Thursday, August 27, 2009

Forex Tips

Man y th in g h as b e e n s aid ab o u t Fo r e x b u t o n e th in g th at r e l ativ e l y­ co me s to min d w h e n w e tal k o f Fo r e x is h o w r is ky it is ? Can o n e tr­ad e Fo r e x w ith o u t an y l o s s ? th is is a mil l io n d o l l ar q u e s tio n . Al th o u gh o n e w il l s ay it is n o t po s s ib l e to tr ad e Fo r e x w ith o u t l o s in g. E­as y Fo r e x tr ad in g can [...]

Wednesday, August 5, 2009

Forex Trading Signals

With Forex Signals Plus you can trade foreign currencies alongside our professional Forex traders as they monitor the markets six days a week to identify and execute high probability trades on our live accounts.

Signup and receive our detailed buy/sell trading signals, including stop loss and target updates, via various distribution methods and optionally engage our MECHfx auto trading system to have our Forex signals automatically executed on your live trading account in real-time. Either way, our real traders and their knowledge of the Forex Market become your trading advantage.

Whether you are a novice, seasoned trader or active investor Forex Signals Plus has a solution that is right for you.

FOREX Trading Is Better Than Stock Trading Or Futures Trading

The reason why Forex Trading is better is as follows:-1. With Forex trading, there are no trading hours. You can trade 24 hours a day! With the possible exception of a few hours on the weekend, the FOREX market is open around the clock. Compare that to the stock market and the futures market which usually opens at 9:30am and closes at 4pm EST in North America. Due to the global nature of the FOREX market you're able to trade at your convenience, day or night.2. Less or No commissions for Forex trading. Tired of paying upwards of $30 per trade for a simple stock transaction? You don't have to worry about that when trading on the FOREX market. Your FOREX broker makes their money by taking the difference in price between the ask price and bid price for the currency being traded. This means no money out of your pocket.3. Instant order fulfillment for Forex trading. A common complaint (and sad fact of life) when it comes to trading on the stock or futures market is that there is often a delay between when you place your order and when it actually gets filled. This can mean the difference between making a bundle and making nothing at all. Due to the incredibly high volume of transactions that occur daily on the FOREX market you can fill your orders instantly based on the real-time data you see on your trading platform. There can be occasions when the market is particularly volatile which can result in some minor delays, but for the most part you get what you see is what you pay for.4. No middlemen for Forex trading. Unlike equityexchanges, FOREX traders can access the market maker directly without having to go through an intermediary first. This means that a FOREX trader can buy or sell directly from the entity that decides on the price for a given currency pair. Because an extra layer of communication has been eliminated, FOREX traders benefit from cheaper costs and gain quicker access to trades.5. No unfair influence. We've all seen it on T.V. or read about it on the news talking heads telling us to buy when a stock's price is plummeting; assuring us that everything will be alright in the end. The truth is that the only one that wins is the firm issuing that so-called advice while the average investor is left to lick his wounds. The FOREX market cannot be influenced by any one brokerage or person as it is representative of a countries economic health and not opinion, and is therefore immune to any attempt at influence.6. No choice overload. There are over 8000 stock available to trade on the NASDAQ and NYSE alone that's an awful lot of news to keep up with on a daily basis, and an awful lot of analysis to perform before you begins your next trade. Compare that to the FOREX market which, although it gives you access to dozens of different currencies, tends to focus on the four major currency pairs. This drastically reduces your research time and allows you to enter the market far more quickly.7. There is limited risk for Forex trading. You must enable margin limits to mitigate risk in Forex trading.

Forex Trading Terms

Forex trading terms can often seem complicated to the uninitiated. In this section, we’ll be taking a look at some of the most basic Forex trading terms.

  • Bid Price - The price at which a buyer is willing to purchase a currency. Always expressed as a 5 digit number.
  • Ask Price - The price at which a seller is willing to sell a currency. Always expressed as a 5 digit number.
  • Spread - The difference between the bid price and ask price.
  • Margin - Collateral for a position. This comes into play when the market moves in a downward direction and the forex trader requires additional funds. This is done by requesting a “margin call.”
  • Long Position - The trader buys a currency at a certain price, expecting to sell it later at a higher price.
  • Short Position - The trader sells a currency with the expectation of buying it back later at a lower price.
  • Spot - A two-day delivery transaction which indicates a direct exchange of currencies.
  • Forward - In this style of exchange, money does not change hands until an agreed-upon date in the future.
  • Future - Currency which matures at a future date and usually carries a three-month contract.
  • Swap - The swap is the most common type of forward transaction. In these cases, two parties agree to swap currencies and then swap them again at a future date.

Checklist for your system:

• Did you use an out-of-sample data to check your system?
• Did you check your system code?
• Where you over-enthusiastic and over-optimized your system?
• Did you start with a small initial investment before going for higher transactions?
• Are you aware of the limitations of our system?
• Do you even have a system to help you in trade?
• If you do not have a system, how do you know that your strategy will be profitable?

Forex Charting Software

How does forex charting software works: the forex charting software packages are used by many traders to determine the direction on any given currency pair.a lot of analytical computer based tool used to help currenct trader with the forex trading by charting the price of various currency pairs along with various indicators.There is a wide range of forex charting software, which varies in appearance and functionality. However, users should look for several things in forex charting software that will help them to get the most out of their trading.

Trade example 1

1. Open a long trade: Buy GBP/USD at 1.8903
2. Close trade: Sell GBP/USD at 1.9015
3. Profit: + 112 pips ($1,120)