Thursday, August 25, 2016

currencyThe Currency Trading Experts...

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One of the largest markets today is also one of the least known among ordinary people, and this is currency trading. This kind of trading is the simply the act of buying and selling different currencies. Many investors are engaging in this trading, recognizing that with the proper knowledge and trading, the foreign exchange market can be very promising.

Currency Trading – Getting Started

Currency TradingTo be able to start investing in foreign currencies, the first thing you need to know is what happens during currency trading and how you can earn from it. First, you need to choose which currency you will sell and which one you will buy. With this choice, keep in mind that what you are actually doing is speculating that the value of the currency bought will increase versus the currency sold.

For example, the current exchange rate for a US dollar is 0.75 Euros, which means that you can buy 0.75 Euros with 1 USD. What happens is you hold on to your 0.75 Euros until the Euro appreciates with respect to the US dollar. If, let’s say, the original exchange rate changes so that you can now buy 0.7 Euros with 1 USD, then you can actually trade back your 0.75 Euros for 1.0714 USD. So your original money of 1 USD is now 1.0714 USD, which means you earn 0.0714 USD for every 1 USD.

From the above example, trading in the foreign exchange market seems simple enough. However, you must realize that there are more than two currencies at play in the foreign exchange market and making speculations about how a particular currency would perform versus all the other different currencies is not so easy.

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Creating a Currency Trading System

Many people who engage in currency trading have their own system or method for trading. Many suggest doing a currency trading trial before actually investing using your real money. Some even recommend continuing with a trial for months to ensure a greater chance of success.

Profitable Forex Chart Patterns Part 2

Chartists have long held the belief that patterns can predict future price movement. These assumptions are largely based on the interpretative analysis of the trader or technician that happens to be looking at it. Often times, two traders can be looking at the same chart and have two entirely different opinions. It’s this sort of […]

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Profitable Forex Chart Patterns Part 1

Successful forex traders use a variety of methods in which to base their directional bias before placing a trade. Chart formations, or patterns, have been used as a foundational basis for many trading systems dating back to the ancient Japanese rice traders who would use hand drawn candlestick charts as a way of interpreting supply […]

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Forex Trading Online

For investors and traders, the internet has created an environment that allows anyone to participate in forex trading online. What makes this so different from other markets is the fact that currency trading, despite it’s huge global volume was only available to huge banks and international monetary funds who had the ability and capital to […]

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The Importance of Having A Trading Plan

Achieving success in any business venture can be a difficult and challenging task. I recently read in a business review journal that most small business’s fail because they are undercapitalized. Which means, in very simplistic terms, that they ran out of money before the company’s profits could cash-flow the  company’s operating expenses. Now, let’s think […]

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Money Management… The Secret To Successful Trading

The trading public, the new aspiring currency trading person, and the curious observer of the forex all seem to think that the secret to creating wealth in the markets is to have some sort of magic indicator or system that few people know about. It’s this kind of thinking that keeps the trading system gurus […]

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Trader’s Guide To Identifying A Good Trading System

A good trading system is invaluable to the professional trader and should be an integral part of any trading plan. A good system provides an objective, statistically logical and responsible way to speculate in the forex markets. They are always rule based and they can be automated (like a robot) or they can be used […]

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How To Never Have a Bad Trade

Wow, seems like an awfully bold statement doesn’t it? We’ve heard time and time again that the Holy Grail System is a fantasy, that perfection only exists in the outrageous claims of currency trading charlatans with promises of easy profits if you’ll just buy their system! I can assure you, that in my trading career, […]

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What are Forex Trading Systems?

Technical trading systems are used by currency traders to provide clear entries and exits for trades based on a set of rules. By adhering to a very specific set of rules that govern your trading decisions, you have the foundation in place for most robust forex trading systems. In previous articles we discussed the differences […]

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Why Do Currency Traders Need Forex Brokers

Light years ago, in a galaxy far, far away…. financial institutions, banks and international monetary funds were the only participants in the trading of foreign exchange instruments. Thats a fancy way of saying forex! Forex brokers at the retail level did not exist because these institutions monopolized the foreign exchange due to their abilities to […]

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Understanding Forex Charts

For a currency trader, nothing creates a better or more valuable picture of price data then a price chart. This visual representation is the primary tool used by traders to develop directional opinions and to forecast future movements in price. Understanding forex charts and how to use them properly is an important step in the […]

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