A futures contract is an agreement (contract) to buy or sell an underlying asset on an agreed future date and for a price fixed in advance. The underlying asset of a futures contract can be a commodity, foreign currency, equity, interest rate , real estate or any other asset class and the contract are traded exclusively on exchanges, with standardized contract specifications and in a regulated environment. Buying or selling futures contract is not a physical transaction. The contract allows you to buy or sell the underlying physical product at a later date in the future. The value of the futures contract can rise or fall and is bought and sold on a futures exchange.
Sunday, February 19, 2012
Wednesday, February 15, 2012
Forex: Technical analysis vs Fundamental analysis
The technical analysis is a method based on the study of charts which get attention to the price of the instruments, the volume of the trading and, when that is possible, open interest of the instruments. The fundamental analysis is a method founded on economic, political, environmental factors and any other factor.
In practice, much of actors of the forex market use the technical analysis in conjunction with the fundamental analysis to determine their strategy in forex trading.
One of the principal advantages of the technical analysis is that the experienced analysts can follow several instruments of market, whereas the fundamental analyst needs to know narrowly a market in particular.
The Indicators used on Forex Trading Charts by Technical analysts
The index of relative force (RSI):
This index is the most popular indicator of the Forex Market. The RSI measures the report/ratio of the upward trends compared to downward trends and standardizes calculation so that the index is expressed by a figure between 1 and 100. If the RSI is 70 or superior then the instrument is perceived in overbought (a situation in which the prices increased well beyond the expectations of the market). A RSI lower or equal to 30 announces an instrument in a position of oversold (a situation in which the prices fell much more than the market expected it).
Moving Average Convergence Divergence (MACD):
This indicator consists in tracing two lines of momentum. Line MACD is the difference between two moving average exponential and the line of signal which is an exponential moving average of the difference. If line MACD and the line of signal cross, this is regarded as a sign of very probable change of tendency.
The theory of numbers - Fibonacci:
Fibonacci list numbers (1,1,2,3,5,8,13,21,34.....) is built by the addition of two numbers to get a third. The proportion of any number compared to the following is 62 %, which is a popular figure of fold of Fibonacci. The reverse of 62%, which is 38%, is also used in Forex Trading like a figure of fold of Fibonacci (used with the Theory of the Waves of Elliott)
The theory of Elliott Waves:
The theory of Elliott Waves is an approach with the forex market research which bases on the repetitions of patterns waves and on the Fibonacci theorie. An ideal pattern of vagueness of Elliott comprises five followed rising waves of three declining waves.
The Gann angles:
W.D. Gann was a trader in stock and values who worked in the Fifties and which would have made more than 50 billion dollars on the market. It made fortune by using methods that he developed as tools of trade based on the relations between the movement of price and the time, known as a price/time equivalences. There is no simple explanation for the methods of Gann: it used the angles in the graphs to define the zones of supports and resistances and to predict the moments of future changes of tendencies. It used also lines on the graphs to define the zones of supports and resistances.
Gaps
The gaps are the spaces left on the histograms where no trade took place. A up-gap, or ditch of rise, is formed when the price low of a day of exchanges is higher than the highest price of the previous day. A down-gap, or ditch of fall, is formed when the price highest of a day is lower than the price low of the previous day. A up-gap is generally a sign of force of market, whereas a down-gap is a sign of weakness of market. A gap or ditch of rupture is a ditch of price which is constituted when a pattern important price is supplemented. This announces the beginning of a movement of important price. A gap or ditch of exhaust is a ditch of price which generally occurs about the middle of an important tendency of market. For this reason, it is also called a ditch of measurement. A gap or ditch of breathlessness is a ditch of price which occurs at the end of an important tendency and which announces that the tendency arrives at its end.
Friday, February 10, 2012
Which is the right Forex trading strategy?
Learning Forex trading is not a simple task, but in no way it is difficult either. Forex trading is all about regulation, will power and determination. Leveraging your strength could be extravagant by organizing the apt Forex trading strategy. You may find hundreds and thousands of Forex trading strategies out there. Logic would tell us that there is a foreign currency strategy out there which leverages our strengths. All forex trading strategies use a variety of indicators and combinations. These indicators and studies are just calculating support and resistance and trend in the Forex trading market.
Which forex trading strategy actually works?
First, we should know who we are as forex traders. Does our character fit the pip sniper mode or does our nature draw us more towards swing forex trading. Finding your trading character would simply mean studying and practicing the different time frames and related with Forex trading strategies. Over time you might also notice a higher level of achievement and/or ease trading one style over others. You need to pay attention! The forex market is uttering you where your cleverness is more competent of extract reliable profits for the market. This is why journaling is so imperative to your every day forex trading.
Secondly, if in case you are using somebody else’s forex strategy, a most of us are, organize this strategy with no change until you fully and totally recognize all aspect of the strategy through back-testing and as well with some real life experience. Don’t fall into entrap of jumping from one strategy to strategy or mixing different strategies when the one you are using does not lead to instant success. This is only a guideline for disaster.
Take the time to actually understand the forex trading strategy. Study the components independently so a deeper understanding of the strategic mechanisms would be mastered. If you recognize the components, internalize its use, and make consistent profits into your forex trading account, then you have your own Forex trading strategy. It does not really matter what the professionals say, your account balance is the final judge and judges for your Forex trading strategy
20 Golden Rules for Forex Trader
Here is the list of rules for a Forex Trader to become a successful trader.
1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming. If you are believe in Fundamental analyze then forget this rules.
2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.
3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.
4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
5. Don't buy up into a major moving average or sell down into one. See #3.
6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.
7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.
8. Trends test the point of last support/resistance. Enter here even if it hurts.
9. Trade with the TICK not against it. Don't be a hero. Go with the money flow.
10. If you have to look, it isn't there. Forget your college degree and trust your instincts.
11. Sell the second high, buy the second low. After sharp pullsbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.
13. Avoid the open. They see YOU coming sucker
14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.
15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.
17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
19. Bottoms take longer to form than tops. Greed acts more quickly than fear and causes stocks to drop from their own weight.
20. Beat the crowd in and out the door. You have to take their money before they take yours
Wednesday, February 8, 2012
Notes to the Forex Traders
As forex traders, we are constantly looking for any edge we can get in the marketplace. Using the charts is one way that traders look for predictive behavior in the price action of any currency pair. But sometimes, there are more simplistic tactics that can provide equal results.
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Case in point, today’s action on GBP/USD. This is one of the most simplistic “plays” in the market and can sometimes provide low-risk opportunities. Today’s market action is called “No news is good news”. This was one of the first tactics I learned when I made the transition to forex and it can be used over and over again.
Earlier this morning, the British pound rose some 80 pips from yesterday’s low volume session. One might think that there was some “good news” driving the Pound higher, or perhaps there was some bad news about the other currency in the pair. Since the US market hadn’t opened yet, one might naturally conclude that there was good news in the UK then.
Not only was there not good news, there was NO news at all as the UK markets are closed today. But the forex market trades 24-hours around the clock. Without the possibility of bad news, the market saw the opportunity as good news and therefore pushed the Pound higher. In other words, with the threat of negativity removed, you could have had an easier move higher!
Sometimes we see this type of action with the changing of the trading sessions. Have you ever noticed, especially lately, that the markets seem to drift higher once the European market closes? This happens because the risk coming from Europe is great right now so if we make it through a European session without negative news, the market sees it as a positive!
Of course it is still import to use support and resistance levels, and in the Pound earlier today that support level was at 1.56 providing a low-risk, high return short-term trade. So trade the path to least resistance and you may see moves similar to this one today!
Monday, February 6, 2012
The History of Money
World War I (1914-1918
The Germans borrowed money from the German Rothschilds bank, the British from the British Rothschilds bank, and the French from the French Rothschilds.
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The Rockefeller's and the head of president Willson's War Industries Board, Bernard Baruch each made some 200 million dollars while families contributed their sons to the bloody front lines, but profit was not the only motive for involvement.
However, three years after the start of the war the entire Russian Royal Family was killed and Communism began.
You might find it strange to learn that the Russian Revolution was also fuelled with British money. Capitalist businessmen financing Communism?
Sunday, February 5, 2012
The Dollar as the World’s Reserve Currency
The one advantage that the United States has over every other country is the dollar. It is the world’s reserve currency, what does that mean? Well, it means that every currency is “pegged” to the dollar. We price oil, cotton, and other commodities to the dollar. This advantage allows the the Federal Reserve the ability to continue print money, while keeping the interest rates down. This is what is happening now with the series of QE’s. We are now in the middle of QE2 or Quantitative Easing 2 where the Federal Reserve is buying U.S. bonds or buying the U.S. debt. This QE2 action devalues the dollar and monetizes the debt, something Federal Reserve Chairman Ben Bernanke said he would not do, but in reality is doing.
When a country continues to print money this causes inflation. The price of commodities rises because the value of the currency is decreasing. We are starting to see this happen in markets today. Look at the price of corn, cotton, sugar, oil, gold and silver as they are skyrocketing. As long as there is Quantitative Easing, these commodities will continue to rise. I believe we will see QE3 in the future because the government cannot stop printing money. If they stop printing the money, you will see the U.S. spiral in a “great depression” as never seen before.
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If the dollar loses it’s standing as the world’s reserve currency, it would be a disaster for the United States as this is the only reason that printing can continue without more destruction to the economy. Recently, there have been actions to decouple the dollar as the reserve currency. China and Russia decided to start trading in their own currencies, instead of the dollar when buying and selling from one another. And recently the “economic minds” met at Bretton Woods to discuss future economic plans. This summit held by billionaire philanthropist George Soros is focusing on the future of the world economic prospects, and one topic of discussion was the dollar as the world reserve currency.
Saturday, February 4, 2012
Types of Forex Trading and Strategies
The foreign exchange market, or forex, being the largest financial market in the World has been the domain of government central banks as well as for commercial and investment banks in a scandalous manner and it exists wherever one currency is traded for another. But recently more numbers of individuals are handling the forex market as it offers trading 24-hours a day, five days a week, and the daily dollar volume of currencies traded in the currency market that exceeds $1.9 trillion daily, making it the largest liquid market in the world.
"Foreign Exchange" is the place where the money of one nation is traded with the other nation. The most popular pair of exchange in the forex market is "Euro Dollar". You can view these pairs in all forex display screens as "EUR/USD". Forex trading strategies are the key to triumphant forex trading or online currency trading. The management team of One World Capital Group bid proficiency in both Forex trading and internet technologies and proven track records that deals with large, global trading and brokerage operations as well. Forex made easy is as simple as you would want it to be.
As you can be able to access it from home or office from any parts of the country, Global Forex trading is the most profitable and attractive internet income opportunity. Forex Capital Markets are nothing but foreign exchange markets where the currencies are been bought and sold continuously for profits.
These capital markets of forex are present globally. The foreign exchange market is a worldwide market and as per to some estimates is almost as big as thirty times the turnover of the US Equity markets.
Auto Forex Trading System
Another thing that is worth taking into consideration is the origin of the auto forex trading system. It is a bit of a challenge to find a system that can consistently make profits. These automated systems have become very popular. You should also choose a program that provides you with live testing results. Even though there are a lot of brilliant amateur programmers out there, it is still a better choice to go with professional-made programs.
This usually involves software that generates algorithms that are able to make trading decisions. Most trading system creators often boast of impressive results using back tests. A lot of coding often makes a program more complicated than it ought to be. Take not if it was coded by professionals or by amateur programmers.
A lot of people are able to code their own version of a trading system program, but only a few of them actually understand it. There are a lot of auto forex trading Auto forex systems you can choose from, and they all vary in price and their potential to make profits. Auto forex trading system is a software to automate your buying and selling in the currency market. In the forex market, the more you keep things simple, the more money you can make.
There are auto forex system trading programs that actually make money, unfortunately they are few and far in between. Reviewing live testing results and making sure that they are coded by professionals is a good way to start your search. But the unfortunate thing is that most back tests are done using antiquated data, which are not very useful when it comes to predicting future performance. But be careful, even if a program is expensive, that does not automatically mean that it profitable, the higher price probably just means that a lot more coding was done in its script. If you use these out-of-date programs in the current forex trading market they will likely fail to make profits.
Friday, February 3, 2012
Managed Forex Accounts
Discover the returns possible in the world's largest financial market, the off-exchange foreign currency market (Forex). Forex is where banks, corporations, and whole countries make investments. It is just over the past few years that private investors, such as yourself, have been getting more involved with these opportunities. A managed Forex account gives an investor who cannot watch the market 24 hours a day the chance to participate in the world's largest market - Forex. These accounts are an ideal consideration for those who prefer to have their capital managed by professionals. Studies of professionally managed Forex accounts have often shown performance not related to the stock market. Consequently, allocating a portion of an investment portfolio to a Forex managed account can be a great way to enhance the overall performance of your portfolio, independently of what the stock markets are doing.
We have sought the most outstanding Forex traders and teams from around the world, representing different Forex trading methods, trading styles and risk levels. For each of them we provide background information and recent performance records. If you are desiring to invest you will find details about the brokers and the process of obtaining forms. No investment is suitable for everyone. Many financial professionals recommend that you manage risk by spreading your involvement over several opportunities.
Friday, January 27, 2012
Insurance Forex
Currency or forex or FX : market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.[1] Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks, and are subject to forex scams
Market size and liquidity
The foreign exchange market is unique because of
* its trading volumes,
* the extreme liquidity of the market,
* the large number of, and variety of, traders in the market,
* its geographical dispersion,
* its long trading hours: 24 hours a day (except on weekends),
* the variety of factors that affect exchange rates.
* the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
According to the BIS, average daily turnover in traditional foreign exchange markets is estimated at $3,210 billion. Daily averages in April for different years, in billions of US dollars, are presented on the chart below:
This $3.21 trillion in global foreign exchange market "traditional" turnover was broken down as follows:
* $1,005 billion in spot transactions
* $362 billion in outright forwards
* $1,714 billion in forex swaps
* $129 billion estimated gaps in reporting
In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.
Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).
Average daily global turnover in traditional foreign exchange market transactions totaled $2.7 trillion in April 2006 according to IFSL estimates based on semi-annual London, New York, Tokyo and Singapore Foreign Exchange Committee data. Overall turnover, including non-traditional foreign exchange derivatives and products traded on exchanges, averaged around $2.9 trillion a day. This was more than ten times the size of the combined daily turnover on all the world’s equity markets. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the foreign exchange market.
Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 32.4% in April 2006. RPP
The ten most active traders account for almost 73% of trading volume, according to The Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $100,000.
These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100 / 1.2300 for transfers, or say 1.2000 / 1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e. 0.0003). Competition has greatly increased with pip spreads shrinking on the major pairs to as little as 1 to 2 pips.
Wednesday, January 25, 2012
Forex News
End of the year trade is in full effect and lower volumes than normal has not increased volatility very much as can sometimes happen. This has provided some low risk opportunities as prices have vacillated back and forth between the tight ranges.
There is not a lot of news in the global economy today, particularly from an economic data release perspective. In fact, most of the news expected for today’s US session has already been released with the exception of mortgage applications which are due out later this morning but unlikely to have a material effect on the markets.
One of the more interesting stories in the global markets is that the price of oil has been rising and is back over $100/barrel. This is due to some potential unrest coming out of Iran, who is using this opportunity to make some noise by threatening the international supply of oil. This situation is more bark than bite at the moment, but you never know how quickly these things can escalate. In any event, higher oil prices have been supportive of a stronger Canadian dollar. For those unaware, the Canadian dollar is positively correlated to the price of oil.
The economic data released today came from Japan and was basically negative across the board. Household spending, retail trade figures, and industrial production figures all came in lower than expected. CPI data also showed that deflation is going to continue, but the unemployment rate remained steady at 4.5%.
So the economic data in Japan is not good and much of the blame is going to be blamed on a stronger Yen. This has prompted Japan to seek bi-lateral deals for their currency reserves with the likes of China and India thereby effectively making funds available for trade. While this story hasn’t received a lot of press, it is important as it removes the US dollar as an intermediary and is a blow to the Dollar as the world’s reserve currency status. If more countries seek bilateral currency agreements then the use of the US dollar becomes less important. For all of the talk about currency manipulation, most of the world outside of the US believes that the US Fed is the biggest currency manipulator around the globe. It is no surprise that the US admonished Japan today for their direct currency interventions to stem Yen gains over the past year. This could be a story that plays out over the course of the 2012, so stay tuned and read between the lines of this one!
This caused Asian markets to sell off overnight and the Yen to strengthen, though year-end complacency means that the moves were very minor.
Markets reversed course however once the European session began as the debt auction in Italy went off much better than expected. 6-month bills were auctioned at rates roughly half of what they were paying just last month. This is a huge step in the right direction and means that funding costs are significantly lower. Longer-term debt will be issued tomorrow and if borrowing costs resemble what happened today, then this bodes well for risk appetite heading into the New Year. Some are saying that this has occurred because of the ECB loans given a few weeks ago that have essentially allowed the banks to set up carry trades for sovereign debt. This will increase demand and allow yields to drop which is what the indebted nations need right now.
In Switzerland, the KOF leading indicators index came in lower than expected, posting a gain of .01 vs. an expectation of .23. This cause the franc to strengthen a bit, but again, holiday trading is means these are non-factors.
In the US, mortgage applications will be due out later but will not be a factor either. Short-term traders should continue to trade the ranges, and longer-term traders should be thinking about what they would like to be in for the New Year.
The economic data is starting to look better, including retail sales figures due to the holidays so if Europe can get the debt crisis under control and if US politics can provide some sensible solutions, then 2012 could be a very god year for risk assets.
Cheap money due to US Fed policy could make its way to both stocks and commodities and while that would normally be inflationary, the inflation could be masked by lower home prices and wages due to elevated unemployment.
So there is a lot to think about for the New Year but by coming up with a plan of action, you could put yourself ahead of the game!
End of the year trade is in full effect and lower volumes than normal has not increased volatility very much as can sometimes happen. This has provided some low risk opportunities as prices have vacillated back and forth between the tight ranges.
There is not a lot of news in the global economy today, particularly from an economic data release perspective. In fact, most of the news expected for today’s US session has already been released with the exception of mortgage applications which are due out later this morning but unlikely to have a material effect on the markets.
One of the more interesting stories in the global markets is that the price of oil has been rising and is back over $100/barrel. This is due to some potential unrest coming out of Iran, who is using this opportunity to make some noise by threatening the international supply of oil. This situation is more bark than bite at the moment, but you never know how quickly these things can escalate. In any event, higher oil prices have been supportive of a stronger Canadian dollar. For those unaware, the Canadian dollar is positively correlated to the price of oil.
The economic data released today came from Japan and was basically negative across the board. Household spending, retail trade figures, and industrial production figures all came in lower than expected. CPI data also showed that deflation is going to continue, but the unemployment rate remained steady at 4.5%.
So the economic data in Japan is not good and much of the blame is going to be blamed on a stronger Yen. This has prompted Japan to seek bi-lateral deals for their currency reserves with the likes of China and India thereby effectively making funds available for trade. While this story hasn’t received a lot of press, it is important as it removes the US dollar as an intermediary and is a blow to the Dollar as the world’s reserve currency status. If more countries seek bilateral currency agreements then the use of the US dollar becomes less important. For all of the talk about currency manipulation, most of the world outside of the US believes that the US Fed is the biggest currency manipulator around the globe. It is no surprise that the US admonished Japan today for their direct currency interventions to stem Yen gains over the past year. This could be a story that plays out over the course of the 2012, so stay tuned and read between the lines of this one!
This caused Asian markets to sell off overnight and the Yen to strengthen, though year-end complacency means that the moves were very minor.
Markets reversed course however once the European session began as the debt auction in Italy went off much better than expected. 6-month bills were auctioned at rates roughly half of what they were paying just last month. This is a huge step in the right direction and means that funding costs are significantly lower. Longer-term debt will be issued tomorrow and if borrowing costs resemble what happened today, then this bodes well for risk appetite heading into the New Year. Some are saying that this has occurred because of the ECB loans given a few weeks ago that have essentially allowed the banks to set up carry trades for sovereign debt. This will increase demand and allow yields to drop which is what the indebted nations need right now.
In Switzerland, the KOF leading indicators index came in lower than expected, posting a gain of .01 vs. an expectation of .23. This cause the franc to strengthen a bit, but again, holiday trading is means these are non-factors.
In the US, mortgage applications will be due out later but will not be a factor either. Short-term traders should continue to trade the ranges, and longer-term traders should be thinking about what they would like to be in for the New Year.
The economic data is starting to look better, including retail sales figures due to the holidays so if Europe can get the debt crisis under control and if US politics can provide some sensible solutions, then 2012 could be a very god year for risk assets.
Cheap money due to US Fed policy could make its way to both stocks and commodities and while that would normally be inflationary, the inflation could be masked by lower home prices and wages due to elevated unemployment.
So there is a lot to think about for the New Year but by coming up with a plan of action, you could put yourself ahead of the game!
The Swiss Franc
The Swiss franc has strengthened vs. the Euro (among others) as the SNB elected to take a wait and see approach to their monetary policy as they made no changes. This means that the interest rate is still at 0%, and that the target vs. Euro remains at 1.20.
There were some in the market who wanted to see them raise the target to 1.30 as franc strength has been hurting exports. There were also rumors being floated that perhaps they would consider negative interest rates. Neither action materialized so the franc moved higher as a result.
At this point, the economic data is beginning to weaken in Switzerland and inflation is not a problem as in fact they are seeing deflation. This situation looks eerily similar to what has occurred in Japan, and this will be a difficult cycle to break without major risks to the economy.
With the Euro debt crisis still providing risk to the markets, there may be a test of that 1.20 level at some point, especially if the Euro situation worsens. Will the SNB have the moxie to defend the 1.20 level? Stay tuned!
Thursday, January 12, 2012
Good things about FOREX
Some good things about Forex:
1- Forex is an online home based business that doesn’t need referring, recruiting and advertising. You only deal with the currencies through the Internet. So you will not have to reply any email, make any phone call and spend any money on advertising.
2- If you learn Forex trading properly, you can make a lot of money. Forex can be your full time job that makes thousands of dollars for you every month. I have to emphasize again that if you start working on Forex before you learn it properly, it can be risky and you will lose your money. It is like driving. If you drive a car, before you learn to drive properly, you will hurt yourself and others but if you learn it properly first, it will be pleasant and funny.
3- You can make a lot of money by spending a small amount of money. Unlike other investments like stock market that you have to invest a lot of money to make a reasonable profit, you can make a good income through investing small amount of money. For example, with a $5000 account, you can make about $5000 per month. Of course it highly depends on the way that you trade and the strategy that you follow but good and experienced traders can double their money every month.
4- Forex - and of course stock market - are the only businesses that competition has positive impact on them. It is amazing, isn’t it? Competition is the biggest problem in all other businesses but in Forex, it helps the traders to make more money. Why?
Supply and demand are the factors that determine the price in any market. When there are too many buyers and sellers, price volatility will be much higher and market will be more dynamic. Price will go up and down more frequently and this is what we need to make money. When price goes up we buy and when it goes down we sell and make profit.
So if you choose Forex as your business, you will not have to be worried about competition.
What is Forex? If you are looking for a business to make money full time or part time, Forex is the best option. It can make reasonable decent income for you and on the other hand, you will not have to be worried about the problems like marketing, advertising, referring and recruiting and even you will not have to be worried about competition.
On this weblog, I am trying to help people to learn forex. I share my knowledge and experience with them. If you like to trade forex and make money and also learn to become a profitable and professional forex trader and forex market analyst. Good Luck!!!!!
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