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Forex insiders, Trading Secrets That You Should Know


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Forex Insiders, trading secrets that you should know.

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Forex insiders, Trading Secrets That You Should Know

  1. 1. Forex Insiders Trading Secrets That YOU Should Know! all rights reserved
  2. 2. Trading Forex Market For a beginner forex currency trading may seem to be a whole new world but in fact the basics are quite easy to learn. You just need to understand the buzz words and trading terms and grasp a basic understanding of how the markets work. Making big money in a short time is what forex currency trading is all about! It is possible for investors to make a lot of money very fast because the rates of exchange on the foreign market can rise and fall quickly. This means of course that it is risky and there is also a chance of losing a lot, just like most things in life that have the potential of big returns. As you will know if you have ever exchanged currency for a vacation, the rates are constantly changing. For example you may change $100 into another currency planning to travel, and then find that you do not need it and change it back. The rate will probably have changed in the meantime and 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. Most transactions these days are handled online. In many ways it is not so different from stock trading. There is the same potential to trade in margins where a small balance held by your broker can control much larger deals. One difference from stock exchange trading is that forex traders are not limited to dealing in their own country. You can trade any two currencies regardless of where you live. This also means that the market is international. Because of time zone differences, it is open 24 hours a day from Monday morning in Australia to Friday afternoon in New York. Each currency is represented by 3 letters: USD for the US dollar, GBP for the British pound, EUR for the Euro, JPY for the Japanese Yen, CHF for
  3. 3. the Swiss franc, CAD for the Canadian dollar, AUD for the Australian dollar etc. The exchange rate between two currencies may be expressed like this: USD/CHF 1.14. This means that to buy one US dollar you will need 1.14 Swiss francs. If you want to start out in forex trading you will need to look for a broker or investment management company that you trust. It is worth shopping around and checking online forums for recommendations. Check out how long the company has been in business and what your rights and liabilities will be. Read all of the fine print. You will probably also want to use a bot to do your trading for you. This is automated forex trading software that can trade 24 hours a day according to rules that you set for it. There is usually a demo option so that you can test out the whole system for a while before you let it trade with real money. There are many forex robots on the market and most of them come with full instructions for beginner forex currency trading. The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often 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 happen fast for any investor from any country. The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
  4. 4. The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. 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 that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market. If you are interested in trading Forex, you should look into what each broker offers in Forex trading features. There are plenty of brokerage houses that you can trade Forex from and each of them offer different Forex trading features. Forex trading features can be an integral part of how you choose to trade, do research and invest in Forex. Forex stands for the foreign exchange market and the Forex market is the largest financial market in the world with 1.9 trillion dollars worth of trades each day. Forex doesn’t have a central market where trading takes place, so Forex continues 24 hours a day no matter where you live. Many day traders and small investment firms trade Forex because of its ease of trading and great brokerage houses that make available to their members great Forex trading features. If you are looking for a Forex Broker, here are some great Forex trading features that you may find; 24 hours customer service, no slippage on market orders, leverage, stop loss and limit orders. 24 hours customer service is a must have in any trading platform, and most Forex brokers usually do a great job delivering great answers to
  5. 5. your service and technical needs. Slippage on market orders means that when you trade in real time, you lock in your market order and that you pay the price quoted or bid for. Leverage is a financial tool where you can bet many times the amount of money that you have in your account. Many brokers allow you to leverage up to 200 times. If you have $1,000 in your account with a buying leverage of 10, you can trade $10k. Stop loss and limit orders means that you can customize your buying and trading to buy only at a certain price and sell when a stock drops or rises to a certain price. So take a look at the above Forex trading features for a great way to trade Forex.
  6. 6. Forex for All If you are a beginner trader or just curious, you will be happy to know that there is tons of information on Forex. Forex stands for foreign exchange markets and the Forex market is the largest financial market in the world with close to 2 trillion dollars traded each day. Forex trades the world’s currencies and is perfect for day traders and investors from home that would like to trade, because there is no central market and you 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 grown throughout the years and is now a powerhouse especially on the web. Many web developers and brokers have become interested in Forex and have made it enticing to investors due to the wealth of information available on all topics of trading Forex. You can also find information on Forex at web forums and blogs. Forex forums and blogs are an excellent way to learn about the Forex industry as well as trading Forex. You can easily talk to many people about the tools they use, brokers that are available and read commentary by expert traders on what trends are becoming visible. You can also find information on Forex off line as well. There are courses taught by instructors, books and materials that you can buy in books stores or lend at libraries and even videos that can show you special strategies for trading Forex. So if you are looking for great information on Forex, check out the above resources. There are thousands of Forex sites, while many of them are junk, there are a few that truly offer a great resource for trading Forex. Forex stands for foreign exchange market, which happens to be the world’s largest market with close to 2 trillion dollars in trades each day. Many people love Forex, because there is no central market location, so Forex can be traded 24 hours each day from any location in the world.
  7. 7. Most people that trade Forex, sign up with a broker and use their broker’s sites for trading, analysis and certain resources, but just because you use a certain broker, shouldn’t limit you to the amount of Forex sites that you visit. There are many great Forex forums that you can visit daily for great opinions, new trends and to ask questions Forex forums are one of the leading Forex sites visited. For people that are interested in crunching data and analysis, there are plenty of Forex sites that host huge reservoirs of data for your number crunching needs. You can also visit Forex sites that have many tutorials on trading Forex and using certain trading tools. There are even tutorials on learning how to analyze data and howto read charts. So if you are into Forex trading, check out the above categories of Forex sites that can help you be a better trader. There are many people that sign up to trade Forex that don’t understand or take the time to learn how and why to trade Forex. There are many risks involved in trading any kind of asset, whether it is stocks, bonds or currencies. If you are interested in trading, make sure you understand Forex risks. One of the biggest Forex risks is a leveraged buy. Some Forex brokerages allow you to hold a certain amount of money in your account but leverage that amount to up to 200 times its worth. While this can be good if you are on the winning side of a trade, this can be devastating if you lose your entire accounts worth plus many times more. Many Forex brokers have special features that can limit your risks such as stop loss and limit orders and no negative balances. If you are interested in trading Forex, before you start to trade, learn and understand the Forex risks involved.
  8. 8. Trading Tools Most Forex brokerages have their own software program to trade Forex. Forex software is an important part of trading Forex, because it dictates how easy and quickly you can interact with your brokerage to buy, sell and trade Forex. If you are looking for great a great brokerage, here are some tips on choosing a brokerage with great Forex software. For most people trading Forex, a minute or two can be an eternity. If you need to make a trade, your Forex software should be extremely easy to operate and navigate quickly on almost any computer and help you make the right trade according to your guidelines. Finding a Forex broker is also important because each broker’s tools and resources are different. You might find that a Forex broker has great resources and information to analyze and spot trends in currency trading. Finding a Forex broker is also important because you can pick and choose which software platform to use to make trades. You might experience that some brokers have awkward software platforms that can be difficult to understand or to execute a trade on. Doing important research in the beginning can help you find the right Forex broker to facilitate your trades and research. Another great tip when finding a Forex broker is to see if the broker offers simulation trading. Simulation trading is a great way to use the broker’s software and tools in real time without wagering real money. So if you are interested in investing and trading in the foreign currency market, look at different Forex brokers for the best software, information and resources. Doing lots of research on brokers will help finding the right Forex broker to fit your needs.
  9. 9. Most Forex brokerages have simulation trading environments, where you can learn to trade Forex, use their Forex software to do your trading and wager credits instead of real money. Most Forex traders when starting out should take advantage of these simulation environments to learn how to interact with their Forex software and trade the foreign currency markets. Almost all Forex brokerages offer many of the same features, however the ease of using the software can make a big difference in how you navigate, employ important features and feel comfortable over all trading Forex. So if you are looking into trading Forex, check out different brokerages Forex software, it can have a definite impact on your 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 charts that 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 the second, real time information in the form of Forex charts. Most Forex charts are available on any major currency, exotic currencies and major market indices that can help you predict trends and performance. Not only can you check out information fast and easy with charts, most brokers allowyou many features that can help you view charts in different ways. For instance you can view a standard bar chart, dot chart, or even forest chart which can easily show you the up and downs of your specific focus. Many Forex brokerages also include daily commentary and information on how to get the most out of your charts, by teaching you technical analysis and the ways to tease information from your Forex chart. If you would like to trade Forex, look into using powerful tools such as Forex charts in order to make educated investments.
  10. 10. Forex Margin Trading Forex margin trading is a way of applying leverage to increase the purchasing power of your money. Leverage simply means using a small sum to control a much larger sum. This is possible because it is unlikely that the value of a currency will change by more than a certain percentage over a short time. So you can place a few hundred dollars in your brokerage account to trade on the margin - the amount that you think the price will fall. Your broker will in effect lend you the balance. Trading on margins is also known in stock and futures trading, but because of the special nature of currencies, you can get a lot more leverage in the forex market. Depending on your broker's terms, you may be 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 big losses if not. In general, the more leverage you use, the more risky your trading is. We can understand leverage and margins if we consider an example. Imagine that the current rate on the British pound to US dollar forex market is shown as GBP/USD 1.7100. So to buy one British pound you would need $1.71. If you expected the value of the dollar to rise against the pound you might decide to sell enough pounds to buy $100,000. If your broker used lots of $10,000 each, this would be 10 lots. Then you would sit back and wait for the price to go up. A few days later you might find that the price had moved to GBP/USD 1.6600. Sure enough, the dollar has risen and the pound is now worth only $1.66. If you sell your dollars now and buy back into pounds, you will 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. But most of us do not have $100,000 spare cash that we want to trade on the currency exchange market. So here is where the principle of forex margins 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 the dollar falls instead of rising. And you would put a stop loss into place to limit that loss, so $1,000 might be all you needed to have in your account to make this $100,000 purchase. Your broker guarantees the other $99,000. In fact many brokers now operate limited risk amounts where the account will automatically close out the trade if whatever funds you have in your account are lost. This prevents margin calls which can be disastrous for a trader because they mean that you can lose more than you have. But with a forex limited risk account that is not a possibility. The broker's software that you use to control your account will not let you lose more than your account balance. Using leverage in this way is so common in currency trading that you will soon do it without even thinking about it. Still it is important to keep in mind the risks. Lower leverage is always safer and you may never want to go to the maximum forex margin that your broker would allow.
  12. 12. The 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 doesn't 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 Within The combination of a simple robust helping you to understand and trade with discipline is what forex trading is about. You need to know what you are doing to trade with discipline. This translates into having confidence, which you definitely don't get from someone telling you what to do. You get confidence by from your own knowledge and learning.
  13. 13. Discipline & Losses As you have to keep executing trading signals through losing periods, discipline is hard. This has to be continued till you hit a home run, even when the market is fooling you and taking your money. A Trading Edge What separates out your forex trading system from the 95% losers is your trading edge. You can answer what is your trading edge and how will it help you beat the majority. You don’t have one if you don't know what it is. Few succeed in the simple looking forex trading. These elements are present 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 success You have to stand alone, be confident of your actions and be disciplined to follow your plan in forex trading.
  14. 14. Success is in YOUR Hands Sounds simple, however it is actually depends on your approach to forex trading - with the right mindset and getting right education. The trader beats 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 trading success. When you sense a trading opportunity, the deciding factor is to know exactly when to buy. Unfortunately this is the very point at which most loose the plot by timing their entry levels improperly. But here are some basic guidelines to help you at those crucial moments: Use of Support and Resistance If you try and use the fundamental rule of the share market – “buy low, sell high” – in Forex trading, you’ll actually lose money. To understand you need to know how the system of support and resistance works. A support price is a historically tested price at which traders intervene and buy, so as to “support the market”. The more times this price is tested, the more bankable the support price will be. Inversely, a resistance level is defined as a level at which “prices were resisted from moving any higher”. Here too the more times this level is tested, the more reliable it becomes.
  15. 15. Buy Low and Sell High .. Doesn’t Work! The reason why this traditional wisdom is counterproductive in Forex trading is that if you actually wait for prices to fall, you’re going to end up missing some of the best opportunities for making money. Consider: when a currency starts to pick up, what are the chances of its pulling back? 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 the changes in currencies occur from new market highs and without any pullback. So if you plan to focus your Forex trade strategy on waiting for an entry at support prices, wake up! You stand to loose out on the most profitable trades. What your Forex trading strategy should target is rather, to “buy high and sell higher” – i.e. you should try and do quite the reverse of what the general crowd is doing. Try and keep a lookout for any breakthroughs in support and resistance, and then sell and buy correspondingly. It Takes Guts - But It Makes Money! The policy of going against the crowd takes courage to practice. But think over the strategy with a cool head and you shall find it is the most logical thing to do. How often have you heard of traders buying into support, but the market continuing its freefall, breaking the support? And again, haven’t you heard tell of the price continuing to soar and never getting to support, thereby making the trader miss the chance to capitalize on the trend? So rather than be traditional and lose money, it is easier to adopt the breakouts policy: you won’t be comfortable on entry but you will be making money. The trick is to break away from the pattern that the losing majority sets and to do what is productive and logical considering the common and predictable response.
  16. 16. Financial 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 warnings that come as fine print, and regarding which nothing much is ever said by the prospective recruiters. But it is imperative that you give due heed to these basic truths. Firstly, remember that you will always have to make some sacrifices. You will be required to expend money, time and energy to get any business off the ground. Most recruiters misrepresent the opportunity when they harp on the fact that anyone can do it, without mentioning the high fallout rate. This means that you would have to sacrifice some or much of the time that you would otherwise spend doing the things you enjoy or in the company of friends and family. This will certainly produce stress and resentment and you need to be prepared in advance to handle the consequences. You will moreover need the extra energy, over and above your normal quota given over to your regular job, family and household, to do the things necessary for your business. So you need to tap into your extra reserves: develop your drive to succeed and keep yourself motivated by telling yourself that all this will be worth your while in the long run. As for the financial sacrifices, there are means to gradually absorb the burden or even remove it completely, but upfront, you have to allocate some money to set things moving.
  17. 17. The strategy is to be able to see these sacrifices as something positive and productive. So you need to be optimistic and consider these as investments for your future and your independence. Consider the advantages of prudence and fortitude: don’t be disheartened by initial failures but learn from them. You can make your sacrifices and your failures the steeping stones to your success. Your success is the one that you make and give o yourself. You can think of it as your reward, as something which has already been made out in your name, but your bit is to deserve it, to make it your own. So go out there and seek out your success that is waiting for you to grab it. There shall be times when you will be sorely tested, but you will have to grit your teeth, clench your fists and grind it out. At times like these, simply shut your mind to all the negative input, and press on keeping you goal and your vision in mind. All this is much easier said than done, but it also the long and difficult road all must travel to success. The first step you should take while managing your money is to have a financial goal. The New Year is an ideal time that would help you to take some 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 set as your map. These financial goals help to motivate you and encourage you to save. Without a proper plan it is difficult to get anywhere so it is important to be well directed. In case you don’t have a financial goal you will never be able to achieve a financial independence. You need to dot down what you need to accomplish. Make a list of things you want. Your list may start with the first step of being debt free; it can be followed by starting a retirement account, saving enough to sponsor a home for oneself and other basic necessities.
  18. 18. Let not all these stop you from penning down all that you want and wish to fit in your financial planning. Incase you are longing for new furniture or a trip to Europe then include them too. These are money goals that are achievable. Make sure you prioritize our wants. You should realize that getting 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 some that wait for certain goals to be accomplished before they can be executed. It is important to set time limitations for the fulfillment of the goals. Let’s take for example that there may be about 25 years before you retire so you would want to be debt free in about next 6 years. Sensibly work on your goals. Remember that you are always open to modify them. Your next step would be to break your goals into short term goals. When we break a large task into smaller steps it helps us to accomplish them better. It makes the task easier. Consistently keep working towards your goal! MASTER TRADER
  19. 19. IMPORTANT DISCLAIMER U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. Hypothetical trading does not involve financial risk, and no hypothetical trading record 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 educational purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold the authors/creators and any authorized distributors of this information harmless in any and all ways. The use of this system constitutes acceptance of our user agreement.