Month: January 2011

By Kelly Price

In this article, we will look at swing trading, this method of trading is easy to understand and can be learned quickly. If you want to make big profits in around 30 minutes a day then currency swing trading can help you do just that – Let’s take a look at it in more detail.

On any chart of a currency, you will see price spikes where the price accelerates away from the trend and then, they ALL quickly fade. This is human emotion at work, traders push prices to far to quickly when emotion takes hold and then prices quickly fall back to more realistic value.

The aim of the swing trader is to sell into these price spikes and make a quick profit as the currency comes back to fair value.

Price spikes always occur and they always fall back and the aim of the swing trader is – to sell the spike and make a quick profit. Now we will look at a simple currency swing trading strategy you can use right now and if you use it correctly, it can make you triple digit gains.

1. Look on your price charts for a quick acceleration in price which creates a sharp move to the upside.

2. When you have spotted a move, you need to look and see how overbought it is and to do this you need some momentum indicators. These are indicators which will tell you visually if the currency is overbought and how overbought it is. You learn to use these indicators in a day and good ones to take a look at are – The RSI, stochastic and MACD.

3. When the currency is overbought simply wait for momentum to turn down and sell the currency. When a price spike occurs, prices will rise and so will momentum – but when momentum turns down and prices continue going up, you have a signal that the spike is about to exhaust itself.

4. The key to using this strategy is not just to look for overbought currencies but currencies that are at extremes in terms of the last few months trading on the daily chart. The concept is the bigger the rise and the more overbought the currency is the bigger the fall.

5. Put your stop in above where you have sold and look to buy just above the next level of support. Note – You buy just above the level and don’t wait for a test because you could get a rebound back up, so get out before the test of support and bank your profit.

A Simple Strategy which Works and Always Will

The above strategy is extremely simple but all the best strategies and systems are. If you swing trade extremes, you will get a few good signals a week and this will be enough, to make you huge gains in around 30 minutes a day. If you want a great way to make big profits, there is no better method than currency swing trading.

About the Author

NEW! 2 X FREE Forex Trading PDFS

And A RISK FREE Forex Trading Course

For free 2 x trading Pdf’s, with 50 of pages of essential Forex Information and the Best PROVEN Forex Trading Methods visit our website for the best in: Forex Trading Education.

By James Roshwood

A forex demo account is offered by most brokers these days, especially those who want to attract beginners. But are they really such a great deal? or do they have some hidden disadvantages that the brokers are not telling you about? Let’s take a look.

Firstly, it is important to recognize that different platforms may work in different ways in demonstration mode. Most platforms will allow some form of testing so that you can understand how they work. But when we talk about a forex demo account, we mean a system where you have a balance of virtual8945180246 funds which will increase and decrease as you trade. This allows you to test systems as well as simply getting to know the platform.

So why do brokers offer this type of virtual trading account, and should we be suspicious? Of course, they want you to be able to try out their platform. They hope that you will find it easy to use and perhaps choose their service over others for that reason. They may also hope that if you make money in your demo account, you will be more likely to invest real money with them. All of this makes natural commercial sense.

There are two things to watch out for when you sign up for a currency trading demo account. The first is whether the demo account does actually work in the same way as the real trading platform. In a few cases, it does not. Traders who are comfortable with a broker’s demo system invest money into an account only to have a big surprise, the real platform is not the same and requires a whole new learning curve. It might even be so different that a system worked out in demo mode cannot be put into practice on the live platform. So do check that out before even beginning with a demo account.

Secondly, be aware that there are some big psychological differences between trading in demo and trading for real. Beginners will happily jump into demo trading, often using high leverage and opening trades almost at random, to see if ‘it works’. Long term, this type of trading is destined to fail, but in the short term, some of those traders will profit. They could easily think that forex trading is just a matter of leaping in whenever you think prices might be about to move, without worrying too much about analysis, indicators, plans or systems. Clearly, if they switch to real trading with that mindset, they are heading for a fall.

The other problem can come up even if traders use their demo account responsibly and applying a good system with sound money management. They may not be prepared for the stress of real money trading and find that when they try to apply their system to the live market with real money, they panic and find themselves making irrational decisions.

If this happens to you, it is important not to beat yourself up. Live trading does have stresses that trading in demo mode cannot prepare you for. The answer is to start small when you move to the real market. Reduce your risk to half of what you were using in demo, or even less.

Forex demo accounts are here to stay and used wisely can be a very useful tool for the new forex trader.

About the Author

Get Free Forex eBook! James Roshwood writes about Forex and welcomes visitors to his excellent Forex Blog http://www.greatforexworld.com by giving them a great free gift. Read more tips regarding forex trading and visit http://www.greatforexworld.com and remember to get your free gift!

By Jerome Vincent

So you would like to study about the forex market and trading internationally, but you’re gambling your own money if you jump in before knowing completely about how trading happens. In the World Wide Web, you will discover several games and computer simulations while memorising the formulas needed in forex market. The currency trading market include nations from around the world, where all nations involved are using other currencies, and once confronted against each other are worth more or less than the first valued currencies that are being traded. The forex market is employed to make money for governments, banks, and brokers, and for many countries.

You will need to locate the forex trading software system and education- learning system you prefer to use to get started in learning about forex trading. When you detect the games, as they are named, you will insert data about yourself, about what you are interested in studying and then you will download the computer software to your data processor. In following the ‘game’, you will learn the way to create and generate losses in the forex market. This sort of game is going to allow you to be to a greater extent informed of what presents itself daily, how the markets open and close, and how distinct the several nations currencies actually are.

You will open an online ‘account’ applying the gaming system. You will so be capable to interpret the news, discover and compare market places, and will also be willing to do ‘fake’ trades and you also can see your money build or be eroded in losses. As you learn the system, practicing it a couple of times a week, you are becoming to be more trained, more educated, and you will be ready to apply the forex trades to make money. Naturally, you may still necessitate the assistance of a broker or a company in order to make your purchases take place, but you will substantially start to see the technique, what will happen, and what calls you may prefer to make as you read about the news, the markets, and the foreign currencies in other countries.

The currency trading market is also mentioned to as the FX market. If you are concerned in joining the millions who are making profits in the forex markets, you want to ascertain you are dealing with a respected banker or company connected with forex investments. With the spur of interest in the forex markets, there are several types of companies that are popping out on the Internet seeming to be genuine forex trading companies but actually, they’re not. Forex trading can be completed by a broker, a company that handles in the monetary funds, and from within your own area. For example, the United States has numerous regulations and laws involving forex trading and what companies are allowed to work with the public dealing with foreign trading and markets.

Lots of people had tested but more and more failed. What does it take to be capable in investing forex trading nowadays? It’s emphatically more than luck. Secrets to beginner’s success are disclosed in this forex robot trading website with trading demonstration and forex practice account.

About the Author

Wilson Trat is a professional forex broker for over 6 years. To make an informed decision take your time to read all the information provided about some of the best forex robots at http://www.bestforex-reviews.com.

By Benjamin Stockman

There are several benefits of simulated forex trading. It allows you the time and opportunity to get yourself prepared for real trading. You will need the practice because forex is complicated. It helps you develop foolproof strategies.

Forex demo has features that provide real time monitoring functions. On the other hand forex simulators helps you to upload, view and review historical market data any time. It tests your ability to identify trading patterns and signals. This allows you to assess your knowledge on forex and determine the things you have to change or improve to keep pace forex market developments.

Forex simulators are crucial to traders because they can be focused on certain trading period you want to assess. This way you can detect patterns in past currency movements, learn from them and refine your trading strategies.

Forex simulators are like PC games. You are tasked with completing a mission and constantly repeating the games leads to perfection. The same is applicable to forex simulators. It needs lots of practice, reinforcement and repetition. This process helps you understand the forex trading better.

A month practicing in simulated trading prepares you better for engaging in real trading. Simulators are excellent tools to consider if you really want to make sure you have good chance of earning from your investments.

You must always remember that there are thousands of other traders who aspire to earn from forex trading. You can’t possibly attain success in forex trading without understanding the basics of the market. Simulators helps you acquire the knowledge you need to make decent money out of your investments.

Aside from helping you refine forex strategies, there is another thing very important that simulators help you with and this is the in identifying the best currency pairs to trade. They help you understand the relationships between currencies, giving your choice of currency pairs solid basis and ensures your trades always have a better than good chance of winning.

About the Author

Benjamin Stockton is a dedicated father to three children and forex tracker. To learn more about Simulated Forex Trading and the latest and most effective forex strategies, tools and mindset that will allow you to make lots of money from trading forex please visit http://learnforexstrategies.org now

By M Richter

Thousands of potential forex traders and investors try out forex demo accounts to determine if forex trading is truly for them. A demo account allows a person to go online and see exactly how a real trading account would work. It’s somehow similar to the war games played by generals in the Pentagon. Any investor can pretend to have money in an account and buy and sell the same way it would be done in reality, without investing or risking any real money. These demo accounts use very realistic software that displays transactions reports showing losses or gains as if the transactions had been real.

The system works in a very simple way. An investor pretends he has a margin account with ten thousand dollars in it. He looks closely at the currency markets and forecasts that the dollar will go up in value against the japanese yen. Using the demo account he buys at a ten to one margin, so he buys (in the program) one hundred thousand dollars of dollars and sells one hundred thousand dollars of yen. There will be a spread, or difference, which amounts to the pretended profit.

Why would someone want to use a demo account? The main reason is because it is always much safer to learn how to do this sort of thing without having actual money at risk. The same principle applies when kids in driver’s education classes sit in demonstrator modules that resemble real autos. They are able to practice driving without taking risk. They are able to maintain their safety while they build their skills, knowledge and confidence. Pilots follow this same idea when using flight simulators. No one would ever think of flying an airplane unless sufficient time had been spent in a flight simulator first. The same holds true for forex trading. Spending some time with a demo account allows the potential trader to gain skills and learn the ins and outs of the market place. A person is then able to see if they truly have the instincts necessary for the market and have sufficient knowledge to play the real game.

Most trading platforms/brokerage companies involved in forex trading offer such demo accounts, sometimes free and sometimes for a small fee. Even if a fee is paid, it is usually worth it because a forex trader can parlay his skills and knowledge into vast profits after spending some time practicing with the forex demo account. Generally checking with a broker can get a demo account set up quickly. A trader interested in setting up a forex demo account can also go online and find a vast array of companies ready, willing and able to help the student trader set up an account and enhance his skills. No matter what game you are playing, and forex trading can be seen as an advanced financial game, by using a demo account you are able to learn enough to go foreword and become an active trader.

A few trading platforms/brokerage companies state that demo accounts have little educational value. According to them, because there are no financial consequences, a trader will indulge in emotional decisions and overlook one of the most important lessons in forex trading: reason must rule over emotion.

Many of these companies, instead of demo accounts, offer other effective forms of training, like guided tours, forecasts and charts, seminars. They also offer the possibility to start trading with very small volumes while learning in real time. One-on-one online training is available, covering the basics of the foreign exchange market, trading terminology, advanced technical analysis and successful trading strategies.

About the Author

Learn more about Forex Trading and Forex Trading systems by visiting http://trend-forex-system.blogspot.com/

By Ben McArthur

Here are some Forex trading tips you should consider before investing in Forex trading. Chances are you won’t get rich overnight but it may help to save your nest egg. The top traders know that controlling risk is just as important as knowing how to trade for big gains, if not more important.

Investing large amounts of money into something you haven’t researched is like trying to hit a target with a blindfold on, you might get lucky but it’s more likely you are going to hurt someone. Investing like this means the person you hurt will be yourself.

Set a limit as to how much you are willing to invest. You should only enter any market with the amount of money that you are willing to accept as a loss without too much damage to your overall trading capital. Find your personal comfort level and stick to it.

Listen to your instincts. A smart investor follows a plan, and that plan is in place way before the first trade is ever made. It can be hard to follow your instincts when the emotions of a live trade unfold. If you try to keep your mind-set the same as when you developed your strategy you’ll be more successful.

If a trade takes off, stay in control, don’t pull out too soon or wait for the bottom to drop out. Stay with your trading strategy, you should have a projected stop-loss in place. Just let it happen. If you see weaknesses in your strategy adjust between trades, not during them.

Never invest everything in one trade, no matter how confident you are. A seasoned trader will always diversify. Diversification is your safety net for huge losses. Without diversifying you could be out of the game before you had a chance to play.

Shop around for a broker. Not all brokers have the same spread (fee charged by brokers). Treat this like a business by keeping your costs low in order for you to better maximize your profits.

Always test a new strategy. You can find or hear about Forex trading strategies anywhere but, what may work for one person won’t always work for you. Test any new trading strategy with paper trades or in your demo account before taking it live. You may need to make adjustments to your new strategy; you won’t know that until you try it.

Following these 7 steps should help you to avoid a very costly learning curve. The Forex trading market will always be there when you are ready so, take your time, put together a plan and work the plan until you are confident you can make steady, consistent winning trades and then go for it.

Get more forex tips
the author’s website.

About the Author

Learn more about Forex and forex trading secrets at the author’s website.

By Danielle Franklin

There are so many forex brokers out there and most of them have free forex demo accounts which you can easily download and use for about 30 days. Many believe that demo accounts are useless because they don’t give you a right idea about real forex trading. I would disagree with that point of view, though. First of all, forex demo accounts are important for the newcomers. With demo account a freshman trader can come up with his own forex trading strategy, practice his skills and continue to self-educate. It might be true that demo accounts give you a false sense of security. But then it is your responsibility to understand that a pretend trade is nothing compared to the emotional adrenalin you get when you forex trade for real money from your own paycheck.

Not only newbie can profit from forex demo account. Both newbie and a professional forex trader can learn how to actually use the trading platform of the selected broker via demo accounts. It is never a good idea to start trading for real money without knowing which button to press to get the charts, where to see the currency rates, how to track your account history, how to execute, make or close the trade. The last thing you want to do is to go over a long list of Questions-Answers or franticly wait for online support to help you with a simple trading task. Forex market is fast – it requires a fast reaction from your part. If you don’t know how to operate your trading platform, you are simply screwed. So, yeah, I am very pro demo account. Practice everything you can possibly think of with your forex demo account before you even consider a real live account.

Another beautiful thing about demo account is that you can make mistakes and watch what happens!! You can analyze your actions, set ups and carts without freaking out about money being lost. I would even suggest making mistakes with demo accounts and taking losses! It will teach you about risk management strategies which are crucial in forex trading.

The bottom line is that forex demo accounts are free of charge and it didn’t hurt anyone to open one yet!!

Here is a huge list of forex demo accounts (can last you more than 1 year!) – http://www.forexexplore.com/free-forex-demo.html

About the Author

ForexExplore.com – Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog.

ForexVote.comTop forex brokers reviews, latest bonuses and promotions, free forex tutorial and more.

By Edward Lomax

There must be some reason some Forex traders using the exact same system make more successful trades than others, I mean, if two traders are using the same system, they should expect the same results, right? But the truth is, there are other factors besides the trading system than determine success in Forex trading.

If you’ve even been involved in sports, then you know this to be true. You might be coached the same fundamentals of the game and use the exact same equipment… but there is always some players that are just better than others. But here is the good news, you can practice to become a better trader by using Forex testing software.

Learning to trade Forex takes time. But that time is extended if you try to learn on a DEMO account. And no, I’m not recommending jumping straight to a live trading account. I’m suggesting practicing with Forex simulation software, which allows you to test and practice your trading system faster.

What Is Forex Testing Software?

Forex testing software looks just like the popular Metatrader4 trading platform. You download REAL historical data into the software for any number of years, and then you can test your system manually. This is like backtesting an Expert Advisor, but your are testing everything manually.

Here Is An Example Of Using Forex Testing Software

Recently, I took a popular Forex trading system and put it to the test using a testing software program. I downloaded real, historical data. I set up the charts like instructed. And then I went about trading the system for an entire YEAR in about 3 hours.

The system used a 1 hour chart. If I was testing this on a DEMO account I would have had to watched the charts every hour on the hour to look for trade set ups. But all I had to do was click a button and move to the next candle hour by hour. I would wait for the charts to show me the trade set up, and then I would place the trade just like I would during live trading. Then click, click, click ahead to see how the trade developed.

There are three great advantages to testing the system in this way. First, I could tell how the Forex trading system would have performed over an entire year (in this case 2008). Second, I got a lot of practice… doing over 130 trades in 3 hours (instead of a year). Third, by trading at such a fast pace I was able to get a feel for the system and identify was to potentially make the system better.

So, if you’re tired of seeing other traders get better results trading the same system, I suggest practicing with Forex trading software. Not only will the software help you sharpen your trading skills in record time compared to DEMO trading, but it could help you identify more profitable ways of trading as well. Imagine what being a more skilled trader with a better system will do to your profits!

About the Author

I share the results of the test I did with the Forex testing software and show how I improved the trading system from 83% profits to 789% profits for the same year, go to: Http://www.forexavengercasestudy.com. For a limited time you can get the free report, “Forex Avenger Profit Booster”, which contains every profit boosting technique at: http://www.forexavengercasestudy.com

By Cedric Welsch

The latest talk by Chinese officials seems to be driving up the Euro versus other key currencies. This movement of currencies seems to be an indicator of the rising importance of the role that China has come to play in the global economy. China’s ambassador to the European Union Song Zhe’s statement that a strengthening Euro will bring stability to the global currency system along with the nation’s commitment to bailout Euro zone economies seems to have had a magical impact on the currency.

The Chinese ambassador’s words were backed by the Chinese vice Premier’s commitment to invest four to five billion Euros in the Portuguese government debt in the first quarter of next year. China does not seem to be doing this out of charity. The EU is one of China’s largest trading partner, and in propping the European economy China is only ensuring that its business interest stay protected. China has a war chest of 2.65 trillion dollars in foreign exchange reserves, part of which it intends to use to bail out the Portuguese economy. China said that it was willing to use its 2.7 trillion dollar overseas investment fund to bailout the debt ridden nations in the Euro zone. China’s statements immediately propped the Euro versus key currencies like the Yen and the US dollar. China’s statement came after a downgrade of Portugal’s sovereign rating by Fitch, by a notch from A+ to A–.

This also seems to be a calculated move on China’s part as it probably plans to reduce its exposure to the US dollar and diversify its investments in other currencies as the position of the US economy stands weakened and the dollar could face an uncertain future. With China having a massive exposure to the US dollar in terms of investments in US government paper, any weakening of the dollar could lead to substantial erosion in China’s national savings. Thus, while China would not like to talk the US dollar down in any major way as its savings would diminish if the dollar were to depreciate suddenly, China seems to be using its economic influence to create alternatives to the US dollar so that it can diversify its portfolio gradually. In fact the downgrade of Portugal’s economy could possibly have triggered a fall in the Euro, and China is averse to the idea due to its investments in the Euro zone sovereign paper. Thus, China seems to be doing a tight rope walk. It appears that China cannot afford any major fall in the Euro or the dollar at this point of time and thus seems to have offered to bolster the Euro zone such that the Euro does not take any sudden dip.

While, the Chinese economy is set to overtake the US economy to become the largest in the world in the next few years, China does not appear to be ready to take on the role of leading the global economy and be in a position to replace the US economy from this role. China may have taken the conscious decision to propose help for the European economy in order to step into the global economic leadership role.

In any case these developments suggest that the global economy continues to be fragile and could use help from the Chinese economy, which seems set to take a centre stage in global economic affairs.

About the Author

Currency news trading materials are extremely important for traders. Plus add a little bit of forex broker review feedings to your mind as a trader.

By John J Callingham

A Forex demo account is essentially a practice account allowing investors to use “paper credits” in place of real money when making their trades on the foreign exchange market. In recent years, demo accounts have gained immense popularity following the increased interest towards Forex trading as a form of financial investment. To understand the rise of this phenomenon, it is necessary to examine the importance of trading on a Forex demo account.

To start things off a little, it is important to understand that the business of Forex trading is in essence a form of financial investment. Treating the Forex market as a casino would ultimately result in horrifying consequences as losses in Forex trading can be massive.

Thus, it is important for the would-be investor to first acquire a firm grounding in financial literacy. This would entail having a firm grasp of the various types of investment concepts such as technical analysis and fundamental analysis. Yet, theory without practice is often useless, which is where the importance of trading on a demo account kicks in place.

A Forex demo account would allow novice investors to familiarize themselves with an online trading platform. Direct entry into actual trade can be pretty much daunting given the plethora of tools on modern day online Forex trading platforms. Worse still, wrong decisions may be made resulting in potential losses.

In comparison, a Forex demo account would allow the novice investor to learn the basic functions of an online trading account such as placing the buy/sell order, the stop loss order and the profit limit function. Knowledge of when to use these features of an online Forex trading platform is invaluable in guiding you to the path of success in Forex trading.

Moreover, a demo account would allow investors to put theory into practice. What this means here is that the investor would be able to apply knowledge acquired through Forex investment books in practical fashion without the fear of making actual losses. This is extremely important to novice investors as it would allow them to learn the ropes to Forex trading, allowing them to critically evaluate their various trading strategies before they make their first real trades with money.

While many have criticized the lack of realism with the use of paper credits, a demo account is by far the best way for novice investors to learn the ropes of Forex trading before they dive into the actual market.

Forex demo accounts also provide the seasoned investor with a useful platform to put untried trading strategies into practice. Wish to make a modification to your current trading strategies but unsure of its effects? Try things out on your demo account before you proceed into the actual market. You would be able to evaluate the results of your decisions from a safe distance, sans the possibilities of making any actual losses. Many veteran investors today make use of Forex demo accounts as a means to refine their trading strategies for even greater investing success in the future.

In short, it is important to trade on a Forex demo account. Whether you are a novice investor or a battle-hardened veteran, there is much to be gained in terms of practical knowledge and investing experience.

About the Author

Click Here to get FREE access to the secret Forex Trading newsletter where you can learn about Forex Currency Trading. John Callingham is an authority on Forex Trading providing valuable advice at http://www.forexsimpletrading.com.