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Friday 26 August 2011

You Trade Forex

YouTradeFX is one of the fastest growing Forex companies as of this year.  They are constantly optimizing and updating its trading platforms and inventing ways to make the trading world a more user-friendly one.  Additionally, YouTradeFX has extended its website and trading platform so traders today can more easily invest in CFD’s on stock, commodities, indices and the foreign exchange market.

YouTradeFX History and Background
YouTradeFX got its start in 2009 and has already achieved initial revenues over $1.5 million from over 2000 global customers. YouTradeFX addresses a growing client base of private and professional traders, 24 hours a day, six days a week, providing specialized trading services in over ten languages.

With optimal trading conditions, updated offerings, innovative technology and high quality support, YouTradeFX addresses the introducing brokers’ business needs while allowing for considerable extra income with their flexible revenue plan and withdrawal policy.

Advantages of Trading with YouTradeFX

YouTradeFX has developed automated trading tools (expert advisors, custom indicators and scripts) that require minimal intervention and allow traders to automate their trading strategy, improve discipline, remove emotions, and capture opportunities.  Traders can choose from over 20 predefined trading strategies to create custom portfolios and automatically execute trades according to their specifications.

Their website features premium video tutorials to help traders get started or optimize their trading strategies.  The tutorials range from basic techniques, technical analysis, fundamental analysis, to the types of risk and money management needed to become a successful trader.  Traders account and apply the lessons they chose to the real-time market.

Trading Platform
YouTradeFX uses Meta Trader 4 and now, Meta Trader 5

Deposits and Withdrawals
Deposits are made with major credit cards, debit cards, paper checks, money bookers and wire transfers. All requested withdrawals are processed the same working day and transferred to the trader’s account within three business days.

Customer Care
YouTradeFX values their customer service.  24/6 support in ten languages is available at your request via email, phone, and live chat.

Security
YouTradeFX is regulated by the Federal Security Commission.

Conclusion
YouTradeFX provides all levels of traders with the best tools to invest in a controlled and measured manner.  “Your gain. Our goal” reflects their commitment to offer both customers and business partners a wide array of trading instruments and one on one support for their traders to make sound decisions and lead them to a real profit.

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Minmetals Offer of $6.5 billion for the Equinox

An offer of approximately 6.5 billion dollars in cash deposited by Minmetals Resources for the acquisition of Equinox Minerals, in an attempt to gain control of the largest copper mine in Africa.
The offer includes premium of 23% on the closing price of the stock of Equinox on the Toronto Stock Exchange on April 1st. The company’s shares rose today in Sydney by 28%.
The title of Minmetals, part of the state unit of China Minmetals Group, was strengthened in Hong Kong by 0.5%, thus making its market value of the company at 19.6 billion Hong Kong dollars (2.5 billion U.S dollars).
As mentioned in the announcement, the board of Equinox will meet in order to consider the offer. Consultants of Minmetals are the Deutsche Bank and Macquarie Capital Advisors

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Is the commodities rally came to an end?

A rally was fueled by today as expectations for global recovery, with “background” the frantic pace of development, and the resulting surge in demand, in emerging economies such as China or India, and the weak dollar result and mainly quantitative easing measures in the U.S..
The new “dip” in commodity markets, oil, gasoline, and prices of agricultural products, precious and industrial metals, sparks new debate about whether the many months rally reached or is nearing to completion
Furthermore, the duration and intensity of growth was such that attraction was a large volume of speculative capital, drawing on many commodity markets unskilled investors. As a result, fluctuations in prices began to reflect less and less to fundamentals …
In time, the cheap money from the U.S. channeled the majority of the equity markets of emerging economies in search of high returns, but also in markets of goods, as noted recently by the chief investment officer of Merrill Lynch, Bill O ‘Neil, «reflect now fairly dynamic emerging economies. ”
The surge in prices, especially as regards agricultural products and a host of other commodities such as coal, iron ore and its derivatives were in the meantime “ally” … the phenomenon La Nina, and adverse weather conditions seriously affected the level of supply in many countries (guide floods in Australia), creating pressures on global supply-demand balance.

Recent moves by the CME which rose sharply in transaction costs in silver futures had two immediate effects: first “kicked” by buying the metal net short-term speculative capital but caused a degree “collateral damage” to other goods has forced investment funds internationally at a comprehensive reassessment and review their strategies against the goods.
In this reassessment and review now entering new variables, such as overheating emerging economies and the efforts of central banks to control interest rates through increases in inflationary pressures.

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Warns Great Britain of Bank Downgrade

A warning for degration the evaluation of the five largest UK banks sent to an analysis the Moodys, because of concerns about what might happen if the government stop its support to them. The Royal Bank of Scotland and Lloyds TSB, which are controlled by majority share from the British government are among the 14 financial institutions, whose assessments might be lowered by Moodys.
However, the CNBC news agency notes that despite recent problems, both banks are still receive an Aa3 assessment from Moodys, which is one of the highest ratings. Moodys began to examine the financial institutions who are directly supported by the government, such as RBS and Lloyds, or had accepted a change in long-term evaluations of the credit crisis. The 14 banks that are affected are Bank of Ireland, Co-Operative Bank, Coventry Building Society, Norwich & Peterboough Building Society, Nottingham Building Society, Principality Building Society, Santander, Skipton Building Society, West Bromwich Building Society and Yorkshire Building Society. As many indicate, if Moody’s eventually proceed to the downgrade the EURGBP and GBPUSD rates will significantly affected.

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103,000 fewer jobs in the banking sector

The five biggest British banks, including the Royal Bank of Scotland and Lloyds Banking Group, from 2008 until today have cut more than 103,000 jobs and is expected to proceed and to more cuts. It highlights the agency Bloomberg, the figure corresponds to 11% of the total workforce are the UK banks worldwide. At least 34,500 of those who lost their jobs, working in Britain. However, the departments of the banks will not be affected much.
Banking analyst at PricewaterhouseCoopers in London, Andrew Gray, points out that banks have plans to aggressively reduce costs, “which suggests that further cuts.” He adds that in many cases, the cost savings will be made in global operations and will expand in the international cost base. The British banks cut jobs and sell assets shrinking their balance sheets by 1.5 trillion pounds from the 2008 crisis, as banks reduce their leverage and are subject to stricter rules in regard to their capital from the beginning. Companies in the financial industry worldwide, plans to cut more than 16,000 positions in the first half of 2011, according to the Confederation of British Industry. The biggest cuts were executives of RBS and Lloyds, which have received state support.

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Greece the “Greens” of Germany


The German Greens seek restructuring involving private creditors in order to address the debt crisis in Greece. “This is required to restore debt sustainability in Greece,” said the spokesman of the Greens Gkerchart Sic on German radio Deutschlandfunk. “The debt burden is so large that there is no prospect, if not reduce this level of debt through a restructuring,” he said. The “green” politician criticized the German government, why did not advance the goal of restructuring. At the same time praised the efforts of the Greek government to clean up the budget. No other European country has not progressed as improvements in such a short time, said k.Sik and proposes the establishment of a European bank rescue fund, which will support those banks will face problems due to the restructuring of the Greek debt, “so not to cause further turmoil in financial markets.

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New growth in import prices in May (USA)

Unexpected increase for the eighth consecutive month in May showed that import prices in the U.S.. In particular, according to data from the Ministry of Employment, import prices increased by 0.2% on a monthly basis, after 2.1% growth in April. Noted that a poll of Dow Jones Newswires, economists have developed estimates for monthly fall of 0.7%. Trade currencies and other products such as Metals, Indices and Futures with the best of the online forex world – the MT4. Furthermore, on an annual basis, import prices increased by 12.5% ​​the biggest annual rise since September 2008. The petroleum import prices fell by 0.4% while overall the last twelve months have increased 44.6%. Excluding oil import prices rose 0.4%.

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Losses in the Southern European Countries Stock Exchanges

With nervous movements and loss of more than 1% European markets react to the new slow Europeans to reach a definitive solution to the Greek crisis.Serious losses in Madrid and Milan, and restored the problem in Paris, Lisbon, Brussels and Amsterdam. The Eurozone finance ministers have indicated that reduced their differences over the participation of private creditors to the financing of Greece in the coming years, but the final plan should … wait until early July.
After the meeting in Luxembourg on Sunday, officials left unresolved important details, most important how to involve private creditors without lead Greece into “bankruptcy.”In their announcement, pledged to prevent any form of bankruptcy, which many fear could cause chaos in the financial system of the eurozone. “The markets just do not want the uncertainty is therefore estimated that the traders will continue to avoid risks, thereby leading stocks and the euro to fall,” says Cameron Peacock of IG Markets. Involve to the high volatility  market and trade currencies online now with leverage up 1:500.
Earlier, it was known that the Paris, Lisbon, Brussels and Amsterdam did not start normal trading due to technical problem, as announced by the company NYSE Euronext. On the dashboard, the estimator of the state of the stock markets of member countries of the Eurozone, the Euro Stoxx 50 lost 1.51% record. In London the FTSE 100 falling 1.05% record.The German DAX declining at a rate of 1.19%, while in Paris the CAC-40 moved to -1.38%. Losses of 1.99% notes IBEX in Spain, a 2.45% decline in the Italian MIB, while the Swiss SMI moves downward by 0.95%.In Portugal, the index PSI records falling 1.55%. Negative signs have indices in Russia, the RTS to -1.23% and -0.65% in Micex.In Turkey, the ISE index falls at a rate of 1.97%.

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Stabilizing Moves Spreads of The European Countries

Small fluctuations are making Friday the spreads of bonds of the European region. In particular, upward moves in today’s trading the spread of the decade and a mild decline recorded by the rest of the region. Further, the premium demanded by investors for holding ten-year Greek bonds over German bund formed at 1,333 bps this time by 1.16 bps higher than the close Thursday. Instead, a small decline in record Friday the spreads Ireland, Portugal, Spain and Italy customizable to 763 bps, 783 bps, 233 bps and 181 bp, respectively. The Greek five-year CDS are at 2,100 bps this time. In the  market the EUR & USD is trading above 1.4500 heading towards 1.4700 while the EURJPY is trading at 117.50 and the USDJPY at 80.72.

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Returns over $80 the crude on Globe

The upward trend of maintained in Asian session as it remained in line with the broad rebound in stock markets in Asia. The Commodity Exchange of New York The contract of crude, September delivery traded above $ 81 a barrel with gains above 2% in electronic transactions. Brent crude type rises 2.2% to $ 104.86 a barrel. recalled that yesterday the price of NYMEX closed at lowest level since September and below $ 80, the climate challenge for the global economic outlook posed the depressing stock markets around the world. Analysts estimate that the current upturn in the price of crude comes from regular short covering. The goal of $ 85 a barrel on the NYMEX is “on paper”.

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We are ready to intervene in foreign exchange markets(Japan)



Japan would take decisive action against any speculation in the market, said Monday the Minister of Finance of Japan Yoshihiko Noda, signaling the readiness of Tokyo to intervene to curb any new rise of the yen, after record high last week. The Japanese finance minister said the recently observed sharp strengthening of the currency and that will hold close discussions with the G7 countries around the foreign exchange market, while continuously monitoring the progress of the yen. “We will monitor more closely the markets to see if there is a speculative move. We do not exclude any measure and will take decisive action if necessary”.

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Wednesday 24 August 2011

Download Fee Frex Strategy Builder Software


click to download forex strategy builder Software >>> Download Now

Forex Strategy Builder incorporates the best practices for developping technical strategies and the most reliable methods for backtesting. Its purpose is to facilitate you in gaining profit on the forex market.

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Paypal Forex Brokers

A list of Forex brokers that support PayPal payment system as an option for funds deposit/withdrawal. Pay Pal is a convenient on-line payment system that is widely accepted in U.S., Canada and United Kingdom. Forex brokers that accept PayPal deposits often are good-standing companies, which you can trust.

for more information visit >>> click here

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Meta Trader Forex Brokers


A list of Forex brokers that support MetaTrader 4 Forex trading software as a primary Forex trading platform. MetaTrader 4 offers Forex traders a very flexible trading environment including Forex trading automation with MT4 expert advisors. Almost all presented MT4 brokers offer easy account opening procedure and accept on-line payment methods. Some of these MT4 Forex brokers are already offering MetaTrader 5 platform for demo accounts.

For more information visit :>>> Click here

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Argentina Oil And Gas Set To Take Off ..!!!


The great shale and unconventional resource revolution that has swept through the United States over the last few years is about to a leap overseas to Argentina, as energy companies move to accelerate exploration and development here

Shale Gas Potential
Argentina has 774 Tcf of technically recoverable shale gas reserves according to the Energy Information Administration and Advanced Resources International. This gives Argentina the third-largest amount of reserves, behind China and the United States. The Neuquén Basin holds more than 50% of these resources, and Argentina also has an undetermined amount of tight gas and shale oil resources as well.
Argentina Oil and Gas Players
Halliburton
(NYSE:) recently drilled and completed a well for Apache Corp (NYSE:) in the Neuquén basin in Argentina. The well targeted the Los Molles shale formation and was drilled to a depth of approximately 14,500 feet and completed with a 10-stage hydraulic fracturing operation. Halliburton touted the well as the first multi-stage horizontal well drilled into a shale formation in Argentina.
Apache Corp is increasing exploration and development in Argentina and operated six rigs and drilled seven wells here during the second quarter of 2011. The company has four exploration wells in various stage of drilling.
YPF SA (NYSE:) reported a number of discoveries over the last year in Argentina, and found both natural gas and oil. In December 2010, the company reported 4.5 Tcf of natural gas in tight gas formations in the Neuquén basin.  This was followed up in May 2011 by the discovery of 150 million (BOE) of shale oil in the same basin.
The latest well reported by YPF SA in the region was producing an average of 250 barrels of oil per day from the Vaca Muerta shale. YPF SA is majority owned by Repsol (Nasdaq).
EOG Resources (NYSE:) is also active in Argentina and added 100,000 net acres to the company's position in the Neuquén basin during the second quarter of 2011. The company is targeting the Vaca Muerta shale, which EOG Resources believes is mostly oil bearing. The company plans two exploratory wells in 2012. EOG Resources discussed the Vaca Muerta oil shale during the company's second quarter of 2011 conference call and said that the play "looked superior to the Eagle Ford Shale."

The oil services industry will also benefit from more business in Argentina, if and when full scale development programs start up. Helmerich and Payne (NYSE:) has four rigs operating here and another five rigs stacked in Argentina.

Another company involved with the exploration of unconventional resources in Argentina is Exxon Mobil (NYSE:), which has 240,000 net acres in the Neuquén basin. The company plans to start drilling in the final quarter of 2011.
Gran Tierra Energy (NYSE:) is focused exclusively in South America, and has interests in 12 properties in Argentina. The company estimates that production from its Argentina properties will average between 2,000 and 3,000 BOE per day in 2011.
One company not interested in Argentina is Occidental Petroleum (NYSE:). The company sold its Argentinean oil and gas assets in early 2011 for $2.5 billion to China Petrochemical Corporation (NYSE:).
The Bottom Line
The development of shale and other unconventional resources in Argentina is needed to meet growing demand for energy from the emerging economies of the world. The expertise and experience of the energy industry in developing similar assets over the last decade in North America makes it likely that this international effort will be successful as well.Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!


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Tuesday 23 August 2011

Forex Trading Leading Indicators

In my personal opinion trading with leading indicators is in many cases the difference between success and failure in the business of forex trading (or any market you trade for that purpose). I do not have an accurate statistic of this but I do know that many if not most traders use lagging indicators in their forex trading system(s) or method (s). Now, don't get me wrong. Some are successful by doing this but I know more that are not.

A simple example of a lagging indicator is any type of moving average. Integrating a moving average in a forex trading system or method simply shows the trader the average price of a market at any point in time. There are various ways to calculate a moving average (simple, exponential, of the open price, of the closing price etc). But the concept remains the same: the average price of the market you are trading during the last X bars. The problem with this is that you know how the market has been behaving until now but nothing is being revealed to you as to future market behavior. Markets, no matter what type, have mainly two modes; either they trend or they are in range. The moving average will most likely tell you that a trend has already started (in most cases making it to late to join) or that the market has ranged (in most cases making it to late to use range trading strategies).

An example of a leading indicator is a Fibonacci reaction level. A fib level will most likely tell you what the market might be doing in the future in terms of support and resistance. It helps you prepare your trading plan with advanced knowledge of what will happen rather than what has happened. Knowing likely levels were the market might stop after a reaction is powerful information. For example, this allows the forex trader to know if the trend has ended or maybe pin point a good entry level within a reaction with the objective of joining a trend. No matter how fib levels are used, the idea is the same – knowing in advance how the market will behave in the future.

In conclusion, as traders we have to always keep an open mind and experiment when testing a forex trading system or strategy. I believe that there is not one single secret formula that makes a person a successful trader. What brings success in this game is having an advantage over the competition. And trust me, even a small advantage is all it takes to be light years ahead of over 90% of traders!

I wish you all the best in your forex trading endeavors..!!!
For more information visit : click here

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Can I succeed trading in the Forex market?

You need to decide whether you can make decisions with your own mind, when there are no bosses who tell you what to do. In the forex market, you are acting on your own responsibility. Many people here earn hundreds of thousands of dollars a day, but no one here gets money for nothing. To earn money you need to think and not just "sit back". If your salary is less than $5000 per month, in our opinion you should ask yourself whether all your work is worth the effort.
We just want to say that you can earn money on Forex. We started doing it... but nothing bad happened in the world as a result. We earn very large sums of money, too. Remember, Forex is the world of freedom. It's the world of money that you can access. Just answer a question: For what reason do you forbid yourself to earn money on exchange rates' fluctuations?
How do I start trading in the Forex market?
You can open a cent account in Profiforex and start trading. Here everything is absolutely real, but you will risk with 100 times smaller sums than in the classic market trading.
The main thing is that trading Forex on the classic and the cent accounts (micro-accounts) has no differences. Same quotes, same execution, same rules, same psychology (as opposed to demo-accounts).
According to studies, to become a skilled trader you must learn to trade with small amounts first and only after that you can start trading with big lots.
We provide the most convenient trading conditions in the Forex market. And we guarantee that your trading on cent accounts won't be different from trading with thousands of dollars.
Furthermore: if you prove your skills, we will provide you with an investor and a deposit starting from $ 2000 to $ 100000. The demand for people who can think has always been great, and we are ready to pay for their work generously.

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Forex Trading Without Tears


Here are some simple statistics concerning Forex Traders:
- A whopping 73 percent of them spend their time jumping from one Forex trading robot to another. As for the strategies they use, they are always in search of the 'Holy Grail' that will make them fortunes overnight (we all know that it doesn't exist). And, when all else fails, they place trades using their hunch. End result? They lose their trading account!
- A smaller group of people - 16 percent of Forex traders, somehow manage to breakeven. However, when it comes to the strategies they use, they are not confident enough to follow it down to the "T". They would break a rule here and there, so the end result is that their progress is not consistent.
- An even smaller group of 7 percent place long term trades. They are much more profitable than the other 16 percent. While this may sound good, you need to realize that these are the traders who watch the news all of the time. They don't sleep well as one economic report / policy, change in the government, etc. could easily turn their profits into ashes.
- Last but not the least, we have the cream of the crop - 4 percent of traders make consistent profits... day in and day out. Nah, they are not immune from losses, but they are few and far in between. What sets these Forex traders from others is that they follow their plans and strategies strictly. Unlike the traders above, these guys sleep well, they can take vacations, and they live a happy life!
Forex Trading doesn't have to be a tearful and painful business. However, it does involve plenty of time and effort especially when you are just starting out. If you belong to the first 3 groups of traders mentioned above, perhaps the following tips will set you rolling in the right direction:
Know Thyself: Forex trading isn't just about knowing your market or currency pair; the average daily movement; or the things to watch out for in a country's government or economy. True, they are important, but just as important is understanding you, the trader. You should define your needs. You should make sure that your risk tolerance along with the allocation of your capital is not excessive or lacking.
Plan Your Work, Work Your Plan: This is more of an extension of the previous tip. Once you know thyself and goals, it's time to get to the planning board. Define for yourself the timeframe you want to spend and the plan for your trading career. Define what success is for you. What are your goals? What can be considered as failure? How much time and money should you spend on trial and error, which is inevitable? What are your income goals? And those are just to name a few. Oh! One last reminder: Stick to your plan down to the "T". There's no point in planning if you are not going to follow it anyway. And believe me you won't like the results of a plan-less trading.
for more information visit : click here

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Monday 22 August 2011

Forex Training Lesson 2 - Trade a Breakout Like a Pro (B)

 
In your Forex training programme you should be taught to know when trading breakouts, we are looking for an increase in volume to avoid false breakouts. This means that when the price is breaking above the £10 level (resistance) or below the £5 level (support), the more people pushing prices higher or below that consolidation area the better as this gives Forex traders more conviction to stay with their trades. Also bear in mind that breakouts can and do lead to an increase in volatility and possibly the beginning of trends or reversal of the previous trend.
The reason why breakouts are so popular and profitable is down to the rationale and psychology about the mood in the market, and also the fact that it can be used on any time frame from weekly to a 1 minute time frame.
As was alluded to earlier, it's crucial to identify support and resistance levels. Also, these levels become even more significant the more times price has tested them So, in our case if buyers have attempted to push price above £10 five times in the past, successful Forex traders will consider that a stronger breakout that if buyers tested the £10 level only twice. You should also learn in your Forex training that the best breakouts are those which occur on longer time frames such as daily or 4 hourly timeframes rather than the 1 minute or 5 minute breakouts, as the chances of getting whipsawed, or false breakouts are much higher.
The rules for establishing an entry order for either a long or short position are the same. Whenever prices break above resistance or below support by however many pips, points or cents you choose to assign, you enter the trade. It is also important to be aware of false breakouts, which is where price breaks out of the consolidation zone but then reverses and comes back into the zone without carrying on further in the direction of the initial breakout. Successful Forex traders will look for added confirmation to avoid false breakouts; confirmation could be an increase in volume or waiting for price to close well above the breakout zone.
In terms of where to exit the trade, there several ways to plan your exit target. Firstly, you may decide to use the range of the consolidation zone to set your target. So in our case price ranged between £5 and £10, hence when going long, initial profit target will be at £15. Another idea may be to look to the left of your chart for near resistance/support areas or swing highs or swing lows. How you approach this will depend on the education you have received on your Forex trading course.
Every consistently profitable trader will tell you that losing is part of trading and as successful Forex traders we know when we are wrong we must exit our trade; hence the use of a stop-loss order. Using the breakout strategy, a stop-loss can be set above or below recent swing highs/lows or just above support (when going short) or below resistance (when going long), the idea based on the notion that old support becomes new resistance and old resistance becomes new support. Given that price tends to re-test the area it has broken out of, rather than placing the stop-loss order right on the resistance or support line, it is important to give your trade room to breathe and allow the trade 'work out' and avoid getting stopped out early.
For more information visit: http://EzineArticles.com/?expert=Dragan_Lukic

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The Most Accurate Way to Trade Forex Today ...!


Have you ever thought about trying out Trading Forex? If you have, then there's two ways it can go. Number 1: is that you trade properly and make good money.
 Number 2: you don't get educated and lose everything. You need to know what way the trend is going, how long it's going to go in that direction for and a host of other things. If you don't take into consideration all of these factors, then you're not going to last long in this field. You need to make accurate choices if you are to succeed in the forex market.I have traded the forex market and have lost bundles and bundles of money, and it's not even funny when I actually think about it. It's painful to admit but,

I have lost around 11,000 dollars on the forex market, due to making some really terrible mistakes. I just didn't have a very good way to trade and even tried scalping, which was okay in the short term. Any money I did make was through sheer luck and when I look back on it, I always say to myself "You were such an idiot"
I hate to see other traders make the same mistakes I've made, but I can't say anything to them because if I get involved then I'll get blamed, because I gave them bad advice. Since I was not trading in a proper manner it wouldn't be a very good idea to give such advice.
For me, the proper way to do it is to learn how to trade properly. This means using a trading plan and sticking to it. A trader should also know when to cut their loss, not letting their EMOTIONS trade for them and just being a real solid level headed trader. Forex involves technical analysis, being able to read charts, trend lines that you need to know and learn before starting to trade in the market. All of these are essential for being able to trade accurately.
As we all know; it's better to "teach someone to fish and feed them for life" rather than "Give someone a fish and feed them for a day". And that's exactly what will happen to you when you learn how to trade the market, instead of blindly guessing which way it's going. You educate yourself when to buy and sell for each currency pair, no matter which way the market is heading. You teach yourself where to put your stop loss, so that your account will not get wiped out if the direction of the market changes. This is a golden rule for almost every trader.
Hello, my name is Hector and I've been trading forex for some time. I have found that it's essential to be educated in trading, if you want to become successful in the forex market today.
Was the above information useful to you?
 click here for more information: http://hectortrading.blogspot.com/.

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How Does Forex Works?

 


Currencies are always traded in pairs - the US dollar against the Japanese Yen, for example, or the English pound against the Euro. Every transaction involves selling one currency and buying another, so if an investor believes the Euro will gain against the dollar, he will sell $$$$ and buy Euros.
The potential for profit exists because there is always movement between currencies. Even small changes can possibly result in substantial profits because of the large amount of money involved in each transaction. At the same time, it can be a relatively safe market for the individual investor. There are safeguards built in to protect both the broker and the investor. A number of software tools exist to minimize loss.


for more information please vsit this site about working of  forex trading >>

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Brief Introduction About Forex Trading

              


The Foreign Exchange Market - more popularly known as FOREX - is a vast world wide market for buying and selling currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily exchanges are worth approximately $1.5 trillion (US dollars). By comparison, the United States Treasury Bond market averages $300 billion a day and American stock markets exchange about $100 billion a day.
The Foreign Exchange Market was established in 1971 when fixed currency exchanges were abolished. Currencies became valued at 'floating' rates determined by supply and demand. The FOREX grew steadily throughout the 1970's, but with the technological advances of the 80's FOREX grew from trading levels of $70 billion a day to the current level of $1.5 trillion.
The FOREX is comprised of about 5000 trading institutions such as international banks, central government banks (such as the US Federal Reserve), and commercial companies and brokers for all types of foreign currency exchange. There is no central business location of FOREX. Major trading centers are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and Frankfurt, and all trading is by telephone or over the Internet. Businesses make use of the market to buy and sell products in other countries, but most of the activity on the FOREX is from currency traders who use it to generate profits from small movements in the market.
 At one time, there was a minimum transaction size and traders were required to meet strict financial requirements. With the advent of Internet trading, regulations have been changed to allow large interbank units to be broken down into smaller lots. Each lot is worth about $100,000 and is accessible to the individual investor through 'leverage' - loans extended for trading. Typically, lots can be controlled with a leverage of 100:1 meaning that US$1,000 will allow you to control a $100,000 currency exchange.

There are several advantages associated with FOREX trading.

  • Liquidity
  • Accessibility
  • Open Market .
  • No commission
For more information  please visit :
http://hectortrading.blogspot.com

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