Forex Education - Free Online Trading University

Today I would like to talk with you about a few very important rules of investing in the Forex market. If you follow these rules, you will most surely come out on the winning side in the long run. Rule number 1 is never risk more money than you can afford to lose. No trader is perfect, you are going to have losing trades. There is no system you can learn that wins all the time. So expect to lose some money. Rule number 2 is to cut your loses short and let your winners compound to greater gains. The secret to not losing your shirt is to use stop loss orders consistently and not let your emotions rule your trading. It's better to lose a little and get out of a trade than to hope that things will turn around and suffer a devastating loss. If you are using the proper techniques and strategies on how to trade, you can usually tell right away if your trade is going in the right direction. If it's not, get out of the trade. There are always more opportunities to get into the market an...

This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain the following articles . . . 1. What is Forex 2. Technical analysis 3. Fundamental analysis 4. Money management 5. Compound interest What is Forex? The word Forex is an acronym for The Forex Exchange Market. This is the most liquid market on the world where you can trade or exchange one currency for another. For example, if you think that the Euro will appreciate in value and you have US dollars, you can trade the dollars for the Euros. If you are right and the Euro appreciates in value in relationship with the dollars, then you can close the position realizing a profit. That’s the basic idea behind the Spot Forex Market. This is an interbank system which means that it is not centralized. There is no central exchange where currencies are traded. It is a global market. You can trade Forex online 24 hours per day, 6 d...

Foregin Exchange is one of the most popular investing markets, and with a proper understanding of the markets and factors influencing it it is possible to enjoy great success in terms of returns. A case study which highlights all of the areas and considerations when it comes to Forex investments is not hard to come by - in fact, recent years have shown that even countries which may be overlooked by traditional investors may provide the greatest opportunities when it comes to investment. A good example of the success that can be had in the foreign currency exchange is that set by the Canadian dollar. Most Americans pay little mind to Canada - it is the big country up North, most of the time it creates no problems and can be a compliant ally. Taking a nation and its economy for granted can be a huge mistake when it comes to foreign exchange, however. Six years ago, the Canadian dollar was worth sixty cents when compared to the American greenback. This fact was intrinsically noted by many...

With the growing popularity and easy access to the foreign exchange (ForEx) market, more and more people are drawn to it as their financial vehicle of choice. Along with this popularity come all the extras. This includes all kinds of software, trading systems for sale, books, videos, and third party signal party providers. Today I’m going to touch on a few points when seeking out a third party forex signal provider. Before we get into choosing a provider we need to have a good understanding of what a third party signal provider is. A signal provider is a trader or analyst that generates trades that in turn get placed on your account. You can have several signal providers trading your forex account or just one. Like anything else, all third party signal providers are not created equal. At first glance a trader may look like a home run. That same trader may well end up completely torpedoing your entire account in one afternoon. To help make sure this doesn’t happen we’ll set down a few g...

Foreign exchange trading, in the way that we know now it, would not exist if it were not for the rapid development of forex trading software. These software packages allow forex traders to work from their own personal computers and to interact with the large trading platforms that actually oversee and place forex trades. In addition to being the tool that traders use to complete their deals, many of these software packages also contain multiple sources of information that investors will find very useful. Everything from current pricing to performance history can be looked up in short order using forex trading software. Quick fact : The Forex market is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. One site that offers their own version of forex trading software when you open an account with them is forex. com. This cust...

There are risks involved with FOREX trading, and even though getting started trading is not difficult FOREX trading is not simple. It is very important for anyone interested in trading on the foreign exchange to learn as much as possible about the market before they start trading. Foreign Exchange market trading in a very rapid growing field that offers some significant advantages over other investment methods. However lots of people are reluctant to become involved basically because they lack the necessary knowledge. This guide will help explain the basics of FOREX trading so that you can participate in this market trend. At once the Foreign Exchange market was restricted to very large players such as national banks and corporations. In the 1980's though the rules controlling the market were changed to permit smaller investors the chance to participate using margin accounts. Margin accounts are the primary reason that FOREX trading has become so popular, with margins of 1:100 you ...

Everybody hates to lose and unfortunately no one is blessed with the ability of foresight, therefore losses are an unavoidable part of trading. When we enter a trade we will either be right, or wrong, and even if we broke-even we'd still be classed as being wrong - as nobody enters into a trade just to break-even! When unsuccessful traders encounter a string of losses they begin to engage in self-destructive patterns that help them escape the pain they are experiencing. Bring to light these self-destructive actions that can help you realize what you are doing before it takes hold of your physical health. If you find yourself already engaged in these patterns hopefully this article can help you to get you back on track as quickly as possible. What are the destructive patterns? If you find yourself caught in a string of losses or a bad performing week/month be sure to monitor your behavior. It is during this time that you will be at your most vulnerable. You will begin to indulge in ...

It is a fact that the internet is one of the most important tools of modern society. With it, you will be able to communicate with your loved ones, shop for clothes, book your flights, and even do your groceries. Businesses and companies are taking advantage of the internet to increase their reach to potential customers. Besides, since millions of people are using the internet everyday, it is definitely a great idea to start a home based business and make money through the internet. One of the most lucrative and also the largest market in the world is FOREX or the Foreign Exchange. This particular market operates 24 hours a day and 7 days a week. With over 1.5 trillion dollars being exchanged in the market every single day, you will see that the FOREX is definitely one of the best markets that you can ever enter. In the past, the FOREX market was limited to large financial institutions. However, thanks to the internet, even regular people like you will have a chance to get a piece of t...

The concept of automated Forex trading system is mind-catching. Before the automation of the Forex market, exchange-traded futures market was the first to switch on automation. Then, the traders on the Interbank spot FX market decided to catch up with the latest trend and moved too to the new system. Automated Forex trading system enables traders to execute their trade on spot Forex market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are various features included in the automated trading system, such as: • Automatic trailing stops especially if the trader is losing in a particular trade position; • Account equity management; • Stop and/or limit orders; • Discretionary market orders; and • Various technical analysis indicators within your discretion for enabling trend-following systems. Automated Forex trading systems supports most of the following indicators (the technical support will depend on the technology used as well...

Trading the Forex market has become very popular in the last years. Why is it that traders around the world see the Forex market as an investment opportunity? We will try to answer this question in this article. Also we will discuss come differences between the Forex market, the stocks market and the futures market. Some of the benefits of trading the Forex market are: Superior liquidity Liquidity is what really makes the Forex market different from other markets. The Forex market is by far the most liquid financial market in the world with nearly 2 trillion dollars traded everyday. This ensures price stability and better trade execution. Allowing traders to open and close transactions with ease. Also such a tremendous volume makes it hard to manipulate the market in an extended manner. 24hr Market This one is also one of the greatest advantages of trading Forex. It is an around the click market, the market opens on Sunday at 3:00 pm EST when New Zealand begins operations, and closes o...

Forex trading is one of the best business opportunities you can think of joining these days. No other market in the world allows the “Leverage” that the profitable world of currency-trading does. Leverage is all about margin trading. In the Forex market, it is essentially the ratio of the amount used in a trade to the required security deposit needed, by the particular broker you chose to use, for that trade. Normally, for most brokerages, a margin deposit of just $1,000 allows you to control a $100,000 position in the Forex market. That's 100:1 leverage, or 1%. Or, said in a different way, a “regular full-sized account”, sometimes referred to as a 100k account, allows you to trade with lot sizes equal to $100,000. Each lot is worth $100,000 in currency. So It would only require $1,000 to trade one lot. This great feature in Forex trading is what makes this market the hottest market to trade in right now. The Forex broker has given you a loan of $99,000 dollars secured only by your...

The US dollar was the big story in 2007 — if you were selling it. Compared to 2001, the value of the dollar has gone down by 40 percent against the euro. And values at the beginning compared to the ending of 2007 were significantly down: the dollar was down about 13 percent versus the euro, 10 percent versus the yen, and 8.5 percent versus the pound sterling. Its value was at such a record low that supermodels and popular rappers made public their preference for getting paid in Euro, no dollars, please. The US dollar did stop skidding towards the end of 2007, but the question now becomes: has the dollar bottomed out or will the slide continue in 2008? Why the Dollar Weakened in 2007 The dollar seemed so weak in 2007 because the rest of the global economy continued to grow even as US growth stalled, due in part to steady demand from the Middle East, China and India markets. Countries acted more independently, as illustrated by the Australian central bank’s decision to increase rates to ...

First of all, what is Forex? It is a short version of FOReign EXchange. It is also called FX and 4X, but regardless of the name you use, it is the largest financial market in the world. From 1997 to the end of 2000, daily Forex trading has skyrocketed from $5 billion to over $1.5 trillion.. Let’s look at some reasons why Forex trading is rapidly gaining popularity over other markets. Trading hours: The Forex market is traded 24 hours per day from about 7pm EST on Sunday until about 3pm EST on Friday. The stock market is only traded Monday thru Friday with limited hours. Liquidity: Forex markets trade over $1.5 trillion each day while the stock market only around $200 billion. There are only 7 major currencies traded on the Forex while there are more than 40,000 stocks from which to choose. Commissions: No commissions are charged on the Forex while the stock markets charge high commissions and transaction fees. Leverage: Forex Market offers great leverage power. Brokers usually offer fr...

Forex trading or Foreign Exchange Trading refers to the simultaneous trading—that is, buying and selling—of two different currencies. It is done between and among major financial institutions, central banks, small retail currency traders or speculators, large international companies, government institutions, companies with overseas operations and the like. Based on the amount of money being traded, the international forex trading market is the world’s biggest financial market. Everyday, forex trading market gets an average revenue of $US 1 trillion—an amount far greater than the total revenues produced by all the stock and bond markets in the world. Characteristics Forex trading is a kind of over-the-counter trading—it occurs directly between to financial institutions or currency traders. The trading markets may be interconnected but there is no single unified market. Hence, there is also no single or standard rate. Each rate or price depends on what is being traded. However, the trade...

There are many benefits and advantages for trading currencies on the Foreign Exchange, better known as Forex. The Forex Exchange was established in 1971. This market grew at a steady rate throughout the 1970’s, but in the 1980’s Forex grew from trading $70 billion per day to over $1.5 trillion each day. There are many huge players in Forex, but it is accessible to the individual trader. Each lot traded is worth approximately $100,000. By using leverage, an individual trader is only required to have a $1000 investment in the trade. This is a 100:1 leverage. No other market offers this amount of leverage. Forex is also an extremely liquid market. Because it is so large, you can buy or sell in only seconds where your trade is only a mouse click away. You can also preset an automatic close for your position. This means you don’t have to sit and watch your position, just place the trade, set an exit point and go what you want. Forex trades virtually 24 hours, 7 days a week. It only closes f...

Some Forex traders dream about finding great set and forget forex trading signal services which are easy to follow, profitable and convenient. They would then just copy the daily currency recommendations into their Forex broker dealing station and watch their trading account grow and grow. A short while ago over 250 online Currency trading alert services were reviewed and alert services like the one described above do exist! The big challenge to the average Forex Trader is firstly, finding forex trading signal services that fit the success mould and then secondly, making sure that the service is credible. This article will address the first question of how to find possible currency trading alert services to consider. The technique mostly used by many forex traders is to search the Web using a good search engine and then to slowly search through the results to find say 20 alert services to consider for evaluation. This is a good starting point but remember to uses appropriate search ter...

To a newbie learning Online Forex Trading, it looks very simple in the beginning. Take currency pair EURUSD for instance, if you bullish on Euro, simply place a Buy order. Bearish on EUR, just short it. So easy, you may ask? The truth about Forex Trading is that it is a professional activity that not many traders will succeed. I will just go through a few very straight forward pointers on how to consistently generate Forex pips. In the world of Forex currency trading, many newbie traders believe that Forex trading software or system that contains rocket science is more likely able to make money. It may be true, but how many of us will be able to find such a system or methodology? Why not just spend time and money to learn systems or trading methods that are simple but works? In the Forex currency trading, the fact is simple systems just work best. Simple systems are more robust and easier to trade as you understand the logic and can therefore follow it with confidence when you are in a...

There are several external factors that affect Forex currency trading. These factors include trade reports, GDP, unemployment, international trade, manufacturing etc. The growth or decline in these factors affects a country’s currency value. Foreign exchange is a continuous global market, providing a 24-hour market access to its players. Since it is open only 5 days a week, so weekend is the closing period. Although foreign exchange is the most liquid of all markets, the fact that it is an international market and trading 24-hours a day, the time of day can have a direct impact on the liquidity available for trading a particular currency. The major centers and time zones are that of Sydney, Tokyo, London, and New York. Therefore, forex alerts must consider which players are in the market, since in the modern interconnected financial world, events that occur at any hour, in any part of the globe, can affect some or all parts of the investment community. In forex trading, you are not ign...