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Forex Trading Articles

10 Factors You Must Understand Before You Opt In For An ECN Account

There are two basic types of brokers in forex market; one is the market makers and the other is ECN Broker. ECN stands for Electronic Communication Network. In simple words ECN is a financial expert who provide a direct route to its customers so that they can interact with other market participants. ECN is a type of computer software that facilitates the trading outside the market so ECN broker only acts as a middle man between your trades, not as market maker.

We are sharing some advantages and disadvantages of using an ECN broker. These points will help you in taking right decision in choosing a forex broker.

Advantages of using an ECN broker:

By using an ECN broker you can claim a number of benefits such as:

Privacy of your trades:

The role of an ECN broker in trades is only as a middleman. So when you make a trade on ECN network, you are completely secured and you account cannot be distinguished and not traced. You can protect your trade strategy by using an ECN broker because you are using the name of broker for your trades.

You are your own market maker:

You are autonomous to set your trade limits and spreads by using an ECN broker. The ECN will match your bid with the other participants and through this you can gain some extra pips. There are no restrictions and limitations about placing and canceling an order. In this way you can perform as your own market maker.

Continuous trading:

ECN provide you the liberty to trade during news and events. Continuous trading increase the price volatility and at ECN, trading always remain continuous, so you can get the benefit of price volatility.

Enhance the execution of orders:

Always keep it in mind that you are trading with ECN actually you are placing your order by using ECN. The ECN is only matching your order with the other market participant on the ECN as quickly as possible. With the help of ECN, you can easily compare your orders and also check the best price level of a currency pair offered in the market. Through this you can improve the execution of your orders.

Price volatility:

In ECN prices are not constant and change can occur too quickly. Quick changes increase the price volatility. In this situation the scalpers and the short term traders can quickly claims large profits. ECN brokers are fit for scalpers.

Greater liquidity:

ECN has eliminated the geographical distances, now different parties can trade across the world without any geographical limits. This leads to greater liquidity (i.e. there are more buyers and sellers) which increases the efficiency of the markets.

Disadvantages:

Few negative point of using an ECN brokers are:

Commission:

ECN charged commission on every trade. Sometimes due to low spread the traders have to bear loss because their earning is less than the commission they paid.

High capital:

ECN allows you to act as a market maker. High capital is needed to influence the market parameters. ECN is not a perfect place for small investors and traders.

Corrupt market makers:

Every person is acting as his market maker on ECN. So there are chances that some dishonest persons can easily influence the market by introducing a great volume of trade. Some people are also giving deceive to others by showing them the ECN broker but in fact they are not.

Conclusion:

An ECN forex broker is a financial expert who acts as middle man between buyer and seller in their trade. The advantages of using ECN forex brokers are low spread, greater volatility and high privacy. But the disadvantages attach with it are high capital and commission. Have a look at your trading strategies and financial status, then choose properly.

Forex Trading Articles

Mobile Trading With Metatrader

Trading in the financial market has been growing over the years. With its growing popularity, the technology also has evolved. Forex brokers and traders now have a multitude of choices of trading devices or forex trading platforms to choose from. There are now options that allow you to stay connected and managed your trading accounts even while on the move. This is tremendously convenient since it enables you to access your accounts anywhere and anytime without being tied to your desk. You can now manage your accounts from handy devices like cell phones and PDA’s.

One of the ways to stay connected is mobile trading through MetaTrader 4 Mobile. Installing MetaTrader 4 Mobile on your cell phone or PDA terminal lets you access your trade account, control open positions, current quotes. It would also allow you to place, delete and change orders. The MetaTrader 4 Mobile is similar to the full function MetaTrader 4 trading terminal. This means you could engage in forex trading and in trading in other financial markets while on the go.

Here are some of MetaTrader 4 Mobile’s features:

1) Full management of all your trade accounts.

2) You can take it everywhere with you, therefore you can work from any location in the world.

3) It has over 30 technical indicators giving you a chance to undertake technical analysis, view the history of completed trades and more.

4) You can place, change or delete all types of orders.

5) MetaTrader 4 Mobile ensures, you will never miss anything with their alerts system. Therefore, there is no need to constantly check your computer or phone for any changes in the market.

6) It gives you access to financial market news critical to any trade deal.

7) Has VGA mode support. This allows you see a clear view of all information on the PDA (personal digital assistant) display at 640×480.

MetaTrader 4 Mobile offers a hassle free and safe trading right on the palm of your hands. You are guaranteed that the completion of each transaction you make is treated with strict confidentiality and ensure that it is absolutely secure. It also has multi lingual support that allows you to switch between languages. MetaTrader 4 Mobile is great alternative to managing your accounts twenty-four hours a day, the great thing about it is that it allows you to do all this without being tied to your computer.

Forex Trading Articles

Discipline & Patience-Prequisites For A Forex Trader

There are 2 qualities that separate amateur forex traders from the professionals: discipline and patience.

Beoming successful at trading is all about finding an edge and maintaining that edge. For example, you spend countless hours to finally discover a trading strategy with a 75% win rate and 1:1 risk/reward ratio. You are confident that your strategy works. Now you must exercise discipline and patience.

Without patience you will not wait for your chosen setup to occur and will take other trade setups in the meantime. Now you are not exercising your 75% edge as you are taking “random trades”.

Without discipline you may take your setup and times of the day when there is not enough volatility in the market, on bank holidays, before major news announcements, etc. Again you are not excercising the edge that you have found.

Professional traders have a high degree of patience and discipline and are totally ok if no “A+” setups come for a couple days, they will wait for the very best setup. Amateur traders on the other hand have very little patience and can’t stand to not be in a trade.

Many people get involved with Forex trading because it is exciting. This becomes a curse because often trading is actually very boring. You should find your excitement somewhere else in your life and approach Forex trading with a business mindset, not as a thrillseeker.

Another place where discipline is very important is with your risk management. Professional traders may risk 1-2% on each trade with great consistency. Amateur traders may start off with 1-2% risk but then after a couple losses will often raise the stakes to 4-5% risk. Then comes the inevitable losing streak and the emotional pain of losing 15-20% or more of your account in a single day.

If you have been trading like an amateur, it’s time to take a lesson from the pros and step up your game.

Market Analysis

Effects of Application Tracking System in Mobile Telephone Technology

Application tracking solutions have become an important channel for companies to track and carry out market research. Nowadays many companies are utilizing mobile phone devices as their primary means of data collection or respondent participation and this has made it faster to carry out research on current market trends. Application tracking systems are one of the techniques used by mobile phone survey companies to carry out their data collection. The popularity of the technique is growing as more and more people get connected through mobile phones.

Application tracking solutions have greatly emerged as the preferred tool of communication between various market research companies and their intended target which is the consumers. This is mainly because of the speed and relative ease of carrying out mobile phone research. There are many Application tracking system providers and it is now easier to find them thorough the internet. Mobile phone market research has overtaken online surveys as the preferred means of conducting research. This has been brought about by the fact that most people own mobile phones and that not all the mobile phone owners have access to internet. The immediate response that comes with use of the mobile phone to carry out research has also contributed to the success of this market analysis tool.

There has been a transition of the capabilities that were once only available on the internet to the mobile phone and this realization has not been lost to market researchers. The use of application tracking systems to carry out research is richer in terms of gathering information than the simple two-way text message. Application tracking solutions are used by product and service providers to get information on the general market response to what they have to offer. The fact that there are three times as many mobile phone subscriptions than there are internet connections points to the unlimited wealth of information and untapped potential of this market research tool.

The mobile phone is supported by a global network infrastructure that can deliver massive volumes of traffic seamlessly and this means that market researchers can reach as many people as they want and be able to access a huge wealth of information. Application tracking solutions bridge the gap between market researchers with the intended target i.e. the consumers who have mobile phone subscriptions. The use of application tracking systems provides researchers with a simple, fast, reliable and unobtrusive means of gathering market information.

Mobile phone application tracking systems have unlimited potential as market research tools and their use is expected to grow by leaps and bounds in the coming years. There are many companies which offer application tracking solutions and therefore customers can choose the ones which best suit their needs.

General Forex

Fx Signals – The Beginner’s Guide To Forex Signals

Due to the incredibly fast movements of the forex market, pretty much all traders would be lost without fundamental or technical analysis. In simple definitions, fundamental analysis trading is trading according to what is going on in the economy as a whole while technical trading is going off of what the calculated indicators on the chart are suggesting. Each style has its pros and cons but most experts would recommend a combination of both. That is because regardless of which style a trader prefers, watching for forex signals and staying up to date with live forex news is invaluable.

Why People Use Analysis

Whether an individual favors fundamental or technical analysis, it is important for investors to use indicators when they trade as well as to stay in tune to the forex daily news. The reason for this is that it is impossible to make regular income through the foreign exchange without a strategy. Analysis allows people to trade based on what the market is doing.

The Benefits

Although it might be hard to believe, there is always a reason with market movements. Though to some it might look like every trade has a 50/50 chance of working out,those who use forex signals know better. Performing basic analysis can be the difference between a trader who is taking smart and calculated risks and a gambler.

Where Problems Come Up

That being said, it takes time to learn how to use foreign signals to your advantage. Those who are just learning are more likely to misread the charts or misinterpret what the news cycle actually means to the market but even experienced traders are not immune to making mistakes. The best way to ensure that you know how to read the charts is to practice a while before using real money.

Getting Started

If you are interested in learning how to use forex signals, there are a couple of things you need to do. First, it is a good idea to read and learn about the type of analysis you are going to primarily use. You cannot apply these techniques to your trades if you are still unsure about what different things mean. Secondly, it is never too early to start looking for a broker. Open several practice accounts and refine your strategy. You will never regret it.

No winning trader gets into the forex without a plan. By looking at various combinations of forex signals, it is possible for an individual to know what is most likely going to happen next on the market. Although the movements of the foreign exchange can look random, nothing ever happens without a cause.