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trading forex





Forex is the name of the biggest market in the world, which deals with trades of international currency. This Forex market functions non-stop during the week, with a pause during the weekend. In most cases, the Forex trading transactions are done by brokers and companies which specialize in this type of financial operation. Individuals can do Forex trading with the help of a Forex broker in most cases. The Forex trading allows sellers and buyers to trade currencies from different countries for one another, in order to make a profit from the fluctuations of the exchange rates. Over two thirds of all the Forex transactions in the world are done by large companies and banks, with individuals and small companies accounting for the rest.


A big part of the Forex trades are speculative in nature, as people are trying to make money from the volatility of these currencies. Their exchange rates can vary from one minute to another, so investors try to trade currencies when they have a low exchange rate and sell them when their price increases. Since there are no goods changing hands, the Forex trading is actually a barter, with currencies being compared to one another in pairs. If you want to sell Euro and you want USD in return, only the exchange rate of the two currencies is relevant for the transaction. Events can influence the exchange rates of currencies, from natural disasters to political decisions or wars. There are many things which can influence the exchange rate of a currency, so a professional Forex trader will spend a lot of time researching trends and learning about the economy of the countries which use the currencies which are traded.


Since the Forex market is global and doesn’t have a certain area where it’s traded, there is a huge amount of currency traded on it on a daily basis. There are trillions of dollars worth of currency traded here, so the liquidity of this market is enormous. It helps that this market uses all the free currencies in the world for its transactions. You can pick any of the many currencies represented on the market and trade with any other currency, as long as there is someone willing to buy or sell for that pair and exchange rate.


Since the market operates non-stop during the working week, even while you sleep, investors will do transactions in other parts of the world, or even in your country if they work during the night.
Small traders have plenty of benefits from the Forex market, including the fact that it changes quickly, so you have new chances of making a profit, as long as you can adapt. Another one is the fact that there is a mechanism in place which is well designed, in order to control how much risk you’re taking. The Forex market also allows you to make money both when a foreign market is falling or rising, so as long as you realize what it’s going to happen, you can profit from it. If you’re a small trader, you also have the option of checking out the many options with a zero commission for trading purposes.
Trading Forex is actually a form of speculation, so there will always be some risk involved. You can take some steps to make sure the risk is minimized, but in the end you are practically placing a bet that a currency will go either up or down, even though it’s usually a well founded and researched bet. Minimizing the risk can be done by having limits to just how much you invest and knowing how much of a loss you’re willing to have when the market goes the other way.
If you want to be as safe as possible when you’re trading Forex, make sure you know what you’re doing. Do the research when you’re deciding on an investment and know exactly why the exchange rate will go up or down in the future. If you know the mechanism which makes the Forex market work, it’s easier to make a profit from this type of trading.
It might take years before you make serious profits with Forex, so don’t think of it as a get rich quick scheme.

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learning currency trading 2





dimanche 5 août 2012

The Components of Trading Well






1. Le processus de négociation. Les choses que vous devez faire sur une
au jour le jour pour être un bon commerçant.
2. Le processus de richesse. Exploration de votre relation avec
l'argent et pourquoi vous voulez ou ne pas avoir assez pour le commerce
avec. Par exemple, la plupart des gens croient qu'ils gagnent

mercredi 8 juin 2011

Bargain Hunting with Price Action - trading forex



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Chapter 6 introduced you to bargain hunting along the edge of price
by using the daily high or low as an entry point within a trend defined
by a moving average. This strategy works well when the high or low
entry zone is near the moving average, but it often breaks down as the
market begins to swing from one trend into another. In this chapter you will
learn a bargain-hunting method that takes advantage of short-term price
swings, regardless of trend. This methodology builds on what you already
know about identifying bargain days and introduces an approach to trading
them that is more responsive to the most recent price action.
This chapter introduces you to an indicator called a Hull moving average.
You’ll learn to use this indicator as a guide to identify bargain days
based on price action. You’ll learn how to manage risk and identify profit
targets using this strategy. Finally, we will walk through several example
trades to solidify your understanding.
I have taught this strategy to traders around the world and I still trade it
myself whenever I see a good bargain opportunity. If I had to pick, bargain
hunting with price action and a Hull moving average is probably my favorite
method to trade the spot currency market.


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lundi 16 mai 2011

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Part I of this book offers a look at the “big picture” in foreign exchange (forex)
trading, that is, what forces influence currency price movements. These forces are
accepted by economists around the world as responsible for changes in the value
of currencies. The person learning to trade forex or trying to improve his or her trading
will benefit from a gain of knowledge of these fundamentals. In fact, as you will see,
fundamental forces act as leading indicators of currency movement.
U.S. and global interest rates, economic growth, and market sentiment toward the
dollar are the key ingredients that shape trading opportunities. Part I provides basic
knowledge on how these factors impact forex prices and how they can be used in selecting
trading opportunities.


The Fundamentals
of Forex

We begin in this chapter with an exploration of the forces that move the prices:
the fundamentals. The reader will learn why fundamentals are important to foreign
exchange (forex) traders as well as what kind of economic activity are
most important in affecting price movements. These include interest rates, interest rate
differentials, economic growth, and sentiment regarding the U.S. dollar.
WHY FUNDAMENTALS ARE IMPORTANT
In many ways, forex trading is similar to playing a game. You have an opponent (the
market). In game of chance the key feature is that everyone faces the same odds
and therefore the same level of information. In these games, no player can change
the odds.
Playing forex, however, is not a game of odds. Participants in forex trading do not
share the same amount of information. In forex, this asymmetry of information results in
advantages and disadvantages to trades. Some players have more information than the
others. In forex, information about fundamental aspects of economies does not arrive
simultaneously to all participants. The real important question is what kind of knowledge
and information can improve trading performance. The search for an edge starts with a
fundamental understanding of the nature of the forex market. Having a foundation of
knowledge in fundamentals is a first step in evolving into a winning trader.


trading forex article:

foreign exchange markets the Fastest-Growing of Our Time




from : trading forex
http://sciencegate.blogspot.com/2011/05/trading-trading-forex-blog-trading.html

mardi 10 mai 2011

Thinking about trading forex




The answers are all in the way you think about it. The irony is that trading can be as much fun and as
effortless as your experience of it has been on occasion; but experiencing these qualities consistently is
a function of your perspective, your beliefs, your attitudes, or your mindset.
Choose the term you are most comfortable with; they all refer to the same thing: Winning and
consistency are states of mind in the same way that happiness, having fun, and satisfaction are states of
mind. Your state of mind is a by-product of your beliefs and attitudes. You can try to create consistency
without having the appropriate beliefs and attitudes, but your results won't be any different than if you
tiy to be happy when you're not having fun. When you're not having fun, it can be very difficult to
change your perspective to one where you, all of a sudden, start enjoying yourself. Of course, the
circumstances of your situation could suddenly shift in a way that causes you to experience joy. But
then your state of mind would be the result of an external shift in conditions, not a result of an internal
shift in your attitude. If you depend on outside conditions and circumstances to make you happy (so
that you always are enjoying yourself), then it is extremely unlikely that you will experience happiness
on a consistent basis.
However, you can greatly increase the possibility of your being happy by developing fun-type attitudes
and, more specifically, by working on neutralizing the beliefs and attitudes that prevent you from
having fun or enjoying yourself. Creating consistent success as a trader works the same way. You can't
rely on the market to make you consistently successful, any more than you can rely on the outside
world to make you consistently happy. People who are truly happy don't have to do anything in order to
be happy.
They are happy people who do things. Traders who are consistently successful are consistent as a
natural expression of who they are. They don't have to try to be consistent; they are consistent. This
may seem like an abstract distinction, but it is vitally important that you understand the difference.
Being consistent is not something you can try to be, because the very act of trying will negate your
intent by mentally taking you out of the opportunity flow, making it less likely that you will win and
more likely you will lose. Your veiy best trades were easy and effortless. You didn't have to try to
make them easy; they were easy. There was no struggle. You saw exactly what you needed to see, and
you acted on what you saw. You were in the moment, a part of the opportunity flow. When you're in
the flow, you don't have to try, because everything you know about the market is available to you.
Nothing is being blocked or hidden from your awareness, and your actions seem effortless because
there's no struggle or resistance. On the other hand, having to try indicates that there is some degree of
resistance or struggle. Otherwise, you would just be doing it and not have to try to be doing it. It also
indicates that you're trying to get what you want from the market. While it seems natural to think this
way, it's a perspective fraught with difficulties.
The best traders stay in the flow because they don't try to get anything from the market; they simply
make themselves available so they can take advantage of whatever the market is offering at any given
moment. There's a huge difference between the two perspectives.
In Chapter 3, I briefly illustrated how our minds are wired to avoid both physical and emotional pain. If
you trade from the perspective of trying to get what you want or what you expect from the markets,
what happens when the market doesn't behave in a way that will fulfill your expectations? Your mental
defense mechanisms kick in to compensate for the difference between what you want and what you're
not getting, so that you don't experience any emotional pain.
Our minds are designed to automatically block threatening information or find a way to obscure that
information, in order to shield us from the emotional discomfort we naturally feel when we don't get
what we want. You won't realize it in the moment, but you will pick and choose information that is
consistent with what you expect, so that you can maintain a pain-free state of mind.
However, in the process of trying to maintain a pain-free state of mind, you also take yourself out of
the opportunity flow and enter the realm of the "could have," the "should have," the "would have," and
the "if only." Everything that you could have, should have, or would have recognized in the moment
appeared invisible, then all becomes painfully evident after the fact, after the opportunity is long gone.
To be consistent, you have to learn to think about trading in such a way that you're no longer
susceptible to conscious or subconscious mental processes that cause you to obscure, block, or pick and
choose information on the basis of what will make you happy, give you what you want, or avoid pain.
The threat of pain generates fear, and fear is the source of 95 percent of the errors you are likely to
make. Certainly, you can't be consistent or experience the flow if you're consistently making errors, and
you will make errors, as long as you're afraid that what you want or what you expect won't happen.
Furthermore, everything you attempt to do as a trader will be a struggle, and it will seem as if you are
struggling against the market or that the market is against you personally. But, the reality is that it's all
taking place inside your mind. The market doesn't perceive the information it makes available; you do.
If there's a struggle, it is you who are struggling against your own TV^^oT*n 11 T-acic^onoo /">r^TiTlir
»l-c anri r^avc
Now, you may be asking yourself, how can I think about trading in such a way that I'm no longer afraid
and, therefore, no longer susceptible to the mental processes that cause me to block, obscure, or pick
and choose information? The answer is: Learn to accept the risk.


Source 


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The safeguards of forex trading

vendredi 6 mai 2011

The dangers of trading forex



It is at the deepest level of our being that the potential for conflict exists.The social structure that we're
born into may or may not be sensitive to these inner-directed needs and interests. For example, you
may have been born into a family of extremely competitive athletes, but feel a passionate interest in
classical music or art. You may even have natural athletic ability, but no real interest in participating in
athletic events. Is there any potential for conflict here?
In a typical family, most members would put a great deal of pressure on you to follow in the footsteps
of your brothers, sisters, or parents. They do everything possible to teach you their ways and how to get
the most out of your athletic ability. They discourage you from seriously pursuing any other interests.
You go along with what they want, because you don't want to be ostracized, but at the same time, doing
what they want you to do just doesn't feel right, although everything you've learned and been taught
argues in favor of becoming an athlete. The problem is, it doesn't feel like who you are.
The conflicts that result from what we're taught about who we're supposed to be and the feeling that
resonates at the deepest levels of our being is not at all uncommon. I would say that many, if not most
people, grow up in a family and cultural environment that gives little, if any, objective, nonjudgmental
support to the unique ways in which we feel compelled to express ourselves. This lack of support is not
simply an absence of encouragement. It can be as deep as the outright denial of some particular way in
which we want to express ourselves. For example, let's look at a common situation: A toddler, who for
the first time in his life, notices "this thing," which we call a vase, on the coffee table. He is curious,
which means there's an inner force that's compelling him to experience this object. In a sense, it's as if
this force creates a vacuum in his mind that has to be filled with the object of his interest. So, he
focuses on the vase, and, with deliberate intent, crawls across the vast expanse of the living room floor
to the coffee table. When he gets there, he reaches up to the edge of the table to pull himself to his feet.
With one hand firmly on the table to maintain his balance, his other hand reaches out to touch this thing
he has never experienced. Just at that moment, he hears a scream from across the room, "NO! DON'T
TOUCH THAT!"
Startled, the child falls back on his butt, and begins to cry. Obviously, this is a very common
occurrence and one that is completely unavoidable. Children have absolutely no concept of how they
can injure themselves or how valuable something like a vase can be. In fact, learning what is safe and
what isn't and the value of things are important lessons the child must learn. However, there are some
extremely important psychological dynamics at work here that have a direct effect on our ability to
create the kind of discipline and focus necessary to trade effectively later in life.
What happens when we're denied the opportunity to express ourselves in the way we want to, or we're
forced to express ourselves in a way that doesn't correspond with the natural selection process?
The experience creates an upset. Being "up-set" implies an imbalance. But what exactly is out of
balance? For something to be out of balance, there has to be something that's in balance or in equal
proportion in the first place. That something is the relative degree of correspondence that exists
between our inner, mental environment and the exterior environment where we experience our lives. In
other words, our needs and desires are generated in our mental environment, and they are fulfilled in
the exterior environment . If these two environments are in correspondence with one another, we're in a
state of inner balance and we feel a sense of satisfaction or happiness. If these environments are not in
correspondence, we experience dissatisfaction, anger, and frustration, or what is commonly referred to
as emotional pain.
Now, why would not getting what we want or being denied the freedom to express ourselves in some
particular way cause us to experience emotional pain? My personal theory is that needs and desires
create mental vacuums. The universe in which we live has a natural tendency to not tolerate a vacuum
and moves to fill it, whenever one exists. (The philosopher Spinoza observed centuries ago that,
"Nature abhors a vacuum.")
Suck the air out of a bottle and your tongue and lips will stick to the mouth of the bottle, because you
have created an imbalance (a vacuum), which now must be filled. What are the dynamics behind the
expression "Necessity is the mother of all invention"? The recognition that a need creates a mental
vacuum that the universe will fill with inspiring thoughts (if your mind is receptive). The thoughts, in
turn, can inspire movement and expression that result in the fulfillment of that need.
In this respect, I think our mental environment works like the universe at large. Once we recognize a
need or desire, we move to fill the vacuum with an experience in the exterior environment. If we are
denied the opportunity to pursue the object of this need or desire, it literally feels as if we are not
whole, or that something is missing, which puts us into a state of imbalance or emotional pain. (Do our
minds also abhor a vacuum, once one has been created?) Take a toy away from a child who is not
finished playing with it (regardless of how good your reasons may be for doing so) and the universal
response will be emotional pain.
By the time we're 18 years old, we've been on Earth approximately 6,570 days. On average, how many
times per day does the typical child hear statements like:
"No, no, you can't do that."
"You can't do it that way. You have to do it this way."
"Not now; let me think about it."
"I'll let you know."
"It can't be done."
"What makes you think you can do it?"
"You have to do it. You have no choice."
These are just a few of the relatively nice ways in which all of us are denied individual expression as
we grow up. Even if we only heard such statements once or twice a day, that still adds up to several
thousand denials by the time we reach adulthood.
I call these lands of experiences "denied impulses" to learn— impulses that are based on an inner need,
originating from the deeper part of our identity, from the natural selection process.
What happens to all of these impulses that have been denied and left unfulfilled? Do they just go away?
They can, if they are reconciled in some way: if we do something, or someone else does something, to
put our mental environment back into balance. What can put our mental environment back into
balance? There are a number of techniques.
The most natural one, especially for a child, is simply to cry. Crying is a natural mechanism (nature's
way) for reconciling these denied, unfulfilled impulses. Scientific researchers have found tears to be
composed of negatively charged ions. If allowed to take its natural course, crying will expel the
negatively charged energy in our minds and bring us back to a state of balance, even though the
original impulse was never fulfilled.
The problem is that, most of the time, events are not allowed to take their natural course and the denied
impulses are never reconciled (at least, not while we're still children). There are many reasons why
adults don't like it when their children (especially boys) cry, and do everything they can to discourage
this behavior. There are just as many reasons why adults will not bother to explain to children why they
are being forced to do something they don't want to do. Even if adults do try, there are no assurances
that they will be effective enough to reconcile the imbalance. What happens if these impulses aren't
reconciled?
They accumulate and usually end up manifesting themselves in any number of addictive and
compulsive behavior patterns. A very loose rule of thumb is: Whatever we believe we were deprived of
as children can easily become addictions in adulthood. For example, many people are addicted to
attention. I am referring to people who will do most anything to draw attention to themselves. The most
common reason for this is that they believe they either didn't get enough attention when they were
young or didn't get it when it was important to them. In any case, the deprivation becomes unresolved
emotional energy that compels them to behave in ways that will satisfy the addiction. What's important
for us to understand about these unreconciled, denied impulses (that exist in all of us) is how they
affect our ability to stay focused and take a disciplined, consistent approach to our trading.


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The shift to technical analysis in forex trader


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