Forex insiders, Trading Secrets That You Should Know


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Forex insiders, Trading Secrets That You Should Know

  1. 1. Superior FX Signals. Com Forex Insiders Trading Secrets That YOU Should Know! all rights reserved
  2. 2. Superior FX Signals. ComTrading Forex MarketFor a beginner forex currency trading may seem to be a whole new worldbut in fact the basics are quite easy to learn. You just need to understandthe buzz words and trading terms and grasp a basic understanding ofhow the markets work.Making big money in a short time is what forex currency trading is allabout! It is possible for investors to make a lot of money very fastbecause the rates of exchange on the foreign market can rise and fallquickly. This means of course that it is risky and there is also a chance oflosing a lot, just like most things in life that have the potential of bigreturns.As you will know if you have ever exchanged currency for a vacation, therates are constantly changing. For example you may change $100 intoanother currency planning to travel, and then find that you do not need itand change it back. The rate will probably have changed in the meantimeand you may even have made a profit.Forex traders deal in currencies hoping to make a profit all of the time,but instead of changing money at the bank they use a broker. Mosttransactions these days are handled online. In many ways it is not sodifferent from stock trading. There is the same potential to trade inmargins where a small balance held by your broker can control muchlarger deals.One difference from stock exchange trading is that forex traders are notlimited to dealing in their own country. You can trade any two currenciesregardless of where you live. This also means that the market isinternational. Because of time zone differences, it is open 24 hours a dayfrom Monday morning in Australia to Friday afternoon in New York.Each currency is represented by 3 letters: USD for the US dollar, GBP forthe British pound, EUR for the Euro, JPY for the Japanese Yen, CHF for
  3. 3. Superior FX Signals. Comthe Swiss franc, CAD for the Canadian dollar, AUD for the Australiandollar etc. The exchange rate between two currencies may be expressedlike this: USD/CHF 1.14. This means that to buy one US dollar you willneed 1.14 Swiss francs.If you want to start out in forex trading you will need to look for a brokeror investment management company that you trust. It is worth shoppingaround and checking online forums for recommendations. Check outhow long the company has been in business and what your rights andliabilities will be. Read all of the fine print.You will probably also want to use a bot to do your trading for you. Thisis automated forex trading software that can trade 24 hours a dayaccording to rules that you set for it. There is usually a demo option sothat you can test out the whole system for a while before you let it tradewith real money. There are many forex robots on the market and most ofthem come with full instructions for beginner forex currency trading.The difference between the stock market and the forex market is the vasttrading that occurs on the forex market. There is millions and millionsthat are traded daily on the forex market, almost two trillion dollars istraded daily. The amount is much higher than the money traded on thedaily stock market of any country. The forex market is one that involvesgovernments, banks, financial institutions and those similar types ofinstitutions from other countries. TheWhat is traded, bought and sold on the forex market is something thatcan easily be liquidated, meaning it can be turned back to cash fast, oroften times it is actually going to be cash. From one currency to another,the availability of cash in the forex market is something that can happenfast for any investor from any country.The difference between the stock market and the forex market is that theforex market is global, worldwide. The stock market is something thattakes place only within a country. The stock market is based onbusinesses and products that are within a country, and the forex markettakes that a step further to include any country.
  4. 4. Superior FX Signals. ComThe stock market has set business hours. Generally, this is going tofollow the business day, and will be closed on banking holidays andweekends. The forex market is one that is open generally twenty fourhours a day because the vast number of countries that are involved inforex trading, buying and selling are located in so many different timeszones. As one market is opening, another countries market is closing.This is the continual method of how the forex market trading occurs.The stock market in any country is going to be based on only thatcountries currency, say for example the Japanese yen, and the Japanesestock market, or the United States stock market and the dollar. However,in the forex market, you are involved with many types of countries, andmany currencies. You will find references to a variety of currencies, andthis is a big difference between the stock market and the forex market.If you are interested in trading Forex, you should look into what eachbroker offers in Forex trading features. There are plenty of brokeragehouses that you can trade Forex from and each of them offer differentForex trading features.Forex trading features can be an integral part of how you choose totrade, do research and invest in Forex. Forex stands for the foreignexchange market and the Forex market is the largest financial market inthe world with 1.9 trillion dollars worth of trades each day. Forexdoesn’t have a central market where trading takes place, so Forexcontinues 24 hours a day no matter where you live. Many day tradersand small investment firms trade Forex because of its ease of trading andgreat brokerage houses that make available to their members greatForex trading features.If you are looking for a Forex Broker, here are some great Forex tradingfeatures that you may find; 24 hours customer service, no slippage onmarket orders, leverage, stop loss and limit orders.24 hours customer service is a must have in any trading platform, andmost Forex brokers usually do a great job delivering great answers to
  5. 5. Superior FX Signals. Comyour service and technical needs. Slippage on market orders means thatwhen you trade in real time, you lock in your market order and that youpay the price quoted or bid for.Leverage is a financial tool where you can bet many times the amount ofmoney that you have in your account. Many brokers allow you toleverage up to 200 times. If you have $1,000 in your account with abuying leverage of 10, you can trade $10k. Stop loss and limit ordersmeans that you can customize your buying and trading to buy only at acertain price and sell when a stock drops or rises to a certain price. Sotake a look at the above Forex trading features for a great way to tradeForex.
  6. 6. Superior FX Signals. ComForex for AllIf you are a beginner trader or just curious, you will be happy to knowthat there is tons of information on Forex. Forex stands for foreignexchange markets and the Forex market is the largest financial market inthe world with close to 2 trillion dollars traded each day. Forex tradesthe world’s currencies and is perfect for day traders and investors fromhome that would like to trade, because there is no central market andyou are able to trade 24 hours a day throughout the world.There is so much information on Forex; you can easily find tools,resources, charts and tutorials on trading Forex. Forex has grownthroughout the years and is now a powerhouse especially on the web.Many web developers and brokers have become interested in Forex andhave made it enticing to investors due to the wealth of informationavailable on all topics of trading Forex.You can also find information on Forex at web forums and blogs. Forexforums and blogs are an excellent way to learn about the Forex industryas well as trading Forex. You can easily talk to many people about thetools they use, brokers that are available and read commentary by experttraders on what trends are becoming visible.You can also find information on Forex off line as well. There arecourses taught by instructors, books and materials that you can buy inbooks stores or lend at libraries and even videos that can show youspecial strategies for trading Forex. So if you are looking for greatinformation on Forex, check out the above resources.There are thousands of Forex sites, while many of them are junk, thereare a few that truly offer a great resource for trading Forex. Forex standsfor foreign exchange market, which happens to be the world’s largestmarket with close to 2 trillion dollars in trades each day. Many peoplelove Forex, because there is no central market location, so Forex can betraded 24 hours each day from any location in the world.
  7. 7. Superior FX Signals. ComMost people that trade Forex, sign up with a broker and use theirbroker’s sites for trading, analysis and certain resources, but justbecause you use a certain broker, shouldn’t limit you to the amount ofForex sites that you visit.There are many great Forex forums that you can visit daily for greatopinions, new trends and to ask questions Forex forums are one of theleading Forex sites visited. For people that are interested in crunchingdata and analysis, there are plenty of Forex sites that host hugereservoirs of data for your number crunching needs.You can also visit Forex sites that have many tutorials on trading Forexand using certain trading tools. There are even tutorials on learning howto analyze data and how to read charts. So if you are into Forex trading,check out the above categories of Forex sites that can help you be a bettertrader.There are many people that sign up to trade Forex that don’t understandor take the time to learn how and why to trade Forex. There are manyrisks involved in trading any kind of asset, whether it is stocks, bonds orcurrencies. If you are interested in trading, make sure you understandForex risks.One of the biggest Forex risks is a leveraged buy. Some Forex brokeragesallow you to hold a certain amount of money in your account butleverage that amount to up to 200 times its worth. While this can begood if you are on the winning side of a trade, this can be devastating ifyou lose your entire accounts worth plus many times more.Many Forex brokers have special features that can limit your risks suchas stop loss and limit orders and no negative balances. If you areinterested in trading Forex, before you start to trade, learn andunderstand the Forex risks involved.
  8. 8. Superior FX Signals. ComTrading ToolsMost Forex brokerages have their own software program to trade Forex.Forex software is an important part of trading Forex, because it dictateshow easy and quickly you can interact with your brokerage to buy, selland trade Forex. If you are looking for great a great brokerage, here aresome tips on choosing a brokerage with great Forex software.For most people trading Forex, a minute or two can be an eternity. Ifyou need to make a trade, your Forex software should be extremely easyto operate and navigate quickly on almost any computer and help youmake the right trade according to your guidelines.Finding a Forex broker is also important because each broker’s tools andresources are different. You might find that a Forex broker has greatresources and information to analyze and spot trends in currencytrading. Finding a Forex broker is also important because you can pickand choose which software platform to use to make trades. You mightexperience that some brokers have awkward software platforms that canbe difficult to understand or to execute a trade on. Doing importantresearch in the beginning can help you find the right Forex broker tofacilitate your trades and research.Another great tip when finding a Forex broker is to see if the brokeroffers simulation trading. Simulation trading is a great way to use thebroker’s software and tools in real time without wagering real money. Soif you are interested in investing and trading in the foreign currencymarket, look at different Forex brokers for the best software,information and resources. Doing lots of research on brokers will helpfinding the right Forex broker to fit your needs.
  9. 9. Superior FX Signals. ComMost Forex brokerages have simulation trading environments, whereyou can learn to trade Forex, use their Forex software to do your tradingand wager credits instead of real money. Most Forex traders whenstarting out should take advantage of these simulation environments tolearn how to interact with their Forex software and trade the foreigncurrency markets.Almost all Forex brokerages offer many of the same features, howeverthe ease of using the software can make a big difference in how younavigate, employ important features and feel comfortable over alltrading Forex. So if you are looking into trading Forex, check outdifferent brokerages Forex software, it can have a definite impact onyour Forex trading.Forex charts come in many shapes and sizes and on numerous topics.One of the most important Forex charts are the real time trading chartsthat can help track your currencies of choice throughout the minute,hour or day.Most Forex brokers help you trade by providing you with up to thesecond, real time information in the form of Forex charts. Most Forexcharts are available on any major currency, exotic currencies and majormarket indices that can help you predict trends and performance. Notonly can you check out information fast and easy with charts, mostbrokers allow you many features that can help you view charts indifferent ways. For instance you can view a standard bar chart, dotchart, or even forest chart which can easily show you the up and downsof your specific focus.Many Forex brokerages also include daily commentary and informationon how to get the most out of your charts, by teaching you technicalanalysis and the ways to tease information from your Forex chart. If youwould like to trade Forex, look into using powerful tools such as Forexcharts in order to make educated investments.
  10. 10. Superior FX Signals. ComForex Margin TradingForex margin trading is a way of applying leverage to increase thepurchasing power of your money. Leverage simply means using a smallsum to control a much larger sum. This is possible because it is unlikelythat the value of a currency will change by more than a certainpercentage over a short time. So you can place a few hundred dollars inyour brokerage account to trade on the margin - the amount that youthink the price will fall. Your broker will in effect lend you the balance.Trading on margins is also known in stock and futures trading, butbecause of the special nature of currencies, you can get a lot moreleverage in the forex market. Depending on your brokers terms, you maybe able to control 50, 100 or even 200 times your account balance.This can lead to big profits if you are successful, but it can also mean biglosses if not. In general, the more leverage you use, the more risky yourtrading is.We can understand leverage and margins if we consider an example.Imagine that the current rate on the British pound to US dollar forexmarket is shown as GBP/USD 1.7100. So to buy one British pound youwould need $1.71. If you expected the value of the dollar to rise againstthe pound you might decide to sell enough pounds to buy $100,000. Ifyour broker used lots of $10,000 each, this would be 10 lots. Then youwould sit back and wait for the price to go up.A few days later you might find that the price had moved to GBP/USD1.6600. Sure enough, the dollar has risen and the pound is now worthonly $1.66. If you sell your dollars now and buy back into pounds, youwill have made a profit of 2.9% less the spread. 2.9% of $100,000 is$2,900, so that would be an excellent trade.
  11. 11. Superior FX Signals. ComBut most of us do not have $100,000 spare cash that we want to trade onthe currency exchange market. So here is where the principle of forexmargins comes into play.Since you are buying and selling different currencies at the same time,your own money only has to cover any loss that you might make if thedollar falls instead of rising. And you would put a stop loss into place tolimit that loss, so $1,000 might be all you needed to have in your accountto make this $100,000 purchase. Your broker guarantees the other$99,000.In fact many brokers now operate limited risk amounts where theaccount will automatically close out the trade if whatever funds you havein your account are lost. This prevents margin calls which can bedisastrous for a trader because they mean that you can lose more thanyou have. But with a forex limited risk account that is not a possibility.The brokers software that you use to control your account will not letyou lose more than your account balance.Using leverage in this way is so common in currency trading that you willsoon do it without even thinking about it. Still it is important to keep inmind the risks. Lower leverage is always safer and you may never want togo to the maximum forex margin that your broker would allow.
  12. 12. Superior FX Signals. ComThe Golden Secrets When 95% of traders lose money, what makes you think you can win? To see your chances of succeeding as a forex trader, here is a checklist for you to see and become one of the elite traders, who make tremendous long term profits. Following are a few ways to lose money. You may wish to change your mind immediately if you are thinking of trying any of them. Do this to avoid losses and continue your forex education! 1. Following a Forex Robot with Simulated Gains - You can apparently achieve success without any effort as promised by these. You are asked to accept their track records simulated going backwards. Your equity will get destroyed by trying them. 2. Day trading and Scalping - Due to the random short term volatility, simply doesnt work. Like the robots, even people selling these always have simulated track records. Many more of these all fall into the category of trying to find someone else to give you success. This does not work in forex markets. Apart from needing a trading edge, you also have to understand ways and reasons of it leading you to success. Let’s look at this in detail.Success Comes From WithinThe combination of a simple robust helping you to understand and tradewith discipline is what forex trading is about.You need to know what you are doing to trade with discipline. Thistranslates into having confidence, which you definitely dont get fromsomeone telling you what to do. You get confidence by from your ownknowledge and learning.
  13. 13. Superior FX Signals. ComDiscipline & LossesAs you have to keep executing trading signals through losing periods,discipline is hard. This has to be continued till you hit a home run, evenwhen the market is fooling you and taking your money.A Trading EdgeWhat separates out your forex trading system from the 95% losers isyour trading edge. You can answer what is your trading edge and howwill it help you beat the majority. You don’t have one if you dont knowwhat it is.Few succeed in the simple looking forex trading. These elements arepresent in the winners’ forex trading strategy:Using simple robust forex trading system- Having solid grounding in the basics of forex trading- Knowing exactly why their system will lead them to success- Having confidence and discipline to stick with their plan- Knowing only they are responsible for their Forex trading successYou have to stand alone, be confident of your actions and be disciplinedto follow your plan in forex trading.
  14. 14. Superior FX Signals. ComSuccess is in YOUR HandsSounds simple, however it is actually depends on your approach to forextrading - with the right mindset and getting right education. The traderbeats himself, rather than the market beating the trader in forex trading.Learn the basic fundamentals, get a suitable system, become confident,get an edge and be disciplined. Do all of these to enjoy currency tradingsuccess.When you sense a trading opportunity, the deciding factor is to knowexactly when to buy. Unfortunately this is the very point at which mostloose the plot by timing their entry levels improperly. But here are somebasic guidelines to help you at those crucial moments:Use of Support and ResistanceIf you try and use the fundamental rule of the share market – “buy low,sell high” – in Forex trading, you’ll actually lose money. To understandyou need to know how the system of support and resistance works.A support price is a historically tested price at which traders interveneand buy, so as to “support the market”. The more times this price istested, the more bankable the support price will be.Inversely, a resistance level is defined as a level at which “prices wereresisted from moving any higher”. Here too the more times this level istested, the more reliable it becomes.
  15. 15. Superior FX Signals. ComBuy Low and Sell High .. Doesn’t Work!The reason why this traditional wisdom is counterproductive in Forextrading is that if you actually wait for prices to fall, you’re going to end upmissing some of the best opportunities for making money. Consider:when a currency starts to pick up, what are the chances of its pullingback?What if it doesn’t and steadies out? If you keep waiting for a pullback,you could end up never getting in on the trade because most of thechanges in currencies occur from new market highs and without anypullback.So if you plan to focus your Forex trade strategy on waiting for an entryat support prices, wake up! You stand to loose out on the most profitabletrades. What your Forex trading strategy should target is rather, to “buyhigh and sell higher” – i.e. you should try and do quite the reverse ofwhat the general crowd is doing. Try and keep a lookout for anybreakthroughs in support and resistance, and then sell and buycorrespondingly.It Takes Guts - But It Makes Money!The policy of going against the crowd takes courage to practice. But thinkover the strategy with a cool head and you shall find it is the most logicalthing to do. How often have you heard of traders buying into support, butthe market continuing its freefall, breaking the support?And again, haven’t you heard tell of the price continuing to soar andnever getting to support, thereby making the trader miss the chance tocapitalize on the trend?So rather than be traditional and lose money, it is easier to adopt thebreakouts policy: you won’t be comfortable on entry but you will bemaking money. The trick is to break away from the pattern that thelosing majority sets and to do what is productive and logical consideringthe common and predictable response.
  16. 16. Superior FX Signals. ComFinancial Freedom Comes With a Price!For anybody who is planning to, or going about, starting a home-based-business like Forex Trading. There are some basic provisos and warningsthat come as fine print, and regarding which nothing much is ever saidby the prospective recruiters. But it is imperative that you give due heedto these basic truths.Firstly, remember that you will always have to make some sacrifices. Youwill be required to expend money, time and energy to get any businessoff the ground. Most recruiters misrepresent the opportunity when theyharp on the fact that anyone can do it, without mentioning the highfallout rate.This means that you would have to sacrifice some or much of the timethat you would otherwise spend doing the things you enjoy or in thecompany of friends and family. This will certainly produce stress andresentment and you need to be prepared in advance to handle theconsequences.You will moreover need the extra energy, over and above your normalquota given over to your regular job, family and household, to do thethings necessary for your business. So you need to tap into your extrareserves: develop your drive to succeed and keep yourself motivated bytelling yourself that all this will be worth your while in the long run.As for the financial sacrifices, there are means to gradually absorb theburden or even remove it completely, but upfront, you have to allocatesome money to set things moving.
  17. 17. Superior FX Signals. ComThe strategy is to be able to see these sacrifices as something positive andproductive. So you need to be optimistic and consider these asinvestments for your future and your independence. Consider theadvantages of prudence and fortitude: don’t be disheartened by initialfailures but learn from them. You can make your sacrifices and yourfailures the steeping stones to your success.Your success is the one that you make and give o yourself. You can thinkof it as your reward, as something which has already been made out inyour name, but your bit is to deserve it, to make it your own. So go outthere and seek out your success that is waiting for you to grab it. Thereshall be times when you will be sorely tested, but you will have to grityour teeth, clench your fists and grind it out. At times like these, simplyshut your mind to all the negative input, and press on keeping you goaland your vision in mind. All this is much easier said than done, but it alsothe long and difficult road all must travel to success.The first step you should take while managing your money is to have afinancial goal. The New Year is an ideal time that would help you to takesome important decisions. This is the time to review your financial goals.Your goals would help to go through with your finances.You should have something towards which you should work everyday.You should have a planned budget and use these goals that you have setas your map. These financial goals help to motivate you and encourageyou to save. Without a proper plan it is difficult to get anywhere so it isimportant to be well directed.In case you don’t have a financial goal you will never be able to achieve afinancial independence. You need to dot down what you need toaccomplish. Make a list of things you want. Your list may start with thefirst step of being debt free; it can be followed by starting a retirementaccount, saving enough to sponsor a home for oneself and other basicnecessities.
  18. 18. Superior FX Signals. ComLet not all these stop you from penning down all that you want and wishto fit in your financial planning. Incase you are longing for new furnitureor a trip to Europe then include them too. These are money goals that areachievable. Make sure you prioritize our wants. You should realize thatgetting out of debt is of top urgency whereas an Europe tour can wait.There are certain goals that we work on consistently, and there are somethat wait for certain goals to be accomplished before they can beexecuted. It is important to set time limitations for the fulfillment of thegoals.Let’s take for example that there may be about 25 years before you retireso you would want to be debt free in about next 6 years. Sensibly work onyour goals. Remember that you are always open to modify them.Your next step would be to break your goals into short term goals. Whenwe break a large task into smaller steps it helps us to accomplish thembetter. It makes the task easier.Consistently keep working towards your goal!
  19. 19. Superior FX Signals. ComIMPORTANT DISCLAIMERU.S. Government Required Disclaimer - Commodity Futures Trading CommissionFutures and Options trading has large potential rewards, but also large potentialrisks. You must be aware of the risks and be willing to accept them in order to investin the futures and options markets. Dont trade with money you cant afford to lose.This is neither a solicitation nor an offer to Buy/Sell futures or options. Norepresentation is being made that any account will or is likely to achieve profits orlosses similar to those discussed on this web site. The past performance of anytrading system or methodology is not necessarily indicative of future results.CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVECERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATEDRESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOTBEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THEIMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THATTHEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEINGMADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILARTO THOSE SHOWN.No representation is being made that any account will or is likely to achieve profits or lossessimilar to those shown. In fact, there are frequently sharp differences between hypotheticalperformance results and the actual results subsequently achieved by any particular tradingprogram. Hypothetical trading does not involve financial risk, and no hypothetical tradingrecord can completely account for the impact of financial risk in actual trading.All information on this website or any e-book purchased from this website is for educationalpurposes only and is not intended to provide financial advice. Any statement about profits orincome, expressed or implied, does not represent a guarantee. Your actual trading mayresult in losses as no trading system is guaranteed. You accept full responsibilities for youractions, trades, profit or loss, and agree to hold the authors/creators and any authorizeddistributors of this information harmless in any and all ways. The use of this system constitutesacceptance of our user agreement.