FXstreet.com: Education: Forex Basics

Introduction: Getting Started In Forex

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:50:01 GMT

Over a trillion dollars per day is exchanged on the foreign currency market. The Forex market is used by smart traders for speculation, hedging and long-term profit taking. You can trade in the foreign currency market. It is available to anyone and everyone. Take our Forex Essentials course and follow our analysis to get started in this exciting market. Overview: Learning the Forex with us There are a couple things you need to know about this course and our educational philosophy. We believe

Part 3: The Time

fxquestions@forex-trends.com (Forex-Trends.com) — Tue, 18 Nov 2008 07:18:14 GMT

Now I would like to talk about time. Timing in the market has big impact for the trading account, but so big as choosing the right direction. But even choosing the right direction after some time market will turn around and if you miss right time to get out, all the profits will go away. Based on previous sentence looks like timing is everything. I still think it is not. By my opinion it is better wrong timing than wrong direction. So why I would like to spend all article just talking about

Important Things to know about your Currencies

editor@forexjournal.com (The Forex Journal) — Tue, 11 Nov 2008 16:47:19 GMT

This article is taken from the Forex Journal (October 2008 issue). The author, Sunil Mangwani , is a Physics graduate with a Diploma in Financial Management. He has been trading the Forex market for the last 6 years and devises simple trading strategies based on his vast knowledge and in-depth study in the field of technical analysis. Sunil Mangwani provides valuable insights into the relationships that exist between various major currency pairs and other major commodity markets. Intermarket

1. What is the forex

feedback@learningmarkets.com (LearningMarkets.com) — Mon, 24 Nov 2008 09:02:27 GMT

The Forex market is the largest financial market in the world. More than $3 trillion in foreign currencies trade back and forth every day. Forex stands for the FOReign EXchange—the financial exchange on which governments, banks, international corporations, hedge funds and individual investors exchange foreign currencies. How does the forex work? When you fly to another country, one of the first things you do when you get off the plane is look for a place you can exchange your U.S. dollars for

2. Supply and Demand

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:09:06 GMT

Supply and demand drives the forex market The Forex market, just like every other market in the world, is driven by supply and demand. In fact, understanding the concept of supply and demand is so important in the Forex market that we are going to take a step back into Economics 101 for a moment to make sure we’re all on the same page. Having a good grasp on supply and demand will make all of the difference in your Forex investing career because it will give you the ability to sift through the

3. How Trading Works - Interbank and the Forex

feedback@learningmarkets.com (LearningMarkets.com) — Thu, 20 Nov 2008 10:01:14 GMT

The forex market has many players, large and small As discussed before, like most markets, the forex essentially works because many participants are buying and selling a fairly uniform product. Currency contracts at the retail level are most often denominated in 100,000 or 10,000 units of the base currency in the pair. There are many dealers who will break a lot into units smaller than that, but a full-size 100K or mini-size 10K lot is the most common. Forex dealers can be classified as

4. Choosing a Dealer

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:11:11 GMT

This is a topic most traders are passionate about. Because the retail forex market is dominated by short- and medium-term traders, most forex dealers have a focus on quality and ease of execution to cater to that trading style. But there are still significant differences between dealers and you need to understand these in order to pick a preferred dealer. In this section, we will discuss the internal characteristics, as well as well as the external benefits you should look for in choosing a

5. Forex Pairs - Characteristics and Qualities

feedback@learningmarkets.com (LearningMarkets.com) — Thu, 20 Nov 2008 10:04:30 GMT

Classifying the forex as an investment type If you are interested in higher yields and can tolerate high risk there are bonds and small cap stocks that fit that description neatly. If you are interested in technology companies or environmentally “green” companies there are convenient ways to find equities or private investments that fit those categories. Putting forex pairs into categories in a like manner is much more difficult. Currencies reflect the performance and policies of entire

6. Earning Interest in the Forex

feedback@learningmarkets.com (LearningMarkets.com) — Thu, 20 Nov 2008 09:27:18 GMT

Forex trading accounts have interest considerations "Interest," "roll-over," "tomorrow-next," and "cost of carry" are all terms used by dealers to describe the premium paid or charged on each forex pair. Each pair has an interest payment and charge associated with holding the position long or short. On some pairs, a payment may be made if you are in a long position, and a charge is made if you are short the pair. But on other pairs, an interest payment may be made if you are short and a charge

7. Margin and Leverage

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:26:26 GMT

Understanding risk in the forex When you buy a currency, it's different than buying a stock. When you buy shares of a stock, the maximum amount you can lose is the face value of your investment. You buy 100 shares of a stock at $10 per share, and your maximum loss is capped at $1,000. When you buy a currency contract, you are speculating on the value of one currency compared to another. The risk is therefore unlimited, as theoretically, the value of a currency can fall against another

8. Short Term vs. Long Term Trading

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:27:15 GMT

Focus on consistent, long-term growth. The Forex is not a get-rich quick market. At PFX, we are known for advocating longer-term trading strategies over shor-term trading. In this section we will explain why we feel that way and help you understand some of the advantages of long-term trading over short-term trading. To be clear, while we feel that long-term trading is advantageous over short-term trading (Especially for new traders), we understand that many traders enjoy operating in the very

9. Forex Futures vs. Spot Forex Accounts

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:28:01 GMT

You can trade through a Forex Futures account or a Spot Forex Account You will see a lot of marketing materials out there explaining why the spot market is so much better and cheaper than the currency futures market, but how much of it is fact and how much is hype? What are the real differences between these two closely related markets? Is it really cheaper to trade spot forex? Aren’t there also advantages to trading futures? This is an important topic because so many of the differences are

10. Fundamental Analysis in the Forex

feedback@learningmarkets.com (LearningMarkets.com) — Thu, 20 Nov 2008 09:32:41 GMT

Analyze fundamentals and technicals We have found that traders tend to focus on one type of analysis or the other (fundamental or technical) in their trading and will often completely dismiss other types. We encourage traders to spend the time it takes to understand the underlying forces moving the market (fundamentals) as well as what is happening in price, volume and volatility (technicals.) To that end, let’s define Fundamental Analysis. We separate fundamental forces into two categories: A

11. The Calendar and Economic News

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:29:04 GMT

The news in the forex is mostly economic. Aside from central bankers, there are very few “personalities” that can move the market very much. Unlike the stock market, where each company represents a micro-economy, currency prices reflect the entire economy. Because forex news comes mostly from government and association sources, it can seem a little boring and all the acronyms are tough to keep straight. We can help with those issues and help you turn the news into a productive tool you can use

Part 2: Trading method

fxquestions@forex-trends.com (Forex-Trends.com) — Mon, 17 Nov 2008 16:01:24 GMT

From the previous article we know that market can be flat or trending. From the examples, we have got some idea how any of those markets looks like, but all those examples been shown as trend or consolidation already happened and big possibility that market is going to do something else. Question is : how to get into the trending market from the beginning or start trading in the range? In this article I am going to show how to draw support and resistance lines and trend lines and those lines

12. Introduction to Charting and Technical Analysis

feedback@learningmarkets.com (LearningMarkets.com) — Thu, 20 Nov 2008 09:54:25 GMT

Don't get overwhelmed. Stick with technicals and you'll learn This is a subject we are quite passionate about at PFX. Charting is the core of the analysis done by a technician. Reading and analyzing charts is something that you get better at with time and experience. But if it's not harnessed correctly, it can also become almost hypnotizing and lead to “ticker-itus,” a dangerous condition that borders on obsession as a trader spends more and more time staring at charts and indicators and less

13. Support and Resistance

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:30:02 GMT

You gotta love the trend Buyers and sellers are in a constant tug-o-war in the forex market. Buyers drive the prices of currency pairs higher, and sellers drive the prices of currency pairs lower. If you want to be profitable in your forex investments when buyers are in control, you need to follow the trend and be a buyer too. If you want to be profitable in your forex investments when sellers are in control, you need to follow the trend and be a seller too. Seems pretty easy, right?

14. Fibonacci Analysis

feedback@learningmarkets.com (LearningMarkets.com) — Thu, 20 Nov 2008 09:56:15 GMT

No, it's not a type of pasta Fibonacci analysis is a great way to improve your analytical skills when trying to identify support and resistance levels. Fibonacci analysis is based on the Fibonacci series of numbers. These numbers have been developed and explored by mathematicians for centuries and are named after Leonardo of Pisa (Fibonacci) who did a lot of work to popularize them in 13th century Italy. The number series starts with 0 and 0 and then is continued by summing the previous two

15. Price Patterns

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:31:14 GMT

Watch for red brake-lights Price patterns are a lot like the brake lights on the cars around you when you are driving in traffic. When you see the brake lights come on in the car in front of you, you know that the car is slowing down and that you need to slow down too unless you want to crash into it. What you don't know is whether the car is going to accelerate and continue moving in the same direction after it slows down, or if the car is going to come to a complete stop and change

Fixed Spreads Vs Variable Spreads

trading@cmsfx.com (CMS Forex) — Tue, 30 Sep 2008 14:45:04 GMT

How Spread Structure Affects Your Bottom Line as a Trader Fixed Spreads vs. Variable Spreads When looking for a prospective broker, it is important to research how they price their spreads. Over time, the spreads that a trader pays ends up costing a significant amount, and should be a key consideration when choosing a Forex broker. Forex brokers generally offer two types of trade spreads, variable or fixed. So, which is the better option? Opinions differ amongst traders and it does depend on

16. Continuation Patterns

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:31:40 GMT

Charting imitates life: Price Patterns and Road Trips Road trips are some of our favorite vacations. You jump in the car, head out on the open highway and soak in all of the scenery that you miss when you fly somewhere. Of course, every once in a while you have to interrupt your cruising to take a pit stop---to put some gas in your car and buy some snacks. Pit stops are part of the adventure. And let's face it, driving would get pretty old after a while if you didn't stop and take a break

17. Reversal Patterns

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:32:06 GMT

"I'll turn this car around!" As you learned in the Continuation Patterns lesson, road trips are some of our favorite vacations. You jump in the car, head out on the open highway and soak in all of the scenery that you miss when you fly somewhere. Unfortunately, every road trip has to come to an end at some point, and you have to turn around and drive back home. Sometimes you turn straight around and head back immediately, but sometimes you delay heading home for just a little bit as you cruise

Trading by Reading a Market (Part 1)

fxquestions@forex-trends.com (Forex-Trends.com) — Fri, 26 Sep 2008 10:01:22 GMT

Forex market is a place with endless possibilities. And not just financials. By trading currencies you are learning to understand yourself, you find your strong and weak points. Some traders claiming that if you now how to trade the market, you gain financial and personal freedom. Yes, if you are making money by trading, certainly you have a possibility to live your life as you wish, but one thing is not complete correct by saying if you know how to trade – you gain freedom. It is opposite: if

18. Technical Indicators

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:32:32 GMT

A technical indicator is applied to a chart and uses three pieces of information – time, price and volume, to give you insight into where a pair is headed. Because the forex is a distributed market, there is very little volume information. That leaves just price and time. There are a lot of ways to analyze that information and the potential variables are endless. Understanding how to wade through the swamp is vital. Technical indicators can help. Types of technical indicators Most technical

19. Portfolio management – Diversification

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:32:55 GMT

Keep those eggs out of the same basket There are two ways to look at asset allocation (the way you divide your investments) and diversification as it relates to the forex: Investing in multiple markets The first way to diversify is to make sure you are not exclusively invested in a single asset class. For example, being solely invested in the forex, or stocks, or bonds leaves you exposed to systemic risk. Systemic risk is the type of risk that you can’t get rid of. Systemic risk covers

Chapter 9: Bonus – Trading Economic Numbers (News Trading)

info@4xlounge.com (4xLounge) — Thu, 24 Jul 2008 14:50:23 GMT

Summary Adam Rosen discusses a safe and effective way to trade economic releases. His "15 minute cooling off" system is easy to use and perfect for any level of trader, expert or beginner...

Where There's ALWAYS a Bull Market...

eletter@moneyandmarkets.com (Money and Markets) — Wed, 16 Jul 2008 13:43:37 GMT

I've been studying economic cycles for more than two decades. Over that time, I've held key positions in brokerage, money management, and research firms and traded everything from equities to futures. And let me tell you, there's only one place that offers you the opportunity to multiply your wealth whether the stock market is sinking or soaring ... whether real estate is booming or busting ... whether interest rates are flying or falling ... and regardless of what happens to bonds or

Top ten tips for trading FX

info@dbfx.com (dbFX.com from Deutsche Bank) — Thu, 03 Jul 2008 10:08:33 GMT

How to make money from money 1 .Practice before you start trading with real money. Could you imagine an athlete going to the Olympic Games without preparation and training? Make sure you have practised your trading on a demo platform and get comfortable with it and your trading style before committing real money. 2 .Know what moves currency markets. Like any asset class, there are a number of factors that drive currency performance. A country’s macroeconomic situation can have a major

20. Portfolio Management - Position Sizing and Stop Losses

feedback@learningmarkets.com (LearningMarkets.com) — Thu, 20 Nov 2008 09:42:12 GMT

< Right-sized trades can be the difference between loss and gain Position sizing is the process of determining how much to invest, or risk, in any single trade. Position sizing is different for active trading, versus longer-term investing. In the case of short-term trading, it is usually a function of how much you could lose if the trade went bad. In longer-term investing strategies, position sizing is a bit more complicated and may depend on the strategy at play. In this section, we will

21. Introduction for Forex Options

feedback@learningmarkets.com (LearningMarkets.com) — Tue, 18 Nov 2008 17:33:50 GMT

Forex options are a great way to invest in the forex. This introduction will give you the basic information you need to start understanding forex options and how they can be a great tool for risk control and speculation. About trading forex options Forex options are available from certain forex dealers in over-the-counter versions, just like spot forex contracts. If you are interested in setting up a demo account with a dealer that offers forex options, click here. Forex options are also

A New Technique of Money Management - ITC Presentation

forex@fxstreet.com (FXstreet.com) — Wed, 02 Apr 2008 14:21:04 GMT

Tony Juste's presentation at the International Traders Conference (ITC) , held in Barcelona in October '07. Duration: 56'27'' Summary · What Money Management means for a trader · The ‘Effective Cost’ Technique · Case Studies

The U.S. Dollar Index

request@energysolutionsinc.com (Energy Solutions, Inc.) — Tue, 25 Mar 2008 15:50:16 GMT

The U.S. Dollar Index (USDX®) is an index of the of the United States dollar relative to a basket of foreign currencies. The USDX® is a weighted geometric mean of the dollar’s compared to the Euro (EUR), Japenese yen (JPY), Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF) relative to March 1973. The USDX® measures the dollar’s general value relative to a base of 100.00. For example, a quote of 105.50 means that the dollar’s value has risen 5.5 percent

Chapter 8: Bonus – The Market Barometer

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 16:45:01 GMT

Summary A sneak peak at one of many custom indicators created by the founders of 4xLounge. This unique indicator allows the trader to identify the true strongest and weakest individual currency among the 8-most commonly traded instruments: EUR, GBP, CHF.AUD, NZD, CAD, USD, JPY. By matching the strongest to the weakest, we may construct the “perfect currency trade”.

Chapter 7: The Art in Placing Stops

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 16:44:45 GMT

Summary A detailed discussion of the proper way to place protective stops, considering a suitable risk to reward ratio, through the use of our common Support and Resistance trend lines.

Chapter 6: Money management discussion & additional trading tips

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 16:44:19 GMT

Summary A solid education in the basic principals of money/risk management. We answer the following questions” How much should I risk in each trade? What is a risk to reward ratio? How do I measure my portfolio risk? Why is time so important? How do I write a trading plan? What kind of currency pair am I trading?

Chapter 5: Fibonacci

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 16:43:51 GMT

Summary A valuable introduction to a very powerful tool in trading. Fibonacci lines help us project possible future support and resistance levels as the market continues to develop its current trend.

Chapter 4: Bollinger Bands

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 16:43:17 GMT

Summary A favorite among many traders which use the Bollinger Bands to measure the market’s current state of volatility, and target extreme market conditions.

Chapter 3: RSI

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 09:55:20 GMT

Summary The Relative Strength Index measures the market’s current position on a scale of 0-100, helping to identify the market’s extreme over-bought and over-sold conditions, which may coincide with other technical indications.

Chapter 2: Chart reading made easy

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 16:42:00 GMT

Summary A concise discussion of trend lines, and identifying range bound and trending market conditions & common chart patterns. This simple approach helps bring even the novice trader up to speed in reading the charts.

Chapter 1: Introduction to the 4x-market

info@4xlounge.com (4xLounge) — Thu, 20 Mar 2008 16:41:22 GMT

Summary Introduction to trading the 4x-market, including discussions in trading currencies in the form of a pair. In addition we analyze the G-8 currencies and their respective trading pairs. Lastly we address the fundamental forces, which tend to move the market, including the key economic numbers we should all watch.