Tips for global FOREX trading

You’ve decided to become a trader on the Forex market but since you’ve never played on the currency market you aren’t sure where to start. Not to worry – we’ve got some great tips for global Forex trading,Forex is the foreign exchange market where currencies are bought and sold. It began back in the 1970’s with the introduction of free exchange rates and floating currencies. Thanks to the internet more and more people are able to reap the profits of the currency market with global Forex trading.This is a market that trades as over US$1 trillion a day. It trades more than any other market. There are some distinct differences in the currency market compared to the stock market. Money moves much faster so no single investor has the ability to actually affect market price and trades are able to open and close within seconds which is not possible on the stock market.To start your global Forex trading you need to open a Forex account. Just fill in the application and the sign the margin agreement which let’s the broker intervene at any time. That makes sense since it’s the broker’s money that just makes sense.You need to choose a trading strategy that works for you. Different strategies work for different traders to don’t try to makes something work, instead find the right trading strategy for you.It’s important to understand that trends move prices so a smart investor will make trends their friend and even go so far as to examine historical trends.The top five currency pairs are USD/Yen, Euro/Yen, Swiss franc/USD, Pound USD/ and the Euro/USD. Make sure you know and understand them.Examine the charts at 1 hour, 4 hour, and daily. This will give you the daily trends and plenty of opportunity to trade. Sure you can trade every 15 minutes if you like but that’s not really practical.Now that you’ve got all your global Forex trading tips you’re ready to see some profits.

The Game of FOREX Trading

Speculating on the price of one currency in relation to another (also called trading the Forex Trading spot market) is like betting on a game; in the Forex market, the game is between the bulls, who want to pull prices up, and the bears, who want to pull prices down. The most successful trader in forex trading will not put himself in the middle of that game just as you or I would not go onto the field in the middle of a professional football game (unless, of course, you happen to be a professional football player). Instead, the successful trader will stand above the game for the best view and the best chance to bet on the team with the winning play. With over one and a half trillion dollars traded each day in the Forex market, it is highly unlikely that any individual trader like you or I would be able to influence the outcome of the game between the bulls and the bears - so we do not try; instead, we try to take our best, informed, educated guess at who will win a given play, and we bet on it - we speculate.The fact that we are not actually able to influence the outcome of the Forex trading game, that we are simply speculating - betting - on it, is very important to remember, because it means that what matters to us is not so much who has a better quarterback, or whose coach makes better plays. Instead, what matters is what other people think.Which team are other traders going to bet on? The bulls may be superior in a certain play but if everyone bets that the bears will win, then . .. the bears win.So trading the Forex is not nearly as much about picking the strongest currency, identifying which country's particular economic, social, and political situations make its currency the best buy that day. Trading the Forex market is about foreseeing which currency the crowd will pick, picking it before they do, and being right.

How do I get started in FOREX ?

Do you see the profit potential in trading currencies, but learning to trade just seems too daunting? Have you watched with excitement the recent crashing of the value of the USD, but simply don’t know how to get started trading?While it is simple to begin trading Forex online, maintaining profitability in the long term is no easy task. You have probably heard that 90% of Forex traders lose their money in the long term. If indeed this is true, it is the result of a couple of different factors.1. Overtrading: Each trade costs you a couple of pips—Consider your trades well before you make them. Each faulty trade, even if exited quickly, drains equity.2. Bad money management: One bad trade can wipe out a year of patient, smart trading. Manage your risk using stop loss orders, so that you never risk too high a percentage of your equity on any one single trade.3. Lack of knowledge: If you have never traded Forex before, educate yourself! Successful traders are not born that way. The difference between success and failure in the Forex market depends in no small part on the knowledge and education of a trader. For the beginning trader, a proper education is essential before investing in the Foreign Exchange. Find a program you are comfortable with, and begin practicing on a demo account.Trading on the foreign exchange offers unparalleled opportunities for profit, but it is also extremely risky. Make sure you know what you are getting into before you start trading, and start trading only when you are comfortable in your knowledge and ability.

FOREX Scalping

Forex scalping is a trading strategy in which the trader makes dozens or even hundreds of trades daily, looking to capture a few pips per trade. Generally, scalpers stay in trades for less than a minute, bolting as soon as their position captures a few pips.Brokers do not look kindly upon scalpers, as many times scalpers will exit a position before the dealing desk has time to deal your order. This means that the brokerage has to eat the position—a successful scalper will consistently earn money—money that comes directly from the brokerage’s pocket.To avoid this conflict of interest between scalpers and the brokerages, scalpers often trade with electronic communication network (ECN) brokerages, which circumvent the dealing desk allowing online traders to trade directly with one another. ECN brokerages usually have less liquidity than traditional dealing desk brokerages and charge a per trade commission, but their pip spreads are narrower.To be a successful online Forex scalper, traders must follow strict risk management rules. Because the scalper grabs only a couple of pips at a time, one big loss can wipe out dozens and dozens of careful, meticulous trading. Traders should be sure to use stop loss orders, ensuring that the profit/loss margin on each trade is very small.

FOREX Brokers

There is one important thing you will need to do before you start your Forex trading career. This is, you will need to set up an account with what is known in the trading world as a Forex Broker. Once you start your search for the perfect broker, you may feel there are too many of them who offer their services online. Deciding on a broker requires a little bit of research on your part. Experience and reputation are two good starting places for the selection process. do as much research as possible and ask in online forums for anyone who may have a first hand knowledge of the company.A forex broker is an individual or a company that buys and sells the orders placed by the trader according to his decisions. The way brokers earn money is by charging a commission or a fee for their services.You must consider that a serious forex broker will need to be associated with a large financial institution such as a bank in order to provide the amount of funds necessary for what is known as margin trading. In the United States a broker must be registered as a Futures Commission Merchant (FCM) and also with the Commodity Futures Trading Commission (CFTC). These credentials will ensure you have peace of mind, knowing that you have protection against any case of fraud and abusive trade practices.What you’ll always want will be to find a broker who executes orders quickly and with minimum slippage. All reputable online forex brokers will offer automatic execution once you place your orders and will let you know their policies regarding slippage. A good broker should be able to tell you how much slippage can be expected in both normal and volatile markets.You should always be skeptical when looking for a good forex broker. Always examine any suspicious claims made about high returns and low margins, especially if the broker company is vague about the risk involved in the transactions and are unwilling or unable to disclose financial information on the strength of their company. Low margins may sound competitive, but in reality this is because the broker is speculating against you and relying on the low margin to stop out your gains.

Forex Currency Trading – What’s It All About ?

These days we hear all kinds of buzz words when it comes to working at home opportunities. But Forex currency trading is definitely a buzz you need to pay attention to. So what’s it all about?There are many reasons that Forex currency trading an excellent way to enter the capital markets. Thanks to the internet Forex has become very accessible, and because the cost of transactions is low and there are no commissions anyone can get involved in this great opportunity to make money.As with anything there are good and bad so you need to look for a good Forex broker because they will provide you with a trading account that offers what we just talked about. Some even offer what’s called Mini Forex Traders in which you can begin trading with only $250 capital. Now you have no excuse why not to give it a try?When you are trading in the Forex markets online there’s no need to concern yourself with any of the usual broker fees and there’s no NFA or SEC fees.Wondering how the Forex brokers can make money when they are not charging any fees when you trade? They make their money on the bid/ask spread. Good for them and good for you.Once you decide to learn how to trade on the Forex currency trading market. Like with anything the more practice the better you will become and before long you will be a real Forex trading pro enjoying those profits.But no one wants to practice and learn by playing with their own money which is why there are many several creative Forex trading simulations online. Just like the real thing with one thing missing – your real money.When you’re confident in your skill level flip to the real Forex currency trading and enjoy that adrenaline rush when you reap those big profits.

How To Choose The Right Forex Trading System For You ?

When it comes to trading systems that you can use to trade on the Forex market you have plenty of options but it’s very important to choose the right Forex trading system for you.Some may find fundamental factors easier to take while others will do better with technical indicators. Everyone is different and which system isn’t important – what is important is matching individual to system. So how do you find the right system?Well it starts with you understanding the methods of analysis that are used when you are trading on the Forex currency market. When you know what the tools are and how to use them you can analyze what is best for you.Some of the most popular technical analysis tools include pivot points, Fibonacci retraces, chart patterns, candlestick patterns, trade balances, interest rates, and GDP which stands for gross domestic product.You will need to determine the profitability of the Forex trading system you are considering choosing. Use a real time demo to determine how profitable a trading system is. This lets you begin to understand what the system’s capabilities are and it also let’s you become familiar with the trading platform.Next you need to have a look at the expectancy which tells you what type of profits you expect to make over a period of time. You calculate expectancy using this simple formula:(Probability of winning × average win) – (Probability of losing × average loss) = the average profit per trade. If this number is a negative number you need to look at a different Forex trading system. Of course the higher the number the better the profits you can expect.You should also examine the opportunity factor which is just how often you can expect to trade using the trading system. You multiply your expectancy figure with the opportunity factor and it tells you how much you can expect to profit during a specific time period. The more opportunity the more profit you can expect to put in your pocket.Now that you know how to choose the right Forex trading system for you to reap the most profitability.