The acquisition or sale of one national currency in exchange for another nation’s currency, usually conducted in a market setting is called as the Foreign Exchange Trading. The concept of Foreign Trading makes it possible for clients to do international transactions.
It can be mainly used during imports and exports and the movement of capital between countries. The value of one foreign currency in relation to another is defined by the exchange rate during the Foreign Exchange Trading.
Foreign Trading is also known as the FX Trading. Here the clients are able to hedge against, or speculate upon, changes aspect element within the exchange rate of two currencies. Foreign Exchange Trading services provide a chance for clients to trade FX.
Exchange Trading is done on the magnificent excellent foreign exchange market. In Foreign Exchange Trading the methods and instruments used to adjust the payment of debts between two nations that make use of different currency systems. A nation’s balance of payments has an important effect resting on the magnificent exchange rate of its currency.
Bills of trade, drafts, checks, and telegraphic orders are the principal means of payment in international transactions of the Foreign Trading. The rate of exchange is the price in local currency of one unit of foreign currency and is determined by the comparative supply and demand of the currencies resource within the foreign exchange market.
Buying or promoting foreign currency in order to profit from rapid changes trait within the rate of exchange is known as an arbitrage in Foreign Exchange Trading.
Demand of Foreign Exchange Trading
The chief demand for Exchange Trading within a country comes from importers of foreign goods, purchasers of foreign securities, government agencies buying goods and services abroad, and travelers.
Foreign Exchange Trading is one of the nascent market opportunities when it comes to the individual investor. Until recently only large traders and multi conglomerate companies were able to participate within the foreign exchange markets.
Now with the internet and many courses both online as well as on DVD, Videos and hard cover books there are a wonderful many resources available to the individual investor to help them become currency traders and earn incomes element within the six figure range.
There are numerous books available relating to Foreign Trading that will help the novice investor get started, explaining some of the basic strategies, even explaining all of the jargon that is new daily by currency traders all over the globe.
Other books to understand the Foreign Exchange Trading may assist the more intuitive and seasoned investor who is expecting to receive a more technical analysis of various currency trading strategies and markets.
There are a number of excellent courses available by the many supporting comments that these courses have received from many of their participants. They come from just about every repeated level of investor including the beginners as well as the more experienced investors.
Many of these courses for Foreign Trading include a variety of books; pamphlets and some will even include videos of various investment specialists providing you with their hands on training experience on Foreign Exchange Trading.
The e-books that are available to understand the Foreign Exchange more efficiently can typically be downloaded over the Internet, so you can most insolently begin almost as soon as you have paid your fees and downloaded the apropos files.
So no need of waiting for snail mail deliveries and you can begin immediately Foreign Exchange Trading soon. Some of the e-books and courses related to Foreign Trading will also include discounts and additional benefits when you sign up for an e-book or a course.
This combination can be of brilliant value when compared to some of the more long-established methods of learning the business of Foreign Exchange Trading.
Foreign Exchange rates refer to the amount of currency you obtain when you buy one currency with another currency. That is, it is most important to understand if you are traveling to England. In general, Foreign Exchange Trading if you or someone that understands and has expert knowledge live in approval of the United States, you then carry dollars.
You then ought to change these dollars for British Pounds and review the foreign currency rates to see how many US dollars it could take to buy one British Pound. Similarly, it would apply to every single country you might visit. Importers and exporters of goods are also concerned about the foreign currency rates.
The traders in Foreign Trading need foreign currency to make their business transactions. A buyer in England of United States goods watches the foreign currency rates to try and obtain a better price for the United States dollars they need to buy the United States goods.
During the Foreign Exchange Trading most foreign currency rates change all the time. The rates that do change on a daily or even hourly basis are called as the floating currencies. This means that market forces determine the price.
If more dollars are being bought and more British Pounds are being sold, the United States dollar then increases in value.
Thus, Foreign Exchange Trading should always be done keeping an alert eye on the Foreign Exchange Market.
Tuesday, September 2, 2008
There Are Big Bucks In Knowing Foreign Exchange Trading!
The acquisition or sale of one national currency in exchange for another nation’s currency, usually conducted in a market setting is called as the Foreign Exchange Trading. The concept of Foreign Trading makes it possible for clients to do international transactions.
It can be mainly used during imports and exports and the movement of capital between countries. The value of one foreign currency in relation to another is defined by the exchange rate during the Foreign Exchange Trading.
Foreign Trading is also known as the FX Trading. Here the clients are able to hedge against, or speculate upon, changes aspect element within the exchange rate of two currencies. Foreign Exchange Trading services provide a chance for clients to trade FX.
Exchange Trading is done on the magnificent excellent foreign exchange market. In Foreign Exchange Trading the methods and instruments used to adjust the payment of debts between two nations that make use of different currency systems. A nation’s balance of payments has an important effect resting on the magnificent exchange rate of its currency.
Bills of trade, drafts, checks, and telegraphic orders are the principal means of payment in international transactions of the Foreign Trading. The rate of exchange is the price in local currency of one unit of foreign currency and is determined by the comparative supply and demand of the currencies resource within the foreign exchange market.
Buying or promoting foreign currency in order to profit from rapid changes trait within the rate of exchange is known as an arbitrage in Foreign Exchange Trading.
Demand of Foreign Exchange Trading
The chief demand for Exchange Trading within a country comes from importers of foreign goods, purchasers of foreign securities, government agencies buying goods and services abroad, and travelers.
Foreign Exchange Trading is one of the nascent market opportunities when it comes to the individual investor. Until recently only large traders and multi conglomerate companies were able to participate within the foreign exchange markets.
Now with the internet and many courses both online as well as on DVD, Videos and hard cover books there are a wonderful many resources available to the individual investor to help them become currency traders and earn incomes element within the six figure range.
There are numerous books available relating to Foreign Trading that will help the novice investor get started, explaining some of the basic strategies, even explaining all of the jargon that is new daily by currency traders all over the globe.
Other books to understand the Foreign Exchange Trading may assist the more intuitive and seasoned investor who is expecting to receive a more technical analysis of various currency trading strategies and markets.
There are a number of excellent courses available by the many supporting comments that these courses have received from many of their participants. They come from just about every repeated level of investor including the beginners as well as the more experienced investors.
Many of these courses for Foreign Trading include a variety of books; pamphlets and some will even include videos of various investment specialists providing you with their hands on training experience on Foreign Exchange Trading.
The e-books that are available to understand the Foreign Exchange more efficiently can typically be downloaded over the Internet, so you can most insolently begin almost as soon as you have paid your fees and downloaded the apropos files.
So no need of waiting for snail mail deliveries and you can begin immediately Foreign Exchange Trading soon. Some of the e-books and courses related to Foreign Trading will also include discounts and additional benefits when you sign up for an e-book or a course.
This combination can be of brilliant value when compared to some of the more long-established methods of learning the business of Foreign Exchange Trading.
Foreign Exchange rates refer to the amount of currency you obtain when you buy one currency with another currency. That is, it is most important to understand if you are traveling to England. In general, Foreign Exchange Trading if you or someone that understands and has expert knowledge live in approval of the United States, you then carry dollars.
You then ought to change these dollars for British Pounds and review the foreign currency rates to see how many US dollars it could take to buy one British Pound. Similarly, it would apply to every single country you might visit. Importers and exporters of goods are also concerned about the foreign currency rates.
The traders in Foreign Trading need foreign currency to make their business transactions. A buyer in England of United States goods watches the foreign currency rates to try and obtain a better price for the United States dollars they need to buy the United States goods.
During the Foreign Exchange Trading most foreign currency rates change all the time. The rates that do change on a daily or even hourly basis are called as the floating currencies. This means that market forces determine the price.
If more dollars are being bought and more British Pounds are being sold, the United States dollar then increases in value.
Thus, Foreign Exchange Trading should always be done keeping an alert eye on the Foreign Exchange Market.
It can be mainly used during imports and exports and the movement of capital between countries. The value of one foreign currency in relation to another is defined by the exchange rate during the Foreign Exchange Trading.
Foreign Trading is also known as the FX Trading. Here the clients are able to hedge against, or speculate upon, changes aspect element within the exchange rate of two currencies. Foreign Exchange Trading services provide a chance for clients to trade FX.
Exchange Trading is done on the magnificent excellent foreign exchange market. In Foreign Exchange Trading the methods and instruments used to adjust the payment of debts between two nations that make use of different currency systems. A nation’s balance of payments has an important effect resting on the magnificent exchange rate of its currency.
Bills of trade, drafts, checks, and telegraphic orders are the principal means of payment in international transactions of the Foreign Trading. The rate of exchange is the price in local currency of one unit of foreign currency and is determined by the comparative supply and demand of the currencies resource within the foreign exchange market.
Buying or promoting foreign currency in order to profit from rapid changes trait within the rate of exchange is known as an arbitrage in Foreign Exchange Trading.
Demand of Foreign Exchange Trading
The chief demand for Exchange Trading within a country comes from importers of foreign goods, purchasers of foreign securities, government agencies buying goods and services abroad, and travelers.
Foreign Exchange Trading is one of the nascent market opportunities when it comes to the individual investor. Until recently only large traders and multi conglomerate companies were able to participate within the foreign exchange markets.
Now with the internet and many courses both online as well as on DVD, Videos and hard cover books there are a wonderful many resources available to the individual investor to help them become currency traders and earn incomes element within the six figure range.
There are numerous books available relating to Foreign Trading that will help the novice investor get started, explaining some of the basic strategies, even explaining all of the jargon that is new daily by currency traders all over the globe.
Other books to understand the Foreign Exchange Trading may assist the more intuitive and seasoned investor who is expecting to receive a more technical analysis of various currency trading strategies and markets.
There are a number of excellent courses available by the many supporting comments that these courses have received from many of their participants. They come from just about every repeated level of investor including the beginners as well as the more experienced investors.
Many of these courses for Foreign Trading include a variety of books; pamphlets and some will even include videos of various investment specialists providing you with their hands on training experience on Foreign Exchange Trading.
The e-books that are available to understand the Foreign Exchange more efficiently can typically be downloaded over the Internet, so you can most insolently begin almost as soon as you have paid your fees and downloaded the apropos files.
So no need of waiting for snail mail deliveries and you can begin immediately Foreign Exchange Trading soon. Some of the e-books and courses related to Foreign Trading will also include discounts and additional benefits when you sign up for an e-book or a course.
This combination can be of brilliant value when compared to some of the more long-established methods of learning the business of Foreign Exchange Trading.
Foreign Exchange rates refer to the amount of currency you obtain when you buy one currency with another currency. That is, it is most important to understand if you are traveling to England. In general, Foreign Exchange Trading if you or someone that understands and has expert knowledge live in approval of the United States, you then carry dollars.
You then ought to change these dollars for British Pounds and review the foreign currency rates to see how many US dollars it could take to buy one British Pound. Similarly, it would apply to every single country you might visit. Importers and exporters of goods are also concerned about the foreign currency rates.
The traders in Foreign Trading need foreign currency to make their business transactions. A buyer in England of United States goods watches the foreign currency rates to try and obtain a better price for the United States dollars they need to buy the United States goods.
During the Foreign Exchange Trading most foreign currency rates change all the time. The rates that do change on a daily or even hourly basis are called as the floating currencies. This means that market forces determine the price.
If more dollars are being bought and more British Pounds are being sold, the United States dollar then increases in value.
Thus, Foreign Exchange Trading should always be done keeping an alert eye on the Foreign Exchange Market.
Making Money From Stock Market - Tips for Beginners
Making money from stock markets requires trading in the stock market. Cautious buying, holding and selling of stocks generate profits and money. Stock trading is the function that interacts and organizes in the stock market.
This market involves buying and selling of millions of shares all over the world, and generates profit.
As a beginner, you must understand in effect how the market works. You really don’t have to know all of the technicalities of buying and selling stocks.
The first and foremost you need to know is the functioning of the exchange floor, irrespective of whether you trade through the floor or electronically.
When the market opens, hundreds of people are seen fast moving about shouting and signaling to one another, staring at monitors, and entering data into terminals, or busy on cell-phones on the exchange floor. It looks like a complete fiasco. However, by the time the end of the day approaches, the market has worked out all the trades, and is all set for the next day.
These are the steps in a simple trade on the exchange floor of any major Stock Exchange:
You instruct your broker to buy a number of shares of a company at the current market price.
The broker’s order department passes the order on to their floor clerk, the dealing official, in the exchange.
From this person it goes to one of the firm’s floor traders whose task it is to find another floor trader wanting to sell that number of shares of the company you wanted. Each floor trader has particular knowledge of which floor traders deal in what stocks.
The two come together on a price and seal the deal. The notification process moves backward along the line and your broker gets back to you with the final price. You receive the confirmation notice in the mail after a few days.
Beginners should avoid complicating things trying to get rich in a day by venturing into every nook and cranny without knowing a thing or two about them.
To begin with, you need a broker to handle your trades – individuals don’t have access to the electronic markets. Your broker accesses the exchange network and the system finds a buyer or seller depending on your order. Choose the right broker rationally. This is a crucial point of money making from stocks.
Depend on your comprehension and your broker, who must be a professional. Never bypass understanding fully the cause(s) behind a bad result when it occurs. Learn from your experiences, document them, and keep reading them once in a while.
This market involves buying and selling of millions of shares all over the world, and generates profit.
As a beginner, you must understand in effect how the market works. You really don’t have to know all of the technicalities of buying and selling stocks.
The first and foremost you need to know is the functioning of the exchange floor, irrespective of whether you trade through the floor or electronically.
When the market opens, hundreds of people are seen fast moving about shouting and signaling to one another, staring at monitors, and entering data into terminals, or busy on cell-phones on the exchange floor. It looks like a complete fiasco. However, by the time the end of the day approaches, the market has worked out all the trades, and is all set for the next day.
These are the steps in a simple trade on the exchange floor of any major Stock Exchange:
You instruct your broker to buy a number of shares of a company at the current market price.
The broker’s order department passes the order on to their floor clerk, the dealing official, in the exchange.
From this person it goes to one of the firm’s floor traders whose task it is to find another floor trader wanting to sell that number of shares of the company you wanted. Each floor trader has particular knowledge of which floor traders deal in what stocks.
The two come together on a price and seal the deal. The notification process moves backward along the line and your broker gets back to you with the final price. You receive the confirmation notice in the mail after a few days.
Beginners should avoid complicating things trying to get rich in a day by venturing into every nook and cranny without knowing a thing or two about them.
To begin with, you need a broker to handle your trades – individuals don’t have access to the electronic markets. Your broker accesses the exchange network and the system finds a buyer or seller depending on your order. Choose the right broker rationally. This is a crucial point of money making from stocks.
Depend on your comprehension and your broker, who must be a professional. Never bypass understanding fully the cause(s) behind a bad result when it occurs. Learn from your experiences, document them, and keep reading them once in a while.
Saturday, December 8, 2007
CFTC warnings
The CFTC lists 9 warning signs for foreign exchange trading fraud:
1. Stay away from opportunities that seem too good to be true
Always remember that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.
2. Avoid any company that predicts or guarantees large profits
Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.
The following are examples of statements that either are or most likely are fraudulent:
"Whether the market moves up or down, in the currency market you will make a profit."
"Make $1000 per week, every week"
"We are out-performing domestic investments."
"The main advantage of the forex markets is that there is no bear market."
"We guarantee you will make at least a 30-40% rate of return within two months."
3. Stay Away From Companies That Promise Little or No Financial Risk
Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.
The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency trading. You can lose most or all of those funds very quickly trading foreign currency futures or options contracts. Therefore, beware of companies that make the following types of statements:
"With a $10,000 deposit, the maximum you can lose is $200 to $250 per day."
"We promise to recover any losses you have."
"Your investment is secure."
4. Don't Trade on Margin Unless You Understand What It Means
Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited.
Many currency traders ask customers to give them money, which they sometimes refer to as "margin," often sums in the range of $1,000 to $5,000. However, those amounts, which are relatively small in the currency markets, actually control far larger dollar amounts of trading, a fact that often is poorly explained to customers.
Don't trade on margin unless you fully understand what you are doing and are prepared to accept losses that exceed the margin amounts you paid.
5. Question Firms That Claim To Trade in the "Interbank Market"
Be wary of firms that claim that you can or should trade in the "interbank market," or that they will do so on your behalf.
Unregulated, fraudulent currency trading firms often tell retail customers that their funds are traded in the "interbank market," where good prices can be obtained. Firms that trade currencies in the interbank market, however, are most likely to be banks, investment banks and large corporations, since the term "interbank market" refers simply to a loose network of currency transactions negotiated between financial institutions and other large companies.
6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise
Be especially alert to the dangers of trading on-line; it is very easy to transfer funds on-line, but often can be impossible to get a refund.
It costs an Internet advertiser just pennies per day to reach a potential audience of millions of persons, and phony currency trading firms have seized upon the Internet as an inexpensive and effective way of reaching a large pool of potential customers.
Companies offering currency trading on-line will usually be located in different legal jurisdictions to you. Even if they display an address or any other information identifying their nationality on their Web site it may be false. Be aware that if you transfer funds to foreign firms it may be very difficult or impossible to recover your funds.
7. Currency Scams Often Target Members of Ethnic Minorities
Some currency trading scams target potential customers in ethnic communities, particularly persons in the Russian, Chinese and Indian immigrant communities, through advertisements in ethnic newspapers and television "infomercials."
Sometimes those advertisements offer so-called "job opportunities" for "account executives" to trade foreign currencies. Be aware that "account executives" that are hired might be expected to use their own money for currency trading, as well as to recruit their family and friends to do likewise. What appears to be a promising job opportunity often is another way many of these companies lure customers into parting with their cash.
8. Be Sure You Get the Company's Performance Track Record
Get as much information as possible about the firm's or individual's performance record on behalf of other clients. You should be aware, however, that It may be difficult or impossible to do so, or to verify the information you receive. While firms and individuals are not required to provide this information, you should be wary of any person who is not willing to do so or who provides you with incomplete information. However, keep in mind, even if you do receive a glossy brochure or sophisticated-looking charts, that the information they contain might be false.
9. Don't Deal With Anyone Who Won't Give You His Background
Plan to do a lot of checking of any information you receive to be sure that the company is and does exactly what it says.
Get the background of the persons running or promoting the company, if possible. Do not rely solely on oral statements or promises from the firm's employees. Ask for all information in written form.
If you cannot satisfy yourself that the persons with whom you are dealing are completely legitimate and above-board, the wisest course of action is to avoid trading foreign currencies through those companies.
1. Stay away from opportunities that seem too good to be true
Always remember that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.
2. Avoid any company that predicts or guarantees large profits
Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.
The following are examples of statements that either are or most likely are fraudulent:
"Whether the market moves up or down, in the currency market you will make a profit."
"Make $1000 per week, every week"
"We are out-performing domestic investments."
"The main advantage of the forex markets is that there is no bear market."
"We guarantee you will make at least a 30-40% rate of return within two months."
3. Stay Away From Companies That Promise Little or No Financial Risk
Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.
The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency trading. You can lose most or all of those funds very quickly trading foreign currency futures or options contracts. Therefore, beware of companies that make the following types of statements:
"With a $10,000 deposit, the maximum you can lose is $200 to $250 per day."
"We promise to recover any losses you have."
"Your investment is secure."
4. Don't Trade on Margin Unless You Understand What It Means
Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited.
Many currency traders ask customers to give them money, which they sometimes refer to as "margin," often sums in the range of $1,000 to $5,000. However, those amounts, which are relatively small in the currency markets, actually control far larger dollar amounts of trading, a fact that often is poorly explained to customers.
Don't trade on margin unless you fully understand what you are doing and are prepared to accept losses that exceed the margin amounts you paid.
5. Question Firms That Claim To Trade in the "Interbank Market"
Be wary of firms that claim that you can or should trade in the "interbank market," or that they will do so on your behalf.
Unregulated, fraudulent currency trading firms often tell retail customers that their funds are traded in the "interbank market," where good prices can be obtained. Firms that trade currencies in the interbank market, however, are most likely to be banks, investment banks and large corporations, since the term "interbank market" refers simply to a loose network of currency transactions negotiated between financial institutions and other large companies.
6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise
Be especially alert to the dangers of trading on-line; it is very easy to transfer funds on-line, but often can be impossible to get a refund.
It costs an Internet advertiser just pennies per day to reach a potential audience of millions of persons, and phony currency trading firms have seized upon the Internet as an inexpensive and effective way of reaching a large pool of potential customers.
Companies offering currency trading on-line will usually be located in different legal jurisdictions to you. Even if they display an address or any other information identifying their nationality on their Web site it may be false. Be aware that if you transfer funds to foreign firms it may be very difficult or impossible to recover your funds.
7. Currency Scams Often Target Members of Ethnic Minorities
Some currency trading scams target potential customers in ethnic communities, particularly persons in the Russian, Chinese and Indian immigrant communities, through advertisements in ethnic newspapers and television "infomercials."
Sometimes those advertisements offer so-called "job opportunities" for "account executives" to trade foreign currencies. Be aware that "account executives" that are hired might be expected to use their own money for currency trading, as well as to recruit their family and friends to do likewise. What appears to be a promising job opportunity often is another way many of these companies lure customers into parting with their cash.
8. Be Sure You Get the Company's Performance Track Record
Get as much information as possible about the firm's or individual's performance record on behalf of other clients. You should be aware, however, that It may be difficult or impossible to do so, or to verify the information you receive. While firms and individuals are not required to provide this information, you should be wary of any person who is not willing to do so or who provides you with incomplete information. However, keep in mind, even if you do receive a glossy brochure or sophisticated-looking charts, that the information they contain might be false.
9. Don't Deal With Anyone Who Won't Give You His Background
Plan to do a lot of checking of any information you receive to be sure that the company is and does exactly what it says.
Get the background of the persons running or promoting the company, if possible. Do not rely solely on oral statements or promises from the firm's employees. Ask for all information in written form.
If you cannot satisfy yourself that the persons with whom you are dealing are completely legitimate and above-board, the wisest course of action is to avoid trading foreign currencies through those companies.
Forex Scam
A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain an unreasonably high profit by trading in the foreign exchange market.
These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits,[3] improperly managed "managed accounts",[4] false advertising,[5] Ponzi schemes and outright fraud.[6] It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.
These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits,[3] improperly managed "managed accounts",[4] false advertising,[5] Ponzi schemes and outright fraud.[6] It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.
Saturday, December 1, 2007
Rules To Stop Losing Money
20 Rules To Stop Losing Money
- Don't trust others opinions -It's your money at stake, not theirs. Do your own analysis, regardless of the information source.
- Don't believe in a company - Trading is not investment. Remember the numbers and forget the press releases. Leave the American Dream to Peter Lynch.
- Don't break your rules - You made them for tough situations, just like the one you're probably in right now.
- Don't try to get even - Trading is never a game of catch-up. Every position must stand on its merits. Take your loss with composure, and take the next trade with absolute discipline.
- Don't trade over your head - If your last name isn't Buffett or Cramer, don't trade like them. Concentrate on playing the game well, and don't worry about making money.
- Don't seek the Holy Grail - There is no secret trading formula, other than solid risk management. So stop looking for it.
- Don't forget your discipline - Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge.
- Don't chase the crowd - Listen to the beat of your own drummer. By the time the crowd acts, you're probably too late…or too early.
- Don't trade the obvious - The prettiest patterns set up the most painful losses. If it looks too good to be true, it probably is.
- Don't ignore the warning signs - Big losses rarely come without warning. Don't wait for a lifeboat to abandon a sinking ship.
- Don't count your chickens - Profits aren't booked until the trade is closed. The market gives and the market takes away with great fury.
- Don't forget the plan - Remember the reasons you took the trade in the first place, and don't get blinded by volatility.
- Don't have a paycheck mentality - You don't deserve anything for all of your hard work. The market only pays off when you're right, and your timing is really, really good.
- Don't join a group - Trading is not a team sport. Avoid stock boards, chatrooms and financial TV. You want the truth, not blind support from others with your point of view.
- Don't ignore your intuition - Respect the little voice that tells you what to do, and what to avoid. That's the voice of the winner trying to get into your thick head.
- Don't hate losing - Expect to win and lose with great regularity. Expect the losing to teach you more about winning, than the winning itself.
- Don't fall into the complexity trap - A well-trained eye is more effective than a stack of indicators. Common sense is more valuable than a backtested system.
- Don't confuse execution with opportunity - Overpriced software won't help you trade like a pro. Pretty colors and flashing lights make you a faster trader, not a better one.
- Don't project your personal life - Trading gives you the perfect opportunity to discover just how screwed up your life really is. Get your own house in order before playing the markets.
- Don't think its entertainment - Trading should be boring most of the time, just like the real job you have right now
Friday, November 30, 2007
What is Forex ?
The Foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.[1] Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks, and are subject to forex
The foreign exchange market is unique because of
* Its trading volumes,
* The extreme liquidity of the market,
* The large number of, and variety traders in the market,
* Its geographical dispersion,
* Its long trading hours: 24 hours a day (except on weekends),
* The variety of factors that affect exchange rates.
* The low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
According to the BIS ( Bank of International settlement), average daily turnover in traditional foreign exchange markets is estimated at $3,210 billion. Daily averages in April for different years, in billions of US dollars, are presented on the chart below:
This $3.21 trillion in global foreign exchange market "traditional" turnover was broken down as follows:
* $1,005 billion in spot transactions
* $362 billion in outright forwards
* $1,714 billion in forex swaps
* $129 billion estimated gaps in reporting
In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.
The foreign exchange market is unique because of
* Its trading volumes,
* The extreme liquidity of the market,
* The large number of, and variety traders in the market,
* Its geographical dispersion,
* Its long trading hours: 24 hours a day (except on weekends),
* The variety of factors that affect exchange rates.
* The low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
According to the BIS ( Bank of International settlement), average daily turnover in traditional foreign exchange markets is estimated at $3,210 billion. Daily averages in April for different years, in billions of US dollars, are presented on the chart below:
This $3.21 trillion in global foreign exchange market "traditional" turnover was broken down as follows:
* $1,005 billion in spot transactions
* $362 billion in outright forwards
* $1,714 billion in forex swaps
* $129 billion estimated gaps in reporting
In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.
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