How would you like to be able to potentially make money trading currencies in the Forex markets? Better yet, how would you like to be able to potentially do this within strict risk control parameters? Even better yet, how would you like to potentially do it with a minimum of effort on your part? I'm talking about only10 minutes a week. Well, I am here to tell you a few key principles or secrets to potentially make it happen.
Secret #1
The Forex markets are heavily advertised as being a great way to make money, which is very misleading. The unwary would-be Forex trader is led to believe all she has to do is open a Forex account to gain access to one of the many excellent Forex trading platforms, begin trading and then become rich in no time. So what's the secret? The Forex market is a highly liquid, potentially profitable market to trade, sure enough, but only if you have a winning edge methodology that you can apply to these markets. Without such a methodology, the hapless trader will quickly lose money trading the Forex as they would any market.
Secret #2
The Forex markets are heavily advertised as commission-free. True, but unlike the futures market, entering and exiting positions in the Forex markets is done by buying at the high end of a rather wide bid/ask spread and selling at the low end. So the difference in the spread is your cost of doing business. This cost may be acceptable for swing and long term traders, but may not be acceptable for day traders. So if your goal is to make money, you may not wan to day trade the Forex markets.
Secret #3
While swing trading could be potentially profitable trading the Forex markets, there is potentially greater opportunity trading the long term trends. Currencies have always moved in long sweeping mega-trends that potentially offer low risk entry points and the potential opportunity to ride a long money making trend (sometimes for several months). The following wisdom from legendary stock trader Jesse Livermore is equally applicable to the Forex markets:
"And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets.
I've known many men who were right at exactly the right time, and began buying and selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine — that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance."
Secret #4
Potentially the best way to trade for the longer term is to trade off of the weekly charts, thus avoiding the day-to-day volatility that wreak havoc on one's account or at a minimum shake you out of your position prematurely and potentially missing a big money move altogether. By definition, then, a potential winning edge methodology based on a weekly chart only requires analysis once a week after the futures markets close for the week each Friday. You then simply update your chart, determine the following week's entry, trailing stop loss and profit target orders, which should be placed before the futures market opens on Monday. A clarification is in order here, even though we are trading the Forex market, we can use the weekly futures markets charts for determining exit and entry orders that can then be executed in the Forex market. And these same signals, by the way, are equally executable in the futures markets. It becomes a matter of which market platform you prefer to trade the currencies.
It should be clear from this discussion that there is no magic to trading the Forex or currency futures markets. The magic is in the potential winning edge methodology that you apply to these markets that makes the money.
In the past, online forex trading was limited to only big financial institutions and banks who were the only ones benefiting out of it. But, now due to the availability of the Internet, brokers, individuals, brokerage firms and governments agencies, we can have an access to online forex trading with ease. Internet technology has enabled every one to reap the benefits of online forex trading. Online forex trading is considered as the largest financial market of the world due to the huge volume of business handled everyday.Online forex trading has become very popular due to the ability of the computers to make complex charts which was not possible in the past as people could not afford to access the internet and high powered computers in their homes.Benefits of online forex trading:With the advent of the online forex trading, forex traders can do business round the clock irrespective of the geographical location they have been placed. This is very important in contributing to the growth of the forex trading industry to the extent that the daily transactions have been increased to two trillion USD.Opening of an online forex trading account is very easy as there are many people who can offer this kind service to the trader. But they need to be very sure that they too deal with the same kind of currencies which the trader is interested in. 
There are free practice accounts allowing to test the skills of the trader offered by the provider with the usage of funny money before making transaction with real cash.The traders can trade in different markets with different currencies at the same time without any problems. This is only possible because of online forex trading. This has brought in lot of flexibility and liquidity in online forex trading. The trader is able to trade and access quotes in real time with online forex transactions.Another important benefit of online forex trading is that, it has eliminated the bulls and bears of the trade. We can say that the only trade market without the bulls and bears is the online forex trading market.
The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors.The basic types are a floating exchange rate, where the market dictates the movements of the exchange rate, a pegged float, where the central bank keeps the rate from deviating too far from a target band or value, and the fixed exchange rate, which ties the currency to another currency, mostly more widespread currencies such as the U.S. dollar or the euro.
You can do forex trading while sitting in your home. It requires a PC with Internet connection and a bit of time. You can perform all the transactions online with a small fee and the best thing of forex trading is that you don't have to pay large amounts to professional. Forextrading market offers a large number of online options for currency trading. Before joining it you've to search for the best option to achieve your goals. 
For example, if you think that a certain currency is going to maintain four weeks high standing, buy it. If you have a low-standing currency, you can sell it before the price goes down further. This system is also called breakout wherein all your moves within the Forex market is based on the highs and lows. Soon, you will be able to penetrate the market’s big trends.Big trends usually last for several weeks, months, or even years. Take a look at the Forex chart and study it. The whole system is automatic and the rules are quite objective. This system is also known as a Forex robot and it can operate fifteen minutes everyday. The creator of this Forex robot was Richard Donchian, a Forex trader.If you want a simple system, the Forex robot may work for you. Traders who prefer complex trading systems often expect more from this system and so they would rather opt for another system which can meet their expectations. The Forex robot is not fussy and it can help you in identifying the top picks and the bottom picks.Successful Forex traders spend enough time and effort to make informed trading decisions. As a wise trader, you should not rush things. Allow the system to work. Don’t believe in the myth that complex and expensive systems are more efficient. If you’re serious in Forex trading, you can earn lots of profits with minimal effort.Observe today’s market trends. If you think that the Forex robot will work for you, considering the existing trends in the Forex market, you can use it because it is logical, very simple, and continuously works. the automated trading system can be obtained for free online just case you want to see how it works. If you think that the Forex robot is another junk like all other systems, check its background.
If one considers the weight and scope of the forex exchange and the volume of information one might need to conduct even the most simple of transactions, then it might be a good idea have a comprehensive understanding of the numerous forex resources available to the average and large investor. Forex ResourcesOnline forex resources are abundant and can range from entire forex platforms to articles that offer advice and information. While some might prefer the gut feeling and instinctual business acumen acquired on Wall Street, forex resources are essential for any, successful or unsuccessful, forex transaction. Forex resources must be culled from newspapers, local and national, market reports, and charts and graphs, along with the transactions of other investors considering their own forex resources. In the end, forex resources can be overwhelming and it pays, in large profits, for the forex investor to consider wise and well the extent of the forex resources he or she may wish to consider. When it comes to learning forex trading the fast andeffective manner, you need to learn it via obtaining goodknowledge and adequate skills to read all the importantforeign exchange quotes. This is a great way to learn forex. However, the sole purpose of obtaining a demo forex trading account is to train yourself in this field perfectly.
Ask (Offer) — price of the offer, the price you buy for.Aussie — a Forex slang name for the Australian dollar.Bank Rate — the percentage rate at which central bank of a country lends money to the country's commercial banks.Bid — price of the demand, the price you sell for.Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.Cable — a Forex traders slang word GBP/USD currency pair.Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.Commission — broker commissions for operation handling.CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.
Jobber rarely leaves open positions overnight.Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.Liquidity — the measure of markets which describes relationship between the trading volume and the price change.Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).Margin — money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
Market Order — order to buy or sell a lot for a current market price.Market Price — the current price for which the currency is traded for on the market.Momentum — the measure of the currency's ability to move in the given direction.Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.Offer (Ask) — price of the offer, the price you buy for.Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.Order — order for a broker to buy or sell the currency with a certain rate.Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).Profit (Gain) — positive amount of money gained for closing the position.Principal Value — the initial amount of money of the invested.Realized Profit/Loss — gain/loss for already closed positions.Resistance — price level for which the intensive selling can lead to price increasing (up-trend).Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.
Most people don't do this. If you test something until you can prove and edge, no matter how small it may seem, you just need to trade it over and over to make money.4) Trading that system exactly how you tested it, until you are wealthy.Many traders are always looking for that magic system that will make money fast. The secret to wealth is to stick to the system you have tested and proved and do it until you acumulate wealth. Not chase the latest trading software or system.When you are ready to trade this market, keep these four simple steps in mind and then do not let anything stand in your way of becoming the trader you want to be.
A healthy appetite for risk is essential to succeeding with Forex and so you have to learn how and when to take risks which however must be judiciously taken and which should not deteriorate into starting to gamble in the hope that you will make a major killing. At the very least a person that is averse to taking risks must abstain from doing Forex deals.For those people that do small Forex trades it is not a good idea to branch out because it is in fact necessary that they concentrate and focus on their limited trades instead of trying to expand their dealings without having already tasted success.You can also succeed with Forex by setting yourself realistic targets. The more realistic you are the better are the chances that you will be able to work hard enough to realize your objectives. You should decide to engage you in Forex and then give your all to succeeding and also keep in mind that your targets are not too farfetched or unrealistic.With these tips in mind you should get started with Forex and bear in mind also that to be successful you will need to learn how to focus your efforts on the best trades that should be used with best odds of succeeding. Weigh your options and set realistic targets and then do your best to realize a profit.
Opening of an online forex trading account is very easy as there are many people who can offer this kind service to the trader. But they need to be very sure that they too deal with the same kind of currencies which the trader is interested in. There are free practice accounts allowing to test the skills of the trader offered by the provider with the usage of funny money before making transaction with real cash.The traders can trade in different markets with different currencies at the same time without any problems. This is only possible because of online forex trading. This has brought in lot of flexibility and liquidity in online forex trading. The trader is able to trade and access quotes in real time with online forex transactions.Another important benefit of online forex trading is that, it has eliminated the bulls and bears of the trade. We can say that the only trade market without the bulls and bears is the online forex trading market.
All traders have to face it — you can't turn a donkey into a ferrari. You can't change the strips of a zebra and you can't turn chicken poop into chicken salad. The best trades are usually "right" immediately (the techniques, rules, methods and strategies you can learn in my website will be your best indicator for just what a "right" trade really is).
Foreign currency traders will need all the help that they can get.When you have your forex demo account, and the portability of the software is there, whether you are traveling in the road or just staying in your house, you will have an access to whatever is happening in the currency markets. You will always be updated with the current trading news. forex demo account would be your way to online forex trading system.
From 1997 to the end of 2000, daily forex trading volume surged approximately from US$5 billion to US$1.5 trillion and more (according to various recent studies it has touched $1.7 trillion per day and dwarfs all other markets for trading in size and volume). It is really difficult, if not impossible; to determine an absolutely exact number because trading is not centralized on an exchange. But one thing is for sure that the Forex market continues to grow at a phenomenal rate. 
For those of you who are interested in forex trading, you may want to start off by getting some good forex training. Forex training is a necessity for anyone with this interest. This is because a lot of money is involved in forex trading. If you don't get some forex training, you are bound to lose a lot of money.
The best place to get forex training is from someone who is already involved in forex trading. The forex training these individuals provide will be more realistic for you and give you different aspects of the forex trading game.
Professional expertise is a must. The firm should have good standing in the market and have professionals who have experience in dealing in foreign exchange accounts. Most foreign banks and transnational firms employ the best and have constantly out performed others. It's not necessary that your forex account manager should be a Harvard Grad but in most cases it, they are better trained.
Another important part of your forex trading education is to learn how to open and manage your forex trading account. Your forex trading education should first have you practice with a demo account. This way you learn the ropes by practicing forex trades with play money. There is no risk involved, but it is just as realistic as the real thing. Your forex trading education should also let you know when you are ready for the real thing. You should then, and only then, open up a live forex trading account.
Trading in a foreign exchange market helps the buyer and seller to come up with good foreign currencies and profits for the currencies. Sometimes, the foreign exchange market may finds fluctuations for the foreign currencies listed with respect to political and economic condition of the foreign currency in the market.The main reason for the establishment of foreign exchange market is to have a uniform rate for the currency listed in the market. Foreign exchange is very similar to stock market, but the difference is that, here in the foreign exchange the exchange takes place with respect to the currencies. Though foreign exchange fetches the good demand in the market, the currency prices also finds fluctuation in the market. With more number of customers and traders, foreign exchange serves the purpose for which it is established and offer better opportunity to come up with different and more number of foreign currencies as per their requirement.
