Forex-Moneymakers

Orlando Thompson asked:


Forex Charts are based on the forex market action involving price. Charts are a major tool in forex trading. There are many kinds of charts, each will help to visually analyze the forex market conditions, assess and create better forecasting, and identify forex market patterns and behavior.

Forex charts and spreads weigh heavily on the return on your trading strategy (this can have a huge affect on your profit or loss). As a trader, you are solely interested in buying low and selling high (like futures and commodities trading on Wall Street). Wider Forex charts and spreads means buying higher and having to sell lower.

A half-pip lower spread does not necessarily sound like much, but it can easily mean the difference between a profitable trade and one that losses money. The tighter the spread is the better things are going to be for you (Happy Days).

Nevertheless, tight Forex charts and spreads are only meaningful when they pair up with good execution of a well laid out trading strategy. A good example of this is, as you analyze your forex chart it shows a tight spread, but your trade shows it has filled, or mysteriously rejected.

When this occurs repeatedly, it means that your broker is showing tight Forex charts and spreads but is effectively delivering wider Forex charts and spreads. Rejected forex trades, delayed execution, slipping, and stop-hunting are strategies that some brokers use to get rid of the promise of tight Forex charts and spreads (so be on the look out for this type of activity and run fast if you notice it).

Both the technical and fundamental forex analyst uses Forex charts. The technical analyst analyzes the “micro” movements, trying to match the actual occurrence with known patterns. The fundamental analyst on the other hand tries to find correlation between the trend seen on the chart and “macro” events occurring parallel to that like (political and other events).

As you can imagine, reading and understanding forex charts can get confusing for the inexperienced trader. You can get most charts now online, as part of a subscription service, and they most often include frequent updates. Because technical analysis is such a popular method of forecasting and predicting movements in the forex market, there are many services available online.

If you would like to become more proficient in Forex chart techniques (and I highly recommend you do), joining a service that provides charts via the Internet, and assistance in reading and analyzing the chart information, this can be very helpful and profitable in the end.

So let us not talk a little about the different types of Forex Charts Line Charts The simplest form, based upon the closing rates (in each time unit), forming a homogeneous line. (Such charts, on the 5 minutes scale, will show a line connecting all the actual rates every 5 minutes).

This forex chart does not show what happened during the time unit selected by the viewer, only closing rates for such a time. Line Charts are the best simple way to chart for support and resistance levels.

Point and figure charts

Point and Figure Charts are charts based on price without time. Unlike most investment charts, point and figure charts do not present a linear representation of time. Instead, they show trends in price. A rising stack of Xs represents increases, and a declining stack of Os represents decreases.

This type of chart used to filter out non-significant price movements, and enable you (the trader) to determine critical support and resistance levels quickly.

Bar Chart

This chart shows three rates for each time unit selected: the high, the low, the closing (HLC). There are also bar charts including four rates (OHLC, which includes the opening rate for the period). This chart provides clearly visible information about trading prices range during the time period (per unit) selected (very valuable information).

Candlestick Chart

Kind of chart based on an ancient Japanese method. The chart represents prices at their opening, high, low, and closing rates, in a form of candles, for each time unit selected. The empty (transparent) candles show increase, while the dark (full) candles represent decrease.

The length of the body shows the range between opening and closing, while the whole candle (including top and bottom wicks) show the whole range of trading prices for the selected time unit. Pattern recognition is a field within the area of “machine learning”.

Alternatively defined as the act of take in raw data and taking an action based on the category of that data. As such, it is a collection of methods for “supervised learning”.

A complete pattern recognition system consist of a sensor that gathers the observations to be classified or described; a feature extraction mechanism that computes numeric or symbolic information from the observations; and a classification or description scheme that does the actual job of classifying or describing observations, relying on the extracted features.

In general, the forex market uses the following patterns in candlestick forex charts:

Bullish Patterns – hammer, inverted hammer, engulfing, harami, harami cross, doji start, piercing line, morning star, morning doji star.

Bearish Patterns – shooting star, hanging man, engulfing, harami, harami cross, doji star, dark cloud cover, evening star, evening doji.

Note: Keep in mind these are just general and not all-inclusive as the forex market is huge and are so with the charts and techniques.

Let us now look at the 5 top errors made where forex charts are concerned and why you should stay away from them.

1. Predicting with Forex Charts

A common mistake made by inexperienced forex traders (and some more seasoned),is thinking they need to predict to get profitable results – but of course this is simply hoping or guessing and is destined to see you lose. If you use charts the correct way, you will trade using the price changes and trends, you will not need to predict.

There is a big industry in forex trading that says prices move to a scientific theory and you know what will happen next – but of course, if prices did move to science, we would all know the price in advance and there would be no market.

Do not set yourself up and believe the prediction nonsense – make all your trades using reality of price change i.e. if a price comes to support, don’t predict support will hold, wait for it to move the other way and trade based on the fact it has held.

Another great way to trade is to trade now breakouts to new highs or lows – it is a proven fact that most big moves start from these breakouts, so you should make breakouts a consistent part of your forex trading strategy.

2. The More Inputs the Better

You may think five or six indicators must be better than one or two – very wrong!

The more inputs the more….



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Timothy Stevens asked:


There are a lot of online advertising materials that promote forex trading as an easy way to make millions in profits. Especially in these times of financial distress, not a few people are being lured into the business of forex options trading and currency trading with the promise of earning big bucks by making a successful trades. What is not made clear upfront is the amount of understanding and analysis that goes into making successful decisions. Whoever said that making money out of forex trading is an absolute guarantee is scamming.

There is much money to be made in forex options trading and currency trading, that is true. But not without making the right trading decisions made based on market information and an astute analysis of how the market is moving.

Any novice forex trader can benefit from going through forex schooling before actually dipping his toes, or for the more aggressive, plunging into the ocean that is the forex options trading and currency trading market. There are a number of basic concepts that need to be learned before one can actually swim in the forex market and stay in the market without drowning in its dips and waves. Perhaps the best way to learn is not necessarily taking in as much forex information in one sitting, but more importantly taking in the right forex information at the right sequence for maximum understanding.

This philosophy of graduated learning is employed at the School of Pipsology where novice forex traders are taken through the basics of forex trading from one grade level to the next. The elementary levels cover most of the information needed to acquire the skills and knowledge to fully understand the forex options trading and currency trading market. Completing the elementary levels will equip the novice trader with the tools he needs to further develop his abilities in making profitable decisions.



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InformedTrades asked:

http://clk.atdmt.com/FXM/go/nfrsieng0100000402fxm/direct/01/ A lesson on how ot use the free forex charts in the FXCM forex demo trading platform. For active traders and investors in the currency market.

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Andrew Daigle asked:


Many people have made a lot of money through Forex trading. Forex trading may appear complicated initially, however once you know the rules of the game it would be become easier to plan your trades. Basically a foreign exchange market is where currencies are traded, Forex has become an important investment vehicle for most people. The internet has made it easy for online communities to make profits through global Forex trading. Being the busiest market, money moves at the speed of light here with more than US$2 trillion worth traded each day. With so much money at stake, prices are not affected by one single investor. Unlike a stock market, it takes just a few seconds for Forex trade to open and close. As a Forex trader, you need to have a Forex account followed by effective Forex trading strategies to be successful. You need not have formal Forex trading education for trading however, it helps to seek guidance from someone who has been trading for a while. When it comes to implementing a forex trading strategy, don’t expect that what may have worked for someone may work for you as well. Find one that fits your Forex investment style and needs. To begin with, you may require Forex trading software if you are planning to trade Forex. A good software program is typically required to compile information about market prices and you may choose between a web based or a client based Forex trading software.

In order to make good trades in a high paced market such as Forex, you must also have a high-speed Internet connection so that you have the right information at your fingertips. You need to understand what your software program can do for you so that you can make the right choice. If you are planning to download client based software, in most cases it can only be accessed from the computer on which it is installed. Besides, this may cause security concerns that you cannot afford to overlook. On the other hand, web based software is far more convenient and can be accessed from any computer. All you need to do is login with an Internet connection from anywhere and start trading. In addition, this type of software is less susceptible to viruses and not very easy to hack due to the stringent security standards being implemented. No matter what software you choose to use for your Forex trading needs, you must ensure that the software satisfies two main purposes; providing real time quotes and the means to trade quickly in the Forex market. While the web based software is more user-friendly, many prefer the client based one, as it updates you about the changes that take place so often.

For security reasons, brokers store client information on two servers at two different locations and in case of power failure at one of the servers; data is instantly and automatically transferred to the other server. As a result, you get a steady supply of information without even realizing that there was any form of interruption in data transmission. Besides, brokers also have a back up system so that data is not lost under any circumstances.

Now that you have all the necessary information regarding Forex trading software, all you need to do is have a proper Forex trading system in place and prepare yourself for online trading. You can make plenty of money using a Forex trading platform and if you are willing to take a little risk, you can surely make it big in the Forex market. There are also risks involved too, so learn all you can before trading real money and start using a free demo account until you feel comfortable trading.



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Andrew Daigle asked:


Said to be one of the largest exchange markets, the Forex market is gaining immense popularity. The possibility of earning large profits adds to the appeal. Although trading in this market is not easy, it can be, provided you find a proven and profitable Forex trading system.

Even a planned investment can often take a wrong turn. The investor has a bad day even after planning his actions. Nevertheless, this is of little concern to the Forex trader. Every trader in the Forex market knows that to keep the losses to a minimum the trader will have to follow their forex trading strategy and use proper money management. In this way, he will learn to survive the volatile investment market and make profitable trades in the long term.

The Forex market allows traders to conduct their transactions in a rather emotionless manner. This is because the pre-determined guidelines that form a forex trading system can make it easier for traders. Executing actions is now easy as there are fixed price levels of initial stop loss and trailing loss. Apart from this, there already exists a computed price profit, which is projected in the traders interests. This computation allows the trader to know what his level of loss or profit is and even the risk to reward ratio before he even begins to trade for the day.

Using the proper forex trading system, the trader plans his trade and makes a profit with the right moves. But on the other hand, if the trader makes a wrong move and is more likely to make a loss than a profit, the Forex trading system will show the trader that he is making a wrong move. In this way the trader is able to move out of the situation quickly and the huge losses he would have otherwise incurred is no more a worry. Trading in this way protect the trader from large losses and helps lock in higher profits for winning trades.

There are many types of forex traders from position traders to swing traders to day traders. Forex traders who buy and sell their currencies or open and close their markets on the very same day are considered day traders. There are many traders who believe that the day trading system is not worthwhile and do not give it much importance, but with the right forex trading strategy, day trading can be very profitable. When researching a forex trading strategy, what you need to do is review it by finding out the reactions of other Forex traders. You can ask any existing Forex traders about their trading experience and how they like their trading system and if they consider it to be a profitable one. Trading forums are another way of receiving reviews about Forex trading systems. As there are a number of forums, you will have no difficulty in getting the information you require. However, many professionals feel that day trading is quite profitable though it is not the easiest way to trade. If this wasnt a profitable method of investing then how does one explain the large number of day traders who earn their income solely from this source? Therefore, if you wish to be part of any system that relates to day trading then it is necessary that you have sufficient knowledge about many Forex trading systems and strategies.

Many sites let you in on the Dos and Donts of Forex trading. There are no secrets but there are things you do need to be aware of. These sites provide you information on Forex trading strategies, forex trading techniques and all other information that you may be in need of. You can also find a number of helpful forex trading tools, information and techniques are made available to make Forex trading easier for the trader.



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Regi Ross asked:


The internet is indeed a gift of today’s advanced technology. It has changed the communication industry and now it is being used for different kinds of tasks. It seems that everything is possible through the internet. Before, the only way to trade in the Forex market is to be there physically. But now, you can trade even in your own home or in the office as long as there is an internet connection.

If you think that only the intelligent individuals are involved Forex trading, you’re wrong because at present, average individuals can already trade in the market, provided they have adequate capital. The behavior of different currencies in the Forex market can be compared to the movements of regular stock. The economies of most countries around the globe are fluctuating. Some currencies are highly priced but there are also currencies which have very low values. The Forex market is alive twenty four hours each day and so you can do your transactions at any time of the day and night. If you have an internet connection at home, you can monitor the Forex market trends and other vital info. Don’t worry if you’re not very familiar with Forex trading because you can find loads of information on the internet. Gather all the possible information you can get about Forex trading; you must read, comprehend, and learn from the information sources because that’s one way to attain success. With the internet in your home or in the office, you can monitor all the real time market information without much difficulty.

Forex trading also have mechanics. For you to understand the trade’s mechanics, you will need some helpful tools. Before you invest in the Forex market, you have to ensure that you’ve already developed the right trading skills to prevent possible loses.

There are some Forex firms that help new traders in becoming more skilled in Forex trading by giving free demos, guidance, and helpful Forex news. You can even start investing in the Forex market with only $300. Starters often feel uncomfortable but as days and months pass, you can get the hang of it. With the aid of the internet, it’s much easier to learn about the current Forex market trends. You can also rely on a good Forex broker especially if you’re new in Forex trading. Brokers can help you in developing trading strategies or in finding efficient trading systems. Aside from that, a good broker can also help you with fundamental and technical analysis of relevant data.

You too can earn promising rewards if you’re willing to assume some risks in Forex trading. However, it is vital that you minimize such risks so as not to lose your investment. Make use of all the possible online tools so that you can make educated Forex decisions.

What are your needs? You must be able to identify your needs so that you can choose a god trading system or perhaps a reliable broker. Take your time when researching about the latest trading systems offered in the market. Don’t forget to check the background of the broker as well.

Forex trading online can be easily carried out and you can expect more profits to roll in once you properly use the tools mentioned earlier. As a trader, you need to be disciplined and you must be very careful with all your trading decisions; being hasty will not get you anywhere.



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Amin Sadak asked:


Every successful broker will tell you that knowledge is his or her key to profitable trading. A trader with Forex education has better experience in determining market movements and choosing profitable transactions. Without proper knowledge of Forex trading, you are risking everything you have in the dark. Although you may succeed in a few trades, the odds are that you are going to lose in the end. How do you avoid such losses?

The key is finding a good Forex trading course that will enable you to trade knowledgeably and avoid disastrous losses. Although tons of Forex information is available online, on books and with plenty of schools, this is not something you should thank for because separating the best Forex trading course from the rest can be an overwhelming task. Imagine searching through hundreds of web sites and buying several books just to find out you lack the knowledge to step into the Forex market.

Obviously, the the most powerful Forex trading course should teach you everything you need to know about the Forex market with easy-to-understand terms and advices. If you’re the type of person who learns easily even with self-learning, you can choose from e-books, guides and books to lead you through all the aspects of Forex trading. However, for people who are not used to self-learning, on-location courses and comprehensive online guides are the best Forex trading course for you.

For people who have extra time, they could surf the web and find plenty of Forex facts. However, the problem with online sources is that the information is usually unstructured. In choosing the best Forex trading course online, ensure that the web site presents a step-by-step guide, so you can actually walk through beginners, immediate and expert phases, learn from your mistakes and master trading techniques.

When you choose to go for study courses, expect a structured and logical syllabus. With this type of courses, you can save time and effort that you would have wasted when researching information on your own. Remember that the best Forex trading course should be available for your knowledge level, so a beginner should never be introduced to advanced Forex trading lessons.

Although you can grab a copy of an online Forex course without charge, it will only give you basic information to get you started in the market, but lacks in-depth training that you need to analyze charts and create solid trading strategies. The cost of Forex trading lessons vary greatly from free to thousands of dollars.

You can choose to attend seminars, study at your own pace, attend classes with a group of fellow beginners or sign up for a comprehensive online course, but you can never beat the benefits of having your own mentor. The best Forex trading course involves a trainer that has a reputable experience in Forex trading, who is willing to offer strategies and insights he has learned throughout all his years of conducting trades. Unfortunately, Forex experts usually charge a lot of money.

Regardless of your learning style, choosing the best Forex trading course depends largely on how much money you are willing to invest for your education, how much time and effort you are willing to give into the industry.



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Chris Murphy asked:


Foreign Currency Exchange (Forex) Trading involves determining whether a certain nation’s currency will go up or down compared to another major currency. When you trade in the Forex, you trade currency pairs: Pairs of national currencies which go up or down relative to each other.

When you trade Commodities (anything found naturally in nature or planted) you determine if the price of a certain commodity will go up or down based on whether you believe there will be a good growing season, increased mining prospects, a bad growing season, floods, drought, strikes etc. Mother Nature plays a much stronger role in trading commodities than it does in trading currency. And we all know “It’s not nice to fool Mother Nature”.

World Events:

As mentioned above, the constant change in weather patterns from year to year can play havoc on the commodities market. If it’s not the weather it could be strikes by miners, new mineral discoveries, dry holes, war or a multitude of different events, all of which can completely change the outlook for commodities. The possibility of good sized gains exists in the commodities market, but the risk of huge losses due to crop failures, etc. is also present. You have to be very careful if you play the commodities market. With currency, the Forex Market can also be affected by worldwide changes, but they typically have a less dramatic effect on your portfolio than what can occur with commodities. Overall the Forex market is the safer bet of the two.

Forex Trading Information Easy to Find:

Information about trading commodities can be fairly difficult to find, especially information which is free. There is an ample amount of information available, but a lot of it is costly to obtain. Forex information is much more accessible and most of it is free. You can also sign up for practice accounts at many Forex sites and actually try your hand at Forex trading without risking your capital. This makes for a great introduction to Forex Trading and lets you know what the possibilities are. These practice accounts in Forex Trading are typically not available in the commodities arena.

Hours of Operation:

The Forex Market is open 24 hours a day, five days a week. There is no other market open this long. If you trade the Forex, you have more opportunities and time to complete your trades and trade again than with commodities or any other market.

Liquidity – Ease of Buying and Selling:

Again, the Forex Market does the most volume as compared to all other markets. If it is going to be easy to buy and sell positions, Forex will be the easiest with all its volume.

Highly Predictable:

Commodity prices can jump all around the board depending on demand, weather, crop percentages planted, oil found or not found, etc. Forex markets are more predictable. Sure, currency prices can fluctuate and become volatile at times, but there is more of a pattern involved with Forex. There are more trends created in Forex that can be followed compared to the commodity market. This can make it easier to be consistent when trading the Forex.

Commission Free Trading and Instantaneous Order Execution:

Because the Forex Market is an open market and has no centralized trading floor, when you trade in the Forex, you don’t pay a middleman. In other words, you don’t pay a commission to trade. Money is made by institutions on the difference between the bid and ask price, but that occurs with any market. The fact that you don’t pay commissions or fees can really save you money in the long run.

Both Commodities Trading and Forex Trading can be exciting and profitable. It is up to the individual investor to decide which is best for their respective situation. With more information available for Forex Trading and with the information being free or very inexpensive, complete with free demo accounts available to practice trading, it’s hard to go wrong with Forex Trading.



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forex4beginners asked:

http://www.forexandcurrenciesexplained.com Forex demo accounts explained – where to find one, and how to use it to imporve your currency trading and avoid costly mistakes

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GamingGuide.net Team asked:


The foreign exchange market or forex for short is a trillion dollar business that encompasses the trading of any and all the world’s currencies. Individuals who trade in the forex market usually do so through a trained broker or other professional. You must be kept up to date on forex information in order to trade in the forex market. This not only includes such things as the value of a particular currency, but you must also be kept well informed of the world’s economic, political, and environmental news. For example, unlike the stock market where you may have insider trading or secrets, there is very little of this in the forex marketplace. This is because the forex is a reactive marketplace that gets its strength from real cash flows and also the flow of the Gross Domestic Product (GDP), interest rates, budgets, and trade deficits. Many of these things, especially cash flows, can be a result of a natural disaster, gas prices, and can even be seasonal such as during December when people tend to spend more because they are purchasing Christmas presents. Therefore, since the forex is so reactive, no one can truly know what will happen in the forex marketplace, no matter how seasoned they have become at forex forecasting.

Of course, keeping up with the entire world’s political, economic, and environmental news can be taxing since there are only so many hours in a day. You could attempt to keep up with this and other forex information on your own, but you would have to read a lot of newspapers and watch the news a lot. A simpler way to stay up to date on forex information is through websites that are devoted to forex information. There are a variety of forex information sites on the web, and your level of forex expertise will ultimately determine which forex information sites you visit.

When you are starting out in the forex marketplace, you should look for a site that provides forex information such as up-to-the minute headlines, as well as education tools. One of the best sites for forex information is Forex Knowledge.com (www.forexknowledge.com). Obviously, one of the draws to this site is the up-to-the-minute news and the excellent charts, but there is also a knowledge section that allows visitors to learn about the forex market, how to get started, history of the forex, and a forex introduction. Below the educational section, visitors will find information on the fundamentals of the forex market. This section contains information on the PIP, how to read prices, country currency codes, and there is even a glossary of forex terms. Visitors will also find forex trading tools that include articles on technical analysis, market awareness, and trading strategies. For the seasoned forex investor who only needs the up-to-date news, charts, and quotes, the website Forex Markets.com (www.forex-markets.com) will be useful. While the forex information found at this site will prove indispensable, the chat forum, where each day hundreds of messages are posted, will prove equally as useful. This allows users to not only obtain forex information from the website but also from colleagues. The forum is open to all users, and registration to use the service is free. Prior to participating in the chat forum, users must keep in mind that the chat forum is not a chat room and should not be treated as such.

Trading in the forex can be quite lucrative if you know and understand what you are trying to accomplish. No matter what your intentions are, forex information is vital to your success. If you are just getting started in the forex marketplace, it would be smart to take it slow and learn about the forex as well as how to interpret and apply forex information.



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