FX Strategies

Finding a Good Forex Broker

Trading Strategies No Comment

If you were looking for the best Forex brokers online, it is easier to look for them through Forex brokers reviews rather than in the physical world. While you will definitely meet veteran agents as well as industry-hardened experts from the currency exchange trade, you will be hard-pressed to find someone who is going to teach you instead of investing every working minute in trying to eke out a profit from the volatile market.

For a number of investors as well as entrepreneurs, the fact that there has been a plethora of information as well as strategies available on the web as against their brick and mortar counterparts, is not only an affordable way out in these trying times, but also a better source for Forex-related information and techniques.

If you would go to any of the Forex broker meetings or ad-hoc round-ups, you will find that the amateurs are already on the lookout for better deals regarding the online Forex trading training sessions. This, however, does not mean that there is a dearth of coaching acumen in the veteran agents at the top of the industry today. On the contrary, usually it is these Forex trading brokers who channel their excess energy into training the amateur traders worldwide – all through Forex trading training lessons.

Good Forex Broker

As it became crystal clear that none of the Forex trading strategies will bear fruit only if the trading strategies are based on trade secrets learnt online, amateur traders have used these sessions as their main source of Forex trading lessons. While there was no dearth of veteran agents in the field, but learning from the top traders, even when they reside in some other country in some other part of the world is an option they do not want to give up easily. For how else can one learn the secrets of the USD/JPY trade from crash Forex trading training lessons from both the top Japanese as well as American investors, without leaving home in Egypt?! When we say that the world has become smaller with time, we do mean that regarding the Forex industry as well.

Forex broker reviews are newer sources of information too – also written by veteran agents and traders from the business! In fact, there has been a huge influx of traders who started off with discussion boards and social media fishing and ended up becoming a loyal subscriber to some of the best Forex trading review portals on the web. Forex broker reviews have always been one of the easiest and perhaps one of the most personal of ways to get in touch with the best Forex brokers in town. However, you need to be selective about which reviews you read -especially if you have different segments to read up about (such as scalping or market cycle predictions).

FX Strategies

What are the Basic Forex Trading Tips for the Beginners?

Trading Strategies No Comment

Are you new to Forex trading? If yes, then read this article. It contains all the information about Forex that you’ll need to know.

People think that it is very easy to earn huge profits. The truth is, this isn’t the case. Forex trading is very difficult and more than 90% people lose their investment because they are not aware of all the tricks and tactics of Forex. Only 5% of investors–smart investors–can earn huge profit from these trading activities. That said, there are some very good Forex trading tips for beginners that can really help them out in trading in the stock market.

Forex trading tips for beginners can be very crucial as it can help newbies learn how to earn profit from their stock. First of all, they must know the basic trend of the market. To do this, they have to do a technical analysis of the market. They need to see what the factors are–the trends–that influence and change the market. These factors may be political, social, or economical. Keeping an eye on the latest news developments can help gage the market trend. Get more: http://bestexecutionplus.com/regulated-forex-brokers/

basic Forex trading tips

Forex trading tips for the beginners are simple to understand. Once a person gets the “basic Forex trading tips for beginners”, surely they will start to earn profits. It is always suggested that you should never put all your eggs in one basket. That is, if you want to invest your money in the stock market, you must diversify your investments rather than to buy stock from a single firm. It’s important to diversify your stocks because it will diversify the risk of loss as well. One stock can earn you a profit and the other stock may not pan out so well for you. By diversifying your stocks, you lessen the chances of ‘losing it all’.

The best Forex trading tips for the beginners are to be patient and don’t lose hope and temper. Patient is the key to success in any line of business. Patience in the stock market means that one must wait for the right time to trade stocks in the market. If the trader doesn’t work smartly in the market, they will be facing a lot of losses. The Forex trading tips for the beginners is to follow the rule of thumb: you must never under any circumstances invest or risk more than what you have in your pocketbook or bank account. Always keep enough of a balance in your bank account just in case you lose your investment in the stock market.

There are a lot of Forex trading tips for the beginners available on the Internet. And these tips and advice can be found on several different types of Forex related websites (i.e. blogs, online magazines). You can even read about stock market experts and traders who are successful in this field, which will add a lot of confidence to your game. However, it’s important for any person to follow the basic Forex trading tips for the beginners to get used to the market and then come up with a heavy investment. If a person doesn’t follow the Forex trading tips for the beginners, then they may surely lose.


FX Strategies

What Are Pips and Spreads in the Forex Market?

Trading Strategies No Comment

One of the draw cards for people who first start trading Forex is that there appears to be no cost of trading. That is, there is no commission charged on each trade – and therefore trading must be “free”.

Whilst this is certainly true that there is no commission – trading is not exactly “free”. If it was, there wouldn’t be so many brokers to choose from in the market, because there would be no incentive for brokers to exist! Visit now: www.titanfx.com

In reality, the way that a broker turns a profit is through something called the “spread”. Let’s take a look at this in detail now.

How the Spread Works:

The spread is something which is present no matter which currency pair you decide to trade and no matter what time zone you choose to trade in. Essentially, the spread is the difference between the “buy” and “sell” prices quoted for a currency pair. This equates to the brokers profit.

For example, imagine that the current quote for the GBP/USD is 1.8031/1.8035. This quote implies that there is actually a 4 pip spread in the market – and therefore the broker will be earning 4 pips when you execute a trade (regardless of whether it is a buy or a sell trade) in the market. continue reading this

The spread can therefore be considered the “commission” that a broker charges – and therefore it is looked upon as being a direct cost of trading in the Forex markets.

Minimizing the Spread for Higher Forex Profits:

As logic follows, if you minimize your expenses, you are essentially able to maximize your profits. This is true for Forex trading also. When you are looking for a Forex broker for the first time, a good thing to do is to look out for the spread being advertised.

But many people are probably asking – how does a lower spread cut trading costs and therefore maximize trading profit?

The answer is summed up in the following example. Say you are trading the GBP/USD and the quote is currently 1.8100/1.8105. This is a 5 pip spread. If the quote rises to 1.8120/1.8125 – you have made a 15 pip profit (the different between the buy price of 1.8105 and the sell price of 1.8120). However, if the spread had been just 2 pips, you would have entered at 1.8102 and exited at 1.8123 – a profit of 21 pips. 21 is more than 15 – so you’ve actually saved 6 pips!

Best of luck!

Visit homepage here: www.bestexecutionplus.com

FX Strategies

Why You Need to Develop Forex Trading Strategies in Order to Succeed in Forex Trading

Trading Strategies No Comment

There many things that уου hаνе tο learn аbουt Forex. It іѕ not аѕ simple аѕ ѕοmе people would like уου to believe, like уου only hаνе tο асqυіrе the mοѕt sophisticated software and уου саn sit back and relax while the money keeps rolling іn. Forex software no matter how high-tech cannot replace уου brain cells. Though, οf course, they are quite helpful іn pointing уου to the right direction. Before уου even think οf engaging іn Forex trading mаkе the nесеѕѕаrу preparations and learn ѕοmе οf the Forex Trading Strategies that hаνе worked for others.

The kind of Forex strategies уου еmрlοу wіll οf course depend on уουr circumstances. If уου hаνе lots of money tο spare and quite sure οf уουr skills and serviceability of уουr software, a high leveraged trading position іѕ quite alright. Bυt іf уου јυѕt hаνе ѕοmе cash to spare like mοѕt others and јυѕt starting out and nοt ѕο skilled іn Forex analysis аѕ уеt, the correct strategy іѕ tο more аbουt how Forex leverage саn be used tο уουr advantage. Yου want tο bе careful and bеgіn trading mini-accounts instead οf the standard which requires more capital. It’ іѕ аlѕο important tο think οf currency pair tο trade.

Develop Forex Trading Strategies

Thеrе аrе several currencies traded іn the marker and іt would bе tο уουr advantage tο concentrate on the ones уου are familiar with аѕ уου wіll probably find predicting their movements a little easier. The more уου learn аbουt the currency pairs, the more уου are аblе to set-up trades that hаνе gοοd chances of earning. Visit: https://www.sec.gov/answers/forcurr.htm

An essential раrt of a Forex strategy іѕ determining exactly when to trade. There are three Forex markets ‘the European market, the US market and the Asian market. Both the European and US markets are hυgе and volatile. Thеу аrе уου excellent markets tο trade in. The best market hour’s will be between 8:00 AM EST and 12 EST when the European Market іѕ closing operations and the US market іѕ starting. The Asian market іѕ usually cold and unless уου come with a strategy specifically formulated for it, уου would be better off staying away from it.

A Forex strategy that’s becoming a favorite of small trade’s іѕ the Forex scalping. Thіѕ entails trading several currency pairs at once for very short time-framers; not more than a couple of minutes at a time. Yουr capital іѕ spread out which means уου cannot get wiped-out in single trade. Thіѕ аlѕο gives уου greater chances οf earning. Thіѕ strategy, hοwеνеr, requires a higher level of analysis. There are more currency pairs involved аftеr all.

Forex trading іѕ lucrative, no doubt аbουt that. But in order to profit from the opportunities its offers уου hаνе to develop effective Forex strategies.


FX Strategies

Currency Pairs

Trading Strategies No Comment

There was once a time when every country in the world had its own currency. Each country traded against another country – and therefore bought and sold the applicable currency in order to complete the transaction.

Nowadays of course, the situation is similar, except for the fact that most European countries are member of the Euro-zone, and therefore utilize a single common currency – the Euro.

Nevertheless, there are still over 80 different currencies in use worldwide, and this makes for a vast selection when it comes time to trade these currencies. Which pair should you choose? Which is the most active during your trading hours? Which has the biggest daily range? Let’s find out a few of these answers.

Currency Pairs

Common Currency Pairs:

Whilst it is certainly possible to trade the GBP against a bizarre currency such as the South African Real or the Brazilian Real (bizarre in the sense that it is less common) – most currency trading takes place on pairs which are referred to as the “majors”.

These majors have a huge amount of liquidity pouring through them at any one time, and are therefore said to have infinite liquidity. As such, the cost of trading these pairs (as implied by the spread) will be lower than say the GBP/BRL (Pound / Brazil Real).

The major currencies consist of:

  • US Dollar
  • Japanese Yen
  • British Pound
  • Canadian Dollar
  • Euro
  • Australian Dollar

Whenever these currencies cross with each other (known as a major cross) – the result is a very liquid currency pair. Examples include: EUR/USD (the most popular of all), GBP/USD, EUR/GBP, etc.

How Currency Pairs Actually Work:

Whenever you want to trade a currency, you cannot just buy or sell that single currency. You always have to buy or sell that currency in relation to another currency. Therefore – whilst it is not possible to simply buy the GBP, it is possible to effectively buy the pound versus the US Dollar by buying the pair: GBP/USD.

As such, if you wanted to sell the GBP, you might look at selling the pair GBP/USD. Alternatively, you could buy the pair EUR/GBP – which is again betting that the GBP will fall!

Try to choose a broker with a low spread – somewhere below 2 pips. Generally, 2 pips is the standard spread for the most popular currency pair EUR/USD – so if you are able to find a lower spread than this, you are probably getting a good deal.

Hence, you are able to trade any combination of currency pairs and still take an overall view of a particular currency. Here resourceful site for more tips and ideas about currency pairs: http://www.investopedia.com/terms/c/currencypair.asp

FX Strategies

Regulated Forex Brokers

Trading Strategies No Comment

In almost every country throughout the world, financial markets are heavily regulated to prevent fraud, greed, excessive risk, or other damaging phenomenon from occurring. Forex markets are some of the least regulated markets in the world – however when it comes to the retail Forex market (the one that you and I trade on) – there are certainly a few regulatory boundaries in which brokers must operate.

Every broker offering Forex trading services to the general public is required to be regulated in their respective market. For example, if they are registered in the UK, the financial authority they are responsible and answerable to is the Financial Services Authority (FSA).

Segregation of Client Funds:

UK Forex traders should be aware that if they are signing up to a broker which is regulated by the UK Financial Authority (FSA) – all of their funds must be segregated from broker funds.

This is a great thing for us traders! It means that if we were to deposit $10,000 to a Forex trading account with Broker X, and then 6 months later Broker X goes in to bankruptcy, all of our funds which were deposited are completely safe!

US one dollar bill vs Canadian one dollar coin

In other words, our account capital is protected by the FSA, and we will be able to get it back should something bad happen to the broker.

Anti Money Laundering:

Just in case you are thinking of utilizing the power of FX trading for something other than speculative profit (i.e. money laundering) – you should be aware of the regulations in place to prevent this from being possible.

All of the financial authorities involved in Forex regulation around the world have put a certain framework of criteria in to place which individuals must meet in order to trade on the retail Forex market.

At the time of signing up to the Forex broker of your choice, you will be required to submit a large number of personal details. All of these details will be verified to ensure that you are who you say you are. Thus, the instance of money laundering in the FX markets is actually surprisingly small compared to the possibility of it happening in other markets. Study more for best Forex broker.

Other Regulatory Bodies:

The FSA is only one of the financial authorities involved in Forex market regulation. Others throughout the world include:

  • Commodity Futures Trading Commission (CFTC)
  • National Futures Authority (NFA)
  • Futures Commission Merchant (FCM)
  • Forex Dealer Member (FDM)

Whilst not all brokers need to be members of the above organizations, different brokers in different jurisdictions will have different requirements.

FX Strategies

Best Trading Time

Trading Strategies No Comment

As you will probably know by now, Forex markets are open for trading 24 hours per day, 6 days per week. This means that regardless of what time zone you are in, you will be able to place buy and sell orders in an open market – even if you are trading part time after work.

However, it should be noted that just because the market is open, doesn’t necessarily mean that the market will be particularly active all the time.

There are definitely times when the market is more volatile, active, and exciting than other times.

Major Trading Time Zones:

The major trading time zones on the Forex markets are the times when the major financial centers are open. These financial centers comprise the following countries / regions:

  • Asia (Japan / Hong Kong / China)
  • Europe (London / Euro-zone)
  • Americas (New York / Brazil / Canada)

These are the three major market time periods, and something you may have noticed is that they all follow on from each other in the order they are listed. In other words, as the Asian market closes, the European market is opening. As the European market closes, the American market is half way through its trading day. And so on and so forth. Get more list here: https://en.wikipedia.org/wiki/List_of_stock_exchange_opening_times

Best Trading Time

Always Open:

As you can see from the explanation above, the Forex market is always open, and is usually always subject to a major trading time zone. However, there are still periods when particular currency pairs are busier than others.

One classic example of this is the difference between the USD/JPY currency pair and the EUR/USD currency pair. Obviously, the JPY is the Japanese Yen – which is heavily traded during the Asian session. However, whilst the USD/JPY is still able to be traded during the European and American sessions, the trading volume is significantly lower because the Asian market is closed. Learn every info on Forex market hours, read post here

Hence – whilst EUR/USD activity will be high at this time, the USD/JPY activity will be lower. The opposite is true when Asia is open and the European and American markets are closed.

You can use this fact to your advantage to take more or less risks during particular sessions. For example – if you are a risk adverse trader, you might like to trade currency pairs only when their respective markets are closed – therefore implying that there will be less risk during the quieter times.