Archive for April, 2009

What is the Best Expert Advisor?

With the increasing popularity of Forex Trading, and the availability of the developer technologies, its really hard to say. The reality is that anyone can program an expert advisor and put it on the market for sale. There are good ones and there are not so good ones. The best expert advisor can only be determined by you.

What are your objectives and your goals? Finding an expert advisor that can help you meet your objectives and goals is the best expert advisor for you. It is a known fact that what may work for one may not necessarily work for the next.

The key to finding the correct expert advisor is to test, test, test. You want to be able to spend some time trading… Continue Reading

Tips From Veteran Forex Traders

Many people seeking alternate ways to make their money go further these days are looking into the world of Foreign Exchange Currency (Forex) trading. Those who are veterans of the trade and have found success are willing to share what they have learned with those who are just starting out. If you are a newcomer, you would be wise to learn from the “old timers:” here are a few tips.

– Start small. Once you have experienced a free demo forex account or learned the basics from a Forex broker, you’ll be anxious to get going and eager to make lots of money. However, it is more prudent to start with small lots then move to larger lots as time goes on.

Many promising newcomers to… Continue Reading

Using Forex Trading Charts to Make Sense of Global Market Trends

Forex trading charts provide a trader with information on currency price trends, indicators, deals made and other pertinent data that could help him make the right trading decisions. These charts can be found online for free or a trader can purchase software that will generate data significant to the foreign exchange market.

Some of the most popular Forex trading charts used by online brokers and traders are line charts, candlestick charts and bar charts. A line chart is comprised of a single line tracing the path from one closing price to the next one. The line shows the price movement of a pair of currency over a given period of time.

A candlestick chart, on the other hand, is more graphical in nature and more sophisticated… Continue Reading

Forex Trading – Controlling Your Emotions is Key

When trading in the Forex market, it is highly important and pivotal that you keep emotion and impetuosity out of your decisions. Acting upon a well thought out strategy that you have had time to test and perfect is the most rational and successful way to go. Making decisions upon your natural instinct just does not work with Forex trading. The risk is too high and in the long run, if not immediately, it will cost you more money.

Because the Forex market is so variable, traders often react to fluctuations emotionally. A proven way to prevent this is to have a strategy chosen beforehand, and then act on it, even though at the moment it seems better to go with a new, desperate decision. In order… Continue Reading

Forex Training – The Importance of Using the Same Timeframe in Forex Trading

There are many times when I hear about forex traders opening or closing a trade using 1-minute or 5 minute forex chart when the forex market moves against them. This is not my style of forex trading as the timeframe is too short to prove anything.

When the market moves against them, they will switch to 15 minutes chart to justify staying in the market for a little longer. After a while if the forex market continues to move against them, they will switch to the hourly chart to find some reasons to stay in the trade. They think that it might be just a small pullback and they have to be patient.

As the market continues to move against them, which may be more than… Continue Reading

Trends In Foreign Currency Trading

UPDATE: On May 22, 2008, the Congress passed H.R. 6124, the Food, Conservation, and Energy Act of 2008 (also known as “the Farm Bill”) which contains several amendments to the Commodity Exchange Act (”CEA”). In particular, Title XIII of the Farm Bill

(1) clarifies that the CFTC’s anti-fraud authority applies to certain retail off-exchange foreign currency transactions,

(2) creates a new registration category for retail foreign exchange dealers, (3) requires registration for those who solicit orders, exercise discretionary trading authority and operate pools with respect to retail off-exchange foreign currency transactions, and

(4) imposes minimum capital requirements for futures commission merchants and retail foreign exchange dealers that act as counterparties to such transactions. Parts of the legislation, particularly those confirming the Commission’s anti-fraud authority, were… Continue Reading

3 Ways to Make a Killing in Online Fx Trading

Fx trading involved the purchasing and selling of currencies in a market scenario and it has become on of the most lucrative and profitable business ventures today. This is because of the ease of entry into Fx trading, especially when it has been fully integrated into the online interface. This has helped many casual and part timers enter the market and gain the confidence they needed to start investing in a commodity and a market that is seeing a few trillion dollars in turn overs on a daily basis.

Also, because of the support system set up by financial institutions and brokers online; which can include trainings, dummy accounts and Forex systems, there is no shortage of guidance and help for the new investor to start his… Continue Reading

How To Trade Forex Around Important News Releases

There are two important concepts that you must understand if you are even thinking about trading around news releases: Price slippage or skipping, and also the typical manner in which prices fluctuate in the first hour after a news release. Price slippage is important to understand, and it is something that has probably caused many premature wrinkles on the faces of forex traders.

Within one minute after important economic data is released, these are the times where there are the highest amounts of trading activity and the biggest price moves. Knowing this, the concept of price slippage is easy to understand:

Most forex trading platforms have very fast order execution, meaning that once you click on the ‘buy’ or ’sell’ button your order will be filled… Continue Reading

E-currency Exchange Trading

If you are reading this article you are probably one of the many people who have spent countless hours searching for unique ways to make money on the internet. Very few people have gone on to succeed and most have failed miserably time and time again.

So how are some people succeeding? The answer is quite simple; they are finding a business that works with their specific strengths and needs. The majority of people today trying to get into the home-based business industry are not salesmen and genius marketers. People fiddle around looking in all the wrong places wasting loads of money on advertising that isn’t working and E-books that promise wealth.

It took me five years to find a business that did not involving… Continue Reading

How Currencies are Traded in the FOREX Market

Currencies are traded in dollar amounts called “lots”. At 100:1 leverage, one lot is equal to $1000 which controls $100,000 of a given currency. This leverage is known as “margin” and some brokers will allow traders even higher leverage than 100:1. This superhigh leverage is one of the reasons that Forex trading has become so popular.

Currencies are always traded in pairs. Each pair has unique notation that expresses which currencies are being traded. The symbol for a currency pair will always be in the form ABC/XYZ. ABC/XYZ is not a real currency pair, just an example of how currency pairs are stated in the market. In this particular example, ABC is the symbol for one country’s currency and XYZ is the symbol… Continue Reading