Kamis, 03 Juli 2008

How To Choose The Right Forex Trading System For You

When it comes to trading systems that you can use to trade on the Forex market you have plenty of options but it’s very important to choose the right Forex trading system for you.

Some may find fundamental factors easier to take while others will do better with technical indicators. Everyone is different and which system isn’t important – what is important is matching individual to system. So how do you find the right system?

Well it starts with you understanding the methods of analysis that are used when you are trading on the Forex currency market. When you know what the tools are and how to use them you can analyze what is best for you.

Some of the most popular technical analysis tools include pivot points, Fibonacci retraces, chart patterns, candlestick patterns, trade balances, interest rates, and GDP which stands for gross domestic product.

You will need to determine the profitability of the Forex trading system you are considering choosing. Use a real time demo to determine how profitable a trading system is. This lets you begin to understand what the system’s capabilities are and it also let’s you become familiar with the trading platform.

Next you need to have a look at the expectancy which tells you what type of profits you expect to make over a period of time. You calculate expectancy using this simple formula:
(Probability of winning × average win) – (Probability of losing × average loss) = the average profit per trade. If this number is a negative number you need to look at a different Forex trading system. Of course the higher the number the better the profits you can expect.

You should also examine the opportunity factor which is just how often you can expect to trade using the trading system. You multiply your expectancy figure with the opportunity factor and it tells you how much you can expect to profit during a specific time period. The more opportunity the more profit you can expect to put in your pocket.

Now that you know how to choose the right Forex trading system for you to reap the most profitability.

Forex Trading Software

If you plan to start trading with Forex online you will need the right software system to give you the ability to collect information on market prices and make Forex trades quickly and easily. There are two types of Forex software available. One is web based while the other is client based.

The Forex market is a high paced fast moving market and to make good trades you need good information and with the right software and a high speed internet connection everything you need is only mouse click away. You just need to decide on which software is best for you.

Client based Forex trading software is downloaded and then installed on your computer. The biggest draw back to a client based system is that you can only access it from the computer on which it is installed. You also need to be concerned with the security on your system.

Web based software lets you login in with an internet connection and you can use any computer anywhere. Web based software tends to less vulnerable to viruses and hackers because of the high security implemented.

Whether you use web based or client based it needs to provide you with real time quotes and the means to quickly buy and sell on the market. If you choose client based software it pays to pay the fee that ensures you software updates because there are regular changes.

Brokers house your client information on two servers in two different locations for security and safety of your data. So for example if a server has a power failure the data is automatically transferred to the other server and you won’t even realize there was an interruption. Brokers also back up their server using an ongoing system so nothing is ever lost.

You may have found your calling with Forex. There is plenty of money to be made on the currency market. The first step is taking a little risk, the next step is choosing the right Forex trading software, and finally you’ll reap the rewards in profits.

Forex Scalping

Forex scalping is a trading strategy in which the trader makes dozens or even hundreds of trades daily, looking to capture a few pips per trade. Generally, scalpers stay in trades for less than a minute, bolting as soon as their position captures a few pips.
Brokers do not look kindly upon scalpers, as many times scalpers will exit a position before the dealing desk has time to deal your order. This means that the brokerage has to eat the position—a successful scalper will consistently earn money—money that comes directly from the brokerage’s pocket.
To avoid this conflict of interest between scalpers and the brokerages, scalpers often trade with electronic communication network (ECN) brokerages, which circumvent the dealing desk allowing online traders to trade directly with one another. ECN brokerages usually have less liquidity than traditional dealing desk brokerages and charge a per trade commission, but their pip spreads are narrower.
To be a successful online Forex scalper, traders must follow strict risk management rules. Because the scalper grabs only a couple of pips at a time, one big loss can wipe out dozens and dozens of careful, meticulous trading. Traders should be sure to use stop loss orders, ensuring that the profit/loss margin on each trade is very small.

The Foreign Exchange

The Foreign Exchange is the largest financial market in the world, with trillions of dollars traded each and every day. Initially utilized just by large banks, multinational corporations and extremely wealthy currency speculators, the influx of online brokerages tailored to the retail market has created a vibrant retail foreign exchange market! Now, with a relatively small initial investment, anyone with an internet connection can take advantage of the online Forex market.
While banks and large multinational corporations generally execute foreign exchange transactions simply as a function of doing international business or to hedge their base currency to protect against devaluation, currency speculators exploit fluctuations in the foreign exchange market exclusively for profit. While trading currencies is a bit riskier than trading other instruments, like stocks and commodities, the potential for profit is unparalleled. For example George Soros, perhaps the most successful Forex trader, made $1 billion in a single day when he sold the pound against the dollar in 1992.
The major currencies traded on the foreign exchange are the US dollar, the Eurodollar, the Japanese Yen, the Swiss Franc, and the British Pound. These different currencies are expressed as pairs. When these pairs are traded, one of the currencies is bought and the other currency is sold concurrently. Today, anyone with an internet connection can trade these pairs under the same conditions once reserved for high value individuals and corporations. Most retail brokerages offer real time currency prices, instant execution, advanced charting features and extensive real time news and analysis feeds.
If you are interested in trying out the foreign exchange, we have assembled a list of quality brokerages that offer free “fake money” accounts where one may trade in real market conditions. Not only is their immense profit potential in the Foreign Exchange market, it is quite exhilarating as well. Why not give it a shot?

How do I get started in Forex?

Do you see the profit potential in trading currencies, but learning to trade just seems too daunting? Have you watched with excitement the recent crashing of the value of the USD, but simply don’t know how to get started trading?

While it is simple to begin trading Forex online, maintaining profitability in the long term is no easy task. You have probably heard that 90% of Forex traders lose their money in the long term. If indeed this is true, it is the result of a couple of different factors.

1. Overtrading: Each trade costs you a couple of pips—Consider your trades well before you make them. Each faulty trade, even if exited quickly, drains equity.
2. Bad money management: One bad trade can wipe out a year of patient, smart trading. Manage your risk using stop loss orders, so that you never risk too high a percentage of your equity on any one single trade.
3. Lack of knowledge: If you have never traded Forex before, educate yourself! Successful traders are not born that way. The difference between success and failure in the Forex market depends in no small part on the knowledge and education of a trader. For the beginning trader, a proper education is essential before investing in the Foreign Exchange. Find a program you are comfortable with, and begin practicing on a demo account.

Trading on the foreign exchange offers unparalleled opportunities for profit, but it is also extremely risky. Make sure you know what you are getting into before you start trading, and start trading only when you are comfortable in your knowledge and ability.

Forex Guru Gets Sent To Jail

Forex guru Joel Ward, 49, out of Turlock will be spending the next nine years of his life behind bars at a federal prison. Ward has been tried and found guilty of conning close to 100 investors out of $11 million. A commentator and seminar speaker on Forex trading, the scam he masterminded was operated though an investment fund called the Joel Nathan ForexFund. Over a three year period – 2003 through 2006 – Ward took $15 million from investors who believed the company was legitimate. 85% of that amount was used to promote Wards business, travel, salary, and the purchase of a Forex school in Sacramento.

About $3.7 million was used to make ‘Ponzi’ payments to investors who withdrew their funds from the bogus operation. The rest of the money that Ward bilked was lost over the last two years on foreign exchange market trading. The scam has hidden behind false account statements that were send to the investors, who were conned with a second scheme that related to a Mississippi real estate investment project.

nasdaq secret

In September 2008, the NASDAQ OMX Group Inc. will launch a pan-European trading platform overseas which will target approximately 5% of trading in European blue chips. This 5% is expected to be made in the first year alone, rising to an expected 20% in the future. The company is hoping the will be able to cash in on market shares from both multilateral trading facilities like Chi-X Europe and Turquoise as well as incumbent exchanges. Chi-X Europe and Turquoise both have high speed trading engines and a competitive total training cost that is attractive to the NASDAQ platform leaders.

The trading venture, which will work with the Nordic and Baltic stock exchange operator OMX and its existing venues, will be the first of its kind to offer routing that is based on the best bid made in Europe. Called the NASDAQ OMX Pan-European Market, it will be treading new waters with its unique offering. Currently there are no requirements under the new European Union trading rules that state routing must be made on the best bid that is thrown on the table.

“I think there is absolutely room for new entrants. It will take awhile for the market to sort things out to find anywhere from four to five large markets,” Christopher Concannon stated when questioned about the new venture. Concannon is the newly appointed head of NASDAQ OMX’s pan-European market. “Clearing and settlement is a critical matter,” he added.

Fortis, European Central Counterparty Ltd., SIS x-clear, and LCH Clearnet Group are all candidates to partner into this transatlantic venture with NASDAQ. There is still no word on what the trading fees will be or how they will be set up, but it is believed that the fee structure will be similar to the one that is in place with Chi-X Europe. Concannon, who joined NASDAQ in 2003 as one of the executive vice presidents assures traders all over that the pricing will be competitive.

NASDAQ OMX is expected to incur losses during the initial start-up as they route their current traders to other liquidity pools until they are set-up. The liquidity providers will earn a reward for every trade made and the traders will receive a discount from the providers. The platform is supposed to be low-cost and involve a staff of approximately twenty people and only a small market share to get their foot in the door and start making money.

In September 2008, the NASDAQ OMX Group Inc. will launch a pan-European trading platform overseas which will target approximately 5% of trading in European blue chips. This 5% is expected to be made in the first year alone, rising to an expected 20% in the future. The company is hoping the will be able to cash in on market shares from both multilateral trading facilities like Chi-X Europe and Turquoise as well as incumbent exchanges. Chi-X Europe and Turquoise both have high speed trading engines and a competitive total training cost that is attractive to the NASDAQ platform leaders.

The trading venture, which will work with the Nordic and Baltic stock exchange operator OMX and its existing venues, will be the first of its kind to offer routing that is based on the best bid made in Europe. Called the NASDAQ OMX Pan-European Market, it will be treading new waters with its unique offering. Currently there are no requirements under the new European Union trading rules that state routing must be made on the best bid that is thrown on the table.

“I think there is absolutely room for new entrants. It will take awhile for the market to sort things out to find anywhere from four to five large markets,” Christopher Concannon stated when questioned about the new venture. Concannon is the newly appointed head of NASDAQ OMX’s pan-European market. “Clearing and settlement is a critical matter,” he added.

Fortis, European Central Counterparty Ltd., SIS x-clear, and LCH Clearnet Group are all candidates to partner into this transatlantic venture with NASDAQ. There is still no word on what the trading fees will be or how they will be set up, but it is believed that the fee structure will be similar to the one that is in place with Chi-X Europe. Concannon, who joined NASDAQ in 2003 as one of the executive vice presidents assures traders all over that the pricing will be competitive.

NASDAQ OMX is expected to incur losses during the initial start-up as they route their current traders to other liquidity pools until they are set-up. The liquidity providers will earn a reward for every trade made and the traders will receive a discount from the providers. The platform is supposed to be low-cost and involve a staff of approximately twenty people and only a small market share to get their foot in the door and start making money.

Minggu, 23 Maret 2008

What is FOREX


FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand

As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market. It is also the biggest liquid financial market. According to various assessments, money masses in the market constitute from 1 to 1.5 trillion US dollars a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. Practically in every time zone (that is, in Frankfurt-on-Main, London, New York, Tokyo, Hong Kong, etc.) there are dealers who will quote currencies.

Apakah Bisnis Trading Forex (Valas) Online adalah pekerjaan yang beresiko tinggi?


Biasanya orang yang mengalami kerugian besar di bisnis forex adalah orang yang serakah dan ingin cepat kaya tanpa memperhitungkan resikonya. Karena sebenarnya forex adalah bisnis yang memerlukan kesabaran, latihan menganalisa pasar, dan manajemen resiko. Semakin sering anda berlatih, akan semakin mahir anda menganalisa pasar, dan saya jamin anda tak akan mau bekerja lagi menjadi budak uang, tapi uang akan bekerja untuk anda.
Di forex anda dapat menentukan seberapa besar keuntungan yang mau anda dapatkan dan berapa banyak kerugian yang sanggup anda tanggung. Jadi intinya adalah "aktor" di belakangnya. Bukan forex yang beresiko tinggi, tapi bagaimana style dari trader itu sendiri.

Apakah Trading Forex (Valas) Online itu gambling (judi)?


Bisa ya bisa tidak. Gambling atau bukan adalah tergantung dari style masing-masing trader. Kalau anda melakukan trade berdasarkan "feeling" atau untung-untungan dan asal tebak. Bisa dipastikan anda gambling, tapi jika anda melakukan trade berdasarkan teknik dan analisis forex yang matang, baik Analisis Teknikal (Technical Analysis) ataupun Analisis Fundamental (Fundamental Analysis) maka anda bukanlah pejudi tapi seorang trader.

Apa kelebihan Forex (Valas) Online dibandingkan Investasi lain :


  • Forex memiliki 2 way opportunities, artinya anda dapat menghasilkan keuntungan 2 arah, ketika market naik atau pun ketika market turun. Hal ini tidak berlaku bagi investasi jenis lain (1 way opportunity), sebagai contoh saham.
  • Kesempatan Trading Forex selama 24 jam sehari 5 hari seminggu
  • Likuiditas yang sangat tinggi, artinya anda dapat melakukan transaksi jual beli forex secara instan setiap saat tanpa harus menunggu apakah ada pembeli atau penjual.
  • Adanya fungsi Leverage (daya ungkit/faktor pengali), artinya dengan modal relatif kecil anda dapat menghasilkan keuntungan yang jauh lebih besar. Contoh : tanpa leverage anda hanya akan mendapatkan $0.01/point dengan modal $100. Tapi dengan leverage 1:100 maka anda dapat menghasilkan $1/point dengan modal yang sama ($100).
  • Tersedia banyak broker forex (valas) online yang memberikan fasilitas bebas komisi, modal minimal yang relatif kecil, biaya transaksi (spread) kecil, bebas bunga (tanpa riba, halal bagi muslim), fasilitas trading otomatis (robot)
  • belajar forex

    Belajar Forex (Valas) Online ? Mendengar kata Trading Forex atau Valas, seringkali timbul negative thinking dalam benak anda bahwa trading forex (valas) online adalah suatu bentuk gambling, pekerjaan yang tak menjanjikan, beresiko tinggi, membutuhkan modal besar, tidak halal, dan lain sebagainya.

    Stereotype di atas menyebabkan bisnis trading forex (valas) seringkali dipandang sebelah mata di masyarakat kita. Hal ini tidak dipungkiri karena adanya trader forex lokal yang seringkali menggunakan cara setengah judi (gambling) dalam memainkan dana klien mereka, tanpa ada rasa tanggung jawab akan dana klien yang bersangkutan. Kalau kebetulan menang akan lebih banyak klien yang memasukkan dana untuk mereka mainkan. Kalau pun kalah toh masih mendapat komisi. Yang menjadi korban tentu saja klien (anda).

    Memang masih banyak trader (fund manager) yang bekerja secara profesional dan bertanggung jawab terhadap dana klien mereka. Tapi bagaimanapun jauh lebih baik jika anda sendiri yang memulai trading dan menghasilkan uang tanpa "menyerahkan nasib" dana anda kepada pihak lain. Mengapa ?

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