An increasing number of people are being attracted by foreign currency trading in preference to the variety of other forms of investment available today and it is not hard to see why.

The Forex market is the biggest trading market in the world and shows a growing trading volume which has risen from in the region of $500 billion dollars to $2 trillion in the last twenty years. It is also an amazingly liquid market which is not tied to any particular location and operates around the clock across the world making it in effect a permanently open market. As one market closes its doors another is opening and you can effectively follow the markets across the world as you trade and even more or less eliminate the fact that the market in your home country is closed at the weekend.


As a consequence it is not surprising that foreign currency trading appeals to a wide and growing variety of big and small traders each of whom enjoys a wide choice of trading strategies arising out of the large number of factors which affect foreign currency rates. Indeed for a lot of traders entering the market it is the fact that there are so many different factors that affect foreign currency exchange rates which they find particularly attractive as it allow them to use a large range of different tools when trading in this extraordinarily exciting market.


Possibly the biggest influence today however on the future growth of the market and its popularity is to be seen in automation which is easier than ever before to achieve and which brings with it many advantages.


Automatic foreign currency trading permits trades to be conducted anywhere in the world in real time and virtually eliminates the losses that are so often seen in manual systems which are trying to operate in such a fast moving and unpredictable environment. Anybody who has experienced trading using manual systems knows only too well the frustration brought on by a series of losses produced by nothing more than a simple time delay in buying or selling.


Automated Forex trading also permits you to operate in a number of different currency markets at the same time without any problems with the time zones of the markets in question. If you are in the USA at 1 o'clock in the morning then automated trading allows you to work with traders on the opposite side of the world in a variety of different countries all at the same time without any problem.


For a lot of traders one difficulty is that of the management of risk and this too is reduced as we move into automated trading. Manual systems often make traders nervous about whether payment will be forthcoming following the completion of a trade but because payments can now be matched in real time this is far less likely. Indeed, as automated systems continue to develop settlement systems will also be updated and any risks are likely to be all but eliminated before too much longer.


Technology has advanced by leaps and bounds in recent years and is going to continue to do so in the years ahead. Most importantly, access to this technology simply and cheaply from the comfort of our own homes, or today even when we are mobile, means that we can all now handle our investments with ease. For those of us working in the currency trading world automated foreign currency trading will undountedly come as a welcome addition to an already great form of investment.


LearningForexTradingOnline.com provides advice on everything from automated currency trading to using an online currency calculator

Avoiding Forex-Related Frauds and Scams

Marquez, author of The Part-Time Currency Trader, wants you to take precautions when shopping around for forex brokers.

A lot of people have been ‘burnt' from scam operations on the Internet. Their sites may look so perfectly legitimate that you doubt whether they would have gone through all that trouble building a trading platform just to steal your money. Beware.


The first thing I look for is the geographical location of the broker. If I find that they are based in a country where the financial industry is, in my opinion, relatively unregulated and under-developed, I quickly forgo signing up. This is terrible news for honest brokers in those countries, but your job as a trader is to protect your capital. If you lose that, then you cannot trade. The onus is on them to convince you that they will do the right thing by you as an investor.


I started out with an Australian broker. Currently I am using an American one. I have not tried UK-based brokers but the British financial industry is one of the best. Companies that are based in countries such as Japan , Germany and France are probably just as good too, if their website speaks your language.


Notice any license numbers that they may have registered with regulatory bodies that act like government watchdogs who oversee the finance and investments industries. These are organisations that impose strict rules to safeguard your investment. Some of these rules may include the requirement that brokers segregate all customer funds from the operational funds of the business. Your money is required to be put in highly-reputable banks and the funds are only withdrawn from these accounts upon specific withdrawal requests.


Take note that there are some fake regulatory bodies being thrown around in cyber-space as well. Take a look at how long they have been operating for. Try and search out any reviews or comments made about them. See if you can find forums where traders have discussions about their brokers.


Below is a list of things to keep in mind to help you avoid being a victim of a scam:


• Stay Away From Opportunities That Sound Too Good To Be True

There are people who may have just acquired a large amount of money just and recently are the same and are shopping around for safe investment vehicles. These may include retirees who have access to their retirement funds. It is understandable why retirees would be drawn to ‘high-return, low-risk investments'. This is also what makes them very vulnerable. If you identify yourself to be one of these people, be careful. A lot of deceitful characters are after your money. Furthermore, only allocate a tiny amount of your money to trading until you can start growing it. Not all people can trade successfully, so it is a venture you should take on haphazardly. It is your life savings at risk.

• Avoid Individuals Or Organizations Who Claim To Predict Or Guarantee Large Profits

Any form of trading is hard. Trading currencies is no different. Be wary of statements that make it sound easy. Statements like:

• “Whether the market moves up or down, in the currency market you will make a profit”;

• “Make $1000 per week, every week”;

• “We are out-performing 90% of domestic investments”;

• “You'll make returns of 70% a year”;

• “Here is a no-risk strategy”.

If they could make such returns, why would they even bother letting you know about it.

• Be Wary Of Companies Who Downplay Investment Risks

Hold your wallet tight and zip up your purse when companies say that written risk disclosure agreements are routine formalities imposed by the government. Watch out for statements like:

• “With a $10,000 deposit, the maximum you can lose is $200 to $250 per day”;

• “ We promise to recover any losses you have ”.

• Be Wary Of Companies That Claim To Trade In The ‘Interbank Market'

Do not believe it when some people say that they have access to the ‘Interbank market' or that they can give you access to trade in that market because that's where bargain prices can be obtained. This is not true. The ‘interbank market' is not a place, it is not a physical building. It is simply a loose network of currency transactions that are negotiated between big financial institutions and other large companies.

• Ethnic Minorities Are Often Targeted

Ethnic newspapers and television ‘infomercials' are sometimes used to attract Russian, Chinese and Indian minorities. Sometimes these ads offer so-called ‘job opportunities for account executives to trade foreign currencies', whereby the recruited ‘account executive' is expected to use his own money to trade currencies and would often times be encouraged to recruit members like their friends and family to do the same.

• Seek Out The Company's Background

Check any information you receive to be sure that the company is who they claim to be. If at all possible, try and get the background of the people operating the company. Do not rely solely on oral statements and promises made by the company's employees.

• If You Are In Doubt, It Is Not Worth Risking Your Money

If after trying to solicit information and at the end of it all, you are still in doubt about the credentials of a particular company, my suggestion is to start looking elsewhere.

You may find further information by contacting government ‘watchdogs' because they keep up to date with trends and reports regarding scams and other fraudulent activities. Please check the resource section of this site for the information of organizations that regulate the securities industry, sorted by country. There is also a list of brokers that you may want to look at.

This is an excerpt, modified from the book: The Part-Time Currency Trader.

A way of winning huge Profits

A way of winning huge profits. Currency exchange is the trading of one currency against another. Professionals refer to this as foreign exchange, but may also use the acronyms Forex or FX. Currency exchange is necessary in numerous circumstances. Consumers typically come into contact with currency exchange when they travel. They go to a bank or currency exchange bureau to convert their "home currency into , the currency of the country they intend to travel to. They may also purchase goods in a foreign country or via the Internet with their credit card, in which case they will find that the amount they paid in the foreign currency will have been converted to their home currency on their credit card statement. Although each such currency exchange is a relatively small transaction, the aggregate of all such transactions is significant. Businesses typically have to convert currencies when they conduct business outside their home country. They exportin goods to another country and receive payment in the currency of that foreign country, then the payment must often be converted back to the home currency. Similarly, if they have to import goods or services, then businesses will often have to pay in a foreign currency, requiring them to first convert their home currency into the foreign currency. Large companies convert huge amounts of currency each year. The timing of when they convert can have a large affect on their balance sheet and bottom line.Investors and speculators require currency exchange whenever they trade in any foreign investment, be that equities, bonds, bank deposits, or real estate. Investors and speculators also trade currencies directly in order to benefit from movements in the currency exchange markets. Commercial and Investment Banks trade currencies as a service for their commercial banking, deposit and lending customers. These institutions also generally participate in the currency market for hedging and proprietary trading purposes. Governments and central banks trade currencies to improve trading conditions or to intervene in an attempt to adjust economic or financial imbalances. Although they do not trade for speculative reasons --- they are a non-profit organization --- they often tend to be profitable, since they generally trade on a long-term basis. Currency exchange rates are determined by the currency exchange market.A currency exchange rate is typically given as a pair consisting of a bid price and an ask price. The ask price applies when buying a currency pair and represents what has to be paid in the quote currency to obtain one unit of the base currency. The bid price applies when selling and represents what will be obtained in the quote currency when selling one unit of the base currency. The bid price is always lower than the ask price. Buying the currency pair implies buying the first, base currency and selling (short) an equivalent amount of the second, quote currency (to pay for the base currency). (It is not necessary for the trader to own the quote currency prior to selling, as it is sold short.) A speculator buys a currency pair, if she believes the base currency will go up relative to the quote currency, or equivalently that the corresponding exchange rate will go up. Selling the currency pair implies selling the first, base currency (short), and buying the second, quote currency. A speculator sells a currency pair, if she believes the base currency will go down relative to the quote currency, or equivalently, that the quote currency will go up relative to the base currency. After buying a currency pair, the trader will have an open position in the currency pair. Right after such a transaction, the value of the position will be close to zero, because the value of the base currency is more or less equal to the value of the equivalent amount of the quote currency. In fact, the value will be slightly negative, because of the spread involved. For more information contact Currency Traders at www.mynetto.com

Forex Secrets - Delusion No1 - Forex Currency Rate And Economic Factors Impact On Exchange Rate

The delusion conceptually propounds that intraweek and intraday FOREX currency quotes movement is governed by either improvement or by deterioration of the state's economic situation. But in reality, even in case the actual Forex news is superior to the estimated one, the FOREX quotes up/down movement is of 50/50 probability.
This statement is thoroughly important. Once the job of Forex trader is gambling on FOREX exchange rates differential (FOREX pairs up/down movement), the following is to be realized to obtain faultless profit:
FOREX pairs pricing mechanism (say at point X where you are completing the market analysis)

Factors imparting growth/decline to FOREX rates (up/down from point X).

Thus, having understood the FOREX rates factors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of whether to buy or to sell the given currency pair.
So, what are these factors?
FOREX student suggest unambiguous interpretation of factors responsible for the price formation and the fluctuations there of:
Forex rate constitutes a demand-supply balance for a given goods (currency).

Any violation of this balance, (for instance, in case where the estimated news is in disagreement with the issued official one), results in the FOREX rates reciprocation in chase of a new demand-supply balance. Poor demand brings about decline in a certain currency rate, with a high demand leading to the growth of the latter. The situation continues as long as the currency buy/sell demand comes to balance at another level or at another point.

Referring to the B. Williams ("Trading Chaos 2" Chapter 1 "The market is what you are thinking of it"):
Each world market is dedicated to distribute or share limited amount of something... among those desirous to obtain it most of all. The market affects it by way of finding out and identifying the exact price? Underlying the buyer'/sellers' power absolute equilibrium point.
The above point is readily established by stock, futures, bonds, FOREX and options markets, be it either via an open auction or by virtue of a computerized facility. Markets spot this point prior to any misbalance being detectable by you or by me or even by traders at the exchange floor.
With this scenario holding true - and it really does - we are in position to jump at certain simple yet important conclusions as regards the information being circulated through the market and enjoying doubtless acceptance".
Thomas Demark was more laconic in "Technical analysis - an emerging science":
"Price movement is governed by demand and supply. Should demand exceed supply, there's a price rally and if visa versa, there's a price decline. All economists do share these underlying principles".
Hence, the role of fundamental analysis for FOREX market is readily apparent.
In scholar fiction one will discover roughly the following explanation, persistently wandering from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country's economic fundamental data, viz. by tracking the factors reflective of the country's economy condition as below:
State economy condition dynamics indicators (GDP, trade & payments balance, current account, industrial production, etc. It is knowledge, that the higher the above indicators - the faster the economic and the currency price growth);
Stock indices, via average arithmetic index of the country's securities market condition and dynamics. E.g.: 0.3% daily DJI growth in the USA means that this certain day the shares of 30 leading US companies, being pictured by DJU, went 0.3% more expensive. By similarity, DAX30 is the major German index, incorporating the price of shares of the country's 30 leading companies.
The country's interest rate, since the higher the rate, the greater number of investors is eager to invest into the country's economy and hence into national currency strength.
Rate of inflation (the higher the rate, the quicker the National Bank will hike the interest rate). With this assumption, the CPI constitutes a key factor.
Money supply growth in domestic market, which fact brings about the inflation, leading to the interest rate hike.
The country's gold and currency reserve assets.
Variation dynamics correlation of: balances of payment, trade balance, state budget, gross domestic product (GDP), etc.
Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)
Construction statistics (construction spending, new home sales, housing under construction, building permits, etc.)
Labor statistics (unemployment rate, new jobs, etc.)

Society investigations (consumer confidence, consumer sentiment, purchase managers and service managers sentiment, etc.)
To be considered additionally are the country's political stability and tranquility (clearly, any political, natural and other cataclysms are sure to turn investors nervous making them withdraw the investments from the country, thus weakening its national currency). And with the currency being the national economy derivative, changes in economic data will inevitably result in the above currency rate movement.

Conclusions:
Progress in economy results in the currency exchange rate rally.
Decrease in economic indicators leads to the national currency rate decline.

To sum it up, critical economic and political news (whose calendar is issued in advance and is familiar to any trader) constitute a standing factor giving rise to misbalance and causing the currency rate fluctuations.
In anticipation of important economic and political news FOREX pair crawl to the rates as inspired by the estimates ("rumored trade"), whereas upon actual news there occurs a pulse motion of FOREX pairs in accordance with the scheme below;
Forex rate grows if actual news are better than the estimated one;

Forex rate declines if actual news are worse than the estimated one.

ARE YOU FAMILIAR WITH THESE ABC BASICS OF STUDYING FOREX?
Do you accept that one can earn money by way of using these basics, known to every trader?
Then why, having absorbed these economic axioms, 90% of Forex traders in the world are losers rather than winners.
Where is the delusion of the above ABC truth, nudging traders towards losses? Let us perform sort of point-by-point analysis.
The currency exchange FOREX market is a book-makers one. It is gambling on rates difference without direct money delivery to the exchange market, except for hedging of traders' funds by Forex brokers, via buy-sell difference especially during strong trends). Then, http://www.forexite.com reads: "Trading is performed without actual currencies supply, which fact cuts overheads and enables Forexite to go long and short on the currency" http://www.forexite.com/forexite_advantages/forex_advantages.html.
Comment: Have you ever met any book-makers;
- whose logics was coincident with that of THEIR clients (traders),
- whose stakes were being made in accordance with THEIR technical analysts forecasts, economic laws and common sense?
And what extent of doubt and skepticism should be attached to THEIR free "recommendations", "advice", "surveys" and "forecasts", laid out at THEIR sites through THEIR analysts?
As a regular result, over 90% of the world traders are still loosing their deposits at FOREX each time they follow Thomas Demark stereotype that "All the economists share these underlying principles".
Comment No.1. In as much as the above underlying principles are 90% contradictory to practice, it gives rise to the following question. Might these "underlying principles, shared by all economists including Thomas Demark" have possibly turned into dogma, alien to life and practice?
Comment No.2. What should a trader lean on: practice or dogma even if supported by great names, provided that the trader is purported at earning money?
FOREX analysts issuing their daily bulky market reviews are not FOREX traders in the overwhelming majority (see detailed discussion below). And on bringing together pairs 1, 2 and 3 there appears certain regularity.
Please, think over A. Elder words, that: "FOREX rates and the fundamental analysis are tied together with a mile-long rope. The fundamental analysis is ultimately decisive. But anything is likely to happen prior to this eventuality". Another, yet no less renowned trader and analyst, Bill Williams underlines the same mental regularity of an experienced professional trader (level 3 of his trader's skill rating as per "Trading Chaos 2"): "On attaining level 3 you emerge as a self-provided pro trader. You are always familiar with the market's basic, usually invisible structure. You no longer need to refer to others' opinions. You needn't read "Wall Street Journal", watch market-oriented TV programs, and subscribe to information bulletins, waste money on information channels".
Comment: Logically, there is a counter-implication, that if You are eager to become a successful trader, You are to restrict the influence of various surveys and recommendations on yourself even in case they originate from the world famous "Wall Street Journal", to say nothing of crude gurus in analyst skins who use to know ahead of time where currencies will go.
Forex news is a scheduled issue of fundamental data, which as a rule impairs FOREX rates a sharp pulse of motion. But then, why the currency rates movement vector is only 50% coincident with the ABC truism logics as to where the rate should rush in case of actual news being much better or worse than the estimate. And, please, make an attempt to answer the following question, stirring for every trader: why with the new being worse than expected (say, on US economy), the USD currency would initially fall by 40 pips (news work-off) but in 5 to 10 minutes it would swivel back and would display a 200-point rally, with no account to either the issued news or to common sense.
Below are some examples:
Fig. 1. GBPUSD chart as of April 1, 2005 after the news, positive for the GBP and negative for the US economy.

See Note below
In March the CIPS manufacturing index amounted to 52.0 (with the previous data revised from 51.8 to 51.6). Oil price in NYC has grown by USD 2.40 up to USD57.70 per bbl (new record of the latest 21 years). Non-farm payrolls in the USA was minimum since last July (previous data revised towards lower values). There has been a decline in the Michigan sentiment index to 92.6 (median estimate was 92.9, with 92.9 previously).
All the US indices faced a fall down. DJI at NYSE has fallen by 99.46 pips (-0.95%) towards closing at 10404.30. NASDAQ declined by 14.42 pips (-0.72%) to 1984.81. S&P500 slipped by 7.67 pips (-0.65%) to 1172.92. 30-yr US Bonds yielded 4.729 (0.037 lower as compared to the previous close). By contrary, FTSE100 has grown by 19.60 pips (+0.40%) to 4914.00.
Now, the question is to certified economists: what will happen to the GBPUSD within one day or even several hours upon publication of these data? You are right, USD should not simply fall down, it should collapse. Powerfully, swiftly. Well, well...
And this time, the same question to experienced traders. By FOREX news headlines You might have guessed that the events are taking place at the Friday American session. Correct. Initially, anyway, the GBPUSD chart will go up by 100 pips (news wok-off), followed by a pullback. Then Forex chart starts a new rally.
It is now to be tracked whether the GBP will breach the latest rally high or not. If affirmative, it will rush up by approximately 160 pips (Elliott wave 1 was 100 pips, while EW 3 is 60% longer). But if the high is not breached? The GBP currency quote will in no way come to a standstill, moreover on Friday afternoon. Hence, - down, to the starting point! And, if breached, similar situation takes shape but the counting is performed in a "down" direction (EW1, being the same 100 pips plus 187 pips from 1.8826 to 1.8759 being EW 3).
The FOREX day trading tactics will be given scrutiny in a separate chapter. A still separate chapter will be dedicated to Friday trade at American session due to its inherent specifics and to strong seemingly inappropriate movement. The movement is, of course, appropriate. To say nothing of Friday. But it will be touched upon later.
Now, getting back to the currency chart. As apparent, the GBPUSD pair movement on Friday, April, 01, 2005 is in no way in conjunction with the US economy fundamental data. Each forex trader can provide from tens to hundreds of similar instances, where the news are of a certain vector, whereas, after a fraudulent rush along the news vector, a currency applies reverse thrust.
Thereafter, the next day, in daily currency surveys, certified economists are sure to explain all to us by way of inventing another undisguised nonsense, like: "in spite of certain data, traders decided that the currency has already worked-off this side". But! How could this occur on Apr, 01, 2005, provided that the currency has been staying flat in a narrow range in the course of the whole of the European session?
Otherwise, another explanation may emerge, that forex traders were expecting still more inferior news on the US economy... But! By how much more inferior, if according to DJ, the US non-farm payrolls MA was equivalent to 180K, with actual being +110K, estimate being +225K and prior being +243K? And in what manner do these economists count up world traders: by capita, by countries or by the funds, lost by those, who continued staying long in a holy belief in renowned academic scholars postulate of FOREX rates being tied up to countries' economy statistics.
I wonder if I'll ever chance to witness legal procedures to be instituted against any of those famous scholars, so that no one would dare claim that fundamental data trigger rate spikes.
The same pertains to economists, writing about the way, hundreds of thousands traders throughout the globe have conspired to conclude that it is time to reverse the trends with absolutely no grounds. Is it really feasible?
Such reading-matter is, but hammering a single question into one's head: is it lie or is it stupidity of those cooking daily reports for taking traders for a ride, fooling them up and keeping them from the truth, which might be of great avail to them in daily trading. Traders are not a decisive factor, thus rates movement is in no way dependent on their will. Practically in no way.
Wanna check? Negotiate with tens of traders of the trading floor and arrange for a simultaneous entry long on some exotic FOREX pair. In so doing, try to push up either the NZDHKD, or the NZDCAD, or the HKDCAD. No need? I think so. You'll certainly suffer failure with the above, to say nothing of the EUR, GBP, CHF.
Another example:
Fig.2. GBPUSD movement as of May 13, 2005.
See Note below
This is an M15 chart of the American session, where the USD pair has grown by over 100 pips from 1.8583 to 1.8481 against the news, negative for the US economy:
Most indices have dropped down: DJI at NYSE - by 49.36 pips (-0.48%) to close at 10140.12; S&P500 - by 5.31 pips (-0.46%) to 1154.05. NASDAQ has grown by 12.92 pips (+0.66%) to1976.80. 30yr US Bonds yielded 4.484 (0.047 drop from previous close)
There is a fall in Michigan sentiment index. In May UMich was 85.3 with med est 90.0 and prior 87.7. So it was worse than the estimate, reaching the low since March, 2003. The index decline was being observed for the fifth month.
The April US export price index was +0.6% with prior of +0.7%.
Below are other similar examples of that same day.
Fig. 3. EURUSD chart as of May 13, 2005.
See Note below
Hundreds of examples may be offered, where the Forex news vector is opposite to that of the currency movement. Practically, actual news may happen to be superior or inferior to the estimate. FOREX quotes up/down movement is also of 50/50 probability irrespective of the above.
Why does it happen and what is the way for a trader to pinpoint entries and exits? This is going to be discussed in ensuing chapters of this book.
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/



Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org

Forex Trading Success

Self control and discipline can be nurtured and strengthened over time and are extremely valuable qualities to on. In this article the Directorate talk about how these qualities relate to current and projected future developments in the Forex industry.
Manual Forex trading is a time-tested and market proven method for Forex trading. There is no doubt that manual Forex trading is here to stay. Many of the most skilled full-time Forex traders prefer this method. The key words here are skilled full-time traders.
You see, manual Forex trading can be time consuming. While the process of Forex technical analysis gets a bit easier and more efficient with practice in manual Forex trading it can never be completely eliminated. Manual Forex traders will always need to complete their technical and perhaps even fundamental analysis prior to executing their Forex trades.
As you know, fundamental Forex analysis has to do with looking at economic indicators within and between nations. Fundamental Forex indicators such as Consumer Price Index, Non-Farm Payroll, Gross National Product, Industrial Production, Producer Price Index, Retail Sales, Balance of Payments and Interest Rates are many of the most common fundamental indicators Forex traders seek to incorporate in their analysis.
Needless to say using both fundamental and technical analysis is quite complex and can be a very time consuming challenge. Except for "news" traders many Forex traders default to primarily using Forex technical analysis.
A prime example of "news" is the Non Farm Payroll announcement. This announcement normally takes place on the first Friday of each month at 8: 30am Eastern Time. Forex traders who trade the news position themselves in the market to capture as many PIP's as possible during the market corrections that take place just after a "news" release. Forex traders who trade the news rely quite a bit on fundamental indicators in making their trade decisions.
New Forex software programs that gather and interpret Forex fundamental indicators have been around for a while and they will continue to improve their accuracy with time.
Speaking of Forex software programs, one of the most rapidly developing forms of Forex software are "Expert Advisors". Forex Expert Advisors (EA's for short) are software programs that operate within your Forex trading platform. So far, the industry leading Forex trading platform for EA's is the Metatrader 4 Trading Platform designed by Securities OBJECT DESCRIPTION.
There are several advantages to using an EA. Perhaps chief among these advantages is the fact that the "on-board" programming of the EA eliminates the need for the Forex trader to spend a lot of time doing technical analysis. Once an EA is properly initiated, it will automatically trade a Forex pair specified, or pairs, using a predetermined strategy or Forex trading approach.
This can be a huge time-saver.
With an EA the Forex technical analysis is handled by the Forex trading logic programmed into the EA. The EA functions off of a predetermined set of "rules" which guide its operation. The EA enters the Forex trade when the entry conditions are met and exits the Forex trade when the exit conditions are met. Each EA has a different set of predetermined rules. Each rule is typically controlled by one or more user adjustable "switches". These switches are optimized at the time the EA is delivered to the user and can be saved as a switch settings profile. Once the default switch settings are saved, the user can make changes to the switch settings if they wish. It is important to remember that the best way to determine EA switch settings is through the back testing process.
Back testing is a process by which each switch or set of switches are methodically tested using actual past market data from your Forex trading platform. While back testing takes much less time than forward testing it is still a painstaking and time consuming process but the results can be very revealing and informative. This process will tell you such things as, for example, which time frame (s) and currency pair (s) are the most profitable to trade.
Back testing is not necessary in order to optimize the settings for an EA and as such it is very valuable process but the process is not perfect. Data mismatches can occur during the back test process which can degrade, the results used. The source of these data mismatches is not known at this time but it is an industry wide problem and the solution to the mismatch problem is being vigorously pursued.
Even with its flaws the back test process improvement with regard of utmost importance when it comes to optimizing the performance of any EA.
The time saving nature of using an EA coupled with the stress reducing effect that it has on the Forex trader has boosted the popularity of this kind of Forex trade automation.
It is just this kind of Forex trade automation that is helping to fuel the explosive growth of the retail Forex market. It is no longer necessary to stay glued to your computer monitor and "baby sit" your Forex trades. Not only that but a properly designed EA can perform functions that even the most skilled and experienced Forex traders find difficult. For example, there are EA's on the market today that can trade multiple currency pairs simultaneously. Other EA's can trade multiple Forex hedge trades at the same time!
We are in the midst of a quiet revolution toward increased trade Forex automation. It is safe to say that the trend toward Forex trade atomization is likely to continue and strengthen over the next several years. Because the advantages of using an EA outweigh the disadvantages, the popularity of using EA's is at an all time high and likely to set new records in the near future.
Even though EA's are reducing the need for Forex technical analysis they are not reducing the importance of self-control and discipline. It is common for Forex traders who are new to EA trading to have an urge to "manual" trade using the EAS. This is a mistake, first of all it defeats the purpose of the EA and second it can result in preventable loses.
With the trading EA EA is your Forex trading method. The EA trader is well advised to allow EA to do its work without trying to manually over-ride it (Plan your trade-trade your plan).
If possible, examine the back testing and forward testing results of an EA before you purchase it. Always demo trade with a new EA to confirm its operation before using it in a live account.
EA trading is gaining in popularity by leaps and bounds. EA trading is part of a major trend toward increased automation in the world of Forex. This trend is expected to expand and strengthen in the years ahead.
Being skilled in Forex technical analysis is always an asset but EA trading relies more on the logic of the Forex trading EA than it does the technical skill of the trader.
Self control and discipline are equally important whether you are trading or manual Forex EA
trading. Combine the personal qualities self control and discipline with using a well designed EA and you are on your way to profiting in Forex-the world's largest market.

Advantages for Trading Currencies

There are many benefits and advantages for trading currencies on the Foreign Exchange, better known as Forex. The Forex Exchange was established in 1971. This market grew at a steady rate throughout the 1970’s, but in the 1980’s Forex grew from trading $70 billion per day to over $1.5 trillion each day.

There are many huge players in Forex, but it is accessible to the individual trader. Each lot traded is worth approximately $100,000. By using leverage, an individual trader is only required to have a $1000 investment in the trade. This is a 100:1 leverage. No other market offers this amount of leverage.

Forex is also an extremely liquid market. Because it is so large, you can buy or sell in only seconds where your trade is only a mouse click away. You can also preset an automatic close for your position. This means you don’t have to sit and watch your position, just place the trade, set an exit point and go what you want.

Forex trades virtually 24 hours, 7 days a week. It only closes from Friday afternoon until Sunday evening. This makes it possible to set your own trading hours. If you trade part time and want to place your trade at 3am, log into your account and trade. If you are a full time trader, the same applies. No other market lets you pick the hours you trade.

There are no commissions charged on Forex, only a small transaction fee. This is not possible in any other market, as brokers charge a commission on each trade in all other markets. Because currencies are traded in pairs, so you are buying one currency and selling the other. For example, if an investor believes the US dollar will gain against the euro, you would buy the US dollar and sell the euro. It’s just that simple.

The potential for profit is good as there is always movement between currencies. Even a small change can result in substantial profits because of the large amount of money involved in the transaction. First and foremost, before just opening an account and blindly making some trades, you need proper training. Study the market, learn the terms used in trading, set up a demo account with a currency broker. Then, and only then, use real money to trade.

Are you prepared to currency trade?

Currency trading is the most popular way to earn to money and it is without doubt a very profitable market. However few are familiar with its unpleasant intricacies and most ignore a very important aspect: risk. It is not enough only to be given the chance to invest your money successfully, you have to be careful because Currency trading can be an efficient trading system or it can ruin you.

Why is Currency trading risky?

- Currency trading is very unstable. It is the subject of rapid and overwhelming changes. The market is volatile and it is influenced by political events. - One can loose at any time especially when he has just ventured into Currency trading. Experience, information and attention are necessary.

- Some unexpectedly loose the Risk Capital which sometimes consists of College money, the retirement funds or some other substantial sum that shouldn’t have been considered as Currency trading capital in the first place.

- Fluctuations in currency prices, discrepancies between interest rates in two different countries, insolvency of financial institutions that take part in transactions and limited flow of exotic currencies will most likely lead to loss.

- Large profits and minimal losses are impossible to predict with 100% certainty.

- The Currency trading market has great winning potential, but it also has loss potential. - Misinformation and the emotional baggage are most of the time cause of loss. Use facts, not hope or fear, when Currency trading.

- Sometimes trends can lead to money loss. - Huge leverage is available to traders. This leads to dangerous positions that risk too much in comparison with the size of the account.

- Lacks of money management and of back testing plans are the mistakes that currency traders make sometimes.

- Using brokers is sometimes inefficient because this counterpart can refuse to trade during volatile market conditions affecting the retail trader. They can even widen spreads. However it is recommended to collaborate with a broker, because he can deal in the interbank market and he surely knows more about Currency trading making it safer from other points of view.

- Scams were very common years ago when dealing with a broker. However, one can be confident with the person he is working with by checking their background and the Institutions he is associated with (large banks, important insurance companies). Don’t be frightened! It isn’t all about risks. And don’t start trading in fear! You will loose this way. You just have to keep in mind all possibilities and avoid unwanted situations only you can get yourself into.

All Currency traders have to be very well informed about their activity. They have to know technical analysis and how to read and interpret charts, they have to develop effective strategies and minimize risk. The financial exposure has to be limited and this can be done in many ways available to currency traders who inform themselves. So, educate yourself, be prudent, take risks only when you can handle loss and always be prepared for anything.

And have this in mind:

If Currency trading isn’t profitable then why are so many financial investors, banks, international institutions and important players that obtain huge amounts of cash by simply turning their own money into other currencies?

What is the relationship between various currencies?

Money. We all need it. We all want it. Trillions and trillions of dollars, pesos, euros, pounds, levs, francs, and more change hands every day for goods and services around the world. Most of us are only familiar with the money that is exchanged for goods and services in our own country and are only concerned with getting more of that. But there is a lot more to money than that.

What is the relationship between the currency in your country and the currency of some other country and why should it matter to me? I’m glad you asked. In this article we will explore some of the currencies around the world and answer some questions you may not even know you had.

First, if we are going to discuss currency and it’s relationship to other currency, we have to talk about Forex. That’s short for foreign exchange or the exchange of currency for a different type of currency.

There is no market in the world, including Wallstreet that can compare to Forex in volume of cash traded daily. Retailers, Governments, Currency Speculators, Banks, Corporations, and other financial institutions engage in forex or foreign currency exchange to the tune of trillions of dollars and other currency each day. It is a truly amazing thing to see. People making money just by trading one country’s currency for another.

Keeping up with the latest news in each country, economic trends and indicators, real-time monitoring of current currency values in comparison to another currency are all things required if you are going to speculate in this arena. More than that, some forex speculators will tell you is, you have to have a good feel for it. You have to understand economies and be able to recognize the events and conditions that will cause people to lose confidence in one currency or another. You have to know when to hold em and when to fold em, as the Kenny Rogers song goes.

If you would like to check the exchange rates for each of these currencies against other currencies, you can open a new browser window and put this url into your address bar.

It’s a Forex Calculator. http://uk.finance.yahoo.com/currency-converter?u

The following is a list of world currencies. It may not be every currency in the world, but it will give you an idea of the complexity of forex.

Albanian Lek, Algerian Dinar, Aluminium Ounces, Argentine Peso, Aruba Florin, Australian Dollar. Bahamian Dollar, Bahraini Dinar, Bangladesh Taka, Barbados Dollar, Belarus Ruble, Belize Dollar, Bermuda Dollar, Bhutan Ngultrum, Bolivian Boliviano, Brazilian Real, British Pound, Brunei Dollar, Bulgarian Lev, Burundi Franc. Cambodia Riel, Canadian Dollar, Cayman Islands Dollar, CFA Franc, Chilean Peso, Chinese Yuan, Colombian Peso, Comoros Franc, Copper Ounces, Costa Rica Colon, Croatian Kuna, Cuban Peso, Cyprus Pound, Czech Koruna. Danish Krone, Dijibouti Franc, Dominican Peso. East Caribbean Dollar, Ecuador Sucre, Egyptian Pound, El Salvador Colon, Eritrea Nakfa, Estonian Kroon, Ethiopian Birr, Euro. Falkland Islands Pound, Gambian Dalasi, Ghanian Cedi, Gibraltar Pound, Gold Ounces, Guatemala Quetzal, Guinea Franc, Haiti Gourde, Honduras Lempira, Hong Kong Dollar, Hungarian Forint, Iceland Krona, Indian Rupee, Indonesian Rupiah, Iran Rial, Israeli Shekel, Jamaican Dollar, Japanese Yen, Jordanian Dinar, Kazakhstan Tenge, Kenyan Shilling, Korean Won, Kuwaiti Dinar, Lao Kip, Latvian Lat, Lebanese Pound, Lesotho Loti, Libyan Dinar, Lithuanian Lita. Macau Pataca, Macedonian Denar, Malagasy Franc, Malawi Kwacha, Malaysian Ringgit, Maldives Rufiyaa, Maltese Lira, Mauritania Ougulya, Mauritius Rupee, Mexican Peso, Moldovan Leu, Mongolian Tugrik, Moroccan Dirham, Mozambique Metical. Namibian Dollar, Nepalese Rupee, Neth Antilles Guilder, New Turkish Lira, New Zealand Dollar, Nicaragua Cordoba, Nigerian Naira, Norwegian Krone, Omani Rial. Pacific Franc, Pakistani Rupee, Palladium Ounces, Panama Balboa, Papua New Guinea Kina, Paraguayan Guarani, Peruvian Nuevo Sol, Philippine Peso, Platinum Ounces, Polish Zloty, Qatar Rial, Romanian Leu, Romanian New Leu, Russian Rouble, Rwanda Franc. Samoa Tala, Sao Tome Dobra, Saudi Arabian Riyal, Seychelles Rupee, Sierra Leone Leone, Silver Ounces, Singapore Dollar, Slovak Koruna, Slovenian Tolar, Somali Shilling, South African Rand, Sri Lanka Rupee, St Helena Pound, Sudanese Dinar, Surinam Guilder, Swaziland Lilageni, Swedish Krona, Swiss Franc, Syrian Pound. Taiwan Dollar, Tanzanian Shilling, Thai Baht, Tonga Pa'anga, Trinidad&Tobago Dollar, Tunisian Dinar, U.S. Dollar, UAE Dirham, Ugandan Shilling, Ukraine Hryvnia, Uruguayan New Peso, Vanuatu Vatu, Venezuelan Bolivar, Vietnam Dong, Yemen Riyal, Zambian Kwacha, Zimbabwe Dollar.

Can you imagine sorting out all of the relationships between each of those currencies and precious metals?

Forex is not for the faint of heart it would seem, but it does make a fascinating topic. In some of the currency names you can see how it relates to world history. I hope you find this article has helped you with at least an explanation of what Forex is and how it works. There is a lot more out there about Forex. Learn more!

Online Forex Trading Strategy - How to Make Currency Trading Systems Work For You

Now that there are hundreds of Forex margin brokers, millions of free Forex trading tips websites and literally hundreds of thousands of Forex day trading strategy "home based business" Forex traders, we can say that virtually anyone with an internet connection can trade Forex with the pros.
In any power trading strategy, a proven trading method will mean that through Forex strategy testing and by using trading risk management, no more than one or two per cent of a total account value is put at risk in a single trade. This is key in the path to big Forex profits. Any trader beginning out will look at the trading methodologies available to them and decide to create trading rules for their Forex trading strategy.
Forex trading (currency trading) initiates should be aware therefore not only of technical and fundamental analysis and predicting Forex prices, but also of how to be a trading strategy tester and to have strong Forex trading rules that help them to make the big Forex profits they are seeking. The alternative is to have more experienced Forex trading systems used by more experienced traders end up causing you to lose all your money in your Forex business - the harshest possible outcome.
Having the following in place could assist you in getting started right away in Forex trading (currency trading): a Forex trading software platform; a free Forex trading strategy (or a paid for one for that matter); an understanding of fundamental and technical analysis and a trading risk management system. From these elements (and also the support of a daily Forex strategy briefing from a margin broker or some other site) you can start Forex trading in the fx market with your own Forex trading strategy rules.
Learning currency trading online needs to begin with sound trading risk management and how to manage your trading account balance by making intelligent risk decisions with your trading account. The risks can be higher with Forex because the moves in a week can be equivalent to a month in stock moves. Volatility is to be expected.
Currency trading strategy rules for a Forex business can be developed by amalgamating Forex trading systems of others or simply garnering a Forex education to include: fundamental and technical analysis; trading money management (risk management); a daily Forex strategy briefing from a "third party" and a way of creating Forex forecase signals (in other words a means of predicting future Forex prices from perhaps a technical setup on a currency pair or simply from Forex strategy testing that has been carried out.
Forex strategy testing can either be done through using a practice account through your broker or by paper trading your strategy. A third option is to use software such as Forex strategy tester which can run a simulation of what could happen if you trade by your rules with some limitations on accuracy.
Free Forex trading strategy tips are available from Forex ebooks webistes all over the web. The truth is that the Forex trading fx market needs to be treated as a business that runs like a Forex trading machine as much as possible. This is key if you are to make big Forex profits in live trading. Lack of regulation means that anyone can sell a "scalping trading strategy" or so-called "foolproof trading method" and make themselves out to be an expert or even say they are a long term bank trader when they are not. There is a need for caution therefore when deciding on where to get your Forex education because not any Forex trading guide is actually going to help in your predicting Forex prices in the near, medium or long terms.
It behooves you to go out and look at what is on offer from Forex trading websites and learn more about the global currency markets after you have read this article. Some sites are listed in the resource box at the end to start you off. Trading Forex online then presents challenges. The rest of this article will address those challenges. In order to trade effectively, a Forex trading guide is needed for the initiate in to the Forex markets to be able to learn online currency trading, understand trading risk management and how to manage money, discover technical and fundamental analysis, how these types of analysis of the market differ and how to apply them in creating a Forex trading machine.
This means that after all the cogs are set in place you will have a Forex trading machine that enables you to its like a professional and make decisions based in the moment and on the facts that are presented to you, rather than guess or gambling work - although there is invariably an element of risk, your job is to eliminate the risk as much as possible in applying your trading strategy.
To make this happen, you will start to think about what you may need in order to implement your trading strategy. For example, will you be needing a daily Forex strategy briefing from either a paid service or a free provider of its strategy briefings - such as perhaps your broker or a third party service. In your technical analysis will you be utilising traditional indicators such as those involved in a bands trading strategy (Bollinger Bands), will you rely on charts created by a its platform or other currency price forecast type service or will you be professional analyst charts to make your decisions?
A proven trading method is hard to come by. There are educators who have been trading Forex for banks and other institutions for many years. However they are still going to find it incredibly difficult to pass on their years of knowledge, at least not in the time most people want to go from knowing nothing about Forex trading (currency trading) to being an expert and making money with its as a business.
In sum, it is multidimensional. There are several aspects of absolute importance. These include strategy, both in terms of trading and money management, education - both initial and ongoing and focusing in on mastering a specific area whether that be a particular currency pair or aspect within the field - such as global economics of a particular country.