Wikipedia defines training as "the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies." They further note that training "forms the core of apprenticeships," and is "required for a trade, occupation or profession."
At the core of any success lies focused and meaningful training. Even gifted professional athletes rely on trainers to help acquire fundamental skills and knowledge and to maintain a sharp competitive edge. If you're serious about being a successful Forex trader, you need training.
We've provided some articles here that can help, but nothing can take the place of a proven Forex training course. When you're done with the articles, we invite you to consider joining us here at The Forex Trading Institute, where the training never stops
Friday, March 5, 2010
Thursday, March 4, 2010
Risk disclaimer (risk warning)
The risk disclaimer is meant to inform the user of the potential financial risks of engaging in foreign exchange trading. The transaction of such financial instruments known as forex, fx, or currency, and dealt on a valued basis known as 'spot' or 'forward', 'day trading' and 'option', can contain a substantial degree of risk. Before deciding to undertake such transactions with Easy-Forex LTD (hereinafter Easy-Forex), and indeed, any other firm offering similar services, a user should carefully evaluate whether his/her financial situation is appropriate for such transactions. Trading foreign exchange may result in a substantial or complete loss of funds and therefore should only be undertaken with risk capital. The definition of risk capital is funds that are not necessary to the survival or well being of the user. Easy-Forex strongly recommends that a user, who is considering trading foreign exchange products, read through all the main topics contained in the Easy-Forex website so that he/she may obtain a clear and accurate understanding of the risks inherent to fx trading. Opinions and analysis on potential expected market movements contained within the Easy-Forex website are not to be considered necessarily precise or timely, and due to the public nature of the Internet, Easy-Forex cannot at any time guarantee the accuracy of such information. Trading online, no matter how convenient or efficient it may be, does not necessarily reduce the risks associated with foreign exchange trading, and Easy-Forex™ does not accept any responsibility towards any customer, member or third party, acting on such information contained on the website as to the accuracy or delay of information such as quotations, news, and charts derived from quotations.
Wednesday, March 3, 2010
FOREX MINI : TIPS TO MAKE MONEY IN FOREX TRADING
Tip 1 .
Embrace Changeability and Risk With a Smile
Embrace Changeability and Risk With a Smile
Forex systems have instability.
If you cannot manage and calculate your risk, then don't ever think about trading in Forex. Many traders back away from forex because of this ( why do you even traded in the first place?). But taking manageable risks has its rewards.
It's just simple, you know what your losing if ever it doesn't work out, yet what you gain is unpredictable but sure is high! That is what I call excitement, my friend.
To a well-educated Forex trader, this is something you shouldn't be afraid of, might as well embrace it.
If you cannot manage and calculate your risk, then don't ever think about trading in Forex. Many traders back away from forex because of this ( why do you even traded in the first place?). But taking manageable risks has its rewards.
It's just simple, you know what your losing if ever it doesn't work out, yet what you gain is unpredictable but sure is high! That is what I call excitement, my friend.
To a well-educated Forex trader, this is something you shouldn't be afraid of, might as well embrace it.
Tip 2.
Trade Less, gain more
Trade Less, gain more
Most traders think that if they don't trade, another door has closed, or miss some move. The tendency, they trade frequently. Most of the trades that come big come a few times in a year. Focus on the trades that make the really big gains. Be alert, and informed.
Tip 3.
Diversify is a no-no
Most Investors accept the fact that diversification can make money fast - in reality it does exactly the opposite.
Diversify is a no-no
Most Investors accept the fact that diversification can make money fast - in reality it does exactly the opposite.
Tip 4.
Money and Risk Management
This article has been concentrating on the Big gains, because this is your money, so every penny should be controlled, this is where money management kicks in.
Control your risks, but increase your chances of success:
Give yourself staying power by buying options at or in the money, this prevents you from getting stopped out. Many traders lose not by the market direction, but because they were stopped out by a instable move, and options will give you staying power.
Keep your stop in its original position - until the move is well in profit, before moving it up.
Trading fast and selectively - have the courage to trade when you feel it is good. and enjoy the cash.
Tip 5.
Compound growth has its benefits
The way to make money fast in forex, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over a million dollars, in under 10 years.
Break the norm, and gain more. Follow some of these tips and make your way into the big gains!
Sunday, February 28, 2010
FOREX BASICS
To start getting income from foreign exchange market (Forex), you don’t need to have any financial experience. You just need to find your way in the multitude of possibilities offered for those looking for profit from national currencies rate variations. The point of classic Forex trade, meant to get a quick income, is simple (which hardly differs from other markets): you have to sell on higher price what you’ve bought on lower price.
But to get a grip on currency rates, you need more than simple mathematics. First thing, you have to learn all definitions: Besides the correct meaning of terms “currency” and “rate”, you need to know what “quotation” means, along with “currency pair” (which consists of base and counter currencies). You need to know what are “point”, “spread”, “trend”, “position” etc. Every action on Forex market is preceded by an analysis. Depending on its functions, the analysis can be fundamental (when the economic dynamics of a country are being studied thoroughly, along with prognoses on its changes), or technical (when we apply a mathematic approach to the graphs of currency rate fluctuations).
The trade on Forex market goes on twenty-four hours a day. Saturday and Sunday are traditionally considered days of rest. The same as for all the other markets, work on Forex market uses a certain set of strategies, methods and techniques. There are rules you have to try and follow, and there are things you shouldn’t do. Every market session (Asian, European and American) has its own law and established traditions, which you also have to learn about.
And finally, for the trade on Forex market you need to use certain tools (software, papers etc.) without handling which the theoretical knowledge will be useless
But to get a grip on currency rates, you need more than simple mathematics. First thing, you have to learn all definitions: Besides the correct meaning of terms “currency” and “rate”, you need to know what “quotation” means, along with “currency pair” (which consists of base and counter currencies). You need to know what are “point”, “spread”, “trend”, “position” etc. Every action on Forex market is preceded by an analysis. Depending on its functions, the analysis can be fundamental (when the economic dynamics of a country are being studied thoroughly, along with prognoses on its changes), or technical (when we apply a mathematic approach to the graphs of currency rate fluctuations).
The trade on Forex market goes on twenty-four hours a day. Saturday and Sunday are traditionally considered days of rest. The same as for all the other markets, work on Forex market uses a certain set of strategies, methods and techniques. There are rules you have to try and follow, and there are things you shouldn’t do. Every market session (Asian, European and American) has its own law and established traditions, which you also have to learn about.
And finally, for the trade on Forex market you need to use certain tools (software, papers etc.) without handling which the theoretical knowledge will be useless
FOREX MARKET
Forex is an economic term, short for the foreign exchange market, the largest world market by today. This market is the most liquid and unpredictable of all, not only because of its geographical spread and the variety of persons and organizations working here, but also because of a huge amount of factors affecting it. One also has to remember that Forex market is not a stock exchange. It does not have any trade institutions or areas.
The foreign exchange market, now known by the name of Forex, started its functioning in 1971, in response to forming dependencies in national currency rates. On March, 1973, the fixed rates system was replaced by more flexible system of floating rates. Because of this, the importers and exporters (with the financial institutions concerning them) had to take their places on the newly established market. The role of central banks much increased: they now had the possibility to affect currency rates, thus influencing the common economy of the state.
Forex market is based on the system of various institutions, which are various central banks, investment banks, banks of commerce, private dealer and broker networks, transnational corporations, pension funds, insurance companies etc. Like every international market, Forex always corrects itself, modifying rates the most liquid currencies the way they correspond the current balance of demand and supply.
The most popular possibility of getting an income by trading on Forex market is really called a marginal trade based on speculation on the fluctuations of liquid currency rates. This kind of activity becomes available for a private person in collaboration with a bank of commerce, a broker or a dealing center providing such services. There are many books and articles on Forex market, as well as the trade on it.
The foreign exchange market, now known by the name of Forex, started its functioning in 1971, in response to forming dependencies in national currency rates. On March, 1973, the fixed rates system was replaced by more flexible system of floating rates. Because of this, the importers and exporters (with the financial institutions concerning them) had to take their places on the newly established market. The role of central banks much increased: they now had the possibility to affect currency rates, thus influencing the common economy of the state.
Forex market is based on the system of various institutions, which are various central banks, investment banks, banks of commerce, private dealer and broker networks, transnational corporations, pension funds, insurance companies etc. Like every international market, Forex always corrects itself, modifying rates the most liquid currencies the way they correspond the current balance of demand and supply.
The most popular possibility of getting an income by trading on Forex market is really called a marginal trade based on speculation on the fluctuations of liquid currency rates. This kind of activity becomes available for a private person in collaboration with a bank of commerce, a broker or a dealing center providing such services. There are many books and articles on Forex market, as well as the trade on it.
Friday, February 26, 2010
Coveted position in forex, gold
In its efforts to improve foreign exchange reserves, India has now become the 10th largest gold-holding nation in the world. It has also emerged as the fourth-largest foreign exchange reserves holder only after China, Japan and Russia, says the Economic Survey 2009-10.
“In September last, the International Monetary Fund decided to sell 403.3 tonnes of gold as a central element of its ‘New Income Model' and to increase its resources for lending to low-income countries.
“Consequent of this, the Reserve Bank of India concluded the purchase of 200 tonnes of gold from the IMF at the cost of $6.7 billion as part of its foreign exchange reserves management operation,” the survey says.
“With this purchase, gold holdings in the country's foreign exchange reserves have increased from 357.7 tonnes to 557.7 tonnes, which is about 6 per cent of the reserves. Post-purchase, India has become the 10th largest official gold-holding country in the world,” it adds.
In another interesting development, India is ranked fourth in terms of foreign exchange reserves at $283.5 billion, only behind China ($2,399.2 billion), Japan ($1,049.4 billion) and Russia ($439 billion), says the Economic Survey.
Dollar dips on US economic data, easing Greece fears
NEW YORK - The dollar weakened against other major currencies on mixed US economic data and easing fears about Greece's fiscal crisis.
The euro traded at 1.3626 dollars at 2200 GMT in New York, up from 1.3546 late Thursday.
The dollar also weakened against the Japanese currency, sliding to 88.81 yen from 89.09 yen.
The euro firmed against the dollar as market fears about Greece's sovereign debt crisis faded slightly following reports of a possible helping hand from a German bank.
The modest improvement in risk sentiment weighed on the dollar, typically considered a safe-haven currency in times of uncertainty.
"We're probably seeing some profit taking" by investors who had speculated on a decline in the euro, said Vassili Serebriakov of Wells Fargo Bank, who pointed out the action could have been stepped up as the month draws to an end.
"The move appears corrective at this point; the market has not changed its mind on the euro," he said.
The analyst said the European single currency found support from "press reports that a German state-controlled bank may be buying Greek debt, and helping Greece with its debt."
The dollar, meanwhile, faltered as the market digested mixed US economic reports.
Fourth-quarter gross domestic product growth was revised upward to 5.9 percent from 5.7 percent, the Commerce Department said, in a report signaling positive momentum entering 2010.
The slight upward revision to GDP -- a broad measure of the country's goods and services output -- surprised most analysts who had expected no change in the first estimate.
But Kathy Lien at Global Forex Trading pointed out negatives in the GDP report.
"For GDP, personal consumption was revised down along with the price index," she said. "This is the story of the US economy -- growth with pockets of weakness."
A separate report Friday highlighted the persistent troubles in the housing market.
Sales of existing homes, by far the largest share of the market, fell 7.2 percent in January but were 11.5 percent higher than a year ago, the National Association of Realtors said.
"Under normal market conditions, a positive GDP report would trump a negative existing-home sales report. The fact that it didn't today reflects the extent to which the market has become bearish over the past several months," said Michael Woolfolk at Bank of New York Mellon.
Nick Bennenbroek, head of currency strategy at Wells Fargo Bank, said the dollar's weakness Friday and its mixed trading over the course of the week reflected an indecisive week for the forex markets.
"We suspect that corrective currency activity will be brief however. Markets will continue to anticipate the next Greek government bond issue as a key signal for the euro's direction, while next Friday sees the always important US jobs report," he said.
Over the medium term, he said, the bank's outlook remains for a firmer dollar against the majors. "We would use periods of dollar weakness as a buying opportunity
The euro traded at 1.3626 dollars at 2200 GMT in New York, up from 1.3546 late Thursday.
The dollar also weakened against the Japanese currency, sliding to 88.81 yen from 89.09 yen.
The euro firmed against the dollar as market fears about Greece's sovereign debt crisis faded slightly following reports of a possible helping hand from a German bank.
The modest improvement in risk sentiment weighed on the dollar, typically considered a safe-haven currency in times of uncertainty.
"We're probably seeing some profit taking" by investors who had speculated on a decline in the euro, said Vassili Serebriakov of Wells Fargo Bank, who pointed out the action could have been stepped up as the month draws to an end.
"The move appears corrective at this point; the market has not changed its mind on the euro," he said.
The analyst said the European single currency found support from "press reports that a German state-controlled bank may be buying Greek debt, and helping Greece with its debt."
The dollar, meanwhile, faltered as the market digested mixed US economic reports.
Fourth-quarter gross domestic product growth was revised upward to 5.9 percent from 5.7 percent, the Commerce Department said, in a report signaling positive momentum entering 2010.
The slight upward revision to GDP -- a broad measure of the country's goods and services output -- surprised most analysts who had expected no change in the first estimate.
But Kathy Lien at Global Forex Trading pointed out negatives in the GDP report.
"For GDP, personal consumption was revised down along with the price index," she said. "This is the story of the US economy -- growth with pockets of weakness."
A separate report Friday highlighted the persistent troubles in the housing market.
Sales of existing homes, by far the largest share of the market, fell 7.2 percent in January but were 11.5 percent higher than a year ago, the National Association of Realtors said.
"Under normal market conditions, a positive GDP report would trump a negative existing-home sales report. The fact that it didn't today reflects the extent to which the market has become bearish over the past several months," said Michael Woolfolk at Bank of New York Mellon.
Nick Bennenbroek, head of currency strategy at Wells Fargo Bank, said the dollar's weakness Friday and its mixed trading over the course of the week reflected an indecisive week for the forex markets.
"We suspect that corrective currency activity will be brief however. Markets will continue to anticipate the next Greek government bond issue as a key signal for the euro's direction, while next Friday sees the always important US jobs report," he said.
Over the medium term, he said, the bank's outlook remains for a firmer dollar against the majors. "We would use periods of dollar weakness as a buying opportunity
Forex trading sends dollar and yen lower
The dollar and the yen have both fallen during forex trading today (February 26th), as investors turned their attention to higher-yielding assets amid hope that the global economy is showing signs of recovery.
Bloomberg reports that the greenback was down to $1.3578 per euro at 06:42 GMT in London, having fallen against 14 of its 16 global counterparts.
The yen dropped to 89.32 against the dollar and 121.30 versus the euro, as demand for other currencies was boosted by increases on the Asian stock markets and news that the Reserve Bank of Australia saw loans offered by banks jump 0.4 per cent in January.
Barclays' Masafumi Yamamoto observed that this will cause the Australian dollar to "gain versus the dollar and the yen".
The pound is another currency that has fallen in value this week, dipping to a nine-month low against the dollar due to concerns that the recovery of the UK's economic is not progressing at the rate than had been forecast.
Bloomberg reports that the greenback was down to $1.3578 per euro at 06:42 GMT in London, having fallen against 14 of its 16 global counterparts.
The yen dropped to 89.32 against the dollar and 121.30 versus the euro, as demand for other currencies was boosted by increases on the Asian stock markets and news that the Reserve Bank of Australia saw loans offered by banks jump 0.4 per cent in January.
Barclays' Masafumi Yamamoto observed that this will cause the Australian dollar to "gain versus the dollar and the yen".
The pound is another currency that has fallen in value this week, dipping to a nine-month low against the dollar due to concerns that the recovery of the UK's economic is not progressing at the rate than had been forecast.
EURUSD Weekly Summary: False breakout or further upside correction?
The EURUSD made another indecisive movement this week. Price attempted to push higher, topped at 1.3691 on Tuesday but still closed below 1.3650 on Friday indicating limited upside corrective pressure. On daily chart below we can see that price slipped above the minor bearish channel but closed lower around the upper line of the minor
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