Why Should Brokers Pay More Interest to Forex Social Network Websites?

Social media's impact on businesses has become an intensely discussed topic, but many businesspeople and investors are still searching for some clarification: OK, you have a Facebook profile, but how does it help you? How are you, as a consultant, trader, broker or any type of business person managing to turn these new tools into your advantage?

More than 70% of financial advisors have a personal or business Facebook profile and 55% are now on LinkedIn, a 2011 survey by American Century Investments shows. This is a clear sign social media already plays some role in the financial sector. The potential is though huge. If on Facebook or LinkedIn millions of people gather to share their likes, dislikes or recommendations, niche social networks managed to take this phenomenon to the next level, by focusing on a sector that depends enormously on Internet: retail forex trading.

These platforms were more than a simple forum, the first method of interaction between traders. A well-rounded network provides much more than a forum, it includes education, expert analysis and ideally also a way to specifically connect with other investors who have a similar trading style. And automatically increases traders' trust.

Retail currency trading now accounts for up to 10% of a market that reached 4 trillion dollars at the end of 2010, according to the Bank for International Settlements (BIS) data, a huge growth in only a few years when this investor segment appeared.

The debate on the internet around this topic has become quite fierce: pip, drawdown, NZD, JPY, stop-loss, HUF, CHF, hedging, Fibonacci - all these terms suddenly entered the novice trader's vocabulary, so it was only a matter of time for the topic to reach social networks. Now, as the first step was made, we are rapidly getting to the moment when all big corporations and brokers embrace the domain.

Traders are able to use a set of tools that create a clear image of their trading style and results, they are finally able to compare, talk, debate, and ask advice from multiple sources. They can find a better trading method, rapidly adjust to market changes and find new strategies when former trading techniques fail to be as effective.

Brokers now know they can easily increase their number of clients and social networks are a door that can be opened for a new type of investors: the new client target is a younger, less wealthy and even less financially educated than the traditional investors banks and brokers were generally trying to attract. They now understand that it may be more profitable to have a long-term relationship with their clients and that is exactly what the social networking platforms help them reach. These platforms offer all the facilities for them to enter the market: a community they can easily integrate in, educational material and direct interaction.

Brokers can not only reach these groups which were probably unfamiliar with, but they can attract communities from emergent, far-away countries from Asia or India and foreign language speaking nations. And more over, through automatic trading programs like Tradebook, the chances for these inexperienced investors to actually make a profit out of their investment increase significantly, which makes forex trading even more attractive.

Although an investor's Facebook or LinkedIn profile hasn't yet proved to directly boost his profit, social media is more about creating a brand a connecting with an audience impossible to access in the past. Social network is an exceptional relationship tool helping brokers create trust relationship with their clients while increasing their own volume and reducing the price of capturing new clients.

Because at the end of the day you can develop as much software on your platform as you want, but what will make it grow is the community.

FxStat is an innovating service for both experienced and novice forex traders, providing a wide range of new tools and information specifically meant to improve trading strategies and results. A completely secure and transparent platform, FxStat allows investors to analyze traders' strategies as well as their own performances, socialize and make new connections and get first-hand information about the forex market. With its latest launched automatic trade service, Tradebook, members have access to the first real-time auto-trading facility.

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Tips in Learning the Forex Market

Some of you are probably wondering what the forex market is all about. You are probably wondering about this because you want to start making money off of this forex trading market. If you are set on learning the forex market, then it is time for you to learn the basics in foreign currency trading.

To trade through foreign exchange or forex does not involve physical goods and commodities. Forex trading is all about buying and selling currencies from different countries worldwide. When you trade through the forex market, you are either selling or buying the value of a currency. A great example would be trading the US Dollar for the Japanese Yen.

Almost all currencies can be sold or bought through the foreign exchange. However, if you are serious in making a profit out of your investment, then it is highly suggested that you learn the two main strategies when trading foreign currencies. The two main strategies are technical and fundamental analysis.

Learning about these strategies is crucial when learning the forex market. Both strategies can actually be used to predict which currencies to trade at the moment in order to make a profit. Some professional traders already have a preference as to what strategies to use although beginners are not limited to using only one strategy at a time. It is good to use technical analysis strategies if you have a good source of historical data that will back up your trading choices. On the other hand, fundamental analysis strategies are good supporting strategies based on the economic factors presently seen in the country where the currency comes from.

To learn about these strategies also requires you to study charts, indices and tools that you can use in forex trading. It is also imperative to use a highly reliable forex trading software that will send you updates, charts, graphs and indices that will help you make a decision when to buy and when to sell these foreign currencies. The program has tools that will help you predict market trends as well as make an informed decision what currencies to focus on and when is the right time for you to trade.

Learning the forex market can be a bit tricky for beginners. However, you will soon find out that along with modern technology comes help for those just starting out in trading in the forex market. It would certainly help to become eager in obtaining all sorts of information to make it easier for you to trade and make a profit.

James T. Taylor is a successful and experienced Forex trader, know his ways getting hot Pips. Now helping traders by sharing his skills. He is also a webmaster for http://www.fishingforexpips.com/, bringing you all the latest Forex information, advice and reviews. Best of all he is giving away Fishing Forex Pips's Indicator System you can download from this link: http://www.fishingforexpips.com/

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Today, Online Forex Trading Is the Safest Way to Make Money!

Most investors I talk with are panicking. Greece is a whole lot of trouble, and now it's Italy that's the major concern as the interest rate on bonds now exceed 7 percent. People now talk about a likely bailout in Italy.

I would not be so sure about it. For many reasons, no one really wants either Greece or Italy to default. Surely a default would mean bad news for a lot of banks, but it could also mean a global loss in the world's economy. As if the growth was not slow enough nowadays in developed countries...

So where do I invest my portfolio in such hard times? Stock markets are volatile and even though I do believe stocks are the best long-term investment, you'd have to think twice before you buy right now. Stocks might be cheap, but they could go even cheaper.

What about bonds? Government bonds are safe, right? Well some are. If you're talking about United States or Canada, you most likely will get your money back, but you won't get such a high return since these two countries are highly graded. You could always buy bonds from Greece and get a double digit rate, but I'll be honest: personally, I'd have trouble sleeping with Greek debt in my portfolio.

To be perfectly fair, there are quite many ways to make money, and the more risks you take the more money you might earn. Let's just quote the many forms of derivatives that exist; they're risky, they're sometimes hard to understand but they do offer you an opportunity to speculate!

As an experienced investor, I usually only use derivatives for hedging or to cover some risk. However, in an uncertain period such as these last months, I like to get away from the stock market a little so I have enough liquidities to trade and make money when other investors are desperately looking for ways to keep it safe and cut their losses.

The question you probably have now is: "Where or what do you trade?" Answer: FOREX. What's the forex? Some of you might have heard the name, others might be familiar with it already, but forex stands for foreign currency exchange, and it is the most traded over-the-counter market in the world. It offers you high liquidity, fast trade execution and high leverage.

Now trading currency pairs is not something you can learn to do in an hour. You need knowledge and experience.

I've been trading the forex for years by now, as well as stock markets and bonds. I can help you with your investing strategy. Start by getting a quick look at http://forexonlineguide.net/ to get some information on the subject.

Stop waiting! Now is the time to get some returns on your money, or you'll end up still working at 70! All you need to become a fierce trader is a solid trading strategy and some patience!

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The 3 Main Things to Watch When Choosing the Best Forex Broker

There are three main aspects you need to consider before you decide which broker you are going to use for your forex trades: Small spreads, high leverage allowed and small minimum deposit (if you don't have a lot of money to invest).

Spreads are usually the only fees a broker will charge you. The best forex brokers offer very small spreads, especially on the most traded currency pairs.

Leverage is one of the main reasons why the forex market is well-known in finance. It means you are able to keep a minimum margin on your account and take larger positions than you usually could. This is an effect of borrowing; you don't really own all the money involved, you are just willing to take profits on the changes in prices. A 500:1 leverage, which is very high, would mean your gains and your losses would be multiplied by 500 on your real initial investment.

Top forex brokers also know other ways to get people to subscribe. A free starting bonus when you deposit money for the first time in your account is something common, used by brokers such as Plus500 or eToro. However, remember this is just a bribe. While it remains an interesting gift, you should consider spreads and leverage first.

Even some of the best forex brokers don't allow you to take small positions. It means you have to buy or sell, let's say, at least 10 000 units of a specified currency pair in order to trade. This does limit your trades to a minimum amount, but it is no big deal; keep in mind that if you use a little leverage you can take large positions anyways.

Now, take note that leverage is risky. In fact, the forex market is risky, as well as pretty much all other markets. While it is true that no one can really tell what the interest rate on the 3-months LIBOR is going to be in 3 months, it is also perfectly true that no one really knows at which price the EURUSD (euro versus US dollar) is going to trade in 3 months. Before you start trading the forex, know your risks and make sure you have a solid trading strategy that involves at least a few indicators and other analysis methods.

A good way to practice and elaborate your forex strategy is to use a free demo account. Don't worry; top forex brokers offer this service for free. It allows you to trade fictive money before getting into the market for real. You will also see if the broker suits your needs and if the platform it uses offers an interface that you like.

Remember that ultimately, there are no best forex brokers. You can check which ones are the most used and which ones offer the lowest spreads, highest leverage, etc. Some websites offer a rating for each broker. Hot Forex comes first most of the time, if you want to be briefly resumed on these rankings. In the end, the choice is yours anyways.

Make sure you check our website on http://forexonlineguide.net/ for more valuable information on the forex market. Good luck in your searches for a broker!

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How to Play It Smart and Minimize Your Currency Trading Risk

Similar to other types of investments, there are potential risks in the business of currency trading. They are typified as sovereign, interest and exchange rate risks. If you are decided to get into this game, it is vital that you must be familiar with the plus and minus points. Otherwise, you will not find yourself in a win-win situation. The best way to be a winner and not a loser is to know how to play it by heart. This means studying, learning, training, practicing and simulating before you actually become a player. Some professional traders enter a transaction only if they have the chances of making 3 times more than the funds they are risking. It is one key secret to winning in this game. Give yourself a 2:1, 3:1 or 4:1 reward to risk ratio.

One way of learning is to know stories of losers and determine the causes. Another profitable way is to study the testimonials of winners and how they do it. When you are ready and committed, another important fact is to bear in mind that each currency trading transaction has its own inherent risk. Political uncertainties and other variable factors affect currency exchange rates. You should always find time to look into the positive and negative angles.

Unlike the United States investors who enjoy protection from different government and quasi-government and private regulatory agencies, some forex markets do not have the same kind of safety net. As a wise trader, you have to weigh the transaction's pros and cons carefully. One variable is government intervention and another is currency devaluation. When this happens, it will adversely affect the value of financial instruments. And this is a matter which is outside of the perimeter of control.

Other risk factors involve any negative development relative to the social, economic and political situation of a nation. General market volatility is an inherent risk in the foreign currency trading. Another risk is the management of leveraged currency deals. This is a system of borrowing funds against your minimal capital investment. The risk of losing in a trade is high and your potential for winning a lot of money is likewise the same. Leveraged trading margins vary from 50:1 and can rise up to 20:1 which means you can manage $2 million with only a $10,000 start-up investment. If you are not well versed and experienced in this area, the risk of a substantial loss is quite high. This is a very high leveraging risk and it can be suicidal.

Lack of knowhow in risk management is also a big factor. You will definitely lose money if you do not study and learn systematic currency trading risk management. If you just play on the basis of determining how much you are ready to lose in every trade, you are playing like a casino player. It is not investing but gambling. What is important in order for you not to lose your shirt is to know how to manage your total trading account money.

Another currency trading risk is undercapitalization. It is a big mistake to enter forex trading with the wrong capital. If you do not have at least $50k risk capital that you have accepted to lose anytime, then don't play this game. Otherwise, you will end up frustrated and broken-hearted and that is not good for your cardiovascular system.

Take your time. Study the rules of the game; follow how professional traders do their work online thru several blog posts. Enroll in good forex courses. When you are ready with the right capital, skills and proper disposition that is the perfect timing! Timing is everything. So, don't get too much excited in getting right away into this forex business just because of what you hear about some beginners who are already doing good and making a killing! Play it smart and minimize your currency trading risk!

My name is Alex DeGuzman and I am an expert in providing useful tips for forex trading for beginners. Please visit my site at http://forextrading-online.org/ to find proven tips to succeed in forex trading online.

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The 3 Main Forex Trading Styles Revealed

When you are new to Forex Trading, you can feel overwhelmed by all the available strategies. It can be difficult to choose or to create a trading strategy that meets your needs and lifestyle. In this article I will give you an overview of the three main trading styles. For each style I will point out the benefits and disadvantages.

#Trading Style 1: Swing Trading

Swing Trading means that you trade on a long term basis. You enter a position that will be open for several days or even weeks. The advantage of this trading style is that you have little to no work. It involves more or less the following steps:

You verify the setup conditions of the trading strategy of your choice.You enter the trade at the moment that the criteria are met.You monitor the trade on a regular basis. The interval is defined in your trading strategy and it is related to the timeframe of your chart.Example:If you use a 1D chart, you will check your open trades every day, ideally at the moment of the closing time of the candle stick.You close the position when the closing conditions are met. The position will close automatically when it reaches your stop loss.

It is obvious that there are a lot of tools that help you to perform some tasks automatically.

The main disadvantage is that your positions involve more risk as the trend can reverse while you sleep for instance.

#Trading Style 2: Intraday Trading

The aim of Intraday Trading is to open and close the trade on the same day. The profit per trade is less than with Swing Trading but there is less exposure to risk. The great advantage is that there is a fair balance between risk and profit. This trading style often results in good profits such as 50 to 80 pips. Furthermore the risk is reduced as you close the position on the same day. As a consequence, your trades will be less affected by turning trends. The main disadvantage is that you have to monitor your trades more often, at least two or three times a day. This depends on your trading strategy.

#Trading Style 3: Scalping

Scalping is a short term trading style. Your positions typically close within an hour or even minutes. The great advantage is that these trading methods offer many entry point per day. When you work with scalping, you sit in front of the screen all the time, because you have to react quickly on the changing market conditions. When you accumulate all trades you perform successfully, you will generate a nice income.

On the other hand, scalping is not for everyone, because you have to be able to act quickly but with a calm and disciplined mind. In my previous article, I gave some tips and advices to train yourself to get focused and calm mind.

Trading is like driving a car. When you know how to do is, it's child's play. It is a natural set of actions. But, when you have not learned how to drive properly, it can become dangerous. The same applies to forex trading. This is why I started a forex currency trading blog with tools and tips that will help you to build a good trading toolbox.

Visit my blog at http://www.myforextoolsonline.com/.

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Reliable Forex Signals: Learn About the Components to Analyse to Find the Best Forex Signals

The foreign exchange market continues to prosper. It is now one of the major investing sectors throughout the world, featuring its standard day-to-day revenues attaining new levels as time goes by. Forex is generally an industry in which foreign currency sets are acquired and presented for sale so as to benefit through positive exchange rate actions.

The Greatest Forex Signals Components

Forex signals pertain to a selection of information and assessments employed by foreign exchange money managers to be able to recognize the most fitting period for the purpose of acquiring and trading foreign currencies. A foreign exchange trader utilizes simultaneously the basic as well as the technical evaluation that enables for a conclusion regardless of whether to trade or not.

• Basic evaluation - this is dependent to the market elements which happen to have an immediate influence around the exchange rate.

• Technical evaluation - this entails understanding tendencies along with behaviour to be able to make a conclusion within the discretion involving a trade.

To be able to completely grasp signals, we've got to be knowledgeable of the numerous kinds of graphs. The graphs are usually categorized as line graphs, bar graphs as well as candlestick graphs. Signals are grouped into Leading and Lagging. Leading and lagging indicators are quantifiable market elements.

Leading and Lagging Indicators

• Leading indicators provide an indication preceding to a modification which takes place within the movement of foreign currency sets. These let the trader to get ready in front of time, to recognize a pattern preceding to when a change can be viewed. This can guide a fine trader by acquiring low and trading high.

• Lagging indicators presents information about the changes observed on the pattern or trend, when these changes are evident. This can be constructive for individuals who are struggling to find the obvious changes. Lagging indicators hardly ever deliver inaccurate signs, because the change has by now taken place preceding to it being disseminated toward the trader. An example of a lagging indicator is momentum indicators.

Dependent upon the type of market, you have to make a decision and decide between these two indicators. Leading and lagging indicators are typically conflicting. This is why it is important to recognize the finest forex signals.

Finding The Greatest Forex Signals

It really is apparent that several graph indicators have to be looked at for guaranteeing successful forex deals. Fortunately, you have obtainable forex indicator techniques, determined by graph indicators as well as monetary behavior, which point out when a trader should purchase or sell.

These kinds of indicators are commonly free of charge or sometimes can be obtained at low costs. A forex indicator strategy, that presents precise and cost-effective forex signals, may be mechanical or fully automated. Manual or mechanical forex signal platforms normally would require to have the trader to be present to be capable to buy and sell. A totally automated platform, ordinarily does not call for the trader's appearance so as to carry out trades. An exceptional trader can make use of his or her technical and basic assessment expertise to be able to profit from any kind of forex signals process.

Forex Live Online delivers high quality forex signals. To find out more or follow our forex signals please our website forexliveonline.com

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How to Find the Most Effective Forex Trading System for You?

If you want to become a successful forex trader, then it is advisable for you to spend time selecting the most effective forex trading system in the market at present. This system is capable of helping you improve your profitability while you are in the forex market. However, you have to be aware of a few tips that can help you find the most reliable system which is capable of working in your favor. The first tip is to make sure that you listen to the testimonials of the present and previous users of a specific system. You have to know exactly what most traders have to say about a specific system so as to give you an idea which among your options is the best.

In your search for the most effective forex trading system, it is also advisable for you to evaluate the specific amounts of profit that it can offer you. In forex trading, your profitability can be determined based on the numbers of pips that you won on each trade. If you win more pips, then expect to have a huge amount of profit. It is important for you to choose a system that can help you specify the amount of pips that you will earn during a specific period of time. It is also important for you to determine the specific length of time through which the system can offer you profit.

In your attempt to find the most effective forex trading system, you are advised to completely understand each of your options. You have to know exactly how each of your choices work. This is important to ensure that you choose that system that can be easily navigated and is capable of providing you a substantial amount of profit within just a short period of time. It is also advisable for you to make sure that you are comfortable using the system that you are planning to buy before you make your actual purchase.

In evaluating which forex trading system can help you gain profits, it is important for you take note of the fact that a system which runs on autopilot is considered to be really effective. Because of this, you have to check out if the system that you are planning to buy can be operated by using automated programs. It is also advisable for you to look for a forex trading system provider that allows you to test the system through a demo account. This will allow you to figure out if buying the system is indeed the wisest move that you can take.

Finally, check out on my website at http://forexsimplex.com/forex-trading-system for free access to one of my paid video training. Click Here To Visit forex trading system Now!

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What Is the Best Forex Analysis Software of Today?

Forex analysis software is that which scours the market 24 hours a day seven days a week looking for high probability trading opportunities. Once it finds what it deems as being a high probability trading opportunity, it notifies you the investors so that you can make the corresponding trading moves.

The obvious upside and reasons for doing this is that you don't need time or experience to devote towards analytics in the forex market and can simply invest accordingly once you have the information.

In this article I'm going to take a look at the best forex analysis software on the market today for realizing your financial independence from the forex market without the experience necessary to devote towards it.

Forex Killer is one of the most popular programs on the market when it comes to forex analytics. The program works by relying on complex mathematical algorithms which are based on real life trader's successful trading techniques. These algorithms are designed to detect reliable trading opportunities in the forex market to invest in.

Once Forex Killer finds a reliable trading opportunity, it notifies you silly you are armed with exactly where and when to invest as well as what to expect in terms of appreciation from that trade so you can trade accordingly and have a good idea about what you can expect in terms of appreciation from that trend.

Because every move is dictated for you by the forex analysis software, this is the most reliable way to invest in the forex market. Common pollutants which are notorious for being the leading causes of one time successful trades failing such as human emotions and other human related factors are cut out of the trading process altogether.

Forex Killer practically takes you by the hand and does the work for you so that all you have left to do is make the corresponding trading moves exactly as the program advises you. There is no substitute for cold algorithmically crunched investing, and this is the best way to do it.

Forex Killer is completely backed by an eight week money back guarantee and full. This means that you can get the forex analysis software and receive a handful of picks and gauge their performances in the market before investing a dime of your own money to see it working in real time.

Ultimately, if you are unfamiliar with the forex market, don't have the time to devote towards it, or simply aren't making the kind of money that you want from it, I completely recommend that you give Forex Killer a 60 day test to see it working its magic for you said that you can invest in realize your financial independence by claiming a small profit out of the $3 trillion which gets exchanged each day in the forex market for yourself.

Even if you're fresh off the boat when it comes to forex investing or you don't have the time to devote to it, if you're ready to realize your financial independence I highly suggest you give the best forex analysis software a chance.

I've compiled a review site to share my experiences and reviews on the best systems I've used which you can visit by clicking on this link for forex analysis software.

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Why Forex?

With the economy moving up with the pace of a lazy turtle, many people are looking for new ways to make money. The Forex market has emerged as one of these new ways to generate a nice income online.

The currency exchange market is a place where you exchange one currency for another simultaneously. For example your always doing two things at one time. Lets look at the EUR/USD. If you believe that the EUR is going to increase in value, you enter into a buy position. What you are doing with that is buying EURO's and selling US Dollar's.

Since the housing market crash most people have been selling the dollar against mostly all other currencies and for the most part they should have made a pretty penny. If you keep up with current world events you can almost predict what a currency should do as far as increase or decrease in value.

Retail broker's make it possible for the average person to be able to trade the Forex market now. The market was historically just for large companies, banks and government agencies. But with the advancement of the Internet you can now also take advantage of this 4 trillion dollar a day market.

With most Forex broker's you can start an account with as little as $250.00 Now the more you can invest of course like anything the more you can make. Also just about all broker's give you a demo account. This is a great tool because you can take your time and learn how to trade before you go in with real money.

Many people fail at taking advantage of good practice time. Patience is a vital key in Forex trading. When you are considering investing real money, do yourself a favor and learn how to trade.

Forex trading can be a great investment tool. You could actually turn it into a business. When you really become an International Currency Trader you will see the big picture. In the Forex market you are trying to make Pips. Pips are the smallest increments of price movement. So if the EUR was at let's just say 7.200 and it moved up to 7.300, if you had bought it you would have made 100 Pips.

Depending on your account size each Pip could be worth .10 cents, $1.00 or $10.00 or higher. Most currencies move in one direction or another at least 100 Pips a day. So you can easily see that if you got good at trading how you could really make $1,000.00 a day.

Now don't get to excited because you could also lose $1,000.00. The Forex market is a fast pace high profit high loss machine. But if you learn the right Forex trading strategies the money is there to be made.

The best part is that it will not take you years to learn how to trade. If you find the right Forex trading system it may only take you a couple of months to learn a really profitable trade.

I recommend that you take your time learning on a free demo account and if you want to become a serious money earner in the market invest in learning some sound Forex trading strategies and soon that investment can reap you a huge harvest for years to come.

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Swing Trading Basics And The Use Of Software

Swing Trading starts by knowing the charts and then picking the trades. This means that a trader is able to trade in more stable grounds by waiting at least an hour to trade once. This also allows the trader to read the charts enough to determine a stable enough time to enter and exit the trade. Entry is the time a trader starts trading in a particular currency while exit is the time the trader unloads the currency and a reversal is the occasional rise of a currency while the same is already experiencing a continuous drop. By doing this a trader is keeping himself or herself open to catch a trend when it starts thereby making maximum profit. Swing traders must also time their exit properly especially if a trend is not caught. In this case, it would be best for a trader to liquidate the long, go short, and then trade again. Aside from that, swing trading also increases the chances of a trader to catch a trend reversal at the beginning thereby providing additional avenues for profit.

Swing trading is different because it advocates dealing in higher time frames to allow meaningful information to filter through. But it also allows the trader to be continuously open to catch a trend as it starts, provide enough time to exit while the price is still higher than it was when it was bought, and occasionally catch a reversal to generate more profit

Higher time frames mean more time filter thru the noise and false trends, at the same time allow more information to go thru that for easier identification and indicators, thereby making you a more educated trader. Now, depending on what's being traded swing trading can adjust to allow for hourly, four hourly, even daily time frames that contain enough information.

In sum, swing trading allows a trader to create profit at least three times without incurring a loss. First is when the trader enters the trading immediately preceding a trend thereby increasing the time within which to generate profit. Second is when the trader catches a reversal of the trend, which creates additional time to trade at a profit and third is by timing the exit while the Forex is still higher than it was when it was bought. Once the software is successfully installed on your computer, connecting to your currency-trading broker is easy and you can carry out international currency trading activities anywhere around the globe. This amazing breakthrough technology is changing the way people trade all over the world.

Four basic criteria used by experts to purchase legit currency exchange trading software:

Back Testing: History will not always repeat itself. Despite the significance of a good back testing, it is a not a foolproof basis for an efficient forward trading or predictability trading system. Still, it is important to take note of the condition of this criterion before verifying the next one. What that's mean is that e level of involvement is advisable.

Forwarding Live Trading: This concept is much more useful than the first. Live trading is your genuine evidence that what you have is not a Forex robot scam and can help you earn money. Almost all robot vendors claim the success of their back testing, but only some utilize live trading to support the authenticity of their robots. It is highly advisable to get a free trial or a money back guarantee, just in case the robot does not pass this criterion.

Handling of Finances: Handling your finances effectively is essential for the long-term success of your investments and is not solely dependent on robots. You always need to take into consideration your own contribution as a trader. In other words, it is a team effort between you and the software.

Low Draw-down: A trading robot does not guarantee a 100% victory all the time. This is the reality. There will be loses in investing in currency exchange and despite the use of robots, temporary setbacks will be present. Such losing period is termed as draw-down. Superior robots have the ability to shorten the losing period, pushing investment balances up, in contrast to Forex robot scams.

Learn more about swing trading basics on Forex Megadroid Reviews.

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Is There a Big Difference Which Market to Trade?

A lot of newbie traders have lots of wrong preconceptions about financial markets. Most of them think that some markets are safe and some are not. They say the same things about individual stocks. Therefore, a lot of investors are searching for safe type of investments. All booms and financial crises prove that it is the other way round. Nothing is safe and nothing is dangerous out of itself. None market can be called dangerous and none of it can be called safe. Forex is no more dangerous than government bonds of United States or any other country. All markets are very similar in their nature (with minor differences) and if you are able to trade one market you will definitely be able to trade any other one too.

Now, the most interesting thing here is that all markets undergo very similar stages and tendencies too. All markets have ranges; all experience trends from time to time, all of them go sideways, all experience booms and collapses. Whether you take Forex, metals, stocks, bonds or any other market you will see all those stages and tendencies everywhere. So, if you create successful trading strategy or strategies you will be able to apply them in any market.

So, if technical analysis works in futures market, it will also work in Forex and stocks. What we have to do is to use our heads to find out the best methods and apply them in the market of our choice with specific securities that we understand best and feel comfortable with most. Do not be too much fascinated by some free signal providers. You can, but if you want to become a professional independent trader you will have to find out what works for you and stick to that.

If you are a newbie in this business I would recommend becoming analyst before you become a trader. Learn to see the big picture first, analyze bigger time frame charts: daily, weekly, monthly and then move on to smaller time frame charts to see how these add to the big picture. Learn to notice big moves and how to trade in the direction of those moves. Don't be lured to trade counter trend moves before you learn to trade tendencies. Then see if you really want to trade corrections or not. Practice makes perfect. Get accustomed to a trading platform of a provider you are using, spend some time trading demo and only then start trading (having decided how much money you can afford to lose). Hope that was useful.

For more information regarding financial markets I recommend visiting blog Trend and reading an article how to use Relative Strength Indicator in your trades. Hope you will enjoy the blog.

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How To Trade Forex Using News

Foreign Exchange (Forex) trading is the simultaneous buying and trading of different currencies around the world. Nowadays, an average person can stay home and trade in the Forex 24 hours a day, seven days a week. A Forex trader must understand the important details of the Forex market. Why prices fluctuate and how to profit from this volatility and price changes impulses? A good investor needs a good level of experience, acceptance of risk, working knowledge of the market, history, strategies and trends. Related news is the one of the most important source for achieving above mentioned goals.

The news is unimportant in itself. The headline itself may not be that important in any financial or Forex market but how the Forex market participants (as a group ) react to them is important. While all traders have the same facts in view, they all make different conclusions and findings. These all things add up and make the trends in the Forex market.

We have better and faster news sources than ever, but most traders do not use the news correctly and end up losing. Here's the correct way to use and how to get great benefits? Here we will not examine the trade news itself but how they can be used to detect changes in sentiment and great reward trades?

Many market traders watch the commerce news and their Analysis. Similarly, Forex market also discount instant news and the market is looking toward the future and also the news reflects the greed and fear of the majority of the losers. We know from history that markets collapse when they are more pessimistic people in the market and fear is the result. When there are more optimistic then greed takes over the market. You can use this Greed and fear to your benefits. If you follow News Forex Charts, you can see the reality of prices and you can also see price spikes, where participants push prices away from fair value, due to greed and fear. You can see these peaks on a graph of the currency, news not last long and change can be very helpful in making a counter-trade and time your trading signal.

Let's say, you have news that the market will never stop rising or falling possibilities, has the height of greed and fear. The herd simply pushes prices to measure fair value. If you used forex charts you would have seen the culmination peak, then collapsed and had several thousand pips profit. Operators often take what the papers say as gospel and lose. If it was that easy to follow the news and trade in the direction of the big traders then everyone will get profits but it's not the case. So my advice, Play safe and keep yourself away from greed and fear. In other words, don't follow the herd. Always take an honorable exit before herd change the direction.

Julia Benson
is experienced in personal Forex trading with years of experience in the Forex market

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Why to Become a Signal Provider And What Are the Steps You Should Follow?

A forex signal provider is a professional trader specialized in closely monitoring and analysing the industry, forecasting trends and making profits out of the forex market while constantly maintaining a low-medium risk trading profile. A signal provider practically sells his/her skills and knowledge by permitting other less experienced traders to follow and execute his or her trades. The trades are executed automatically in the follower's accounts in exchange for a small pre-established fee.

As the information available on the Internet is generally meant for signal followers to completely understand how this process takes place and what their advantages are, this presentation is mainly suited for traders that are interested in becoming providers. What exactly does a trader have to do to become a signal provider and how proficient should he be in order to be accepted? What are his advantages, risks and obligations once he starts trading in other people's accounts? Let's take them step by step.

First of all, professional signal services don't accept demo accounts so you have to take into consideration that if you are just trying your luck in this domain and thinking about getting some extra-money by letting others follow you, this is not the place where you should be searching for information.

On the other hand, no signal services platform is going to ask for your CV, professional experience or studies in forex trading when applying as a signal provider, so don't let this scare you off. You do need to have a real account and you do need to be trading with your real money - the pressure of knowing you can actually lose your own money makes a trader much more cautious and down-to-earth -, but what counts the most in terms of professionalism is your experience. If you have a positive performance history that proves you are not a high-risk speculator, but measuring your risk before entering a transaction and actually getting some profit out of it, then you are an appropriate signal provider. Not all automatic forex signal services apply the same criteria to establish whether a signal provider's trading history proves he is performant investor, but generally you can use this criteria to weigh your qualifications:

1. Minimum of 10% annual return on investment in your forex account.
2. Verified real account
3. Profitable performance during the minimum last 90 days with risk adjusted performance
4. Average pip/trade over 5-10
5. Due diligence on trading discipline and style

Once you meet these requirements you can just open an account with a signal service provider, connect your trading account to it and apply as a signal provider. Your account and trading performance will be analysed by a team of experts and once you get your approval you can start adding followers to your account.

A big advantage for the signal providers is that they actually don't have to be searching their followers, but their followers will be the ones looking for them. As a signal provider, your trading performance and style appears on a list from where followers choose the trader that suits their needs. Of course, it is desirable and advantageous for you to actually become active - post comments, details about your trading, make yourself easy to spot and market your trading as much as possible. Like this you definitely increase your chances of having as many followers as possible. And the more followers you have, the more your income increases, as you are paid accordingly.

It seems like an ideal situation, no? But be careful, as you should always keep in mind that any investor has the complete freedom to stop following you at any moment. Although it is in your own interest to make a healthy and sustainable profit, it is advisable to always take into consideration that other traders are following you and entrusting their money to you. It is a risk and a moral obligation that you have to assume.

FxStat is an innovating service for both experienced and novice forex traders, providing a wide range of new tools and information specifically meant to improve trading strategies and results. A completely secure and transparent platform, FxStat allows investors to analyze traders' strategies as well as their own performances, socialize and make new connections and get first-hand information about the forex market. With its latest launched automatic trade service, Tradebook, members have access to the first real-time auto-trading facility.

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If You Own Iraqi Dinar Currency, Selling It Won't Be Easy

If you are among the thousands of people who have bought Iraqi Dinar currency in hopes of scoring a big profit, you may now be wondering what options there are for liquidating your Dinar holdings.

The Iraqi Dinar investment dream has been around for nearly a decade now. The dream is promoted by a slew of websites that sell Iraqi currency - that is, actual physical bundles of currency - to "investors" through mail order. The websites' sales pitch goes like this: "Before the 1990's Gulf War 1 million Dinar was worth $3,200,000 USD; today you can buy 1 million Dinar for just $1,150.00 USD". As the Iraq economy improves the Dinar will likely be revalued. If the revalue is at a level approaching it's pre-war exchange rate, today's small cash outlay could return millions for those savvy enough to get in now. Iraq's vast oil resources, well-educated population and guaranteed rebuilding aid from the US make buying Iraqi dinar almost a sure bet."

This rationale has proven compelling for thousands of people who've taken the plunge and bought Iraqi currency.

But people who buy Iraqi dinar are not buying a liquid, actively traded investment; rather they are buying a numismatic "collectible" that has very high transaction costs. For example, today you can expect to pay about $1,150 USD for 1,000,000 of Iraqi Dinar (IQD) currency from on-line dealers. The same 1,000,000 IQD has an official exchange rate value of just $854 USD - a hefty 30% markup. Dealers justify this margin by noting the high costs of transporting and safekeeping foreign currency bundles.

Similarly, if you are a holder of Iraqi currency and have decided to convert your Dinar back into US dollars, your options are limited and costly. One Dinar website makes the following noteworthy disclosure in its fine print Q&A page: Until markets develop for the resale of Iraqi Dinars, it may be difficult for you to liquidate your Iraqi Dinars or exchange them for US Dollars.

One option is to sell the currency back to a Dinar dealer. Typically, online Dinar dealers who advertise 1,000,000 IQD for sale for $1,110 are willing to pay $800 to buy back the same 1,000,000 IQD. In other words, when you drive the Dinar off the lot, it's instantly worth 32% less in the eyes of the dealer that just sold it to you! Selling Dinar back to a dealer is the option having the highest transaction cost but least amount of hassle.

A second option is to sell your holdings on eBay. With eBay, transaction costs should be 10% or less (meaning you might pocket $1,000 if your 1,000,000 IQD can fetch $1,100). (This eBay fee calculator will give you a good idea of your transaction costs.) However, for the newcomer, eBay can be intimidating and entail a substantial learning curve. You should be aware too that eBay has a very active community of Iraqi dinar dealers who you will be directly competing with.

A third option is to sell your Dinar holdings on Craigslist. Craigslist is free, easy to use and very effective for selling items. However, the audience is primarily local and the number of listings for IQD is relatively small - even in the larger Craigslist communities.

The Iraqi Dinar dream may someday become reality for those investors willing to buy and hold dinar for the long-term. But people looking to liquidate their Dinar holdings today will likely take a significant loss on their "investment".

Tim Paul is a financial management executive with more than 30 years experience. His websites focus on personal finance issues including 401k Planning and whether investing in Iraqi Dinar currency is a sensible choice.

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Pricing Iraqi Dinar

If you are considering buying the Iraq Dinar in hopes of making a lot of money from a modest outlay of cash, you're not alone. This get-rich-quick idea has been circulating on the internet for about eight years now and shows no signs of going away.

Websites pitching the sale of Iraqi currency tell you that, before the 1990's Gulf War, 1 million Iraqi Dinar (IQD) was worth $3,200,000 USD. Today you can buy 1 million Iraqi Dinar for about $1,200! If the Iraqi economy improves as expected, and the Dinar is revalued at anything approaching the prewar exchange rate, a modest cash outlay today could turn into millions of dollars of profit. Iraq's vast oil resources, well-educated population and guaranteed rebuilding support from the United States are cited as further reasons the Iraqi Dinar is prudent investment. The websites' sales pitch is intuitive, straightforward and, to many, very appealing.

Sensible arguments (both for and against buying Iraqi Dinar) can be made. The purpose of this article is not to take one side or the other. Rather, our focus is on pointing out to potential buyers the enormous variation in Dinar pricing that exists.

Unlike actively traded stocks or bonds, there exists no formal market for pricing Iraqi Dinar transactions. When you buy Iraqi Dinar you will receive actual physical bundles of currency from a retailer, not an electronic entry on your brokerage account statement. Several factors impact the amount you pay for Dinar:

Dealer pricing - There can be wide variation in how much dealers charge for identical packages of Iraqi Dinar. For example, a recent spot check of pricing for 1 million IQD, uncirculated, in 25,000 denomination IQD notes (40 notes total) found prices ranging from $999 to $1,249 - a 25% spread. (On the same day, the official Central Bank of Iraq exchange rate was 1,000,000 IQD = $854.70USD).
Denomination - Large denomination notes will generally cost less than the same amount of smaller denomination notes. For example, one internet dealer recently was selling 1,000,000 IQD in 25,000 denominated notes for $1,160.00. The same purchase of 1,000,000 IQD in 1,000 denominated notes cost $1,500. This equates to a 29% spread for the same amount of currency.
Circulated or Uncirculated - You will pay a slight premium for never before used IQD notes. The same dealer selling 1,000,000 IQD in 25,000 denominated uncirculated notes for $1,160.00 was selling the 1,000,000 IQD package of circulated notes for $1,150.00.
Shipping and Handling - Expect to pay $20.00 to $40.00 shipping costs for a 1,000,000 IQD purchase. Some retailers tout free shipping but generally charge a higher base price for the currency.

For people willing to take the risk, a purchase of Iraqi currency may well prove to be a fortuitous decision. However, you should know that most experts do not recommend buying Iraqi Dinar. Only time will tell who is right. If you do decide to purchase Iraqi Dinar, be certain to shop and compare carefully to find the best deal. The Dinar marketplace is unregulated. It is particularly important that buyers beware in this arena.

Tim Paul is a financial management executive with more than 30 years experience. His websites focus on personal finance issues including 401k Planning and the pros and cons of buying Iraqi Dinar.

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What Everybody Ought to Know About the Forex System

The Forex System consists of a market characterized by its business platform that offers numerous ways for anyone to gain profit. Everyone can invest in different currencies of the globe. With its daily operations, almost billions of dollars are being traded to other currencies in the Forex. This is considered as one of the very satisfying deals that anyone could choose to invest their hard-earned money. Most Forex traders in the world know the ins and outs of the Forex system since this is one of the general kinds of trading activities that they need to do to be lucrative in this market.

Learning the system will gear you to be successful in trading currencies. Anyone could trade for currencies on the fixed margin meaning there is no need to invest big amount of funds. You can just buy any currency expecting for pertinent profits you can gain when you sell the currency you have. Anyone can have control on the investment and then get profit for the trade.

Using the Forex system for efficient trading is a helpful strategy. There are numerous types of systems being offered in the market today and most people are interested to try these systems with the objective of getting higher profits in trading currency. Since there are numerous Forex systems you can find online, it would be helpful if you could perform proper background check before you sign up with any system. This is primarily because of the fact that using a system does not always assure anyone stable profits or else thousands of people who are trading in Forex are now extremely wealthy.

Instead of employing the Forex system without any information, you should learn the skills on how to leverage the systems first. Varied systems would have varied principle in funding methods. Hence, it is always necessary for everyone to verify warily about the tools employed by the Forex System for lucrative trading. If the tools and methods are not suitable to your own level of understanding, you should never pursue to abide with the system or else you can suffer great loss.

In general, it might not be always lucrative if a person has obtained a Forex system for them to trade currencies. Success in Forex trading depends on the pertinent know-how of a person to gain profits through the Forex. This is certainly a basic idea that traders and beginners in Forex trading must master before they join Forex trading.

If you want to learn more about Forex system, you can visit http://www.forexsimplex.com/ for free Forex video training.

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The Psychology Of Trading The Markets

The psychology of trading the markets is something that very few people really take into account when they take up trading the financial markets. But it is actually a crucial skill to learn, and can be the difference between you being a quite clueless trader to a highly successful one.

All the really top traders know about the psychology of trading the markets, because they have been through the school of hard knocks and come out the other side still living. It goes with the territory of trading that you will often start very well, make some excellent profits, then all of a sudden, although you seem to be doing nothing different, you have a terrible run and are at risk of losing the shirt off your back!

And this is because trading the financial markets is not an exact science. Some days your system, if you have one, will win, and sometimes it will lose. The key is to make sure that when you do lose you keep your losses to minimum, and when you win you win with a healthy profit. This all sounds rather easy in cold print, after all, the markets can only go up or down can`t they?

It is not so easy because although in one day the GBP/USD will go down for instance, it does not go down in a steady line but goes down in a swinging fashion. So if you have a stop loss that is too tight you can get stopped out, or if your stop loss is too loose you run the risk of the trade turning and leaving you heavily out of pocket.

So you need to work out your level of risk carefully on each trade you embark upon, calculate your profit to loss ratio, work out how much of your starting bank you can afford to lose in one trade, and then trade accordingly. You must keep a clear head at all times and keep a tight rein on your emotions.

If you have set up a trade and it starts going against you, you must under no circumstances move your stop loss further away so as to stay in the trade as this is a recipe to disaster!! If you know anything about the psychology of trading the markets you will know that people will often do anything to avoid a losing trade, including moving their stop loss around 10 times until they finally run out of both the will to live and their money!

A huge part of trading psychology is knowing how to deal with the inevitable losses that come your way. You must learn to deal with them in a logical and rational way and wait for the next opportunity to trade. Incidentally, the worst thing you can do after a bad losing trade is dive straight into the markets again and trade. You are being impulsive and rash, and you must only trade when you are in a calm and even mood.

If you want to learn a lot more about trading, and also get a copy of a brand new trading system at no cost, then please take a look at http://www.tradingstrategiessite.co.uk/.

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The Best Forex Trading Systems

I am here to discuss about the best forex trading systems. Of course you know what trading systems are and what they do to your forex account. Forex trade systems are strategies or laws that guide your forex transactions. They are like rules that tell you when to enter a market, when to exit and how much to risk and profits to target for.

Now this is quite different from automated trading systems because in that case you depend on robots to do all the work for you while you observe or supervise as the case may be. But forex strategies guide you while you buy or sell currencies at your own risk.

Forex trading systems comes in various types and from various sources so it is difficult to determine the best of several options. What you should bear in mind is that you should do your own diligent research to come out with the best the world can offer. But this is a tedious work considering that there are thousands if not millions out there and a vast majority are not worth the time sorting them out, the reason for this article.

This article presents points to consider when making your choice of trading systems.

Let's consider point number one. Profitability of the system. Why is this important. Because you are in the business of currency trades and you target to make profits. So a good system should be able to tell you how profitable it will deliver. This is generally calculated in pips per month. This means that a good forex program that promises a certain number of pips per month say 300 for example is telling you exactly what to expect when you use it in your online trading live account. The more the pips per month ratio, the more the profitability of the trading system. You also stand a chance to double your investment in a few months.

Secondly,the historical drawdown of the system. Yes the maximum historical drawdown of a trading system should be considered when making your choice of forex trading programs. It is defined as the largest decrease in cash equity that has happened in the historical past of a forex account,which can be evaluated on a back test or on a live account. It is usually expressed as pips or as a percentage of cash float used when testing out the system. This drawdown is used to compare between different trading systems. You also use the drawdown to determine how much you need to invest in the system.

Another point to consider is the consistency or stability of a system. A forex system strategy with high profitability and income potential without stability is incomplete. What it means here is that you only have winning trades occasionally and periodically. Think about having winning trades once in a month and then the rest of the month you only observe the trend. It makes your trading experience boring. But with a stable and consistent one, you have all it takes to be in the trade regularly and profitably.

The profit-loss ratio of a forex system strategy better known as forex trading system is the next point to consider in picking out a good system. This is the ratio of winning trades to trade losses in forex transactions. The higher this ratio, the better for the system. So look out for a higher profit-loss ratio in a system based on forex transactions.

There are so many other points to consider when picking out the best forex trading systems but you get a better idea when you see a variety of these at work in a good forex trading blog. There you see numerous forex trading charts in video formats from various trading platforms.

All you do is compare and contrast with the above points in mind to add to your trading success. I have a few recommendations by the end of this write up. Thanks for your time.

If you are looking for The best forex Trading systems to boost your trading account and income potential,then you need to see these forex Trade systems at work here. Thanks for your time.

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Tips on Choosing the Best Currency Trading Programs

The availability of numerous currency trading programs today makes it quite confusing to choose the best program that suits your needs. These forex programs are meant to make the life of forex traders easier by giving them the tools and relevant information about the foreign currency market that can significantly improve the potential earnings of traders and their clients' portfolios.

The success of the first batch of currency trading programs years back resulted in the emergence of various brands offering the same services. Some of them are inferior in quality, yet are still as expensive as the best ones. These programs only ripped traders off their earnings by not giving them the real value of the amount they invested in their products.

To avoid subscribing to inferior quality trading programs, it is important to consider several factors that can help you in sorting out inferior trading programs from the superior ones. One of these vital factors is excellent customer service. Keep in mind that programs like this are service-based products that rely mainly on the services provided by the company. That is why it is important to check the type of services that the program provides. This includes the response time to your queries, as well as how well they managed your issues and problems at hand.

To do this, try to ask questions via the customer service of each program, and compare the quality of their services based on their responses. You will also notice that some programs do not even have customer service or phone lines that allow you to ask questions during times of emergency.

Always remember that currency trading programs are mostly about investing on the right currency at the right time. A difference even by a few seconds can result in heavy losses or lesser profits at your end. Therefore, timing is very vital in this case. If you encounter some issues while using the program, it is imperative that such issues must be resolved in the soonest time possible. It is for this reason that you have to ensure that the currency trading program that you are planning to subscribe offers awesome services with fast response rate.

Similarly important is the user interface of the program. Each software has its own unique interface. Some of them have simple designs while others have relatively more complex designs. Go for the ones with simple designs that are user-friendly. However, you must also make sure that the program is also equipped with the standard features, especially features that allow you to halt or minimize losses and features that allow you to program the software to take profits at a certain level of percentage earnings.

Lastly, go for currency trading programs that offer trial periods or a money-back guarantee. Companies that offer guarantee, even for a few weeks or months, are confident of their products or services. This gives you added assurance on the good quality of the programs they are offering to their customers. Thus, when searching for forex programs, make sure to consider these essential factors and you shall enjoy higher chances of achieving success in your forex trading business.

My name is Alex DeGuzman and I am an expert in providing useful tips for forex trading courses. Please visit my site at http://forextrading-online.org/ to find proven tips to succeed in forex trading online.

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Why Forex Currency Trading Software Is Embraced By 40% of All Traders

The forex market is the largest investment market on the planet as it is encompassed by a number of individual trading markets which all have their individual opening and closing times. These schedules overlap with one another so it can be very time consuming to keep on top of the forex market around-the-clock. This is why so many investors choose to outsource their analytical work to forex currency trading software.

Forex currency trading software is that which automatically carries out every aspect of investing in your stead. This is not limited to analytical work but it actually goes the extra step and places and ends trades for you in the forex market at the most opportune and responsive times.

Forex currency trading software keeps on top of real-time market behavior around the clock, scouring it looking for high probability trading opportunities to further investigate. It invests accordingly when it finds a high probability trading opportunity using your money and then follows that trade around-the-clock to ensure that you are always on the winning end of your trades.

When that investment turns out of your favor, the program trades away the now bad and costly investment to shield you from experiencing any loss.

Using forex currency trading software to invest in the forex market is a good idea for a number of reasons. First and foremost, using forex currency trading software obviously enables anyone to invest in the forex market like the pros without needing the time nor experience to devote towards it because every aspect of investing and analytics is carried out 100% in your stead.

This technology has enabled thousands of first-time and experienced traders to realize their financial independence without having to lift a finger.

Secondly, using forex currency trading software is a good idea because it's much more cost effective than hiring a broker to do the same job and it's arguably more effective at that. Brokers charge fees and commissions on your gains to remain employed, whereas forex currency trading software is able to keep a constant surveillance over real-time market behavior 24 hours a day for a one time fraction of the cost which you'll pay a broker.

Finally, using forex currency trading software is the most reliable way to invest because every move which the program makes for you is the product of algorithmically deciphered market behavior. No emotions ever factor into your trading and in a market where emotions kill more successful trades than any other means, this is the most reliable way to invest hands down

Even if you're fresh off the boat when it comes to forex investing or you don't have the time to devote to it, if you're ready to realize your financial independence I highly suggest you give the best forex currency trading software a chance.

I've compiled a review site to share my experiences and reviews on the best systems I've used which you can visit by clicking on this link for forex currency trading software.

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What Is a Forex Trading Bot and How Does It Resemble a Cash Cow?

Introduction

This resource aims to introduce people to the world of automated Forex trading, and help the them get started.

It will also out line the dos and donts of this process, with the intention of helping new user avoid costly mistakes.

What is Automated Forex Trading?

So what is Automated Forex Trading?

Well, if you have ever traded before, whether it is stocks, CFD or Forex, then you will have likely have to learn and adopt a trading system. This system could be based on technical analysis on charts, then you have to sit there in front of your computer screen, every time you decided to make a trade.

Most people watch their screen for the best part of the day when day trading.

Now, imagine you hired an "expert" to trade for you. This expert will watch the charts for you and make the trade for you base on her extensive trading experience. And she will report back to you at the end of each day of her results, and how much money she has made (or lose) for you, while you sit at the beach sipping coconut juice on the Gold Coast in Australia.

This "Expert" is a computer program, in which we call "Expert Adviser", or trading "Bot", and this bot is used exclusively (in most cases) to trade on the Forex Market.

So in a nut shell:

Automated Forex Trading is the act of using a computer program to buy and sell currency pairs on the forex market.

The platform in which this "Expert Adviser" operates is MetaTrader, and most Forex Brokers will support the Meta Trading Platform.

The good and the bad of Automated Forex Trading

So if Automated Forex Trading is about getting a robot to make you money on the market while you sleep, what's the catch?

The Bad

Well the catch is the not all Expert Advisers on the market today are profitable over the long run, and even the 'good' ones need to be properly managed and configured to ensure it's running smoothly so it doesn't "over bet" itself as your capital increase over time.

So for the newbie who just got his hot hands on a new "kick ass" bot can potentially lose money due to the lack of testing, poor configuration and the lack of proper money management.

The Good

But the good news is that, if you take your time to property test your bot, give it proper settings and calibrate it monthly, and have a conservative money management strategy, then you will benefit from trading bots greatly over the long run.

If done correctly with trading bots, then you can have PASSIVE income.

Passive income in my option, is the "Holy Grail" of becoming rich. It means, you earn money while you sleep.

Getting 5-10% (or more) on your money every month is very achievable, which compounds to about 79% to 313% per year. This is a great return, compared to your average term deposit in Australia at the time of writing is only 6% per year.

So say we are conservative, and use 79% return on investment per year, if you invest $5000, in 3 years time, you get $28,676!

And all this time, you did nothing, other than check your bots every month.

What do i need to get started?

Now that you know the potential of Forex bots to become your "Cash Cow", how to we get started?

Well, you will need 3 steps:

1) Sign up with a broker

There are many brokers out there, for a list of recommended brokers, please see below.

Please note that brokers WILL affect your performance, some brokers have smaller spreads than others, some brokers can even rip you off, and create artificial spikes to push your bot into triggering its stop losses, so make sure you do your research.

Make sure you create a demo account with that broker first.

Once you downloaded your broker's version of Metatrader 4, just install it by following the instruction.

Once installed, open the application and have a play with the interface.

2) Get a Bot

There are many bots on the net that you can download, some are free and some you have to purchase. I have a recommended list of bots that i use, please see below for more info.

And before choosing your bot, make sure you read about it.

Once you get your bot, it is then a matter of copying the source file of the bot into your MT4. Most bots will guide you through the installation, so this step is straight forward.

3) Test the bot

No matter how good the bot claims to be, you will need to do some backwards and forward testing on it before you can give it real money to play with.

In MetaTrader 4, there is a function call "Strategy Tester". You can use this to feed historical data into the bot of your choice, and see how it performs. This is called "backward testing".

Even more important is to do "forward testing" which is using your demo account and run the bot with live data.

Knowing how to test and configurate your bot correctly is an integral part of your success, so skipping this step can be very bad for your bank account.

Final Thoughts

There you have it, I hope this short article has given you some insight in this exciting industry, however, we have barely scratched the surface.

To learn more, please subscribe to my newsletter, by subscribing you get:

1) Bonus material about the best FREE bot that you can get right now, along with back tested results to show how much money this Bot can earn for you. And yes i do use this bot myself.

2) Send you a link to my Forex Trading Bot Blog which contains more valuable information about:
A list of Recomeded bots that I useHow to Backtest your bothow minimise your risks when using BotsA list of recommended brokers that offer very low spreadsmuch more...

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Trading Systems Guide

This is a trading systems guide which I hope will give you an insight into the trading world and how systems can work for you. There are many, many trading systems out there that, if used correctly, can give you a good return on the financial markets. There are also some very poor systems that will lose you money hand over fist if you are not careful.

Let us first look at the types of systems there are. For one we have the trading systems that rely on charts, of which there are many. Financial charts can be used in a number of ways, and various parts of the charts can be analysed to provide entry and exit points in a trade. A system may use pivot points which can be drawn onto the charts, which will hopefully show where a trade is likely to reverse, it can use the two or three moving averages to pinpoint which way the trend is likely to be. There are also stochastics to look at on a chart, and these give an indication of the direction a certain currency pair is likely to be heading and also an indication of whether a currency pair is either overbought or oversold.

The financial charts can be looked at in different time frames, and the most popular of the time frames are the 5 minute charts, the 10 minute charts, the half hour charts and the hourly charts. The candle on the chart indicates the direction of the currencies, so any given chart if the last candle is green it means it is rising and if the last candle is red it means it has fallen in the last time period. Trading systems can use one or a combination of these indicators to try to work out the future direction of a currency pairing.

There are also software trading systems that have proliferated during the last few years. This software will often give you a signal, or a beep on your computer, or an email, when a trade is generated by the software system. Another signal will indicate the end of the trade.

Another fashionable invention has been the trading robot, and this as it implies does all your trading for you. It automatically places and closes trades according to how it has been set up and what indicators it is working on. I have not been impressed with the ones I have come across so far and am yet to be convinced of their validity.

If you want more information on trading systems and the opportunity to obtain a brand new trading system at no charge then please go to http://www.tradingstrategiessite.co.uk/.

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Starting Your Forex Trading Career

The Foreign exchange market is the decentralized financial market for trading currencies. The global foreign exchange market is distinctive among financial markets in lots of ways. One of these is that it was not historically utilized as an investment vehicle. It had, as well as still maintains to a certain extent, a somewhat more utilitarian function. In our globalized economy, most enterprises include certain global exposure, making the need to exchange one foreign currency for another to be able to conclude transactions.

Financial centers around the world operate as centers of trading between a broad range of buyers as well as sellers around the clock, with the exception of weekends. The Foreign exchange market determines the relative values of new currencies and assisting global trade in addition to investment, by enabling currency conversion. In a standard foreign exchange offer, a party purchases a quantity of one currency by paying a quantity of a different currency. For instance, it permits a business in the United States to import merchandise from the United Kingdom and pay pound sterling, even though it's earnings is in United States dollars.

A unique characteristic of the foreign exchange market is that it's an over-the-counter (OTC) market, meaning that there is no central exchange (like a stock exchange) where transactions take place. Instead, top-tier transactions are made inside the "interbank market", which stands out as the collection of the world's largest currency center financial institutions, all free to buy as well as sell currencies among each other at any rate they might be in agreement upon.

The next level of the market is made up of smaller parts of larger transnational institutions. This is,for example, a bank branch in the United States deals with another branch of the same bank in, say, another country.

Most retail Fx brokers are a part of the 3rd level, as they often deal with only a single 2nd tier liquidity provider. This is not always the case, because some retail brokers offer direct access to multiple liquidity providers, and are consequently themselves a part of the 2nd tier. This is especially true of Electronic Communication Networks (ECNs), who route retail traders' orders directly to the interbank market.

By far the most respected regulatory bodies are the US-based National Futures Association (NFA) in addition to Commodity Futures Trading Commission (CFTC). Nearly all Foreign exchange brokers, even if they are not situated in the United States, are members of the NFA and registered Futures Commission Merchants (FCMs) with the CFTC. The UK based Financial Services Authority (FSA) is also a well respected regulating body, as is CySEC (Cyprus), ARIF (Switzerland), ASIC (Australia) in addition to SFC (Hong Kong) amongst others. Always check the sites of the regulating organizations themselves - they all deal a searchable database that allows visitors to locate regulated members by name.

Deciding on the best forex broker is one of the most essential decisions you want to create at the beginning (or at any point) of your FX trading career. The to begin with thing you want to do is check whether the broker is regulated. The brokers who are regulated choose to be so, in order to fit a layer of legitimacy to their reputation.

It's also essential, particularly for United States based foreign exchange brokers, to be fully capitalized. Well capitalized companies tend to be much more secure plus less prone to insolvency. This is particularly true in the US as brokers here are not required to keep purchaser funds segregated from company operating capital, so clients are at increased risk in case of insolvency.

Furthermore, if the broker is going to keep client funds segregated, it's certainly a bonus, since it provides additional protection of client funds even in case of insolvency. FSA regulated agents, for example, are needed to keep client funds segregated.

V. Falcon is a writer who specializes in Forex Trading. You can check her latest website at Forex.Esaleone.net

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Trading Strategies for a Bear Market

In my last article I wrote about trading strategies you can use in a bear market. We're hearing a lot lately about being 'bearish' in these current markets, but it's worthwhile considering how you can use trends to help you with your trading decisions, even during these tough trading times.

Secular bull vs secular bear market

First of all, it's worth taking note of whether we're in a secular versus a cyclical trend. This will make a difference because while a cyclical trend may last years, a secular trend can last decades.
Most analysts think we are in a secular bear market. That means we may see a downward trend which could take place over decades.

However, it's not all doom and gloom. Even within this secular bear market, we are likely to see a number of cyclical bull and bear trends. And that's where you might find opportunities in those shorter cyclical trends to make some money. You just have to know how to identify the trends.

So to recap, a secular trend is the big long trend and a cyclical trend is the shorter trend within the primary secular trend.

US market and cyclical bear markets

It's worth looking at the history books to see how shorter trend cyclical bear markets panned out.

The biggest cyclical bear market was from 1929-32 which saw a decline of around 90% in the Dow Jones Industrial Average (DJIA).

There were also bear markets in the following periods which saw losses of around 50% for the DJIA:

1937-38

1981-82

2007-09

1973-74.

The longest bear market was 1946-49 which saw losses of around 25%.

And for the year between 1973-1974 we saw an interesting bear market. This was a time where earnings every quarter grew and yet the stock market tanked 56%.

The Japan story and the secular bear market

Another interesting lesson from history was the Japanese experience in the 90s. That's where we saw a long-term secular bear market.

From the peak of the share market in 1992 to the recent lows in 2011, we've seen Japan lose 80% in value in their sharemarket. While this is a sobering statistic, there has also been potential for massive gains. Here's how...

Take advantage of the cyclical bulls

During long-term secular bear markets, a buy and hold strategy rarely works. That's because over that time, the market may lose 80% in value like it did in Japan in the 90s. But even in that secular bear market, there were huge cyclical bull markets. In the case of Japan for example, the biggest rally was an impressive 125% from 2003-2007.

To take advantage of the cyclical bull markets, the key is to have a method to identify these bull turning points.

Turning points using moving averages

A longer term moving average, like the 200 day moving average, is a useful tool for identifying turning points. This indicator only gives good signals in a trending market (where the market is moving up or down). It does not work in a non-trending market (where the market moves sideways).

You can identify a sideways or non-trending market using visual methods, that is, by looking at price peaks around the same levels and troughs around the same levels.

Alternatively, a triple moving average system can be used.

Triple moving average

To identify a turning point using triple moving average indicators, for example, you can chart a 50 day, 100 day and a 200 day moving average.

If all three time periods show prices moving in the same direction, the market is trending. If not, then it's not a good idea to use a trend indicator such as 200 day moving average.

200 day moving average

But in cases like right now, where you can see a clear downward trend, then a 200 day moving average can help.

When the price line moves above the 200 day moving average line, it usually signals a buy signal. If the price line moves below the 200 day moving average line, it usually signals a sell signal.

Just remember, like other techniques including fundamental analysis, technical analysis is not an exact science, but it can be helpful to use probability to enter and exit positions.

Turning points using P/E ratios

During a secular bull market, a higher P/E ratio is expected. However, during a secular bear market, P/E ratios bottom out at depression-like levels.

The average P/E ratio of the Australian sharemarket in the last secular bull market from 1982-2011 was 15.1. The P/E ratio peaked at 22.8 in 1994.

During the last secular bear market in Australia from 1969-1982, historical P/E ratios bottomed at 5.4 in 1974. The average P/E ratio for the Australian market was 8.4 from the period 1974-1981.

So while commentators are busy saying that valuations are cheap for the market, you need to consider that yes, they may be cheap if the market was in a secular bull market. But if you think we're in a secular bear market, then valuations are actually quite expensive.

Even for long-term fundamental investors, it becomes important to determine the type of market conditions which dominate to figure out which is the appropriate average to apply. And right now, we just have to wait and see which way the worm will turn.

Julia Lee is an Equities Analyst for online shares trading platform Bell Direct. Julia provides information on share trading and online trading for frequent traders and investors.

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The Important Role of Forex Day Trading to Business Investors

What is Forex day trading?

It is the transaction or the exchange that allows you to buy or sell different currencies. If you want to buy UK pounds, you can convert them to the dollars you have. After that, the currency ratio rises. You can sell pounds and buy dollars again. By this transaction, you can get more dollars than you had at the first place.

Forex day trading market has higher liquidity than the stock market. They have as much more money being exchanged in the transaction. It is spread among the banks all over the world, resulting to a 24 hour trading services.

Forex day trading for your financial advancements

Currencies are being traded in an international foreign exchange market, also known as the Forex market. Transactions are made in the main marketplaces (bourses) and also done in the world's biggest financial centers including New York, London, Frankfurt, Zurich, and London. Traditionally, the only way to do this is through trading floor of one the bourses. Today, people can make transactions anywhere through a secure Internet connection or virtual office.

Modern Forex day trading

Today, many traders operate in a global network. They take positions in the market, making investment decisions based on the relative values between two currencies. They can also get a particular price of a currency. The value of currency fluctuations can be renegotiated through trading activities. The amount of currency is also an indicator of the levels of currency supply.

There are also market behaviors that might demand for greater amount. This might be an indication of a weakening supply. Low supply and an increased demand may drive the price of the currency against the other value of the currencies like the dollar. This keeps up until the price reflects better to what the traders are prepared to pay when short supply occurs.

Another situation you need to consider is when there is higher demand. This means it will cost more dollars to buy pounds. This only shows to a weakening of dollar in comparison. Companies need to analyze situations like this for their basis on investment decisions, whether they need to purchase or sell currency.

Forex trading training

Forex trading has become extremely popular. It has become more profitable to trading in the stock market. If you want a fast moving market, where different currency transactions are made every day, foreign exchange currency trading may be of benefit.

If you want to be successful, you need to develop a plan and learn strategies and systems. It does not really pay to venture out on your own. There is a wealth of experience out there where you can learn from. If you want to make money consistently and avoid unfortunate losses, you must know what you are doing.

Forex trading training courses should be organized to develop a safe strategy that allows you to manage your risk. At the same time, you need to capitalize on the high level margin opportunities available in the currencies per transaction.

Judith Perry is an entrepreneur educated on Forex day trading and Forex trading training.

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What is Binary Options Trading?

When it comes to forex trading, there is a plethora of options available to you. Of these options, binary options trading has become quite popular among investors in recent years, because of the low level of investment needed and the potential to score higher profits is there. As such, this realm of forex trading is particularly useful for novices who are just getting started in this investment practice and want a little more experience and knowledge building before dumping larger amounts of your money into forex accounts.
Unlike traditional models of investing, such as purchasing stocks or bonds, binary options are contracts in which your income relies on the direction of the given asset within a certain time frame. This is known as a less-risky option in forex trading, as you, the investor, get the same set income regardless of how much the value rises in the contract. The only thing that matters in binary options forex trading is that you were correct in your predictions.
To simplify matters even more, there are just two options in binary forex trading that you need to be concerned about: put options and call options. A put option is an investment made when you believe the price of the contract will be below the original price upon expiration. Meanwhile, a call option is the exact opposite, with you expecting the overall price to rise above the original value upon the expiration date.
This can easily be applied to forex trading. For example, if economic indicators are looking bad for the European Union, you could purchase a put option on a Euros contract, with the expectation of the currency’s value to drop by the time your contract is up. Likewise, if the value of the US dollar looks like it could be rising in the near future, the best way to capitalize on this while minimizing personal risk would be to purchase a call option on the USD and profit when the value does in fact, go up. Your leverage would not be as high as, say, a traditional forex trader relying on the currency’s consistent value and no set asset ceiling to be gained (or lost). However, binary options are essentially one of the safest bets you can make as a forex trader.
In a highly volatile market such as forex trading, it’s quite beneficial for newer or small-time investors to have the binary options available in order to minimize the risk on their investments. This allows them to learn the ropes of forex market practices and learn to read forex trading signals without suffering heavy losses along the way. It has all of the same currency pair mechanisms of traditional forex trading, but with smaller caps and less risk factor.
This article was written by Will from Forex Trading Finder. Visit Forex Trading Finder for more information on Binary Options Trading.
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Binary Option Versus Forex Trading: When One is More Favorable Than the OtherDid you see these options trading secrets videos?Top 3 Forex Trading TipsStocks versus FOREX TradingFREE Video: The Options Trading Manifesto – A Tale of Two Traders

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Aussie Dollar in a Copper Cauldron!

by Jack Crooks

I keep thinking that any day now the Australian dollar will take a dirt nap. It took one back in mid-2008, falling a stunning 39 percent in just three months in the midst of the credit crunch. This shows just how vulnerable the Aussie can be to a growth accident that slams the world economy; it is the premiere risk currency among the major dollar currency pairs.
Global growth is fading fast again, and copper seems to be highlighting that story. It could be lights out for the Aussie again if that’s the case.
As you can see in the chart below, the copper futures weekly uptrend line is broken, and the primary trend is down. The yellow rectangular box shows what happened in the midst of the great credit crunch of 2008.

And as you may know, copper is considered a key industrial metal; its price movement is often used as an indicator of the direction of growth in the global economy.
If you are a regular reader of Money and Markets, you likely know that China is the world’s largest consumer of copper. But the drop in prices has not come as a welcome development. This is because …
Copper Has Taken on an
Important Role in Financing
An increasing number of Chinese firms have been stockpiling the metal and using it as collateral — because the government’s measures to curb inflation have limited the firms’ access to credit. Such financing links the price of copper to other key elements of the Chinese economy, including the growing speculative real estate bubble.
China’s tightening monetary policy has made it more difficult to access credit through official channels. As a result, Chinese small- and medium-size enterprises have increasingly turned to copper for use as collateral in loans, which are then funneled into other sectors of the economy.
The falling price of copper means that the collateral initially put up for the loans in yuan is no longer worth what it once was, decreasing the likelihood that the borrower will be able to pay back the loan.
If firms default on debts, then others connected in the chain will default — and determining where loans have been invested is nearly impossible.
Banks and state-owned enterprises (SOEs) are also potentially vulnerable. A high number of SOEs have also used copper as collateral. These firms are often involved in the real estate sector — even if their primary function is not always directly linked to it — and are therefore exposed to the country’s growing real estate bubble.
The government would bail out the more politically favored SOEs if necessary. But that would leave fewer resources to be allocated to the private sector, which is crucially important to China’s growth.
It is all about feedback loops. And …
This One Could Turn Quite Vicious
for China and In Turn the Aussie Dollar!
The Australian economy is highly dependent on China for its own growth. For a while now, I’ve been saying that Australia has effectively become a satellite country of China. Take a look at this chart showing China’s imports from Australia thru September.

Lower copper prices could put a real damper on Australia’s growth. Another major hit is already in play: Falling consumer demand from the euro zone and the U.S.
And if the bubble were to finally pop in Chinese real estate, it would be much uglier indeed.
So we have the potential for real demand in copper and other commodities to decline sharply. Toss in the added thumping from the internal Chinese speculation, which would likely push the metal back toward its credit crunch low, and you get another 50 percent decline in the red metal.
And guess which currency has been tightly correlated to the price of copper over the last few years? If you said the Aussie dollar, you were right on!
There are two key takeaways from the following chart of the Aussie/U.S. dollar vs. copper:
1) There is a very large divergence between the two price series; and
2) In the past the series have been highly correlated.

I suspect we will see a big move one way or the other. It could be copper soars. But for now, I’m betting the Aussie tanks.
Stay tuned.
Jack
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Stronger yuan, higher labor costs, euro zone threaten China’s advantageCanadian Dollar – The Ultra-Safe Secret Natural Gas PlayTaps for the DollarDollar Sharply Lower on China Reserve Diversification TalkPlaying the China Blame Game – The Currencies to Trade if the U.S. Launches Another Trade War
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