Browsing Archive: August, 2009

The Hidden Techniques of Forex

Posted by Forex Trader on Saturday, August 29, 2009,

Forex is a big market to participate in and surprisingly only the top 5% are making money. That means the remaining 95% of traders are either breaking even or losing money. The small minority at the top in this business have their own hidden techniques and strategies that they use to profit. I hope to give you a glimpse into what they do.

The expert trader also knows when it is appropriate to drop the training wheels, which happen to be the demo platforms. I’m not saying demos are bad becaus...


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Forex Calculator - How Much Money Can You Make in Forex?

Posted by Forex Trader on Saturday, August 29, 2009,

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Byuing and Selling Currencies

Posted by Forex Trading on Saturday, August 29, 2009,

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Top 10 Forex Trading Tricks: You Won’t Lose

Posted by Forex Trader on Saturday, August 29, 2009,

The foreign exchange market or forex is the largest and most liquid markets in the world. Its growing popularity can be seen by the whooping $2 trillion trades a day. While the forex can be an extremely lucrative market, it can also be somewhat complicated. These ten tricks will help insure trading success in the foreign exchange market.

First, make sure you implement ...


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Psychology of the Trader

Posted by Forex Trader on Friday, August 28, 2009,

What should the psychology of the trader be?

Before placing trades, traders must sufficiently analyze the position they are about to take. However, many do not thoroughly plan out their actions, and instead make trades based on guesses and hunches. This psychological viewpoint can result in traders losing a

lot of money very fast. How can this be avoided? Through careful planning and analyses, including where to place stop and limit orders, a trader can keep losses to a minimum while allowing...


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Risk Management

Posted by Forex Trader on Friday, August 28, 2009,

There are three basic questions that every trader should answer BEFORE entering a trade.

How much do I believe the market will move and where do I want to take my profit?
Limit Orders allow traders to exit the market at profit targets. If you are short (sold) the system will only allow you to place a Limit Order below the current market price because this is the profit zone. Similarly, if you are long (bought) the system will only allow you to place a limit order above the current market p...


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Support and Resistance

Posted by Forex Trader on Friday, August 28, 2009,

Support and Resistance

At the core of all technical analysis th...


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Technical Analysis

Posted by Forex Trader on Friday, August 28, 2009,

What is so great about technical analysis?

Once a trader masters t...


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Currency Pair Relations

Posted by Forex Trader on Friday, August 28, 2009,

EUR/USD

When the dollar weakens...


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Fundamental Analysis

Posted by Forex Trader on Friday, August 28, 2009,

What influences prices in the forex market?

Prices in the currencies market are affected by macroeconomic factors, such as inflation, unemployment, and industrial production. Information on events such as these is easy to find and are based on their analysis of economic data, which traders take positions on the market to make profit.

There are three main macroeconomic factors a trader should focus on when analyzing foreign exchange rates:

Interest Rates: Each currency has an overnight len...


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Trading Costs

Posted by Forex Trader on Friday, August 28, 2009,

How much does it cost for a trader to make a trade?

Traders do not take positions on a currency pair at the exact rate at which the currencies are trading. Instead, there are two rates for the currency pair: the bid rate and the ask rate.

• The bid rate is the price at which traders can Bid the pair.

• The ask rate is the price at which traders can Ask the pair.

This is an example of a currency pair. The ask (Ask) rate is higher than the bid (Bid) rate and the spread is 3 pips, mea...


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Concept of Leverage

Posted by Forex Trader on Friday, August 28, 2009,

What is leverage?

Leverage allows traders to borrow money and use that money to invest in the foreign exchange market. Because of leverage, clients without a huge amount of capital are able to make large investments, whereas in other markets such as the equities market, clients would have to pay 50% of the full amount for each share of stock they were investing in. Most market makers allow positions to be leveraged up to 100:1. This means that if a trader wanted to Ask a “lot” worth $100...


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Currency Pairs

Posted by Forex Trader on Friday, August 28, 2009,
What is the significance of currency pairs?

A currency pair represents the exchange rate between the two currencies. For example, the rate at which the EUR/USD is trading that represents the number of US Dollars one Euro can purchase. The first currency is called the base currency and the second currency is called the counter currency.

An example of how currency pairs trade is if a trader believes the Bank of Japan will intervene to cause a decrease in the Yen against the US Dollar, then t...


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Basic Concepts of Forex

Posted by Forex Trader on Friday, August 28, 2009,
Currencies are quoted in pairs, such as EUR/USD or USD/JPY. The first listed currency is known as the base currency, while the second currency is called the counter or quote currency. The base currency is the “basis” for the Ask or the Bid. For example, if you Ask EUR/USD you have bought Euros (and simultaneously sold dollars). You would do so in expectation that the Euro will appreciate (go up) relative to the US dollar. FX is traded in lots, which represent 100,000 units of the base cur...
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