Monthly Archives: August 2012

Forex Strategy Secrets

Forex  Strategy SecretsIf you ask 100 forex traders to provide you with some measure of insight into their trading strategies and secrets, it’s a given that you’ll receive an equal number of answers. Each may have their own preferred or “secret” strategy, or combination of strategies, in their arsenal of forex trading tools, yet forex traders are a surprisingly friendly, helpful and egalitarian lot and as such, most traders are happy to share their secrets in the hope of picking up a new trick or two, or of helping a fellow trader to improve his returns. Most of these strategies rely heavily on the use and interpretation of market indicators and thus are of a decidedly analytical bent, but we’ll try to break down a few of the most well-known trading “secrets” for you in a simple and straightforward manner.

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Currency Forex Market Trading

currency forex market tradingSwapping currencies on the foreign exchange currency market (FOREX) represents a nearly $5 trillion dollar per day activity. That is roughly 10 times the entire capitalization of the New Zealand stock exchange on a daily basis.

The staggering amounts of money involved and the millions of participants provide some substantial benefits for the individual or retail trader.

Trades in any of the world’s major currencies can be a executed essentially instantaneously. The difference between the desired price and the actual price at which an order is filled, known as slippage, is negligible, unlike some other types of investments where an order may languish for some time, giving prices an opportunity to change to an extent where the trade is no longer desirable.

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Buying Foreign Currency

Buying foreign currency reserves is an investment strategy that takes patience, awareness of market trends and foreign events, and a bit of luck to pull off successfully. As such it is a somewhat less popular form of investment than, say, stocks or mutual funds. However to savvy investors foreign currency purchases can be an integral aspect of maintaining a diversified and hedged portfolio capable of withstanding unforeseen international events.

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Forex Trading: How To Become A Currency Trader

Forex Trading How To Become A Currency TraderWhether you’re looking for a way to get started in trading foreign exchange, looking to become a full-time foreign exchange trader or looking to occupy the space between the two extremes by supplementing your net income with profits derived from trading foreign exchange on a regular basis, you have got to start somewhere. The good news is that it’s quite simple to become a currency trader, since the tools you’ll need are widely available to you without having to search far and wide, however, there’s a great distinction between becoming a currency trader and becoming a successful currency trader with measurable trading gains; at the end of the day, which type of currency trader you become—successful or less-so—depends on your skill set, your level of discipline and your willingness to follow some basic, common sense advice.

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How To Easily Spot A Forex Scam

If you’ve got experience in trading in the stock market, then chances are good that you’ve learned how to spot a stock scam or to notice the signs of stock manipulation along the way. Scams that hinge on the unscrupulous activity of stock promoters and company insiders display certain visible characteristics (such as unwarranted spikes in volume or sudden price volatility) that can be identified and investigated. It’s more difficult, however, to identify a stock scam that’s put into action by unscrupulous stockbrokers (such as front running or circular trading), because the retail investor does not have any insight into the brokerage house’s internal practices and therefore, has no independent means of researching or confirming their hunch that certain activity may be fraudulent. This situation parallels exactly the dangers of getting taken in by a forex scam.

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How to Speculate In The Currency Market

How to Speculate In The Currency MarketSpeculation as a concept is not unique to the foreign currency markets. Indeed, as a financial concept, speculation—the trading of financial instruments or assets for the purpose of profiting from fluctuations in price—is applicable to most every asset class, whether stocks, commodities or a wide variety of financial instruments. As it specifically relates to the currency markets, speculation involves the buying or selling of currencies in order to profit from movements in exchange rates; these movements between pairs of currencies can be instigated by political events, or by economic factors such as inflation, interest rates and an increase or decrease in import and export figures. All told, exchange rate movements can be influenced by a variety of factors which may be difficult to predict, but which may nonetheless spark the onset of a trend which the retail currency speculator can identify and recognize if he follows his chosen currency pair(s) sufficiently closely. As with the trading of stocks and other equities, the key to achieving success in currency speculation lies not only in knowing how to spot a trend, but further, in developing a talent for knowing when to get in, when to hold and when to get out.

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What Is The Currency Exchange Rate Today

What Is The Currency Exchange Rate TodayIf you’ve never left the family farm to travel to distant shores, then you may be unaware of the concept of currency exchange rates, or unsure of why such a concept is even necessary. Perhaps you lie at the opposite end of the spectrum and have vast globe-trotting experience, but have never quite understood why the guy in the Paris airport wants to sell you Euros in exchange for your dollars at a different rate than he wants to buy your Euros back from you when you’re heading home; after all, Euros are Euros and dollars are dollars, aren’t they? As you will see, that all depends on where you stand in the currency exchange business.

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Beginner’s Guide to Foreign Exchange

Everyone who’s ever left home for a vacation abroad has had to exchange their home currency for the currency of the country they were visiting. If this has happened to you, hopefully you were aware of the need to make this currency exchange before attempting to pay for a cab ride from the airport in Tokyo to your hotel in the Ginza with dollars. Regardless, however, of where you may have exchanged your money, at the moment you did you participated in a so-called “spot” transaction in the largest financial market in the world: the foreign exchange (or foreign currency) market, through which roughly three trillion dollars flow each day.

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How To Find The Best Forex Trading Broker

How To Find The Best Forex Trading BrokerAs is the case when the subject is investing in stocks, the choice of the correct forex trading broker is crucial to having success in the retail forex trading market. In fact, one could argue that in forex trading, the choice of broker is of even more exaggerated importance than in stock trading because of the easily-accessible leverage which comes part and parcel with the opening of a mini or micro forex trading account and the potential damage that can be caused by dabbling in leveraged forex trading: the potential for losses far outweighs the losses that the average retail penny stock trader can incur when trading on margin. This is true because although a penny stock investor may have access to the ability to trade on margin, he has no obligation to do so; many forex brokers, in contrast, require that their retail clients avail themselves of the offered leverage so that they can purchase the minimum lot size required by the broker to begin trading. Thus, the stakes in forex trading are simply higher, and so the retail forex trader should be equally highly discriminating in their choice of forex trading broker.

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What Are The Best Ways To Trade Forex Online?

Most people are aware that forex trading, like all forms of investing, is associated with a certain degree of risk. The best way to trade forex online will incorporate methodologies to minimize your risk while maximizing your potential profits in a manner that optimizes your efficiency, your forex-related education and your opportunities. In this article we’ve compiled a list of the steps that you’ll need to take in order to ensure that you’re trading forex online in the best possible way.

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