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Friday, October 30, 2009

Forex Investing - Will It Work For Me?

By John Eather

First of all, just what is Forex? The Forex (Foreign Exhange Market) is something that many individuals throughout the world use. It is referring to the international market and it started during the 1970's. This is where currencies are purchased and sold. Within this article, we are going to be discussing forex investing, so that you can see if it is right for you.

What currency is being traded on the forex market today? There are many different currencies that are being traded, but some of the most popular are: Swiss franc, pound, Canadian dollar, Yen, Aussi and he Euro. When it comes to each one of the currency pairs, the first one is referred to as being the base currency, while the second one of the quote currency or the counter currency.

You should think of forex trading as a game, so do not invest money that you are supposed to use towards rent, food or anything else along that line. Many of the investors out there today start off by trading a small margin and then investing the small profits they made into the trade. With this approach, it is fine for short term, but if you are looking towards making big money, it isn't going to work. Would you like a better approach?

Why are we telling you this? Are we trying to persuade you away from it? No, we're not trying to persuade you away from it, but it's all about risks. So many people turn to forex investing, they put every last dime into it; even money they should use to pay for rent. In the end, some of them end up losing all of the money and they are left with no money for rent. You should be prepared to lose the money you put into forex.

Many will tell you to start small when you are putting money on the trading game, but really, you should start big. That's right, if you want to earn big money, then you have to put big money into the game. However, you should only take this approach if you can afford it. A key reminder: don't go putting money on forex investing that you cannot afford to lose. - 23212

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Forex Roboteer - A Comprehensive Independent Review!

By Howard G. Platt 111

If you have heard of Robert Parsons in the online forex market, then you probably are aware of how successful his automated trading forex systems have been. Well, now he has made another great leap in making it easier and faster to do successful trading.

He has fifteen years of experience, and he calls his new robot the "Forex Roboteer", and he describes it has having the ability to run a "fully automated black box Forex Trading Robot".

Robert became tired of manual trading in order to maintain and increase his daily trading quotas. He also became tired of watching his computer screen at every waking moment to see changes in the trading market. Optimization had to be done on a regular basis, sometimes more than once a month. So what could he do to continue his income and trading improvements yet achieve more free time and avoid the constant watch?

This robot is designed to do what Robert needed: tracking of broker performance, stealth alerts when needed, and the ability to "trail the stop" (manage and watch open trades). These are all requirements in his opinion as they result in the easiest and greatest numbers.

Robert Parsons know that his products work, so the Forex Roboteer is offered here and now for $97 and a $47 upgrade to the monthly automated optimization function. The normal price for the Forex Roboteer alone is $297. This beauty is also iron clad with a money back guarantee, and gives lifetime free updates!

The Roboteer E-book, which is the EA copy, is offered here also, along with a free trial Meta Trader account. The license is for a live account, and a full subscription to the Fellow Traders Newsletter.

You will have access to an instant download after your payment, and the trial is for an incredible 56 days or eight weeks!

There are practicing options for the new online trader, and the experienced online trader will rejoice at the added free time as a bonus of the fully automated trading software and at the optimization procedures! Robert Parsons knows what he is talking about, and he knows what traders want and need, as he is one himself. Get started now and watch your trading world and successes take off literally overnight! - 23212

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4x Currency Trading & Everything About It!

By James Tolleti

Traders are finding that one of the easiest markets to enter is the 4x currency trading market. The volume of transactions in the segment is exploding. Over $4 trillion is traded daily. It is a very liquid market making it easy to buy and sell. The arena itself is a high risk form of trading. Leverage is used that can multiply gains or loses. This means only a small amount of each trade is required to actually be deposited. If a trade is profitable the gains are high. However, if a lose is realized it can be much larger than expected.

To make a profit by trading in currencies it is necessary to accurately predict the direction of a currencies price movement just as it is with any other type of trading. Buy the currency if prices are expected to rise so it can be sold at a higher level later. The spread between the prices is the profit. If the currency price is expected to decline in the near term, sell it first with the goal of covering the position by buying it back at a lower price later. Currencies trade in pairs. The four most common pairs are the USD/euro(dollar/euro), GBP/USD(British pound/dollar), USD/JPY(dollar/Japanese yen) and the USD/CHF(dollar/Swiss franc).

There are all types of participants in the 4x currency trading market. The top trading level is that of the inter-bank market. This group consists of the largest investment banks. They have access to the best execution prices in the market. The reason for this is that they trade huge volumes of currencies daily. Prices for a specific currency will differ at different levels of trading as well as different locations. These differences are generally not large though. The banks primary objective is to trade for themselves in a profitable way, although they do trade for their customers also. They are over 50% of the daily volume.

The Federal Reserve and the European Central Bank as well as other central banks are active in the 4x currency trading market. Their objective in buying and selling currencies is to counteract world events that may affect inflation and other conditions in their countries.

One of the most rapidly growing groups in the currency markets are hedge funds. These are funds primarily intended for higher net worth clients. The funds are permitted to trade in a more aggressive manner than most mutual funds. Trades for speculate purposes is thought to be over 70% of the market volume.

Having an understanding of the things that move currency prices is critical to making money in the market. Some things that will affect prices of a particular currency are the inflation expectations of that country. Moves in interest rates can have an impact. Employment levels and levels of deficits or surpluses of a government cause prices to change.

Becoming a success in the currency markets is not easy. Transactions take place constantly. Markets are open 5 days a week, 24 hours a day. The ability to make fast decisions is an absolute must.

Finally, trading profitably in 4x currency markets requires a lot of hard work. Having a high level of understanding of the factors that move the market is important. Having a level head in making trading decisions is also helpful. - 23212

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Different Stop Loss Orders

By Ahmad Hassam

Never ever trade without a stop loss in place, this is the most important lesson a trader needs to learn from the very start of the trading career. Risk management is an important part of any trading decision. One important way to control your trading risk is by setting stop loss exits. A stop loss exit is a practical tool used in risk management. However, there is an art of developing the right stop loss exit strategy.

On the one hand, you dont want to get too liberal with your stops that you never lock in a profit. On the other hand, you dont want to set too tight stops that you constantly get bumped out of the market.

Entry and exit for each trade is very important. Your exits must be carefully coordinated with your entries. The topic of setting stop loss exits generally falls under the heading of trading systems. This is a trading skill that you can only learn with experience.

There are a variety of stops that you can incorporate into your trading system. The following sevens are the most valuable:

1. Initial Stop: This stop is identified before you enter the market. This is the first stop set at the very beginning of the trade. The initial stop is also used to calculate your position size. It is the largest loss that you are going to take in the current trade.

2. Trailing Stop: Trailing stops develop as the market develops. The trailing stop lets you lock in profit as the market moves in your favor.

3. Resistance Stop: Trend is your friend as long as you ride it in the right direction. A resistance stop is placed just under the countertrend pullbacks in a trend. This is a form of a trailing stop used in trends.

4. Three Bar Trailing Stop: This stop is used in a trend when the market seems to be losing momentum and you anticipate a reversal in trend.

5. One Bar Trailing Stop: When the prices have reached your profit target zone, use this stop after three to five bars move strongly in your favor. This stop is used when there is a breakaway market and you want to lock in profits.

6. Trendline Stop: Use a Trendline Stop placed under the lows in an uptrend or on top of highs in a downtrend. You always want to get out when the prices close on the opposite side of the trendline.

7. Regression Channel Stop: A regression channel forms a channel between the highs and lows of the trend and usually represents the width of the trend channel. Stops are placed on the outside of the lows of the channel on uptrends and outside the highs of the channel in downtrends. Prices should close outside the channel for the stop to be taken.

If you find yourself being stopped out too frequently or if you seem to be getting out of the trend too early then most probably you are trading with a fearful mindset. Try to overcome your fear and place your stops at reasonable places in the market. - 23212

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How Can I Become A Forex Trader And Make Money?

By John Eather

There are many things to learn about how to become a Forex trader, and you will need to master the art of putting knowledge into practise with confidence and without fear. By educating yourself thoroughly, you will be able to trade confidently and successfully through the fluctuations of a volatile market.

Trading in foreign currencies is not for everyone, so think about whether it is something you really want to do. You need to be totally committed or you will succumb to fear and hesitation that could be disastrous during times of downturn. Forex trading requires courage and strong nerves.

Educate yourself fully before you try to get started. Knowledge is vital to your success, and there is plenty of information available on the internet and in bookstores. Make sure you fully understand the potential of this lucrative industry by asking questions and watching the market. Watch the strategies of the successful traders and large companies.

Like any enterprise, there are necessary tools that you will need; these include a high-speed internet connection and data feed. You can work from virtually anywhere there is an internet connection. Multiple monitors make the viewing of the many charts you will need, so that you can make informed trading decisions with confidence.

Put your knowledge into practice to create your own strategies. There are opportunities to test your strategies in live simulations; demo accounts are offered by some of the larger brokerage companies. Using these demo accounts is a recognized practice within the industry for testing new trading strategies.

You are now ready to open a trading account and start to put your test strategies into practise in the live market. Having tested your strategy, you have the necessary confidence to trade for real profit.

It is important to keep accurate records of what strategies worked and why they did, so have a trading journal for record keeping. When you have a winning strategy, keep with it to swell your bank account; come up with new strategies and test them before incorporating the into your trading account. - 23212

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