Foreign Exchange Trading Made Easy.

By John Eather

Definition- Foreign exchange trading also known as FX or Forex, is defined as the trading of one currency in exchange for another. The foreign exchange market is the biggest, most lucrative and liquid market on earth, trading 24 hours a day, 7 days per week. Up to US$1.5 trillion dollars worth of trades are conducted everyday. Central Banks, Corporations, Individuals and speculators form part of the forex participant base. 5 % of daily volumes consist of Government and commercial currency conversions, the other 95% is made up of speculation and trading.

Pro's- The pro's to foreign exchange trading are incredible including immense liquidity, non-stop trading due to overlapping trade sessions, traders can take advantage of market, economical and political events by imminently trading in accordance, very low transaction cost and margin trade opportunities.

Risk- It is very important to understand the risk involved with foreign exchange trading. The rewards are high but the risk is just as significant. If you plan to trade with capital you are unwilling to loose you are going to encounter pretty big problems should the market turn on you with the possibility of losing both initial investment and profits. Make sure that you know all there is to know about the trade type as there are many tricks, tips and pitfalls you can encounter along the way, requiring immediate handling of the situation. If you feel even the slightly uncertain- avoid trading and the market as a whole. Take a course in foreign exchange trading to make sure that you understand the market thoroughly before attempting trade.

Different forex rates- Foreign exchange is usually traded on the spot rate. This means that trades are completed on the spot rate and settled within 2 working days. However in rare instances the positions can remain open, rolls over and expires on the closest settlement day. The rate at which trade occurs is known as next rate.

Quoting- Quotes refer to offer or asking price of the two currencies. The asking price will be on the right and offer on left side when indicated. - 23210

About the Author:

Check out John Eather's Free eCourse on Foreign Exchange Trading. Stay in tune with the latest info regarding Automated Trading. Click on http://www.moneymakingfxtrader.com to get more details.

Learn To Day Trade Forex

By Ahmad Hassam

Forex day trading is a great way to make money and build your saving account. You should learn to day trade forex. But before you embark on your journey of currency trading, a few facts should be very clear. These facts should be the foundation of any forex trading system that you will use daily for day trading.

The most important thing that you should make very clear and understand is that forex is not a get rich quick scheme. Skilled forex traders can and in fact do make good profits in forex trading. However like any other business whether small or big, success just doesnt happen overnight, in a few weeks or in a few months. You should use this great formula for success: Profits=Patience+Practice+Persistence.

As they say there is no substitute for hard work and diligence. Practice trading on a demo account and pretend that virtual money is your own real money. Do not open a live trading account until you become profitable on your demo account. Stick to the plan and you can be successful.

When you start trading forex, just choose two major currency pairs that you will trade in the start. It will become very difficult to keep tab on the all major currency pairs in the beginning. You should start with a major currency pair. The spread on the major pairs is the best and they are the most liquid. EURUSD pair is the most commonly traded pair in the currency markets and usually has the best spread because of its liquidity.

USDCHF is the most volatile pair among the major currency pairs. It is highly volatile and moves the most during the trading week. However, USDJPY moves a lot only on the news out of Japan. GBPUSD is the most stable and least volatile among the major currency pairs.

You should follow and understand the daily forex news and analysis of the professional currency analyst on a daily basis. It is important for you to get a birds eye view of the currency markets. You should also know and understand what the key technical support and resistance levels are in the currency pair that you want to trade. You should know the news that affects the prices of the major pair that you want to trade.

Support is the predicted level when buying pressure overcomes the selling pressure. It is at this point the currency pair moves up on the charts. Buy at the support level. Resistance is the predicted level when selling pressure overcomes the buying pressure. It is where the currency pair moves down on the charts. Sell on the resistance level.

Fortunately for you, all the best forex news and analysis is available freely online. Most of the brokers provide this information on daily basis. You can also go to forexnews.com and get 24 hrs news and analysis on the spot forex market. When you read the technical news and analysis, write down on a piece of paper the direction the analyst are saying about the currency pair you are trading and the key support and resistance level for that pair.

You should learn technical analysis and how to use technical indicators. Never ever trade without stop losses! Learn how to use technical indicators on the charts. Learn to be patient.

It is important when you are trading to be disciplined. Stick to a plan. Dont just trade your gut feeling. Depending on your risk capital and strategy, set your stop losses accordingly. - 23210

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

Purchasing Share Builder

By Anne Durrell

If you are interested in buying and selling stocks online or you just want to start it then you better check out share builder.

A lot of investors are appealed to this share builder because the website offers different way to buy online stocks and it is make sense and simple.

It is easy to use and much cheaper than using a traditional broker. While these things are true of most online stock brokers, share builder is a bit different.

Share builder offers stock trade for only $4 for any publicly traded company and for any dollar amount you want to purchase. That means you don't have to buy a minimum number of shares at share builder.

Another good thing about share builder is that it does not require a minimum investment so you can start off at any level you feel comfortable with.

With share builder you can start investing right away; while with most sties they will require you to put a minimum amount of money when you establish an account, which means you have to spend more money before you really invest.

Since the $4 fee is the same no matter how much you buy, however, it is worth buying larger amounts at one time if you can because then the fee is a lower percentage of the overall cost.

Share builder applies $4 to each different stocks, not to the total stocks you buy. So it really makes sense if you consolidate your purchases of the same stocks all together.

In other words, it would be much cheaper if you buy $100 worth of one stock each week than buying $25 each of 4 different stocks each week for a month.

You would pay $4 a week in fees instead of $16 which would mean you would have $48 more invested by the end of the month. So if you are looking for something different, give share builder a try! - 23210

About the Author:

Her name is Anne Durrell. She comes from California. She has written extensively on online trading . You may want to check out her other guide on day trading stock picks tips, and online trading review guide!

Starting out Trading on the Forex Market

By Alex Miller

Getting started on forex can be a little bit difficult, especially if you're really unfamiliar with what it is that you are doing. The first step in getting started, however, is not to get too nervous about everything that you are about to learn. It is not as difficult as many of the teachers would have you understand, just follow the rules and get a basic overview, and you can begin.

There is one principle that you need to understand about the market that is often due to many people who are just learning Forex. That is the fact that Forex is a zero-sum market, unlike the commodities market. Whenever somebody places a trade on the Forex market, and equal trade is made in the opposite direction by someone else. At the end of the day, one person is going to lose as much as the other person gains, there is never any money that is mysteriously generated in this market.

Another thing you need to understand is that it is impossible for you to trade directly on the Forex market. In order for you to place your trades, you need to have access to a qualified broker that will place the trades for you. You can either access them directly, over the telephone or through the use of an online platform. The platform is by far one of the better choices as it allows you to make your trades in real time.

Some other benefits that you will receive whenever you join one of these forex platforms include the tutorials that are available and the tools that are on the inside. The people that operate these forex platforms understand that it is not always possible for you to know everything about forex. That is why they typically give you step-by-step tutorials that will walk you through the entire process. As you continue to grow in your knowledge about forex, you will find the advanced tools section quite beneficial as well.

A number of other tools fall into similar categories, although they are different in nature. The first of these is a type of system that you can run once per day or per week in order to see which direction the Forex market is moving. Some of these are fairly accurate but keep in mind, the Forex market can be quite volatile. The other tools are either automated or partially automated systems which allow you to trade, even whenever you're not sitting at the computer.

One thing that you should keep in mind, however, is the fact that none of these automated tools should ever be run without at least a little bit of input on your part. People use these automated systems regularly and many of them are finding success in doing so. Just keep in mind that unless you keep your eye on what is going on, the program could make wrong decisions and could cost you a considerable amount of money. They are excellent tools but use them wisely.

The Forex market is a great way for you to be able to build back up a portfolio that may have seen better times before the world economy had so many problems. It is also a great way for you to get started in any type of trading. All that is really necessary is for you to understand the basic principles behind Forex and then you can jump right in with both feet. Make sure that you continue to learn and you will be able to be successful with your trading practices. - 23210

About the Author:

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The Benefits of Trading With Price Action

By John Templeton

I cant help but notice that every time a newbie forex trader is wants to learn more about how to trade, they rely solely on indicators. They spend all their important time learning about useless tools such as RSI, Moving averages, MACD, and all other generic indicators.

What eventually happens is that is all you see on their trading charts: indicators. It really never dawns on them that they are not trading correctly. Sadly, trading with price action never comes to their mind. Many traders get scared when they hear the concept, and think only smart people can trade it. They would prefer just using their indicators to tell them which way the market is headed. However, they really dont know which way the market is moving.

What most people dont realize is the fact that when you trade with indicators, you are essentially trading other peoples signals. All you are doing is hoping that they are giving you correct information, because YOU truly dont have any idea of why you are taking a trade. You are essentially going on blind faith.

But the real beauty of trading forex with price action is that once and for all, you are able to eliminate these useless tools, and you are able to see the market the way it was initially intended: without the need for indicators.

One of the biggest obstacles for traders who are using indicators is the fact that on many occasions indicators will give you two opposite signals. For example, moving averages can be telling you to buy, while MACD is telling you to sell. So you are really just sitting there and waiting for these indicators to align, in order for you to take a trade.

With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.

Im sure you have an idea of what a tough spot this is for a trader to be in. Think about it. Instead of being proactive in the market, you are left staring at a bunch of random lines hoping that they match in the same direction. The really sad thing is that most traders dont even understand what exactly these lines represent.

What I would like you to do is the next time this idea of trading without indicators pops in your head, I want you to think about all the floor traders on the New York Stock Exchange. Think about the fact that most of these traders do this for a living without having to even use charts, much less indicators. - 23210

About the Author:

To learn more about trading price action, make sure to check out forex millionaires.