Currency Trading and Forex 100 Success Secrets 100 Most Asked Questions on becoming a Successful Currency Trader

Transcription

1 Currency Trading and Forex 100 Success Secrets 100 Most Asked Questions on becoming a Successful Currency Trader

2 Copyright 2008 Currency Trading and Forex 100 Success Secrets Notice of rights All rights reserved. No part of this book may be reproduced or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Notice of Liability The information in this book is distributed on an As Is basis without warranty. While every precaution has been taken in the preparation of the book, neither the author nor the publisher shall have any liability to any person or entity with respect to any loss or damage caused or alleged to be caused directly or indirectly by the instructions contained in this book or by the products described in it. Trademarks Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations appear as requested by the owner of the trademark. All other product names and services identified throughout this book are used in editorial fashion only and for the benefit of such companies with no intention of infringement of the trademark. No such use, or the use of any trade name, is intended to convey endorsement or other affiliation with this book.

3 Currency Trading and Forex 100 Success Secrets There has never been a Currency Trading and Forex Guide like this. 100 Success Secrets is not about the ins and outs of Currency Trading and Forex. Instead, it answers the top 100 questions that we are asked and those we come across in forums, our consultancy and education programs. It tells you exactly how to deal with those questions, with tips that have never before been offered in print. This book is also not about Currency Trading and Forex best practice and standards details. Instead, it introduces everything you want to know to be successful with Currency Trading and Forex.

4 Table of Contents Simple Currency Trading Tips to Gain from Forex...9 How to Set Up a Forex Account...11 Learn to Trade like a Pro by Taking a Forex Course...13 Forex Market Facts to Help You Succeed...15 The Pros and Cons of Client and Web Based Forex Software...16 The Importance of Forex Trading Practice Platform...18 Steps to Set-up a Quick Online Currency Trading System...20 The Importance of Fundamental Analysis in Foreign Currency Trading...22 How to Choose the Best Forex Broker...24 Tips to Trading Major Forex Currency Pairs...26 How to Become a Proficient Forex Online Trader?...28 Exiting a Forex Trade to Minimize Loses and Maximize Gains.30 The Advantage of Automated Forex Trading Software...32 A Professional Approach to Online Forex Trading...34 How to Profit from Forex?...36 Understanding the Different Types of Forex Charts...37 A Beginner s Guide to Forex Currency Trading...39 Forex Signal: Does It Really Provide Help to Your Trades?...41 Top Trading Tips for the Novice Forex Trader...43 The Quick Ways to Learn Forex Trading...45 Automated Forex towards a Better and Competitive Market...47

5 The Truth about Retail Forex Brokers The Chart of the Most Traded Currency in Forex Forex Enterprise in this Financial Crisis Forex: Is it a Better Place for a Good Investment? Forex as the Next Business Platform Factors Affecting Forex Strategies Forex: A Perfect Business Trading Platform Effectively Learning the Ins and Outs of Forex Trading The Efficient Use of the Online Forex and Currency Trading Things to Remember prior to using an Automated Forex Trading The Required Capital Investment to Start Forex Business The Right Education about Forex What Drives Rise in the Exchange Rate in the Forex Market Understanding a Mini Forex Account Forex Signals: It s Time to Be Edgy The Right Strategy to a marketable Forex The Effects of Forex in the Global Market Tips towards having an Effectively Managed Forex Market The Elements that Impact Trade Currency The Basics of Currency Trading Exchange Financial Success in the Forex Markets Trading Currencies is better than Stocks Trading Forex Forum as the Best Place to Get Forex Tips... 75

6 Choosing the Right Forex Trading Strategy that Works...77 The Basics on Forex Currency Exchange Trading...78 Trading Forex: Real Time Quotes and Charts Very Important...79 Getting Your Forex Trading Signal in the Most Convenient Way...80 Forex Trading Training: Important for Success...81 Global Forex Trading: Learn Economics and Earn from Forex Trading...83 Forex Quotes And What It Says...85 Forex Traders Should Learn from Others' Mistakes...86 Choose Forex Trading Strategies That Maximizes Profit...88 Tools for FX Forex Success...90 Learn Currency Trading Is Free...91 A Comprehensive Introducition of CMS Forex...92 Daily Forex Market Dose a Day...94 Learning Things about Forex Alerts and Signals...96 Forex Managed Account: Make Trading Trouble-Free...98 How to Trade Forex? Learning the Basics is a Good Deal Currency Forex Learn Online Trading Foreign Currency Exchange Trading and Forex Trading All You Need to Know about Forex Currency Trading System What Retail Forex Trading Signals Can Do Looking Closely at Managed Forex Accounts Providers...110

7 Learning the Value of ACM Forex Utilizing Currency Trading Software Free Forex Charts Forex Information Supplied by Free E-Books Practical Forex Tips to Help Traders Succeed A Brief View on Calendar Forex Forex Investing and the 10 am Rule Forex Info Designed for Online Currency Traders The Essence of Forex Market Trading Forex Trading News: Asset Information for Traders Understanding Hedging in the Forex Market How to Predict the Behavior of Forex Pips? Tips on Engaging in Trade Currencies Successfully Suggestions on How to Become a Forex Pip Expert Why GFT Is Preferred Among Forex Firms? How to Find the Best Forex Trading Platforms Why Fx Currency Trading is Popular Starting from Scratch: Learn How to Trade Currency Why Should You Take Currency Trading Training? What Exactly is Managed Forex Trading? A Glimpse at the Currency Trading Market Forex Capital Market: Global Currency Trading Forex Directory: Semblance of Order Forex Brokerage: Execute Sale or Start Buying

8 Forex Demo Account: Learning Forex What Foreign Currency or Forex Trading Is All About Importance of a Currency Trading Broker The Basics of Foreign Currency Trading Become Part of Forex Forums Maintaining a Forex Margin Account Tips on Getting Started on the Forex Market Why Go For E-Currency Trading Learn What Forex Auto Trading Provides Put Your Investment on Forex Funds Trying out Free Forex Signals First...160

9 9 Simple Currency Trading Tips to Gain from Forex Many Forex traders have gained a lot from currency trading. In fact, some traders already made Forex trading as their primary online business. You can gain from currency trading also especially if you know the simple secrets of successful traders. Here are some simple currency trading practices employed by successful traders. This is not a foolproof approach but you can gain insights from these practices. First, you have to minimize your currency trading activities in order to gain more from the market. This may sound contradictory at first. But did you know that most traders who lose a lot from Forex trade almost every day at the market? Frequent trading multiplies your risk. And because the Forex market is a very risky venture, you should only trade when conditions are favorable to you. Limiting the frequency of your trading activities can also shield you from unfortunate successive losses. Second, when you start trading at the Forex market, always trade with big leverages. Trading with a huge leverage can significantly increase the risks you are taking. But this trading method also promises big financial windfall and profit. This is just similar to other business ventures. If you risk big capital, you also stand to gain from bigger profits. Always be sure however that you have enough remaining funds in your account so you can rebound in case you lost several big deals.

10 10 Lastly, avoid spreading your trades too much. As much possible, you must trade only in one or two currency pairs. In this way, you can maximize whatever gains you make from your successful deals.

11 11 How to Set Up a Forex Account Before you can start trading at the Forex market, you need to set-up an account with an online broker. Setting up an account gives you access to the broker s platform so you can open trades and transact deals at the market. There are three types of Forex accounts that you can use. If you want to train yourself, you can set up a training or practice account. Normally this kind of account is available only for 30 days. There are Forex brokers however that provides unlimited access to a demo account. Another type of Forex account is the Mini account. This is ideal for novice Forex traders who want to learn Forex through actual trading deals. Normally, you are required to deposit a minimum amount to fund your account. This could range from $100 to $500. Standard or premium accounts are mostly utilized by advanced Forex traders. You need at least $2000 to open a standard Forex account. This type of account however has huge trading leverage of up to $200,000. It also features advanced charting and other extra tools for trading. In any type of account, you need to register or sign-up first with an online Forex broker. After the sign-up procedures, you can download the Forex trading platform provided by the broker. There are platforms that require different log-in information for each account. In most cases however, you will only need one user name for all account types.

12 12 Funding your Forex account can be done through several payment methods. The most popular is through credit card payments. You can also choose check or bank wire payments.

13 13 Learn to Trade like a Pro by Taking a Forex Course Forex education is very important if you want to succeed at the Forex market. By taking Forex courses, you will be able to understand the market, learn how to trade, and know how to create strategies. There are lots of online Forex courses available for novice traders. Taking online Forex courses is probably the fastest and the easiest way to understand the market. You can also learn advanced techniques by studying different Forex courses. You can take advantage of the free online courses offered by your Forex broker. A Forex course is just part of the many services offered by brokers to their clients. These courses can be in the form of webinars, video tutorials, audio podcasts, and one on one tutoring service. There are also Forex brokers that devote a whole web site entirely for the education of their members. These are called Forex educational portals and you can access the information on the site for free. Such educational portal can offer step by step tutorials on how to trade at the Forex market. You will be able to learn the basics of the market as well as advanced techniques in setting up a Forex strategy. Another popular method employed by brokers in providing Forex education is through daily tutorial. The broker will send you daily courses the moment you sign up with the service. courses can introduce to you the basics of

14 14 Forex. Most courses however have limited scope and it will not teach you the advanced techniques in Forex trading.

15 15 Forex Market Facts to Help You Succeed The Forex market is the biggest liquid market in the world. It is a billion dollar industry and most traders have earned their first million at Forex. However, you should also consider the fact that there are also lots of investors who lost at Forex. So before you start trading at the Forex market, it is best to consider some valuable facts that could help you succeed in the market. First, you should only invest money in Forex if you are capable of absorbing its loss. Do not invest all your finances at the Forex market. That is because the market is very unpredictable and you really cannot tell if you will succeed on it or not. New traders who succeeded at the Forex market have gone through this route. They never invested in the market more than they can afford. This helped them significantly in focusing more on the market rather than on the outcome of their investments. Second, it would take a lot of time to practice currency trading before you can say that you are a skilled Forex trader. Some traders, especially those with backgrounds on the financial markets, could have taken less time to learn the intricacies of Forex. This does not mean that you do not need more time to learn Forex trading just because others have learned it quickly. Lastly, you have to accept the fact that you will commit mistakes in Forex trading. The best you can do is to minimize the effects of these mistakes by applying loss limits on your trades.

16 16 The Pros and Cons of Client and Web Based Forex Software All Forex brokers and online Forex trading sites will provide a platform for you. This platform is called Forex trading software. You cannot trade at the Forex market without using Forex software. Some Forex platforms are very easy to use and suitable for new traders. Other platforms however have too many indicators, charting utilities, and complicated tools. This type of software may not be suitable for beginners but they are perfect for the advanced traders. There are two types of Forex platforms widely used by traders. The first is downloadable client software that can be installed in your computer. The other type is web based and can be directly used through the web site of the Forex broker. Downloadable Forex software is ideal if you have a fast computer. A Forex client is quite resource hungry because lots of information are being streamed to your computer every minute. The software may freeze or hang if your computer does not meet the minimum system requirements. The advantage of having a Forex client application is its capability for customization. You can easily customize the Forex software to match your trading needs and skills. You can also choose which information to be displayed on your platform. Web based Forex software on the other hand will not depend on the power of your computer. As long as you have reli-

17 17 able Internet connection, the platform will surely work. You can also access a web based platform from anywhere. The downside of web based Forex software is its limited functionality. You will get all the basic tools you need to trade from such software but you can never customize it.

18 18 The Importance of Forex Trading Practice Platform When you trade at the Forex market, you will be using a platform provided by the online broker. This is an application you can download. Everything you need in Forex trading can be found on the platform. The best way to learn how to use a trading platform is to practice on it using a demo account. Most Forex brokers provide demo accounts so you can try their services and learn how to trade. That is why it is important to take advantage of demo accounts and practice Forex trading. It is best if you can found a broker who provides unlimited use of demo accounts. In this way, you can maximize the account not just for training purposes but also to create strategies. Learning how to trade at the Forex market is the most important function of a practice platform. Aside from this, you can run different trading scenarios on it to determine which system will work for you. If you know how to trade and determined what strategy or system to use at the market, you can gain new confidence which is also very important in Forex. Being confident at the market will enable you to correctly analyze the movements and behavior of the market. This could result to more successful trades. A practice platform will also enable you to make necessary adjustments to your strategies. Strategy adjustments can be very