forex | forex signal | forex strategy system | currency trading Posted By : Maco
Exchange of a nations currency for that of another is Foreign Exchange (FOREX). The foreign exchange market is a largest non-stop financial market in the world where currencies of different nations are traded. This Forex market is bigger than three times the aggregate amount of the US Equity and Treasury markets combined.

How To Get Started In Forex Trading
You may have been hearing about the foreign exchange market (FOREX) and the investment advantages it offers. You would like to try it out, but don’t know where to start. This short guide will give you the basics in FOREX and tell you what you need to participate in this fast growing field.

Foreign exchange used to be limited to large players such as national banks and multi-national corporations. In the 1980’s the rules were revised to allow smaller investors to participate using margin accounts. Margin accounts are the reason why FOREX trading has become so popular. With a 100:1 margin account, you can control $100,000 with a $1,000 investment.

FOREX is not simple, however, and education is needed to make wise investment decisions. Although it is relatively easy to start trading on the FOREX, there are risks involved, so finding out as much as possible about the market is a good move for any beginner.

FOREX traders usually require a broker to handle transactions. Most brokers are reputable and are associated with large financial institutions such as banks. A reputable broker will be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

Opening a FOREX account is as simple as filling out a form and providing the necessary ID. The form will include a margin agreement that states that the broker can interfere with any trade it deems to be too risky. This is to protect the interests of the broker ? most trades, after all, are done using the broker’s money. Once your account has been established, you can fund it and begin trading.

Many brokers have different types of accounts to suit the needs of individual investors. Mini accounts allow you to get involved in FOREX trading for as little as $250, while standard accounts may have a minimum deposit of $1000 to $2500 depending on the broker. The amount of leverage ? using borrowed money ? varies with accounts. High leverage gives you more money to trade for a given investment.

HOWEVER ? beginner traders are advised get accustomed to FOREX by doing paper trades for a period of time. Paper trades are practice transactions that don’t involve real capital. They allow you to see how the system works while learning how to use the various software tools that are at provided by most FOREX brokers.

Most online brokers have demo accounts that allow you to make free paper trades for up to 30 days. Every new FOREX investor is strongly advised to use these demo accounts at least until they are showing consistently steady profits.

Each broker has their own set of software tools to aid in making transactions, but there are a few tools that are common to all FOREX brokers. Real time quotes, news feeds, technical analyses and charts, and profit and loss analyses are some of the features you should expect to see on most online brokers’ web sites.

Almost every broker operates on the Internet. To access their online services you should have a reasonably modern computer, a fast Internet connection, and an up-to-date operating system such as Windows XP. Once your account is set up, you can access it from any computer ? just enter your account name and password. If for some reason you are not able get access to a computer, most brokers will allow you to make trades over the phone.

Trades are commission free, meaning that you can make many trades in one day without worrying about incurring high brokerage fees. Brokers make their money on the ’spread’ ? the difference between bid and ask prices.

This article provided courtesy of <a href="http://www.day-trader-futures.com" target="_blank">http://www.day-trader-futures.com</a>

The FOREX Market- Trade with your head not your heart!
Sounds simple right? In actuality, this is the number one reason why day traders lose their shirts. They let their emotions get the best of them and end up doing something real stupid. Trust me I ve done it. When trading currency, you need to take yourself away from the platform and look at your trades in actual bills not numerical values on a computer screen. For example, let s say you short the USD/JPY for a 50 mini-lot right before a data release and it tanks. The USD/JPY goes down about 50 some odd pips and now you re up $2500 in about thirty seconds. Now, if you were smart, you would close the position and take your profit, but you re not and you decide to let it ride. The market goes down about another 10 pips. So, now you re up $3000 and you still won t close it. You think that it s going to keep tanking and that you could make 5-6k on this one trade wishful thinking. All of sudden the market retraces and shoots back up 20 pips, your still up about $2000, but now you tell yourself, I ll wait until it goes back down a few pips and then close it. Too late, the market ignites and now you re break-even and then you re negative. In the end you take a $500 loser, which isn t too bad, but considering you were up $3000 it s like you lost $3500. Now, let s pretend you did this same trade with actual, physical dollar bills. Now or days most people trade from a three wide spread, so let s say that you gave a trade booker $150 cash to place a short USD/JPY 50 lot. The data is released and this man keeps giving you $50 bills and before you know it you have $3000 in your hands. In order to keep this money all you have to say is close. You decide to press your luck and wait and the market continues to trend down and now you have $3500 cash. All of sudden, the market begins to retrace and this nice young man starts taking $50 from you each pip it retraces. How many pips does the market have to retrace before you say close? Maybe, ten pips? Once you saw actual dollar bills being taken away from you, you would throw in the towel. So, how does one improve their money management skills? First of all, realize that you are trading real money. I m sure you realize that the money you are trading is real money, but do you conceptualize it? When you make a few hundred or a few thousand dollars trading, do you feel like someone just handed you cash? Of course not! Every time you re trading, no matter if you are profitable or not profitable visualize and grasp the outcome. Don t just watch your balance and equity fluctuate; you need to relate your loss and gains to every day life. For example, let s say you have a 10k account and in the first week you doubled that to 20k. You need to step back and understand what you just accomplished; you just made 10k in one week by sitting in front of your computer and trading currency. Now, let s take that money and put it to everyday use. If you were handed a free 10k, what would you do with the money? Would you pay of some debt, by a car, put money down on a home, go on a vacation, put it towards school, I think you get the gist. All I m saying is that 10k is yours, you own it and there is no reason you have to keep in the FOREX. You are that 10% that succeeded this week, but the law of averages states that you are most likely to be the 90% next week. If not next week then the week after and if not then, eventually you will. If you invest 10k and your account doubles to 20k, why would you pull out 15k leave in 5k and go for the gusto? If you lose your remaining 5k who cares you still made 5k in a week at your computer. Tell me another investment where I can make 50% on a 10k investment in one week. Turn around the following week pull my initial investment and my profit and still have 5k to play with. If I hadn t experienced this first hand then I would have never believed it. DO NOT GIVE YOUR WINNINGS BACK TO THE MARKET! It s not worth it.

http://www.myfxsecrets.com

George Lane Still Trading Off Stochastics at Age 75 Posted By : Martin Chandra
George Lane completed his 47th year of trading in December 1996 and is still going strong. After many years of trading in the grain pits in downtown Chicago, Lane has shifted to screen trading during his “retirement” in a small community about 80 miles south of Chicago.