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What-is-Forex is all about Forex Trading for Beginners, Forex Forums, Forex Tips, FAQ and Information about Forex Brokers, Forex Demo and Forex Traders.

What-is-Forex is all about Forex Trading for Beginners, Forex Forums, Forex Tips, FAQ and Information about Forex Brokers, Forex Demo and Forex Traders.

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    Forex trading guide v1 Forex trading guide v1 Document Transcript

    • ..QQeexxppeerrtt..ccoomm FFOORREEXX TTRRAADDIINNGG GGUUIIDDEE FFOORR BBEEGGIINNNNEERRSS && SSEEMMII--AADDVVAANNCCEEDD TTRRAADDEERRSS FFoorreeiiggnn EExxcchhaannggee TTrraaddiinngg GGuuiiddee vv11..00 ““MMaakkiinngg MMoonneeyy bbyy TTrraaddiinngg FFoorreexx CCuurrrreenncciieess”” FFoorreexx TTrraaddiinngg GGuuiiddee vv11..00 --CCooppyyrriigghhtt ©© FFeebbrruuaarryy 22001144 George Protonotarios ©©--AAllll rriigghhttss rreesseerrvveedd wwoorrllddwwiiddee DDiissttrriibbuuttiioonn bbyy QQeexxppeerrtt..ccoomm wwwwww..QQeexxppeerrtt..ccoomm Forex Advertising
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 2 FFOORREEXX TTRRAADDIINNGG GGUUIIDDEE ““HHooww ttoo MMaakkee MMoonneeyy bbyy TTrraaddiinngg FFoorreexx CCuurrrreenncciieess”” TThhee BBaassiiccss ffoorr BBeeggiinnnneerrss aanndd SSeemmii--AAddvvaanncceedd TTrraaddeerrss --TTAABBLLEE OOFF CCOONNTTEENNTTSS-- 11.. WWhhaatt iiss FFoorreexx aallll AAbboouutt?? .............................................................................................. 22.. TTwwoo CCaatteeggoorriieess ooff FFoorreexx BBrrookkeerrss............................................................ 33.. WWhhyy ssoo mmaannyy PPeeooppllee TTrraaddee FFoorreexx?? .................................................. 44.. FFoorreexx BBoonnuuss PPrroommoottiioonnss................................................................................................ 55.. FFoorreexx TTrraaddiinngg RReebbaatteess........................................................................................................ 66.. SSiixx DDiiffffeerreenntt FFoorreexx TTrraaddiinngg SSttyylleess........................................................ 77.. LLiivvee TTrraaddiinngg SSiiggnnaallss && FFoorreexx RRoobboottss.............................................. 88.. UUsseeffuull FFoorreexx TTrraaddiinngg RReessoouurrcceess..................................................................
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 3 1. What is Forex All About? Forex means FOReign EXchange and it is a global market where the world’s currencies are traded, one currency against another. Central Banks, Commercial Banks, Large and Small Corporations, Institutional Investors, Individual Traders and Common Tourists occasionally need to exchange one currency for another. Examples: Take for example an importer who is based in the US and wants to import 5 Mercedes Trucks from Germany. He must exchange US Dollars for the European Currency (EUR) in order to pay for his import, so he must make a transaction in the Forex Market. ■ Importer Buys EUR and sells USD In the opposite example, a tourist from Germany wants to visit New York so in order to pay for his hotel he must exchange Euros for US Dollars. This transaction will also be made in the Forex market. ■ Tourist Buys USD and sells EUR Forex Currency Pairs & Main Categories Currencies are traded in pairs, you buy one and at the same time you sell another currency. In any currency pair (in the above example EURUSD) the purchased currency is called the Base Currency (EUR) and the sold currency is called the Quote Currency (USD). There are three Main Categories of Forex Currencies: i) Forex Majors (the most popular and traded pairs: EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD and NZDUSD) ii) Forex Minors (less popular pairs and thus more expensive to trade) iii) Forex Exotics (no-popularity and thus very expensive to trade) What is a Forex Lot? A Forex Lot is the standard unit size of a Forex transaction. There are 3 different lot sizes: ■ Micro Lot Size (equals $1,000) → Suitable for Forex Beginners ■ Mini Lot Size (equals $10,000) → Suitable for Semi-Advanced Forex Traders ■ Standard Lot Size (equals $100,000) → Suitable for Advanced and Pro Traders
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 4 But where is the opportunity to make money after all? Currencies are not traded in fixed prices -instead they are part of a free floating trading system. Every order for buying / selling a Forex currency is a factor creating either demand or supply in the market. Even tiny fluctuations in this free-floating system can be transformed into huge profits using the ability of trading leverage (as it will be described afterwards in Chapter-3). Where is the Forex Market Situated? All currency transactions take place within the Forex Market. Where is Forex situated? Actually nowhere specifically, Forex operates as a non-centralized network such is the World Wide Web. All transactions are executed within the Electronic Network of Banks (called the ECN network). There are of course several physical Financial Centers around the world. These financial centers are found in major capital cities such is New York, London, Tokyo, Sydney etc. Today Foreign Exchange is by far the largest market in the world. Forex has become so huge that volumes exceed today 5 trillion USD only in a single day. Forex Market Trading Hours The Foreign Exchange market is open 24/5 between Mondays to Fridays. The Forex daily activity is divided into 4 separate sessions: (1) New York Session, 8:00 am to 5:00 pm EST (2) Tokyo Session, 7:00 pm to 4:00 am EST (3) Sydney Session, 5:00 pm to 2:00 am EST (4) London Session, 3:00 am to 12:00 noon EST Forex Market Overlaps Forex overlaps occur when two of the above sessions are opened simultaneously. Here are the three Forex Session Overlaps: (i) New York and London Session Overlap: 8:00 am to 12:00 noon EST (ii) Sydney and Tokyo Session Overlap: 7:00 pm to 2:00 am EST (iii) London and Tokyo Session Overlap: 3:00 am to 4:00am EST During these overlaps, both trading activity and market liquidity are maximized. Many traders select to execute orders only during these overlaps. To highlight the importance of time when trading Forex, just think that there are automated systems trading exclusively the London and Tokyo Overlap. That means that during the other sessions remain inactive.
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 5 Moreover, there are automated systems trading only as the Asian Session begins. These short-trading systems are commonly scalping the market. Many of these Scalping Systems are presented in Chapter-7. So What is Forex Scalping Then? Scalping is a promising way of trading Forex based on the assumption that you hold state-of-the-art trading technology and the right system to do the job. Scalping Forex means opening and closing trading positions lasting less than one minute and targeting returns as low as 0.001%. Those traders who scalp the market are called scalpers. This is a common trading style and you may find more trading styles at Chapter-6. Why should anyone targeting tiny returns of 0.01%? Wait until the next chapter, the chapter about trading leverage, and you will understand the reason why. Online Forex Platforms What is a Forex Trading Platform? A Forex Trading platform is simply your ticket to Online Forex Trading. A Trading Platform is working like a bridge between you and your Forex Broker. When you execute a trading order (for example selling British Sterling against the US Dollar) this order is passing instantly from your platform to your broker. Then again almost instantly it is passing to the Forex Market. The fantastic thing is that almost all Forex Trading Platforms (Desktop and Mobile) are offered for free to download and to use. Freeware and open source software matters when you trade Forex. The industry’s standard platform is the MetaTrader4 platform from Metaquotes. This platform is called also MT4 and allows manual and automated trading in both desktop and mobile devices. Almost all Trading Platforms today offer features such is the use of indicators, technical analysis tools, trading on charts, 1-click-trading, news alerts etc. ■ Learn the basics about Forex Trading at the web-site What-is-Forex.com » What-is-Forex.com Learning
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 6 Delays on Execution -The Slippage Factor The delay between the time you press the button on your PC and the time your order is actually executed in the Forex Market is called the slippage. If we measure this delay in real time we might say that this delay is between 0.1 seconds to 1.5 seconds. Slippage is generating price manipulation and that is why it is measured in pips. One pip equals commonly 0.0001 of the value of a currency pair. The average slippage in the market today is between 1-2 pips. The Importance of Tiny Segments of Time But why should a trader even care about such a tiny delay of less than 2 seconds? Think about that. There are numerous arbitrage systems today that are trading Forex in timeframes measured in million-seconds. These systems constitute the so called ‘Million-Second Forex Market’. One (1) second for a scalping system equals 1 month for a regular trader. Furthermore if you trade the news (News-Trader) 1 second is the difference between making a huge profit and suffering a huge loss. News-Trading is one of the six trading styles presented in Chapter-6. “Time is the most disputed issue in the men’s history” ■ Find full reviews and multiple comparisons regarding Scalping Forex Trading Systems at ForexAutomatic.com: » Forex Robots and other Automated Systems
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 7 2. Two Categories of Forex Brokers -The Need for Reliable and Regulated Partners In order to trade Forex you need also a broker. Forex Brokers operate as intermediaries between a trader and the aggregate Forex Market (The ECN network mentioned before). Basically there are two main categories of Brokers based on their execution model, the Dealing Desk and the No-Dealing Desk Brokers. Two (2) General Categories of Forex Brokers (a) Dealing Desk Brokers (DD) or Agents or Market Makers These brokers operate as a Dealing-Desk, meaning that they are making their own market within the Forex market. In simple words, Market Makers sum all the buying and selling orders of their clients and execute trades instantly on both sides. Actually they accept all orders from opposite sides and earn money by staying in the middle, without risk. Sometimes Market Makers are trading against their clients just to fill all their orders. Professional traders don’t like the fact of trading against their brokers and that is why they are constantly avoiding Dealing Desk Brokers. Dealing Desk Brokers or Market Makers are not considered as pure Forex Brokers Dealing Desk Brokers offer usually a wide asset index including Forex, Stocks, Indices, Commodities and Energy trading. In general, Dealing-Desk Brokers are considered a good choice only for beginners and semi-advanced traders. This perception exists as Dealing-Desk Brokers offer currency pairs in wide spreads. EURUSD for example can be found usually at 2 pips minimum. Moreover Dealing- Desk Brokers provide trading with slippage and re-quotes. The only important advantage of trading with a Dealing Desk Broker is the Forex Bonus offered. Dealing- Desk Brokers offer very high welcome bonuses up to 100% (find Forex Bonus Promotions later in this eBook). ■ Tip: If you want to trade with a Market Maker, choose a broker offering withdrawable bonus. Trade your bonus as many times required and then withdraw your funds and your bonus. It is the best chance you have to win. (b) No-Dealing Desk Brokers (NDD) -ECN or STP Forex Brokers In this category we find brokers that are transferring their client orders directly to the Forex Market, meaning transferring orders directly to the Electronic Network of Banks (ECN). The great advantage of trading with an ECN/STP broker is the low transactional cost and the very fast order execution. Transaction cost in Forex Trading is deriving mainly from spreads And from trading commissions charged on
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 8 volume. Cost may be also the outcome of slippage. ECN/STP brokers offer by rule the lowest slippage in the market. The ECN/STP Forex brokers are the only choice of professional and advanced Forex traders and the only choice for all those wishing to trade Forex via automated- trading systems (explained in Chapter-7). Note: Not all ECN/STP brokers offer good trading terms to their clients. There are good, medium and bad performers as in every other industry. Here are two examples of an ECN/STP Broker offering EURUSD: i) EURUSD spread at 1.4 pips without any trading commissions ii) EURUSD spread at 0.4 pips plus $3.5 commission per $100,000 volume The Essence of Trading with Regulated Forex Companies Reliability is priority number one when your industry is the Online Financials. Everyone who wants to trade the world’s currencies needs a reliable Forex Broker. There are hundreds of Forex Brokers available in the market, but it is extremely important to trade only with those that are high regulated and reliable. Regulation means that a company is supervised and controlled by external independent bodies. Regulation works as a great incentive for any broker to behave ethically and respect his client’s interests. Another factor that adds reliability to a Forex Company is the existence of Segregated Client Bank Accounts. That means that when you make a deposit your funds are safely deposited in an external bank. The country where a Forex Broker is situated also matters, avoid companies situated in offshore countries. Offshore countries are providing weak legislative frameworks regarding corporations, and that is not good for any online trader. Here is a list with some High-Regulated Forex Brokers offering also segregated Bank Accounts to their Clients:
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 9 REGULATED FOREX BROKERS LIST (NO-US CLIENTS LIST) Here is a list of regulated Forex Brokers offering funds safety via segregated client bank accounts. FOREX BROKER REGULATED SEGREGATED BANK ACCOUNTS EXECUTION MODEL MINIMUM DEPOSIT WELCOME BONUS INFO XeMarkets FSA UK, CySEC Cyprus, ASIC Australia Yes STP MODEL $5 30% up to 10,000USD ► Review Broker »XeMarkets Web IronFx ASIC Australia, FCA UK, CySEC Cyprus Yes ECN / STP $500 50% ► Review Broker »Ironfx Web AvaTrade ASIC Australia and CBI Ireland Yes DEALING DESK $100 50% up to 10,000USD ► Review Broker »Avatrade Web HotForex MiFID Europe and CySEC Yes ECN / STP $5 30-100% ► Review Broker »HotForex Web FOREX BROKERS FOR US TRADERS Here are Forex brokers for US Traders offering segregated bank accounts to their clients. 1) ForexBrokerInc. (ECN Broker) 100% Welcome Bonus | Minimum Deposit $5 ► Learn more about the Forexbroker.inc |» Visit Web-SIte 2) FinFx (ECN Broker) No Bonus | Minimum Deposit $100 ► Learn more about FinFx | » Visit Web-Site ■ Find Forex Brokers Ratings at FxPros.net
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 10 Forming the Profile of the Perfect Forex Broker -For the Average Trader Here are some characteristics of the Ideal Forex Broker: (i) Offering maximum safety of trading funds (high regulation and segregated client bank accounts) (ii) Offering minimal transaction cost (low spread, low commissions, no re-quotes) (iii) Offering a wide asset index containing more than 60 currency pairs (majors, minors and exotic pairs as mentioned before) (iv) Offering fast order execution with minimal delays and no price manipulation (v) Offering a good variety of trading platforms allowing mobile trading, automated trading and scalping (vi) Providing a variety of different deposit / withdrawal methods by not charging commission on withdrawals or on inactive accounts (vii) Providing fast and reliable customer service (emai, live chat and phone support) Rating Brokers Formula by TradingCenter.org -The New and Revolutionary Way of Rating Financial Services Based on recent research, most of the user ratings found in the Internet today are fake. This is happening as Online Companies pay outsiders to rate them favorably in user-rating sites. In this uncomfortable environment the Rating Formula Series was designed to provide a completely objective framework of rating financial services. The Rating Formula Series includes all the major factors forming the ideal Broker. This innovative rating formula is designed by TradingCenter.org. Here are the four (4) generic rating categories forming the maximum rating value of 100%.
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 11 FORMULA v.4.0 TOTAL RATING (The structure of Rating Formula v4.0) WEIGHT (%) Factor-1: Safety of Funds 26.0% Rating + Factor-2: Trading Cost 28.0% Rating + Factor-3: Available Trading Options 26.0% Rating + Factor-4: Technology 20.0% Rating = 100% max Learn more about the Rating Formulas: These are the latest versions of the Rating Formula series. ► Rating Formula v5.0 –Forex Brokers, at TradingCenter ► Rating Formula v4.0 –Forex Brokers, at TradingCenter ► Rating Formula v3.5 –Binary Options Brokers, at BinaryValue
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 12 3. Why so many People Trade in the Forex Market? –The Profit Potential Two factors are forming the great Profit Potential of Forex Trading, liquidity and trading leverage. Here is a short analysis of these two trading factors. 2.1 Forex Market Huge Liquidity and Low Cost of Transactions As it was mentioned before the Foreign Exchange Market is really huge with daily turnovers of more than 5 trillion US dollars. That means that there are tens of thousands of currency buyers and currency sellers at any given second. That enormous volume activity pushes the distance between buyers and sellers (called the spread) in minimal ranges. The average spread on EURUSD for example is less than 2 pips. That means that if the first buyer is at 1.3800 then the first seller is at 1.3802. This distance in the example given is just 0.002, or else 2 pips spread. Why is this fact so important? This is important because you can open and close a trading position with an extremely low transaction cost. (i) 2.2 Multiplying Funds via the Use of Leverage Forex trading provides the unique advantage of huge trading leverage. What does trading leverage means? Trading leverage means that you can trade more funds that you really hold. But what makes that advantage astonishing is the number of times you may leverage your funds. Most Forex Brokers today offer leverage up to 500:1. Therefore, if you open an account with $1,000 you may trade theoretically $500,000. (ii) By combining minimal transaction cost and high trading leverage {(i) and (ii)} it is obvious what makes Forex Trading so lucrative and popular in a global scale. Example: If you open a position worth $500,000 and you gain 1.0% then your earnings are calculated as: ■ Earnings Computation = $500,000 X 1.0% - Hypothetical Cost of Transaction = $5,000 - $300 = $4.700 ■ Your Initial investment was $1,000, so you gained 370% on your investment with just 1.0% currency movement Be aware that this procedure incurs high risks too, as you may win or lose money, especially if you are not familiar with this process. This example is given to highlight the profit potential and why Forex Trading attracts so many people worldwide.
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 13 4. Forex Welcome Bonus -Another Great Advantage of Forex Trading High Deposit Bonus and No-Deposit Bonus Forex Welcome Bonus –The Difference between a Credit Bonus and a Withdrawable Bonus Forex Brokers in order to attract new clients offer promotions that are called Forex Bonuses. A common welcome bonus is 30% but it can be up to 100%. What means 100% welcome bonus on deposit? It means that if you are a new client and you deposit 1,000USD then the broker will add you another 1,000USD in your account as an extra trading capital. There are two types of Forex welcome bonus: i) Withdrawable Bonus (usually 30% on new deposit) ii) Credit Bonus (usually 50-100% on new deposit) You may withdraw a Withdrawable Bonus by trading it several times according to the Terms & Conditions of any promotion. From the other hand, you can not withdraw a credit bonus but you may still withdraw the gaining generated by a credit bonus. Risk-Free Trading via a No-Deposit Bonus Account Additionally, Forex Brokers in order to make traders more familiar with their platforms offer also the so called No-Deposit Forex Bonuses. That means that you get a bonus amount between 20-100USD just by confirming your email or phone and without depositing any funds at all. That is an excellent risk-free way to get in touch with Forex Trading for the first time. Where is the Catch? Be aware that you may withdraw a No-Deposit Forex Bonus but you must first trade it at least 20-25 times. Anyway that is a great way to start trading without any risk.
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 14 NO-DEPOSIT BONUS & BROKER 1) AvaTrade offers $50 No-Deposit Bonus ► Review Broker and Information | » Claim $50 Free Bonus 2) InstaForex No Deposit Bonus ► Review Broker and Information | » InstaForex Free Bonus 3) XeMarkets offers $20 for joining the innovative Trading Contest Arena ► Review Broker and Information | » XeMarkets Free Bonus 4) Markets.com $25 No-Deposit Forex Bonus ► Review Broker and Information | » Markets.com $25 Free Bonus NO-DEPOSIT BONUS FOR US TRADERS 5) ForexBroker Inc. offers $100 No-Deposit Bonus Only for US Traders ► Review Broker and Information | » ForexBrokerInc $100 Free Bonus
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 15 Binary Options Trading Bonus Binary Options constitute a relative new instrument to Trade Forex and other Financial Markets. These are some Binary Option Brokers and their bonus offerings. Be aware that trading binary options is considerably risky. BINARY OPTIONS BROKER US TRADERS TRADING MINIMUM DEPOSIT & BONUS INFORMATION ■ GOptions Yes Max Payout: 90% 70+ Assets $200 25-100% Bonus ► Review Broker » Web-Site ■ CapitalOption No Max Payout: 85% 90+ Assets $100 100% Bonus ► Review Broker » Web-Site ■ Banc De Binary No Max Payout: 75% 90+ Assets $250 50% Bonus ► Review Broker » Web-Site ■ OptionRally No Max Payout: 78% 70+ Assets $200 30% Bonus ► Review Broker » Web-Site ■ StockPair Yes Max Payout: 82% 120+ Assets $200 40% Bonus ► Review Broker » Web-Site ■ OptionsXo No Max Payout: 89% 40+ Assets $100 Up to 100% Bonus ► Review Broker » Web-Site Note: Brokers Features & Promotions presented in this eBook may change any time. ■ Information, Reviews and Comparisons about Binary Options at Binaryvalue.com
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 16 5. Forex Trading Rebates –Promotions designed for Advanced Traders What is a Forex Trading Rebate? A Forex trading rebate means making money from your trading volumes. For example if you have joined a rebate plan offering $5 per lot (lot = $100,000), and during a certain month you have traded 20 lots, you earned $100. A trading rebate has nothing to do with your overall trading performance, only volumes matter. Where is the Catch? There is no catch here. Simply Forex Brokers provide rebates to Professional Investment Consultants as an incentive to introduce them new clients. A part of this rebate is given back from those professionals to real traders. This circle of money is called a Forex Trading Rebate. Automatic Forex Rebates –The best way to Trade Forex An automatic Forex Rebate means a rebate that is earned directly to your trading account without any interventions. You need again a Professional Investment Consultant as the intermediary. Here are three Trading Rebate Plans from advanced ECN Brokers and information how you can join them. All three rebates are fully automated and 100% free of any charge (sign or other fee). Furthermore all your other trading terms on these brokers will remain exactly the same. ECN BROKER REBATE PLAN US CLIENTS MINIMUM DEPOSIT FUND METHODS INFO FinFx Finnish Broker ■ FinFx $0.6 / lot discount on ECN Accounts ■ The same $0.6 / lot for ECN Pro Accounts Or ■ 0.25 pips manual rebate for Micro Accounts Yes $150 Bank Wire, Credit Cards, MoneyBook ers » Learn more here Find more Information ► Automatic ECN Rebate Link Minimum deposit $1,000 ► Automatic ECN Pro Rebate Link -Minimum deposit $10,000
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 17 ECN BROKER REBATE PLAN US CLIENTS MINIMUM DEPOSIT FUND METHODS INFO FINFX MINI ACCOUNT ► Manual Rebate Link - Minimum deposit $150 Dukascopy Bank Swiss Broker ■ Dukascopy 40% Rebate on all commissions charged No $5,000 Bank Wire, Credit Cards DUKASCOPY BANK » Learn more here During the registration process at the step KNOW US FROM indicate 8410 as your Introducing Agent ► Register at Dukascopy Bank -Indicating ‘Known us from IB’ 8410 Dukascopy Europe Branch of Dukascopy Bank ■ Dukascopy 10% Rebate on all commissions charged No $100 Bank Wire, Credit Cards DUKASCOPY EUROPE » Learn more here During the registration process at the step KNOW US FROM indicate IB- 8411 as your Introducing Agent ► Automatic Rebate link Other Web-Sites with Forex Promotions 1) ForexBonus.info (Forex Bonus) 2) Binaryvalue.com (Binary Options Bonus) 3) You may also find promotions in the Facebook page Facebook/OnlineFx » Visit Facebook Forex Trading
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 18 6. Six Different Forex Trading Styles – Select your Own Style These are the six main categories of Forex Traders (Trading Styles): 1. Curry Traders (Long Traders) WHAT THEY DO? They open positions lasting from 1 month to 9 months and aim to exploit inefficiencies’ in the level of interest rates between two economies. They usually like to buy currencies offering huge interest rates (10-15%) and at the same time sell currencies offering lower interest rates. This difference can be transformed into huge profits for those who know how and when to trade it. REQUIREMENTS: When you open a position in the Forex Market that remains open more than 1 day you pay or get paid what is called as the Swap value. Swap charges are calculated based on the level of interest rates between two currencies. These interest rate differences can sometimes work for you and some other times against you. Therefore if you trade long you need a Forex Broker offering the best terms as concerns the swap charges. Additionally you need a broker offering a wide asset index. An asset index is the portfolio of currency choices that you will be able to trade. This asset index varies depending on your broker. The more currency choices you have the easier it will be for you to exploit interest rate inefficiencies. When you trade long, you don’t care about the spreads, the technology, delays etc. It is essential that a long-trader must be able to understand fundamental analysis and the correlation between inflation, interest rates and the current Forex currency rates. I would need another eBook just to explain this correlation furthermore. 2. Swing Traders WHAT THEY DO? They open and close positions lasting from 1 day to 15 days. They aim to exploit mid-term trends because 1 week is considered mid-term in Forex Trading. Swing traders are some of the most successful Forex Traders there is. They avoid trading intraday as they don’t like the so called ‘market noise’ of intraday trading. REQUIREMENTS: Swing trading is one of the best ways to trade Forex. In order to evolve as a Swing Trader you need a little bit about everything. You need narrow spreads, reasonable
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 19 swap charges, relative good technology and also a broker offering a wide asset index. Swing traders are using both technical and fundamental analysis. 3. Intraday / Short Traders WHAT THEY DO? They open and close positions in the same day. This type of Forex traders is focusing solely on technical analysis. Short-traders use either their own system to trade or they pay a monthly subscription to an external signaling service. The alerts of signaling services are delivered via SMS, email, Facebook, Member’s Area etc. Information about Live Forex Signaling Systems is found in Chapter-7. REQUIREMENTS: Basically two things really matter. First of all you need the perfect technology with minimal delays. Secondly you need a Forex Broker offering very tight spreads and small trading commissions. Short-Trading is all about paying minimal cost. If you want to evolve as an Intraday Trader, think about joining a trading rebate plan too. A trading rebate can minimize your trading cost. You may find three ECN rebate plans at the Chapter-5 of this eBook. 4. News Traders WHAT THEY DO? They are trading important news and events, perfect information and top technology are considered absolutely a ‘must’ for News-Traders. REQUIREMENTS: The same requirements needed as the Intraday Traders (News-Traders are Intraday Traders too). 5. Forex Scalpers WHAT THEY DO? As it was mentioned in Chapter-1, scalpers open and close positions in tiny timeframes lasting less than one minute. They aim to ‘scalp’ the market and earn 2- 10 pips. REQUIREMENTS: Scalpers need perfect technology and minimal transaction cost -But all that is needed in a much higher extend than the case of the usual intraday trader. Usually scalpers
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 20 are not trading Forex manually but instead they trade via the use of an automated system (copier or Robot). You can learn about automated scalping systems in the Chapter-7 of this eBook. Keep in mind that usually scalpers trade exclusively three currency pairs. The reason is that these 3 pairs enjoy high liquidity and therefore minimal transaction cost: i) Euro against the US Dollar (EUR/USD) ii) British Pound against the US Dollar (GBPUSD) iii) US Dollar against the Japanese Yen (USD/JPY) 6. Copy Traders / Social Traders WHAT THEY DO? Following (copying) the trading activity of other traders. This procedure is also called as Social Trading (nothing to do with common Social Media). REQUIREMENTS: Social trading is booming nowadays. In order to make money from this type of trading you need a social trading platform, for example ZuluTrade and MirrorTrader. Social trading platforms are again free to download and to use. ► The ZuluTrade Platform Furthermore you need good technology too, but most importantly you need an excellent instinct to select the perfect signal provider. All social trading platforms offer the chance of monitoring the past performance of any signal provider. You can also compare providers based on your criteria.
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 21 7. Live Forex Trading Signals & Forex Robots (i) Live Forex Trading Signals What is a Live Forex Trading Signal? A Live Forex trading signal is an alert for buying or selling a Forex Currency Pair. This alert can be delivered either manually or automatically. Manual alerts are delivered via classic methods as email, Facebook, SMS, twitter, member’s area etc. Automatic alerts are delivered via a signal copier. Usually automated trading signals are based on MetaTrader4. Which are the Criteria When Choosing a Forex Signaling Service? A Forex signaling service is provided usually for a monthly subscription between 50- 150 USD. First of all you must focus on a service that is able to cover all your needs (manual or automated trading, delivery method, frequency of signals etc). Furthermore, it is important to focus also on the past performance of each service. Sometimes, these services offer also a trial period of a few days. Here is a list with popular Forex Signal Providers: SIGNAL PROVIDER STYLE TRADING COST INFORMATION SIGNALS & MENTORING CLUB ■ Automated Trading ■ Manual Trading ■ News Trading ■ Social Trading ■ Forums with Signals and Reports ■ Learning ■ Forex Currencies ■ Gold Trading ■ Stocks & Indices Trading ■ 77 USD per month ► Review System » Visit Web TRADE MINER ■ Desktop Trading Software ■ Manual Trading ■ Forex Currencies ■ Futures Trading ■ Stocks Trading ■ 97 USD for one-time ► Review System » Visit Web MBFX TRADING ■ Manual ■ Forex ■ 97 USD ► Review System
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 22 SIGNAL PROVIDER STYLE TRADING COST INFORMATION Trading ■ SMS Alerts Currencies ■ Gold Trading ■ Stocks Trading for one-time » Visit Web AUTO BINARY OPTIONS SIGNALS ■ Manual Trading ■ SMS Alerts ■ eMail Alerts BINARY OPTIONS TRADING ■ Forex Currencies ■ Stocks & Indices Trading ■ 120 USD for one-time ► Review System » Visit Web ELITE SIGNALS ■ Automated Trading ■ Manual Trading ■ Forex Currencies ■ Gold Trading ■ 49 USD per month ► Review System » Visit Web FX TRENDY SYSTEM ■ Manual Trading ■ eMail Alerts ■ Forex Currencies ■ 37 USD every 3- months ► Review System » Visit Web
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 23 (ii) Forex Robots (Expert Advisors) What is a Forex Robot? A Forex Robot (or else an Expert Advisor) is a piece of software that plugs in a Trading Platform in order to trade Forex automatically. These systems are usually running on Metatrader4. If you want to trade using a Forex Robot you need top technology and probably a VPS hosting service (explained later). The Criteria When Choosing a Forex Robot A Forex Robot is designed to perform a very difficult task so there are many parameters defining your best choice. Here are some important factors that must be taken into consideration: (1) Past Performance of the Robot (2) Who is the Developer? (3) What is the average frequency of trading? (4) Is there any Money Management Mechanism (spread and slippage control etc.) (5) What is the Price of this system? Can I use it in more than one Live Account? (6) Does my broker allow the use of a Forex Robot? (usually ECN /STP brokers allow trading via the use of Forex robots) (7) Is my broker suitable for automated trading? (spreads, execution speed etc) (8) Will I need a VPS hosting service? (probably the answer is yes) Furthermore: (9) Test always any system in a demo account before using it in a real trading account. (10) Never mix the use of a Forex robot with other trading activity, it may confuse the robot’s Money-Management System
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 24 POPULAR FOR ROBOTS (EXPERT ADVISORS) Here is a list with popular Forex Robots (Expert Advisors): FOREX ROBOT STYLE PLATFORM ONE-TIME COST INFO FAP TURBO FOREX ROBOT ■ Scalping many Forex Currencies in the M15 Chart ■ MetaTrader4 ■ 149 USD for one-time ■ Free Lifetime Updates ■ 1 Forex License ► Review System » Visit Web WALLSTREET ROBOT ■ Scalping: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD ■ MetaTrader4 ■ MetaTrader5 ■ 299 USD for one tine ■ 3 Forex Licenses ■ Free the Omega Indicator ► Review System » Visit Web GPS FOREX ■ Scalping many currencies during the Asian Session ■ MetaTrader4 ■ MetaTrader5 ■ 149 USD for one time ■ 1 Forex Account License ► Review System » Visit Web VOLATILITY ROBOT ■ Scalping only EUR/USD, GBP/USD ■ MetaTrader4 ■ 190 USD for one time ■ 1 Forex Account License ► Review System » Visit Web FX MEGADROID ■ Scalping only EURUSD ■ MetaTrader4 ■ ZuluTrade ■ 67 USD for one time ► Review System » Visit Web ■ Find Expert Advisors and Trading Systems Reviews at ForexAutomatic.com What is a VPS Hosting Service? In order a Forex Robot to trade effectively it requires to remain active 24 hours per day. This problem can be solved via the use of a VPS. A VPS is an external hosting service that allows the Robot to trade 24 hours per day without having your PC, Laptop or Tablet turned on. A VPS usually costs about $40 per month but certain brokers offer that service for free.
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 25 8. Forex Trading Resources (i) Major Currency Symbols CURRENCY CODE SYMBOL FOREX SLANG US DOLLAR USD $ Dollar Buck EUROPEAN EURO EUR € Fiber SWISS FRANC CHF CHF Swissy BRITISH STERLING GBP £ Cable JAPANESE YEN JPY ¥ Yen CANADIAN DOLLAR $ Loonie AUSTRALIAN DOLLAR AUD $ Aussie NEW ZEELAND DOLLAR NZD $ Kiwi (ii) Six (6) Main Types of Trading Orders These are the six (6) important order types when trading Forex: (1) Market Order Buying or selling a currency pair at the current market price. (2) Limit Order Buying or selling a currency pair at a pre-determined (limited) price. (3) Stop-Loss Order A stop-loss is the most important order type. A stop-loss sets a limit to the maximum amount you are willing to risk in any trade. (4) Target Profit Order This common order sets your targeted price level. It pre-determines your profit potential. (5) Limit Entry & Stop-Entry Buy or sell a currency pair below or above the market at a pre-specified level. (6) OCO Order OCO means One-Cancels-Other. Based on this order if a trade is executed then another trade is automatically cancelled. (7) GTC Order GTC means Good-Till-Cancelled. A GTC order remains in the market active until it is either filled or cancelled. CAD
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 26 (iii) Currency Pairs and Changes in Historic Volumes Source: Aite Group ‘Global FX Market Update 2013: Increased Market Transparency, More Competition’
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 27 (iv) Forex Calendar / Heat Map This Forex Heat Map Table is based on statistics between the years (2000-2013). The full research was published on www.TradingCenter.org. Source: ForexAutomatic.com / TradingCenter.org
    • FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 28 ©© GGeeoorrggee PPrroottoonnoottaarriiooss 22001144 CCOOPPYYRRIIGGHHTT IINNFFOORRMMAATTIIOONN AALLLL RRIIGGHHTTSS RREESSEERRVVEEDD.. NNoo ppaarrtt ooff tthhiiss eeBBooookk ((iinncclluuddiinngg tteexxtt,, iinnffoorrmmaattiioonn,, ttaabblleess,, aannaallyyssiiss,, rreessoouurrcceess aanndd iimmaaggeess)) mmaayy bbee ccooppiieedd,, rreepprroodduucceedd,, mmiirrrroorreedd oorr ssoolldd.. DDIISSCCLLAAIIMMEERR AANNDD LLEEGGAALL NNOOTTIICCEE TThhee iinnffoorrmmaattiioonn pprreesseenntteedd iinn tthhiiss eeBBooookk rreepprreesseennttss tthhee vviieeww ooff tthhee aauutthhoorr.. EEvveerryy aatttteemmpptt hhaass bbeeeenn mmaaddee bbyy tthhee aauutthhoorr ttoo vveerriiffyy aallll iinnffoorrmmaattiioonn iinncclluuddeedd iinn tthhiiss eeBBooookk,, bbuutt tthheerree iiss nnoo gguuaarraanntteeee aabboouutt tthhee aaccccuurraaccyy aanndd tthhee rreelliiaabbiilliittyy ooff aannyy iinnffoorrmmaattiioonn pprreesseenntteedd iinn tthhiiss eeBBooookk.. IInn aaddddiittiioonn,, tthhiiss FFoorreexx GGuuiiddee iinncclluuddeess aaffffiilliiaattee lliinnkkss.. TThhiiss eeBBooookk iiss nnoott iinntteennddeedd ffoorr uussee aass aa ssoouurrccee ooff ffiinnaanncciiaall oorr iinnvveessttmmeenntt aaddvviiccee.. RRIISSKK WWAARRNNIINNGG TThheerree iiss ccoonnssiiddeerraabbllee eexxppoossuurree ttoo rriisskk wwhheenn ttrraaddiinngg FFoorreexx,, FFuuttuurreess aanndd OOppttiioonnss.. TTrraaddiinngg FFoorreexx aanndd ootthheerr lleevveerraaggeedd pprroodduuccttss iinnvvoollvveess aa ssiiggnniiffiiccaanntt lleevveell ooff rriisskk aanndd iiss nnoott ssuuiittaabbllee ffoorr aallll iinnvveessttoorrss.. BBeeffoorree uunnddeerrttaakkiinngg aannyy ssuucchh ttrraannssaaccttiioonnss yyoouu sshhoouulldd eennssuurree tthhaatt yyoouu ffuullllyy uunnddeerrssttaanndd tthhee rriisskkss iinnvvoollvveedd aanndd sseeeekk iinnddeeppeennddeenntt aaddvviiccee iiff nneecceessssaarryy.. TThhee ppoossssiibbiilliittyy aallwwaayyss eexxiissttss tthhaatt yyoouu ccoouulldd ssuussttaaiinn aa ssuubbssttaannttiiaall lloossss.. NNeevveerr ttrraaddee wwiitthh ffuunnddss tthhaatt yyoouu mmaayy nneeeedd iinn tthhee ffuuttuurree.. PPaasstt ppeerrffoorrmmaannccee iiss nnoott nneecceessssaarriillyy iinnddiiccaattiivvee ooff ffuuttuurree rreessuullttss.. AAnnyy ooppiinniioonnss,, ssuuggggeessttiioonnss,, bbrrookkeerrss,, ssyysstteemmss,, sseerrvviicceess,, ssooffttwwaarree,, rreevviieewwss,, pprroommoottiioonnss,, bboonnuuss,, rreebbaatteess,, lliinnkkss aanndd wweebb--ssiitteess mmeennttiioonneedd oonn tthhiiss eeBBooookk aarree pprroovviiddeedd aass ggeenneerraall mmaarrkkeett ccoommmmeennttaarryy,, aanndd ddoo nnoott ccoonnssttiittuuttee iinnvveessttmmeenntt aaddvviiccee iinn aannyy wwaayy.. FFoorreexx TTrraaddiinngg GGuuiiddee vv11..00 -- CCooppyyrriigghhtt ©© FFeebbrruuaarryy 22001144 GGeeoorrggee PPrroottoonnoottaarriiooss --AAllll rriigghhttss rreesseerrvveedd wwoorrllddwwiiddee DDiissttrriibbuuttiioonn bbyy QQeexxppeerrtt..ccoomm wwwwww..QQeexxppeerrtt..ccoomm Forex Advertising & Web-Sites