Posts Tagged forex
Forex Trading – Lose More than Invested
Thanks to margin, today online forex trading is available to any investor. Margin allows a trader to control 100 – 500 times more the amount of money actually deposited. When there is a chance of profit, there is also a possibility of loss. By borrowing sums that a trader doesn’t actually possess, is it possible to lose more money than invested? Is there a possibility of negative balance? Can you end up owing a large sum of money to forex brokers? And if so, how can you protect yourself from it?
Full article about Losing more then invested here
Add comment December 7, 2009
Forex Risk Management & Discipline Tips
Add comment February 1, 2009
Almost 60% of Forex Traders are Full-Time Traders
Since forex trading is an online investment, traders seem to be barely noticeable and few in comparison to other market investors. The truth is that forex trading is catching more and more attention these days and “full-time trader” becomes an acceptable and recognized profession.
Add comment January 7, 2009
Forex Trading – How Much Can You Earn?
Foreign currency exchange market is an attractive and lucrative online investment opportunity. More people worldwide are trying out their skills and luck in forex trading. And who can really blame them?
Online currency exchange is a golden door to cash balance where currencies are traded simultaneously for one another, to flexibility where every financial world headline plays an important role in decision making, to financial freedom where you can make thousands in minutes sitting next to your computer at home! The question many ask is how much do forex traders really earn? Assuming that the average forex trader is responsible, serious, well-read and patient, what is the average profit? And what factors play important role in earning cash in forex trading?
Full article and results from monthly poll “maximum forex trading profit” can be found here – http://www.forexexplore.com/blog/viewpost/496.html
(Source: ForexExplore.com - Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog. Find top forex brokers, free demo accounts and much more. )
2 comments November 2, 2008
Forex Trading – To Trade or Not To Trade?
The economic history is twisting, mutating and breaking down. Global financial system is at crisis and the government is the worse source to trust with an advice. This is my call to all forex traders. We have to understand what global recession will do to us, since volatility has been intense and this is only the beginning. The strategies that used to work before are breaking into thousand pieces. Things are changing in forex trading market and we have to adopt in order to ensure our economical survival, which highly depends on the risk management.
Global crisis has turned forex trading into the battle of gladiators. The bad news is that the danger is on every corner. The good news is that a crisis like that brings up profit opportunities. The question is how to get to it.
We are all trying to find out how to benefit from the market today. Some hope that things will return to “normal”, others see profits in the current trends of market direction. After all, the lack of confidence has not been repaired as promised and markets keep falling further down.
During economic crisis we are all suffering should we, forex traders, wait until the storm cools down and play the “normal” market via demo account? Should we quit forex trading for a while? Is it possible to profit in the market that doesn’t follow any rules?
Full Article – http://www.forexexplore.com/blog/viewpost/471.html
(Source: ForexExplore.com - Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog. Find top forex brokers, free demo accounts and much more. )
Add comment October 16, 2008
Forex Trading – Can You Still Trust Banks Or Is It Time to Buy A Safe?
Banks won’t survive without our trust. The whole system functions on a promise to keep our money safe and to give it back to us when needed. Keeping your money in the secure financial institution sounds so much safer than under the mattress in your apartment. The question is, are your money really safe especially now when the whole world is experiencing the strongest economical tsunami? How do banks really work?
The basic idea is that we deposit our money into banks with an illusion that your money is untouched and much safer than at home. After all, chances of your house being robbed are much higher than the bankruptcy of the bank (or so it was until now!).
In reality, though, under the promise to return the money the bank gives loans to individuals, businesses and other banks. By charging the loaner interest rates, the banks earn profits. You, as a depositor, receive the smallest portion of those profits – interests. Speaking of interests, it is also called the price of money because this is what banks pay to us (depositors) to keep our trust.
So theoretically speaking, at the time of global doom that we are facing in financial world, is it possible that at some point the bank might not have your money at all?
Continue reading here – http://www.forexexplore.com/blog/viewpost/463.html
(Source: ForexExplore.com - Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog. Find top forex brokers, free demo accounts and much more.)
Add comment October 12, 2008
Important Tips For Newbies in Forex Trading
The process of becoming a forex trader is full of twists and turns and it definitely doesn’t happen overnight. To obtain professional trading skills might take just as long as you would expect to become a well-known lawyer, a best-seller book writer or a top-notch computer programmer. Yes, I am talking about years and years of learning and experience.
Success walks hand in hand with forex trading. Your efforts to learn and improve trading skills are the key. Comparing forex trading to other meaningful professions gives an important insight – trading is like an abstract painting. It is an art without rules, without exact features. Forex trading is an art of changes and volatility.
Learning and mastering the fundamentals of trading will later on help you to create your own strategy. You will develop your own reactions and adjustments to the trading circumstances of forex market. It’s not the style that matter, but the level of preparedness you have got to deal with the changes.
It might look boring and unworthy, but let me reassure you that time and practice invested in forex trading pays off. Your patience and improvement will grow each day and over time you will find the success beyond your expectations.
In my opinion, it is better to learn everything you can yourself before you start asking questions. Not that questions are bad for you and there are many great communities and traders eager to help newbies but not everyone on the internet is qualified to give advices. Some answers can be harmful to a new traders’ mind! Besides, don’t try to skip through steps. You can’t expect to enroll to university and ask the questions related to third-year disciplines. You simply won’t be able to understand the answers! It’s like trying to dance ballet without ever exercising!
Speaking of questions, I think that in order to become a successful forex trader you have to understand yourself. Understanding your purpose and limitations can help you figure out your risk tolerance, money management techniques and trading methods. To do so I suggest asking yourself these questions:
continues here: http://www.forexexplore.com/blog/viewpost/455.html
(Source: ForexExplore.com - Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog. Find top forex brokers, free demo accounts and much more. )
Add comment October 9, 2008
Forex Trading – Survive The Credit Freeze and Wide Spreads
The trading market is dynamic, exciting and in many ways unpredictable. It is always changing its face and a forex trader must find a way to not only survive, but also make a living. What happens to us now when the economy went wild?
We have entered a truly troubled era. During the latest economic turbulence we are experiencing the credit market freeze all around the world. The credit chaos is not an over-night result. It is a pure outcome of overleveraging years after years, after years. The damage is enormous and we can only hope for the best.
Many of us are wondering about the trading future. My guess is that the price movements will depend largely on the attempts to reincarnate the credit market and “disengage” the global recession. Forex traders will keep a watchful eye on the Fed for the global interest rate cut. The institutions will focus on de-leveraging and forex will be the safest option not to lose money, compared to other equities, commodities and stocks. Be ready for some changes – it will take a while for the credit mess to clear up.
Have you noticed the change in bid/ask spreads and swap rates? Seems like all the spreads are much larger than they once were. I am pretty sure the gap wasn’t as wide couple of month ago!
No, it isn’t just a bad dream. Wider spreads are not the only side affects forex traders have to deal with. Many forex brokers changed their interest policies and charge you regardless the direction of your position.
Let me make it clear though, that it isn’t a new form of scam – your trusted forex broker isn’t cheating! The problem is much deeper, behind the scenes where the big boys play. Banks are no longer lending or giving credits to each other and that is a reason for the crazy volatility you see in the market these days.
Can you see the connection between volatility, no bank-to-bank loans and wider spreads? The only way for spreads to come back to normal would require much less volatility, which depends on banks allowing credits to each other. Since a lot of financial institutions have decided to stay low there is less liquidity and therefore the spreads simply can’t be as tight as they were once upon the time.
When will things go back to normal? Great question with no predicable answer, I am afraid. Let’s hope that the credit freeze will defreeze soon and we can all get back to our happy trading lives.
Despite the economic mess, in my opinion, forex trading is the only safe investment opportunity. After all, if you make profits in forex, you get your cash right away – no waiting period, no ownership and a promise of money in the long run. I choose to hold cash in my hands whenever possible. Forex trading is still my number one profession.
(Provided by http://www.forexexplore.com – Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog. Find top forex brokers, free demo accounts and much more)
Add comment October 7, 2008
What is Swapped During Forex Swap?
Swap is a forex trading term and it means a real-time purchase and sale of the same amount of a selected currency for two different dates for the sale and purchase of another selected currency.
Forex swap is in a way a borrowing mechanism. You basically borrow one currency while lending another for a selected period of time. In other words swap is interest rates for the currency pairs you sell or buy. Depending on the pair, you may either earn or pay swap interests.
Forex swap means that you can buy/sell a base currency today and sell/buy that currency sometime in the future. For example, let’s say you bought fixed amount of Euro for Dollars and sold those Euro 3 months afterwards for Dollars. This is defined as Euro Swap.
So, how can forex swap help you profit? Consider an example:
Let’s swap US Dollar and Euro. Forex trader enters a swap and buys $100,000 with exchange rate of $0.1 per euro (yeah right! It’s just an example!). At the same time, another trader agrees to sell in 3 month the same $100,000 dollars to buy Euros at the exchange rate of $0.09. During this trade the trader makes up to 50,000 euro profit because the value of dollar changed.
In other words, forex swap is when the trader and the broker trade one currency for another at an agreed rate and then convert those selected currencies back at a selected date in the future, at the previously agreed exchange rate. The common forex swap involves the combination of a spot transaction and a forward transaction.
Read on here: http://www.forexexplore.com/blog/viewpost/448.html
(Source: http://www.forexexplore.com)
1 comment October 5, 2008
Who Is Involved In Forex Besides You and Forex Broker?
When you trade forex it feels that the whole world is focused on you and maybe a little bit on your forex broker. In reality forex market consists of much larger entities than 1 profit-thirsty trader and spread-seeking forex broker. Today’s topic of discussion is who is involved in forex trading and why should you care?
We are definitely not alone in forex market and it is wise to get up close and personal with the players behind the scene.
1. Federal Governments and Central Banks
Federal governments and central banks play major role in currency exchange. These two are like dancing couple, making extravagant moves along the forex market hand in hand. Government representatives meet up with Central Banks representatives regularly to discuss the money issues. And even if others may argue, federal governments and central banks always seem to be in agreement with each other. After all, these forex players are able to manipulate forex market in order to meet any kind of economic agenda.
There are 3 more major participants in forex trading. Read about them here – http://www.forexexplore.com/blog/viewpost/424.html
(Source: http://www.forexexplore.com)
Add comment September 18, 2008
