Online Forex Currency Trading System

Forex Made Easy: 6 Ways to Trade the Dollar (Review)

2008-02-23T09:18:00.000-08:00

From the Introduction

The foreign currency market is the largest and most liquid trading market in the world, with $1.5 trillion or more traded every day. And in our increasingly barrier-free global financial markets, online traders and investors armed with inexpensive point-and-click trading systems, along with a new attitude that markets should be open to all traders, all the time, have made it among the most accessible!

Problem is, the majority of books written on FOREX trading have been needlessly complex and technically dense, written for institutional investors making billion dollar-plus trades. FOREX Made Easy changes all that, telling you everything you need to know minus the unnecessary detail and tactics. The first book to provide you with only the information you need, to allow you to get a feel for the market and determine how to fit FOREX trading into your long-term investing program, this straight-talking guidebook reveals:

What the FOREX is, and how and why it has become the major player in today's financial markets
Clear instructions for setting up a trading station, opening an account, and placing your first order
6 Steps to FOREX Success--Concise, effective rules for successful trading
Fundamental analysis and the FOREX--Economic indicators, inflationary indicators, and more
Technical analysis and the FOREX--From basic charts and patterns to Fibonacci, Elliot Wave, and more
Money management principles to ensure that you trade with your head instead of your heart
Business and tax strategies for squeezing every financial advantage from your FOREX trading practices

FOREX Made Easy gives you much more than just facts and numbers. This first-of-its-kind book provides you with the tools and techniques you need to stand toe-to-toe with the world's most powerful traders and institutions, using FOREX trading like they have for years to both offset your market risks and augment your profits. Simple, uncomplicated, and filled with examples of individual traders using their smaller size to tremendous advantage in the institution-dominated FOREX, it will open your eyes to an opportunity that is unique, unprecedented, and bound to become a staple for traders looking for new sources of profits, and innovative techniques to protect those profits.

Book Description

The first plain-English introduction to foreign currency exchange trading--one of today's hottest profit opportunities

The foreign currency market is the largest financial market in the world, and foreign exchange trading is quickly becoming one of today's most high-profile, potentially lucrative markets. One problem is that books on the topic are complex, technically dense, and difficult for Forex novices to grasp.

FOREX Made Easy is the first book to approach the topic in a detailed yet accessible style, gradually and deliberately moving from simple to complex in easy and natural language. Author James Dicks--founder of the popular trading software 4X Made Easy--draws upon his trading knowledge to give readers only the information they need, from setting up a workstation to trading electronically.

This Forex guidebook provides traders with:

An easy-to-follow, six-step process for FOREX trading
Methods for gaining an advantage using technical analysis
Dozens of examples to illustrate key points

From the Back Cover

How Investors of Every Size Can Profit From Today's Largest Trading Market

Newly-developed online trading tools and tactics have helped individual investors smash the barriers between Main Street and Wall Street. Nowhere is this more evident than in the foreign currency market, or FOREX. Recent rule changes have opened this phenomenally lucrative market--formerly reserved for banks, corporations, and high net worth individuals--to independent investors, many of whom start with as little as $300! FOREX Made Easy is the first no-nonsense, step-by-step introduction to making the FOREX an integral part of your overall trading program. Pulling back the curtain to reveal how simple and straightforward FOREX trading actually can be, this results-based manual takes you through an easy-to-follow, six-step process to:

Use unheard-of 100:1 leverage to make the most of your limited trading capital
Practice market-proven techniques guaranteed to minimize your risk exposure
Trade the FOREX market online, 24 hours a day, six days a week

FOREX trading has quickly become one of the investing world's hottest opportunities, for all traders and investors, regardless of their size or strategy. Discover how to make it work for you, in renowned FOREX trading pioneer James Dicks' commonsense yet revolutionary FOREX Made Easy.

"In this book I have put together what I feel to be a very investor-friendly understanding of the FOREX market and how to trade it. This is for the everyday investor, looking for an alternative to the stock market for better portfolio diversification."

--James Dicks

From the Introduction

What the FOREX is, and how and why it has become the major player in today's financial markets
Clear instructions for setting up a trading station, opening an account, and placing your first order
6 Steps to FOREX Success--Concise, effective rules for successful trading
Fundamental analysis and the FOREX--Economic indicators, inflationary indicators, and more
Technical analysis and the FOREX--From basic charts and patterns to Fibonacci, Elliot Wave, and more
Money management principles to ensure that you trade with your head instead of your heart
Business and tax strategies for squeezing every financial advantage from your FOREX trading practices

Tips For Good Forex Trading

2008-02-23T09:15:00.000-08:00

Do you want a very good career that has a potential to make you earn a lot of money? Do you want to enter a particular financial market but donâ€™t know which one to choose?

If you answered yes to either of these questions, then the Forex market is right for you. If you want to make a lot of money, the Forex market can provide for you.

You have to realize that the Forex market is the largest and the most liquid financial institution in the world. With trades that go on for 24 hours a day, you will have an opportunity to make money any time of day you wish to. It is also a fact that the Forex market generates currency exchanges that amounts up to trillions of dollars each day.

With these kinds of feature, who wouldnâ€™t want to trade in this very large financial market?

Forex trading is not as complicated as it may sound. With the right knowledge and skills, you can instantly trade Forex for a minimum of 500 dollars in a mini-Forex account. The Forex trading system is very simple.
Basically, Forex is the exchange of currencies of the world. You should realize that all the currency of the world is involved in the Forex market. It may be confusing to choose which one to trade but all you need is to know the major currencies that are frequently traded. Here are the major currencies that you can choose from to trade:

â€¢ US Dollar (USD)
â€¢ Japanese Yen (JPY)
â€¢ British Pound (GBP)
â€¢ Swiss Franc (CHF)
â€¢ European Union Euro (EUR)
â€¢ Australian Dollar (AUD)
â€¢ New Zealand Dollar (NZD)
â€¢ Canadian Dollar (CAD)

These are the major currencies that you should consider trading. With these trades, you can be sure that you can maximize your money making potential.

The basic thing that you need to know when trading in the Forex market is that you should buy low and sell high. And, since you will be trading with different countries currency, the economy and the government stability of a particular country can literally affect the value of the particular currency.

The next thing you need to know is that Forex trades are done by trading currency pairs. Currency pairs are the simultaneous buying one currency and selling the currency of another. So, basically, Forex is in fact trading.

Aside from knowing how to trade currencies of the world or at least the major currencies, you also have to know about the different strategies used when trading in the Forex market. You have to realize the fact that knowing how to trade in the Forex market isnâ€™t enough to get you that money. You also need to know the different strategies that are used in the Forex market.

An example of a Forex trading strategy that is used in this market is the leverage strategy. This will enable you to trade 100 times the amount of money you deposited in your Forex account. This means that you can earn a potential of 100 times more. With this kind of strategy, you can really maximize your income opportunity.

You should also consider the stop loss order strategy. This strategy minimizes the risk of losing money. The stop loss order works when you choose to stop trading at a specific price. If the currency reaches that point, you will automatically stop trading.

There are other strategies that you can use in the Forex market that you should be aware of. If you want to be successful in the Forex market, you also have to realize and accept the fact that you will lose money in the first few months when you trade in Forex. This is why it is also important to remember that you should invest what you can afford to lose in the Forex market. If you canâ€™t afford to lose the money you plan on investing in the Forex market, then it is recommended that you should never trade in this very large and very risky market.

Now that you know how to trade in the Forex market, all you need to do now is decide whether you really want to trade in this trillion dollar industry. If you do decide that you want to trade, then all you have to do is open an account with Forex brokerage companies and start using their Forex trading software to trade.

Forex Technical Analysis

2008-02-23T09:11:00.001-08:00

Forex Technical Analysis

Forex technical analysis tries to predict price movements of currency by examining the market variables and mathematical data. This includes market participants (on the national and corporate levels), price histories, fluctuations and other trends. The forex technical analysis makes the assumption that economic trends are not randomized. Therefore, the mathematical formulas used to develop a technical analysis make the assumption that a price will move in any of three linear directions: up, down or sideways.

When a technical analysis shows that a price is trending upwards, there is an increase in the currency value and then an increase in the amount of buyers. When a price trends downwards there is the opposite impact: currency value decreases and there are more sellers. A sideways trend shows that there is little movement in the value—but that does not mean that there are no buyers or sellers of a particular currency. This is because, much like the stock market, trader perceptions create buy/sell patterns. Therefore, it is important to examine the current currency market trends, as well as the trader mentalities.

A forex technical analysis uses charting tools to graphically depict trends based on current and historical information. The technical analysis may involve, but is not dependent on, fundamental analysis characteristics, such as governance and employment of the currency’s originating nation. The main benefit of technical analysis is that it is similar to your traditional stock market analysis---it shows value patterns, trends, rises, falls, and so on. In fact, many of the charting tools used in a technical analysis, such as the candles stick, is mimicry of tools used in the stock market. So while currency trading is a relatively new market for your average trader, the mathematics and chart processes are familiar.

Forex Basics

2008-02-23T09:10:00.001-08:00

Forex Basics

Forex allows for foreign products, services and investments to occur on a multi-national level. This means that corporations, governments, and individuals can purchase currency for one nation using currency from another. For example, going on vacation in Mexico and trading dollars for pesos is a small over the counter foreign currency exchange at a bank or other instutituion. This is the foundation of the forex market -- to allow multinational trade of monetary units. Because each nation essentially has a different amount attached to its monetary unit, and this value changes again when compared to another nation’s monetary unit, value can be gained or lost depending on the forex market.

The forex market is a vast global network of multiple players, both on individual and corporate levels. However, there is not a central organization (like the NY Stock Exchange). Instead, there are multiple organizations, many of which are located in New York, Tokyo and London. These institutions handle the largest transactions and function like a currency exchange window at a local bank. A person gives money in one monetary unit and removes money in another monetary unit. The value of the money indicates the value of the trade, similar to trading stocks and bonds. The forex market trades trillions of dollars almost daily. It surpasses the stock market of any single nations, and may even surpass the value of all stock markets combined. This is because the trades are simplified. They are simplified because there is no insider trade information, unlike the stock market. No company can single-handedly destroy or enhance the value of the dollar or yen or British pound in the forex market. Instead these values are dictated by the foreign currency trade and that is predicted by the forex fundamental analysis, which uses national economy indicators.

Forex Fundamental Analysis

2008-02-23T09:09:00.001-08:00

Forex Fundamental Analysis

For the basics, a forex fundamental analysis is the trends, information, status, and indicators of a nation’s economic health. This is generally based on absolute purchasing power parity and relative purchasing power parity. The forex fundamental analysis examines the gross domestic product (GDP), which determines the growth or recession rate of a national economy. This economic indicator is also related to personal income, consumption, and expenditure. Consumer spending includes multiple dimensions such as retail sales, automotive sales, consumer price and consumer confidence indices and so forth. The amount of money that a nation spends is related to the ability of that nation to trade goods at home and abroad. Another economic indicator is the trade balance, which is the difference between imports and exports of a nation within a timeframe. The forex fundamental analysis must also take into account the industrial sectors of a particular nation. This is who is manufacturing what products for sale to which nation. The industrial production indicator is related to durable goods orders, business inventories, and supply management. The forex fundamental analysis uses construction data as another economic indicator. This is residential unit construction, purchases, and can include mortgage rated indices. These construction factors indicate a healthy economy when homes are being purchased, which increases after a recession or depression has occurred. Thus, construction indicates a strengthening economy. There are also inflation indicators, such as the producer price index and consumer price index, which are generally used for economic analysis.

These components of the forex fundamental analysis are economic indicators which can be mathematically traced, charted, and therefore predicted. The X-factor that cannot be easily quantified and categorized but has a significant ability to control the value of foreign exchange currency markets and global currency trading is the political factors. The ability of a nation to navigate in the global political environment has direct influence on the value of a monetary unit in that nation. Furthermore, political decisions, such as changing interest rates have a direct impact on the forex fundamental analysis. Interest rates of a particular nation can control the value of the monetary unit when interest rates alter in a single nation, but do not alter in other nations that are involved in the global currency trade. So, if the U.S. raises interest rates and the UK also raises interest rates, there is little change in the forex fundamental analysis. However, if the U.S. interest rate increases, but the UK does not change their interest rate, then the dollar is stronger against the pound.

Enter Or Exit The Foreign Exchange Market

2008-02-23T09:08:00.001-08:00

Enter Or Exit The Foreign Exchange Market

The foreign exchange market is constant, volatile, and inconsistent compared to other markets. Trading in forex has increased risk when the trader uses too much leverage. Therefore, the only time you should enter a foreign exchange market is when you have done adequate research and funds are available to trade. Research regarding the technical and fundamental analysis that occur will help you decide on the correct time to enter the market. The time of entry is important to minimize risk, and that is the main reason why research is so important. A trade should be timed correctly based on the technical analysis of the current market situations. Furthermore, entering the foreign exchange market can occur at any time, as can exiting.

Before you enter the market, you will want to make sure that you have the money to lose, and not money that is necessary for survival. That is not to say that you will lose money, but there is risk and it benefits new entrants in the foreign exchange market to be prepared to lose money. Also, be logical and level-headed. Many a millionaire has lost a fortune simply from the exhilaration of trading and making the ‘big score.’ So, take some mental preparation time before you enter the foreign exchange market.

Commit to doing research prior to entering the foreign exchange market by learning the trends of the money market and understanding how the foreign exchange signals work. Set a specific time frame for your first trading experience. This way, you will be mentally prepared to leave the market. To set a specific time frame, spend time understanding the commitments of your time it takes to enter and exit the market. Can you commit to intra-day trading, which requires hourly examination of price to value changes? Perhaps you prefer a more long term approach over days or weeks. In either case, the foreign exchange market signals are based on time sensitive data — in hourly, daily, weekly, monthly, and annual technical analysis. Use these technical analyses to time your entry and exit in the foreign exchange market by recognizing market expectations. The most important advice for entering or exiting the foreign exchange market is: if you are unsure or hesitating, then observe prior to making a decision.

Forex Signals Study

2008-02-23T08:26:00.000-08:00

What is a buy action?
A buy action is a signal to buy a currency pair. You will usually receive three numbers with this action. They are as follows: @ = Entry Level | TARGET = take a profit | STOP = stop loss. This action usually occurs when the market is bullish (moving up).

What is a sell action?
A sell action is a signal to sell a currency pair. You will usually receive three numbers with this action. They are as follows: @ = Entry Level | TARGET = take a profit | STOP = stop loss. This action usually occurs when the market is bearish (moving down).

What is a standby action?
A standby action is a signal to hold and not take any action at this time for a selected currency pair. This action usually occurs when market is not in position to execute a successful trade (statutory holiday, market is not moving, etc.).

What is an entry level?
An entry level is a currency value where the trader (you) should enter the market.

What is a take profit?
A take a profit is a currency value where the trader (you) should exit the market with a profit.

What is a stop loss?
A stop loss is a currency value where the trader (you) should exit the market with a loss. It is advised to enter stop loss at all times to prevent significant losses.

What is a close level?
A close level is a currency value where the trader (you) should exit the previous trade.

What is a signal?
A signal consists of an email and SMS (Short Message System) message sent to you via our signal system. The signal contains information chosen by you through our member's area.
What kind of action signal will I receive?
There are three actions that can be included in a signal email. A buy action, a sell action or a standby action.

How do I change (modify) my signals?
Upon purchasing our Standard or Pro package you will be able to edit what signals you will receive by entering your Member's Area and modifying the Days and Currency Pairs you wish to receive in your signals. Simply add or remove the signals you wish to receive.

Is spread included in signals?
No. Each trading company (platform provider) offers different spreads for different currency pairs. So it is almost impossible to incorporate spreads into our signals.

How many currencies can I have in one signal?
You can have all of the six major currencies in each signal. Please visit your Members Area to modify which currencies you'd like to trade and when you would like to receive them.(applies for Standard and Pro packages only)

How often will I receive my signals?
At this time you will receive one forex signal for each selected day.

What time are signals sent?
The signals are sent depending on market conditions.

Which currencies can I receive signals for?
EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD

How should I input my signal into my trading platform?
Most of the signals are meant to be executed within an hour of when the signal was sent. After receiving the signal please enter it as a limit order (future order). In case the market has already reached the entry level please check if it would be profitable for you to execute the trade (do not forget the spread offered by your platform provider).

Do you hold open positions over the weekend?
No. Our last closing signal is sent on Friday at approximately 19:00[GMT].

Forex fx trading online platform

2008-02-23T08:16:00.000-08:00

Online fx trading If you are seeking to educate yourself about forex trading, most probably your main objective is to gain trading skills so that you are able to trade independently and to be able to create personal consistent wealth through forex trading. Most forex traders are independent traders or individuals who are trading from the comfort of their own homes and not institutional traders who are backed with large quantities of capital by commercial organisations or sponsored by large investing funds.

The distinction between private forex education and academic education. If you are an individual private forex trader, then what you need is a practical forex trading education that will encompass the practical aspects of trading and how to make money from your trades rather than an all comprehensive education involving the historical background of forex, the intricacies of price movements or the more mundane academic statistical studies of finance and currencies. So if you are someone entering into the forex market with the intention to make money from trading forex, then look for someone or a mentor or a trading course that can allow you to learn how to trade profitably.

As a wealth creator, this is what you should look out for in planning your own forex trading education or learning plan.

"Trader, Know Thyself" It is important for you to research your own trading profile. By this, I suggest you should consider whether you wish to be a day trader, who will be trading several times a day and whether you are able to spend time on the trading terminal, watching prices or are you better placed as a swing trader who makes a trade within days or a long term position trader who cna hold a trade for several weeks. Each type of trader trades on a different time frame, and each method of trading is different. So you will need to zero down on the type of trading you wish to learn.

Risk Profile The second consideration is your personal risk profile. Are you an aggressive trader or a conservative trader? This is important form the aspect of forex education because you will not be able to fit into day trading forex if you are a conservative trader who is not looking for multiple trades a day. On the contrary, the aggressive trader will like to be proficient in day trading and learning how to trade as a forex day trader will be suitable for him. By knowing your own risk profile, you will be able to start in the correct direction finding a mentor or a trading course that is suitable for your own needs.

Trading Platform What has a forex trading platform to do with your forex education? Plenty! For one, the forex trading platform must be suitable to your trading methodology. This is because you will need the trading indicators in your charting interface of your trading platform. In learning to trade, you will need a suitable trading platform that contains the trading indicators you need to implement in the trading methodology. At the same time, you will need to practise your trading strategy and to work with a demo account.

Gaining Experience in Online Trading Here is one secret that can shorten your learning curve as a forex trader. Get yourself a trade simulator and practise your trading methodology repeatedly till you are consistently profitable before you trade. Practice makes perfect, and you can pick up years of experience as a forex trader within weeks on a trade simulator with a large database of price movements.

Mini Forex Trading Account For the beginner trader, the use of a mini forex trading account will greatly reduce his risk as he puts into practise whatever he has learnt in forex trading. A mini forex trading account possesses more leverage and a trader can start to trade with very low capital, and therefore reduced risk. In that way, he can start to maintain discipline in trading without worrying too much on losing a big sum of money.

On the basis of these guidelines, it is possible for a person to craft or design an initial plan to acquire personal forex training and education so that he can become a professional or private forex trader.

forex fx trading online fx trading fx trading platform global fx trading

Advantages Over Stock Trading and Futures Trading

2008-02-20T22:45:00.000-08:00

Until recently, day traders have focused their efforts predominantly in the stock and futures market, despite the size and global reach of the foreign currency market (also know as the forex market). The reason for this has been mainly the restrictive nature of currency trading services offered by banks. Currency Trading USA offers both online currency trading and traditional phone currency trading services to the everyday investor. Only $2,500 are required to open a currency trading account. The list below explains some of the advantages of currency trading over stock and futures trading.

24-hour currency trading

Foreign exchange market trading occurs over a 24 hour period picking up in Asia around 23:00 GMT (6:00 PM EST) Sunday evening and coming to an end in the United States on Friday around 22:00 GMT (5:00 PM EST). So, whether it's 6 PM or 6 AM, somewhere in the world there are buyers and sellers actively trading foreign currencies. Traders involved in currency trading can always respond to breaking news immediately.

Although after-hours trading in stocks can be achieved via ECNs (electronic communications networks) and in futures via electronic systems like Globex, the prices can be uncompetitive since the liquidity is often low. For foreign currency trading this is not the case. The currency trader can get tight spreads around the clock and can thus pick and choose whatever trading hours are the most convenient for him.

No Commissions

Online discount brokers typically charge anywhere from $5 to $30 a stock trade. Full-service brokers usually charge $100 or more for each stock transaction. Futures trades can be from $10 to $30 a round turn. Forex trading with Currency Trading USA is commission free. Thus, investors involved in foreign currency trading could limit the cost associated with trading. Currency Trading USA is compensated through the Bid/Ask spread..

Lower operation fees

To be a serious stock day trader, a person needs a direct access trading system. These systems can cost from about $250 to $400 or more a month. Currency trading can be done through a sophisticated online system for free. Our Currency Trading USA trading platform is top-of-the-line and has the same (or more) features that quality stock trading systems provide. The main difference is that our currency trading system is free.

Tighter Bid/Ask Spreads

If we compare our currency trading platform's typical spread of 3 pips on a the EUR/USD currency pair to a stock transaction, we could see how online currency trading could offer tighter spreads than stocks. A 3 pip spread (0.0003) on 1 lot (100,000 per lot) is $30. If a stock trader trades a stock with an average price of $25 a share, he would have to trade 4,000 shares to reach the 100,000 value of one currency lot. Assuming the stock is very liquid, the spread would vary between 0.01 to 0.02 or more per share throughout the day. This is equivalent to $40 to $80 per transaction, much higher than for our currency trading example.

Low Margin Requirements

Our 100:1 margin (1%) requirement for foreign currency trading allows a trader to control $100,000 worth of currency for only $1,000. This is much higher than the requirement for stocks and futures. The typical requirement for stock trading is 2:1 and 15:1 for futures trading (Increasing leverage increases risk).

The substantial leverage available in the foreign currency market is essential because the average daily move of a major currency is less than 1%. While certainly not for everyone, the substantial leverage available from online currency trading may be useful to traders that employ a disciplined trading style with strict money management principles (High Leverage and low margin can magnify or lead to both substantial profits and losses).

Superior liquidity in the currency markets

The foreign currency trading market has a daily trading volume that is larger than that of all the world stock markets put together. This means that there are always currency broker/dealers willing to buy or sell currencies in the forex markets. Consequently, price stability is assured, especially for the major the major currencies. Currency traders can almost always open or close a position at a fair market price; a key advantage of currency trading.

Because the stock market and other exchange-traded markets only have a fraction of the volume of the currency market, these investors run a greater risk of having wide dealing spreads or large price fluctuations while trading.

No Limit up / limit down in the currency spot market

Under certain price conditions, the number and types of transactions that a futures trader can make are limited. The futures market restricts a trader from initiating new positions and only liquidating existing ones, if the price of a specific currency rises or falls beyond a specific predetermined daily level. This is an artificial way to control daily price volatility. This mechanism is meant to control daily price volatility, but since the futures currency market follows the spot currency market anyway, the next day the futures price can gap up or gap down to readjust to the spot price. In the foreign currency spot market these artificial restrictions are nonexistent, so the trader can trade freely without limitations, applying his trading strategy with stop losses to protect himself from unexpected price fluctuations caused by high volatility.

No short-selling restrictions in currency trading

There are no restrictions to sell currencies short, unlike stocks which have to be sold short on an Uptick rule. This means that with currency trading you can make money just as easily in rising and falling markets. This advantages is especially attractive to currency day traders who want might want to sell a currency short quickly, without any possibility of the trade being delayed by artificial means.

All of these advantages make currency trading superior to stock and futures trading in may ways.