Forex Education - Free Online Trading University

Being successful! Does that have anything to do with choosing a market to trade? I would maintain that it does. One of the ”Secrets To Success” is to choose something that fits…You. After all, if one of your goals is to achieve a certain income level or net worth figure there are a multitude of ways that someone has been successful with, but probably only a few, that might be “right” for you. This applies just as much to the financial markets as it does elsewhere. If you’re reading this article, probably one of your endeavors is or will be some type of activity in the financial markets. Now which of the markets are “right” for you, meaning the best fit for your circumstances and your goals? Addressing this question will be far more profitable then trading the first market you happen to come into contact with. I’ll help in this process by discussing some of the relevant features of the Forex or cash Foreign Exchange market. One of the first Forex concepts to note is that the currency yo...

When it comes to Forex currency trading, there are some basic character traits and lifestyle elements that need to be in place in order to make a go of this type of trading. Here are some examples of traits and conditions that should exist in your life before you embark on a round of currency trading. Many people are looking for a way to get rich overnight. That there are many scams out there that continually lure people in with wild promises of instant wealth is easily demonstrated by watching television or checking the bulk folder of your email account. While there are some people that attempt to make ridiculous promises about the money to be made in currency trading, the fact is that for many it is just like any other type of work. You must be prepared to put in your time, have some success and also experience some failures now and then. If you are looking for instant success and have visions of spending the rest of your life on the beach after making a killing with currency trading...

FOREX trading refers to an international, 24/7, over the counter, exchange market where currencies of different nations are bought and sold. Trading is always done in pairs assuming the price of currency bought to go up and that sold to fall down. It is the largest liquid financial market making it impossible for any single investor to influence the prices of currencies. There are two kinds of FOREX investing strategies: TECHNICAL ANALYSIS FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS: Technical analysis is mostly undertaken by small and medium size investors. A technical analysis considers factors that are actually affecting the market rather than factors that can affect it. Thus the price quoted reflects all the factors that have influenced it. Only market generated facts and figures are taken into account and factors like fear, hope, expectations or other changes are not considered. Thus the analysis is generally based on these suppositions: • Price reflects all actual market movements. T...

In online Forex currency trading, even just one bad day can make the difference between a profitable month and a losing month. Every day, you have to be at the top of your game because everything depends on you as the one in control of all you do. Even more important than the markets you trade or the Forex currency trading system you use, execution is the key determinant in whether or not you'll make money. If you're feeling lousy, in a pessimistic mood, or just not up to par, this will likely affect your decisions, including whether you stick to your online forex trading system or if you deviate from it - and wind up making bad decisions that result in losses or money left on the table. Here's an example to illustrate. A good friend of mine has been in trading for a number of years. He does very well and has his Forex currency trading fine-tuned to the point that he has that feel for the markets that only comes with long-term experience as a trader. I don't want to emb...

In this article I will cover two important advantages that the Forex market offers to traders. Daytrading with a small account If you want to daytrade with stocks and you have less than $25.000 on the account, you are likely to have a hard life. The reason is that a rule called "pattern day traders" allows you to daytrade freely only if you have that amount or more on your account. If you have less, your daytrades (positions entered and exited the same day) are limited to three in any five trading days period. Your broker should monitor your activity and make sure you do not execute trades that are not allowed under the "pattern day traders" rule. This regulation applies for stocks and stock options. The Forex market at the time of this writing is not involved. Risk Control The Forex market has two characteristics that may translate in a better risk control on your trades. What I mean by risk control, is the possibility to define your maximum loss should the market ...

Today, Forex trading is a popular form of investment for many people, and many of them do not have experience or training in short-term trading. However, there are now two Forex trading systems that can help you with this exciting vocation. First, you have the Mechanical Trading System that works off the premise of technical analysis. The Discretionary Trading System, on the other hand, involves using your experience, intuition, and judgment. It is discretionary because you can choose what factors to use when deciding to buy or sell currencies. Before you stake your preference on either system, let us take a closer look at the benefits and concerns of each system. The first major benefit of the Mechanical System is you can automate this system and back test it when you need to. However, it does have rigid rules you will need to follow. This is a great system if you want to keep your emotions in check as you decide on your trades. On the other hand, the back testing feature is great onl...

By pooling your investment you will have more protection when your investment depreciates and you stand to gain more when it appreciates. One of the secrets of pooled investment is that you will also gain a significant amount of knowledge. This will help to steer you on your way to success. Most clubs are less than three years old, and that nine out of ten have a portfolio valued at less than $10,000. No concerted organizational or promotional effort One of the astonishing developments in stock ownership in the past 10 years has been the wildfire spread of investment clubs throughout the nation. A New York Stock Exchange survey indicates that there are at least 20,000 clubs in existence, with a total membership of more than 277,000 people—and that more are forming, at a phenomenal rate, every day. The market value of the clubs' holdings tops $160 million and they are pouring $2 million of new investment into the market each month. All this is the more remarkable when it is consider...

It would be foolhardy to jump directly into Forex trading without first completing some form of Forex training. While a strictly hands on education is possible, it can be extremely possible during those first few trades. This is especially true of those who have absolutely no knowledge. Knowledge really is power, especially in the case of making a profit from the Forex industry. In order to gain and take advantage of this power it is necessary for traders to learn many aspects of Forex trading. Because there is such a barrage of information associated with the Forex market, one of the most difficult aspects of learning the Forex market is determining which information is relevant. In the case of Forex trading, relevant data is that which would seem to point towards or against a movement in currency prices. Armed with just a single piece of useful information, traders already have the beginning of a trading strategy or a trading system. It will usually be necessary to refine information...

The Forex market seems to be one of the hottest markets right now. Let’s take a look why It takes small amount of capital to get going and you get leverage with it. This is important because a lot of people entering the market are looking for ways to make money and not just to invest their spare cash. Leverage means that you can use other people’s money to make your investment bigger. Not to try to scare you but this also introduces greater chance for Loss. This is not for the faint hearted or people not willing to learn how to trade, understand their trading phycology and follow money management rules. Having been duly warned please keep reading about the great potential and positive aspects of Forex trading. Leverage is a very powerful tool to make money very quickly. The Forex Market is the largest in the world worth more than a Trillion dollars a day. This is important for many reasons: It provides amazing liquidity. There are always people ready to buy and sell so you can always e...

Forex trading has entered the home and lives of many people around the world, both men and women; all of them coming from many walks of life. Being this a relatively new phenomenon in the department of alternative income opportunities. It was only about ten years ago that the Forex market moved into our homes. And this was made possible only thanks to the invention and rapid spreading of the internet. The technology that made online forex trading possible. Before the internet era, trading was an activity reserved only to the big players, banks, brokerage firms, in short; only wealthy people could aspire to enter the currency markets. But the arrival of the internet and the online trading platforms available for downloading, most of them free of charge, to the computers of regular citizens have come to transform the face of forex currency trading in a few years. The easy accessability to the forex markets and the ever increasing number of new forex traders that has taken place in the la...

The Forex market is widely known by its high liquidity and high volume of transactions occurring during most of its long trading week. These characteristics highly contribute to make the Forex market a very trendy market with few trend-less periods during the whole trading period. But what does this mean to the Forex trader? Mainly this trendy characteristic of the currency markets means that there will be plenty of opportunities for the trader to find profitable trades during the day. As you start analyzing forex charts you will realize that the market often display's some very familiar patterns of price movement, this is; trends; and you will notice that once a pattern is established, it becomes the most probable course of future price action until the market changes. Giving you a good forecast of what comes next with the currency prices. There are two types of markets which will become very important for you to identify and understand; these are: trending and, the less frequent,...

Learning the basic skills in forex, such as how to read forex charts, is really important. This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system. By the time you finish this article, you'll learn how to read forex charts, as well as know the pitfalls that can occur when reading them, especially if you haven't traded forex before. Firstly, let's revise the basics of a forex trading as this relates directly to how to reade forex charts. Each currency pair is always quoted in the same way. For example, the EURUSD currency pair is always as EURUSD, with the EUR being the base currency, and the USD being the terms currency, not the other way round with the USD first. Therefore if the chart of the EURUSD shows that the current price is fluctuating around 1.2155, this means that 1 EURO will buy around 1.2155 US dollars. And your trade size (face value) is ...

Leverage is essentially the amount used in a trade compared with the security deposit needed by the broker, for that trade. Forex offers the most leverage of any form of investing, which for most brokers, is 100:1, so if you put in $1000, the broker will make that $100 000 when you are trading. So by investing $1000, you are able to control $100 000 worth of currency on the market. This is what allows traders to pull in such impressive incomes and is also the downfall of less experienced traders if you don’t manage your equity properly and use stop losses. I’m going to introduce you to mini account trading where you can get started and lose a number of times without losing any hair in the process. Regular, full-sized accounts require $5000 to $10000 to really start implementing an effective equity management plan, that is, you can only lose a few times before you’re out of the game if you don’t have that much money and as we all know, by trading intelligently, you can maximize the odds...

What are *PIPS* ? Currencies are traded on a price/ point (pip) system. Each currency pair has its own pip value. When you see a FOREX price quote, you'll see something listed like this: EUR/USD 1.2210/13 Explanation: a) If you want to BUY the EUR/USD ( meaning you BUY EUROS and SELL US$ ) you buy 100,000 EUROS and you SELL 122,130 US$, or in other words you receive 122,130 US$ for 100,000 EUROS. B) If you want to SELL the EUR/USD ( meaning you SELL EUROS and BUY US$ ) you buy 122,100 US$ and sell 100,000 EUROS, or in other words you receive 100,000 EUROS for 122,100 US$. The difference between the bid and the ask price is referred to as the spread. In the example above, the spread is 3 or 3 pips. Since the US dollar is the centerpiece of the FOREX market, it is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the secon...

HOW TO predict the Future ? by studying the Past (Technical Analysis): 1) The best traders don't discount one or the other but understand that having an understanding how the fundamentals influence market sentiment gives him/her an edge over those traders who don't. 2) In my opinion, TECHNICAL analysis is the easiest and most accurate way of trading the FOREX market. 3) "The number's don't lie" - all available information and its impact on the market, are already reflected in a currency's price. 4) Prices move in trends - the foreign exchange market is mostly composed of trends and therefore a place where technical analysis can be very effective. 5) History repeats itself - over time, certain chart patterns become consistent, predictable and very reliable. The question is SEEING them. PRICES MOVE IN TRENDS The traders who don't believe this obviously have no need to implement a trading methodology on technical analysis. But, research has shown that tho...

A Forex or Stock broker in the world of finance will be a great asset to you. The ramifications of brokerage are many, but the central concern of every good house is the service it provides its customers. Not just its rich customers, either. Read the ads. Analyze the educational and promotional literature brokerage houses are putting out, and you will see that much of it is directed at the small investor. Have no fear that you will get a cold eye or a second-class treatment because you have only a few hundred dollars to invest, or simply want to start a $40-a-month Investment Plan. These days, everyone is welcome. Be frank with your broker. The more you can tell him about your circumstances and objectives, the sounder his advice will be. There are more than a thousand stocks listed on the Big Board alone. Their prices differ, their yields differ, the reasons for buying any one of them will differ. Your broker can help you narrow the choice more sensibly if he has an idea of your income...