Author : Dave Logen

Forex is where currency trading takes place It is where banks and other official institutions facilitate the buying and selling of foreign currencies Forex transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another The forex market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system until 1971 The forex market is currently one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions

Ask (Offer) — the price of the offer, the price you buy for


Bear - If someone has a negative view of a particular currency and believes that its price will decrease, they are said to be 'bearish' about that currency


Bid (Demand) —the price of the demand, the price you sell for


Bull - If someone has a positive view of a particular currency and believes that its price will increase, they are said to be 'bullish' about that currency


ECB (The European Central Bank) — the main regulatory body of the European Union financial system


Fed (The Federal Reserve) — the main regulatory body of the United States of


America financial system, a division of which, the FOMC (Federal Open Market Committee), regulates, among other things, federal interest rates


Fundamental Analysis — a Forex trading analysis based only on news, economic indicators and global events


GDP (Gross Domestic Product) — this is a measure of the national income and output for a given country's economy It is one of the most important online forex indicators


Limit - A limit is placed on a trade so as to exit it after a speculator has gained the expected number of pips


Long - Trading a currency under the assumption that its price will rise - a 'buy' trade


Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it


Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100)


Momentum — the measure of the currency's ability to move in any given direction


Moving Average (MA) — one of the most basic technical indicators It shows the average rate calculated over a series of time periods Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc are just the ways of weighing the rates and the periods


Open Position (Trade) — position on buying (long) or selling (short) for a currency pair


Order — order for a broker to buy or sell the currency with a certain rate


Pip - Means Price Interest Point and refers to the smallest digit in any pricing, so if GBPUSD rose from 1 9443 to 1 9450, it rose 7 pips


Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices


Principal Value — the initial amount of money of the invested


Profit (Gain) — positive amount of money gained for closing the position


Forex analysis based only on news, economic indicators and global events


Etoro com - Forex Exchange

Dave Logen is a forex trader and strategy analyst. Other than writing, he designs software for market analysis of forex trading. For more information regarding forex and forex news, you may visit http://www.etoro.com

Author : Daniel Su

When you look at the most successful forex traders, most depend upon an effective forex trading system that has proven time and time again to be profitable for them Every forex trader will need a good forex trading system to help them make consistent profits from the forex market But how do you select the best forex system that suits you, especially the internet is full of scams and false claims? Well, here are some forex tips that can help you on your hunt for good forex systems:

1 Look Out For Logic Of The Forex Trading System

There will always be a description of what the trading system will be like, how does it trade and the functions of it I know this may need some experience before you can even comment on the logic that the trading system has

Let me give you an example, if the vendor claimed that the forex strategy can make you 300% ROI within one month, then you really have to verify whether the trading system uses a scalping strategy, swing method or what

If the trading system is based on a set of forex indicators, at least know what kind of indicators are they using I said all those above is because you will need confidence to follow a system with discipline, and if you can't, you have no system at all

2 Search For Forex Reviews

Before you decide to purchase any forex trading system, you MUST look for reviews in either forex forums, blogs or other websites that allow people to comment on the products that they bought This is important because you will want to know how other people feel about the trading system and whether is it working or just another scam

Besides that, if you can't find the answers that you are looking for, you can post comments or questions on those sites to clarify your doubts on the trading system that you are interested in You should be in total understanding of the product and have confidence in it before you actually put it in your shopping cart

3 Know The Vendors Well

Be more enthusiastic and find out more about the vendor Find out who has developed that forex trading system and his track record If he has not made any real money from the system that he created, then why should you trust him and risk your money?

This is the time to ask them more questions which you still have it in mind You should see how keen and responsive are they to your questions and what kind of support do they provide If you ask some questions that normal vendors will answer, but they don't, then something must be hiding from them

Last but not the least, you must make sure that the forex trading system that you are buying should include a money back guarantee Most of the products out there in the forex market have a 56 days guarantee, this is to protect you so that if you are not satisfied with the product, you can get all your money back minus the exchange rate

So the point of the forex training that I have given to you is to help you choose the best and the most comfortable trading system for yourself Once you have chosen it and if it is a good system, you should stick with it in times of bad periods because no system is holy grail and it's the long term results that count Good luck and find a trading system that suits you well If you came across one, you can let me know and I'll see if I can give you some feedbacks on it

To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches.
The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.

Author : Daniel Su

Forex trading signals and learning how to interpret them are the key to the success of any trader that is making money in the forex market Learning the ins and outs of trading trends takes a lot of time, but you don't have to be an expert at it to be successful

A more accomplished forex trader will spot the trend just as it begins and will see the slowing down and get out just as it is ready to decline You don't have to be that good, you can get in once the trend is under way and get out just after it starts to decline and still make money You just have to be able to recognize which way it is going

Some of the common forex indicators used in may forex trend systems that successful currency traders will use are the MACD and moving averages When effectively used as crossover indicators, you will have the ability to recognize significant trends that will of course lead to profits

When analyzing a short term trend against a long term trend, i e an EMA (5) crossing an EMA (20), you will see a positive trend developing that you should take advantage of The same is true of a MACD crossover

Another powerful forex indicator designed for trading trends is the TRIX or Triple Exponential Moving Average oscillator The indicator will keep you in trends that are shorter or equal to the window period While observing a recent day of trading, we noticed a TRIX (15,9) moving upwards on the 4 hour chart of the GPB/USD pairing The result of this trend was actually a 100 point rise by the end of the day If you had the experience to spot this trend, you would have made a killing!

While these are but two of the forex trend systems that you can use that you can use to generate good forex trading signals, there are many more models that are very successful Examples of these are indicators like the Supertrend and the ADX

The Supertrend is extremely effective as its' sole design was to pinpoint trends in the currency market You can only imagine by it's name how successful this has been If you are using the ADX, it may be a little more difficult to read the trends, but it is just as useful when you know what you are doing and define ranges of profitability For instance, when there are crosses in the 17 to 23 levels, I know it is a go Movement in the DI+ and the DI- will let you know which side of the market to get on

While you will hear people preach the positives of each of these forex trading signals on their own, becoming familiar with all of them is a good idea Look at it as arming yourself with more weapons to go into battle with Make sure a trend spotting forex strategy is part of your arsenal The more forex indicators that you see a positive trend in, the more likely you are in spotting a legitimate trend that you can take advantage of

To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches.
The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.

Author : Daniel Su

If you have been trading the currency market for a while, you'll know that there is money to be made trading forex news However, trading the news in forex does involve some risks and there are 5 major traps you must avoid before you can to trade the forex news successfully We'll discuss these 5 traps and provide some forex tips and forex trading strategies to use to counter these traps

Trap #1: Strong Market Reaction

Economic news releases and reports are forex indicators for future long-term movements for a currency pair But for short-term trading, the actual results and the forecasted expectations may create big move opportunities

Thus, when actual results came out the same as what the market expected, then there is high possibility that the market will not have a strong reaction It is the big gap difference between the actual release and the market expectations that causes the market to have a breakout or big movement

Trap #2: Generally Short-Lived

Most of the time, breakout opportunities from the news release are not a long term trend as the movement may only last for few minutes to few hours But still, it has to depend on the significance of the economic news release and the difference between the actual results and the forecasted expectations

Most traders are either using forex scalping or day trading when they trade on news releases One of the forex tips is to try not to trade during the release as the trade can turn against you in a short moment even after you caught a big initial move

Trap #3: Quiet Market before a Big Movement

The market may often poise for a huge movement when it is very quiet before some economic announcements or news releases This is because the market is waiting for those before deciding on which direction it is going

Traders are waiting for a right opportunity to jump into the market after the news reports are being released Thus, you should not react to any forex trading signals 2 to 3 hours before the news are released as the signals may be false and misleading

Trap #4: High Spread during News Releases

During news releases, a trading broker may guarantee that your trade will be executed, but none of them will guarantee a normal spread for you Forex brokers will widen the spread due to the lack of trading volume during the release EUR/USD is one of the currency pairs with tight spread, but I have seen it turning it into a 10 pips spread from a normally 2 pips during a news release

Trap #5: High slippage

You might experience slippage when there is a big move during news releases It means that your trade order will get filled at a different price instead of the price that you wanted For example, you might have set a limit order at 1 3000

But when the news release, the price shoot up 50 pips to 1 3050 So a slippage may occur and you will get your order filled at maybe 1 3020 instead of 1 3000 This is quite risky as the market may go against your trading plan

The above forex trading guide will be very useful if you are using a forex day trading strategy to trade news But in any case, I will not recommend news trading as it is very risky with the above considerations

To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches.
The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.

Author : Daniel Su

Many people are trying to make a living from home in the currency trading market It is an extremely profitable opportunity, but it can also be extremely stressful This is especially so if you want to become a professional forex trader As a professional forex trader, here are some my personal advice to all forex traders which can help to lower your stress level and you keep your sanity

1 Check the economic calendar before you start your trading session

Imagine spending half of your day to find some forex trading signals that are going to turn into nice profit You jump in and the next thing you know your investment is going into the tank for no apparent reason Then you found out that there were some announcements that you were not aware of going against your trades Making this forex strategy a regular part of your routine will help you avoid this pratfall A website that you can refer to every day is ForexFactory

2 Get away from your computer

A lot of home traders fall into the trap of all but becoming a hermit When you are not trading, get an activity by hanging out with your buddies or do something more relaxing You just know that you need get out of this environment and get your head cleared before deciding on your forex trading strategies

3 Surf the internet and going to forums

If you are trading at home, you more than likely don't have anyone to bounce idea's off of or to even discuss what is going on Joining a public forum on currency trading will address both of those issues When the market slows down, pop in and see what everyone is talking about and you will find it to be a pleasant distraction You may find some interesting forex indicators in the forum that could fascinate you for a while, or you can even search for some forex reviews for the product people are selling

4 Trading is not only depending on brain, get healthy!

Although it may sound funny to you, but it is a forex trading tip that has merit all by itself You have to keep both your mind and body healthy in order to concentrate The occupation itself is very sedentary You are sitting at a desk and staring at a computer all day, so give yourself a good sweat every day and you will be much sharper at your trading

5 Make a great trade, treat yourself to a break

You will soon realize that you are always under the gun when you are trading and you are going to have to ease up at times to keep that intensity level up If you have a successful trade or possibly avoided what could have been a major loss, give yourself a quick 15 minute break so you can recharge and keep that focus Nobody can maintain that stressful level all day, never try to be superman

6 Diversify your money

Diversification is also one of the forex trading techniques that you may want to implement You may want buy some regular stocks or get some investment properties and put your money to work for you That is passive income

The above forex trading tips may help you to distress, but remember that it still depends on whether you have the discipline to follow your very own forex trading system If you can, you will have the confidence to trade without much worries

To learn how to get rich trading forex without stress, click here to download my FREE 56-page ebook Forex Trading To Riches.
The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.

Author : Daniel Su

There are much more losers than winners in currency trading and do you want to know how to be at the winners' side? A wise guy learns from his own mistakes but a smarter guy will learn from the mistakes that other people have made So I have done a thorough research on the common forex trading mistakes that most people make and now you can learn from it as a personal development to be a better trader

Mistake #1 - Over leveraging It is true that leveraging is one of the advantages of a forex strategy But at the same time, if used incorrectly, it will be a disadvantage because of over leveraging Many people does not consider how much risk they will be taking when they decide to trade big using high leverage on small trading capital

Although you have the potential to win more on the trades but the risk is much more as one highly leverage trade that loses can wipe out a small trading account One should only risk at the most 5% of his trading capital for per trade

Mistake #2 - Over trading Often, over trading occurs when traders use forex scalping method They would try to find opportunities to trade even though there is no quality opportunity for them In the end, there are more losses than the gains

It does not only happen to forex scalping, it involves other forex trading techniques as well So to avoid this mistake that many people make, you should follow the rules of your forex trading system and trade only where necessary

Mistake #3 - No Patience Currency trading is an activity that will really test your patience and if you don't train yourself to be patient, then surviving in this market is very tough Long time ago, I thought I can maximize profits by rushing into a trade when the forex trading signals have not shown

But most of the trades ended in losses because I was not patient enough to wait the forex indicators to confirm the trading signals So if you can follow the rules of a good trading system, then definitely you have good patience

Mistake #4 - Chasing after the price If you have noticed, this mistake occurs when you have no patience Traders feel uneasy when they missed an opportunity to trade and then chase after the price The price rebounded back and triggered their stop loss A forex tip for you is, never trade too far from a low value Moving average (e g 6 EMA), trading opportunities will always come

Mistake #5 - Too greedy Once you have a trading plan, stick to it and don't modify it because of your greediness If you have a risk to reward ratio for profit taking, then be it Don't aim for higher profits when your hunch tells you so Even breakeven is considered as winning in currency trading As long as you do not lose big and profits are more than losses, you are considered successful if you maintain this consistency

Mistake #6 - Forex Scalping means fast profits If you let me choose a forex day trading strategy and forex scalping, I will definitely drop the latter I have never seen many traders got high success using that forex strategy because valid support and resistance does not work in such a small time frame

There is no free lunch in trading, so you do not expect fast and huge profits in a short period of time Any huge gains will definitely take some time to build even if you have a marvelous forex trading system

Out of the many business opportunities out there, forex trading can be a very lucrative home business for those who want to be their own boss However, to succeed, you must have the discipline to follow a good trading system, control your emotions, learn from your mistakes and never to repeat them again

To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches.
The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.

Author : Daniel Su

The currency market is now the largest and most liquid market of all the trading instruments With almost more than a trillion dollars exchanging hands daily, you would not want to miss out this great opportunity to profit from the market

Although it is not very difficult to make money from this currency market, but it has its risk and lessons to be learnt The technology is so advanced that trading does not have to be manual anymore, do you know that? It can all be depended using automated forex trading systems

If you have a forex strategy that works well, you should be trading manually and making nice profits from it But a lot of times you won't be able to spot all the trading opportunities in the market, and thus unable to maximize your profits This is one of the reasons that attracted programmers to come out with all sorts of automated forex trading systems in the market

So how do you know which is the best suited for you? Then you will have to look for some forex system reviews online before you get one

But getting back to the main topic, here are some of the main advantages you can have over other traders using automated forex trading software:

#1 - You do not need to trade manually All you need to do is to program your proven forex trading strategies and forex indicators into the trading software, so that it can auto-trade like what you normally do In this case, you will not be bounded to the computer and stare at it for almost the whole day You can plan for other business opportunies or activities after you have set different trading strategies for different occasions or time frame

Forex scalping can never be easier as the software trades without the human part of stress This way, the software can trade different time frame using scalping, short term and long term trading, giving you the potential of maximizing profits

#2 - Your trading activity never stops While forex traders are only able to trade the market when they are awake, you will be making profits even when you are sleeping! This is something you wouldn't want to miss out because the automated software will be trading 24 hours a day, five days a week for you

One shortcoming of some forex trading software is that they can't filter out activities from the economic calendar and the forex trading signals might get whipsaws But if you find a good forex software, it should be able to track economic activities and halt trading when news are releasing

#3 - You are not restricted to only some currency pairs If you have been doing currency trading for some time, you should know that it is tiring and stressful to monitor a few currency pairs It is difficult to concentrate with just a pair of eyes, but with the automated trading software, it can do wonders and trade any currency pair when there is a forex trading signal

The 3 benefits above are just part of the forex trading tips if you have not come across an automated trading software Nonetheless, you should search for forex reviews on the automated software that you are going to purchase as to make sure it is reliable and profitable

To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches.
The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.

Author : Daniel Su

The currency trading market offers many great opportunities to make money However, before you jump into the financial forex market, you'll need to proceed with caution and not to rush into it Here are some of the mistakes or pitfalls you must avoid in order to protect your life savings:

1 Over Leverage

This is a one of the most common mistakes committed by forex traders, especially those who are relatively new to trade the forex financial market If you can only afford $5000, do not trade $10,000 Trade what you can afford to lose Do not put all your entire savings at risk Just like any business, losses will happen, but you need to control your risks and protect your capital

2 Over Confidence

Don't ever forget that the forex market is smarter than you So don't ever think you can look into a crystal ball and see where it's going to happen Otherwise, your capital will be wiped out pretty quickly and your confidence level adversely affected You will need to do your homework, study the market trends to understand what the market is doing Some good forex indicators will tell you what the forex financial market is up to Get a good simple forex trading system that works and follow it closely Do not ever try to outsmart the market by acting before your forex trading signals tells you to

3 Over Attach To The Trade

If you have entered a forex trade and is losing you money, get out of it This is another common mistake of people trading as they become attached to the trade or think it will eventually turn around If it's losing, it's a loser The best way to do this is to set a stop loss for every trade you enter If you're wrong in the trade and got taken out by the stop loss, just move on and focus on the next currency trade

4 Over Bid

Another major mistake some forex traders make is to chase the price They entered the market after the currency pair has already made large moves and is prone to price correction There is no place in the forex trading market for emotional traders If you allow your emotions to dictate your trading, you'll end up with an empty account Getting emotional is something you want to avoid at all costs If the price is unfavorable, do not trade but wait for the next opportunity Remember, good traders control risk, inexperienced traders chase gains

5 Over To You, Coach

The most successful forex traders usually find themselves a good coach or mentor This can be a friend who has been trading forex for quite some time or a forex trader who is willing to share his knowledge and experience Learn as much as you can from him Study his forex trading guide and learn how he trade the forex Do demo trading on the forex trading strategies taught to test it out And don't hesitate to ask him questions

Forex trading is a long term business and you need to spend time and effort to master it Successful traders are those who are patient with the market and themselves Remember, only serious traders can make serious money Are you serious enough to trade profitably?

If you're serious to learn how to trade forex successfully, download my FREE 56-page 'Forex Trading To Riches' ebook at http://www.forextradingpower.com. The author, Daniel S, is the owner of http://www.ForexTradingPower.com where you can get free premium forex trading tips and resources.