Top Secrets On Successful Forex Traiding

When you begin to trade in the Forex market, you will see that it has many benefits over some of the other financial markets. Some of these benefits are: superior liquidity, better execution, 24 hr. market and others. Does this mean that it is easy as pie to make money on the Forex market? Absolutely not!

Since we now know that it is not as easy as it seems to make money on the Forex market, why do some traders succeed while others fail? That is not an easy question to answer. Something does set apart the profitable traders. They do not follow the crowd. These traders think independently from the crowd.

How long does it take to see consistent profitable results in the Forex market? This, too, is not an easy question to answer. It varies from person to person. One thing is for sure - this cannot be done in a short time frame.

It is a process that could take years to see desired profits. Here are a few things to consider if you decide to trade in the Forex market that may hasten the process of realizing a profit: have a trading system in place, education, use money management, be aware of psychological issues and have the proper discipline to follow your trading system as well as your trading plan.

Benefits of Online Forex Trading

Thanks to the Internet being available to almost everyone, the Forex market may be accessed with ease. Computers are now able to make complex charts that are very beneficial when you go to trade in the Forex market.

Forex traders can do business 24 hours a day no matter what their geographical location may be. Daily transactions in the Forex market have increased to two trillion USD.

It is quite easy to open a forex trading account. There are even free practice accounts that can be set up which allow you to test your skills before you make any transactions with real money.

Traders can trade with different currencies in different markets at the same time and not have a problem doing it. Online forex trading touts a lot of liquidity and flexibility. The trader can trade and access quotes in real time when he deals with online forex transactions.

A very important benefit is that forex trading has virtually eliminated the bears and bulls of the trade. This is the only trade market that does not have these elements.

There are no commissions, exchange fees or any other hidden costs involved with online forex trading. The trade is done very quickly and there is no delay of any kind. It literally takes just seconds to execute a trade or fill or confirm the same. Small traders have more leverage in the Forex market.

There are indeed many benefits to online forex trading, but you also have to look at the other side of the coin. Online forex trading is risky. You should not invest any more money than you are willing to lose.

Remember, it takes education, patience and practice to become good at forex trading.

Visit for best forex news

http://www.usaforexsignal.com/forex-signals.php

Forex Trading: Basics of Fundamental & Technical Analysis

The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. Forex prices can change at any moment in response to real-time events, such as political unrest or the rate of inflation. Currency market players typically use "Forex analysis" as a means of predicting currency price movements. Forex analysis is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basics of fundamental and technical analysis.

A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of U.S. Government economic indicators. Some of these indicators are the Consumer Confidence Index (CCI), the Consumer Price Index (CPI), the Employment Situation Report, the Gross Domestic Product (GDP), the Composite Index of Leading Indicators, the Advance Report on Durable Goods, Housing Starts, and Initial Jobless Claims.

All of these Federal economic indicators have a marked effect on the Forex trading market. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve, the U.S. Bureau of Labor Statistics, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.

Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, common economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.

A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones. The technical analyst typically uses charts as a tool in predicting currency price movements.

Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store."

For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.

Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.

Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. The important point to remember here is that no one strategy or combination of strategies is 100% certain.

Best forex website

http://www.usaforexsignal.com/forex-signals.php

Forex Charts & Lose With Predictions

Treat forex trading as an odds game.

First let's look at why predicting is doomed to failure.

It's obvious that if you could predict prices in advance there would be no market, as we would all know the price in advance!

Everyone would make money and that is not the case in any free market.

Let's look at some dumb predictive theories.

Let's start with the king of them all - Elliot wave.

Elliot said he has an objective scientific theory and then tells people to make subjective judgements - Well that's not an objective theory as an objective theory would tell you EXACTLY what to do.

Another great one is the Fibonacci number sequence.

All those levels that magically are supposed to hold and they do sometimes, but more often than not they don't.

There are many more including the numerous e-books and currency trading systems that are sold by vendors promising you "the secrets" of forex success for a few hundred dollars.

Think about it:

If their currency trading systems were any good, they would not be selling the system, they would be to busy making money to bother you for a few dollars.

Many forex traders don't use the above theories, but they still love to predict.

Here is a typical scenario.

They see prices dip to support and buy. They hope that support will hold and lose.

Now if you want to trade and win pay attention!

If prices dip to support and you think the level is going to hold, don't buy and hope, get confirmation and trade with the odds - this means looking at price momentum.

Price momentum MUST support your view before you enter and execute your trading signals.

What you need to look for if buying into support is, for price momentum first to turn up then enter your trade - this way you have the odds in your favour.

You're not predicting and hoping, you are trading on confirmation of price.

So forget predicting and hoping, trade on confirmation of price momentum and get the odds in your favour.

Two great momentum indicators to look at are:

The Relative strength Index (RSI) and the stochastic - if you don't know what they are and how to use them, check our other articles.

DON'T PREDICT AND HOPE TRADE THE ODDS!

If you want to win, you need to trade with price momentum and get the odds in your favour. If you want to predict and hope then get ready to lose - its as simple as that.

Best Forex Trading Platform is http://www.usaforexsignal.com/forex-signals.php

5 important tips to becoming a successful forex trader

KNOW YOURSELF

Knowing yourself is vital because knowing what type of forex trader you are, is the best thin
g that could ever happen to you. Knowing what type of forex trader you are makes it easy for you to find a method that can be used that will automatically work for you. It helps you gain self – awareness and it also ensures that you are risk tolerant. This means that you must carefully analyse your financial goals before engaging in forex trading.

PLAN YOUR FOREX TRADING ACTION

Planning has always been a better structure in articulating anything, you probably heard that planning  gives direction to any business or committee. We can all greatly say planning defeats failure. So even in forex trading one is required to plan things such as, how much time you are devoting to trading, do you aim to get financial freedom or merely aim to generate a second income. These are the types of questions you should be asking yourself before you gain any clear understanding. This will assist you to become more profitable.

CHOOSE YOUR FOREX BROKER CAREFULLY

Choosing a broker is the same as choosing a bank. What does one look for when they are looking to secure their finances? One key factor would be excellent customer service since it is not a tangible service. Word of mouth from other clients would also play a crucial role and obviously comparing the packages they offer (eg) the importance of spreads, and execution time ‘how fast they can give you access in the market, and how long would it take for you to withdraw and get your funds.

FOCUS ON SINGLE CURRENCY PAIRS

Focussing on one currency pair is important because there is a lot of currencies. Studies around this showcase confusion when more than one currency pair is traded. Trading on more than one currency pair will most likely cause one to lose focus. This is because each currency pair represents its own country. Countries current affairs are due to the chaotic market and the best advice is to trade on a single currency pair. A currency pair that you are well educated on so that your focus is not intertwined on everything at once.  It is always a good idea to have all your focus and efforts on the major currency pairs that are allocated for a trader to trade because it does become complicated and difficult for one to keep up-to-date with what’s happening in each and every country. I mean we are just humans after all.

RESTRAIN YOUR EMOTIONS

One of the greatest and the most comprehended key factor, even the ‘BEST OF THE BEST’ still abide by this rule, is to restrain all emotion. Studies illustrates that when people involve emotions with regards to finances they become either money greedy or make the wrong decision. It is best recommended that your mind is clear when you are trading because it is easier to make a calculated decision rather than a decision that you will regret later.

Take notes

Most successful traders still take notes to date. It is a well recommended strategy that you should note down and analyse everything regarding every trade. This will help you to detect what is being done correctly and see what is being done wrong. This also provides you with an insight of the markets success or failure.
The best tip is that you need to believe in yourself, have faith and learn as much as you can before jumping into forex trading world.
Think you have what it takes? Sign Up for free forex training and be trained by South Africa’s youngest multi-millionaire.

Best forex website :

http://www.usaforexsignal.com/forex-signals.php

How to Choose a Forex Broker That Wont Suck You Dry

In order to successfully trade on the foreign exchange market, you'll have to find a broker. This is someone who helps you execute trades in exchange for a commission on every trade. However, there are a lot of brokers out there who want your business. That means that it can be hard to figure out which one's right for you. Here are a few things you might want to look for.

Transaction cost - Brokers in a Forex market are paid via a bid/ask spread. There ought to be no charges to trade, or hidden fees. There might still be extra charges asked by a good broker for some optional services or access to particular reports. A smaller spread is obviously better. You'll find that pip spreads vary by broker, and by currency pair. Shop around to find the most competitive rate.

Available currency pairs - Every broker should list at least the big seven currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD), but you should be sure that your broker is able to handle others. That way, if you're planning to trade in Danish krones or New Zealand dollars, you can.

Immediate order execution - The prices of currencies are constantly moving up and down. That means that any kind of delay in the execution of orders might cause losses or cut into profits. While it's possible that a delay will help, you can't rely on that. Find a broker who's able to execute your trade at the price on your screen, instantly. While occasional delays are understandable, you should find a new broker if it seems to be happening a lot.

Free tools - To help you analyze the prices of currencies, spot trends, plan exit and entry points, and much more, you'll need access to technical analysis and charting tools. Most good brokers have a basic service that offers these free of charge. For more tools, however, you may need to pay.

Minimum account balance - Small investors require brokers who don't require a large balance to open accounts. Most brokers today are willing to allow you to open a mini-account containing as little as three hundred dollars.

Margin requirement - Lower margin requirements five you more leverage. If brokers let you use a hundred to one leverage, that means you're able to trade a hundred thousand dollars in currency for only a thousand dollars. You can use this margin to acquire enormous profits, but don't do it too much, or you could lose a lot.

Excellent customer service - Many traders overlook customer service when they pick a broker. Don't do this, or you'll regret it in the long run when you need help. Any good broker will be able to respond fast to any question. They ought to have knowledgeable people available to answer your questions on the phone or via email, twenty-four hours a day.

User friendly trading platform - Some brokers will require you to download their trading program to your computer if you'd like to trade. Others allow trades to be directly made via the Internet. Pick out a few prospective brokers and sign up for a demo account. That way, you can use pretend money to trade while testing out software packages and deciding which ones you like best.
Best forex broker service provider website is

http://www.usaforexsignal.com/forex-signals.php