Benefits of Online Forex Trading

Since the introduction of the Internet, personal computers and various other technological advances, online forex trading has seen a big jump in its popularity. Forex trading is no longer a preserve of the wealthy few and the large financial institutions. It is now available to those with access to the Internet. It is now more profitable to trade forex online with special software, and offers more benefits than the conventional methods.
Online forex trading simply means trading and exchanging currencies with the aim of making profits. It can be done at any time of day or night, and from anywhere in the world. The global forex scene right now offers lucrative grounds for trading, and has seen many sign up to trade. As long as you have a computer, internet access and knowledge on the fundamentals of online forex trading, you are good to go.

Before you can get to the point of being able to trade successfully, there is a learning curve that one must go through. Trading online requires commitment and time to get better. It is advisable for new traders to take the time and read all the material they can get their hands on regarding currency trading. Because of this feature, many online forex traders are well versed in the fundamentals of the trade, and as such less erroneous decisions are being made.

There are many forex trade sites online that offer practice accounts that allow you to study and practice before going for the real thing. This is a good learning ground for traders to know the ups and downs of the forex market, before they choose to invest their hard earned money. In this way, you get a feel for the currency markets, and test your decision making skills early.

Online trading accounts are more flexible and reliable than using desktop software. This is because the accounts give you a way to analyze market trends as they happen. The accounts also offer training material, so you can get the latest information about the currency markets and how you can invest safely.
With online trading accounts, you don't need large sums of money to get started. You can start trading with a little as $50. This is in stark contrast with other financial trading options such as stocks and bonds, which require huge financial investments to begin trading. It is easier and cheaper to get started with online forex trading.

There is a lot of information all over regarding the currency trading process. Traders find it easier to learn to trade successfully than it was in the past. This is largely thanks to the opening up of the online forex platform to the public. Today, there are even online courses that teach traders how to increase their skills. These courses are offered by professionals and brokers who are willing to share their knowledge and experience with others. These brokers and professionals have seen it all and can offer you a wealth of knowledge concerning online forex trading.

If you are interested in online forex trading, then you would be wise to start with a practice account; one with virtual money so you can get a realistic look and feel of trading in online forex.

Wayden Enciso is an online forex trader who regularly writes articles for the Online Forex Broker blog.

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Demystifying Forex Trading

Forex Trading
What is forex trading?
The term 'forex' is coined from the terms foreign and exchange. Forex trading, also known as currency market is an international market involving almost if not all nations. It is a market that is involved with the exchange of currency between traders. The traders in this market include:
• Institutional investors
• Governments
• Importers
• Exporters
• Brokers
• Banks
• E.tc
What is involved in a forex transaction?
One party to a transaction uses a certain amount of a given currency to obtain an amount of another currency. For example an American importer wanting to import goods from the United Kingdom will use a certain amount of American dollars to obtain a given amount of sterling pounds, the currency in use in the United Kingdom. This is necessary for the importer in order to purchase the goods he wants to import because the goods are quoted in the domestic currency.
History of forex trading
Forex trading has been around for quite a long time, in fact since the 19th century. Forex trading was developed due to the need for international trade. Initially there used to exist the gold standard system which was created in 1875. In the system each country that participated or that wanted to participate in the international trade would attach a certain amount of their currency in equation to an ounce of gold. The whole aim of this monetary system was to standardize the forex trade. Later on during the World War II, the system broke down due to insufficiency of gold in the major European countries. This was replaced by the Bretton woods system. With the system the American dollar replaced gold in the reservation of currency. The system was in use until 1971 when the US government refused to exchange dollars for gold. After this breakdown a new system called the floating foreign exchange rate was developed in 1976 and it is the one that is being used until today.
Benefits of the forex market
The forex market is influenced purely by the forces of supply and demand. It is very close to a perfect market. The main aim of this market is to facilitate trade internationally between countries. Trading in the market does offer the trader the following benefits:
• Flexible hours of trade as the trading go on throughout the day.
• A trader can trade in the market from anywhere in the world and at any time so long as they have an access to the internet.
• The variables to be considered before engaging oneself in the market are few in comparison to the normal financial markets, therefore making the market very convenient for the traders.

More on trading in the forex market can be obtained at http://www.intellitraders.com/forex-trading IntelliTraders is a free Forex trading community to help traders to learn and trade Forex with best brokers.

How to Recession Proof Your Family With Forex Trading

You're probably feeling it already. With the price of gas being raised, and the costs of basic living expenses continuing to increase, many families are struggling in these tough economic times. With the dollar declining, many smart families have seen the benefits of trading currencies to take advantage of the foreign economies that are progressing. The best part, is that much of this requires very little capital investment, can be done in your spare time, and can be automated to the point where you simply set it up and collect.

Forex trading in effect in recession proof because it is not swayed by one country, government, or industry. In fact, it is truly the closest thing to a global open market, as it is traded twenty-four hours a day and nearly seven days a week.

While any sort of trading requires a bit of risk, Forex trading does not require massive amounts of capital to get started like other investments, and since trading happens so rapidly, you can quickly generate profits from your forex trading.

Forex trading can be complicated and risky if you don't understand the principles behind, however, since the forex operates in such a mechanical fashion, computer programs have been developed to analyze these trends and make the best trading decisions possible.

These programs require no technical knowledge, just the disciple to stuck to the plan and not let emotions get in the way of the trading. By trading the forex market, families have been able to create a generous passive income stream to use for college savings, as a nice future retirement fund, or simply to aid in paying the monthly bills.

It's a nice feeling to know that your family will be taken care of, regardless of the economy, and regardless of being dependent on a full-time job. Learning how to recession proof you family with forex trading is the perfect opportunity for those looking to gain some serious financial security and stability without a large investment of time or money.

Peter Aldrich highly recommends FAP Turbo, the highest selling Forex Robot on the market. Developed by expert trader Marcus B. Leary, FAP Turbo has stunning results which you can view directly from Pete's blog, Forex Insider

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Trading Forex is a Recession Proof Business

Trading forex has been described as a recession proof business. And yet other voices caution that trading forex is not a way to get rich quick and that it can lead to financial hardship.

So should you trade forex? What are the issues you need to consider here?

Trading forex (short for the foreign exchange market) is like any other skill. It takes time to master the art/science of the forex market. Yes, you might open a forex account and experience the thrill of a few profitable trades but that does not make you a competent trader. Indeed spectacular performance in any past period is no guarantee of future returns, of course.

As you learn to trade the forex you will see that it is both challenging and attractive because of its potential profits. The only time forex is not being traded is when the whole world is in a weekend.

However, before deciding to become a forex trader you should consider your investment objectives, level of experience and level of tolerance for risk. Trading forex has been likened to like watching a school of fish move -- one minute it is total harmony, the next minute complete chaos.

Until recently, trading forex has been largely the realm of major professional players with global activities - like banks, commercial organizations with global connections, and of course forex brokers.

However, there are now ways for individuals who do not have much time or much spare cash to participate in forex trading. This forex trading system has been designed for regular people who have jobs and families (which is why they don't have much time or much spare cash, of course).

As a result, the forex trade is now available as a home based business for people all around the world.

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How to Time the Market With Technical Analysis

They say that in order to make money in the stock market, you have to buy low and sell high. It seems like a simple enough edict and yet, how come so many people fail at investing and end up losing money? Perhaps the reason for this is because no one actually tells you when to buy and when to sell. We are talking about, of course, market timing.

There is great debate on whether or not you can time the market. Some say yes, and some say no. For some people who study the charts, they can see patterns and predict future stock prices. This is called technical analysis. Can technical analysis really be the crystal ball to making money? Or perhaps it is the charts themselves that influence how the market is going to go? If people think that a company's shares are selling at historical highs, the tendency is to pull money off the table until a surge in demand breaks through that resistance and establishes a new high in share price.

Some would argue that anyone can see patterns in the charts if one looks hard enough. It's sort of like looking for animals in cloud formations and anyone with imagination can make it up. Also, past history is not indicative of how the future is going to unfold although it can be a self fulfilling prophecy if investors think that way.

On the other hand, we see trends and patterns in everyday life to give us reason that the same will hold true for the stock market. Have you ever noticed that the price of gas always rises near the weekends and the holidays? And the trend in oil and gas companies is that the price traditionally goes up during the winter and again during the summer driving season. Companies such as these tend to be very cyclical.

The technical analysis of charts can be a good tool used to invest in the market. If you can pick a sector that is cyclical then you should have an advantage over others in making money from stocks.

Nicholas Began is a freelance finance writer. There are lots of systems to make money on the stock market. One way is to follow Warren Buffet's stocks and shares. For more information, visit Warren Buffett's Stock Picks.

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Using Technical Analysis

Technical analysis looks at the historical price movements of a currency. Technical analysis believes all that needs to be known about a currency can be seen by tracking its historical price, and from that historical data you can spot trends and predict future price movements.
That's very different from fundamental analysts, who look at economic data and other key changes that impact a currency's value to try to predict future price movements.

Charts used for technical analysis in Forex trading are like a road map to the historical price movement of a currency. If you took statistics when you were in college, these charts would be known as times series plots.

On the y-axis, you will find the price scale and on the x-axis, you will find the time scale. Historical prices for the currency are plotted from left to right across the x-axis, with the most recent price shown on the point furthest to the right.

You can pick the time periods you want shown on the chart. This chart was set up in one-hour price points, which means each point on the chart represents one hour of trading. Your charting software, which is included with most trading packages, can be set with many different intervals.
When you set the time periods, it compresses the data. A tick chart would be the least compressed and a monthly chart would be the most compressed. For example, you may want to see the data intraday, daily, weekly, or monthly. The less compressed the data, the more detail you will see.

When you pick an interval, the points shown on the table will represent price points during that trading interval. Intervals included on most currency charting software include tick, 1-minute, 5-minute, 10-minute, 15-minute, 20-minute, 25-minute, 30-minute, 35-minute, 40-minute, 45-minute, 50-minute, 55-minute, 1-hour, 2-hour, 4-hour, daily, weekly and monthly.

Currency traders usually concentrate on charts that show intraday data to forecast short-term price movements. Remember the shorter the time frame, the less compressed the data will be. That's when you can see the most detail.

But short-term charts can be volatile and contain a lot of noise, such as sudden price movements and wide high-low ranges, which can distort the overall picture. One-hour time periods like in the previous figure the most commonly used by Forex traders to pick up intraday trends.

Cheah has been writing articles online for quite sometimes. You can also check out his latest website over at option trading strategies and forex market trading which sharing with you the basic knowledge so you'll start exploring the world of Forex/option today.

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Options Trading and Technical Analysis

Recently, almost no options trading seminar is without some mention or introduction to technical analysis. In fact, almost all of the options trading blogs out there in the internet use technical analysis as their main basis of decision making. Why is that so? Why is options trading so closely related to technical analysis now?

In order to understand the important relationship between technical analysis and options trading, we need to first understand what technical analysis does in the first place.
There are two main methods of analysis; Fundamental Analysis and Technical Analysis.
Fundamental analysis is the reading of fundamental data of a company or economy in order to predict and invest in the future performance of the company or market. Such fundamental data includes profit and loss statements, earnings growth and earnings guidance. The problem with fundamental analysis is that great companies do not always make great stocks. Stocks of great companies also experience periods of downturn, often for extended periods of time. As such fundamental analysis helps an investor mostly in deciding what stocks to buy for the long term (5 to 10 years out), if nothing unpredictable happens to the company in the years down the road. In fact, fundamental analysis is a tool favorable by investors who buy stocks for their dividends and dividend growth.

Technical analysis (TA) is the studying of market data of a stock. Yes, while Fundamental Analysis is the study of a company, TA studies its stock exclusively. Such market data includes the price across different time periods and volume transacted. From price and volume, options traders see how the price of a stock is doing no matter what the company data is doing. This helps traders and investors avoid those extended periods of downturn even though a company's fundamental data looks great. Indeed, while fundamental analysis tells an investor which company is doing well, TA tells an investor when it is time to buy or sell its stocks. Indeed, the strength of technical analysis is in its ability to guide the buying and selling decisions of investors across short time periods through price patterns and price trends.

So, why is technical analysis such a favorite in options trading?

Lets recall that fundamental analysis is favorable for long term investing and technical analysis is favorable for use even in short time periods. Stock traders can hold stocks forever but options expire after a fixed time! Yes, options typically last no more than a year and options traders frequently use options trading strategies that require extremely short outlooks in terms of months or weeks. This is exactly why technical analysis is so closely associated with options trading. Options traders simply do not have the luxury to hold a position for years like stock traders do. On top of that, options traders do not receive dividends like stock investors do. The only way to make money in options trading is for the expected outlook to play out within the expiration period of the options. This makes the fundamental strength of the company it is based on relatively unimportant. On top of that, options traders are able to profit when stocks drop as well. This also makes identifying good companies through fundamental analysis relatively unimportant.

Indeed, reading price trends and price patterns that might show the direction a stock is moving the next week or month has more value to options trading than reading a company profit and loss statement that does not tell you where its stock may be going for the short term at all.
I hope my short article explains why technical analysis and options trading are so closely related and that it will help you better understand the big lack of fundamental analysis whenever the subject of options trading is raised.

Jason Ng is the Founder and Chief Option Strategist of Masters 'O' Equity Asset Management MastersoEquity.com and author of an Options Trading education site, Optiontradingpedia.com. He is a fund manager specializing in options trading and his revolutionary Star Trading System has helped thousands.

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