Forex

Strange that term may pass through sometimes Vtaatsael what is it??
This article may answer your questions!!

I can simply tell you that the word Forex is an abbreviation for the term expression of foreign Foreign Exchange, which means short of speculation in the foreign exchange market or the global stock of currencies!!

Let me show you the beginning of what the stock market?
آ آ  We are daily buying and selling many different items that are displayed in shops, markets and venues such as food, clothes, cars, household appliances … And others.

آ آ  And typically find that each commodity market its own specificity, where he will meet with those interested in the product for them is the buying and selling at the rate determined by the forces of supply and demand.

آ آ  The stocks, bonds and currencies is one of those goods are exchanged between individuals, institutions and countries on a daily basis in huge quantities.

آ آ  Called the markets in which they are trading (buying and selling) this type of commodity bourses. And stock markets are all countries in the world and all its specialization and exchange, and the management of those States stock exchanges and the organization of work.

Currency Exchange!!
آ آ  Like any other stock exchanges where the sale and purchase of a country’s currency against the payment of another currency ..
آ آ  Example is the purchase of U.S. dollar to pay the single European currency (euro), or the opposite, ie, buying euros to pay the U.S. dollar an interview.

آ آ  Or buy the U.S. dollar to pay the Japanese yen, or vice versa.
آ آ  Or buy the U.S. dollar to pay the pound sterling, or vice versa.
آ آ  Or buy the U.S. dollar to pay for interview with the Swiss franc, or vice versa.
آ آ  Or purchase of any currency and pay for other currency as a price to it.

آ آ  Thus, it is displayed in the form of currency pairs to be sold one of those couples for the purchase of the other spouse, or vice versa

آ آ  The minor differences that arise between the exchange rates change as a result of the forces of supply and demand during the time can be used to make a profit from this market.

آ آ  Imagine that you’ve bought one euro now paid interview (1.2700), and after a short period change the euro to become (1.2800) so I did sell it again in this amount.

آ آ  Can now calculate your earnings (1.2800 – 1.2700 = 0.0010) clearly you won a penny of that process simple.

آ آ  But what if you’ve purchased (10000) euros, can not win in that transaction (100) dollars at once.

If I need large sums of money to take advantage of this market?
آ آ  Not .. You do not need large amounts to achieve huge profits in this market. In fact, you will not rely on money allocated for investment only!! As this market provides a unique system you can trade large amounts of money for the payment of small sums only.

This is called the system marginal!
آ آ  This enables you to trade the system in amounts of up to 200 times the amount that you are exploiting this bentonite and more. And keep the profits for yourself full.

آ آ  As well as the losses!! However, in all cases, your losses will not exceed the small amount that you start exploiting this bentonite. The sense that you will not be able to continue to lose if your capital losses exceeded the initial, and will not be required to pay any additional amounts above the amount that you initially exploiting this bentonite.

آ آ  The volume of transactions in the Forex market in steady growth. This development is significant in world trade and lifting the ban on currencies in many countries. The (80%) of all transactions is a speculation in the currency market aimed at obtaining profits from price differences. This speculation and attract many participants, both financial organizations or individual investors.

But how is the buying and selling these?
آ آ  The forex market is not a market in the literal sense of the word, since it has no center, no place has a certain exercise a trade. The trading exercised by contacting the telephone and Internet computer at one time among hundreds of banks around the world. Hundreds of millions of currency bought and sold every few seconds.

آ آ  Companies are specialized and licensed to receive buy and sell orders from investors for being implemented by them.

Called these companies Brokerage Firms (Brokerage firms) and in any case, it does not you can implement your orders directly without dealing with one of those companies.

آ It is in general the following sequence

آ· You choose a brokerage firm fit your goals and the individual realize that the contracted

آ· You open an account with that company and are registered your personal information, shall be the amount you wish to invest your account.

آ· Follow up the movement of prices through one of the specialized programs on your computer and give you buy and sell orders for brokerage firm through the trading platform.

آ· Company will be the implementation of your orders and any profits or losses will be added to or withdrawn from your account.

آ· You can of course withdraw your money from the company or add them at any time you like.

Communication between you and the brokerage company is through a special program called a workstation (Platform), and log in to this program through a user name and password is provided to you when you open an account in the company.
آ آ آ 
آ آ  This program enables you to follow the prices and give buy and sell orders and full control of your account. Of course, all these operations will be at your computer’s connection to the Internet.

آ آ  You will find that the process of communication and interaction between you and the company is located in the other half of the globe is very small and you’ll find that most companies offer strong support to help investors and bring them to the nearest distance limit and if a company is located in a room next to you.

آ آ  The way things work in general, but you should know that prior to trading real money you must have sufficient expertise to manage your account properly because it is simply that you can lose all your investments were not easily if you have sufficient experience.

How do I change my experiences and my knowledge of this market?
آ آ  That one question … Will go to any direction of the price??

آ آ  He has made a lot of scientists, professors, developers, a major effort and spent a long time in the study to give us research and numerous studies dealing with financial markets. In order to answer this question.

آ آ  The prediction correct direction of prices depends on the deep study of the market.

آ آ  We usually find three forms of market analysis: analysis of news, and technical analysis, the analysis myself. And be judicious mix, and the correct analysis of these three is the guarantee for the correct prediction in the forex market.

آ آ  News analysis includes the study of economic and political factors that may affect the currency market. For example, reports the Central Reserve Bank of policies the U.S. economy and basic transactions, and statements important and other important events.

آ آ  The objective of the analysis is the basic analysis of key factors and their impact on the dynamics of prices in the forex market. The shops in the forex market always be familiar with the current situation in the world.

آ آ  Technical analysis is an analysis of the market situation changes based on the previous price. Used in this analysis graphs that reflect price changes for a certain period. Technical Analysis and we also understand the general market situation at the present time, several indicators can predict price changes in the near future.

آ آ  Technical analysis is based on the fact that the movement of prices to take into account all the factors that could affect the market – economic, political, psychological and other factors – are already taken into account when setting prices. And if the market truly market Vsttkon movement as a result of a huge number of participants taken after their analysis of the enormous amount of information when they contract deals. The behavior of prices is the result of these decisions, and you have to monitor each input information in this market.

آ آ  What is needed is the fact that shops know the direction of movement of prices. And technical analysis, gives a tremendous amount of tools enable us to draw useful forecasts of graphs of prices.

آ آ  Psychoanalysis is to analyze the behavior of traders in the market and their psychological and expectations, hopes and fears.

آ آ  This type of analysis is very important because the rate of health is very high. We must not forget that behind the computer stations that give human beings and the expectations of prices depends on their actions in the end rates of exchange.
آ آ  You may find that it is initially interesting, fantastic, and perhaps find hard and tired and in fact, is interesting, fantastic, and hard and tired together. The realization of huge profits is not easy, easy, but in any case is not difficult or complicated.

آ آ  You can start from now to learn and gain experience and remember that you did not start it will not end ….

Success in Forex trading largely depends on number of skills. Learning to identify the trend is one of the most important in my opinion. Once you learn quickly and effortlessly identify the trend your job becomes simple. All you have to do is to make trades according to your trading system but with current price trend.

The beauty of the trend identifying skill is that anyone can learn it very quickly. Since it is easy to point the direction of the price movement the identifying the trend is also quite simple. Any time frame will work. However the trend is most clearly seen on higher time frames.

Traders use different approaches to identify the trend. I personally use most simple ones. For example on 15 minute chart I apply an EMA with averaging period of 96. That covers 24 hours. An EMA pointing upwards shows me that the trend is up. An EMA pointing downwards show that trend is down.

However you can encounter a flat market from time to time. That is when price is bouncing up and down horizontally between two levels. In this case the upper level is resistance and the lower one is support.

A good part of the such horizontal movement of price is that sooner or later it will break out the support or resistance. If it breaks the support it will create a downtrend. If it breaks the resistance price will go in up trend. Either way it is a good opportunity to take a trade.

Those traders who like taking the scalping trades use such sideways price movements. The idea behind such trades is to enter at the support or resistance level and exit with a small profit when price reaches the opposite level. Then do the opposite trade when price reverses.

Before you decide which strategy to use in trading currency it is absolutely necessary to test your system. First you need to test it on a historical data. Then you need to test it on a demo account in real time. However don’t try to find a system that will give you 100% of winning results it’s a sure way to fail in Forex. All you need to do is to become familiar with your system and know that it’s a profitable one in a long run.

As I described you before identifying the trend is not a hard task. Anyone can learn it and make money trading currencies. On the other hand the hardest part is to be objective while identifying the trend or any other parameters of the price. It seem not that easy when it comes to real hard earned money.

When it comes to trading our real money we either hesitate and lose the good trading opportunity or we jump anxiously int a trade when set up was not formed yet. That’s why you need to develop self control and be objective in estimating the market conditions.

For new forex traders, learning forex trading is like building a new car from scratch without an instruction manual. Many of you acquire quality parts like brakes, wheels, motors, seats, steering wheels etc.

To become a successful trader you need right parts with right instructions to put them together. After all, a part such as a $2.00 gasket can bring your car to a screeching halt.

Currency trading is very different from trading stocks. Companies can file for bankruptcies like Enron or go completely out of business taking their share value to zero. But in case of currencies there is no threat of a country going bankrupt.

Trade balances and budget deficits play a role in determining the price of a currency. What can happen is that trade balances and foreign capital inflows can cause severe economic pressures on a currency! This can create dramatic changes between the currency values relative to other currencies. When that happens, it can be an incredible financial opportunity for savvy, educated currency traders.

Learning how to spot a trend that can last from a few hours, several days or several months can create an enormous financial return for the skilled and educated trader. You need to learn how to find the current trend before you enter the markets.

Learn to always trade in the direction of the market. Fighting a trend is like swimming against the current and getting drowned. Traders make many mistakes and the biggest one is trading in the wrong direction.

Suppose you are an active trader. You should have the trading software that has the moving trend line indicator. If not then, you will need to learn the skill of drawing correct Trendlines. An incorrectly drawn trendline can be the difference between making and losing money in a trade.

There are three types of trendlines that you should learn how to draw. 1) An Inner Trendline. 2) An Outer Trendline. 3) A Long Term Trendline. These three trendlines form on all time frames. In both uptrends and downtrends! You will need them in your trading.

Draw a straight line connecting support levels without penetrating bodies or wicks of a candle in any uptrend. Correctly drawn trendlines can predict future levels of potential support in an uptrend as well as future levels of resistance in a downtrend.

You find and draw inner uptrendlines by finding the last two levels of support and drawing the line from left to right. Similarly draw the outer uptrend line by starting at the far left of the chart and moving to the right connecting the majority of the support levels with a straight line.

Draw the outer term trendline by going on a larger time frame and connect the levels of support starting from the far left of the chart moving forward. In a downtrend, the market reacts the same way as an uptrend but in an opposite direction. That means all the rules are the same but in the opposite direction. Instead of a support level, use the resistance level to draw trendlines in a downtrend.

from forexarticls.co.uk