Online Forex Trading Secrets

I am here to share some knowledge, tips, strategies and insights of how to successfully buy, sell, trade and invest in online Forex trading. FOREX or Foreign Exchange is the largest as well as the most liquid trading market in the world and there are many people involved in FOREX trading all over the world. A lot of people claim that the FOREX is the best home business that could be pursued by any person. With each day, more and more are turning to FOREX traders, via electronic means of computer and internet connectivity.

This means that foreign exchange is not delivered to a person who actually buys like stock trading, FOREX trading also has day traders that purchase and sell foreign exchange same day. Thus, FOREX is not a get-rich-quick scheme as many people thought which complicates the real concept of online Forex trading.

Unlike stocks and futures that trade through exchanges, Forex trading is done through market makers that include major banks as well as small to large brokerage firms located around the world who collectively make a market on 24 hours - 5 days basis. The Forex market is always "open" and is the largest financial network in the world (daily average turnover of trillions of dollars).

Forex trading involves trading currency pairs such as the EUR/USD pair (Eurodollar/US dollar pair) where a buyer of this pair would actually be buying the Eurodollar and simultaneously selling short the US dollar.

Here's the deal: Just like any other market, most "traders" are losing when trading Forex. And the reasons for their failure are mainly because some lack good trading methods, sound money and risk management principles and indiscipline trading attitude. In most cases, it could be wrong mindset and motive towards the market. Some don't even understand the trend of the market, of which the trend plays a vital role in the life of any trader, as it is simply says that "the trend is your friend".

Moreover, many have been mislead by dishonest individuals or questionable brokers promising outwardly overnight riches and hidden policies.

Forex is still a little like the "wild west", so there's naturally a lot of confusion and misinformation out there but I'm here to cover many tactics and strategies used by successful Forex traders all over the world. Unfortunately, only few Forex traders are actually aware of this information.

Forex trading is all about regulation, willpower and determination. Leveraging your strength could be extravagant by organizing the appropriate Forex trading strategy. You may find hundreds and thousands of Forex trading strategies out there. All Forex trading strategies use a variety of indicators and combinations. These indicators and studies are just calculating support and resistance and trend in the Forex trading market.

What you are about to read is more valuable to you than what you will find in many trading courses or seminars that you'd have to pay for. Anyway, I don't believe in sugarcoating anything or giving you false hopes of success. There are enough swindlers doing that already. I want to give you the facts, like 'em or not, so you're empowered to take action and make positive decisions on how to succeed in the Forex markets.

There's nothing magical about the Forex markets, because all markets are ultimately driven by human psychology - fear and greed - and supply and demand. Sure, every market has its own peculiarities, but if you understand how the basic drivers of human emotions work, you can potentially succeed big in Forex market, because the market controls 95% of live trader's emotions. Some traders think it's a "get rich quick" trading the popular Forex markets.

There are many advantages of Forex trading over other types of financial instrument trading like bonds, stocks, commodities etc. But it does not mean that there are no risks involved in the Forex trading. Of course there are risks associated with Forex trading. Therefore, someone needs to understand all the terms related to Foreign Exchange carefully. There are many online sources as well as offline sources that provide hints on trading of Forex. These hints are basically the SECRETS.

As I said above, the foreign exchange trading is considered as one of the most profitable and attractive opportunities for investment as any person can easily do at home or office and from any part of the world. For succeeding the Forex trading, a person is not required to do any online promotion, marketing etc. The only requirement in the Forex trading is the account that a person is required to open with reliable and registered brokers, a computer system and fast internet connection.

Now, you have to be careful when opening a Forex account with any broker because some could be SCAM. The Commodity Futures Trading Commission (CFTC) in US has jurisdiction over all Futures and Forex activity. When trading in the foreign exchange markets, individuals should only trade with a CFTC registered entity that is also a member of the National Futures Association (NFA) and is regulated by the CFTC. For non-US broker/ bank entities, be sure that the broker or bank is registered with that country's appropriate regulatory bodies.

The Forex account could be opened with any amount between $300 (mini) and $2000 (standard). After opening the account, a person is required to learn how the Forex market works, demo trade and after a while go live trading. Moreover, there are some secrets that have to be followed.

A person can also apply all the secrets when demo trading and can see if the secrets really work. It could be said without any doubt that if someone can apply all the secrets in right way, he/she can easily gain good money by way of Forex trading.

All successful traders have Forex trading strategies that they follow to make profitable trades. These Forex trading strategies are generally based on a strategy that allows them to find good trades. And the strategy is based on some form of market analysis. Successful traders need some ways to interpret and even predict the movements of the market.

There are two basic approaches to analyzing the movements of the Forex market. These are Technical Analysis and Fundamental Analysis. However, technical analysis is much more likely to be used by traders. Still, it's good to have an understanding of both types of analysis, so that you can decide which type would work best for your Forex trading strategies.

There has been misconception about the Forex market because there are different types of traders and advert out there full of exaggerations that makes the business unreal to so many people and that is why I am here to show you the SECRETS in Forex Trading.

What is traded on the Forex market? The answer is money. Forex trading is where the currency of one nation is traded for that of another. Therefore, Forex trading is always traded in pairs and the most commonly traded currency pairs are traded against the US Dollar (USD). They are called 'the Majors'. The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY); and the Swiss Franc (USD/CHF). The notable 'commodity' currency pairs that traded are the Canadian Dollar (USD/CAD) and the Australian Dollar AUD/USD. Because there is no central exchange for the Forex market, these pairs and their crosses are traded over the telephone and online through a global network of banks, multinational corporations, importers and exporters, brokers and currency traders. But if you really want to make it big in the Forex market, I will strongly advise that as a "beginner" in the business. Kindly get acquainted with one or two major currency pairs. Study them very well and make sure you understand their volatility period.

And to further simplify Forex trading, you could easily limit your trading to the two most liquid and widely traded pairs, the EUR/USD and the GBP/USD. This really starts to reduce demands on your time for trading activities without giving up good profit potential.

Traditionally, currency trading has been a 'professionals only' market available exclusively to banks and large institutions, however, because of the invention of the new E-economy, online Forex trading firms are now able to offer trading accounts to 'retail' traders like you and I. Now almost anyone with a computer and an Internet connection can trade currencies just like the world's largest banks do.

Do you want to know how to trade the forex market without losing a dime? Then go over to http://quickforexpips.blogspot.com you will get free tons of information there.

Reuters - U.S. stocks rose on Friday on light volume in an abbreviated session, capping the best week for the S&P 500 since at least 1980, as investors hoped government and central bank moves unveiled this week would boost the economy.

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Once You Trade E-Minis You'll Never Trade Stocks Again! - Discover the Great Advantages of E-Minis

Ever noticed how Mutual Fund companies never talk about anything but 'investing'...for the long haul? Ever noticed how even when 'day trading' became such a hot item, that stocks were the only thing they traded...and most still do? The public doesn't know this -- that while the mutual fund companies with all of their advertising keep the public thinking 'investing', they, themselves are day trading with their clients' money. Unless you understand how 'shorting' works, you might think they couldn't legally do that...and get away with it, but they can, and do...and on a massive scale! Yes, what they get away with is legal.

Think about what the average mutual fund makes for its owner per year: 10-15% appreciation growth (if the stock market has a good year). Did you know that a 2005 survey ---to evaluate the value of mutual fund managers to their clients -vs-what they get paid, showed that the average annual salary of mid-level mutual fund managers was $472,000 dollars, and senior-level managers made over $750,000. The irony of it all is that they justify their performances by comparing them to what the S&P 500 Index does: bragging if they beat it, and consoling their client with "Well, the S&P went down, too." when they have a losing year. Regardless, they always get their salary 'bonus' though!

If you are an investor (in a mutual fund) or among the growing army of stock day traders (who have never known anything but stocks), you owe it to yourself to look into the 'e-mini' and discover the tremendous advantages it offers. Yes, trading is where the ACTION is in the stock market, and those who discover the e-mini always end up saying to themselves: "Oh, my...why didn't I learn about this earlier!" It's only been around since 1997. How has it been kept such an Insider secret?

Here, now....I'll just state two little things that I really appreciate about e-minis; then in my next post, we'll go into some depth as to why... if you learn to trade e-minis, you'll never again trade stocks (let alone invest in them).

How about 'bag for the buck'? (ROI for the sophisticated)

You can open an e-mini trading account with just $2,000 dollars. It's very common for a good e-mini trader to make $500 a day (the daily goal of most e-mini traders). What is the rate of return on one's $2,000? Is it not 25% a DAY? I keep $10,000 in my trading account so my daily return on the $10K is only 5% a DAY. How's that for 'bang for the buck'? How does that compare to the average mutual fund's performance?

The second thing I really appreciate is that you can do so much more with so much less money: It's called 'leverage'. You buy a stock (even just to trade it) and you have to lay out the market price of the stock. Yeah, if you've got 'margin' in your account, you can buy $2 of stock value for every dollar in your account (2-1 leverage). But, how many shares of even a $5.00 stock would you need to buy (and have in a trade) to make $500.00? Not only do you have leverage with e-minis of about 90-1, an e-mini trade is seldom OPEN for longer than 5-minutes!

If this catches your attention and peaks your interest, join me here next time.

Mel Hardman

http://www.melhardman.com

http://www.emini-forex-trader.com/forex-emini-trading

Reuters - The U.S. economy is in recession and will contract at a faster pace in the fourth quarter, extending the decline into early 2009 as high unemployment crimps consumer spending, a survey showed.

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Support and Resistance - The Greatest Trading Tool

Despite all the hype from the internet marketers who try to sell you the latest trading 'secrets', the fact is there are NO secrets.

* Identify setups which provide the potential for lower risk and/or higher probability trades.
* Enter and manage those trades in a consistent and disciplined manner.
* Minimize risk.
* Manage your money.
* Manage your emotions.
* Journal your results, and review them to identify what's working and what's not working.
* Keep doing what is working, and
* Improve what is not working.

If you're not trading successfully, it's because you're not doing one (or perhaps all) of these things.

There are no secrets!

So, it's time to stop searching for this holy-grail solution and get down to some good old-fashioned work.

And where better to start than the first item on the above list - a setup which provides the potential for a lower risk and/or higher probability trade.

Every technical analysis book on the market shows a number of charts with horizontal lines, and labels them support or resistance. Why is that? Because they look cool, and you can show your friends how clever you are at analyzing the market? Well, yeah, perhaps that's part of it. But have you ever really stopped and asked why you should care if the price action can be bounded by a line? What does it really mean if price has been unable to break through a particular level in the past? Why should you care if price consistently rallies every time it falls to a certain level?

The reason we care is because support and resistance are providing you with setup areas with the potential for lower risk and/or higher probability trades. While there are numerous ways to define an area of low risk and/or higher probability trading, I have not personally found one that works for me as well as the concept of support and resistance.

So, how do support and resistance work?

We discussed in a recent article how price moves, due to an imbalance between supply and demand. When there is more demand than supply, price rises until they are once again balanced. When there is more supply than demand, price falls until once again the supply/demand balance is restored. We can also use this concept to explain support or resistance areas.

Let's first consider resistance.

Price rises while demand is greater than supply. As price rises though, it will become less attractive to the buyers, leading to reduced demand. And it will become more attractive to sellers, leading to increased supply. If the supply/demand ratio can be tipped in favor of supply, price will fall.

Resistance is simply an area which has shown past evidence of halting a price rise. Price hits the resistance zone, and turns around to fall again. If it helps, think of resistance as a ceiling that resists any further price rise.

Support works much the same. Price falls while supply is greater than demand. As price falls though, it will become less attractive to sellers, leading to reduced supply. And it will become more attractive to buyers, leading to increased demand. If the supply/demand ratio can be tipped in favor of demand, price will rally.

Support, then, is simply an area which has shown past evidence of stopping a price fall, and leading to a price rally. If it helps, think of support as a floor that supports price.

At this point you might have two questions.

(1) Just because we can identify support and resistance in the past, how does that help us with our trading right now? After all, we don't trade history; we trade the hard right edge of the charts; and

(2) How does this provide us with the opportunity for a higher probability and lower risk trades?

Previous support and resistance can be found in a number of areas - previous swing highs or lows, areas of congestion, round numbers and gaps. When price returns to these areas, there is a good chance that they will once again act as support or resistance. This occurs for one of the following two reasons:

(a) Traders expect it to act as support or resistance, and so trade accordingly, thereby creating support or resistance; or

(b) Traders have a psychological need to trade in this area, which once again creates the support or resistance zone.

The simple fact that we can now expect these areas to provide support or resistance again, and therefore stall and possibly turn price, provides us with a higher probability trade.

And the closer we can get our entry to the point of support or resistance, the lower our risk on that particular trade, because our stop can typically be placed just beyond that support or resistance zone.

In the follow-up articles, we'll look at a number of charts to provide examples for each of the types of support or resistance (swing highs and lows, congestion areas, round numbers and gaps). We'll discuss the reason they occurred (whether due to expectation or a psychological need to trade), and give examples of how these areas can be used to provide a great trade setup.

Till then, review your setups, and ask yourself whether you're planning your trades in an area which provides a low risk and/or high probability trade.

And please remember, although support and resistance allow a trader to identify areas in which price is likely to stall and possibly reverse, there are no guarantees. You need to always ensure proper application of risk and money management.

Happy trading,

Lance Beggs
Copyright 2008. Lance Beggs. All Rights Reserved.

For a continuation of this series of articles, including chart examples of support and resistance at swing highs and lows, and areas of congestion, see my article directory at http://www.YourTradingCoach.com

Reuters - The grim view on consumer spending could worsen this week as investors parse a government report on retail sales and earnings from Wal-Mart Stores Inc , while waiting with bated breath for President-elect Barack Obama's pick for U.S. Treasury secretary.

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Stock Trading Community - Easy Speculation and Proper Calculation

The business of stock market is very difficult and sometimes it becomes quite complex to understand the move of market. You can not speculate the exact movement and direction of market and that is why people consider risk factor associated with the stock market before investing in it. Nowadays Internet has made it somewhat easy to understand the move of market because it has become the hub of people who are involved in this business. You can find some stock trading community here which can make the business a little bit easy.

In fact a stock trading community can be considered as the most important trading community all over the world. These days major global ventures are controlled by this community and with the advent of Internet, stock trading has become easier. The community has ended the era when a trader had to make multiple calls to get the quote from the brokers. Now a person sitting at his home or office can watch his performance and growth at the stock market. Stock trading community is providing convenience and that is why it is growing massively. All aspects of trading like buying and selling of stocks, products, bonds, mutual funds etc. are performed online .

The contemporary 'Day Trading Stocks and Indices' is the result of stock trading community only. You might know that Day Trading refers to buying and selling of stocks or securities within the same day. Some of the other trades generated by this community are betting trade and forex trade. Brokers are the mediators here who carry out the process of trading between the participating investors and they make the necessary arrangement for buying or selling of commodities. They also provide assistance to traders. And traders use their computers to keep track at the brokers and stock market.

This is how the whole community works together and minimise the risk associated with the stock trading. So, if you are interested in stock market, if you want to invest there and if you want to make the good speculations then take the assistance of stock trading community. It makes the online trading very convenient.

This article written by David Jose is on Stock Trading Community. David Jose has been a avert writer on various online trading communities. His work has been published in several places across the web. At present David Jose is contributing towards making MTP a well known and popular online trading community.

AP - Share prices on the London Stock Exchange were lower at midday Wednesday.

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Spot the Day Trading Indicators

Professional day traders always have a strategy, this means that they have a method that is designed to have a positive effect on a certain trade that could last as little as a couple of hours. The day trading strategy is the most popular strategy out there and it is for this reason that many forex experts provide strategies that are used for day trading in the stock market.

The great thing about the forex currency market is that it is particularly liquid, this is the reason that a great number of people can use the same strategies and day trading indicators without having a significant effect on the markets pip prices. The art of being a successful day trader is to have plenty of discipline, there are many times when you may have a loosing day but you will need to be able to look at these loosing days and not worry. This is the mindset of a successful day trader.

If you do not have a set plan of action then you will find it impossible to become a successful day trader, there are far too many other people trading on the stock market. People who trade on the stock market are attracted by the huge leverage and the many other benefits that are available to the day trader. The problem with this is due to an influx of new traders the currency prices can be pushed up and down without the use of any set strategy or system.

It is of utmost importance to know the personality of the market you have decided to trade in, I say this because each market has it's very own characteristics and day trading indicators that must be known by the trader if they are to be successful. Day trading in the stock market is no different, you need to be able to look out for the various day trading indicators and know exactly what these are.

As I have said before the secret to success day trading stocks is to have a good system or strategy and be disciplined enough to stick to it, this way you will be sure to turn a profit.

Get your Momentum Stock Trading System and sign up for my free weekly online trading system newsletter here at: http://www.stressfreetrading.com

Reuters - Stocks ended little changed on Monday as investors picked up bargains on signs of further thawing in credit markets, but were unwilling to place big bets before the presidential election.

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Day Trading Community - A Group of Traders Dealing in Stocks

Online trading communities are become a norm now-a-days. A bunch of people with similar interests come together and form a community. Day trading community is also an online community formed by a group of persons who like to trade in different financial instruments on the same trading day.

Day trading is a term that signifies that you buy and sell financial instruments within the same trading day, whereby all stock positions are normally closed before the stock market closes for the trading day. The positions are not necessarily always to be closed.

People who participate in this kind of trading are called day traders.

So, such like-minded persons join together to form an online day trading community, whereby they share and discuss their viewpoints on various changes in stock market. They may discuss different rates at which various instruments are floating in the market. Some of the financial instruments in which they commonly day trade may include stocks, currencies, stock options, and an array of futures contracts such as equity index futures, interest rate futures, and commodity futures.

Day trading community has its own importance in that people that form this community have similar tastes and way of thinking. They are willing to share information with one another with purity and without any ill will. They are more than willing to pass on any information that may hold key to earning profits in a given day of trading in specific instruments.

A day trading community normally follows certain rules regarding registration of members who want to join such a community. Following certain regulations is a must to avoid any frauds or embarrassing situations.

A day trading community's registration system may ask for e-mail address validation by transmitting a link to the email address that must be clicked on by the person seeking registration to validate the email address.

A day trading community should be clear about what it expects from its members. It can put up expectations in a particular page covering clear community guidelines. A day trading community's communication with its members should be clear, direct, and done frequently. Information sharing can be a powerful tool for such a community.

This article written by David Jose is on Day Trading Community David Jose has been a avert writer on various online trading communities. His work has been published in several places across the web. At present David Jose is contributing towards making MTP a well known and popular online trading community.

AP - A money-market mutual fund that "broke the buck" amid a rush of orders to pull out cash has begun returning an initial $26 billion to investors who had been unable to access their money for more than a month.

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