Tag Archives: forex

General Forex

Get One Step Ahead With Forex Training

Learning to trade Forex is a great way to replace your job or earn a little money in your free time. Forex is not a get rich quick scheme so you should not go into your trading career thinking in this way. Yes, you can earn money rather easily, but Forex does have a learning curve which will take some time, so make sure that you get some training as you are starting out.

There are many Forex training courses that will help you to learn the ropes of trading currencies. Once you have selected one to use, stick with it and follow the teaching methods. Too many people fail because they switch from one Forex training course to another and never stick with it long enough to reap the benefits. Here are three tips to help you as you learn more about trading.

1. Study and make trades consistently. You aren’t going to learn the ins and outs of the foreign exchange markets by just trading whenever the mood strikes or whenever you have free time. If you are determined to be successful at Forex trading then you’ll need to set a goal to make three trades a week or to study your Forex training course for an hour every night. As with anything, set a reasonable goal so that you set yourself up for success.

2. Spend time learning each strategy and charting pattern before going to the next. There are many strategies to learn about when learning to trade Forex in addition to multiple ways of charting the data. To be able to make the best decisions in your trading, aim to have a full understanding of each one before moving onto the next one. Fibonacci Retracement patterns may take you longer to learn than the Japanese Candlesticks; that’s okay, it’s not a rush to get through your Forex training. You want to take it all in so that you minimize your risk and losses.

3. Remember that Forex trading is part knowledge and part art. Basically you are making educated guesses when you trade currencies. Once you have some basic Forex education, you’ll need to use your mind and gut feelings to make your moves. You can see all of the data from the past laid out in front of you on your computer screen, but you’re making a prediction as to whether the market will go up or down. Expect some losses in the beginning, so start with small scale trades, but with education and practice you’ll get the hang of making profitable trades.

In anything you do, you’ll get better results by following a training course rather than just trying to learn on your own since you’ll be given specific topics to study. Additionally, look for a mentor, either someone that you already know or that you’ve gotten to know online, so that you can ask questions and learn from them.

Market Analysis

Forex And The Evolution of Direct Market Access

The Forex market is a decentralized market which has been historically fragmented. This has resulted in inconsistent trade execution on the part of most brokers since they operate in various capacities. Direct Market Access (DMA) now enables traders to transact their orders directly with sources of liquidity or primarily Interbank participants.

A Forex DMA broker acts in an agency capacity as opposed to being a market maker. The complete transparency of a Forex DMA offers many benefits:

Forex DMA orders are only based on two variables – (1) Price and (2) the time that the order is placed. The result is efficient execution where requotes are rare regardless of the market conditions.

Forex DMA pricing is based on institutional standards of 1/10th of a pip pricing as opposed to ½ or 1 pip pricing. Retail brokers typically quote using ½ to 1 pip to capture the difference in their favor.

Forex DMA brokers also offer trading anonymity which gives the trader a level playing field.

Unlike traditional brokers that offer fixed spreads, a Forex DMA broker offers variable pricing that reflects the true market conditions in the Interbank Forex market. Brokers that offer fixed spreads are most likely acting in the capacity of a market maker and taking the risk on the client orders. While this is not inherently negative, it reduces transparency and calls into question the order handling process. DMA brokers eliminates this concern.

Until recently, DMA trading has only been available for larger institutions and hedge funds. With a vast improvement in trading technology, DMA can now be accessed by the trading public through the DMA brokers.

Forex DMA via Currenex is offered by Divisa FX which acts in an agency capacity to channel customer orders to 11 top tier banks within the Interbank market.

General Forex

Learn About Forex Robots

Forex trading has not been unknown to the small time investors. It has gained popularity with all the media attention. It has been an alternative for those who do not want to invest in mutual funds or share markets. But, some are still hesitant because of their inexperience in this line. Forex Robots have come up with a solution.

In a condition where the government cannot assure financial safety, it is not abnormal to secure the little extra money in the hands of banks. But banks do not give very favorable returns. In such situation alternative form of investment should be secured. Yet, according to the data available Forex is where money is lost. This is solely because money is not handled properly by the investors themselves.

Here emerges the role of Forex robots. Though, companies have also provided other options as Forex managed accounts, there are people who do not like this idea. This happens due to the involvement of other people in handling the accounts. People do not like to leave their money into others’ hands. Forex robots here act as a solution. It is nothing but a software that can handle transaction of currencies at a favorable time.

The reasons are many about which matters can be argued regarding the loss of money in Forex. But, majority will agree that a skip of the track of the ups and downs of the market is main reason. People actually do not get the time to keep on looking at the data and statistics to ensure when to sell the bought currencies or vice versa. This work is done by the Forex robot because it is equipped with such programs. It can make out what is going on in the market for the day and indicate the best time of transaction.

It is also necessary to mention here that Forex robots are not only tools that are lent in the market for tricking people to join the company. It is software that is used by many big brokering companies to keep there accounts managed. It is Understood that fraud and cheating is not involved as big companies do not rely on anything which can harm their business.

It is also worth mentioning that the initial investment in Forex robot managed accounts is higher than the individual investment done at the market. People can get examples that only a little sum as $25 has brought a turn over of hundreds. But, that example is rare. Statistics confirm that 95% individual investors have lost their money. It is always better to avoid such loses when an initial huge investment can bring that ever desired extra money.

Forex market is a liquid market. The values of currencies keep changing. The market has tendency to give lesser profit. Yet, huge sums do not come from investing securely such as in banks. Little risky people have always remained profitable. With software to mange accounts, this is yet more profitable.

General Forex

Advice For Those Who Are New To The Forex Market

Forex allows investors to trade several currency pairs. They do this by simultaneously selling and buying the pairs. The forex market is not centralized, but follows time zones, beginning in Sydney, moving to Tokyo, then London and finally New York. Thus, the market is available around the world 24 hours daily. The market is closed on weekends. Profit is made in this market by trading and the differences between the two currency prices.

The forex market was formed in the 70s and today has an average turnover of 3.2 trillion dollars daily. Participants in the market should know a few things about sales here. Forex trading is an investment and cannot be considered as traditional sources of income. In the past, the market was dominated by banks, including investment, commercial and central banks. As the market has developed, it now includes several multinational businesses, authorized dealers, global money managers, futures, international financial brokers and individual investors. There are many available platforms for trading forex, some are provided by big investment banks. It is important to understand the terminology used and to have a well planned strategy for trading. In addition, it is important to understand the types of analysis regarding current prices. The technical analysis differs from the fundamental analysis. Forex currently offers over fifty currencies, each representing a brand such as gold, gas or oil. To learn more, one needs to consult the Forex forums to see what those who have traded on the market for a long time have to offer as useful advice to the beginners in need of more information.

Currency rates fluctuate and are determined by supply and demand. External factors, including economic development often influence the market. International news can change the thinking of the market and impact the profit to be made, as it can any market. The external factors are often discussed in the Forex forums as well as in the media. Currencies that are most often traded include those from countries having low inflation, strong banks and stable governments. These include the US Dollar, British Pound, Japanese Yen and the Euro. As with other investments, currency trading offers the potential for both earnings and loss. Without good knowledge, an investor might lose all his or her money. However, tools help to lower the risk. Among these are the take profits, stop loss, OCD, and IF-Than. Orders for this market can be placed on the internet and are available to traders. These tools can be used with different tactics, which take into account technical factors including the principles of the Economy to help lower the risk of great losses when investing in the Forex market. Before starting to invest, take time to research the market to see if Forex investing is the right choice for you.

General Forex

Three Main Points in Forex

These pivot points are used in foreign exchange since long time even before the invention of computers and was originally used by floor traders.

This is one of the best ways for floor traders to have an idea about the trades before the actual trade starts and have the resistance and support levels of the next forex session.

The pivots of the Forex helps to find out the market direction of the day trading with just few calculations traders are able to found the resistance and support levels of coming sessions.

By using simple arithmetic rules and the last day’s trade high, low, close and a series trade points can be computed easily.

These are the critical support and resistance levels and the pivot, support and resistance area calculated collectively from that data are considered as pivot levels.

The Forex market is the market where everyday has some changed high, lows, opening and closing prices that are different from the last day trade and although the Forex market is twenty-four hour trading platform yet the usual timing are 5pm EST is used to recognize the opening and closing prices for further trading using pivots.

The pivot points are very popular among Forex traders because they are leading signals of the market that means they play a predictive role in forex trade as they give the prior information of trade points before the actual trading starts.

The traders can use the previous day trade points and levels to predict the potential of the market and trade points for the upcoming session.

The three main points that are considered here are R1, S1 and actual pivot points.

The basic reason behind trading with pivot points is to find out the reversal or breakout point of the Forex trade that is R1 or S1. With the passage of time R2, R3, R4 or S2, S3 indicates about the already overbought or oversold trade levels that are used as exit ways not the entry doors in Forex.

While using pivot points in Forex the trading above the pivot level and then pause at R1 then further move to R2. This would lead the trader to a break point of R1 with the target of R2 and if the Forex trade is close to half at R2 and then move to R3 according to the rest of the trading position in the market.

The article gives information regarding the pivot points in Forex and the measurement ways of resistance, support and the pivot point of the Forex trade.