Forex Trading

So what is is Forex trading you may ask? Forex is the exchange you can buy and sell currencies. For example, you might buy British pounds (by exchanging them to the dollars you had), then, after pounds / dollar ratio goes up, you sell pounds and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning. The Forex market has much higher liquidity, then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planet and as a result it means 24 hour trading. Unlike stocks, Forex trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-Forex, where...

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My Experiences Of Trading Forex And Stocks Using Long Term Charts

To some extent trading the forex markets using long term charts (such as the daily and weekly charts) is a lot easier than trading the short term charts (such as the 1 and 5 minute charts). Indeed that's why my core trading system, ie my main 4 hour trading system (see right for more details), is based on the 4 hour and daily charts. However when you are comparing long term forex trading to long term share trading, there is only one winner for me - share trading. There is one thing you have in your favour when trading good quality stocks, and that's the fact that the share price should continue heading higher as long as the company is growing it's earnings every year (and ideally it's dividends as well). So all you have to do is find those stocks that have shown consistent earnings growth...

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Weekly Trading Update - 07-11 November 2011

There were no trades for me again this week, and I've actually decided to stop trading forex for the time being. My 4 hour trading system just doesn't generate as many trades as it used to, and with the markets drifting aimlessly with all the uncertainty that's around right now, I think it's best to just sit on the sidelines. Even if market conditions do change and we start to see a lot more volatility, it will be only last for a few weeks anyway because we have the Christmas and New Year holidays just around the corner, and the markets are always very quiet and impossible to trade at that time of the year. Anyway I shall still be trading stocks, as this is what I love doing more than anything else, and I have this website and a few others to keep me busy, but there probably won't be any...

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IG Index Reduces Spreads On Forex Pairs

IG Index have brought good news to a lot of forex traders this week with the announcement that they are cutting spreads on many different currency pairs once more. They were already really competitive, but now you will be hard pushed to find a spread betting firm or forex broker that offers tighter spreads. For example the dealing spreads for the EUR/USD and USD/JPY pairs start at 0.8 pips, whilst the spread for the GBP/USD and EUR/GBP pairs start at 1 pip. This is a big improvement because I've used IG Index to trade these pairs with a spread of 2 or 3 pips in the past. The only downside is that these low spreads are not fixed at this level all the time. For example I've just spent the last minute watching the GBP/USD spread, and although the spread often stays at 1 pip with every tick,...

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How To Predict 5 Day Trends (With Updated Performance Results)

A while ago I posted a link to a video that Bill Poulos created which revealed how his trade alert software was able to detect (and profit from) 5 day trends for the major currency pairs. Well he has recently updated this video and demonstrated how his Forex Profit Accelerator software has performed since then. As you may know, the markets have been very difficult to trade in recent months, but this trade alert software seems to have performed very well trading the end of day charts, as you can see in this new video. The overall profits were $32,000, and you can see how he did this by clicking here and watching the free vid...

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Forex Avenue: The Road to Riches

In my continuing quest to provide visitors of my site with a large amount of options to chose from when considering working from home I have done some research on Forex trading. I first learned of Forex trading while pursuing my MBA program. For those of you who have never heard of this, Forex trading is the exchange of foreign currency. I know I would have never even know this was an option for making money had I not found out in class. Most of the really big corporations have departments of people that do this for a living because it can be very lucrative if done correctly. The best news I have learned about this process of exchanging currencies is that many of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money into...

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Why Trade the FOREX?

My purpose for writing this article is to demonstrate to you the advantages of trading on the Forex market. However, there is one myth that I want to dispel before I go further. The myth is that there is a difference between trading and investing. To dispel that myth I quote from Al Thomas, President of Williamsburg Investment Company, who wrote "If It Doesn't Go Up, Don't Buy It". He said "Everyone who invests is a trader, only the time period is different." It is a lesson that I took seriously after taking a beating in the stock market in 2000. So now, let's compare features of currency trading to those of stock and commodity trading. Liquidity — The Forex market is the most liquid financial market in the world around 1.9 trillion dollars traded everyday. The commodities market trades...

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