Tag Archives: Need

General Forex

Forex Broker Terms You Might Need to Know

When dealing with a Forex broker, you are introduced to a whole new trading jargon. Therefore, it seemed fitting to present to you a variety of Forex broker terms that you will need to know.

No Dealing Desk (NDD) Broker-This is a broker who does not have his own dealing desk. He instead outsources persons who would interact with the clients, providing them with price and liquidity information. These liquidity providers are the ones responsible for sending in all bids to the trading platform. The best bid is then presented to the client.

Forex ECN Broker-ECN stands for Electronics Communication Network. Therefore, an ECN broker is an Electronics Communication Network broker. All the trades are done in the name of this professional without the use of a dealing desk but rather via the use of a marketplace. This marketplace is flooded with market makers, banks, and traders who are making offers. This is a form of anonymous trading.

Market Maker-This is an individual that provides pricing and liquidity for currency pairs. This professional would then stand by waiting for the chance to buy or sell a currency at a specific price. A variety of strategies are used in order to provide traders with opportunities to make the most profit.

Agency-A professional establishment that provides intermediary services to both buyers and sellers is known as this. This outfit employs agents who make commissions off any gains made. Sometimes a small commission is charged regardless of how the financial transaction turns out.

STP-This is the acronym for Straight Through Processing. It is simply a term to indicate that an entire trading transaction is fully automated. There may be a person overseeing the automated transaction system. However, there is no intermediary taking care of your trade you just made. It is all done using web-based or downloadable software.

Margin-This is the amount of equity contributed by a trader. It is a percentage of the current market value of securities which are held in a special account.

PIP-This is the smallest unit of money that is used to accurately calculate Forex rates. This is a more precise determination of how much profit has been made or how much profit could be made.

Spread-Difference between the bid and ask price is referred to as this. This is another calculation of gain or loss as a transaction is made. It also is part of what is used to create statistical graphs and charts for a Forex broker to use as a guide.

Leverage-Market participants use this method of increasing potential gain of a Forex transaction made. It involves the use of various financial instruments (foreign currency in this case) or borrowed capital (usually money).

Lot-A pack of trading units that are sent to the market are often referred to as this. There are three different types-the micro (1,000 units), mini (10,000 units), and regular (100,000 units). This is done to help accommodate Forex broker accounts created by traders within varying budgets.

Market Analysis

Stock Market Investors Need Principles

Long term success does not come easy for stock market investors. You need to acquire specialized knowledge and follow sound, proven trading principles. This is the path to overall success in the markets.

The most important principle is proper money management. You must preserve your capital as much as possible. This means cutting your losses short. When the market goes against you, smart stock market investors get out with a small loss. Many legendary traders made their fortunes being right only about half the time. The secret is they always cut their losses short and let their profits run. Their winning positions were larger than the losing ones. It is important to understand the balance point between being too afraid and too aggressive.

Another important principle is to respect what the market is telling you. If you want to trade a stock that is in a major uptrend, only trade it from the long side. On the other hand, if a stock is in a major downtrend, sell it short, or do nothing at all. The market is telling you what to do, but you must be objective, and listen to what the market is telling you. Stock market investors who respect and listen to the market will be successful and maybe even make a fortune.

Concentrate on the process, and not the results. The results will then take care of themselves. Put as many factors as possible in your favor before ever taking a position in the market. Have the patience to wait for just the right trading opportunity, when the odds are firmly in your favor.

Stock market investors face many challenges when trading the markets. The intellectual challenge of understanding chart patterns and properly analyzing fundamental information. The biggest challenge of all is the psychological one. Many times to be successful, you must go against what is normal human nature.

A great way for stock market investors to become successful is to study market masters, past and present. Read their books, study their methods and principles. This includes Jesse Livermore, William J O’Neil and others. Then implement what you have learned into your own trading. You will most certainly improve your overall results by doing so.

Forex Trading Articles

Things You Need to Know Before Trading

Indeed, forex trading is really challenging just like how this certain millionaire game show goes. This game show that I’m talking about is all about answering questions from the easiest to the most difficult round. There are certain catches along the way. You may reach a certain level but then give back all your gains. A way to prevent this is by calling someone who can give you the right answer and this is called the lifeline.

Forex trading is typically like the said game wherein it involves a lot of mental and emotional readiness to be able to succeed and gain profits. A trader needs to be strategic to be able to gain more and minimize risks in forex trading.

There are cooperative games wherein it is a win-win game. But in forex trading, there should be a winner and a loser in every trade since the trader is playing against the market. Basically, the task of the trader is to look for avenues to be able to maximize the gains and lessen the risks.

The news definitely plays a big role in affecting the price movements in forex as well as geopolitics, economic conditions in major global regions. The new forex systems and the surplus of websites may also signal the new trader. Trading in forex is not an easy task and that proves when experts have a hard time doing so. A beginner and a trader both have a difficult time trading but the novice is more intimidated, of course.

The trader basically doesn’t know about things that he needs to know and things that he should and should not know. As a result, beginning traders tend to use everything they can to evaluate the currency markets and come to a decision on a trade. The final result of this would be the possibility of missing on trading opportunities because the trader tends to over analyze the charts.

If a person is encountering a new problem, he would definitely solve it using his pass experience. Since traders have different backgrounds, their habits mostly are shown through this behavior. For instance, if an engineer is trading in the market, he sees the model as variables just like in engineering. The engineer would want to treat the forex trade as a way to solve his issue.

More experienced traders try to know what they need to know, try to know what they don’t know, and try to know what they don’t need to know. The bad habits of these experts sometimes take place wherein they begin to take shortcuts and stop their learning process. Obviously, this is a disadvantage because through this, experts’ development as traders is put into a halt.

The way how the optimistic new traders and the realistic old traders deal with their search for knowledge about the forex market are what make them different. The way how they deal with the problem come from their past losses and experiences through trial and error. There is a possibility that the novice and the experienced trader will meet their efforts through training and practice in the forex trading.

General Investing

All You Need to Know About Gold Proof Coins

Gold proof coins are especially minted for those who are interested in collecting coins and for presents to be gifted for special occasions. Such coins are not meant for purposes of circulation. These are usually manufactured as samples of preproduction and are a definite designation for such coins. The blanks are specifically created to mint proofs and are quite highly polished prior to their striking. These coins are produced using a special procedure giving it a shinier and glossier appearance in comparison to its bullion counterpart. Even the dies of such coins are thoroughly polished and specially prepared before using to mint them.

Gold proof coins are struck in a unique way and are given a special finish as well. Being produced in fairly limited amounts, they are quite rare. With the passage of time the value of these coins has been consistently increasing. Most often they are more expensive than their bullion cousin. The main reason for the difference in price between these two items of gold lies in the fact that the coins are rarer and their process of minting is comparatively expensive. Before you invest in such coins, you must bear certain essential factors in mind. Some of them have been outlined and explained in the following section.

A vital aspect while buying gold proof coins is that you must be aware of the fair price of the coin that you are interested in. This will prevent you from overspending while purchasing such a coin. It is recommended that to do some research on various dealers before buying such coins. Another vital aspect that you must know in this context is the distinction between such coins and gold bullion coins that closely resemble them. In this way you will be able to avoid the mistake of buying the wrong type of coin.

Another essential aspect while purchasing gold proof coins as opposed to the gold bullion is to know about the rate at which such a piece appreciates with the passage of time. You can do this by making a comparison of the difference in prices of such identical coins that had been produced in various years. One basic rule is that the older such gold coins, the more valuable it will be in comparison to its identical, newer counterparts. However, there is one exception to this rule. That is applicable if in a particular year lesser than usual coins are produced. In such a situation of scarcity, a newer coin can have greater value than its older identical counterparts.

Similarly, there are official figures which reveal that prices of gold bullion have steadily risen over the years. Historically, these items have proved to have the ability to supersede global recessions by being able to do well even when various other methods of investments fail to do so. It has managed to soar in value even when currencies have fallen drastically and has grown from strength to strength during situations of high inflation. Therefore, if you wish to reap some monetary profit, you can consider investing on these or gold proof coins. There are many around the world who stick to this safe and reliable method of investment.

Forex Trading Articles

Forex Currency Trading Software Why You Need to Make Use of It

Trading in the foreign currency market was the domain of banks and large finance companies; nowadays though, it is now available to the typical individual, because of computers along with the Internet. With the proliferation of so many Forex currency trading software systems, aided by the simple fact that anyone can get started with a mere $100 (or even less) to open up a Forex trading account, it is no wonder that the average daily turnover of the global foreign exchange market has expanded to almost $4 trillion in April 2010 vs. $1.7 trillion in 1998. And this is mainly because trading the Forex is now open to everybody.

The truth is, many individuals are trading in the comfort of their own homes. With the advance of more robust mobile communications or portable gadgets such as smartphones, tablets and notebooks, more and more people can be seen doing trades at just about anywhere – homes, malls, restaurants, parks, or even while driving in their cars. As a result, the playing field has been leveled for all market players.

Many of the systems available on the net are free Forex software. This particular software is capable of provide its users with the required information for example economic news and events that affect the currency Forex market. This software program is also able to providing the technical signals, as in the case of a Forex trading signal software, which can help the user decide when to sell or buy. This trading software also provides a graphic user-interface with which traders can buy and/or sell currency pairs. The same systems might also provide more useful features such as forums, where currency traders can get connected to each other. You may also have reading materials that can teach the fundamentals of Fx trading, and most systems provide practice or game accounts to familiarize new users with trading; using the system without using actual money.

Although it isn’t very difficult to get started in trading the Forex, making consistent profits can be a different story. Different sources differ in their statistics. You will find traders losing money and then there are traders making money. One thing is usual though; more traders are losing rather than earning money through Foreign exchange. Considering the huge number of currency traders competing with each other around the world, traders need all of the help they can get to get ahead of the rest. That is, access to real-time information and different trading signals to assist users analyze when they are supposed to buy/sell. For this reason it’s very important for everyone, particularly the person that trades currencies for some dollars to utilize a profitable Forex currency trading software. Even some big time players in the market use software to be able to have clearer pictures of trends.

Besides from having the best Forex currency trading software, an investor also requires a great deal of practice, patience, discipline as well as the ability to look at signals and data as a whole; all these would make Fx trading a profitable endeavor.