The Forex Market Draws Traders

The Forex Market Draws Traders

Millions of people are drawn to the Forex market, the biggest financial market on the globe. The Forex market its where it's at when it comes to investing and currency trading and is one of the fastest growing investment forums to date. Although the Forex is called a "market", it is not a traditional "market" as all trading is conducted over the telephone or via computers - there is no central location for the trading in any country. The Forex market is a cash inter-bank or inter-dealer system that was formed in 1971, at the time when floating exchange rates came about. Today the Forex is enormous with over 3.5 trillion levels exchanged each day, making it, without a doubt, one of the most popular forms of trading worldwide.

Availability

Perhaps the best feature of the Forex market is that it never closes. The Forex market is open all day long every day of the year. There are people in every country that are waiting to trade whether it is 2:00 in the afternoon or 2:00 in the morning. No matter where you are or what time it is, you can expect to find trading occurring in full force. The availability of the market makes it very appealing. Ultimately when dealing with foreign currency, the market must remain open for 24 hours due to time differences. As a result of this availability, traders are able to capitalize on the wide open trading times and eliminate the sense of anxiety as to what could be happening overnight in closed markets.

Excitement

The Forex, along with its never ending trading, is attractive to many traders because of the excitement it brings. Trading can be very exciting - the Forex offers never ending excitement for those willing to partake. With $1.5 to $3.5 trillion dollars per day, the Forex market has nearly perfect liquidity. The size alone makes this market a joy ride for traders. If you are looking for endless excitement, you will be glad to know that you can certainly find it in the Forex market. Unlike the other markets, the Forex is great because you can enjoy that excitement all day long. You won't have to deal with the anxieties that occur with other markets after closing time. You can know that no matter what, the Forex will be open and you will be able to deal with business as needed. This adds a fun element to trading as removes the stress related to other markets.

Opportunity for Everyone

Previously the market has been only for the rich. Today however, the Forex is open to smaller scaled traders as well. Most of the traders are actually doing their business from home. Lower margin requirements are very attractive to smaller traders allowing them to participate with larger traders on the same scale, but from a more equal position. With the Internet thriving and continuing to grow each year, home based traders can now get in on the game with larger traders via their computer. It used to be that only large traders could access the Forex at any level. Today, the Forex is for everyone.

The Forex offers availability, excitement, and opportunity that draw millions of people to the market each day. Once you try it you won't want to stop. The opportunities are endless, making the Forex a popular topic in today's business schools. If you are interested in learning more about the Forex check with your local college to see if there are any classes offered on the subject. Before you start trading, you'll need to be aware of the rules and regulations of the Forex market. Once you're informed you can jump right in and start trading.

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Forex Trading Newsletter

Trading In Black And White Forex Trading Newsletter - 5/9/06

When is a night that you don't get into a trade a good trading night? Well the obvious answer is when the market goes against you, but since you did not get to your entry price you did not lose any money.

Last night gave us an example of what I believe is an even better no trade night. We missed our entry by one pip plus the spread. Cable dropped to 1.8581 and our entry was 1.8580.

Most of you ask how frustrating it is to miss a 160-pip profit night by one pip, that's right we hit both of our targets. My answer is it's not frustrating at all. I can honestly answer this way because number one, and I alluded to this a little in last nights news letter, the market is completely random, so why should I feel frustrated by missing a trade by one pip, to the contrary I am glad to been that close to the entry.

And number two every trader needs a little luck, to have a trade go in there favor. We have had six out of the last seven nights go in our favor for well over 700 pips. I feel fortunate that I have had more than my share of luck.

It appears Cable is sliding into some sideways consolidation trading. We do not feel this will last long. This has been a fairly quiet week so far, with no significant news. That all changes Wednesday with the FOMC Interest Rate Statement.

With that said we expect the rise to continue towards the 1.9549 previous high. We must also watch the 4 hour charts as the MACD is in divergence.

Last night we set our entries at 1.8580. We had profit targets of 1.8640 and 1.8680, we miss the entry by one pips but the target were perfect.

Tonight we are trading around 1.8550. We will be looking to go long again, and we will continue cautiously watching for an unexpected reversal.

To learn more about how we find these trading levels and dominate the Forex market, you must get a Forex trading education. Whether it be a Forex trading course of Forex seminar.

We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.

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Learn about Eddie's amazing training tools at http://www.elite-forex-trading.com and http://www.foreignexchangeuniversity.com/forex-trading-course.aspx

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A Look Back At Forex Trading - 4/25/06

A Look Back At Forex Trading - 4/25/06

When I look at the charts tonight I think of my favorite Led Zeppelin song, The Song Remains the Same. Cable will once again be testing the resistance around 1.7935.

If this sounds familiar it should, we have been tell you about this since last Thursday.

While we believe it will hold only time will tell for sure, we must be very vigilant in watching in the New York session, especially with the release of the consumer confidence report at 10:00 AM.

The fundamentals are all over the place, due to fears of the recent and dramatic increase in gasoline prices. What does this mean to us? We need to watch and take action dependant on the situation at the time of the news release.

On Monday 1.7800 held as support a little above where we were looking as we were watching 1.7750 again. We were still able to close both of our trades, the first for 60 pips and the second for 80 pips of profit.

The previously mentioned cluster of resistance around 1.7935 has several good supporting reasons behind it, with the main player being a 61.8% Fibonacci retracements of the 1.8498 to 1.7048 move, and the previous highs of 1.7934 and 1.7933.

We will watch closely to see in the rise continues, and if it does we are looking towards the 1.8498 previous high. If this current resistance at 1.7935 holds and we see a reversal, we will look towards the support cluster at 1.7680

Tonight we are trading around 1.7864. We will be watching the resistance level around 1.7935 closely for another reversal. This should be a great area to be looking for a sell. Remember to play it safe, its better to have a safe entry and not get into your trade than to have an over aggressive entry and get sopped out of your trade for a loss.

To learn more about how we teach traders to successfully trade the forex market be sure to attain a top notch Forex Trading Education. Whether it be a forex trading course or forex seminar, you must prepare yourself for your trading career..

We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful forex trading style with a forex trading course or forex seminar.

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Learn about Eddie's amazing training tools at http://www.elite-forex-trading.com and http://www.foreignexchangeuniversity.com/forex-trading-course.aspx

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FOREX Trading System

An Introduction To The FOREX Trading System

For those new to the foreign exchange market, also known as FOREX, the prime thing you need to know is that it is a currency exhange market. There are high volumes of transactions 24 hours a day, 5 days a week. Because what you are trading is money itself, it is more liquid than any other exchange - you will never get stuck with trading a product that no one is interested in anymore.

1. FOREX History

Created in the early 70's, fixed currency exchanges are determined by supply and demand just like the stock market. FOREX grew steadily throughout the 1970's, but with the technological advances of the 80's FOREX grew to over 1.5 trillion dollars daily.

2. Foreign Currency Exchange

Because there is no centralized location of FOREX - major trading centers are located all over the world and can be completed using software, over the internet or by phone. Businesses use the market to buy and sell products in other countries, but most of the activity on the FOREX is from currency traders who use it to generate profit from minisculte changes in currency values.

3. Enter Small Business

No longer is FOREX exclusive to big players such as the huge banks and corporations. Previously, there was a minimum transaction size and traders were required to meet strict financial requirements. With the advent of Internet trading, regulations have been changed to allow large interbank units to be broken down into smaller lots. Each lot is worth about $100,000 and is accessible to the individual investor through leverage - loans extended for trading. The leverage rate is typically 100 - 1, meaning you can control up to 100,000 dollars worth of currency with just 1,000 dollars!

4. The FOREX Advantage

- Liquidity
There will always be a buyer waiting for you due to the large number of transactions per day

- Accessibility
The market is open 24 hours a day, 5 days a week

- Open Market
News about currency fluxuations is available to everyone so insider trading is impossible.

- No Commission
Brokers do not take a cut of the profits

5. How It Works

Every transaction has both a buy and a sell simultaneously. For example, if you believe the Canadian dollar will fall and the US dollar will rise, you would buy into the US dollar and sell the Canadian dollar. Meanwhile, someone else in the world will believe the opposite to be true, or more cunningly, will know the Canadian dollar is falling but buy into it anyways because it will be cheaper so when he sells it later, presumably when it has raised in price, he will make a lot of money. Software tools are available both to brokers and investors to help protect investments, and are generally regarded as a must-have for FOREX trading.

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Forex signal trading

Forex signal trading gives the traders one more analytical tool.


Forex signal trading has emerged as an important support service for forex traders. This service is run either by forex brokers or by independent analysts who monitor and analyze the forex market. These analysts identify forex trends using several indicators. Based on this analysis, they suggest profitable entry and exit points to forex traders for a fee.

Most analysts offer signals for only the most popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF. However, there are some specialty services also that offer signals for the lesser-traded pairs.

The charges for these services vary from analyst to analyst, and depend upon the range of services bought by the trader. For instance, a basic subscription service offers email alerts of entry/exit opportunities to traders while a more comprehensive service provides this information through SMS, cell phone or pager alerts also.

Some signal trading services also provide live charts for the traders to make their judgment. Irrespective of the level of service, a trader should be prepared to pay a minimum subscription fee of $100 a month.

However, the success of a forex signal service should not be measured in isolation or over a relatively short period of time. The traders should use these signal services only as an extra indicator, as one more tool in their trading toolbox. A good way to judge the analytical skills of signal trading service is to ask for historical data. This can expose the claims of trading signal service.

The biggest benefit of signal trading services is that they save the traders the bother of analyzing or crunching data. However, this does not mean that the traders should depend upon them exclusively to maximize their profits or minimize their losses. This should happen only when the traders develop sufficient trust in certain signal trading services. Otherwise, the traders should use their own judgment and market grapevine to decide the trades.

While Forex signal trading gives the trader's one more analytical tool, each trader must use his or her best judgment before making the trade. Forex signal trading software is a great tool, but should never be used solely to base the trade decision upon. You would be better off relying on your past experience and gut instinct when analyzing signal trading data. You will also want to rely on your basic fundamental analysis. Forex traders using fundamental analysis rely on news reports to gather information about unemployment rates, economic policies, inflation, and growth rates.

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About the Author
Matthew Bass is the owner of http://Forex-Resource-Pro.com, a site dedicated to learning the Forex market.

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Forex Trading

Forex Trading
The Forex market is known to trade in foreign exchange and currencies, to be made to the forex market (Foreign Exchange Market). In this global market meet foreign exchange deals and foreign demand. Investors benefit from the existing exchange rates here, and around the clock.

The history of Forex trading

As early as 1880 had credit investors the opportunity to make payments on a foreign bank account to be. The Bretton Woods agreements and the establishment of the World Bank developed in the summer of 1944, the first fixed exchange rates, which were only eased in 1969. Since then, market participants on the international stage were exposed to great fluctuation, which also brought the risk of falling exchange rates with them. The cause of the currency fluctuations is mainly due to state or state political events, which is particularly important for market participants. Today the foreign exchange market, almost all currencies are traded. The most common currencies are next to the U.S. dollar and the euro, the American and the Australian dollar.

Market participants in the foreign exchange market

On the Forex market, it is possible to exchange foreign money for domestic currency and vice versa. Major players in the Forex market are primarily banks but also private foreign exchange dealers, industry and foreign exchange brokers in the Forex market active. For some time it is even possible to private investors through dedicated Forex broker in the foreign exchange market to be active. What is needed is this merely a trade account and a margin account, over which the security can be posted.

Trading in the foreign exchange market
To the Forex market can be proactive, by a commercial account with a Forex broker is necessary. With the software provided by the broker, it is possible to open and close trades and thus to benefit even from small fluctuations in exchange rates. Furthermore, the software offers the possibility to be always informed about important economic and political events that can affect the price of a currency. Alternatively, ask the broker and trading signals available, which are to be supplied by mail or even via SMS.

The reason for the above-average opportunities for profit in Forex trading is the use of a lever. This is due to the small sum in relation to the trading capital, which can vary depending on the broker with 1:50 to 1:400. The larger of course, the lever can be agreed upon, the greater the opportunities for profit, including the losses can be potentiated. To be able to get a first insight into the Forex trading and make experiences, many brokers offer demo accounts that can be used free of charge.

The Forex Broker

In Germany, investors have the opportunity to use several different Forex brokers. These differ in the amount to one of the provided lever, on the other hand the number of currencies in which investors are available. Furthermore, some Forex brokers who specialize on the trade in raw materials, which is also profitable. Other distinctive features of the Forex broker is the minimum deposit size. Some brokers, the securities may already be opened from one U.S. dollar, whereas at other brokers are paid a minimum of $ 250 required.

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rading In Black And White Forex Trading Newsletter

Trading In Black And White Forex Trading Newsletter

When is a night that you don't get into a trade a good trading night? Well the obvious answer is when the market goes against you, but since you did not get to your entry price you did not lose any money.

Last night gave us an example of what I believe is an even better no trade night. We missed our entry by one pip plus the spread. Cable dropped to 1.8581 and our entry was 1.8580.

Most of you ask how frustrating it is to miss a 160-pip profit night by one pip, that's right we hit both of our targets. My answer is it's not frustrating at all. I can honestly answer this way because number one, and I alluded to this a little in last nights news letter, the market is completely random, so why should I feel frustrated by missing a trade by one pip, to the contrary I am glad to been that close to the entry.

And number two every trader needs a little luck, to have a trade go in there favor. We have had six out of the last seven nights go in our favor for well over 700 pips. I feel fortunate that I have had more than my share of luck.

It appears Cable is sliding into some sideways consolidation trading. We do not feel this will last long. This has been a fairly quiet week so far, with no significant news. That all changes Wednesday with the FOMC Interest Rate Statement.

With that said we expect the rise to continue towards the 1.9549 previous high. We must also watch the 4 hour charts as the MACD is in divergence.

Last night we set our entries at 1.8580. We had profit targets of 1.8640 and 1.8680, we miss the entry by one pips but the target were perfect.

Tonight we are trading around 1.8550. We will be looking to go long again, and we will continue cautiously watching for an unexpected reversal.

To learn more about how we find these trading levels and dominate the Forex market, you must get a Forex trading education. Whether it be a Forex trading course of Forex seminar.

We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.

Source: http://www.articlecircle.com/ - Free Articles Directory

About the Author

Learn about Eddie's amazing training tools at http://www.elite-forex-trading.com and http://www.foreignexchangeuniversity.com/forex-trading-course.aspx

read more