Forex Trading
Written by Forex Explore Saturday, 10 December 2011 12:59
Forex trading has been developed into the post popular markets today. The gates to riches are open not only to the experienced traders, but also to individual investors looking forward to trading currencies instead of buying stocks and futures.
Forex gives an exciting and profitable opportunity that sure beats stocks and commodities. Below are just some of the features that currency trading offers:
1. Leverage
Great leverage options starting from 1:100 and going all the way up to 1:500 with some brokers.
2. Liquidity
Currency trading is the largest financial market with almost $3 trillion traded per day!
3. No Commissions
No commissions, since brokers are getting paid with spreads (difference between buy and sell price of the selected currency pair). There are brokers that do offer fixed commissions, which is an attractive option for those who do not fancy changing spreads.
4. Tones of Forex Brokers
Lots of forex brokers to choose from. Even if you are not satisfied with your first choice, you can always move on to a more suitable option.
5. No Need to be a Genius!
You don’t have to have a degree in finance to start trading forex. Anyone can do it with a little determination and discipline.
6. Low Spreads
Top brokers offer low spreads. It may seem not much of a difference between trading with 4 pip spread vs 6 pip spread, but in fact there is a huge difference. If you multiply the spread by the amount of trades you make and the amount of money invested, you will appreciate the lower spread more!
7. Free Demo Accounts
Free practice accounts are available with every broker; some are for unlimited time, others are for 30 days. Demo accounts are great for obtaining the beginner trading skills and understanding a trading platform before plunging into real money trading.
8. Low Deposit Requirements
Forex brokers offer different types of accounts – mini, standard and professionals. Mini accounts may not possess all the attractive features of standard or professional accounts; however the minimum deposit requirement may be as low as $1 – perfect for those who aren’t confident enough to invest $500 and up.
9. Available All Day Long!
Currency market is available 24 hours, 5 days a week. With different market zones, you can trade all through the day. Forex trading can be your full time profession, or an afternoon hobby.
10. Fantastic Profit Potential
There is a great profit potential from rising and falling prices. The currency pair may increase in value in a minute, or decrease in value due to economic changes. By catching the important moments you can turn $500 into couple of thousands in no time.
Read more: Why Forex Trading is The Most Popular Market Today?
Written by Danielle Franklin
It’s hard not to notice the new buzz in forex industry – binary options. It’s new, it’s exciting and it is profitable! What is binary option trading and how is it different from the conventional trading concept?
Forex Trading VS Binary Option
Instead of purchasing and selling the currency itself, binary option trader has to speculate on which direction the currency pair will move to. When you purchase binary option, a contract is made which gives the buyer (aka you) the right to buy an underlying asset at a fixed price, within a specified time frame with binary option broker (aka seller).
This kind of trading is called binary because there are just two possible outcomes known to investor - it is either yes or no, 0 or 1, win or lose.
While in forex trading each position may bring surprising turns and unexpected gains, in binary option both risk and reward is pre-defined. Therefore, binary option is less risky because the potential loss is limited to the amount of money committed to each trade, while in forex trading, due to leverage, you can end up clearing your whole account with one wrong decision.
Is it Gambling?
Due to the nature of this type of investment, you might ask yourself whether binary option is gambling. It’s true that traders forecast whether the price will rise or fall within the selected period of time, however the professional trader will still make the decisions based on technical and fundamental analysis. Therefore, while it seems like gambling at first glance, it is hardly a game of roulette where there is no possible way to predict the outcome.
Advantages Binary Options
1. It is Simple
Since the speculation options are limited to up or down, you don’t have to break your head with all the possible outcomes and fluctuations of the market. Following the news and documenting how the market reacts to latest economic data releases, is good enough to figure out the direction of the assets.
2. Less Risk
As mentioned above, you are in full control of how much money to put at risk. Before you start trading, you know exactly how much will the profit be, or how much will the wrong decision clear up from your wallet.
3. Fast Profits
Since you only have to focus on the direction and not on the volatility of the whole market in the long run, large profits can be made even with small trading amount.
4. Everyone Can Trade
You don’t have to be a mastermind to trade binary options – the doors are open to both professional traders and complete newbies. There are no restrictions and most brokers allow you to start trading with just $25!
Written by Danielle Franklin
Forex trading popularity is on the rise. Many investors and curious bystanders are now turning to currency exchange. What is so attractive about forex? Why is it a comfortable way of investment? Why is forex the talk of the day?
Forex market is the largest and most liquid market in the world. Lots of big corporations are taking part – banks, currency speculators, government, and financial institutions. Along with big fish, there are traders like you and I, who slowly but surely take part in the $3 trillion daily turnover.
What is so attractive about forex anyway? What made you enter the market arena?
Written by Danielle Franklin
With the experience in forex trading comes a rather disappointing realization that forex is difficult. You have read the basics, you have learned the indicators and charts, and you even found the right broker and opened a demo account. You’ve got the tools, the tricks and a “winning” strategy. If everything is in order, how come you are still not on the way to forex riches? Where are the promised piles of money?!
The advice you hear the most from other forex traders is to develop your own trading strategy. Plan it well and trade according to it. Be disciplined and follow the trading plan religiously. You spend months polishing up your strategy in hopes that now you have cracked the code of forex market.
Written by Danielle Franklin
After agonizing learn-and-practice stage you finally consider yourself a successful forex trader. You have accepted the responsibility of building your own trading plan, you are self-confident even when losses are encountered, you follow a strict discipline vital for your forex trading survival, you trade almost without emotions… and then you accidentally click on the wrong button! What do forex traders do when a wrong instrument is selected? What is the right solution when you find yourself surrounded by unanalyzed position which is most likely to be doomed?
Errors happen. I am not talking about trading mistakes, wrong analysis, slip-up in the trading plan, or unpolished forex strategy. I am talking about inaccuracy caused by poor finger coordination or computer malfunction! Not a lot of traders admit it, but at some point or another we all click on the wrong button, select the wrong instrument, go long when actually meant to go short, log into demo account conviced that it is life, triple click when it is one-click deal or our computer screen just freezes. Just like in driving, if you need glasses wear them with every ride! Clumsy mistakes are fairly easy to make, especially with forex trading platforms where all the instruments are listed in a drop down menu from a single order ticket.
Written by Danielle Franklin
Luck – the force of good or bad governed by circumstances and events; a crossroad where opportunity stumbles on intelligence. In my experience luck is persistent, meaning that it influences more than one area of your life. This made me think whether luck plays any significant role in forex trading. Do lucky individuals craft more profit than other professional forex traders?
Online forex trading touches many aspects of human behavior and instincts. A professional trader needs to know when to give up, be able to go all the way without blinking, make decisions and follow the strategy plan, be persistent and believe in yourself, take actions and show initiative, prepare for the daily battle and keep yourself from going mental! As for being lucky, in my opinion, it is quite hard to find a successful trader who isn’t overall successful in other fields of life. In order to be victorious you need to have a certain personality which allows you to reach an excellence not only in forex trading, but in other things presented to you by chance.
Last Updated on Monday, 28 June 2010 12:12 Written by Danielle Franklin
Since forex trading is an online investment, traders seem to be barely noticeable and few in comparison to other market investors. The truth is that forex trading is catching more and more attention these days and “full-time trader” becomes an acceptable and recognized profession.
Last month we have conducted the survey “Are you a full-time trader?”. The results are posted below:
Full-time Traders – 59.4% Part-time traders, who hold other full-time jobs – 25% Unemployed, but chooses to trade part-time – 12.5% Traders who haven’t decided yet – 3.1%
Trading from home isn’t an easy task. The main obstacle faced when trading full time is the need to stay in front of your computer for hours instead of, for example, keeping up-to-date with “Survivors”, playing hide and seek with your dog or catching an afternoon nap 3 times a day.
Written by Danielle Franklin
Swap is a forex trading term and it means a real-time purchase and sale of the same amount of a selected currency for two different dates for the sale and purchase of another selected currency.
Forex swap is in a way a borrowing mechanism. You basically borrow one currency while lending another for a selected period of time. In other words swap is interest rates for the currency pairs you sell or buy. Depending on the pair, you may either earn or pay swap interests.
Written by Danielle Franklin
When you trade forex it feels that the whole world is focused on you and maybe a little bit on your forex broker. In reality forex market consists of much larger entities than 1 profit-thirsty trader and spread-seeking forex broker. Today’s topic of discussion is who is involved in forex trading and why should you care?
We are definitely not alone in forex market and it is wise to get up close and personal with the players behind the scene.
1. Federal Governments and Central Banks
Federal governments and central banks play major role in currency exchange. These two are like dancing couple, making extravagant moves along the forex market hand in hand. Government representatives meet up with Central Banks representatives regularly to discuss the money issues.
And even if others may argue, federal governments and central banks always seem to be in agreement with each other. After all, these forex players are able to manipulate forex market in order to meet any kind of economic agenda.
Written by Danielle Franklin
Starting your forex trading career isn’t easy, especially when a socially acceptable theory is that 90% of forex traders lose their money and give up trading. The scary amount of losers made me think whether this unconfirmed statistical data is designed for a purpose and if so what can this purpose be?
It is true that in order to become a successful forex trader you have to get addicted to currency exchange. You have to fall in love with trading, “inject” it in every minute of your life, savor every moment of trading and submerge in forex education. All the hunters for easy income without any trading experience can kiss their investments goodbye for they will indeed fail or give up within couple of months. That shouldn’t surprise any of us though. A lot of people wish to try their luck without truly getting serious with what they have started.
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