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.

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.

Rules To Stop Losing Money

20 Rules To Stop Losing Money

1.  Don't trust others opinions -It's your money at stake, not theirs. Do your own analysis, regardless of the information source.                                                                                                             
2. 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.                                                                                                                                             
3. Don't break your rules - You made them for tough situations, just like the one you're probably in right now.                                                                                                                                
4. 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.                                                                                                                                                                                                       
5. 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.                                                                                                                                                        
6. Don't seek the Holy Grail - There is no secret trading formula, other than solid risk management. So stop looking for it.                                                                                                      
7. Don't forget your discipline - Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge.                                                                                                           
8. 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.                                                                                          
9. 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.                                                                                                           
10. Don't ignore the warning signs - Big losses rarely come without warning. Don't wait for a lifeboat to abandon a sinking ship.                                                                                                           
11. 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.                                                                              
12. Don't forget the plan - Remember the reasons you took the trade in the first place, and don't get blinded by volatility.                                                                                                                  
13. 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.                                                                                                                                
14. 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.                                                                                                   
15. 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.                                                                                                                                                
16. 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.                                                                                
17. 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.                                                                                                                                                
18. 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.                                                                                                                                                                                  
19. 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.                                                                                                                                                     
20. Don't think its entertainment - Trading should be boring most of the time, just like the real job you have right now

 

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.

How to Trade Forex?

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the FX markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank internet trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise - all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets - gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.

Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and realtime acount overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements

Forex Trading Strategies

" How To Confidently Make Consistent Profits With These Forex Strategies"
Trade intra day forex for quick cash using forex day trading strategies for 30 minute or 1 hour charts.There hasn't been a single losing week. See opportunities before most traders see them.Our strategy also works on the gold and silver markets.
Swing trade for monthly spendable cash if you live a busy lifestyle.Our 4 hour forex trading strategy for swing trading allows you to walk away from your computer after you have placed a trade and do what you have to do.This strategy was designed for traders who can't spend much time watching forex charts.Click on our "Trade of the Week" page to see examples of last week's trades.

Become a confident trader. If you are sick and tired of watching your investments plummet while others make money,this could be the most important message your ever read.We are full time forex traders and we identify high profitability trading setups.Have your forex trading systems failed you lately? Join the group that make money consistently. If you’re a beginner and don’t know where to start, try these strategies first.

Maybe you’ve bought forex trading systems or methods before and your trading results still weren’t up to scratch. We have the solution you need. Why suffer with unproductive results? Our entry setups are easy to pick. We’re using well known indicators which are available in most free or fee based forex charts. "Try, try, try, and keep on trying is the rule that must be followed to become an expert in anything." W. Clement Stone

Our method is not 100% mechanical.There is some decision making involved. You can count on these tested strategies to select the right entries and exits.With repetition comes mastery.You will be able to see patterns and formations quickly. One of the most frustrating modes to be in is searching for years for a trading method that grows your trading account balance. You’ll lack confidence.

A forex trading method with a high winning percentage is rewarding psychologically, keeps your morale high and is enjoyable to trade. A string of profits will build your confidence. See our trade of the week page which is updated at the end of each trading week .If you are looking for a system with no losing trades, forget trading and find another business or hobby. Losses have to kept small and wins should be larger than losses.We have forward tested each strategy in real time.We started offering our CI System in 2003 but in 2007 we replaced it with improved strategies.
Your forex profits will increase ;

-because you will have an edge.

-because the strategies reduce fear and indecision.

-because you will be able to spot entry setups and end of moves before the crowd does. Avoid chasing the market so you don’t enter a trade too late and get “burnt”.

-because you will be able to “read’ the market better.

-because the strategies can be implemented without buying any costly software or subscribing to expensive data services.

-because you will exit successful trades before your profit evaporates.

-because you will know when to let your profits run.

-because you will learn how to use higher time frames to gauge how price will react on lower time frame charts.