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.

Beginners and Online Forex Trading

Forex trading might look like a complex puzzle for many individuals who would like to make money trading in the currency markets. However, let me assure you that Online Forex trading is one of the simplest things to do and is not that complicated as it sounds. Finding out details about trading and doing a bit of research on your own can help asses the concept of online Forex trading. If you gain the necessary skills then Forex trading can become one of the easiest ways of making money online. Beginners need to grasp the basics of Forex trading and build a good foundation about the concepts before they start trading.

First and most important thing for beginners is to understand the difference between Forex and Stock markets. Forex or Currency markets also referred to as FX markets is a place where currency trading happens. This market involves in the activity of buying or selling of currencies. Therefore, to become successful in the online Forex trading activity it is important to understand the concepts of Forex trading and develop a keen sense of knowledge for various currency pairs. Beginners can get involved in this trading activity by starting out with small amounts of money and build steadily as they go along. These accounts provide demo practice lessons to individuals for grasping the concept of online Forex trading.

While understanding the difference between Forex and Stock market trading there is a need to focus on leading currencies of the world. These main currencies include US Dollar, Euro, Canadian Dollar, Swiss Franc, and Japanese Yen. There are fourteen such currencies, which forms a huge percentage of Forex market transactions. However, in stock market there are thousands of scrip’s that can be confusing for any beginner interested in trading. Online trading can be done 24 hours a day. Therefore, the possibility of performing your trading activities during your free time is a high possibility. Unlike the stock markets, everyone can get involved in online Forex trading in their free time.

Forex trading also offers the great scope for margin trading that allows beginners to start with an initial investment of $50 – $100 and buy the required number of units of the currency pair that they want. With a small change in price, there is a guarantee of good returns in this online trading activity. Due to the high volume of transactions, the disposal is quick and easier. As such, there might not be any account opening or brokerage charges involved while opening a Forex trading account. The commission charged is calculated depending on the difference between buy and sell price of the transaction.

Beginners should also note that there are no physical documents involved in the trading activity. The trading system will keep an account of the necessary buy-sell status for you transactions. Due to the global nature of currency markets, the possibility of manipulation of currency markets is not possible. Therefore, it can be safely assumed that knowledge gained from various research activities can help the beginner earn money in the Forex markets. For beginners the only requirement is to open an account with any of the reputed Forex trading agencies and transfer the initial trading deposit using Pay pal, wire transfer, and many other online sources to get started.

Online Forex Trading Tools – Understand the Various Options Available

Online forex trading tools are of great help to new forex traders. Even experienced traders often rely on some of these tools to confirm their trading decisions. Due to global connectivity and telecom revolution, forex trading is no longer restricted to large corporations alone. Retail investors too are entering the forex market in a big way with the intention of making money.

Forex market is the largest financial market in the world both in terms of size and volume of transactions handled. It can be risky to start trading forex on your own without any formal forex education or without the help of a reliable forex trading tool.

The major disadvantage of any online product is the possibility of it being a scam. It is very easy to make up false product performance statistics and post them on the Internet. Therefore beware of online scams. Ensure that you carry out proper research to establish the authenticity of information and claims made by the product developers online.

The various options available for you to choose your online forex trading tools are

1. Trading platforms of existing professional traders

A number of successful professional forex traders market their own trading systems online. Check out the reputation of the trader to begin with. If possible verify his / her background over phone with other traders known to you.  Being backed by an existing successful trader, such systems normally deliver whatever promised.

2. Expert advisor

Expert advisor is another online forex trading tool which is very reliable in analyzing charts and making automatic trading decisions. Automated forex trading robots are particularly useful to new forex traders. Robots are programmed to make trading decisions on its own without any human intervention.

3. Forex forums

By participating in popular forex forums, you can get a lot of information on online forex trading. With the help of these forums you can seek advice from experienced traders who are already making use of reliable online tools for trading forex. Information regarding new products launched is also exchanged amongst users of forex forums.