Category Archives: General Forex

General Forex

3 Reasons to Choose Forex Trading

Leave a comment

The foreign exchange presents huge opportunity to everyone to make money by working from home. If you are looking for a business to invest to generate residual income, then you should consider forex trading seriously. Here are some of the reasons that would make your decision easy.

1. Forex trading is easy. No matter what you hear from the others, if you work the right way and follow the basics, you are going to make money from this business. You may get discouraged after reading that most of the traders fail to make any money from this business. However, such reports do not enclose the reasons for the failure. If you look carefully, you will notice that only those traders who do not follow the basics end up losing money in this business.

2. Foreign exchange trade is for everyone. No matter what your qualifications are, you are perfect fit for this business. You only determination and ‘will to learn’ to take control of this business. If you think that you have these two characteristics, then you can invest in this business without worrying about your previous profession or education. As a matter of fact, most of the traders start with no experience at all. They do not even know a single thing about foreign exchange and end up making lot of money from currency trade.

3. The startup costs for this business are extremely low. You can start with as little as $250 with most of the brokers. You do not need a lot of money to enter the business. Once you have learned the basics and have started making money, you can invest more money. Moreover, you only need a computer and internet connection to start trading. Once, you have made enough money from this business, you can spend it to make your life easier by buying tools and programs.

General Forex

Signs of a dishonest Forex Broker

Leave a comment

Forex brokers if not chosen wisely turn out to be dishonest in context to rash sales or sell points that are close to preset. You need to be able to track such behavior so as to recognize a bad forex broker from a good one.

For starters one can approach fellow traders or conduct a little research through the internet. There’s no official declaration that will condone a shady forex broker and make things much easier for you. However, there are online forums threaded by users who discuss these issues and here you get to pick up on a lot of useful tips. Talking to people who have availed the services of various brokers also helps you develop an idea of traits of a dishonest forex broker that one should watch out for.

Following are some clues to the same:

  • When a forex broker says he follows firm marginal stipulations, you should also watch them being executed. The forex broker should be upfront with you and analyze the kind of ris ks you will be able to afford. Once you sign an agreement you agree to the margin set. Beyond this the buying and selling is executed by the broker.
  • Based on the liquidity of the foreign exchange market, brokers recommend certain variable spreads. These policies aren’t so easy to grasp and can vary from broker to broker. On the other hand some forex brokers have fixed spreads irrespective of the market scenario at all times. Suck brokers turn out to be more reliable than others.
  • Another misdemeanor to watch out for is a broker who formulates his spreads in accordance to his client’s account type. Such clients are no doubt at the receiving end of wider spreads. Larger the financial trade or the account for that matter, tighter is the spreads.
  • It is always advisable to see policies in print rather than have it orally relayed to you by the forex broker. Many traders are initially convinced by the promises made but later learn to regret it.
  • If a broker’s service isn’t inclusive of customer care support then its best you bid him goodbye. Novice traders in particular should ensure that the forex broker offers them complete assistance in both understanding and executing the dealings.

A strong support system in the shape of your forex broker makes a lot of difference in your entire trading affair.

General Forex

Introduction to Forex Arbitrage

Leave a comment

In order to understand what Forex arbitrage is, it is important to understand what each terms mean. Forex refers to the foreign exchange market, where global currencies are exchanged between individuals or corporations. This exchange is achieved with the help of a bank or brokerage through special accounts. Arbitrage, on the other hand, would refer to buying a commodity at a certain price in one market with the intention to have it resold at a higher price at a different market. In this situation, there will be no added value of the commodity by the trader.

When it comes to arbitrage in the Forex market, a currency is bought from one market with the understanding that it can be sold at a different market at a higher price. Such price differences tend to last only a short while as currencies all over the world gradually makes adaptations to correct each currency to one another to its newest state, just like a set of toppling dominos.

There are basically two types of Forex arbitrage opportunities that you can find. The first one is where multiple trading accounts are used. With this, a trader can take advantage of the difference in currencies each brokerage is offering. A second type of opportunity looks at the use of three different currencies. Each currency is first evaluated as a pair for their difference, and then compared with the other pairs. Sometimes, you will be able to see some difference in one currency’s cost as compared to the other two’s this way. This way, a trader can evaluate which gap is the best opportunity to make use of.

There are software programs available to monitor the market while identifying which trades are most profitable. With such program, the traders will be able to spend less time on trades that are not so profitable as the program can be automated to notify them when a certain set of trades appear profitable. Find the right program to use for the Forex arbitrage and you will reap profits in no time.

General Forex

Online Video And Social Networking- Build Customer Loyalty

Leave a comment

With ever increasing competition in the world of online competition, businesses now need to keep a tab on their activities and create much of awareness about their presence with carrying out various promotion campaigns in the market. Also, there is a higher need to focus on building customer loyalty with the online clientele. The result would be that visitors would turn loyal to your brand and thus your sales volume would boost as well.

Creation and distribution of Videos- Creating a video and then distributing it via numerous channels could work as a very useful channel in increasing the popularity and awareness about your firm. A lot could be effectively communicated through a video regarding the products manufactured by your company and the services rendered by you. There are certain regions in trading where videos could fetch better results and offer more benefits. It is not just entertainment sector but many other sectors too which could use videos as a means of conveying messages to people. For online audience, preparing video content is quite a job and since there is a myriad of messages so it is to be adeptly managed. Human psychology has a bend towards something that is stimulating enough, and compels human mind to think about what it sees so that it tries comprehending the message given. Videos are surely watched by a majority of people and thus it improves the chances of sales. Videos involve all human senses, which means that the brain gathers more information and when people are informed about your products then they are likely to show interest in it.

In order to increase the longevity of videos, you’d need managing videos via a third-party site, also in conjunction with various other brands. However the drawback of this particular method is related advertising and content. It is advised that the content in videos is made keeping in mind the needs and expectations of customers so that you can get the best response. With time, just like in articles or web, the content needs updating, and in videos too the similar practice is applicable. Apart from this, email marketing is also a strategy used for product promotions.

General Forex

Stock Market Technical Analysis-Trend Following Can Mean Big Profits

Leave a comment

One of the reasons technical analysis works, is because stock prices do tend to move in a particular direction for quite some period of time. This direction can be up, down, or sideways. Newton’s first law of motion applies to this quite well. It states there is a natural tendency for objects to continue in the same direction. Momentum is another word to describe this phenomenon.

The most important tool in stock market technical analysis is the trend line. When a stock is following along a trend line, it will have a tendency to continue moving along that line. Properly analyzing this line will give you the ability to spot a trend. At this point, you will have an immediate edge over a majority of participants in the market. Putting as many factors as possible in your favor before taking a position in the stock market, is crucial to long-term success.

Marketwise, an uptrend is identified by a series of successive higher highs and higher lows. A downtrend is a series of successive lower highs and lower lows. Spotting an uptrend using a trend line involves drawing and connecting at least 3 lower points along the line. A downtrend line is drawn by connecting at least 3 higher points. In a sideways trend, both upper and lower points are pretty much parallel, straight horizontal lines.

The longer a stock has been moving in a trend, or inside a parallel channel, the stronger this trend most likely will be. On a breakout from a price channel, you want to see a major increase in volume. This helps to confirm the breakout as most likely being successful. Trends on a weekly or monthly chart, generally are more reliable than trends on charts of shorter durations.

My next article on stock market technical analysis will be about volume. Volume is a key factor, and analyzing it properly can be worth a fortune. Volume tells you what big institutions such as mutual funds, pension funds, hedge funds, and other big stock market participants are doing.