The Forex market is the largest trading market in the world, by far!

Forex traders include banks,

commercial firms and people like us - private traders who want to take advantage of these markets for
themselves without the hassle and charges of the banks. To begin trading you need to choose a broker,
open an account and deposit the amount of money you choose to trade with. Youll then get access to a
trading platform where you can execute all your trading activity.

Every day the forex market offers endless opportunities to make significant
profitsbecause of the continuous movements in foreign currencies.
High volatility, liquidity and leverage make this market a golden egg for those who know how to exploit it.
If you are a newcomer to trading, feeling clueless, or that you lack the confidence to start: don't sweat it.
Anyone can trade. Thats the beauty of the Forex market. Its power is in its simplicity. It may seem
complicated but it doesnt need to be. The truth is that Forex can be simple, you just need to invest in
understanding how it works, and start using the right tools to help you trade well.

A world full of opportunities

The foreign exchange market (Forex) is the largest and most traded market in the world. Banks,
commercial companies, brokers and private traders all use it as a short and long term investment
channel. Traders use online trading platforms, offered by brokers to execute their trades. In order to start
trading they open accounts and deposit the amount they wish to trade with.

What happens in the Forex market is directly related to the economic, financial and political news from
around the world. Every day it offers endless opportunities for high profits, as a result of the non-stop
movements of the different currencies.
Fellows, if you have been looking for an efficient and smart way to invest your money instead of letting it
rest and lose value you are in the right place. Forex lets you leverage your investments as you wish to. If

youre looking to combine attractive investment opportunities with the most dynamic, interesting market
there is today, then look nofurther!

So what exacly is Forex

Let's make it simple: imagine youre flying on a business trip from NY to Munich. After arriving at the
terminal, you swap dollars for euros and just like that you execute a Forex transaction. A few days later,
on your way back to NY, you exchange the remaining euros for dollars, but at a slightly different rate than
the one you got first time. In your second transaction you executed an opposite action to the first and so
closed a circle of buying and selling a pair of currencies.

That is how Forex trading works! Simple, right?

Forex is the buying and selling of currencies. Forex transactions always include two currencies one
is purchased while the other is sold. For example, in a Forex transaction, euros (EUR) may be purchased
while US dollars (USD) are sold; or Great British pounds (GBP) purchased while Japanese yen (JPY) are
sold. The two currencies involved in a transaction are considered a currency pair (e.g., EUR/USD or
GBP/JPY) and each pair has an exchange rate.
Imagine the 2 currencies as a couple of heavy weight boxers, fighting an endless struggle. When one of
them is ahead, the other is always behind, so first one, then the other, weakens and then gets stronger
again; and on it goes forever. Each currency is indicated by a 3 letter symbol (the first 2 letters are the
country it represents and the third comesfrom its name). For example, USD indicates the U.S. Dollar. The
most traded currencies in the market are the USdollar (USD), the euro (EUR), pound (GBP), yen (JPY)
and the Swiss franc (CHF).

The goal of Forex trading is similar to the goal of stock trading: "buy low and sell
high."
Currency exchange rates fluctuate throughout the day, providing traders with the potential to
profit from these movements.

Advantages of Forex
There are many advantages to trading Forex:
Markets stay open 24 hours a day, 5 days a week, all over the world!
Pay no commissions nor taxes on opening and closing accounts
Be the master of your own fate: execute trades for yourself, when you want
Start trading with almost any amount (25 dollars and up!). The market is accessible to anyone
No force in the world is strong enough to manipulate the Forex market: its just too big!
Never get stuck in a trade: there are always buyers and sellers so you can always close a trade
youre done with
Limitless profit potential even on small investments! Thanks to leverage its possible to make
huge returns in Forex

Trading sessions and hours

There are 4 global centers to the Forex trade, which follows the sun from east to west from Sydney
(Australia), to Tokyo (Japan), to London(Great Britain) and on to New York (USA).

The best times to trade are when markets are frantic. During these times, volatility is higher, trends are
stronger and more money is changing hands. We call these hours"Volume Hours".The busiest session is
the European- London session. Money movement is the highest. Busiest trading hours each day are
13:00-15:00 GMT (because during those hours both London and NY sessions are open), and 8:00-9:00
GMT (Both London and Tokyo sessions are open). Most action takes place when 2 sessions are open
simultaneously and in particular London/NY.The closing hours of the London session are usually very
busy and characterized by strong, powerful trends.

How to Trade Forex

More than 5 trillion dollars are traded on the foreign exchange market every day! This makes
foreign exchange trading, also known as Forex trading, one of the best places to invest and a
great place to make money. Large initial investments are not always necessary in order to
succeed in Forex trading and nothing compares to the excitement of making a right call and
earning a bulk of money on the market. This article will discuss how to trade Forex online.
There are three main components that you must go over in order to learn how to trade Forex:

1. Learn the Basics of Forex Trading

The basis of Forex online trading is selling one type of currency in exchange for
another currency. The currency that you are selling is called the Base Currency and
the currency you are buying is called the Quote Currency. The amount of quote
currency that you will get for the sell depends on the constantly changing exchange
rate, and learning to understand the movement of this exchange rate is the key to
learning how to trade Forex. Another important term is a Long Position. A Long
Position simply means that you are buying the base currency and selling the quote
currency. On the contrary, a Short Position means that you are selling the base
currency and buying the quote currency.
So how do we decide which currency pair to trade?

An endless amount of factors influence the movement of the price of every currency pair. In
order to learn how to trade Forex we must understand a least a few of these factors and how they
might affect the price.
One of these factors is the state of the countrys economy. When an economy weakens, the value
of its currency also weakens in respect to other currencies on the market. Political events may
also influence the price change. An upcoming election may increase or decrease the faith of
people in the economic future of a certain country therefore influencing the strength of that
currency. Follow recent economic reports to get a glimpse into a certain currency pair and make
a smart decision based on facts.

*** Note that the total traded is 200%, due to the fact that in the FX market, you trade currency
pairs
The final part of the basics is learning how to calculate our earnings and losses. Changes in price
are measures using pips. One pip is one ten-thousands of a unit. For example, if the original price
was 5.6930 and the price dropped by 10 pips then the new price will be 5.6920. In order to
convert the pip change to an actual profit or loss, multiply the pip change by the current
exchange rate and you get the increase or decrease in your accounts value. Read more about
Forex trading basics

2. Open an Online Account

To trade Forex online you must have an active online account. Many brokerages offer online
accounts and joining the right one is very important. Look into several alternatives before
making a decision while taking into consideration these key factors:

Experience In trading Forex online, experience is very important and choosing a

company without the proper experience is a big risk. Consider companies with an
operating experience of 5 years or more to be safe.

Regulation Most countries provide government supervision and the best brokerages
abide to this supervision willingly. Check who oversees the companys work and make
sure that it is an honest and serious body. Some well known supervision bodies are:

France: Autorit des Marchs Financiers (AMF)

Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt fr Finanzdienstleistungsaufsicht (BaFIN)
United Kingdom: Financial Services Authority (FSA)

Australia: Australian Securities and Investment Commission (ASIC)

United States: National Futures Association (NFA)

Reviews A great way to learn what others think about a certain brokerage is to read its
reviews. Some companies publish fake reviews for themselves so keep that in mind and
try to distinguish between genuine and fake reviews.

Website Compare the websites between different brokerages. A professional brokerage

will have an active website with no dead end links and will provide a professional look
and feel.

Once you have chosen a brokerage which meets your needs, start filling in the paperwork. You
can choose between a personal account and a managed account which is an account that is
managed by your Forex broker automatically. Check the fees before closing a deal as the fees of
transferring money from your bank can be quite high and other fees can cut into your profits.
The final step is to activate your account via a link that your broker will send you by e-mail.
Upon completing this step you are ready to start trading Forex online.

3. Trade Forex Online

Its time to start analyzing the market in preparation for making a first trade. There are three
types of analysis that help us make a decision:

Fundamental analysis is an analysis of the current events and economic developments

that may affects the price of a certain currency pair. Learning about current events and
about a certain countrys economical status is the key to this type of analysis.

Technical analysis is an analysis type which requires a good understanding of charts and
graphs. The proper charts can usually be received from your broker or via certain Forex

trading platforms. Using these charts, we analyze the previous price movements and use
them to predict the future price movements.

Sentimental analysis is a more intuitive type of analysis. It involves guessing, based on

intuition what the price will do. Over time, experienced traders acquire the intuition to
know which trades are likely to be profitable and which are not.

The amount of money that you can invest in each trade depends on your brokers protocols but
remember, if you invest smart you can invest a small amount of money and still earn big. The
general practice is not to invest more than 2 percent of your account on a single trade.
Your Forex broker will also allow you to limit a certain trade to a certain price.

Market orders are orders that are to be carried out immediately, at the current price. Limit orders
are orders that instruct your broker to enter a trade only if the price reaches a certain level which
you have chosen. Stop orders instruct your broker when to close a position. When the price
reaches your stop order price the trade will automatically close.
Remember, trading Forex online is not an exact science and a few ups and downs are to be
expected. Make sure to complete a professional analysis of the market, make up a strategy in
advanced and stick to it no matter what. If you follow these key instructions you will eventually
start to see that your profits outweigh your losses more and more as time goes by.

Forex Trading Basics

Key Forex trading terms
Let's get familiar with the basics:We always trade Forex in pairs with each currencys value being
compared to another:The Base currency - the first currency (on the left)The Quote currency - the
second currency (on the right)

By selling the base currency, we are buying the quote currency. When we buy a pair, we actually buy the
base by selling the quote. In our example - buying 1 GBP In exchange for selling 1.4135 USD. When we
sell a pair, we are doing the opposite.

When you see a currency pair quoted youll see two different prices listed:
The Ask price is the price the broker is asking me to pay to buy the base currency.

The Bid price is the price (in the quote currency) which Forex brokers will pay me if I want to
sell the base currency.
The Exchange rate is the ratio between the values of the two currencies. Let's look at another quote as an
example:

Base Currency = EUR

Counter = USD
Bid price = 1.3272
Ask price = 1.3276
When selling Euros, 1 Euro = 1.3272 USD
When buying Euros, 1 Euro = 1.3276 USD
Spread = 1.3276 - 1.3272 = 0.0004
If we buy a pair it means that we sell the Quote currency in order to buy the Base currency. We do it when
we believe that the value of the base currency will increase (relative to the Quote currency). If we sell a
pair it means that we believe that the value of the Base currency will fall (relative to the Quote currency).

If we buy a pair it means that we sell the Quote currency in order to buy the Base currency. We do it when
we believe that the value of the base currency will increase (relative to the Quote currency). If we sell a
pair it means that we believe that the value of the Base currency will fall (relative to the Quote currency).

What you also need to know

Lot - the standard level of deposit per single trade. There are 3 main sizes:
Micro lots

= 1,000 currency units (e.g. 1,000 Euros)

Mini lots
= 10,000 currency units
Standard lots = 100,000 currency units

In a mini account a single pip is worth approximately $1

In a standard account a single pip is worth approximately $10

Long Position - A Buy action (expecting the currency to go up)

Short Position - A Sell action (expecting the currency to go down)
Let's see an example on EUR/USD:

Your Action

EUR

USD

You purchase 10,000 euros at an EUR/USD exchange

rate of 1.2880(BUY position on EUR/USD)

+10,000

(*) -12,880

3 Days later, you exchange your 10,000 euros back into

us dollars at the rate of 1.4880 (SELL position on
EUR/USD)

-10,000

(**) +14,880

+2,000

You exit the trade with a $2,000 profit(EUR/USD

increased 2,000 pips in 3 days! In our example, 1 pip is
worth 1 us dollar)

* 10,000 Euros x 1.2880 = $12,880

** 10,000 Euros x 1.4880 = $14,880

Trading orders
Stop Loss orders: These are extremely important and useful orders! We advise all of you to get used to
adding a "stop loss" to each and every position you open. It prevents any additional losses beyond a
particular price level. In fact, it is an automated selling order which will be executed once the price
reaches a particular level. When the market goes against you, a Stop Loss can be crucial for shielding
you from heavy losses. Stop Loss is available on every trading platform. To activate it, give a stop loss
order to your broker.

Where to put your stop loss:

When buying (going for long positions)- place your stop loss sell order beneath the actual
support level of the present trend.
When selling (going for short positions) - place your stop loss buy order above the actual
resistance level of the present trend.
Avoid these common mistakes:
Dont place your stop loss too close to the present market price of the pair. Allow price
movements, dont suffocate the currency.
Dont place your stop loss on the exact support/resistance levels

Give the price a chance to come back to the positive zone

Dont change your stop loss orders in the middle of your trade. Stick to your trading plan and
dont let your emotions take control of your trading!
Take Profit orders: These are automated exit orders, determined in advanced by the trader. If the price
reaches this level the position will close automatically, and the trader will collect their earnings. The
purpose of this is to ensure a certain level of profit (even if there is a chance to earn more).The big

advantage of using Stop Loss and Take Profit orders is that by doing so, you can avoid sitting in front of
your computer all day, watching your trades! With these orders in place you know that if the price hits one
of these 2 target levels, the position will close automatically.

More Forex lingos to remember

Volatility - the Forex market can be very volatile. The greater the volatility, the greater the risk factor in
trading. But the greater the potential opportunity also! When markets are volatile traders need to be
careful of painful losses, while looking out for powerful new trends. The less stable a country is, the higher
the volatility of its currency will be.

Pip - the smallest price movement taking place. The fourth decimal. For example, if the EUR moved from
1.4431 to 1.4432, it moved up 1 pip. Profits and losses are calculated either by the value of money
involved or by the amount of pips, depending on how you would rather look at your positions.

Forex language is the language of pips!

Spread - The difference between the Bid Price (Sell) and the Ask Price (Buy).
Margin - The amount of capital we will have to deposit as a ratio of the amount of money we wish to trade
with.For example, assume we deposit 10 dollars at 5% margin, it means we trade with $200 ($10 is 5% of
$200). This is similar to depositing an amount of capital with your broker and then receiving a loan in
return (but without having to pay interest).

Leverage your money

The level of credit you get on your currency investment from your broker. In other words, the ratio
between the size of your deposit and the amount of money you trade with. Leverage supersizes the
impact of your trades, multiplying the potential for earnings or losses. If your trade goes as planned, you
win big time. However, if the market goes against you, you can lose it all.

X10 leverage means that in exchange for $1,000 deposit you will be able to trade with $10,000 (Dont
worry, you cant really lose $10,000 on this trade, only the capital you deposit). Back to our example, a
10% uptrend will double your capital, while 10% downtrend will erase it.

Example:
Let's assume were going long on EUR/GBP (we buy EUR/GBP). The ratio between the two currencies is
1:1. After a couple of hours the ratio jumped to 1.1 in favor of the euro. In these couple of hours we
earned 10% of our total investment. If we invested 1,000 euros, how much are we profitable right now?
You guessed right! 100 euros.

But wait a minute, now let's assume that we entered a trade with those 1,000 euros but with a leverage of
x10. So in fact, we entered this trade with 10,000 euros. In this case, the 10% that the price went up is
worth 10% profits on the trading capital, which is now 10,000 euros. 10% is worth 1,000 euros. In 2 hours.
Well, thanks to x10 leverage we are right now 100% profitable on our real money - the 1,000 euros we
used for this position. Hallelujah!

Leverage gives us the possibility to deposit small amounts like $100, $200 or $1,000 for example,
and trade with massive capital like $50,000 or $100,000 dollars, by risking only the capital we

actually invested!
High usage of leverage, like x50 for example can produce gigantic profits if we have luck on our side, but
high leverage also enlarges the risk of losing all our money. This kind of risk taking strategy is good only
for people with strong hearts! We advise you to start out trading with very low leverage, like x2 or
x5.Leverage is a big draw for the Forex market - no bank in the world will allow you to invest $1,000 and
collect a 20% return after just 2 months. Only the Forex market offers such opportunities.

Trading styles

There are several different trading styles, representing different Forex trading strategies:
Scalping - This is a very short term style usually undertaken during the busiest hours of the day. In
scalping time frames are very short and positions are held from just a few seconds to a couple of hours.
The idea is to win a high number of positions, but a low number of pips on each position.
Day Trading - This is also a short term trading strategy. Usually the trader will enter trades during the
early hours of the days activity and will close them after few hours, at the end of the daily session.
Swing trading - This is a longer term trading strategy, good for traders who wish to observe the market
and wait for market trends which will bring opportunities along.
Position Trading - This long term trading strategy can last a few months, or even up to a year. Its good
for traders who think of themselves as investors and who wish to trade by using fundamental analysis and
the analysis of market forces.

How to Start - Choose the Best Forex Broker

Forex brokers and trading platforms

There is no need to visit your banker or hire investing consultants in order to trade Forex. All you need to
do is to find a broker online, sign in and open a trading account. That is why it is so important to choose a
broker that fits your needs.
There are several important criteria for choosing a broker:

Security: choose a regulated broker, one that is operating in one of the main regulated territories e.g.
USA, Germany,Great Britain, Australia or France.
Customer service: good brokers offer reliable customer support, giving you the possibility to
communicate with their representatives and get answers to your questions.
Trading platform: the platform should be clear, intuitive and simple to run. It should include a
variety of trading tools and technical indicators. Bonuses like live news and articles certainly raise its
quality.
Transaction costs: compare the fees taken by different brokers and look for one which is
competitive.
Live quotes: accurate quotes and fast response times to your orders are critical for successful
trading.

3 Simple steps to start trading

Choose the broker you would like to open a trading account with.
Register to open a trading account and deposit the initial amount you want to trade with.
Activate your account. Once youre registered youll receive an email from your broker, with username,
password and instructions.

Most Forex brokers require a minimum deposit of USD 25-100. However, in order to get a personal
account manager, it is advised to deposit $500 or more. Ask for a personal account manager when
opening an account, even if it means calling to the brokerage's help desk!

An account manager will put you right on track, by helping you with every technical question, tip, trading
advice and more.

Learn How to Trade Forex Like a Pro

Learning how to trade Forex like a pro is really not that complicated. Anyone can learn to trade, it is a fact.
Dont get us wrong, Forex isnt a piece of cake, but whoever puts in the effort to master the fundamentals
and stays ahead of the latest market news, can have a real shot at making it work.

So who is this strategy good for?

Anyone interested in learning more about Forex and trading for himself.
Anyone looking to trading for a second income, or as a way to work from
home.
Anyone considering Forex as a long term investment option.
Anyone who already knows a thing or two about the market, and is looking to
turn their knowledge into profits.

So how do you get started at forex trading?

Practice, and more practice!

Theres nothing like experience! Opening a Demo Account and practicing on it for a while before you
trade for real is a great help when youre starting out and gives you the chance to test out the platform
youll be trading on. Those of you taking the course get to simultaneously open a demo account, which

will guide you while you learn Forex.

Time
Dont choose this strategy if youre short on free time. Trading Forex professionally takes commitment.In
order to be a successful trader youll need to dedicate at least 1-3 hours a day. If you cant spare this time
we suggest you consider following our experts and trading with alerts instead.
Passion
If you are thinking to yourself how interesting this all sounds then go for it! Passion and enthusiasm can
see you through the difficult moments until you reach success.

Technical Analysis
This is the most common trading method among traders worldwide. Technical analysis is performed on
Forex trading platforms with the assistance of the trading toolboxes and technical indicators brokers
supply. Technical analysts try to recognize market trends by identifying repeating patterns and price
behaviors in order to forecast future currency trends.

Technical indicators are basically formulas and mathematical calculations. Technical tools and indicators
will usually appear on an upper toolbar on your trading platform. By choosing an indicator you will view it
either directly on the chart or below it.
If youre interested in technical analysis make sure you know about:
Candlestick Charts: These charts contain a sequence of "candles" stretched from the opening

price of the candle's time frame to the closing time of the same candle's time frame. Theyre the
most popular charts used in Forex trading. Each candle includes 4 points - opening, closing,
high and low. The color of the candle indicates the price direction. Green (Or white) represents
an uptrend, Red (Or black) represents a downtrend. A long stick illustrates intense action,short
stick shows limited activity in this particular time frame.

Lines above and below the body are called Shadows. Long shadows indicate action in between the
opening and closing points. Short shadows indicate that most activity took place next to the opening and
closing times of this candle.
Lines and Trends: Trends are in fact the heart of Forex trading. They are the basis of our activities as
traders. A trend is the direction a chart moves. It can advance in 3 directions: Uptrend, Downtrend or
Sideways trend (ranging trend). Each trend is characterized by peaks and lows. In Forex jargon an
uptrend is called Bullish, and a downtrend is called Bearish. When we buy a pair we actually go bullish
and when we sell a pair we go bearish.
Support and Resistance levels: The points on the chart which indicate price barriers. They are the floor
and the ceiling of a trend.

The floor is the support level. It appears at the end of a bearish trend. It can be a momentary or final end
to this specific trend. It expresses the point at which the buying forces are stronger than the selling forces.
The support level is the lowest point in the present trend.The ceiling is the resistance level. It appears at
the end of a bullish trend. It represents the point at which the sellers prove stronger than the buyers of the
currency, and where the trend is reversed.

Fundamental analysis
The most famous traders in the world, from George Soros to Warren Buffet, admit that they owe their
fortune to fundamental analysis. So what is it based on? Think about the economics of the country you
live in. The fundamentals of the economy are influenced by many areas, like politics, wars, elections, and
more.
Each and every event causes reactions by investors and speculators. Governments, central and
commercial banks, states and natural disasters all play a role in making the Forex market move. The

fundamental approach uses all this to look for long term price trends in the markets.

like inflation, interest rate announcements, work force reports and economic crises is inseparable from
fundamental analysis. Keeping ahead of the latest economic news with an economic calendar is key to
fundamental trading. The leading trading platforms offer detailed economic calendars which provide
updates on the most important economic events around the world.

Why Trade Forex?

The Forex market is fast becoming the most attractive and popular market in the world. The
traditional stock is no longer relevant and traders are moving fast into the Forex. We collected
here a few reasons to show you why this is happening and what advantages the Forex market has
to make is so popular.
How is trading Forex an advantage?
We choose to focus on a few very important advantages of the Forex trading and the reasons that
people choose this market:

This is the largest financial market in the world

The daily volume of the Forex market is huge over $3 trillion per day! This makes
the stability of the market very good compare to stock trading. Also, the price in the
Forex market is exactly what you see is what you get and you can follow it very
easily.
No fees
Forex trading simplifies everything, there's no clearing fees, no exchange fees, no
government fees, no brokerage fees, no middlemen. The elimination of the

middlemen gets the traders closer to the actual trade and makes the traders
responsible for their pricing. The brokers are usually paid through a service called
"bid-ask spread".
Low transaction costs
The retail bargain cost in Forex trading is usually less than 0.1%. Sometimes, with
larger dealers, the spread could get as low as 0.07%. You can control this with your
leverage and we'll talk more about this later.
The market is opened all day long
The Forex market is open 24 hour a day. Opening on Monday morning (in Australia)
and closing in the afternoon in New York. This is great for traders that can trade all
day long or in parts. You can choose the times that are convenient for your trading
day, night, when you eat or when you sleep, whenever you want. The Forex market
is also huge and controlled by so many members so the prices cannot be controlled
by a single entity for a long period of time.

Leverage
In Forex trading you can minimize the risk by depositing a small amount that will
control a larger contract value. This is controlled by leverage and can make you
profitable in the Forex market. If a broker gives 50 to 1 leverage it means that with
50$ deposit you can buy or sell with 2500$. If you put 500$, you can trade with
25,000$. All this needs to be done with great risk management because high
leverage can easily lead to great loss, as well as great profit.
The power of leverage:

Extremely liquid market

The Forex market is huge and therefore also very liquid. This means that on every
buy or sell that you make, there will be someone who will take the other side of the
trade. You will never be grounded because there's no one on the other side.

Low Barriers to Entry

To get started you would think that you need a lot of money. The reality is that
online Forex brokers have "mini" and "micro" options and some of them have a
minimum of only 25$. This is great for Forex beginners because it makes the trading
starting point easier. I'm not saying that you need to start with the minimum, but
being cautious is never bad and starting small is good for the average trader.

Forex for free

Most Forex brokers offer many free options, services, tips and information to help you trade
better. Real time charts and news, help guides, and blogs help you understand and learn
about the market in real time. There are also many "demo" accounts to try the market

before putting in real money. This helps you practice and develop skills before
actually opening a live account.

Why Is Forex the best trading market?

You can easily predict the movements in the Forex market

In the Forex market you have many repetitive patterns and it's fairly easy
to learn, recognize and analyze these movements. The prices tend to go
up or down and return to the average. They stay for quite a long time up
or down and this stability makes the Forex market a much easier market
to follow. This gives the traders a huge advantage in controlling their
trades much better than the disordered other markets.
When the trade goes down, you can still make profit
The Forex market is not a one-sided market like most stock markets. Most
stock markets have a bullish bias, which means that it's harder to get the
margin for a short sell and most traders would prefer the long side or
upside of the market. In the Forex market it's different. The structure of
the Forex market is built so that you can buy or sell at any time and you
never get a fee for selling short. Every time there's a sell, there's also a
buy so you don't get penalties and you don't have to worry about short
selling. This is another advantage that the Forex trading market has over
the other markets.
Starting with mini and micro accounts
Forex brokers make it easy to start trading Forex by having mini and micro
plans. You don't need a full service broker to start trading and the online
brokers are accessible and easy. Most of the brokers also supply a demo
account so that new comers can try, learn and experience the market,
before actually trading in real money. The starting price for trading can be
as little as 100$ on the micro accounts and that'll allow you to trade with
small movements like trading 1 cent per 1 pip movement. In the stock
market or futures you need to start with at least 10,000$ in order not to
lose. In the Forex market, the risk management is more efficient because
you can start with a small amount of money.

Forex Tips for Successful Trading

Art and science are not that different when coming to Forex trading, a bit of both is included,
from numbers to talent. As in every art, talent is not enough. Practice helps develop the skills
and consistency is a key. You need to check yourself, reflect and analyze to know what works

more and what less. I gathered a few Forex trading tips for the beginner trader about how to
become skillful in your art. For the more experience traders this can help you prefect your trade
and make you more profitable.
Make a plan

A good trader needs to have a defined plan. Have defined goals and choose a trading
style that works with those goals. The destination is very important for the voyage; it
helps you know how to plan the road to get there. When you have a goal you need to
make sure that your trading method will work in favor of reaching this goal. Each plan
you make will have different factors for your risk management and your approach of the
market. You have to make sure that you personality fits with your chosen trading style
if it's hard for you to leave an open position maybe you shouldn't trade during the night.
If you try to trade in contrast to your personality you can become very stressful and will
probably lose some money.

Be consistent
In order to be successful you need to choose a methodology and stick with it. You have
to have an idea of how the decisions will be made and how to make your trades. You can
follow analysis or an expert trader; you can also look at some company's fundamentals.
Whatever you do, you need to be consistent and stick with what methodology you
choose and make sure it's adaptive.
Choose the right time frames
Sometimes traders can get confused when looking at the Forex trading charts and going
from time-frame to time-frame. The weekly Forex chart is very different from the daily
Forex chart and what looks like a buying option in the weekly chart can actually be a sell
in the daily chart. What you should do is simple synchronize then and look at both charts
to confirm before entering the market.
Make focused trading choices
Once you put in money you should remember that this is not a game. This money is at
risk and you shouldn't put in more than you got, I mean you still have to pay your bills
and buy food. The money you put in the market should be your "play" money - put just
as much as you can and no more. This way you can accept when you lose, don't be a
sore loser. This will put your strategy at ease and will make you more focused so you can
be more successful. Counting your money and being afraid of losing all the time will not
help you.
Several practical Forex tips:
Try the market first with a demo account. Most brokers have this option and it's very
important for new traders to try it out and make mistakes with fake money before putting real
money for trade. You can sign up for a real account when you feel your trades are good on the
demo.
Mange your risks properly. You should use only 2% of your funds per trade and watch
the stop losses. Invest only some money in some trades and then watch and wait. You need to
make sure to always have enough money to cover if you loss.
As long as your position is open, you haven't lost. Remember that you can always wait
and not take the loss until you choose to.

If you don't have enough money to cover the duration when you loss, the order will
close automatically. Keep a close eye and don't make this mistake.

Choose the best Forex brokers. Find a reliable broker that suits you needs. For
example- unregulated Forex broker is a bad idea. Customer support and the quality of
the trading software is also important.
Forex Risk Management

n Forex trading, the Forex risk management can be the lifeline that separates you from life or
death. If you dont have the right risk management you could fail even if you have the best
trading system in the world.
Forex risk management is a sequence of ideas that help manage your trading risk. Knowing
certain hours and days to trade, controlling leverage, limiting trade lot size, hedging and knowing
when to take losses.
Why is Forex Risk Management Important?

In order to survive as a Forex trader you'll have to understand that risk management is an
important concept. It's not always easy to apply the concept, but it's easy to understand it. In the
industry, Forex brokers discuss the benefits of using leverage and keeping focus off the
drawbacks. Because of this talk, traders think that they should be taking large risks in order to
reach large success and earns.
In the demo accounts it seems to be easy, but once real money is concern and emotions involved,
things change. This is the exact point in which Forex risk management is significant.
Controlling Losses

Controlling your losses is one way of Forex risk management. Controlling the losses means
knowing when to cut your losses on a trade using a hard stop or mental stop. A hard stop is when
lunching your trade you set your stop to a certain level. A mental stop is to limit the pressure or
drawdown you will take for the trade.
The challenge is to know where to set the stop loss and the main thing is to limit your risk on a
trade in a way that's logical to you. Once you decide on the stop loss, be persistent with it. If you
fall into the hobby of pushing your stop loss farther and farther away then you're not controlling
your losses productively and it will not come through in the end.
Using Correct Lot Sizes

Sometimes, brokers will want to make you think that it's beneficial to use 100% of the money
you put in your account because it will give you the best leverage for your money. For example,
you put 200$ on 200:1 leverage and you can double your money in just one trade, if you win.

The truth is there's no magic trick.

For beginners, the best Forex risk management is to start small and limit your lot size to
minimum. Starting with a small lot size is making sure that your risk is manageable and you can
logically approach the trade without fear of emotions that concern when risking a large sum of
money.
Tracking Overall Exposure

So we settled on reducing the lot size, but that doesn't mean you need to open many lots all at
once. It's very important to understand the relationships between the currency pairs. For example
if you go short on EUR/USD and long on USD/CHF, you are playing the USD in the same
direction two times. It equals to trading long 2 lots of USD. Now, you're risking your lose by
double if the USD goes down. Forex risk management is about keeping your overall exposure
limited in order to reduce your risk. In the long run, this will keep you in the game.
The Bottom Line
Forex risk management is about controlling your risk while trading the market. Once you know how to keep your
risk at bay you can be more flexible when you need to. When opportunities arise in the market, traders need to know
how to react. When things don't go so well, you need to be ready and limiting your risks is the way to go. If you
want to become a professional trader you have to use proper risk management, otherwise you'll be left behind.

Forex Trading Strategies

How to read and trade the price action - Forex Trading
Strategies
Trading can be as difficult or as easy as you make want it to be. Indicators and
trading strategies can make trading much easier, and knowing how to read the
price action is one of the most useful ways to trade. This type of analysis was first
introduced by Charles Dow who laid the foundations for the technical analysis, but it
has been developed and advanced remarkably since then. Understanding the price
action gives you that extra edge you need to get over the profit line.

Countless forex trading strategies were invented over the years, and some rely on the technical
use of charts and numbers. Others rely on a fundamental understanding of the market with
reference to current events. And yet, some strategies have become popular while others are only

used by a minority of traders. These trading strategies range in different levels of complexity. We
will now discuss some of our experts favorite strategies - starting with a rather simple one and
moving up the scale in complexity as we continue.
In this section we present you with a wide range of forex strategies and explain in detail how
they work and how you can use them.

The fundamental forex strategies for trading based on fundamental events and how
they affect the forex market.
The technical forex strategies for trading based on technical
(mathematical and statistical) analysis of the forex rate charts.

Carry Trade - Forex Trading Strategies

Carry trade is a Forex trading strategy that is very different from other Forex trading strategies in
the way that it operates. All of the Forex trading strategies that we normally use are based on the
concept of buy low/sell high as the basis to all Forex trading.

Trading the News - Forex Trading Strategies

So far we have discussed many Forex trading strategies that allow us to analyze the price action
from many different angles. These strategies give us the technicals but there's one factor that
always has the potential to make all of the technicals irrelevant and just take the market in every
way that it likes. Big announcements or news coming out of different countries can have a huge
effect on the market, rendering all our analysis meaningless.

Trading The Majors in 2016 - Forex Trading Strategies

Big investors, hedge and pension funds as well as good traders lay out plans and strategies in
advance, usually before the quarter or a new year begins on both, fundamental and technical
outlook. So we are suggesting a strategy to figure out 2016 in advance. I know that there are
many factors to take in consideration which might affect the financial and especially currency

markets, some of them cant even be anticipated, like conflicts, natural disasters etc. Still, we
have to prepare ourselves as best as we can with whatever is available to us.

Trading the Market Sentiment - Forex Trading Strategies

Market sentiment is the momentum of the market. All traders, small or big,
have an opinion when trading in the Forex market. Some might be bullish
and some might be bearish. The market sentiment is all their opinions
combined, even yours if you are trading.

How To Turn Volatility In Your Favour - Forex Trading

Strategies
The forex market can be very volatile. But we can turn the volatility in our favour with certain
trading strategies, such as widening targets, low leverage, portfolio diversification, minimize risk
etc.

Arbitrage - Forex Trading Strategies

Arbitrage has been occurring since ancient times. Arbitrage is more of a speculation strategy,
where someone attempts to profit from market inefficiencies and take advantage from price
differences of the same instrument either on the same market or on different markets. Finding the
right conditions and applying an arbitrage strategy is not easy because everyone is looking for
that little loophole in the market in order to make a profit.

Fair Value - An Efficient Way of Trading Currencies - Forex

Trading Strategies
Fair value strategy shows which one of two economies is in the best shape. You evaluate and
weigh each sector of the economy to see the performance of the whole economy.
Fibonacci Indicator - Forex Trading Strategies

The Fibonacci indicator Forex trading strategy is one of the most well known and commonly
used long term Forex trading strategies. This method relies on what is called a Pullback and to
fully understand how it works we must discuss the more fundamental concept the trend. When
we look at each price change individually it is very hard to explain them and find a pattern as
there are so many of them.
Horizontal Levels - Forex Trading Strategies

Horizontal Levels is one of the simplest ideas in Forex trading and yet a very useful Forex

trading strategy. Horizontal levels are fundamental in most Forex trading strategies and aid us in
analyzing charts but can also be used on their own as a strategy rather than a tool to use for other
strategies.
Divergence - Forex Trading Strategies

Traders and analysts of the financial instruments, apart from the fundamentals, use a number of
indicators to figure out what might happen next to the price of a certain instrument. These
indicators offer a simple method of recognizing patterns and predicting which way the price will
trend next. The use of these indicators is what makes Forex signals possible as they allow for a
real-time analysis of the price action and our analysts here at FXML use them all the time.
Candlestick - Forex Trading Strategies

Candlestick charts are the most common chart types used by retail traders and investors. There
are other types of charts such as line charts, bar charts etc., but they don't tell the story of past
price action like candlesticks do. When trading is based on technical analysis, the decisions for
future price action are made based on how the price has reacted in the past. I find candlesticks to
be very useful and they are one of my favorite indicators. They work almost perfectly in volatile
times, but even in less volatile times they work pretty well if used in combination with one or
two other indicator.
Triangles and Wedges - Forex Trading Strategies

We have covered most of the important technical chart patterns in our strategy section during
2015. There are still some strategies left though. Triangles and Wedges are two of the 10
most important chart patterns and in this article well explain how to trade them.
ADX (Average Directional Index) - Forex Trading Strategies

How many times have you entered into a trend only to find out that it has already run its course
and you were too late? Many of the Forex trading strategies that we use help us predict which
way the market is trending and whether to expect a bearish or bullish trend, but give little or no
indication as to the strength of the trend.
Trading with Ichimoku - Forex Trading Strategies

The Ichimoku Strategy is an abbreviation of the Ichimoku Kinko Hyo, which was developed by a
Japanese journalist named Goichi Hosoda in the 1960s after 30 years of working within this
indicator. This technique has been popular in Japan for quite some time now and it has gained
popularity in other parts of the world as well. Ichimoku Kinko Hyo means instant look at the
balance chart if you literally from Japanese.

Head and Shoulders - Forex Trading Strategies

We already discussed Candlestick Trading Strategy which allows us to understand the

candlestick charts and what each candlestick indicates. But in order to really become a master of
the charts we must learn about a few common patterns that can be formed on the charts and what
information we can draw from them about the future.
Hedging - Forex Trading Strategies

Traders of the financial markets, small or big, private or institutional, investing or speculative, all
try to find ways to limit the risk and increase the probabilities of winning. There are many Forex
trading strategies out there and hedging is one of them. In fact, hedging is one of the best
strategies to do just that, that's why many large institutions use it as a mandatory component of
their tactics. There are even investment funds that are named after this strategy, because they
'hedge' most of the trades and that's why they are called 'hedge funds'.
Elliot Wave Theory: The Background - Forex Trading Strategies

Having nothing in particular, to fill his days, Elliot turned his attention to the stock market
behavior and developed his theorem in later stages of life. Born an accountant, but retired at age
58 after catching a virus from a trip to South America. This is one of the oldest trading strategies,
first published in 1938 as a book under the name The Wave Principle. Until that time, the
general concept was that the market behaved in a chaotic manner and there were not many
trading strategies if any existed.

Trading with the Elliot Wave Theory: Part 2 - Forex Trading

Strategies
In the previous article we published an article where we explained how the Elliot Wave
Theory was developed and how it worked. When used alone as a principle its
useless unless implemented in everyday trading. So this week we will explain how to
trade with the Elliot Wave Theory (EWT), after all thats what we need it for.
The Importance Of Liquidity In The Forex Market - Forex Trading Strategies

Liquidity has been an important factor since ancient times and it continues to this day. A person,
company or a country can be very wealthy but if they dont have enough liquidity or liquid assets
they can bankrupt easily. Very often we hear about liquidity or the lack of it, especially during
the 2008 financial crisis.
How to read and trade the price action - Forex Trading Strategies

Trading can be as difficult or as easy as you make want it to be. Indicators and trading strategies
can make trading much easier, and knowing how to read the price action is one of the most
useful ways to trade. This type of analysis was first introduced by Charles Dow who laid the
foundations for the technical analysis, but it has been developed and advanced remarkably since
then. Understanding the price action gives you that extra edge you need to get over the profit
line.

Countless forex trading strategies were invented over the years, and some rely on the technical
use of charts and numbers. Others rely on a fundamental understanding of the market with
reference to current events. And yet, some strategies have become popular while others are only
used by a minority of traders. These trading strategies range in different levels of complexity. We
will now discuss some of our experts favorite strategies - starting with a rather simple one and
moving up the scale in complexity as we continue.
********************************

Am listing here Some useful Web Resources.

The Best Forex Learning Guide from Beginners to Professionals...
http://www.babypips.com/school

Forex Calender every trader keeps an eye on this site all the time.
http://www.forexfactory.com/

web resources about the foreign exchange market, which consists of news, opinions, daily
and weekly forex analysis.
https://www.forexcrunch.com/
https://www.forexcrunch.com/category/forex-weekly-outlook/eur-usd-outlook/
http://www.investing.com/
https://www.dailyfx.com/

https://www.fxstreet.com/
http://www.fxempire.com/
For Current Forex Exchange prices: http://www.xe.com/
forex brokers , technicals, scams reviews, & forums : http://www.forexpeacearmy.com/
International Association of Forex Traders! : https://tradersunion.com/

Popular internaional Payment Systems to invest in Forex Trading

NETELLER (Most popular now): http://neteller.com/

SKRILL ( Formerly Moneybookers) : https://www.skrill.com/en/
PERFECTMONEY: https://perfectmoney.is/
WEBMONEY: https://www.wmtransfer.com/
PAYONEER : https://www.payoneer.com/in/
PAYEER: https://payeer.com/en/add/
BITCOIN : https://www.bitcoin.com/
PAYPAL: https://www.paypal.com/
PAYWEB: https://payweb.com/

Forex Trading Software (platforms) supported by all Brokers

1. MT4 - MetaTrader 4 from MetaQuotes
2. MT5 - MetaTrader 5 from MetaQuotes
3. WebTrading platform (Only few of Forex Brokers supports)

Some are the best Forex Brokers