Thursday, January 8, 2009

Lowest Spreads:

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Mulyi Terminal

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Take Time to Learn Currency Trading

Investing in yourself and your education is always a wise decision. Investing in learning Forex trading could be one of the wisest decisions you ever made. People from every country on the globe are entering the markets daily and many of them are becoming wealthy because of it. The first step towards creating wealth for yourself is to learn currency trading from its fundamental theories to its sophisticated investing strategies.

After you have completed that process, you now have the world at your finger tips just waiting for you to reach out and grab it. Don't let the people who tell you can't make money in Forex fool you. In fact, the odds are all in your favor. Where else do you have 50% chance of making money in something even if you no nothing about what you doing? Nowhere else is the answer! Really, how much better odds to you want?

If you know nothing and play a child's game called "Ani, mine, miny, moe" to select a currency to buy, you have a 50% chance of picking a winning investment. A currency can only go in one of two ways, up or down.

Trading on margin

trading on margin gives you more buying power and the potential for more profits (and losses). How does this work, exactly? A 1% margin account allows you to control a currency lot of $100,000 for $1,000. When dealing with $100,000 small changes in the price of the currency can result in large profits or losses.

FOREX currencies are traded in much smaller units than cash. The American dollar, for example, is traded in units down to 4 decimal places. Instead of $1.32 FOREX quotes are seen as $1.3256. The smallest unit in FOREX currencies is called the pip, and when you have a $100,000 each pip of your total lot is worth $10 (when trading American dollars).

If the price of American dollars changes from 1.3256 to 1.3356, that's a difference of 100 pips which represents a profit or loss of $1000. Without margin, if you had $1000 of currency, the price change from 1.3256 to 1.3356 represents a difference of $10. Significant to the tourist, perhaps, but not the investor.

So the benefit of margin is increased profit potential.

Risks

As there is increased profit potential, there is also increased loss potential. If you are not careful, your entire margin account could quickly be wiped out. If your margin account is 1% and the currency moves just one cent against you, you lose $1000.

FOREX trading, however, has several methods to limit loss. Stop loss orders automatically close your position if the value of the currency crosses a pre-determined point. Stop loss orders allow you to limit your losses to a specified amount while still allowing potential profit taking.

Best Hours For Forex Trading?


Forex is a highly dynamic market with lots of price oscillations in a single minute, this characteristic of the Forex market allows traders to enter the market many times a day and pull some profit from these number of trades. If you want to find an appreciable number of profitable trades you need to enter the forex market at the best period of time, i.e., when the activity, the volume of transactions, is the highest.

The main timing characteristics of the Forex market are the following:
* Forex is 24 hour market รข€“ It starts from Sunday 5pm EST through Friday 4pm EST. Rollover at 5pm EST

Get Started in Forex

You can actually make a regular source of income by entering the fascinating world of forex trading. But there is a checklist you need to follow to have a profitable trading experience. That would make your forex trading worthwhile and that much more orderly.

It is the forex broker that you select who helps you to open your online forex trading account. Apart from having a flawless reputation, the broker you select should preferably be affiliated to a large banking institution. For example Saxo Bank is reportedly a good forex broker. But there are several others too. The choice is entirely yours. Before you make the final selection, read online reviews of the brokers and select the broker who is the least controversial and who has the maximum positive reviews in broker review sites. Remember to read the trading rules of the broker, particularly with reference to the leverages they offer, the carry forward charges to roll over your position to the next day and so on. In other words pay attention to the fine print of the terms and conditions of the broker’s agreement. Get someone who is well versed in forex trading to help you out on this.

Wednesday, January 7, 2009

Scalping The Forex Market


Some even pronounced it wrongly, and if you don't understand the meaning now, you can not benefit from the mega returns that the strategy is generating in the world's largest financial market.
Scalping is a focused technique that involves making a minuscule trade to generate profit within a short period of time. This method of trading the FX market is of high probability trades with extremely small risk stops and predefined profit objectives, it is also a means of taking a million trades to make a million dollars.

Key Facts you Need to Know

Forex scalping and day trading is more popular than ever and is the choice of most new forex traders but is it the right one and how do you enjoy forex scalping success – let's find out.


1. Short Term Volatility is Random

Millions of forex traders trade trillions of dollars in currency each day and to say that you can measure what this diverse number of traders will do in a few hours, or a day is laughable you can't.

2. Support and Resistance Levels are Meaningless

To trade any market you need to have valid levels of support or resistance to key off however with all volatility being random in short term trading, prices can and do go anywhere and support and resistance cannot be used - as the data simply isn't valid.