Friday, May 30, 2008

The Best Informaiton on dangers of forex trading

The Though Side Of Forex Trading



You are sitting in front of your PC. Your heart is racing, sweat is starting to pearl on your forehead and adrenalin is pulsating through your veins at the speed of white light. You have live trade on the very popular Forex Market and your emotions are going mad.

If you ever wanted to feel like pregnant woman ( no offense intended) then this just the way to do it. A magnitude of pips and candles and fibs is glaring at you from the computer screen. Your money is gangling around in the air with your perspiration and the only thing that you can do is to have faith that you made the right move with you're trade.

This is all very scary and exhilarating at the same time. Some times trading the Forex Market should be compared to teasing a hungry lion with an open cage gate. Sometimes it is just downright tough. Why you ask? Because your emotions are out of control and that makes you scared money and scared money always lose. Why would you lose your money when you are scared because you will jump out with you winning trades with small gains and stay in with your loser hoping that the market will not hit you stop and take your money.

How can you prevent your emotions form ruining your trading career? First off never trade money you can not afford to lose, you can not use money that you saved up for your retirement or study money for college, or any money that if it is gone you are in deep... trouble. That will make your trading very difficult, now you need a plan of attack to trade the market if you do not have a plan do not live trade use a demo account to build your strategy. Demo trade until you make constant winning trades and see your demo account grow then you are starting to get your emotions under control. The most important rule of them all never trade with out a STOP other wise you're out of control. If your system tells you that you must take this lost never move your stop it will only worsen your losing trade.

What must I have in place before I start trading live? You must have a plan of attack and have the strength and discipline to stay with your Plan. If you lose, you have to go back and check if you followed you strategy if not to not trade again until you fix it. Every strategy will lose sometimes and you'll have to learn that losing it part of trading. Learn form every lost you take, by writing down the fault why you lost, so next you will not make the same mistake again.

Trading is like exercise, jogging you need to practice, to be come emotionally free to be in control when you are trading. When you have your emotions under control then you will succeed and make yourself a great big bundle of money.

Good luck on building your winning strategy!!!!

About the Author


Thank you for taking the time to read my article for tips and strategy's visit: http://www.Forexpippirate.com

Forex, A Week In Review - 3/20/06 To 3/24/06



We like to wrap up every week with a review of the previous week's trading. So, here goes.


Cable gave us a run for our money last week. We were able to end the week up anywhere from 100 to 200 Pips based on personal exit strategies, so we are not complaining, but the daily trading range has been very tight and very unpredictable making big profit targets was almost impossible.


It was important this week to work your trades, we were able to nail 3 out of 5 entries but if you were not watching and working an exit strategy, all but one trade could have gone against you.


If you were not using good trade management strategy you would not have closed the trade around 9:00 AM (before you were actually in the trade) and it would have gone against you for your stop loss. Remember, not taking a trade is a position, often time the best position.


For those of you watching our daily newsletters, we had another good week. We had three winning trades, although only one was for our full target, and more importantly no losing trades.


With that said we have nothing to complain about, going 3 for 3 with two days with no trades, remember taking no trade is as much a position as taking a trade.


And no losing days means we did not give back any of our gains and can add the full gain into our account for compounding. This is what the week looked like;

3/20/06


Short @ 1.7570, Stop @ 1.7615, Target @ 1.7520 & 1.7490


Did not fill either trade but had plenty of reason to get out of trade around 1.7530 on three separate occasions during the day, and there was no reason to not have protected your trade by at the very least moving your stop loss to break even. For 0 to 40, Pips on both trades.


3/21/06


Short @ 1.7540, Stop @ 1.7580, Target @ 1.7500 & 1.7440 - We filled the first trade for 40 and the second trade we closed at 1.7470 for 70 Pips.



3/22/06


Short @ 1.7490, Stop @ 1.7530, Target @ 1.7450 & 1.7410 - We filled both trades we an early exit at 1.7460 for 30 & 30 Pips.



3/23/06


Short @ 1.7460, Stop @ 1.7500, Target 1.7420 & 1.7380 - Missed entry by 11 Pips.


3/24/06


Short @ 1.7370, Stop @ 1.7420, Target @ 1.7310 & 1.7290 - Missed entry by 18 Pips. Closed both trades around 9:00 Am due to reversal indicator. Saved a 100 Pip loss.

About the Author


Eddie has trained traders for 10 years. His Forex trading course, or Forex seminar, is the only Forex Trading Education you need to make money Forex trading.

FOREX A to Z: all you need to know to start trading FOREX



Being new to FOREX trading? Don't worry, getting started in FOREX trading
is easy and you can always test your skills first in a demo account before you
go 'live' with real money. To get started in
Forex trading, we have
to get to know what FOREX is. FOREX trading involves buying and selling the
different currencies of the world. Buying one currency and selling another at
the same time make a FOREX deal. FOREX market is the largest trading market
in the world. It yields an average turnover of $1.9 trillion daily and the figure
is nearly 30 times larger than the total volume of equity trades in United States.


Who are the major players in FOREX market?


Although FOREX trading involves such a big volume of trades nowadays, it is
not made available for the publics until year 1998. In the past, the FOREX market
was not offered to small speculators or individual traders due to the large
minimum business sizes and extremely strict financial requirements. At that
time, only banks, big multi-national cooperation and major currency dealers
were able to take advantage of the currency exchange market's extraordinary
liquidity and strong trending nature of world's main currency exchange rates.
Only until the late 90s, FOREX brokers are allowed to break huge sized inter-bank
units into smaller units and offer these units to individual traders like you
and me. As a fact in FOREX trading, FOREX is mainly traded in large international
bank. According to Wall Street Journal Europe, 73% of the trade volume is covered
by the major ten. Deutsche Bank, topping the table, had covered 17% of the total
currency trades; followed by UBS in the second and Citi Group in third; taking
12.5% and 7.5% of the market. Other large financial cooperation in the list
is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro,
and Morgan Stanley.


Starting in FOREX trading


To start trading on FOREX, one must first learn how to read FOREX quotes. Foreign
exchange quotes are always listed in pairs (e.g. USD/JPY 109.2): the first listed
currency is known as the base currency with a constant value of 1 unit; while
the currency listed in the second is known as counter. In our given example,
USD/JPY 109.2 means a dollar of United States Dollar is equal to 109.2 Japanese
Yen. In other words, the quote shows the relative value of one currency compare
to the other. It means the value USD had been increased when USD/JPY quote goes
up


However, a two-sided quote (e.g. EUR/USD 1.2435/1.2440) consisting of a 'bid'
and 'ask' is often seen. The 'bid' price is the price
at which you can sell the base currency; while the 'ask' price is
where you can buy the base currency. The different of 'bid & ask'
price is commonly known as 'spread'. In the example of EUR/USD 1.2435/1.2440,
this means you can buy 1 Euro Dollar with 1.2440 USD or sell 1 Euro 1.2435.
Currency brokers make their profit through these differences of 'bid &
ask' price and this is how they manage to provide their services to individual
investors without charging them commission fees. If you are new to trading it
makes sense to deal in the more popular currencies. There are two main reasons
for this. Firstly you do not want to be left with a currency where there is
little interest and you may have difficulty selling. Secondly the spread between
the bid/ask prices is likely to be narrower, making it easier to make a profit.


Major currency traded in FOREX market


There are seven major currencies, the US dollar (USD), Euro (EUR), Japanese
yen (JPY) British pound (GBP), Swiss Franc (CHF) Canadian dollar (CAD) and Australian
dollar (AUD). The US dollar is the most traded currency followed by the Euro
and the Yen. The Euro is the relatively new currency of the European Union although
some member states, including the UK, have not changed their currency. Also,
if you live in a country using one of the major currencies, when you first start
trading it makes sense to begin with that currency. Not only are you familiar
and comfortable with the currency, but you are in a better position to judge
its strength. The internet has a wealth of information on the financial climate
of a country, but if you live there you have access to all newspaper content,
as well being in the unique position of experiencing first hand changes at the
consumer level.


Why I should trade FOREX?


Main Question raised in your mind might be: Why should you trade FOREX? There
are lots of reasons why you should involve in FOREX trading. FOREX market is
truly a global market where it opens 24 hours a day through out the whole week
(weekends excluded). With the ease of Internet access, transaction in FOREX
can be done in anytime regardless on your location. This gives you the convenience
to work on any time, anywhere - which in turns gives you the freedom you
cannot have in investing other kind of trading.


More over, trading in FOREX gives you an equal prospective in rising and falling
market. As trades are always done in pair of currency pairs, FOREX traders can
always find chance to make money in anytime, regardless on the fall or rise
period of one single country currency. Also, FOREX trading offers incredibly
high leverage rates to the traders. By trading currency in margin up to 200
to 1, you can start off your FOREX trade with minimum capital and huge ROI.


Conclusion


Wrapping things up, I hope that the article gives you a better general understanding
about FOREX trading. With the flexibility you can get, FOREX trading suits perfectly
into most people investment plans. Like with any new form of trading you need
to know what you are doing, especially as there is margin involved. If you are
new to FOREX, take all the time you need to learn this new trading skill well
-- practice everything you learn with a demo account before you consider going
'live' with your own money. Investors should read books, attend seminars and
paper trade until they are comfortable with there strategy.


About the Author


"It's okay to be a newbie!" Learn Forex trading from scratch at www.golearnforex.net.

4 Comments:

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