by: Mark krisp
that discipline contributed more to their success than their trading philosophy itself. Remember that the key to any plan is how well it holds over time.2. There is no "sure thing", and there is no trading system that is 100% accurate. Your goal, as a trader, is to usethe tools available and try to develop an edge. Base your trades on sound fundamental and technical reasoning,rather than on hunches and long shots. If you can develop an edge, however small, over time you will be successful.3. A trader must be able to admit they have made a mistake. Do not become emotionally or financially committed to a losing trade. Avoid the pitfall of becoming emotionally involved with any trade.4. An investing edge is only part of the equation. A trader should diversify sufficiently so that the growth in equity can be consistent and the likelihood of a catastrophic loss can be diminished. The lower the percentage of a traders' account dedicated to any one trade the greater the chance of the trader being successful. Even if the trader has a perceived investing edge, it is unwise to run the risk of ruin, and bet it all on one trade. The goal is not only to make money, but also to be able to continue to make money consistently for anextended period of time. A trader must learn the basic concepts and the importance of money management.5. Lack of experience in the market causes many traders to make the mistake of taking small profits and letting losses run.Fundamental trading wisdom dictates the exact opposite. When in a winning trade, be patient and fully capitalize on the success. The trading axiom is, "cut your losses short and let your profits run".6. A trading system does not have to be difficult, time consuming, complicated and stressful in order to be profitable.In trading systems, as in many other things in life, simple can be better7. As a trader, be cautious, and never let greed take control of a winning position.8. Be aware that declining volume usually indicates the market is not accepting higher or lower prices, and this could indicate a market turn.9. Learn from your trading mistakes. Never make a trading mistake without asking yourself why.10. Do not make trading decision based solely on margin requirements, and always trade within your capabilities.Remain true to your trading plan and follow the trading style that works best for you.11. Do not trade markets that you don't understand. Trade with confidence and conviction. Trade only with risk capital and be aware of the risk of losing. Divide your capital into 6 equal parts and never risk more than one-tenth of your capital on any one trade.12. After a long period of success or a period of profitable trades, try to avoid the natural tendency toward increasing your trading activity. Conversely, use self-discipline when a trade goes against your position. Take your loss and wait for another opportunity. Never increase your trading after a loss.13. Avoid getting into the market because you are anxious from waiting and/or out of the market because you have lost your patience. Never over trade and adhere to your risk management rules14. Do not make a trading decision to buy just because the price of the stock is low or sell just because the price is high. Never change your position in the market without a good reason that is based on a fundamental or technical rule indicating a change in trend.15. Trade the most active stocks and refrain from trading the slow moving markets. Trade "at the market" whenever possible and try to avoid a fixed buying and selling price.16. When the market is moving with your position and you are using a stop loss order, then raise your stop loss so as to lock in your profit. Protect yourself against the possibility of turning a profit into a loss.17. The "trend is your friend," and never buy and sell if you are insecure of the trend according to your fundamentals and technical rules. If you are in doubt, then exit the market. Only trade when you feel confident with your trading strategies.18. Trade in five or six different stocks at a time, so as to avoid tying up all of your capital in any single stock.19. A trader should establish a "surplus account" after a series of successful or winning trades. The goal is to retain the "surplus account" for times of emergency or panic 20. It is difficult to try and guess where the top and bottom of the market is, instead let the market prove its top and bottom. About the author:Mark Crisp The Momentum Stock Trader http://www.stressfreetrading.comCirculated by Article Emporium
Thursday, August 23, 2007
What’s Fibonacci Forex Trading?
by: Adrian
Fibonacci forex trading is the basis of many forex trading systems used by a great number of professional forex brokers around the globe, and many billions of dollars are profitable traded every year based on these trading techniques.Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it’s formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 ...But in the case of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.These ratios are mathematical proportions prevalent in many places and structures in nature, as well as in many man made creations. Forex trading can greatly benefit form this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.Fibonacci price points, or levels, for any forex currency pair can be calculated in advance so that the trader will know when to enter or exit the market if the prediction given by the Fibonacci forex day trading system he uses fulfills its predictions.Many people tries to make this analysis overly complicated scaring away many new forex traders that are just beginning to understand how the forex market works and how to make a profit in it. But this is not how it has to be. I can’t say it’s a simple concept but it is quite understandable for any trader once he or she has grasped the basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help to improve the accuracy of the entry and exit point for every particular trade. Free chapters of a forex day trading system can be downloaded at the author's website in case you are interested in learning more about Fibonacci forex trading. About the author:Adrian Pablo; Forex trader and freelance writer. http://www.1-forex.com Circulated by Article Emporium
Fibonacci forex trading is the basis of many forex trading systems used by a great number of professional forex brokers around the globe, and many billions of dollars are profitable traded every year based on these trading techniques.Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it’s formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 ...But in the case of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.These ratios are mathematical proportions prevalent in many places and structures in nature, as well as in many man made creations. Forex trading can greatly benefit form this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.Fibonacci price points, or levels, for any forex currency pair can be calculated in advance so that the trader will know when to enter or exit the market if the prediction given by the Fibonacci forex day trading system he uses fulfills its predictions.Many people tries to make this analysis overly complicated scaring away many new forex traders that are just beginning to understand how the forex market works and how to make a profit in it. But this is not how it has to be. I can’t say it’s a simple concept but it is quite understandable for any trader once he or she has grasped the basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help to improve the accuracy of the entry and exit point for every particular trade. Free chapters of a forex day trading system can be downloaded at the author's website in case you are interested in learning more about Fibonacci forex trading. About the author:Adrian Pablo; Forex trader and freelance writer. http://www.1-forex.com Circulated by Article Emporium
Comments on Forex Trading Account Sizes, Lots and Margin Calls
by: Adrian
Forex trading is one of the best business opportunities you can think of joining these days. No other market in the world allows the “Leverage” that the profitable world of currency-trading does. Leverage is all about margin trading. In the Forex market, it is essentially the ratio of the amount used in a trade to the required security deposit needed, by the particular broker you chose to use, for that trade.Normally, for most brokerages, a margin deposit of just $1,000 allows you to control a $100,000 position in the Forex market. That's 100:1 leverage, or 1%. Or, said in a different way, a “regular full-sized account”, sometimes referred to as a 100k account, allows you to trade with lot sizes equal to $100,000. Each lot is worth $100,000 in currency. So It would only require $1,000 to trade one lot.This great feature in Forex trading is what makes this market the hottest market to trade in right now. The Forex broker has given you a loan of $99,000 dollars secured only by your $1,000! This is a huge loan and, as you may know by now, this is what allows traders to make extraordinary incomes in this market. And, as you also are probably used to hearing , "leverage is a two-edged sword" , it is what can cause you to lose a lot of money if you trade without rules or Stop-loss orders.But just as an example, let's say you were a person that likes to trade with reckless abandon, i.e., with no strategy, no common sense, no money- management principles, etc. That’s never recommended for anyone, but being a Forex trader has such great advantages, that even someone with a trading mind like the one described before, will never lose more than what he has placed into a trade.Unlike Futures (Commodity Trading), the market that most people associate with High leverage, you can never have a debit balance when trading Forex.So, despite the greater leverage associated with FX trading, it is still arguably less risky than futures trading. Futures markets are often prone to sudden and dramatic moves, against which you can’t protect yourself, even by trading with protective stops. Your position may be liquidated at a loss, and you’ll be liable for any resulting deficit in the account. But because of the Forex markets great liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are very unprobable. Orders are executed quickly, without slippage or partial fills, which is just great. And as it was not enough, there are no margin calls, for your protection, the forex broker's trading platform will automatically close out some or all of your open positions if your account equity, meaning the total floating value of the account, falls below the level required to hold the positions. Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance. About the author:Adrian Pablo; Forex trader and freelance writer. You can download a free Fibonacci trading report at his website: http://www.1-forex.com Circulated by Article Emporium
Forex trading is one of the best business opportunities you can think of joining these days. No other market in the world allows the “Leverage” that the profitable world of currency-trading does. Leverage is all about margin trading. In the Forex market, it is essentially the ratio of the amount used in a trade to the required security deposit needed, by the particular broker you chose to use, for that trade.Normally, for most brokerages, a margin deposit of just $1,000 allows you to control a $100,000 position in the Forex market. That's 100:1 leverage, or 1%. Or, said in a different way, a “regular full-sized account”, sometimes referred to as a 100k account, allows you to trade with lot sizes equal to $100,000. Each lot is worth $100,000 in currency. So It would only require $1,000 to trade one lot.This great feature in Forex trading is what makes this market the hottest market to trade in right now. The Forex broker has given you a loan of $99,000 dollars secured only by your $1,000! This is a huge loan and, as you may know by now, this is what allows traders to make extraordinary incomes in this market. And, as you also are probably used to hearing , "leverage is a two-edged sword" , it is what can cause you to lose a lot of money if you trade without rules or Stop-loss orders.But just as an example, let's say you were a person that likes to trade with reckless abandon, i.e., with no strategy, no common sense, no money- management principles, etc. That’s never recommended for anyone, but being a Forex trader has such great advantages, that even someone with a trading mind like the one described before, will never lose more than what he has placed into a trade.Unlike Futures (Commodity Trading), the market that most people associate with High leverage, you can never have a debit balance when trading Forex.So, despite the greater leverage associated with FX trading, it is still arguably less risky than futures trading. Futures markets are often prone to sudden and dramatic moves, against which you can’t protect yourself, even by trading with protective stops. Your position may be liquidated at a loss, and you’ll be liable for any resulting deficit in the account. But because of the Forex markets great liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are very unprobable. Orders are executed quickly, without slippage or partial fills, which is just great. And as it was not enough, there are no margin calls, for your protection, the forex broker's trading platform will automatically close out some or all of your open positions if your account equity, meaning the total floating value of the account, falls below the level required to hold the positions. Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance. About the author:Adrian Pablo; Forex trader and freelance writer. You can download a free Fibonacci trading report at his website: http://www.1-forex.com Circulated by Article Emporium
Forex Training: What to Look for in a Forex Training Program
by: Raul लोपेज़
Should new Forex traders take Forex trading courses or join a Forex training program? Definitely yes; by now you have probably heard that only 5% of traders achieve consistent profitable results when trading the Forex market. The main reason for this is the lack of education. Don’t get me wrong here, taking a Forex training program or a Forex trading course won’t guarantee profitable results, nothing can, but choosing the right Forex training program or Forex trading course will definitely put the odds in your favor.Before spending any amount of money on any Forex trading course or Forex training program there are some important aspects you need to take in consideration. There are many training programs available, but not every one of them suits the needs of every trader. The first thing you should be looking in a Forex training program is the content of the material. Unfortunately, most courses or training programs focus or spend most of the time on basic concepts. Though these basic concepts are important, spending most of the course on them won’t help the trader to make consistent results.The following subjects are what I consider the most important aspects of trading and every training program or trading course should address:Forex trading basics.Review basic concepts such as: margin, type of orders, a little background, bid/ask, rollover, etc. You need to make sure you understand every single concept to perfection. Main drawbacks of Forex traders. Being aware of the common mistakes made by Forex traders and knowing how to handle them will prevent new traders from making those mistakes. Technical and fundamental analysis. These are the two main approaches adopted by Forex traders. Knowing how to properly apply each concept will definitely put the odds in your favor. The three pillars of Forex trading. I consider that these three subjects have the most impact on every trader trading account. Forex trading system development.Having the right system is a must if you want to have consistent profitable results. Having a system that doesn’t fit you will cause a series of problems that will make your trading account vanish away (second guessing the system, not following your system, etc.)Money management.This is considered by many successful traders to be the most important single aspect of trading. Money management helps to increase your profits geometrically and at the same time limit your losses (i.e. a good risk reward ratio of about 2:1 will make you money in a Forex trading system that is right only 38% of the time.)Trading psychology. Being aware and knowing hot to handle the psychological barriers that affect every trader decision will put the odds in your favor. Other important aspects every training program should include are:Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking our trading as a business, risk and trade management.Another important aspect you should take into consideration when choosing a Forex training program is the mechanics of it, getting to know how the training program works. A good course will have the following:A live conference room, where you can apply everything learned under live market conditions.One-on-one feedback, every trader has different needs and requires special attention. For instance a trader wanting to improve the system and requires individual feedback from the instructor about it. Online trading course, a course that could be accessible through internet. A plus is a course where you are able to access the course at the convenient time for you, so you don’t have to change your lifestyle. A forum, where members can talk just about everything related to the Forex market and the Forex training program.Trading the Forex market is no easy task. It requires a lot of hard work. Making the right decision will definitely put the odds in your favor. Take your time when doing your diligence because it is a big and important step in a trader’s trading career. About the author:Raul Lopez is a full time Forex trader and founder of http://www.straightforex.coma high quality Forex training company. Circulated by Article Emporium
Should new Forex traders take Forex trading courses or join a Forex training program? Definitely yes; by now you have probably heard that only 5% of traders achieve consistent profitable results when trading the Forex market. The main reason for this is the lack of education. Don’t get me wrong here, taking a Forex training program or a Forex trading course won’t guarantee profitable results, nothing can, but choosing the right Forex training program or Forex trading course will definitely put the odds in your favor.Before spending any amount of money on any Forex trading course or Forex training program there are some important aspects you need to take in consideration. There are many training programs available, but not every one of them suits the needs of every trader. The first thing you should be looking in a Forex training program is the content of the material. Unfortunately, most courses or training programs focus or spend most of the time on basic concepts. Though these basic concepts are important, spending most of the course on them won’t help the trader to make consistent results.The following subjects are what I consider the most important aspects of trading and every training program or trading course should address:Forex trading basics.Review basic concepts such as: margin, type of orders, a little background, bid/ask, rollover, etc. You need to make sure you understand every single concept to perfection. Main drawbacks of Forex traders. Being aware of the common mistakes made by Forex traders and knowing how to handle them will prevent new traders from making those mistakes. Technical and fundamental analysis. These are the two main approaches adopted by Forex traders. Knowing how to properly apply each concept will definitely put the odds in your favor. The three pillars of Forex trading. I consider that these three subjects have the most impact on every trader trading account. Forex trading system development.Having the right system is a must if you want to have consistent profitable results. Having a system that doesn’t fit you will cause a series of problems that will make your trading account vanish away (second guessing the system, not following your system, etc.)Money management.This is considered by many successful traders to be the most important single aspect of trading. Money management helps to increase your profits geometrically and at the same time limit your losses (i.e. a good risk reward ratio of about 2:1 will make you money in a Forex trading system that is right only 38% of the time.)Trading psychology. Being aware and knowing hot to handle the psychological barriers that affect every trader decision will put the odds in your favor. Other important aspects every training program should include are:Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking our trading as a business, risk and trade management.Another important aspect you should take into consideration when choosing a Forex training program is the mechanics of it, getting to know how the training program works. A good course will have the following:A live conference room, where you can apply everything learned under live market conditions.One-on-one feedback, every trader has different needs and requires special attention. For instance a trader wanting to improve the system and requires individual feedback from the instructor about it. Online trading course, a course that could be accessible through internet. A plus is a course where you are able to access the course at the convenient time for you, so you don’t have to change your lifestyle. A forum, where members can talk just about everything related to the Forex market and the Forex training program.Trading the Forex market is no easy task. It requires a lot of hard work. Making the right decision will definitely put the odds in your favor. Take your time when doing your diligence because it is a big and important step in a trader’s trading career. About the author:Raul Lopez is a full time Forex trader and founder of http://www.straightforex.coma high quality Forex training company. Circulated by Article Emporium
Forex Trading
by: Chris रोह्रेर
The foreign exchange market, also knows as FOREX, originated in 1973 has become the largest e-currency trade market in the world today. FOREX trading occurs 24 hours a day, 5 days a week. The FOREX market offers a unique trading opportunity to those seeking a substantial profit in a market that trades over 1.2 trillion dollars each day. FOREX market is primarily traded between central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Previously small investors were unable to trade in the FOREX market due to the large deposit required. However until recent years, with the continuing growth of the internet and competition, Forex trading has made it so small investors can now open a FOREX trading account with as little as $250. There are a few factors as to why FOREX investing is starting to attract more small investors. For one, FOREX can be traded 24 hours a day 5 days a week. Previously trades were placed by phone, the internet has made it possible for traders to monitor their FOREX trading accounts from home and execute trades in real time with the click of a mouse button. In order to start trading in the FOREX market, one must first open an account with a broker. It is recommended to obtain a list of brokers and do some research before deciding on which broker to deal with. Each broker offers different policies and different spreads on each currency that is traded. Before trading in FOREX, one must first understand the risk and reward behindmargin trading in FOREX. A margined account can be leveraged, which means trading in FOREX can be done with solely cash or a combination of cash and collateral such as a security deposit. The main risk involved in margin trading is that margin trading tends to inflate loss. In addition the rate of loss and leverage makes FOREX a high risk investment. However, regardless of the downside in margin trading, FOREX is still very profitable as huge gains can be made. There are plenty of resources on the internet that will discuss trading strategies, emotions and what it takes to become a successful trader. Most of these web sites are going to tell you that emotions play the largest roll in your success as a trader. About the author:To learn more about the Forex Trading program visit Forex Investing Circulated by Article Emporium
The foreign exchange market, also knows as FOREX, originated in 1973 has become the largest e-currency trade market in the world today. FOREX trading occurs 24 hours a day, 5 days a week. The FOREX market offers a unique trading opportunity to those seeking a substantial profit in a market that trades over 1.2 trillion dollars each day. FOREX market is primarily traded between central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Previously small investors were unable to trade in the FOREX market due to the large deposit required. However until recent years, with the continuing growth of the internet and competition, Forex trading has made it so small investors can now open a FOREX trading account with as little as $250. There are a few factors as to why FOREX investing is starting to attract more small investors. For one, FOREX can be traded 24 hours a day 5 days a week. Previously trades were placed by phone, the internet has made it possible for traders to monitor their FOREX trading accounts from home and execute trades in real time with the click of a mouse button. In order to start trading in the FOREX market, one must first open an account with a broker. It is recommended to obtain a list of brokers and do some research before deciding on which broker to deal with. Each broker offers different policies and different spreads on each currency that is traded. Before trading in FOREX, one must first understand the risk and reward behindmargin trading in FOREX. A margined account can be leveraged, which means trading in FOREX can be done with solely cash or a combination of cash and collateral such as a security deposit. The main risk involved in margin trading is that margin trading tends to inflate loss. In addition the rate of loss and leverage makes FOREX a high risk investment. However, regardless of the downside in margin trading, FOREX is still very profitable as huge gains can be made. There are plenty of resources on the internet that will discuss trading strategies, emotions and what it takes to become a successful trader. Most of these web sites are going to tell you that emotions play the largest roll in your success as a trader. About the author:To learn more about the Forex Trading program visit Forex Investing Circulated by Article Emporium
Benefits of Forex Trading
by: Cynthia machi
There are many benefits and advantages to trading Forex. Here are just a fewreasons why so many people are choosing this market as a businessopportunity:1. LEVERAGE: In Forex trading, a small margin deposit can control a muchlarger total contract value. Leverage gives the trader the ability to makeextraordinary profits and at the same time keep risk capital to a minimum. SomeForex firms offer 200 to 1 leverage, which means that a $50 dollar margindeposit would enable a trader to buy or sell $10,000 worth of currencies.Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.2. LIQUIDITY: Because the Forex Market is so large, it is also extremely liquid.This means that with a click of a mouse you can instantaneously buy and sell atwill. You are never 'stuck' in a trade. You can even set the online tradingplatform to automatically close your position at your desired profit level (limitorder), and/or close a trade if a trade is going against you (stop order).3. PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stockmarkets, you can only make money if shares are rising, but in economicrecession and falling 'bear' markets, there is little chance of making big money.Forex is different. One of the most exciting advantages of FX trading is the abilityto generate profits whether a currency pair is 'up' or 'down'. A trader can profitby taking a 'long' position, (buying the currency pair at one price and selling itlater at a higher price), or a 'short' position, (selling the currency pair and buyingit back at a lower price). For example, if you think the US dollar will increase invalue vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). Ifyou think the Yen will increase in value against the Dollar then you will sellDollars and buy yen (go short). As long as the trader picks the right direction, apotential for profit always exists.4. 24 HRS: From Sunday evening to Friday Afternoon EST the Forex marketnever sleeps. This is very desirable for those who want to trade on a part-timebasis, because you can choose when you want to trade--morning, noon or night.5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most OnlineForex firms offer free 'Demo' accounts to practice trading, along with breakingForex news and charting services. These are very valuable resources for traderswho would like to hone their trading skills with 'virtual' money before opening alive trading account.6. 'MINI' TRADING: One might think that getting started as a currency traderwould cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer'mini' trading accounts with a minimum account deposit of only $200-$500 withno commission trading. This makes Forex much more accessible to the averageindividual, without large, start-up capital.Please visit the author's other trading sites to learn more about forex trading:http://www.daytrade-forex.comhttp://www.daytradeforex.comhttp://www.daytradeforex.com/products.htmhttp://www.professionalforextrading.infohttp://www.professionalforextradingonline.infohttp://www.successtrading2000.comhttp://www.successtrading2000.com/forexhttp://www.tradecurrency.ca/education.htmhttp://www.shortterminvestingsite.com About the author:My name is Cynthia Macy and I've been trading various markets for over 12 years. I now concentrate on the forex market, as it has several advantages over trading other markets. If you'd like to learn more about forex trading, visit: http://www.daytrade-forex.comRequest the 'Trade of the Week' to see actual trades using our trading methods and strategies. Circulated by Article Emporium
There are many benefits and advantages to trading Forex. Here are just a fewreasons why so many people are choosing this market as a businessopportunity:1. LEVERAGE: In Forex trading, a small margin deposit can control a muchlarger total contract value. Leverage gives the trader the ability to makeextraordinary profits and at the same time keep risk capital to a minimum. SomeForex firms offer 200 to 1 leverage, which means that a $50 dollar margindeposit would enable a trader to buy or sell $10,000 worth of currencies.Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.2. LIQUIDITY: Because the Forex Market is so large, it is also extremely liquid.This means that with a click of a mouse you can instantaneously buy and sell atwill. You are never 'stuck' in a trade. You can even set the online tradingplatform to automatically close your position at your desired profit level (limitorder), and/or close a trade if a trade is going against you (stop order).3. PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stockmarkets, you can only make money if shares are rising, but in economicrecession and falling 'bear' markets, there is little chance of making big money.Forex is different. One of the most exciting advantages of FX trading is the abilityto generate profits whether a currency pair is 'up' or 'down'. A trader can profitby taking a 'long' position, (buying the currency pair at one price and selling itlater at a higher price), or a 'short' position, (selling the currency pair and buyingit back at a lower price). For example, if you think the US dollar will increase invalue vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). Ifyou think the Yen will increase in value against the Dollar then you will sellDollars and buy yen (go short). As long as the trader picks the right direction, apotential for profit always exists.4. 24 HRS: From Sunday evening to Friday Afternoon EST the Forex marketnever sleeps. This is very desirable for those who want to trade on a part-timebasis, because you can choose when you want to trade--morning, noon or night.5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most OnlineForex firms offer free 'Demo' accounts to practice trading, along with breakingForex news and charting services. These are very valuable resources for traderswho would like to hone their trading skills with 'virtual' money before opening alive trading account.6. 'MINI' TRADING: One might think that getting started as a currency traderwould cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer'mini' trading accounts with a minimum account deposit of only $200-$500 withno commission trading. This makes Forex much more accessible to the averageindividual, without large, start-up capital.Please visit the author's other trading sites to learn more about forex trading:http://www.daytrade-forex.comhttp://www.daytradeforex.comhttp://www.daytradeforex.com/products.htmhttp://www.professionalforextrading.infohttp://www.professionalforextradingonline.infohttp://www.successtrading2000.comhttp://www.successtrading2000.com/forexhttp://www.tradecurrency.ca/education.htmhttp://www.shortterminvestingsite.com About the author:My name is Cynthia Macy and I've been trading various markets for over 12 years. I now concentrate on the forex market, as it has several advantages over trading other markets. If you'd like to learn more about forex trading, visit: http://www.daytrade-forex.comRequest the 'Trade of the Week' to see actual trades using our trading methods and strategies. Circulated by Article Emporium
Forex: Benefits of Trading the Forex Market
by: Raul Lopez
Trading the Forex market has become very popular in the last years। Why is it that traders around the world see the Forex market as an investment opportunity? We will try to answer this question in this article। Also we will discuss come differences between the Forex market, the stocks market and the futures market.
Some of the benefits of trading the Forex market are:
Superior liquidity.
Liquidity is what really makes the Forex market different from other markets. The Forex market is by far the most liquid financial market in the world with nearly 2 trillion dollars traded everyday. This ensures price stability and better trade execution. Allowing traders to open and close transactions with ease. Also such a tremendous volume makes it hard to manipulate the market in an extended manner.
24hr Market.
This one is also one of the greatest advantages of trading Forex. It is an around the click market, the market opens on Sunday at 3:00 pm EST when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminates operations. There are transactions in practically every time zone, allowing active traders to choose at what time to trade.
Leverage trading.
Trading the Forex Market offers a greater buying power than many other markets. Some Forex brokers offer leverage up to 400:1, allowing traders to have only 0.25% in margin of the total investment. For instance, a trader using 100:1 means that to have a US$100,000 position, only US$1,000 are needed on margin to be able to open that position.
Low Transaction costs.
Almost all brokers offer commission free trading. The only cost traders incur in any transaction is the spread (difference between the buy and sell price of each currency pair). This spread could be as low as 1 pip (the minimum increment in any currency pair) in some pairs.
Low minimum investment.
The Forex market requires less capital to start trading than any other markets. The initial investment could go as low as $300 USD, depending on leverage offered by the broker. This is a great advantage since Forex traders are able to keep their risk investment to the lowest level.
Specialized trading.
The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main investments (85% of all trading transactions are made on the seven major currencies). Allowing us to monitor, and at the end get to know each instrument better.
Trading from anywhere.
If you do a lot of traveling, you can trade from anywhere in the world just having an internet connection.
Some of the most important differences between the Forex market and other markets are explained below.
Forex market vs. Equity markets
Liquidity
FX market: Near two trillion dollars of daily volume.
Equity market: Around 200 billion on a daily basis.
Trading hours
FX market: 24hr market, 5.5 days a week.
Equity market: Monday through Friday from 8:30 EST to 5:00 EST.
Profit potential
FX market: In both, rising and falling markets.
Equity market: Most traders/investor profit only from rising markets.
Transaction costs
FX market: Commission free and tight spreads.
Equity market: High Commissions and transaction fees.
Buying power
FX market: Leverage up to 400:1.
Equity market: Leverage from 2:1 to 4:1.
Specialization
FX market: most volume (85%) is made on major currencies (USD, EUR, JPY, GBP, CHF, CAD and AUD.)
Equity market: More than 40,000 stocks to choose from.
Forex market vs. Futures market
Liquidity
FX Market: Near two trillion dollars of daily volume.
Futures market: Around 400 billion dollars on a daily basis.
Transaction costs
FX market: Commission free and tight spreads.
Futures market: High commissions fees.
Margin
FX market: Fixed rate of margin on every position.
Futures market: Different levels of margin on overnight positions than day time positions.
Trade execution
FX market: Instantaneous execution.
Futures market: Inconsistent execution.
All this makes the Forex market very attractive to investors and traders. But I need to make something clear, although the benefits of trading the Forex market are notorious; it is still difficult to make a successful career trading the Forex market. It requires a lot of education, discipline, commitment and patience, as any other market.
Trading the Forex market has become very popular in the last years। Why is it that traders around the world see the Forex market as an investment opportunity? We will try to answer this question in this article। Also we will discuss come differences between the Forex market, the stocks market and the futures market.
Some of the benefits of trading the Forex market are:
Superior liquidity.
Liquidity is what really makes the Forex market different from other markets. The Forex market is by far the most liquid financial market in the world with nearly 2 trillion dollars traded everyday. This ensures price stability and better trade execution. Allowing traders to open and close transactions with ease. Also such a tremendous volume makes it hard to manipulate the market in an extended manner.
24hr Market.
This one is also one of the greatest advantages of trading Forex. It is an around the click market, the market opens on Sunday at 3:00 pm EST when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminates operations. There are transactions in practically every time zone, allowing active traders to choose at what time to trade.
Leverage trading.
Trading the Forex Market offers a greater buying power than many other markets. Some Forex brokers offer leverage up to 400:1, allowing traders to have only 0.25% in margin of the total investment. For instance, a trader using 100:1 means that to have a US$100,000 position, only US$1,000 are needed on margin to be able to open that position.
Low Transaction costs.
Almost all brokers offer commission free trading. The only cost traders incur in any transaction is the spread (difference between the buy and sell price of each currency pair). This spread could be as low as 1 pip (the minimum increment in any currency pair) in some pairs.
Low minimum investment.
The Forex market requires less capital to start trading than any other markets. The initial investment could go as low as $300 USD, depending on leverage offered by the broker. This is a great advantage since Forex traders are able to keep their risk investment to the lowest level.
Specialized trading.
The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main investments (85% of all trading transactions are made on the seven major currencies). Allowing us to monitor, and at the end get to know each instrument better.
Trading from anywhere.
If you do a lot of traveling, you can trade from anywhere in the world just having an internet connection.
Some of the most important differences between the Forex market and other markets are explained below.
Forex market vs. Equity markets
Liquidity
FX market: Near two trillion dollars of daily volume.
Equity market: Around 200 billion on a daily basis.
Trading hours
FX market: 24hr market, 5.5 days a week.
Equity market: Monday through Friday from 8:30 EST to 5:00 EST.
Profit potential
FX market: In both, rising and falling markets.
Equity market: Most traders/investor profit only from rising markets.
Transaction costs
FX market: Commission free and tight spreads.
Equity market: High Commissions and transaction fees.
Buying power
FX market: Leverage up to 400:1.
Equity market: Leverage from 2:1 to 4:1.
Specialization
FX market: most volume (85%) is made on major currencies (USD, EUR, JPY, GBP, CHF, CAD and AUD.)
Equity market: More than 40,000 stocks to choose from.
Forex market vs. Futures market
Liquidity
FX Market: Near two trillion dollars of daily volume.
Futures market: Around 400 billion dollars on a daily basis.
Transaction costs
FX market: Commission free and tight spreads.
Futures market: High commissions fees.
Margin
FX market: Fixed rate of margin on every position.
Futures market: Different levels of margin on overnight positions than day time positions.
Trade execution
FX market: Instantaneous execution.
Futures market: Inconsistent execution.
All this makes the Forex market very attractive to investors and traders. But I need to make something clear, although the benefits of trading the Forex market are notorious; it is still difficult to make a successful career trading the Forex market. It requires a lot of education, discipline, commitment and patience, as any other market.
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