FOREX Trading Advice - Which Is Best To Make Big Profits?

Many new traders want to take FOREX Trading advice to give them success, but what should they look for from an advisory service?

How do you pick FOREX trading advice that can make you profits?

Lets find out.

Here some of the things you should look for in terms of FOREX trading advice.

1. Know how the advisor makes trades

You will never make money following FOREX trading advice if you dont understand the logic the trades are based upon.

Why?

Quite simply any FOREX Trading advisory service will lose money at some point.

They all do, (dont believe track records that look to good to be true they probably are) so when the losses occur, unless you know how the advice is generated, you wont have the discipline to stay with it.

Currency trading success is based around the following equation

A logical method + the discipline to follow it = currency trading profits

If you dont have the discipline to follow the advice you will never make money and this comes from having confidence that a system can overcome losing periods and lead you to currency trading profits

2. Look for a real-time track record

A lot of FOREX Trading advice is presented with a hypothetical track record (lets face it we can all make a profit if we know past data) and they all look great but the acid test is trading in advance.

Look for a real time track record of the advisor making money in currencies. Thats real dollars and account statements.

Today, many e-book writers offer advice with simulated track records and simply appeal to the greed and stupidity of buyers - Dont fall into this trap.

Get a real time track record and make sure the advisor has put their money where their mouth is and have a track record of success.

No track record? Then dont buy - PERIOD.

3. Does the advisors strategy suit your mentality?

Does the FOREX trading advice suit your trading mentality?

For example, they may make 100% annual gains but with 80% drawdowns at times.

Can you cope with this?

Or

Are you happier with lower profits and lower drawdowns?

Some traders like to preserve their capital and others like to be more aggressive, so only pick a FOREX advisory service where you can cope with the worst drawdown (peak to valley) they have had in the past.

4. Look for a satisfaction guarantee

Most reputable sellers of FOREX trading advice will give you a satisfaction guarantee if not delighted, so only buy from one who does.

Final words

There is some great FOREX Trading advice you can buy but you need to be careful to get a service that has made money, to inspire confidence and one that suits your trading mentality.

MORE FREE BETTER TRADING INFO

On all aspects of becoming a profitable trader including info about legendary trader W D Gann who made a $50 million fortune trading go to our website for an exclusive Gann Trading Course visit our website at http://www.net-planet.o

Forex For Beginners - Making Money From Currency Trading

FOREX stands for Foreign Exchange and it stems from the international financial market. That is, the Forex market, the place where currencies of different countries are bought and sold in a similar manner to the buying and selling of share market in the ASX, Australian Stock Exchange.

Forex market started in the 1970s and that is when floating of currencies and free exchange rates began. Like share prices, it is the people who traded in the Forex market that affects the prices of the currencies traded in accordance to the law of supply and demand. Hence, if the market force dictates, e.g. if the US Federal Reserve decides to raise interest rates to curb inflation while Australia Reserve Bank have the interest rate on hold, that should stimulate a change in exchange rate. One should therefore see interest rate effect with the US $ worth more in value than AUD when this happens.

The amount of money traded daily in the Forex market is uniquely enormous. The rate of exchange makes Forex the single most liquid financial market with currency traded amounting from 1 to 1.5 trillion US dollars per day. Owing to this enormity, it is not possible for the Forex market to be manipulated externally. Hence, no single trader or even any financial institution trading in it has the wealth to influence the price of any currency in its favour.

The Forex is so fluid and so much exchange at such a fast pace that it is just impossible for anyone to affect the market of any one major currency. The sheer liquidity of the Forex market with so many exchange taking place, enable the traders to open and close position within seconds. This is because there are always willing buyers and sellers available at any one time since the collective exchange of the various world Forex centers is considered open for 24 hours as it spans across different time zone.

Forex is naturally unique compared to the stock market which is normally associated with long term investments. In currency trade, a minute change in prices of a currency generate situation that permits investors to apply all sorts of strategies to their advantage. However, there are also long term hedge investors involved in Forex and also short term investors that make use of credit lines to seek large gains over a short period.

HOW FOREX WORKS

Unlike NYSE (New York Stock Exchange) or ASX (Australian Stock Exchange), there is no central marketplace for Forex. Instead the exchange takes place over the counter 5 days a week on a 24 hour basis, via satellite, among major financial centers in London, Paris, Tokyo, New York, Sydney, Hong Kong, Frankfurt, Singapore and Zurich. Dealers, including online ones, around the globe are always available to quote any major currency.

MARGINAL TRADING

Marginal trading is like using a credit card and it is like borrowing money to trade currency. This encourages investors to take additional risk by opening a bigger trading position with less out-of-the pocket money and relying more on borrowed capital that is provided by the brokering company.

Marginal trading in the Forex market is traded in lots of which 1 lot is about 100,000 of unit currency. The margin requires to hold that $100,000 position is 1.0% of $100,000 and that is equivalent to a personal capital outlay of $1000 (i.e. taken from 100,000 x 0.01) while the balance of $99,000 is covered by the broker.

If the currency traded increases in value you make the difference when you close your trading position. You capital outlay and profit gained minus any transaction cost from the trade are credited into your margin account.

INVESTMENT STRATEGIES: TECHNICAL & FUNDAMENTAL ANALYSIS

Of course, one cannot just trade without any knowledge of the currency market. To be successful in Forex trading one has to be analytical and this is what all experts do. They do what we call Technical and Fundamental Analysis.

Technical analysis is associated with studying data gathered on all the fluctuations of the various currency prices over time. From the data, chart patterns are formed and movement of the currency prices can be observed for trading decisions to be made.

The behaviour patterns of each currency prices are the reflection of all factors in the market place such as an event, overbought and oversold situation, interest rates, etc. Most of these patterns in chart forms are instantly provided by the brokerage firm you trade from.

Fundamental analysis is an event based analysis like political situation, rumours, economy, interest rate setting by central or reserve bank of the country concern, news on tax policy, GDP, countrys economic performance, political unrest, natural disaster, employment or unemployment figure announcement, etc. Value of a currency can also be influenced by expectation, anticipations and perceptions of the participants in Forex trading, i.e. it could be driven by sentiment of these Forex participants.

MAKE MONEY WITH CURRENCY ON FOREX

To profit out of Forext tading one need sheer diligence and trading experience and getting familiar with Technical and Fundamental analysis to place once trade. Anyone who participates in it should have equal opportunity since it is one market that is so liquid and rapid moving that it is impossible to be influenced by anyone person or fund management.

Get proper currency trading tips from professional trades. Free articles on how to trade the fx market

Introduction to FOREX Trading

Introduction to FOREX Trading

If youre not sure just what the "FOREX" is, dont worry, youre not alone. Most everyone has certainly heard of buying and selling stocks and bonds, FOREX still remains a mystery for many.

The Foreign Exchange Market - better known as FOREX - is a world wide market for buying and selling currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily exchanges are worth approximately $1.5 trillion (US dollars). In comparison, the United States Treasury Bond market averages $300 billion a day and American stock markets exchange about $100 billion a day.

The Foreign Exchange Market was established in 1971 with the abolishment of fixed currency exchanges. Thats right, it buys and sells money! Currencies became valued at floating rates determined by supply and demand. The FOREX grew steadily throughout the 1970s, but with the technological advances of the 80s FOREX grew from trading levels of $70 billion a day to the current level of $1.5 trillion.

The FOREX is made up of about 5000 different trading institutions such as international banks, central government banks (such as the US Federal Reserve), and commercial companies and brokers for all types of foreign currency exchange. FOREX is traded everywhere - major trading centers are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and Frankfurt, and all trading is by telephone or over the Internet. 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 profits from small movements in the market.

Even though there are many huge players in FOREX, it is accessible to small investors as well. Previously, there were high minimum transaction sizes and traders were required to meet strict financial requirements. Now though, 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. Typically, lots can be controlled with a leverage of 100:1 meaning that US$1,000 will allow you to control a $100,000 currency exchange!

There are many advantages to trading in FOREX.

· Liquidity - Because of the size of the Foreign Exchange Market, investments are extremely liquid. International banks are continuously providing bid and ask offers and the high number of transactions each day means there is always a buyer or a seller for any currency. There is always a bank open somewhere in the world. · Accessibility - The market is open 24 hours a day, 5 days a week. The market opens Monday morning Australian time and closes Friday afternoon New York time. Trades can be done on the Internet from your home or office. · Open Market - Currency fluctuations are usually caused by changes in national economies. News about these changes is accessible to everyone at the same time - there can be no insider trading in FOREX. No one knows what will happen around the globe. People can make educated guesses - thats all. · No commission - Brokers earn money by setting a spread - the difference between what a currency can be bought at and what it can be sold at.

How does it work?

Currencies are always traded in pairs - the US dollar against the Japanese yen, or the English pound against the euro. Every transaction involves selling one currency and buying another, so if an investor believes the euro will gain against the dollar, he will sell dollars and buy euros.

The potential for profit exists because there is always movement between currencies. Even small changes can result in substantial profits because of the large amount of money involved in each transaction. At the same time, it can be a relatively safe market for the individual investor. There are safeguards built in to protect both the broker and the investor and a number of software tools exist to minimize loss. Currencys rarely "crash" and thus risk is very limited.

Read more of this informative series designed for the beginning FOREX trader at http://www.informationisthekey.com/forex