Asia and South America. These changes have been positive toward foreign exchange, since more transactional layers were added.

• Increasing of Corporate Interest

A successful performance of a product or service overseas may be pulled down from the profit point of view by adverse foreign exchange conditions and vice versa. An accurate handling of the foreign exchange may enhance the overall international performance of a product or service. Proper handling of foreign exchange generally adds substantially to the rate of return. Therefore, interest in foreign exchange has increased in the past decade. Many corporations are using currencies not only for hedging, but also for capitalizing on opportunities that exist solely in the currency markets.

• Increasing of Traders Sophistication

Advances in technology, computer software, and telecommunications and increased experience have increased the level of traders' sophistication. This lenhanced traders' confidence in their ability to both generate profits and properly handle the exchange risks. Therefore, trading sophistication led toward volume increase.

• Developments in Telecommunications

The introduction of automated dealing systems in the 1980s, of matching systems in the early 1990s, and of Internet trading in the late 1990s completely altered the way foreign exchange was conducted. The dealing systems are online computer systems that link banks on a one-to-one basis, while matching systems are electronic brokers. They are reliable and much faster, allowing traders to conduct more simultaneous trades. They are also safer, as traders are able to see the deals that they execute. The dealing systems had a major role in expanding the foreign exchange business due to their reliability, speed, and safety.

• Computer and Programming development

Computers play a significant role at many stages of conducting foreign exchange. In addition to the dealing systems, matching systems simultaneously connect all traders around the world, electronically duplicating the brokers' market. The new office systems provide full accounting coverage, ticket writing, back office processing, and risk management implementation at a fraction of their previous cost. Advanced software makes it possible to generate all types of charts, augment them with sophisticated technical studies, and put them at straders' fingertips on a continuous basis at a rather limited cost.

Foreign Exchange as a Financial Market

Foreign Exchange as a Financial Market

Currency exchange is very attractive for both the corporate and individual traders who make money on the Forex - a special financial market assigned for the foreign exchange. The following features make this market different in compare to all other sectors of the world financial system:

• Heightened sensibility to a large and continuously changing number of factors;
• Accessibility to all traders in the major currencies;
• Guaranteed quantity and liquidity of the major currencies;
• Increased consideration for several currencies, round-the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open and….
• Extremely high efficiency relative to other financial markets.

This goal of this manual is to introduce beginning traders to all the essential aspects of foreign exchange in a practical manner and to be a source of best answers on the typical questions as why are currencies being traded, who are the traders, what currencies do they trade, what makes rates move, what instruments are used for the trade, how a currency behavior can be forecasted and where the pertinent information may be obtained from. Mastering the content of
an appropriate section the user will be able to make his/her own decisions, test them, and ultimately use recommended tools and approaches for his/her own benefit.

Marketing

Viral Marketing 101

There are many advantages to viral marketing. Viral marketing can be effective for either web-based and everyday "store-front" businesses. If done correctly, viral marketing campaigns can absolutely bring thousands, even millions of new people to your website and business. It will bring additional traffic to your site and build up your link popularity. Viral marketing campaigns are inexpensive and work well. The idea is to promote your website mainly through word-of-mouth. Every website can use these marketing strategies. It just take a few steps.

First of all, remember that any pushy marketing promo is often irritating and might detract from your intent. The key is offering original and practical content that audiences will eagerly share with those they know. It is a characteristic of people to want to communicate - for example by sharing a fabulous eatery or novel, it becomes an instant hit.

Set up an uncomplicated "tell a friend" section. Be sure it is easily accessible and insert it on every page, but DO NOT send emails to the friends after the first contact - if they later want to, you can add them to your mailing list; this way they will see you are not a spammer - and above all don't be pushy and don't be annoying.

Compose an online book, provide wallpaper or backgrounds for PCs, along with clever tools, such as online weather forecasts. Make certain that you brand these with links reminding people of your web site.

Put a clever brand name or logo on your site or product. This should be listed repeatedly on your site and on every item you sell.

For those whose website content changes or is updated frequently, be sure to implement RSS. Superior RSS feeds are registered and shown by a variety of sites online.

The campaign must target emotions and elicit the need for action. Be determined, and you have to be dogged with your persistence, but do not cross the line into being pushy.

Guerrilla Marketing Basics

There is not a pre-determined set of rules to follow when doing guerrilla marketing for your website. The trick is to be creative. It doesn't use expensive traditional methods such as ads on TV or the radio. The trick is to use cheap imaginative methods to deliver the message. Small businesses have been utilizing these techniques for years by using flyers, pens, t-shirts, and bumper stickers.

Guerrilla Marketing campaigns also use techniques that are more out of the ordinary, such as contests, PR stunts, and whatever type of innovative marketing strategy you can imagine. Podcasts are growing in their popularity. Be original with your ideas.

To begin your work as a guerrilla marketer, you first need to exercise your creativity. Find different methods to get the message about your merchandise or service to reach possible clients.

Examine what you sell from the perspective of the customer. Who is the target consumer for this item? How do their minds work? For example, if teens are your target demographic, you will try to steer away from boring campaigns and aim for something dynamic. However a trendy and cutting edge campaign is not liable to draw the elderly or conservative business types. For a demographic that is based on gender rather than age, naturally you should customize your campaign to appeal to either men or women.

Integrity and work ethic in business are required regardless of the kind of marketing methods that are employed (with guerrilla marketing, employ multiple campaigns; don't limit yourself to just a couple)

Regardless of what you are told; just as with every successful company, if you spread your message but you don't have a superior item to sell, your time and work will be misspent. Or worse. The ideal marketing technique is word of mouth; however, it is also the most damaging for those who perform poor work. A major tax firm where I used to work told the associates something to the effect that customers who are happy with the service you provide might let a few people know about you. However, if they are displeased, they'll tell everybody they meet. Food for thought.

Promotional Gifts-Plan to Succeed

It has been established beyond doubt that the distribution of promotional gifts is one of the ideal ways to reinforce your brand with your customers. These types of products which have good utility and durability have time and again proved to be great brand ambassadors. While there is no guarantee that all gifts that you distribute will last the distance, with some thought, effort and investment of time, you can reduce the chances of any gift malfunctioning and giving your brand a bad name.

The first step is to determine a budget which would be adequate and enough to take care of your purchases. It is futile to hope and aspire for some top end quality items without making the necessary budgetary allocation for them. There is utmost need to do some research and find out the comparative costs of the items you have in mind before deciding on something that you can afford.

Having set the budget, you now have to look at the types of products that are available within that budget. Their selection should also be such that they are fancied by your customers and hence knowing customer taste is of paramount importance. Your sales person should be able to give you a good idea about the individual preferences of your customers and that information will help you considerably in narrowing down the gifts you ultimately want to purchase.

The next part is the branding and this will go a long way in creating that impact and recognition that you aspire for. It is best to adopt simple printing processes to make sure that your logo is clearly visible and not obscured by lot of colour or graphics. Another point to note is the size and shape of the fonts that you use for the logo. Your logo must be visible even from a distance and you should not make that difficult with the use of complicated and convoluted fonts.

The last and probably the most important aspect is the timing of your gifts. While modern machines and printing technology can deliver fast and at short notice, it is always advisable to plan things such that you are not rushing your vendors. You need to allow time for proof reading of messages and the correct display of the logo, as these cannot be compromised at any cost and any last minute rush will only serve to spoil things.

You can see from the above that there are steps that need to be followed for the success of any brand promotion and as long as you can adhere to this discipline, you are sure to create the right impact and the use of promotional gifts will enhance your brand recognition.

Writing an Effective Marketing Message

When you market yourself well in your booklet printing, flyers printing, and even in your print custom booklets for example, first, you have to consider putting your best foot forward. Always. Write a copy, whether it is in your booklet printing or sales letter that shows your knowledge and expertise in your field. Make them want to get to know you so you can explain to them further how you can be relied on to produce solutions every time. Then consider giving them what they want as opposed to forcing on them what you assume to be the things they need.

Second, do write a tight message. This means getting rid of all the unnecessary words that only clutter rather than emphasize what you want to say to your target audience. Always make sure that you delete the words that will not change your meaning even if you take them out of your copy. The lesser words you have in your marketing copy, the easier it would be for your target clients to understand your print custom booklets for one.

Third, be specific. Do not be too general. If you can give them the solution to their needs and that you are the only who can do so, then show them how. Tell them how you get things done and show them how your attention-to-detail can get them the best customer service in this planet.

Lastly, proofread, proofread, and proofread. Make sure to read your copy and edit it before you get your provider to print custom booklets for example. Nothing makes your target clients to lose attention than having to read marketing copy that is full of grammatical errors and incorrect spellings.

If you want your target clients to read your message and eventually keep it, make sure that you write a very powerful and tight marketing message. When you are prospecting, it is expected that you give your target clients your best so they can be persuaded to give you what you are asking for.

A Savvy Marketing Idea for Businesses

You need to make sure to get as many possible prospects as you can. Hence, you need to be more resourceful when it comes to getting ahead in your industry, in every way possible. The bottom line is to have yourself an effective marketing campaign that can help you make a sale, which in turn earns money in spite of the stiff competition.

As a business owner and marketer, you know for a fact that practically everybody who is in the commercial industry is a competition. Add to that whatever you are offering, almost everybody have the same offer. If you are using custom catalogs for your collaterals, no doubt that your competition have used it one way or another. What you can do, your competition can also do it. So how will your target clients choose? More than the features, your clients and prospects will choose based on how you present your products and services.

That is right. Your target clients will choose you if you give them a good package. It is all in the packaging really. It is on how your target clients perceive your offer that would make them try out your product or service. The very essence of good marketing is making it possible for you to present your products and services in a way that would be irresistible to your target audience. Say, you are designing your catalog printing for your collateral. You can only be effective if you can present your custom catalogs in a way that your target clients would perceive that what you offer them is the best there is in the market.

Good packaging then is making your target clients see the benefits of dealing with you. Ensuring your target clients that you are the only one who can provide the solution to their problem is the best way to get them to consider your offer. If you find the very thing that would solve a particular issue or need of your target clients, you are more than likely to attract these people like bees to honey.

One final note: just make sure that you are able to deliver on your offer. Even with the best packaging and message, if you cannot walk the talk, you will be left with not only zero sales, but also your reputation will precede you wherever you go. Word-of-mouth can be your ally when promoting yourself, but it can also be your enemy when you do not deliver what you promised.

The Power Of Your Marketing Words

Whether we like it or not, our words in our marketing strategy, be it brochure printing, print flyers and custom brochures, can make or break our business. The right words can definitely help us to achieve the goals we have set out to do; but the wrong ones can bring us failure that we might not be able to escape from.

Our words are that potent. The words you say in your brochure printing for example can spell success or the end of your business. So it will do you well to understand the power you wield when you use the right words to convey your message.

However, you also need to realize that the success of your words depend on the abundance or lacking of it. This means that you also have to consider what can help you provide grace and skill when you write your words, or the excess of it can really hurt your chances of getting your target audience to take your offer. When done well, your descriptive words in your brochure printing for one can go a long way in helping you influence your target audience to include your products and services in their buying decision list.

Words such as quality, distinct, fresh, the best, your ultimate solution, comfortable – they can help you attract the right customers; customers that have a need for your offer, as well as those that have the capability to pay for it. These are examples of words that can help you set the mood so that they will be convinced that you are the business that can provide them the solution to their needs and wants.

But be careful too, that you do not sound off as a business with too much hype that you turn off every one of your target audience. Remember that customers can see, hear and smell a marketing propaganda from miles away. Hence, they do turn them off even before you can begin to say your full message, and they will definitely throw you out as quickly as possible.

You have to remember that for you to make your words work hard to accomplish your goals; you need to accompany your words in your custom brochures for example, with action. Follow your words with facts to prove your point. When you can do that, your words can be the most effective words in the industry and you can always generate leads for your business.

The bottom line is for you to not only describe your offer in as straight and clear words as you can to entice your target audience; you also have to complement your words with the action to deliver what you have promised. Do not make your words empty and without any value. If you give your promises and deliver on them, you will definitely get your target audience not only to consider your message; but also to have them hand you their hard earned money with no ifs and buts.

Affiliate Marketing other Income Streams

In this short guide, I am going to tell you a little about my experiences in affiliate marketing. I dont have the big house and sports car to show you, as I am not there yet. However I do make a comfortable living working the hours that suit me from my own home. It took a lot of time and dedication, but it was worth it.

After my first 10 days in clickbank's system, I had made $480. How was this achieved? You can see nothing happened for the first few days until I started marketing it. I made those results by selling similar products to which I already to the same target market I had captured (via an opt-in mailing list). You need to know your target market and their spending patterns, along with where they are in the product cycle. You need to go to your wealthy affiliate account to help you select the top product, as they have a better clickbank tool than clickbank itself. While the figures are nowhere near as impressive as many I have seen, they are my first week, and with a limited target audience! Getting the picture?

A key part of this is building newsletter lists from your existing sites. These are all opt-in and I highly recommend using aweber to manage all aspects of managing your newsletter, from creating the sign up form script, to providing follow up emails and email broadcast functionality. This list is really your key revenue creator. If you can get people into the site via SEO, you can create repeat sales opportunities. If I send a newsletter to 100 people and make $200, what would a list of 50,000 get me? $100,000! Does it seem fantastical? I assure you it is not.

With the wealthy affiliate site, free hosting is now available for 3 domains, along with a package called 'siterubix' which is a site building tool. It doesn't get much easier than this. Everything you need to know about what to build, the tools to build, and to host in one location.

Here is a twist on generating content that you probably don't know. You can have the site content automatically update itself, using self-growing-websites technology. This pulls relevant content from article directories and RSS Feeds, along with your own content, and gradually adds it to your site in an organic way, so it looks to the search engines that it was a human, not a script that created this.

Along with your site, build a useful service. Give people a good reason to visit. You can then have subscribers, paying you monthly. Maybe you can coach people at something, or create an alerts service. Focus on what you are good at and enjoy doing. then hire a programmer and make a good tool for it - a centerpiece for your site.

How Do You Niche Market Effectively?

This is where niche marketing can help you market effectively. Niche marketing allows you to get the most out for your hard-earned cash and lets you to achieve the results you expect for your business.
So what is niche marketing really? Niche marketing is not about appealing to everyone, although that would definitely be great to your profits. It is not also providing your target clients with the same things that your competitors are offering. In addition, it is definitely not about doing the same things to help you keep up with the Kardashians. It is exactly the opposite of all these. Niche marketing is about you being distinct and standing out from the rest. It is about pulling all your time, energy and resources together, and then putting all of them in one big pot – your own brand of business offering. In a nutshell, niche marketing is offering your target market with the best of what you have.
Be it catalog printing, custom flyers, color hang tags or cheap catalogs, the essence of niche marketing in your marketing campaign is to set you apart from the rest of your competition. It is conveying a message in your catalog printing for example that you offer the best there is in the market so that whenever your target clients have a need for your type of service, they turn to you without even batting an eyelash.
The next question now is how do you niche market effectively? Remember the three W’s – Who, Where and How.
Who –
Who are the group of customers that can bring you definite results when you market your products and services? Whom would you want to work with? Who would best benefit from your products and services? Who goes back to your company every time for repeat business? Who provides you with referrals and work as your word-of-mouth advertisers? The first thing you need to know is ‘who’ are the people that you can rely on to need your type of service or product, and who actually have the capability to purchase from you.
Where –Where do you look for the groups that you have identified? Where can you place them in terms of their common demographics? Where do you find your past clients and referrals? What about your loyal fans?
How –
How will you reach your target market? How will you spend your time, energy and resources to get these groups aware of your business?
Remember – to effectively market your business you have to find your niche. Do not be tempted to try to have everybody interested in what you have to offer because it just does not work that way. Instead, concentrate on who really are in needs your brand of service and you will more than likely catch as many customers to your business.

Create A Marketing Plan-Elements For Success

Intelligent marketing is marketing that is first and foremost focused on a core idea, a “brand.” All your marketing must be an extension of this idea. It isn’t enough to have a better idea—you must have a focused strategy!

A complete marketing plan includes the following sections:
• Marketing Plan: Identifies the market and your strategy
• Creative Plan: Similar to the marketing plan, but is limited to the content of your marketing materials
• Media Plan: Sets forth and details your selected media weapons and media calendar

Your marketing plan identifies the market and your overall position strategy. Its length is up to you and depends on your organizational culture and the audience who will read and use your plan.

You should start with a one-paragraph statement. A simple marketing plan may include the following points:
• Strategy purpose
• Techniques to achieve this purpose
• Target market
• ?Marketing weapons
• Positioning - What are your competitors up to?
• Business identity
• Budget - Express these figures as a percentage of projected gross revenues.

Develop a Creative Plan. Marketing is not creative unless it sells.
Your creativity, however, should never detract from your product message. A creative strategy is similar to a marketing plan, but limited to marketing materials and directed solely at that content.
You can write this plan very simply:
• Creative message purpose
• Techniques to achieve that purpose
• Advertising mood, tone or personality

Plan and select the Media and weapon that best suit your product or service. Then you’re ready to schedule your marketing calendar. This will tell you whether you can use your selected marketing methods properly. It forces you to come to terms with the costs and realities of the media you selected.

In some cases, you may need a more in-depth marketing plan.
If so, you can structure your plan in the following format:

• Executive Summary: Highlights the main points of your plan.
• Challenges: Includes a brief description of the product that will be marketed and associated goals.
• Situation Analysis: Examines your company’s goals, culture, strengths, and weaknesses.
• Market Segmentation: Describes the segments of the market you are targeting and presents a detailed analysis of each objective.
• Selected Marketing Strategy: Discusses the decisions you have made regarding product, price, place, and promotion.
• Short and Long-Term Projections: Forecasts production, ROI, and risks, detailing appropriate strategies to manage negative outcomes.
• Conclusion: Ends with a wrap-up summarizing the main points and calls for buy-in from your reader.
• Appendix: Includes related documentation and a detailed bibliography.

If you include an excellent, well-thought out marketing plan in your business plan, you will provide a roadmap for yourself, and let any investors or lenders know that you have taken the task of marketing your business seriously.

Forex Investment Benefits

What are the advantages of FOREX investments?

§ We trade on the largest and most liquid market in the world.

Due to its size and diversity FOREX depends on political or economic circumstances of any particular country in a much less degree than other markets. The market on which the only asset is money has highest of all possible liquidities.

Foreign exchange trading volume is 50 times larger than the New York Stock Exchange. There are always buyers and sellers abound in currency market. Extremely high liquidity helps ensure price stability. We can always open or close any position at a fair market price any time we consider necessary.

§ Global nature of FOREX market allows traders to trade money 24 hours a day.

In a sense, foreign exchange market follows the sun around the globe. That gives FOREX money manager continuous market opportunities. There’s a chance of rapid price gapping against you, especially if there have been news while the markets are closed.

§ High leverage allows FOREX money manager to earn higher profits on lower initial investments.

Leverage is the ability for an investor to use various financial instruments (such as margin accounts) to increase the potential return on an investment. The maximum leverage for stocks is typically 2:1. FOREX trading allows you to use much larger ratios of leverage (up to 500:1 vs typical 2:1 for equities trading and 15:1 for futures trading) with your investments.

§ We have a freedom to trade in all market conditions: bear, bull or sideways.

We can short-sell a currency anytime we consider necessary. We don’t have to abide by uptick rule to wait for the price to go higher before we can sell, which results in a more efficient and instant order execution.

FOREX actually provides more freedom of action for speculative trading and gives much more flexibility. For instance, in case of CFDs we can hold short positions for only one month under the terms established by SEC. To hold the position beyond the month the fee will be incurred. Whereas for FOREX the short positions can be hold as long as margin requirements allow.

§ No third parties and middlemen –> lower costs for investors.

Because foreign exchange is decentralized, there’s no third party between trader and the market-maker responsible for the pricing on a particular currency pair. FOREX money manager doesn’t have to pay additional hidden fees and commissions.

Forex Money

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Forex Basics

Forex Basics



The following is an introduction to some of the basic terms and concepts used in forex trading.
Foreign Exchange : The simultaneous buying of one currency and selling of another.
Foreign Exchange Market : An informal network of trading relationships between the world's major banks and other market participants, sometimes referred to as the 'interbank' market. The foreign exchange market has no central clearinghouse or exchange, and is considered an over-the-counter (OTC) market.
Spot Market : Market for buying and selling currencies for settlement within two business days (the value date). USD/CAD = 1 day. Most dealers will automatically roll over your open positions, allowing you to hold a position for an indefinite period of time.
Rollover : The process whereby the settlement of a transaction is rolled forward to the next value date. The cost of this process is based on the interest rate differential between two currencies

trading System That Operate Automatically



The automation of forex trading has resulted in gaining in its popularity. Small and mid level investors are now getting into the foray of what was once only dominated by banks and other large financial institutions. This is the market where one currency is traded against currency of another country. With trillions of dollars being traded twenty four hours a day, it makes this one of the largest




Exchange Currency



Currency Exchange Rates Exchange Currency - Trading Foreign Currencies In the market of foreign exchange trading is always done in currency pairs, and Forex brokers around the world access money indices via currency converters and online platforms with rates given in real time. The value of major currencies changes continually, with investors hoping to make a profit from the purchase of stronger currencies. Trading between two non-dollar currencies occurs first by trading one against the US Dollar and then trading the US Dollar against the second non-dollar currency. Exchange rates are usually given as one u



Range Bound Market

Understanding Trending and Range Bound Markets


For many of you, your trading and investing career is just beginning, and for others like me, it has been going on for a long time. My career began during the greatest bull market of all time, from 1990 - 2001. That market taught me a very important lesson that I want to share with you. It will help you understand trending markets, range bound markets, and above all, help you to control your emotions.
If you have been watching the stock market at all since late 2007, you have seen a period of high prices followed by a severe sell-off during 2008 and 2009. Hopefully, you did not buy or hold any stocks during this time, but if you did, you should have learned a valuable lesson. This lesson is no different than the first time you touched a hot stove as a child after being told not to do so by your mother. Like that experience of getting burned, this experience will only be helpful for you if you remember it the next time prices are high and everyone is telling you they are going much higher. This lesson is the focus of today's piece. It is applicable to any market and time frame you choose to trade.

Styles Of Forex Dealers

Style of Traders


Through my years of trading, one thing I have found is that one strategy does not fit all. We all have different risk tolerances and monetary goals. One of my goals in each E-mini Futures class I teach is to show the students a strategy and have them take it home and use it as a foundational starting point for defining their own strategy. My style is to follow the trend and enter on pullbacks. You could call this style Intraday Swing trading. This works for me because it fits my personality, patience and discipline. I understand that trading is a business dealing in probabilities and that it takes a series of trades to make a trader, not just one or two trades. However, with that said, not everybody trades like me. Of course, that is a good thing because if we all traded alike then who would take the other side of our trades? So let's discuss some of the different trading styles and see which one fits you.

Position Trading


Position trading is the longest duration style of trading. This is usually done by Commercial traders in the Futures markets. The trades can last for months up to several years. Having very deep pockets (very well capitalized) is one of the requirements for this style. Many of the Commercials must use lines of credit with banks to sustain these positions. Position trading requires extreme patience and someone who does not excite easily. While holding these positions you could be buying while everybody else is selling. This is referred to as "scaling" into a position as opposed to "all in". While accumulating these positions the trader may also be hedging themselves until the move does start to go their way. One clue as to if you can Position trade is to look at your reactions when you have, say, $1,000 in profit. Are you ready to lock this profit in? Do you want to snug your stop up real close to the current market action so you don't give back much profit? Are you starting to see market signals against your position? If you feel any of these you probably would be a better Swing trader than Position trader. A consistently profitable Position trader will be looking for much, much larger profits before even considering exiting their position.

Using Stocks to Trade Forex


On Monday, October 13, 2008, the Dow Jones Industrial Average skyrocketed to its biggest point gain ever, a whopping 936 point move. The 11.1% gain was the biggest in percentage terms since 1933, and the fifth largest percentage gain in the history of the index. Similar moves were also seen on the S&P 500 and the NASDAQ, as the markets celebrated the end of capitalism as we know it. Now that the U.S. Treasury is buying bank stocks, I guess I should congratulate you, since you and I are now are the owners (through the use of our hard earned tax dollars) of stock in many of the nation's beleaguered financial institutions. Congrats, comrade!
The next morning, on Tuesday October 14, the markets were bidding up sharply again, after closing near their highs on the previous day's rally. A little bit of leftover euphoria if you will, but all was not well. If the government is now backing the banks, then why wasn't the TED Spread responding in kind by falling back to earth from its record levels? The TED spread measures the difference between the 3-month Libor and the 3-month Treasury bill, and is a key indicator of risk. The higher the TED spread, the greater the aversion to risk (for more information on the Ted Spread, click here)


Forex marketing has a strategy

Committed to the Markets of Forex


Many traders are seeking out assistance in their trading decisions from decision support tools we call technical indicators. While these are helpful, they are only to be used as support for our decision to buy where demand outstrips supply or to sell when supply overwhelms demand. We see this supply/demand imbalance on our charts as support and resistance. However, there is another useful data set that is independent of price that will give us clues as to the possible future of the markets. This data can be found in the Commitment of Traders report.
The Commitment of Traders (commonly referred to as the COT) report has been published by the Commodity Futures Trading Commission since 1962 and provides information on the open interest of futures contracts. The report can be found at www.cftc.gov and is published every Friday and contains the data from the previous Tuesday. A futures contract is a derivative which gets its value from an underlying asset. They are traded to either profit from future values of the asset or to hedge a position in the asset against a drop in price. The COT shows open interest in a multitude of commodity, currency, and stock index futures.

Forex marketing has a strategy


Forex marketing has a strategy that many traders overlook. The prime strategy, which many forex traders believe is the key to profiting in the forex industry is the buying low and selling high strategy. Unfortunately, these traders are wrong, since it is a key to loosing instead.Support in forex industry is when chronological value or pricing comes in from traders who “Buy.”The mission behind buying is to provide support for the forex market exchange, as well as to analyze, examine, experiment, investigate, etc, the markets in forex currencies and exchange. Each time the traders test forex, it authenticates support.Resistance becomes sizeable in the forex industry only when the levels of “resistance” is charted, i.e. at what time the levels of forex value, or pricing refuses to give in to jumping to a higher listing.For this reason, at what time forex traders venture on buying low and selling high, they are making a big mistake. Traders who delay in forex trading markets will often recoil, or retract at the time some of the biggest deals transpire in the forex industry.In short, the trends are what traders want to stay aware to, yet most traders will resist. Why, because the traders often feel uneasy at the times when other traders resisting buying and selling in forex.Now, if you want to get ahead in forex trading and use strategies to win, I recommend you to visit Forex Success Tips. There you will discover some magic to beat the forex.

Saturday, October 10, 2009

Success Forex Trading Tips


How To Become A Successful Forex Trader


Have you heard about the benefits of forex trading as a tool to create personal wealth?

Gone are the days when forex trading are meant for the "big guys" - institutions, big companies, banks and financial institutions. Today, the man-in-the-street can access facilities to trade in the privacy and comfort of his home! He can earn a living trading forex from the comfort of his own home.

If you are someone intending to be involved in forex trading, there is available a lot of help and assistance to get you started off. Let us consider 4 main guidelines that are important to you if you intend to make money as a forex trader.

Firstly, is forex trading for you?
Forex trading involves study and gaining skills to trade. Generally, a quick style of trading is needed for day trading of the forex. On the contrary, if you are someone who cannot spend too much time on the trading screen, then swing trading is envisaged. Both styles require you to spend time to study technical setups peculiar to these styles. Check your own risk profile. If you cannot tolerate risk that is opened for long periods, then day trading, which may involve trading within mere seconds or minutes is suitable for you.

Secondly, are you capitalized for trading forex?
With the advent of leverage, and min-forex, capital is no longer an issue in trading. Unless you are a swing trader, where you intend to open your trades for a longer period, you really do not need a very big amount of capital. This is more so because as a beginner to forex trading, you will start off small, and build up experience as you go along. Check with your brokers to comply with their levels of capital requirements, and check out the possibility of conducting mini forex trades.

Thirdly, are you going for a technical approach or a fundamental approach?
Most forex traders are technical traders. By this, they look at charts to spot any technical trading setup, and if prices have reached a certain level they would buy or sell as the case might be. Charts feature a lot on their trading systems. There are those who adopt trading signals based on fundamentals. This will include the news release, reports of economic trends, treasury news and so on. There are those who blend their technical systems together with news releases as well. No matter whatever approach you use, make sure you identify properly the proven profitable trading setups and concentrate on trading these until you are an expert.

Fourthly, be aware that forex trading can be a most exciting career move - you can earn a living trading forex online. Much as the rewards can be great, there is a learning curve to follow. You can accelerate your learning skills by following a structured course of learning forex or getting a mentor who is willing to show you his secrets and pass on knowledge of his techniques.

So be prepared to learn, spend time to paper trade your trading systems until trading is second nature to you and until you become a consistent winner even during simulated trades. Until you find that confidence and high win-loss ratio, continue to paper trade.

By following these 4 guidelines, you have the best chances to become a profitable forex trader.

How Long Does It Takes For You To Become A Successful Forex Trader?

Most people approach the need to learn forex trading with a measure of trepidation or fear of the unknown. For those who are undergoing a period of self education and instruction by gathering relevant training materials and tools, and practising new skills in the comfort of home, one common question of the unknown would usually linger in their minds : "Would my self learning be sufficient to make me a successful forex trader?". For those who have chosen to learn under a mentor, a common question is this: "Will the mentor reveal all his secrets to me so that I, as the understudy, can trade successfully on my own?"

Indeed, when will a novice trader be able to know exactly the timing of his metamorphosis from a learner to a skilled trader, and so that he can proceed to trade on his own?

There are some who believe learning to forex trade is an effort that spans an entire life. This group of people believes that learning and education never stops. A forex trader reacts to the news, and to his setups, and trading is always different every day. To this group, learning is a lifelong process. They would look at their trades daily, analyse them to see what made certain trades work, and why certain trades were failures. In this manner, they are able to extract good lessons out of bad trades, and would become wiser, never to repeat these mistakes again.

The main difficulty for this group of new traders is finding the most appropiate time for them to say, " I have learnt enough, and it is time for me to go into the battle field and to fight the good fight of the faith. I will start to trade!"

Speaking from the viewpoint of a trading coach and a professional trader, here are two suggestions.

Firstly, maintain a trading log even when you are learning to trade. This trading log will serves as your trading diary in which you record all your trades, even during the times of learning which may involve your paper trading or your testing of certain forex trading strategies. Record your personal experiences - why a simulated trade was taken, what was the prescribed action you should take based on the trade setup, and what was the outcome. In this way, you will be able to document and record your experiences, and be able to gain a high degree of confidence from seeing repeated results from taking certain stipulated action arising from similar trade setups.

Secondly, you can adopt a cut-off point where you can start to trade on your own when after a period of paper trading, you find you are consistently having a higher win-loss ratio. In other words, when you find there are more winners than losers in your simulated trades and this is repeated consistently as recorded in your trading log or diary, you can consider moving out to trade on your own.

Needless to say, in whatever self study, it is of the greatest importance that you find the most effective trading strategies and systems, and master not only the trade setups, but also your trading psychology, and be able to pull the trigger to trade. Learn from real traders, who are able to pass on their skills to you. You are there to trade, and convert the head knowledge into real trading skills.
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