Forex Trading | Currency Exchange | Currency Trading | Foreign Exchange Blog » trade Wed, 20 Apr 2011 04:26:46 +0000 en hourly 1 Is Social Forex Trading Here To Stay! Wed, 20 Apr 2011 04:26:46 +0000 Is Social Forex Trading Here To Stay! post from Forex Trading Blog

Forex vendors of all form and type (brokers, signal providers, blogs, news site et al) have all been marketing themselves aggressively online. However now there seems to be a new social trend in forex as with all other industries. Etoro was among the first to give a serious push in this direction with their social trading platform – which allows new traders to piggyback on the laurels of the more experienced traders. For example there are 10 expert traders who have shown consistent results over a certain time period. Some perform better than others, but have a higher risk profile. As a beginner in forex trading, you need not go through the learning process, but simply choose to copy the trades of one of the 10 experts for a small fee paid to the expert. You make money, the expert makes money and Etoro makes money – everyone is happy. At least that is the vision!

Another early entrant in social forex trading is Currensee. They have a similar system called the Trader Leaders Investment Program. Below is a sample of how the Trade Leaders list looks. There are performance indicators, a risk factor, strategy overview and other useful information based on which a beginner can make his or her decision.

More recently there have been a slew of new players entering the market. These include Myfxbook, Fxstat, Meetfx, Forexdesk and Meetpips. While most of them focus on extensive post trade analysis to improve and refine a traders strategy, fxstat has recently introduced there own form of social forex trading and is running its beta version.

True to history there are other forms of trading such as mirror trading which have been around for longer; their campaigns lacked the community essence at its core. It looks like Facebook has made its mark on the forex market as well.

Is Social Forex Trading Here To Stay! post from Forex Trading Blog

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What is a Mini Forex Account? Thu, 23 Dec 2010 03:37:54 +0000 What is a Mini Forex Account? post from Forex Trading Blog

A miniature currency account is designed for those new to online buying and selling and those with constrained investment capital. Individuals with much less than US$5,000 generally favor miniature info although regular details may be opened up with a minimum of $2000-$5,000. The exact amount ranges from broker to broker.

A partial currency account can be opened up with a minimum of US$300-500 and this figure varies in between brokers.

A mini currency account is meant to introduce traders to the pleasure of currency buying and selling although minimizing risk.

  • A mini currency accounts can be opened up at whenever but a lot of traders practice on a forex demo account initially to test their buying and selling approaches and techniques.
  • Trading measurement is usually 1/tenth the measurement of a normal account. Most brokers possess more compact lot sizes. This lowers the risk related with currency buying and selling.
  • Margin demands differ relying on the brokerage service. The NFA says the margin ought to be no less than 1% of the foundation forex traded. Having said that not all brokers follow these guidelines. Some brokers offer margins as low as US$50 per lot on their minis.
  • Some brokers possess software in their Trade Channels that instantly calculates the expected margin though other individuals by hand set the margin and range it accordingly.

The CFTC is enforcing a 1% margin necessity for registered FCMs and their affiliates that only offer you buying and selling in the Currency Market.

The new NFA rule involves a minimal 1% margin at all time to sustain an open trade. (Observe this may change from time to time so although we use 1% as the illustration at some phase in the future the margin perhaps different. Having said that employing related calculations one can quickly calculate the new margins) Most deal stations mechanically determine this according to the formula and therefore the margin needs are continually varying.

On a mini forex account the place the margin is only US$50 per lot, a dealer with $500 can stand up to a bigger market swing than a investor with a normal account with greater margins but if they have a margin call could lose a lot more capital. A margin phone occurs when the balance of the buying and selling account falls below the expected minimum stability expected. The brokerage service then closes all open up trades. Partial currency details have become quite preferred as quite a few inventory investors are getting situations in the currency market to spread their risk. It will pay to evaluate little currency details at distinct forex brokers to discover the finest charges on in a single day positions and the most aggressive spreads. Pip values range amongst the various forex pairs. Based on a US$ 10K accounts, a 25 pip revenue on a miniature account Euro trade is $25 and because this is a small amount, a mini accounts allows traders to concentrate on technical analysis as an alternative of the revenue and exit at the suitable direct rather than take revenue early. On normal accounts (100K), 25 pips would give US$250 profit.

What is a Mini Forex Account? post from Forex Trading Blog

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Important Elements Of An Effective Forex Trader Thu, 23 Dec 2010 03:05:39 +0000 Important Elements Of An Effective Forex Trader post from Forex Trading Blog

All the overseas trade trading knowledge in the globe is not heading to improve, until you possess the nerve to buy and sell currencies and put your cash at chance. As with the lottery “You gotta be in it to win it”. Have confidence in me when I say that the basic process of hitting the buy or retail key is really tricky to do when your own real income is put at danger.

You should really feel anxiety, even anxiety. Right here lies the moment of truth. Do you possess the braveness to be afraid and act anyway? Once a fireman runs into a burning up building I believe he is afraid but he does it anyway and achieves the desired outcome. Except if you can overcome or acknowledge your anxiety and do it anyway, you could not be a productive investor.

Even so, as soon as you discover to management your anxiety, it will get less complicated and less complicated and in time there is no concern. The opposite reaction can grow to be an problem – you’re overconfident and not centered enough on the chance you’re taking.

Each the inability to initiate commerce, or close up a shedding trade can develop significant mental troubles for a trader heading forward. By calling attention to these likely stumbling blocks beforehand, you can adequately prepare before your first real trade and create great trading habits from day one.

Start out by analyzing on your own. Are you the kind of particular person that can control their feelings and flawlessly perform trades, oftentimes beneath very tense conditions? Are you the form of particular person who’s overconfident and prone to consider a lot more threat than they should? Before your initially real commerce you do glimpse within oneself and get the answers. We can correct any inadequacies prior to they outcome in paralysis (not pulling the set off) or a enormous decline (overconfidence). A massive loss can prematurely end your trading career, or delay your success until you can increase additional capital.

The problem doesn’t end with “pulling the trigger”. In truth which can come subsequent is equally or maybe much more tricky. When you are in the trade the subsequent hurdle is remaining in the trade. When trading overseas trade you exit the commerce as soon as doable once entry when it is not working. Most people who possess been prosperous in non-trading ventures find this principle difficult to implement.

For example, real estate tycoons generate their lot of money riding out the bad times and promoting during the growth periods. The trouble with attempting to adapt a ‘hold on until it will come back again’ tactic in foreign trade is that a lot of the time the currencies are in long-term persistent, directional tendencies and your equity will be wiped out prior to the forex comes again.

The other aspect of the coin is remaining in a trade that is working. The a lot typical pitfall is closing out a profitable position without a legitimate reason. After once more, anxiety is the culprit. Your unconscious demons can be scaring you non-stop with inquiries enjoy “what if news comes out and you wind up with a decline”. The actuality is if news happens out in a forex that is going up, the information has a larger chance of being beneficial than adverse (much more on why that is so in a later article).

One more typical pitfall is closing a successful place because you are bored stiff with it; its not moving. In Football, soon after a super star running back again breaks cost-free for a 50-yard achieve, he arrives out of the sport briefly for a breather. Once he reenters the sport he is a serious threat to acquire much more yards – this is indisputable. So once your position takes a breather after a winning move, the subsequent most likely event is additional gains – so why close it?

If you can be courageous below fireplace and strategically patient, forex trade buying and selling may be for you. If you’re a natural gunslinger and reckless you could need to tone your act down a notch or two and we can assist you make the vital adjustments. If putting your money at risk helps make you a anxious wreck its due to the fact you lack the expertise foundation to be sure in your selection making.

Important Elements Of An Effective Forex Trader post from Forex Trading Blog

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Why the US Dollar Has Not Crashed? Sat, 04 Dec 2010 22:06:47 +0000 Why the US Dollar Has Not Crashed? post from Forex Trading Blog

Considering the budgetary deficit and the trade deficit that US is facing the US dollar should have crashed. This was the projection by many analysts. But, would it?

China, the factory of the world runs huge trade surplus with US. What does China do with all the US dollar that it earns? They are investing in US dollar. When they keep buying US dollar, the US dollar maintains its strength because of demand and supply. A strong dollar makes Chinese products cheaper to US consumers and that is why the US market is flooded with Chinese products. Chinese have invested in technology that has enabled it to produce quality products and US consumers have no complaints.

US and China have developed such a synergy between them in trade that Us needs China to stay alive and China needs US to buy what they produce. If one pulls the rug both would crash. The chances are remote.

US dollar is here to stay. Not to worry.

Why the US Dollar Has Not Crashed? post from Forex Trading Blog

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Watch Out! Currency Traders Sat, 04 Dec 2010 22:06:01 +0000 Watch Out! Currency Traders post from Forex Trading Blog

Economic factors, political conditions and market psychology are the three elements to keep a watch on if one is to be successful.
Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government’s central bank influences the supply and “cost” of money, which is reflected by the level of interest rate).

Government budget deficits or surpluses – The market usually reacts negatively to widening government budget deficits and positively to narrowing budget deficits. The impact is reflected in the value of a country’s currency.

Balance of trade levels and trends – The trade flow between countries illustrates the demand for goods and services, which in turn indicates demand for a country’s currency to conduct trade. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation’s economy. For example, trade deficit may have a negative impact on a nation’s currency.

Inflation levels and trends – Typically a currency will lose value if there is a high level of inflation in the country or if inflation levels are perceived to be rising. This is because inflation erodes purchasing power, thus demand for that particular currency. However, a currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation.

Economic growth and health – Reports such as GDP, employment levels, retail sales, capacity utilization and others, detail the levels of a country’s economic growth and health. Generally, the more healthy and robust a country’s economy, the better its currency will perform, and the more demand for it there will be.

Productivity of an economy – Increasing productivity in an economy should positively influence the value of its currency. Its effects are more prominent if the increase is in the traded sector.
Internal, regional, and international political conditions and events can have a profound effect on currency markets.

Watch Out! Currency Traders post from Forex Trading Blog

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Forex Traders Mental Mindset And Emotional Resolute Sat, 04 Dec 2010 22:04:24 +0000 Forex Traders Mental Mindset And Emotional Resolute post from Forex Trading Blog

The subject of forex and currency exchange often brings out technical analysis and ground breaking forex trading techniques. However, you often forget the part your mind plays in making decisions, more often than not overruling the rationale provided by analytics.

In order to gain an advantage in Forex trading, the skills that you need to acquire are discipline, emotional control, patience, and the right mental attitude toward losing. It is about how you respond to emotions such as pain and pleasure, greed and fear – as and when we make and lose money.

As much as it is about estimating the highest probability of price fluctuations, the lowest entry point and the highest ext point, there is always a risk and a chance of losing. You must accept the consequences of losing or being stopped out in the market. Lacking emotional control will cause you to experience pain whenever your account goes negative and experience pleasure whenever the account goes positive.

As a beginner trade, focus on the process and not the immediate profit or loss. Trade understanding the current economic environment and set goals that are realistic. Not only will this help you achieve goals, but also reduce the chances of loosing you money within the first few trades.

Forex Traders Mental Mindset And Emotional Resolute post from Forex Trading Blog

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Chinese Economy Flexing Its Muscles Sat, 04 Dec 2010 21:59:45 +0000 Chinese Economy Flexing Its Muscles post from Forex Trading Blog

Financial firms lead by those in Hong Kong have over subscribed for the second yuan bond issued in Hong Kong. The $750 million (5 billion yuan) was 10 times over-subscribed. The strong demand is driven by expectations of a further appreciation in the Chinese currency.

A strengthening Chinese economy will increase trade volumes with key partners (especially Australia and Brazil). The AUD is likely to strengthen further against the USD over time, especially with the Australian interest rate being where it is.

Chinese Economy Flexing Its Muscles post from Forex Trading Blog

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