Thursday, March 27, 2008

My forex trading Reviews

Jumping Into Forex? ? Jumping Off A Cliff!

It is very, very simple: the Forex market can help make all your dreams come true or it can become a total nightmare and bleed you dry. As with anything in life, it helps to have a strategy in place to help guide present and future decisions. For Forex investors, there are a lot of options from which to choose, including:

? Scalping
? Swing
? Position
? Discretionary
? Automated

All of the investment strategies listed above have been proven effective in various ways and no doubt have a track record to back up their effectiveness. Still, Forex investing and the specific strategy used will boil down to the investor and their particular style: Hunter or Gatherer.

A hunter is very careful about every investment they make and do not like surprises. This style of Forex investing tends to favor technical analysis. Technical Forex traders sift through pricing charts and back test currency pairs to determine the pair with the greatest pip movement and the least volatility. A hunter does not necessarily believe that they will make a profit with every investment but they do believe that currency pricing momentum can be predicted from historical data. Trend Forex investors tend to favor technical analysis, are patient, and believe that the charts and disciplined investing are the surest path to success.

The gatherers, however, tend to favor fundamental analysis which involves the interpretation of how interest rates and overall economic performance (of the nations involved in the currency pair) will affect exchange rates. Scalping is a strategy of foragers and involves trying to predict currency rate fluctuations for a few hours or days into the future.

Those who believe in the foraging investing style believe that the size and volatility of the Forex market works to their advantage. For instance, when interest rate change announcements are made, foragers believe that they can predict and react to the market faster than the large players. If they predict how the information will change the exchange rates, then they should reap a profit if they can buy a position fast enough. Sudden spikes in gold prices, interest rates, oil prices?all of these things do indeed temporarily affect the markets?but can the forager really capitalize quicker than the larger players?

In truth, the odds are always going to be with the larger players?especially when it comes to having access to breaking news and then reacting to it before the rest of us! This is probably why most Forex traders are considered hunters and opt to use technical analysis to identify trends and then capitalize on them. It is much easier and safer to identify and capitalize on emerging new large trends than to try and make a quick profit guessing at the smaller trends of daily price movement. For anyone serious about success on the Forex, technical analysis, in my opinion, is the best method for making consistent profits and avoiding those horrendous cliffs!

About the Author:

Article by Kent Douglas, author of "The Simple Forex Solution: The Easiest Currency Trading System Anywhere." To learn how you too can succeed in Forex and Currency Trading, please visit

Day Trading Forex?might Be A Bad Idea!

The Forex market has understandably become one of the most attractive and popular financial markets in the world. Operating around the clock via a decentralized network of central banks, investment institutions, hedge funds, and similar institutions, the Forex market allows traders to speculate on the movement of currency exchange rates. Players of the Forex tend to like these features most:

? Round the clock action?the Forex market constantly adjusts and is open 24 hours per day between Sunday and Friday afternoon.

? Less problems with gap down (when price starts out lower than its previous ending price due to factors that occurred when the markets were closed)

? Huge leverage (can get 1:100 margins)

? High volume

? Live trading (most traders are connected to the Forex market via an Internet platform that provides them with real time exchange rates)

? Commission-free trades (but most brokers tend to get the difference between bid and ask price which tends to equal 3 to 5 tenths of a penny on most transactions)

While all of these are very attractive characteristics for any investor, the truth is that there are a lot of people who find themselves on the wrong side of a trend and suddenly in trouble because they try using day trading as an investment strategy. Day trading essentially boils down to making a series of short, small trades in hopes of making a quick profit. A rich idea with often a poor outcome.

People can and do make very good money trading on the Forex market but the most common trait of successful investors is the use of a proven investment strategy, patience, and using pre-determined stops after making certain to do your homework. The ability to understand the emergence and direction of trends through analysis is a common trait in successful Forex traders.

Because day trading often involves multiple transactions made in rapid succession in order to make a profit, it is very hard to properly analyze the day?s events and your charts. Day traders are more prone to fear-basic panic selling and other decisions that lose money and lower profitability.

Day trading is also not a good idea with the Forex market because transactions are almost always conducted at the very limit of the margins (typically 1/100, or $1,000 is all most investors have in a given Forex transaction of $100,000, or one lot of currency). Because of this, even small fluctuations in the wrong direction can and often do spell disaster for day traders.

Indeed, there are day traders out there claiming to make a good living trading Forex and they no doubt exist?but they are rare. The volatile nature of the market, the lack of information, and the extensive use of margins in Forex all combine and make day trading possibly a bad investment strategy?period.

About the Author:

Article by Kent Douglas, author of "The Simple Forex Solution: The Easiest Currency Trading System Anywhere." To learn how you too can succeed in Forex and Currency Trading, please visit

The Benefits Of Forex Trading Directory To Visitors

You probably might have known that web directories are the places that you can find various types of information. Are they different from searching for information from search engines? "Yes" could be the best answer to this question. As search engines provide internet users information and details that they are looking for, web directories do just the same thing. There are many kinds of web directories such as animal, education, forex, and sports. There comes the next question, "Then how different are they?" A good explanation is that search engines can help you find so many types of things, but web directories can do better if you need some specific groups of data as they can provide you more specific information on what you are looking for at a time.

For instance, if you are searching for some details about currency trading or forex, what search engines would give to you may be just a very long list of plenty of websites, which in reality; they should be very useful to you. Conversely, there are many times when what you get from search engines are just thousands or millions of websites that actually have nothing to do with currency exchange. They just probably contain the word ?Currency Trading? in their pages, and a lot of them do not satisfy your main purpose of searching. All they do may be just providing services to their customers, trying to sell their products, or even just mentioning about the trading. When you get lost in those kinds of websites, which are really useless to you, it means that you are wasting your time hitting the "back? button on your browser and clicking on the next links from the result of searching over and over again trying to find what you really need. You will have to waste more time screening out those useless websites which give you nothing but a lot of advertisement.

To find such websites you really want is like you are finding a diamond among million pieces of glass. If you get lucky, you would find a website that you are really looking for using only a short period of time. That would be good for you, but in reality, it does not come to you every time. People are not getting lucky all the time. Therefore, what you need is some web directories, which are Forex in this case, providing you groups of specific details. Therefore, web directories could replace the disadvantages from searching such information from search engines. Because web directories provide specific information in various categories, you can choose what to search for more easily.

What is Forex anyway? It is short for foreign exchange. Forex directory enables to give you deeper information whether they are foreign exchange, currency trading, or even brokerage. When you need to find further forex details, why would you not go to someone who is an expert on it? Forex directory is like an expert this field. It contains many and useful links and details regarding this kind of thing categorized in sets of proper categories. You will not waste time viewing any website you are not really looking for anymore. It is like a one-stop place for forex

About the Author:

David Spring is an online entrepreneur. Please visit to find more about forex.

Forex Currency Trading - The Basics

Forex is the name given to the foreign exchange market, where international currencies are bought and sold. Due to the development of free exchange rates, the market began in the 1970s and has become the world's largest financial market with a daily turnover of US$1.9 trillion. To put that into perspective, that's over thirty times the daily turnover of the rest of the US equity markets combined.

Unlike normal stock markets which are traded on exchanges that are located in a specific place, Forex currency exchange takes place via an Over The Counter (OTC) or interbank market. This means that transactions are conducted electronically between brokers.

Thanks to this and global time zones, Forex is a genuine 24 hour financial market. The day begins in Australia and moves around the globe as each of the leading financial markets open in Tokyo, London and New York. So it's always possible to find someone who is willing to buy or sell international currencies. This gives investors the chance to respond to price changes caused by a variety of economic, social and political events at any time of the day or night.

There are two main reasons for trading currency on Forex. Approximately 5% of Forex trades are undertaken by multinational companies and governments who buy or sell products and services in a foreign country and have to convert their profits into their domestic currency. Forex allows them to hedge (or protect) their profits so that in the even of a dramatic currency fluctuation, their profits won't be reduced.

However, the other 95% of Forex activity is due to people or organizations trading for short term profit. Forex allows you to trade virtually any currency, although in practice most activity (85% of total turnover) relates to the major currencies which include the US Dollar, the Euro, the Japanese Yen, the Swiss Franc, the British Pound, the Australian Dollar and the Canadian Dollar.

Trading on the Forex exchange involves simultaneously buying one currency and selling another. For example, if you buy USD/EUR, that means you buy the US Dollar and sell an equivalent value of the Euro. Closing you position involves buying the Euro and selling the US Dollar.

The price of all currencies traded on Forex are influenced by the laws of supply and demand. If the demand for a currency outstrips the supply, the price rises. Alternatively, if supply is greater than demand, the price of a currency will fall.

Forex trading has a number of significant advantages that make it an extremely attractive form of speculation.

First, due to its size and lack of exchange controls, it's almost impossible for any person or organization (including central banks and governments) to significantly influence prices for an extended period of time. This means that you can enter the market secure in the knowledge that your investment is competing on a level playing field with every other investor around the world.

Second, due to the vast size of the market, the liquidity is excellent. So unlike the position with many stocks and shares where you might find it hard to sell certain investments, you can open and close Forex trades almost instantly as there are always scores of international buyers and sellers.

Third, it's relatively easy and cheap to get started trading Forex. All you need is an internet connection, a broker and perhaps $500 - $1000 to open a trading account. Once you've got these things you can trade 24 hours a day from Sunday afternoon through to Friday evening. And thanks to the availability of information on the internet it's possible to find all the data that you need for the purposes of analysis and decision making.

Fourth, it's possible to make substantial short term gains with relatively little capital thanks to the number of daily fluctuations in currency prices and the ability to leverage your capital (often up to 100 times) thanks to margin trading.

However, due to rapid fluctuation of currency prices and marginal trading, Forex trading carries significant risks, so caution must be required when deciding which trades to make.

When it comes to decision making, there are two basic Forex trading strategies, technical analysis and fundamental analysis.

Technical analysis relys upon using price charts, trend lines, support/resistance levels, highest price, lowest price, transaction volumes and various other mathematical formulae to identify trading opportunities. This is based upon the belief that everything that may influence the price of a currency has been considered by the market and factored into the current price.

Crucially, technical analysts don't try to defeat the market. The are content to predict short term, minor fluctuations using patterns from the recent past and the belief that history will repeat itself. The main disadvantage of the method is that all the results are purely historic and cannot always be relied upon as an accurate guide to the future.

Fundamental analysis looks at wider factors such as the national economy of the currency, the political stability, employment figures, industry figures, interest rates, tax policy and a wide range of other economic indicators. However, before basing your investment decisions on these factors alone, it's important to consider both technical analysis and the fact that market expectations can influence the price of a currency as much as reality.

About the Author:

Visit Michael Mancini's website at for everything you need to know about Forex Trading.


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