Forex Trading Education

2005-08-15T19:42:00.000Z

Forex Trading Education

We have listed the best Forex Trading Education programs that will help you increase your trading earnings!
Top Forex Trading Education ProgramsAugust 15, 2005Dear Friend,
Your Forex trading education doesn't just start the moment you place an order, it happens as you research your investment.
An easy way of staying abreast is to not only updating your investment vocabulary, but also learning more through courses and reading the news.
Don't �ttempt to trade until you are receive the education and training to become a successful trader. There is substantial earnings to be made in the foreign currency market, but trading in the Forex is for the well-informed.
Want to learn how to make $200 to $3,000 for as l

2005-07-29T19:46:00.000Z

Discover the Biggest Trading & Investing Online Mistake

In other words, they end up going on an emotional roller coaster, governed by how the market performs.
Without a trading plan, the majority of traders approach the financial market in an inconsistent manner - i.e. they follow their whims. The typical pattern may include the following:Day 1 - experiment with option trading;
Day 2 - randomly select any online trading brokerage firm;
Day 3 - try out future trading;
Day 4 - read about oriental trading then decides to go into that direction;
Day 5 - change mind completely and try currency trading or forex trading;
Day 6 - try day trading then in midstream chooses to hold trade for the long term;
Day 7 - venture off into stock trading;
Day 8 - dabble in commodity trading;
Day 9 - give up because you think it is a hopeless cause.This example is meant to look confusing. Similarly in the illustration above, this trader may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely set of new rules.
Unfortunately, with no consistent approach, your trading decisions, governed by emotions, are doomed to failure �� here is why.
When faced with losing money in the market, what do traders do? Usually, they end up rationalizing to hold on to a losing stock. The driving force behind this is that they do not want to be wrong. They let their ego get in the way of making profits.
Look! Let us set the record straight. THIS IS A FIRM FACT - not every trade will be a winner. You will not make the maximum profit out of every trade. There is no Holy Grail trading system! You just need a trading plan, which matches your personality.
When I say trading plan, I am not talking about fundamental analysis or technical analysis specifically, I am talking about setting up a simply a set of guidelines to follow regardless of what stock selection method you use.
In fact, through a study of successful traders, I found there are many different trading methods for entering a security. I have seen pe

2005-07-29T11:22:00.000Z

Welcome To The World Of Forex Trading

If you are new to the FOREX market, it is recommended that you find a FOREX broker to help with your transactions.
There are a wide variety of brokers, available to you, so be prepared to ask some questions. These include:
1. What is your spread? (Hint: The lower the spread the more money you make!)
2. What are your credentials? (Hint: There are certain affiliations you should look for.)
3. What tools are available to help me learn more? (Hint: Not all broker firms are created equal. Find out who offers the best resources and information to help you make the smartest trading decisions.)
4. What is your leverage? (Hint: This is the determining factor on how much money you are able to make with each investment.)
These and others will help you find the right FOREX broker to fit your personal needs and trading style. Don't settle for the first broker you come across!
Using technology to your advantage
The FOREX market has made an amazing transformation since the advent of the internet. Technology has now made it possible for smaller investors to play on the same level as larger corporations and banks.
With as little as $300 dollars, anyone with a computer and a will to succeed can start trading currencies from the privacy of their home or office. Online FOREX trading has changed the way that investors do business.
With access to your portfolio 24-hours a day, it is really very simple to get started. You can choose whether to hire a professional to handle your transactions, or you could choose to do them yourself.
Getting a competitive edge - FOREX trading strategies
The FOREX market is not an exact science, but there are several FOREX trading strategies that you can use to improve your odds.
The two most common analysis methods are technical and fundamental analysis.
Each method has its advantages and drawbacks, and may take some time to master. The important thing is to know the different indicators and reports that have an affect on the FOREX market.
Once you understand what to look for you will have a better chance for success.
It doesn't matter whether you are an experienced stock or bond trader looking to expand your portfolio, or are a beginner to the world of FOREX trading, with a little bit of research you should be up and running in no time.
Spend some time researching the options available to you, to ensure success and ask questions.
Brian Channell is an online entrepreneur. Please visit www.MyForexEducation.com to learn more about Forex trading.
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2005-07-29T04:17:00.000Z

Forex trading for the little guy

Many equity markets, on the other hand, operate in a completely different fashion; the New York Stock Exchange, for instance, is the sole place where companies listed on the NYSE can have their stocks traded.Centralized markets are operated by what are referred to as specialists; market makers, on the other hand, is the term used in reference to decentralized marketplaces.
Since the NYSE is a centralized market, a stock traded on the NYSE can only have 1 bid-ask quote at all times. Decentralized markets, such as foreign exchange, can have multiple market makers - all of whom have the right to quote different prices.
Centralized Markets
By their very nature, centralized markets tend to be monopolistic: with a single specialist controlling the market, prices can easily be skewed to accommodate the interests of the specialist, not those of the traders.
If, for example, the market is filled with sellers from whom the specialists must buy from but no prospective buyers on the other side, the specialist will be forced to buy from the sellers in be in a situation where they cannot sell a commodity that is being sold off and hence falling in value.
In such a situation, the specialist may simply widen the spread, thereby increasing the cost of the trade and preventing additional participants from entering the market. Or, specialists can simply drastically alter the quotes they are offering, thus manipulating the price to accommodate their own needs.
Hierarchy of Participants
While the foreign exchange market is decentralized, and

2005-07-28T19:20:00.000Z

Why Forex Traders Plan To Fail Before They Even Place Their First Trade

hy Forex Traders Plan To Fail Before They Even Place Their First TradeHave you heard the wise saying that a trader who fails to plan, plans to fail? I have, and I was once that trader!However, did you know that even though traders who have constructed a plan, which incorporates their trading stategy (their "edge"), they have a plan that is likely to fail?
If we look at all traders who participate in the market: we have one group that fails to plan and therefore plans to fail; another group whose plan is failed; and a third group who properly plans and therefore does not fail.
Is it any wonder that the success rate for forex traders is so s

2005-07-27T04:51:00.001Z

Trading as a Business

Consequently, a random selection of letters or phone calls received by a company that sells a trading program often will overstate the proportion of traders who are doing well.
Sometimes the cause of the selection bias is not obvious. For instance, let's say that a trader who purchases a very expensive price and charting package is more profitable than another trader without it.
The merits of the package seem obvious. Maybe not. It could be that the individual who can afford to purchase the package is better capitalized than the other trader and this is the reason for the better performance.
Starting off your futures and options trading experience with unrealistic expectations inevitably will lead to frustration and disappointment. It's better to face reality now. It will make life as a trader easier down the road. Here are just a few facts to dispel those unrealistic expectations.
1. More traders lose money than make money. The figures are fuzzy, but it is 80% to 90% (maybe more) who end up losers and leave.
2. Within the industry, only a small percentage of retail traders are profitable on a consistent basis.
Moreover, if you are just starting out, you should expect to incur some loss strictly due to error on your part as you climb up the learning curve. Increased trading knowledge and experience combined with trading strategies that have superior risk/return characteristics can help put the odds of success in your favor.
So, it is important to study the markets and educate yourself before trading or, alternatively, you can rely on the support of your broker professional. Another option you may also want to consider is paper trading.
It's a viable option because it's a lot cheaper to make a mistake in a fictitious account than a real one.
3. You will have losing trades. In fact, most of your trades will be losing trades. It is impossible to predict price movements every time. Even when the technical and fundamental factors are in agreement, the market often moves in an unexpected way.
This can even happen several times in a row. For this reason, it is always important to make sure that loss is limited on every trade and that you have sufficient trading capital to withstand several losing trades without being taken out of the game.
4. Don't expect to become financially independent. It's unrealistic to expect a small-sized account, especially one under

2005-07-27T04:51:00.000Z

Online Forex Trading Advice

One of the best ways to get a feel for the market or a particular program is to try it out. No one wants to experiment with their own money however; so many companies have come up with an innovative way to take all the risk out of trying a new program.
It's called simulation trading and the premise is simple. The program is an exact copy of the broker or trading systems real -time trading program.
The main difference is that they allow you to play the market just as you would if you were actually investing. You can do a simulation with a set amount of money, usually around $100,000 dollars.
You can practice setting bid and ask prices, and using their various analysis tools. The benefits of such a system are two-fold.
First, you get a feel for the program itself, so that you can determine if it is right for your needs and skill level.
Second, you get to practice trading in the market. You can practice using the various tools and research available to you to make good trading decisions.
Don't worry if you don't get it right away - since its play money, you don't lose anything!
The amount of time needed to understand the system will vary depending on your level of experience. Many programs offer similar functions, so if you are simply in the market for a different program you may be able to switch over quickly.
Benefits of online FOREX trading
1. Real - time access - this is one of the great benefits of online FOREX trading.
Most brokers and trading companies offer their clients real-time quotes and data. This is very important when making decisions. Currencies are a very volatile market, and things can change at anytime. So having your thumb on the pulse of the market is very important to long term success
2. 24-hour availability - another great feature about online FOREX trading. In today's hectic world many traders find it difficult to manage their portfolio during normal business hours.
The internet allows traders the ability to access their portfolio virtually anywhere and anytime. This is great for part-time traders that have a full-time day job.
3. Speed of transactions - can't be beat! With a good computer and a high speed connection you can process a transaction within minutes. This is a far cry from having to call up your brokerage firm or worse yet make an office visit.
This

2005-07-26T22:01:00.001Z

Forex Trading Online - 7 Reasons Why You Should!

orex trading volume of more than 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility.
Forex never sleeps!
You can execute forex trading online 24/7, from 7AM New Zealand time on Monday morning, to 5PM New York time on Friday evening. No waiting for markets to open: they're open all night! This makes Forex trading online a very attractive component that fits easily into your day (or night!)
No Bulls or Bears!
Because Forex trading online involves the buying of one currency while simultaneously selling another, you have an equal opportunity for profit no matter which direction the currency is headed.
Another advantage is that there are only around 14 pairs of currencies to trade, as opposed to many thousands of stocks, options and futures.
Forex Trading online offers great leverage!
You can make the most of your investment resources with Forex trading online. Some brokers offer 200:1 margin ratios in your trading accounts.
Mini-FX accounts, which can typically be opened with only $200-300, offer 0.5% margin, meaning that

2005-07-26T22:01:00.000Z

Forex 5 Questions You Need To Have Answered

So, if you know you have indicative prices then you know you're in for some good results! However, if you have any of the other three you need to be careful on how stop and limit orders are placed.
As an example: If we had bid price history and we were looking to place a buy entry stop at 0830 EST according to the day's high, then we know that the bid price will not accurately reflect what the actual price of our order should be.
You would have noticed that if you placed a buy entry stop at the exact same price as that of the day's high you would have entered prematurely - you would have entered 4 or 5 pips before the high or the low of the day was touched (the exact same amount as the spread your broker offers!).
This leads me into the next most important question.
2. What spread is your broker offering on the currencies you are bask-testing?
You need to know this as this can help you set your slippage settings on each currency.As our example in question 1 pointed out. We found that our buy at the day's high method did not exactly work because we bought at the BID PRICE high, not the ASK PRICE high - the price that we need when we

2005-07-26T12:48:00.001Z

Forex strategy on successful Forex trading

orex strategy on successful Forex tradingThe essence of the FX2u Forex strategy is that it does not have any Forex trading system but could forecast the market trend accurately.
Every set of Forex trading system available has its disadvantages. The market trend could not be forecasted. If the market could be forecasted, by depending on the RSI, PAR, MOM analysis techniques and some other theories, Forex traders could easily make a fortune.
Many Forex traders could not obtain the anticipated outcome by using these analysis tools, and suffer huge losses.
The main reason is relying on some imperfect tools to forecast the unpredictable market trend is just a waste of effort. Therefore the F

2005-07-26T12:48:00.000Z

Forex Signals Advise

If I have 100 new customers this month, I send out buy signal for the 50 of my new customers while the another half with sell signal. At the end, I will able to have "some satisfying customers". Finally, free advertising and testimonial will be made available.
If you are really new into Forex trading, it's better for you to sign up a demo Forex trading account from any Forex brokers and try some practice trades for a few months.
This will give you insight into how the forex market behaves. Then only deposit a small amount of money to get a real feel. There are great differences between demo trading and real trading due to personal trading psychology.
Final words, if you really wish to buy Forex signals from a Forex signal provider, make sure they have got an audited results and do provide a free trial over a substantial period.
aLvinHan is the editor of http://www.fx.labuan.net
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2005-07-26T06:26:00.000Z

Trading Profitably on the Foreign Exchange Market

rading Profitably on the Foreign Exchange MarketYou may be asking yourself "how does one begin to trade profitably as a currency trader?".
First, it is important to closely monitor foreign equity markets to attempt to predict or model how their respective currencies will perform against other currencies, ideally, currencies that are not very closely related, nor proportional, to the former currency.
For example, Mexico's economy is closely linked the the U.S. economy, in some respects, but in other respects, they are not very directly proportional since Mexico's economy is currently improving as a consequence of increased consumer financ

2005-07-25T05:50:00.001Z

Forex Trading Course for Day Traders and Small Investors Focusing on Forex Pivot Point Trading

According to Keister, forex trading, while well known in the �inner circle', is only now beginning to get the attention of both day traders and private investors.
"Ten years ago, it was difficult to find a day trader or private investor who was familiar with the market. Now at least half of the people I talk with are at least mildly familiar with the market and half of those have actually dabbled in it," he says.
Keister attributes this increased interest level to a number of problems unique to equities and futures trading. "The biggest problem is that price fluctuations on the equities and futures markets are all too often a direct result of manipulation and/or the buying and selling habits of major investors.
Prices are not driven as much by supply and demand as they are driven by market makers, media hype, and large institutional investors who have the financial means to literally make or break a stock overnight," he says.
The forex spot market, according to Keister, isn't subject to that kind of manipulation. The average daily turnover in the forex spot market is approximately $1.3 trillion dollars, 30 times the turnover of all equity and futures markets combined.
Unlike the equities and futures markets, forex market fluctuations are driven by pure supply and demand - the purchase and sale of foreign goods and services and, of course, speculation.
Experts estimate that 5% of the market's turnover is actually driven by trade imbalances, the remaining 95% comes from speculation. "One doesn't have to be an economist to understand that it is vir

2005-07-25T05:50:00.000Z

Trading Forex Over Stocks and Commodities

rading Forex Over Stocks and CommoditiesThere are many advantages to Trading FOREX as your main income generator.
Let's start by something that may be worrying you already.
Do I need a Diploma or some kind of Certification to trade Forex? The answer is this:
When attempting to make more profit than losses on the fluctuation of exchange rates between major currencies (i.e., Trading the Forex), nobody is going to ask you for a diploma, a formal license or verify the amount of hours you've spent studying the Foreign exchange market and banking industry. All you need is the proper training.
But this is not the only advantage you get when tra

2005-07-24T19:37:00.001Z

Online Forex

Question # 3: Limited market access, liquidity issues-after market hours, commission fees, capital requirements and short selling/stop restrictions are just some of the issues investors face when considering other markets.
Given that the forex market removes many of these traditional barriers and therefore does not restrict the forex traders' ability to make a trade at the right time, are we likely to see an increase in trading volumes this year?
A3: With all these advantages, traders are finding it hard not to trade currencies, online trading volumes across all products is increasing at a substantial rate, however FX trading, predominantly amongst retail investors is becoming very popular.
Question # 4: There is stiff competition amongst online forex service providers for retail forex traders with some claiming to offer the same degree of technical analysis enjoyed by the world's largest banks and institutional traders. Is this possible?
A4: Technical Analysis has come a long way, more and more forex provides now have partnerships with firms who provide analysis. However the banks still have an advantage, the markets are still not under perfectly competitive economic model. The banks will always have access to information that is not readily available, ISX FX currently sources its information from a number of banks to fill this gap.
Question # 5: Do you subscribe to the theory that forex is less volatile than stocks because the market is much deeper?
A5: As a bet on the direction of a national economy, no currency has ever dropped 25 percent in a day, or imploded as rapidly and completely as an Enron or a Parmalat. In the wake of those scandals, many companies are meting out information more cautiously, making it harder to get the real "scoop" on stocks one problem of trading with too-high leverage is that one piece of surprise news can wipe out one's capital. If you treat forex trading like a business, including proper money management, you have a better chance of success."
Question # 6: U.S. interest rates-decade lows; global trade wars and terrorism fears have dominated the headlines recently. What impact has this had on retail volumes?
A6: The above factors have all led to a decline in the dollar. This coupled with tighter regulation of brokers has given investors more confidence in brokers. Also the stock market cra

2005-07-24T19:37:00.000Z

Why Do You Want to Become a Online Trader?

What systems would I like to learn as a trader? A good example might be as an online fibonacci trader.See, if you have a strong enough WHY that answers the following questions pertaining to trading then you will find a way, no matter how difficult the pain, to get the job done. Here are some ideas for your 50-page letter.Do you want to create a stream of passive income?
Do you want to create a sense of security for yourself about where your next check will come from?
Do you want to earn income that will act as an extra supplement source cash so that you can afford some of the finer things in life instead of living paycheck to paycheck?In his Rich Dad, Poor Dad series of books, Robert Kyosaki advises against anyone securing a part time job. Instead, Kyosaki suggests starting a part time business.
In my opinion, profitable trading is the perfect business and the best home based business opportunity. It is capitalism's best kept secret that will allow you to work at home.
The market makes no distinction about your wealth, educational level, ethnic background or any other aspect of your identity. There is no room for office politics, difficult bosses or tricky employees in this arena. You can trade from anywhere.
Follow a few simple rules, and you can run your business as you see fit.
That said; if trading successfully were easy, everyone would reap the profits. The truth is most people that trade will lose money. This is an unpleasant fact for a number of reasons. Nevertheless, the primary cause of why so many people lose money trading is that they simply do not know how to trade.
If you do not know how to trade, that does not mean that you are not smart. On the contrary, many highly intelligent people lose millions of dollars in

2005-07-24T12:23:00.000Z

The Margin Advantages of Trading Forex

And, forget stocks, you'll never get this type of LEVERAGE in the equities market.
Futures markets are often prone to sudden and dramatic moves, against which you can not protect yourself, even by trading with protective stops. Your position may be liquidated at a loss, and you'll be liable for any resulting deficit in the account.
But because of the FX markets deep liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are eliminated. Orders are executed quickly, without slippage or partial fills.
And finally, there are no margin calls -- for your protection, ALL our recommended brokers will automatically close out some or all of your open positions if your account equity falls below the level required to hold the positions.
Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance. In fact, if you pick from our list of recommended brokers, we guarantee that you will never lose more than you have in your FOREX account.
Forex Trader and Freelance writer http://www.1-forex.comForex Trading Articles
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2005-07-24T12:22:00.000Z

How To Handle A String Of Losses

In this article we 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.
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 activities that at first seem harmless, but upon excessive use (or in time), begin to cause physical damage to your health.
Ask yourself the following question: during during drawdown periods do I find myself over-indulging in these activities:Food (especially junk food - eg. chocolate, ice-cream, chips)?
Sex (includes viewing pornography)?
Alcohol?
Drugs (includes excessive smoking)?
Laziness (find it difficult to wake up in the morning)?
Entertainment?
All o

2005-07-24T04:44:00.000Z

Forex Currency Trader - 3 Basic Principles

Once you've finished practicing your trading skills on a demo account and you decide to test the waters using your own investment capital, you may want to minimize the amount of liquidity and volatility to hedge your risk.
Alternatively, you may want to increase the risk involved, and potentially increase your profit potential. (It should be noted that very heavy risk is involved under any circumstances.)
The foreign exchange market follows the sun around the world moving from the United States to Australia and New Zealand to the Far East, to Europe and finally back to the United States.
Overall foreign currency trading volume is determined by which markets are open and the overlap in the times that these markets are open.
Currency trading volume is relatively high 24 hours a day, but there are considerable peaks in activity when the British, European, and US markets are open simultaneously, which is from 1 pm GMT to 4 pm GMT. Pacific Rim markets, such as Japan and Hong Kong, show a dip in their trading volume while there is extensive volume in the US market at the very same time.
Nevertheless, it is still possible to perform technical analysis on Pacific Rim currencies. By trading during a certain time frame, one may be able to either minimize or maximize the level of volatility (and risk) for a given currency pair.
Principle # 3Although the above is a general statement about the activity volume for certain currencies, it may be a good idea to attempt to capture the level of volatility for given currency pairs.
You can potentially use Bollinger bands, a tool used by technical analysts, to quantify volatility. Bollinger bands compare volatility and relative price levels over time.
Some currency traders cannot trade a day in their life without

2005-07-23T21:06:00.000Z

The Seven Most Traded Currencies in Forex

A currency can never be traded by itself. So you can not ever trade a EUR by itself.
You always need to compare one currency with another currency to make a trade possible.
Some of the common PAIRS are:EUR/USD Euro / US Dollar;
USD/JPY US Dollar / Japanese Yen;
GBP/USD British Pound / US Dollar;
USD/CAD US Dollar / Canadian Dollar;
AUD/USD Australian Dollar/US Dollar;USD/CHF US Dollar / Swiss Franc;EUR/JPY Euro / Japanese Yen.The listed currency pairs above look like a fraction. The numerator (top of the fraction or "left" of the / however you want to SEE it) is called the base currency.
The denominator (bottom of the fraction or "right" of the /however you want to SEE it) is called the counter currency. When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD.
If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency.
You are always doing the opposite of what you did with to base currency with the counter currency.
If this seems confusing then you're in luck. You can always get by with just thinking of the entire pair as one item.
Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. You only need to be aware of the base/counter concept for Fundamental Analysis issues.
So why is it important to know about the base/counter currency?
The base/counter currency concept illustrates what is actually taking place in a Forex transaction.
Some of

2005-07-23T21:05:00.000Z

Internet and Computer Systems in the Forex Business

nternet and Computer Systems in the Forex BusinessWith every passing year the interest in electronic trading is bigger, more especially trading shares and currency through Internet.
A new profession came forward - this of the currency dealer. The appearance of this profession was caused by the full force of development of Internet, which enabled the exchange business to be carried over at home or at the office.
The electronic platforms offered by banks and investment brokers enables all of us to go in the sea of the financial markets and to start living a difference and unknown by this moment way of life.
The development of the computer t

2005-07-23T06:34:00.000Z

Choosing A Forex Broker

It will offer Limit and Stop orders, and ideally will let you attach these to your entry order. One-Cancels-Other orders are another useful feature - they mean you can set up your trade and then leave the software to get on with it.
And the most important feature of all - can you actually understand the platform? Having all the bells and whistles is of no use if you can't use them, so again, get a demo account and give it a go.
Support
Forex is a 24 hour market, so your broker should offer 24 hour support. You might not be trading at 3am, but that could be what time it is in your brokers head office on the other side of the planet, so make sure there will be somebody there to pick up the phone if things go wrong.
You should also check if you can close positions over the phone - essential in case your PC or internet connection crash at a critical moment.
Backing
Finally, before opening an account do a little homework and find out about the company. Forex brokers are regulated, but that doesn't mean they all have equal backing.
If the market collapses, you want to know that they've got the reserves to cope with it and will still be around when you decide to withdraw your cash. If a broker is elusive when it comes to questions about their parentage and financial backing, then steer clear.
In Conclusion
Choosing a forex broker isn't difficult, but don't rush the decision. Check out a few, and always get a demo account first to make sure you're happy with the way everything works before sending off your opening balance.
Geoff Turnbull is a full time day trader, and a contributor to http://www.forexheaven.com
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2005-07-22T18:40:00.000Z

Option Arbitrage in the Forex Market

Why arbitrage forex options? Well, because the opportunity exists if you look far it. The forex market is a cash inter-bank / inter-dealer market. In simplest terms, this means the foreign currencies traded in the forex market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk.
The forex market is not a "market" in the traditional sense due to the fact that there is no centralized location for forex trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC).
Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.
Therefore the forex market is not as efficient as the NYSE for example. Price discrepancies exist between trading platforms, clearing firms, banks, etc if only for a small period of time.
Options pricing is also affected for the same reasons but since there are other components involved in pricing an option than just the price of underlying currency, they tend to exist for longer periods of time.
One of the most common causes of option pricing differ

2005-07-22T05:42:00.000Z

Why Demo Account Performance Is Often Better Than Real Account Performance

When market information is released, trading can be a high intensity experience. Sensing danger, your body releases adrenaline that acts to accentuate both your greed (fight) and your fear (flight).
Because these emotions are so strong, they can cause you to act irrationally, ignore your system, stated set of rules or trading plan and to act upon impulse. Indeed, this is a genetically programmed response - but it is often also the trader's downfall, especially when he's playing with much better capitalized, more sophisticated and experienced foes that know how to manipulate those emotions.
When you are a trader - you are always under the influence of at least one of these two emotions, even if you don't have any trades on.
Impact of fear and greed on your trading
If the market's going up and you're in - greed is telling you to buy more and fear is telling you to take your profits while you still can. If it's going down, fear of being wrong makes you hold onto a losing position - and then greed sometimes convinces you to "average down" your position (and buy more) so it'll be easier for you to come back.
If the market's going up and you're not invested - fear is telling you that you're missing out on easy money but it's your greed that causes you to get in just after the greatest increase (just when its about to reverse course). If the market's going down and you're not invested - greed is telling you to get in as the price is cheap, while fear reminds you that you'll miss out on this opportunity if you don't act quickly.
Perhaps if we just felt greed, or just felt fear we would be able to control our emotions a little better. But when both of these little devils whisper into our ears at the same time - it is often impossible not to listen.
The Thrill of Greed
The first time you try FX trading - you will feel the thrill of greed. It is an ecstatic experience, your brain flush with neurotransmitters and your mind giddy with visions of untold riches about to be reaped. Greed is bold, aggressive and incredibly exciting. It can take hold of you both mentally and physically. Just imagine the possibilities!
This greed is what draws us into FX trading in the first place - the dream of easy money and 100:1 or 200:1 margin rates. It inspires us and causes us to forego rational thinking in favour of reckless abandon.
In the movie Wall Street, Gordon Gecko says, "Greed is good", but it is also very dangerous - especially if you are unable to recognize when greed is the one doing the talking. Greed is also one of the most common techniques used to manipulate people.
Every get rich quick scheme, promising untold riches for no money down takes advantage of your natural predisposition to throw all logic and sense out the window when greed pays a visit. The argu

2005-07-22T05:41:00.000Z

Make Money with Currency Trading

Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.
Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains.
Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.How FOREX Works
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday).
In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online).
It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses.

2005-07-21T23:20:00.000Z

What A Forex Broker Does

hat A Forex Broker DoesEven if you have bought and sold homes before, you probably would not want to do it without the help of a licensed real estate broker.
The housing market is constantly changing, and you want someone that understands where that market is headed.
The added expertise in the field gives you a competitive edge over the rest. The same is true when dealing the FOREX market.
A FOREX broker can be a source of information and strength in your trading endeavors. Even seasoned traders, rely heavily on the help of FOREX brokers. Trading is risky business, and your broker can be there to help ease some of the risk off of your pla