Friday, September 11, 2009

what is FOREX ?

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 to $2.5 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlikeother financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

For active traders and investors, foreign exchange should be no different than other investment products such as equities, commodities, bonds, notes, bills, etc.. In fact because of the globalization of the economic world and the consolidation of whole economic regions (i.e., the European Union), having currencies as part of a diversified portfolio simply makes sound portfolio sense.

Just like these other investment alternatives, foreign exchange offers traders/investors a market (it is an over-the counter market) where they can buy and/or sell an investment product. In this case it is a specific Currency Pair. The currency pair may be the Euro versus the US Dollar, the US Dollar versus the Japanese Yen, the British Pound versus the US Dollar , the Euro versus British Pound, or a number of other currency combinations.

The different currency combinations represent nothing more than the value of one currency versus the value of another. That relationship is represented by a single price. In foreign exchange, the price of a currency pair is the markets expectations (at that time) of the value of that currency vis-à-vis another currency given the current and expected economic and political situation of the two countries. In equity terms, it is the price of the stock.

If, for example, a country's inflation/interest rates are low and stable. If it's economy is strong. If it's politics are stable and expectations are for more of the same, then one can expect (in general) for that country's currency to remain strong versus a less fundamentally favorable currency.

Contrasting that with an equity, if the domestic and global economy is strong. If inflation is not running away. If competition is not taking away market share or eating into margins. If product demand and growth are strong. If the companies internal "politics" are such that the workers are happy and productive, and expectations are for more of the same, then you can expect that companies stock to remain strong versus a company with less favorable fundamentals.

Like equities there are other factors that determine the short term value of a product including technical analysis, short term supply and demand, seasonal capital flow patterns, the current price of the instrument, etc. It is these universal dynamics that will move a currency up or down. By analyzing the pricing dynamics and combining that with sound money management discipline like stop loss orders, the investor can insure greater success in his foreign exchange trading.

Forex Trading Seminar
If you are planning on a journey of financial independence, then attending a forex trading seminar will be a good kick start. In these slightly darkened economic times, traditional commodities trading like stocks, company bonds, blue chips and futures have lost their currency as good investment prospects for those wanting to make their fortunes of the economic market place. The scale of neo-liberal literature demands that these commodities now enter a higher risk category, because the health of such commodities depends not only on the health of the overall economy, but the health of specific bordered market behaviour as well as the corporations and processes in which they are tied in.

Thursday, September 10, 2009

master forex skill and practice

Do you want to become a successful Forex trader? This site will help you get started with Forex trading from a scratch. Here you will find a lot of information about Forex market for beginners. Read interesting articles about FOREX to help you on your way to become a FOREX trader.

Forex trading must always be considered high risk, but with good Forex risk management it is possible to generate some excellent returns on your investment. It is an ideal alternative investment that has little correlation with the global stock markets. We have a lot of information on the website for you to understand how it works.

This Forex guide is here to help you learn, trade and invest in the Forex market. It is designed to be a one-stop shop for Forex trading, and to provide a wide range of tools, information from expert and resources for all levels of traders and investors. It aims to bring you the best available services in the Forex market.

Caution ! Until You have master forex completely...

You could lose $50,000 or more in the next few weeks - Find out what your brokers/mentors don't want you to know...

A SHOCKING 95% of new Forex traders lose their initial investment in the first few months...

You owe it to yourself to find out what the other 5% are doing differently...
Here's what it's all about: A recent survey estimated that up to 95% of Forex traders continuously lose money trading, most of them blow out their initial trading accounts within months of live trading; on the average a trader might replenish his account at least 3 times before realizing this astonishing truth.

To be more specific, based on the same survey, here are the breakdown:

1% of Forex traders make to the Millionaire rank.
4% make a good living trading,
5% are breaking even month after month, with few months of good run and few months of bad run... Still searching for that holy grail of trading.
36% have quit Forex and decided never to trade anything anymore,
54% are losing their trading accounts (their hard earned money), even as you read this page...
Most people get into this business with high hopes of making money, and majority of them will have their hopes and dreams crushed with utter frustration within months of starting to trade with real money...

That's why you need all of the help you can get to become a successful trader... It's like learning how to drive, no amount of books or tests, or even simulations will help you drive. You need to be behind the wheel and get practical driving hours... on hand experience is important!!!

That's why so many people fail! Not enough practical learning. Don't you wonder why so many people make money on their demo accounts, but when it comes to real live trading, they lose it all?

learn ... learn .. practice ... more practice ... focus. learn from proven succesful forex trader, practician in the real world. This post only a motivational and suggestion for you to take a further steps in the exciting, lucrative forex world.

What You Need To Know Before You Start
think one of the most important things you should know about online Forex trading is that it is gaining immense popularity as we speak. Take a peek at on the World Wide Web and you will notice endless streams of popups and advertisements by brokerage companies enticing you to join the Forex revolution. Firstly, it does not tell me that I should be believing all they say - but it does tell me that the there is a demand behind such spin and you might be tempted to try your hand at it yourself.

There a few things you should know about online Forex trading before you start, and this article is a sort of a beginner’s guide you need to get you started on the right track. First and foremost, read about Forex and what it entails. Firstly, be prepared to be exposed with numbers, figures, datas, graphs that goes up and down on your monitor and many more numbers. It also requires that you have a knack for things like market watching and you do need some diligence.

After all it is still a form of investing and your money is involved. So it is not going to be terribly easy just because a brokerage firm tells you so. Yes, people are making plenty of money from it but that is because there are many ways you can make money from Forex. You should be familiar with terms like pip, spot trading, day trading, different Forex markets, currency-pairing, swap trading etc.
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