Headline News About Forex
Our Featured Forex Trading System Writer
Make A Killing Online With This Automated Analytical Forex Software as seen on CNN
How To Separate Hype From Reality In Forex trading
By Greg Hall
For most people who may be thinking of entering the Forex trading game some of the terminology can be confusing. In fact there are many who don't really understand what Forex is about to begin with. In a nutshell, For most people who may be thinking of entering the Forex trading game some of the terminology can be confusing. In fact there are many who don't really understand what Forex is about to begin with. In a nutshell, Forex or FX is a term that is used to describe the trading of multiple forms of currency all over the world. Some want to get into FX just because they like the idea of how exciting and exotic it sounds to be trading foreign currencies, but there are many risks and advantages involved.
For starters, the market for foreign exchange is enormous. There are over 100 times more trades than the New York Stock Exchange with nearly two trillion trades every day! In addition to the incredible volume, Forex trading is also almost entirely speculative, which gives it somewhat of a higher risk than some may be accustomed to. Still another large difference is that unlike trading through a central exchange like the NYSE, the trading occurs on the over the counter or OTC market. Trades like these are completed directly between the seller and the buyer via telephone or online. One of the biggest differences in my opinion that can be a positive or a negative is that the trading takes place 24 hours a day in major cities all over the world, unlike the major stock markets which close at specific times each day.
The main trading that drives the Forex market is called currency trading which is a trade where one currency is bought and another sold at the same moment. This act of trading is known as a "cross" in the FX movement. Some of the most traded currencies include the US dollar, the Australian dollar, the British pound sterling, the Japanese yen, and the European Euro, with the US dollar accounting for almost 90 percent of all currency trading. The next most popular currency is the Euro, which is involved in almost 40 percent of all trades and gaining popularity all the time.
The values of the currencies fluctuate daily in reaction to news reports on changes in inflation, interest rates, gross domestic product growth, trade and budget deficits and surpluses, as well as many other economic factors. This is the reason you will see those who are highly involved in Forex trading following the news reports very close and staying on top of breaking news 24 hours a day through the internet and 24 hour cable news channels.
As you can see there are many differences between FX trading and regular stock trading and it is very easy for a novice to lose a lot of money by not being informed. It is best to start out slow and learn the business before investing a large sum of money.
Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as foreign currency trading at www.FXTradingStrategies.com
Quick Forex Ideas
foreign exchange risk
Yes, but as a position trader I never use tight stops. Same goes for trailing stops. All very far away from the market not to be taken out by meaningless market noises. Initial stop is always 1% of my total equity, and never commit the whole position at a go but always scale in and scale out.
You can avoid your problem in most cases by leaving the market always by trailing stops, i.e., do not set the profit target. So, any winning trade must be held as long as market does not tell you to leave by hitting your trailing stops. When you enter the market by market signals and leave by stops or trailing stops, it solves the most difficult part of decision making process rather easier for traders.
USD/JPY HINTS
One of the silly rules of thumb in USD/JPY trading is it rarely moves 700-800 pips in a row without 200 pips or more correction in the middle and it almost always retraces back to 350 pips advance point from the start of its 700-800 pips move. All because of liquidity problem in Yen market.
More info on Forex software
foreign exchange converter
Unquestionably, the foreign exchange or Forex market is the largest financial market in the world. This results in fair prices and narrow spreads. There are no restrictions to sell currencies short, unlike stocks, which have to be sold short on an up tick rule. This means that as a Forex trader you can make money just as easily in rising and falling markets. Stock liquidity is reduced after regular trading hours. Foreign exchange trading does not exhibit this problem because the currency market is open around the clock.
forex trader
The bid/ask spread for EUR/USD should never exceed 3 to 4 pips to improve profiting from Forex trading. For an active trader profiting in Forex with a 2 pip transaction cost is highly preferable.
Your Latest Forex Trading System News
Samsung chairman steps down
Tue, 22 Apr 2008 04:09:38 EDT
The chairman of the Samsung Group announced his resignation Tuesday, just days after his indictment amid an investigation into allegations of corruption.
Global Forex
Global Forex Trading
Forex Trading strategies
Forex Currency Trading
Make A Killing Online With This Automated Analytical Forex Software as seen on CNN
How To Separate Hype From Reality In Forex trading
By Greg Hall
For most people who may be thinking of entering the Forex trading game some of the terminology can be confusing. In fact there are many who don't really understand what Forex is about to begin with. In a nutshell, For most people who may be thinking of entering the Forex trading game some of the terminology can be confusing. In fact there are many who don't really understand what Forex is about to begin with. In a nutshell, Forex or FX is a term that is used to describe the trading of multiple forms of currency all over the world. Some want to get into FX just because they like the idea of how exciting and exotic it sounds to be trading foreign currencies, but there are many risks and advantages involved.
For starters, the market for foreign exchange is enormous. There are over 100 times more trades than the New York Stock Exchange with nearly two trillion trades every day! In addition to the incredible volume, Forex trading is also almost entirely speculative, which gives it somewhat of a higher risk than some may be accustomed to. Still another large difference is that unlike trading through a central exchange like the NYSE, the trading occurs on the over the counter or OTC market. Trades like these are completed directly between the seller and the buyer via telephone or online. One of the biggest differences in my opinion that can be a positive or a negative is that the trading takes place 24 hours a day in major cities all over the world, unlike the major stock markets which close at specific times each day.
The main trading that drives the Forex market is called currency trading which is a trade where one currency is bought and another sold at the same moment. This act of trading is known as a "cross" in the FX movement. Some of the most traded currencies include the US dollar, the Australian dollar, the British pound sterling, the Japanese yen, and the European Euro, with the US dollar accounting for almost 90 percent of all currency trading. The next most popular currency is the Euro, which is involved in almost 40 percent of all trades and gaining popularity all the time.
The values of the currencies fluctuate daily in reaction to news reports on changes in inflation, interest rates, gross domestic product growth, trade and budget deficits and surpluses, as well as many other economic factors. This is the reason you will see those who are highly involved in Forex trading following the news reports very close and staying on top of breaking news 24 hours a day through the internet and 24 hour cable news channels.
As you can see there are many differences between FX trading and regular stock trading and it is very easy for a novice to lose a lot of money by not being informed. It is best to start out slow and learn the business before investing a large sum of money.
Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as foreign currency trading at www.FXTradingStrategies.com
Quick Forex Ideas
foreign exchange risk
Yes, but as a position trader I never use tight stops. Same goes for trailing stops. All very far away from the market not to be taken out by meaningless market noises. Initial stop is always 1% of my total equity, and never commit the whole position at a go but always scale in and scale out.
You can avoid your problem in most cases by leaving the market always by trailing stops, i.e., do not set the profit target. So, any winning trade must be held as long as market does not tell you to leave by hitting your trailing stops. When you enter the market by market signals and leave by stops or trailing stops, it solves the most difficult part of decision making process rather easier for traders.
USD/JPY HINTS
One of the silly rules of thumb in USD/JPY trading is it rarely moves 700-800 pips in a row without 200 pips or more correction in the middle and it almost always retraces back to 350 pips advance point from the start of its 700-800 pips move. All because of liquidity problem in Yen market.
More info on Forex software
foreign exchange converter
Unquestionably, the foreign exchange or Forex market is the largest financial market in the world. This results in fair prices and narrow spreads. There are no restrictions to sell currencies short, unlike stocks, which have to be sold short on an up tick rule. This means that as a Forex trader you can make money just as easily in rising and falling markets. Stock liquidity is reduced after regular trading hours. Foreign exchange trading does not exhibit this problem because the currency market is open around the clock.
forex trader
The bid/ask spread for EUR/USD should never exceed 3 to 4 pips to improve profiting from Forex trading. For an active trader profiting in Forex with a 2 pip transaction cost is highly preferable.
Your Latest Forex Trading System News
Samsung chairman steps down
Tue, 22 Apr 2008 04:09:38 EDT
The chairman of the Samsung Group announced his resignation Tuesday, just days after his indictment amid an investigation into allegations of corruption.
Global Forex
Global Forex Trading
Forex Trading strategies
Forex Currency Trading
posted by The Forex Guru | 3:26 AM
0 Comments:
Post a Comment
<< Home