Anyone that has investigated forex trading on the Internet knows that it is an industry full of scams. If you were to believe the outlandish claims made by many on the internet, you might be mislead into thinking that forex trading is easy, and that it you can be profitable by simply making one easy payment of $99.95. As someone that has traded for a long time, I can tell you that this certainly isn't the case.
It is possible, however, to make a significant amount of money from the market, but your approach has to be grounded on solid underlying principles and an understanding of market dynamics. The first step of the process is to figure out what kind of trader you are most suited to be.
Most people either trade technically, fundamentally, or a combination of both. Technical traders base their market decisions primarily on price, and its graphical representation on charts. They often use indicators based on price to further define their entries and exits in the market. However, you must remember that these are merely tools; in the end, you should spend a significant amount of time learning how the market works, and trying to determine periods of what you believe to be non-random behavior. Once you have identified such periods, you can refine them into your market edge, and then figure out how to consistently capture that enough to be profitable.
Fundamental traders, on the other hand, base their market decisions on macroeconomic trends and forecasts. For instance, a fundamental trader would sell the dollar if they believed that it should get weaker, based on their assessment of global economic factors. They aren't often as concerned as technical traders with the current market price, believing that the market will ultimately move to reflect their understanding of these economic factors. Those that trade on this basis often take longer-term positions than the technical traders, since the fundamentals can often take sometime to properly manifest themselves.
Many people combine both types of analysis to make their trading decisions. For example, someone might only trade in the direction that confirms their fundamental assessment of the market, but will determine their specific entries and exit positions based on price through technical analysis.
Obviously, this only scratches the surface of what someone should learn to be a successful forex trader. Money management is another significant factor. You should learn about appropriate position sizing, to ensure that you will not lose more than a specified amount on any given trade. Risking too much of your capital on a couple trades is one of the main reasons that people lose a lot of money. Finally, it is extremely important to realize that no position is ever a sure thing, and the market can always move against you, even in a trade that you are completely certain will go in your direction. If you have respect for that concept - and are following a consistent strategy based on an understanding of market dynamics - you will have a much better chance of being successful.
Thursday, August 5, 2010
Friday, April 30, 2010
What is CFTC ?
The Commodities Futures Trading Commission (CTFC) has noted an increase in the amount of foreign exchange plots over the last few years as FX trading has increased in popularity. The information in this article will provide you with some useful tips to help you recognize some of the forex plots that are out there today.
Congress created the Commodity Futures Trading Commission (CFTC) in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the United States. The stated mission of the CFTC is to protect market users and the public from manipulation, fraud and illegal practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and sound financial futures and option markets.
CFTC is legally in charge of regulating the foreign exchange market of US. The CFTC works to ensure the integrity of the commodity and financial futures markets. It protects the public and market users from fraud, manipulation, and abusive practices while fostering an open marketplace for trading commodity futures as well as foreign currency.
Congress created the Commodity Futures Trading Commission (CFTC) in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the United States. The stated mission of the CFTC is to protect market users and the public from manipulation, fraud and illegal practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and sound financial futures and option markets.
CFTC is legally in charge of regulating the foreign exchange market of US. The CFTC works to ensure the integrity of the commodity and financial futures markets. It protects the public and market users from fraud, manipulation, and abusive practices while fostering an open marketplace for trading commodity futures as well as foreign currency.
Trading in the Interbank Market
Interbank Market
The Interbank market it usually used for high level Forex trade and accessed by top level banks and financial institutions. Forex currency trading that involves the Interbank market can be extremely insecure and un-regulated. The entire currency transaction is done over a very loose network, making it extremely easy for you to lose money. Dealing in Interbank market is the perfect recipe to court trouble and disaster. If anybody proposes a scheme which involves the Interbank market, it would be best to stay away from it.
Study the video
How To Trade On Margin?
Trading on Margin
If you are a newbie to the world of Forex currency trading, avoid trading on margin. It takes a while to understand exactly what it means and entails and scamsters rely on this to fool gullible customers. Unless it is executed properly, margin trading is a very high risk strategy that can swing either way - you may end up making a lot of profit, or you could end up losing all your money. If you have a 50% margin, you can buy double the amount of stocks that you could with just the initial value of cash in your account. It goes without saying that if there are losses, you are liable to pay an amount that far exceeds the actual amount in your account.
Study the Video
The Intelligent Trader
No Financial Risk Involved
The ground rule of Forex currency trading is that a certain amount of risk is involved. The nature of the business is such that risk is almost expected. Therefore, companies that are inclined to downplay risks with an air of nonchalance, or do not show you the risk disclosure statements readily are surely out to fool you. Another thing to look out for is a person who asks you to use money that you can't afford to part with. Any intelligent trader knows the importance of diversifying investments. When you come across someone who wants to put all the eggs in one basket, you'd better keep the eggs secure and look for another basket to put them in.
Study the Video
The ground rule of Forex currency trading is that a certain amount of risk is involved. The nature of the business is such that risk is almost expected. Therefore, companies that are inclined to downplay risks with an air of nonchalance, or do not show you the risk disclosure statements readily are surely out to fool you. Another thing to look out for is a person who asks you to use money that you can't afford to part with. Any intelligent trader knows the importance of diversifying investments. When you come across someone who wants to put all the eggs in one basket, you'd better keep the eggs secure and look for another basket to put them in.
Study the Video
PayPal
PayPal does not have the necessary distinguishing tools and it normally acts as a financial middleman between the consumer and the merchant - routing the money from the internet credit transaction to the bank account of choice. All the scammers have to do is pay the nominal fee for the online banking charges and sit back and wait for the money to come rolling in.
When the money comes in, there is a tracking system within their website that alerts them of a sale and they send a single representative to withdraw the money immediately, making sure that the transaction is quick. In a matter of a few weeks or even days, the account is sometimes either left dormant or even closed - in sync with the closure of the website or service that they provide. Then the cycle happens all over again to someone else.
Study Paypal Account
A new website is set up in some remote ISP, and bank accounts are then created. It is quite easy to spot a scammer's website from the real deal and because of their modus operandi, one check on the length that their website has been up is a good way to sniff them out. Make sure you check their company names; sometimes reliable companies do set up satellite websites to increase their internet coverage on the web, so make sure you do not confuse the two.
These websites also make unrealistic guarantees about your investments; and if it seems too good to be true, it usually is. There is no magic formula for you to make millions overnight, if that were the case, why are these people setting up a website instead of investing themselves? These are some of the ways to distinguish a Forex scam from the real deal and as you can see, it is pretty easy to spot them out. The internet and its own review system are there for a reason - to ensure that these scammers do not last long.
When the money comes in, there is a tracking system within their website that alerts them of a sale and they send a single representative to withdraw the money immediately, making sure that the transaction is quick. In a matter of a few weeks or even days, the account is sometimes either left dormant or even closed - in sync with the closure of the website or service that they provide. Then the cycle happens all over again to someone else.
Study Paypal Account
A new website is set up in some remote ISP, and bank accounts are then created. It is quite easy to spot a scammer's website from the real deal and because of their modus operandi, one check on the length that their website has been up is a good way to sniff them out. Make sure you check their company names; sometimes reliable companies do set up satellite websites to increase their internet coverage on the web, so make sure you do not confuse the two.
These websites also make unrealistic guarantees about your investments; and if it seems too good to be true, it usually is. There is no magic formula for you to make millions overnight, if that were the case, why are these people setting up a website instead of investing themselves? These are some of the ways to distinguish a Forex scam from the real deal and as you can see, it is pretty easy to spot them out. The internet and its own review system are there for a reason - to ensure that these scammers do not last long.
Currency Trading Tutorial
The daily changes are determined by your agent or financial institution. When I read your statements and learning more about your account, you will find that each type of coin three letters to represent that currency.
For example, U.S. dollars is USD, JPY is the Japanese yen and the pound sterling will read as GBP. You'll also find that for every transaction on your account listing you will see information that looks like this: JPYzzz / GBPzzz. This means that you took their money and the Japanese yen invested in something that the British pound in the market. You will find many transactions from one currency to another if you have money that is dispersed throughout the currency market.
The market for foreign exchange trading firms are investment management companies you can trust your money. You want to find a company that has been dealing with foreign exchange trading since the early seventies, and not just someone new on the block so you get the most for your hard earned money.
It is important to beware of companies that are emerging on the Internet, often from foreign countries stating that you can get involved in trade and foreign exchange markets. Read the fine print, and know who you are dealing with the greatest possible protection.
If you are interested in trading on the currency market, are the spending limits are different from company to company. Many times you will learn that you need a minimum of $ 250 or $ 500, while other companies will have $ 1000 or $ 10,000. The company is trying to set limits on the amount you need to open an account with your company.
The scams that are online will tell you that you need only a $ 1 or $ 5 for opening an account, but you need to learn more about this company and they are doing business before investing money, this is for their own protection while dealing in trade and foreign exchange markets online.
For example, U.S. dollars is USD, JPY is the Japanese yen and the pound sterling will read as GBP. You'll also find that for every transaction on your account listing you will see information that looks like this: JPYzzz / GBPzzz. This means that you took their money and the Japanese yen invested in something that the British pound in the market. You will find many transactions from one currency to another if you have money that is dispersed throughout the currency market.
The market for foreign exchange trading firms are investment management companies you can trust your money. You want to find a company that has been dealing with foreign exchange trading since the early seventies, and not just someone new on the block so you get the most for your hard earned money.
It is important to beware of companies that are emerging on the Internet, often from foreign countries stating that you can get involved in trade and foreign exchange markets. Read the fine print, and know who you are dealing with the greatest possible protection.
If you are interested in trading on the currency market, are the spending limits are different from company to company. Many times you will learn that you need a minimum of $ 250 or $ 500, while other companies will have $ 1000 or $ 10,000. The company is trying to set limits on the amount you need to open an account with your company.
The scams that are online will tell you that you need only a $ 1 or $ 5 for opening an account, but you need to learn more about this company and they are doing business before investing money, this is for their own protection while dealing in trade and foreign exchange markets online.
Trade in Automated Forex
Study the Video.
Automated forex software will work with all types of forex broker platforms and at the same time they will also work with any type of currency with which you trade.
The forex software will work on any type of the forex broker platform and can also work with ant type of currency with which you trade.
This provides you the flexibility to trade forex with the forex software round the clock 24/7 with all the currencies. You can trade USD/EUR in the morning and with other currencies in the night which ever forex market that runs at that time.
Automated forex software will work with all types of forex broker platforms and at the same time they will also work with any type of currency with which you trade.
The forex software will work on any type of the forex broker platform and can also work with ant type of currency with which you trade.
This provides you the flexibility to trade forex with the forex software round the clock 24/7 with all the currencies. You can trade USD/EUR in the morning and with other currencies in the night which ever forex market that runs at that time.
Forex Signal
Forex Signals dDo's and Don't.
you don't exactly follow what the vidoe is all about, just pick-up the goods and most reliable information for your own good when studying it.
Generally, many of the traders subscribe for the forex signals with forex signal providers. Generally, on a per month basis the forex signal providers will charge you around $100 or even more than that to provide signals.
At the same time the forex signals they provide are not reliable. If you go for and automated forex system, they will provide you the forex signals and make the trades for you. As forex software is a one time purchase you will save a lot of investment in the long run.
you don't exactly follow what the vidoe is all about, just pick-up the goods and most reliable information for your own good when studying it.
Generally, many of the traders subscribe for the forex signals with forex signal providers. Generally, on a per month basis the forex signal providers will charge you around $100 or even more than that to provide signals.
At the same time the forex signals they provide are not reliable. If you go for and automated forex system, they will provide you the forex signals and make the trades for you. As forex software is a one time purchase you will save a lot of investment in the long run.
What Is Forex?
Forex market is very lucrative and exciting.
Daily around $3 trillion transaction takes place in the forex market. Because of its high liquidity it offers, many traders make huge profits in the forex market. But one thing to note is that around 90% of the traders fail to make profits and at the end of the day they end up with loss.
Type Of Charts For Beginners
The Candle Stick Charts
This is because that they might not have enough knowledge on trading or they might not being able to analyze the forex market correctly. In the olden days, the traders used to analyze the markets based on the trend charts, pivot points, moving averages, Elliot wave methods, Japanese Candle Stick Charting, etc. All the above mentioned methods are all mathematical methods (also called mathematical algorithms) which are used to analyze the forex markets.
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