Forex traders have to know these 7 things before they can start trading:
1) Don't use indicators - They are just blocking your view of what's important. Learn price action and you'll be miles ahead of the competition.
2) Learn the concept of money management - It doesn't matter what kind of trading system you are using. If you don't know how to manage your money, you will never make it in this business. Too many people are just overleveraging their account, until it eventually crashes and you are left with no money.
3) Don't rely on demo trading for too long - The normal tendency is to trade on demos on until you feel comfortable trading. The problem is that people just abuse the demos. They trade for so long without any kind of risk that they just can't handle when they trade with real money.
4) Maintain your poise - One of the hardest things traders have to deal with is what happens when trades go against them. Certain traders just can't handle this. Expect to lose once in a while, and you won't be so disappointed.
5) Start off small. Do some mini trading - Once you got the demo trading out of your system, start off trading on a mini account. Chances are you aren't quite ready to play full lots (both financially and emotionally).
6) A Margin Ratio of 200:1 - I thinks that gives you enough room to trade comfortably without having to worry about getting a margin call.
7) Understand how news moves the market - It's a forex trading certainty. The economy will always have news coming out, and you best be prepared for it, if you want to succeed. Too many people disregard this aspect of trading.
By George Kramer
Managed Forex - What are The Pros and Cons?
The decision to invest in a managed Forex account can be a difficult one. This is a significant decision just like any investment you might make. The big difference in this investment compared to others is the leverage used.
The leverage is actually borrowed money that the broker has given you. Because you are borrowing money you give them the right to close any trade as they need to protect themselves. If you agree to this then sign up and start trading.
If you have made the decision to invest in the Forex market then there are three different accounts you can invest into: standard, mini, and managed. Each option has both pros and cons and it will be up to you to decide which account is best for your needs.
1. Standard. This type of account is the most common. Basically you have access to a major amount of currency. The worth is $100,000. You do not have to put the $100,000 down in order to do trading. Basically, you need $1,000 in the account for t his to work.
Pros Forex brokers will often times give extra benefits and services to this type of account. The potential gain is also the very high as you are investing a serious amount of money into each and every trade.
Cons Capital Requirement - Most brokers would require you to have a starting balance of at least $2,000 and others more than that. Potential to Lose - Just like you could make $1,000 a day, you could also lose that $1,000 in a day.
2. Mini - This account allows money to be moved in blocks or lots. The mini lot is roughly $10,000.
Pros Risk - The risk is much lower because you are using such smaller lot sizes. This is great for who have little to no experience trading the forex market. It also allows for you to test out trading strategies with less risk. Capital required - The amount to start an account can be as little as $250.
Con Low reward - Because you are risking such a small amount of money then of course the potential gains will be much smaller.
3. Managed Account - The managed Forex account is different than the others. You allow your money to be traded by a professional trader in the hopes that he can do a better job than you.
Pro Professional trader - A trader with years of experience will be trading your account giving you more time as you will not have to constantly watch the market.
Cons Fees - You will be required to pay a fee of 20% to 50% of all the gains made on the account each month. Capital - Most managed accounts will have a minimum investment amount of $5,000 to as much as $100,000.
It is always wise to research as much as possible to see which option best fits your needs. Always remember it is your money and you have to be the one watching over it.
By Ryan D. Moxie
The leverage is actually borrowed money that the broker has given you. Because you are borrowing money you give them the right to close any trade as they need to protect themselves. If you agree to this then sign up and start trading.
If you have made the decision to invest in the Forex market then there are three different accounts you can invest into: standard, mini, and managed. Each option has both pros and cons and it will be up to you to decide which account is best for your needs.
1. Standard. This type of account is the most common. Basically you have access to a major amount of currency. The worth is $100,000. You do not have to put the $100,000 down in order to do trading. Basically, you need $1,000 in the account for t his to work.
Pros Forex brokers will often times give extra benefits and services to this type of account. The potential gain is also the very high as you are investing a serious amount of money into each and every trade.
Cons Capital Requirement - Most brokers would require you to have a starting balance of at least $2,000 and others more than that. Potential to Lose - Just like you could make $1,000 a day, you could also lose that $1,000 in a day.
2. Mini - This account allows money to be moved in blocks or lots. The mini lot is roughly $10,000.
Pros Risk - The risk is much lower because you are using such smaller lot sizes. This is great for who have little to no experience trading the forex market. It also allows for you to test out trading strategies with less risk. Capital required - The amount to start an account can be as little as $250.
Con Low reward - Because you are risking such a small amount of money then of course the potential gains will be much smaller.
3. Managed Account - The managed Forex account is different than the others. You allow your money to be traded by a professional trader in the hopes that he can do a better job than you.
Pro Professional trader - A trader with years of experience will be trading your account giving you more time as you will not have to constantly watch the market.
Cons Fees - You will be required to pay a fee of 20% to 50% of all the gains made on the account each month. Capital - Most managed accounts will have a minimum investment amount of $5,000 to as much as $100,000.
It is always wise to research as much as possible to see which option best fits your needs. Always remember it is your money and you have to be the one watching over it.
By Ryan D. Moxie
Currency Converters And The Foreign Exchange Market Explained
Vast amounts of money are being poured into the foreign exchange money each year. It has been reported that many billions of dollars are benefiting investors all over the world- making many the fortune of a lifetime. But before a lifetime on easy street can be obtained, there's much to learn. But not to worry, an investor's life is made easier thanks to forex calculators.
A foreign exchange calculator's most basic use is to determine what may or may not be a good investment. One can easily find updated rates on many different currencies, past rates, and even projections on how the rates will continue to fare. Armed with this knowledge, investors will be able to make a huge sum of money off each bit of money invested- assuming market conditions are pristine.
When investing in another currency, the investor hopes that the currency being converted from raises in value so that converting back will create a large return on the initial investment. Of course there are other ways of making money in the foreign exchange market, but this provides some of the quickest and biggest gains, depending on the investment amount.
The foreign exchange market uses currency as its basis for working- meaning there are many different ways to work the market to one's advantage. Doing so will cause need for a multi-purpose forex calculator that will be able to display multiple currencies at a time in relation to a specific currency. Some advanced calculators even show results starting with the most popular currencies, so as to better appeal to the common investor.
The next stage in the process is to track all currencies that an investor is watching. After all, if a currency increases in value over time, isn't it safe to say it will continue to do so in the near future? This isn't always true, but more often than not, this simple rule makes investors quite a bit of money. Foreign exchange calculators should be able to track several different currencies for investors in this case, which usually requires a user registration for tracking purposes.
As a final note, the perfect foreign exchange calculator should be able to make use of newer technologies for a quick and simple solution to an investor's problem. Technologies such as AJAX or Java should be used, where results can be displayed quickly and effectively- even without a page refresh. This is in comparison to technologies such as PHP, where the process can be lagged down by the constant need to refresh the page after each calculation.
Closing Comments
The foreign exchange market is a very risky game. If one is to play it, it should be done so in a wise manner. There is a need for a handy calculator for foreign exchange market calculations and tracking methods, not to mention an effective way to check values without and delay or latency. In obtaining such a calculator, odds of making a successful return on investment are much improved, and investors are better off as a result.
By Chris Channing
A foreign exchange calculator's most basic use is to determine what may or may not be a good investment. One can easily find updated rates on many different currencies, past rates, and even projections on how the rates will continue to fare. Armed with this knowledge, investors will be able to make a huge sum of money off each bit of money invested- assuming market conditions are pristine.
When investing in another currency, the investor hopes that the currency being converted from raises in value so that converting back will create a large return on the initial investment. Of course there are other ways of making money in the foreign exchange market, but this provides some of the quickest and biggest gains, depending on the investment amount.
The foreign exchange market uses currency as its basis for working- meaning there are many different ways to work the market to one's advantage. Doing so will cause need for a multi-purpose forex calculator that will be able to display multiple currencies at a time in relation to a specific currency. Some advanced calculators even show results starting with the most popular currencies, so as to better appeal to the common investor.
The next stage in the process is to track all currencies that an investor is watching. After all, if a currency increases in value over time, isn't it safe to say it will continue to do so in the near future? This isn't always true, but more often than not, this simple rule makes investors quite a bit of money. Foreign exchange calculators should be able to track several different currencies for investors in this case, which usually requires a user registration for tracking purposes.
As a final note, the perfect foreign exchange calculator should be able to make use of newer technologies for a quick and simple solution to an investor's problem. Technologies such as AJAX or Java should be used, where results can be displayed quickly and effectively- even without a page refresh. This is in comparison to technologies such as PHP, where the process can be lagged down by the constant need to refresh the page after each calculation.
Closing Comments
The foreign exchange market is a very risky game. If one is to play it, it should be done so in a wise manner. There is a need for a handy calculator for foreign exchange market calculations and tracking methods, not to mention an effective way to check values without and delay or latency. In obtaining such a calculator, odds of making a successful return on investment are much improved, and investors are better off as a result.
By Chris Channing
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