FOREX: What Is It And How Does It Work?

The Foreign Exchange market, also referred to as the "Forex" is the biggest and largest financial market in the world. It has a daily average turnover of US$1.9 trillion- just imagine that amount of money! Don't you want to join this trillion-dollar industry?

Forex is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So basically, Forex is trading.

There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.

The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the market.

On one side of each speculative stock trade is a participant who believes he has superior information and on the other side is another participant who believes his information is superior.

For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid- meaning its in cash or convertible to cash) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors.

A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur — real time- day or night.

The Forex market is considered an Over The Counter (OTC) or 'interbank' market. This is because the transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange compared to stocks and futures markets.

Understanding Forex quotes

Reading a Forex quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.

The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.

When trading Forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).

by Frederic Madore

Internet Marketing VS Forex Currency Trading

Have you noticed that when someone's trying to sell you something — such as a system for making money — they always make it look far easier than it is?

Let's look at two Internet businesses, almost as diametrically opposed as it's possible to be — Internet Marketing and Forex Currency Trading.

You've probably heard the old Internet adage — build a better website and they will come. Well it ain't true!

You could put up a site advertising dollars for a dime and they still wouldn't come — because they wouldn't know where to look!

Let's look at what you need to have in place in order to build a successful Internet marketing business.

First of all, you need a product. If you've been reading the recent Internet marketing blurb you'll know you need a niche product.

Actually, the new thing is sub-niche but whatever they call it, you need a product for which there is high demand but low supply.

Finding a suitable niche is the hardest part of the whole process but let's say you have a killer product, what else do you need?

The List.

Ask any Internet marketeer and they will say that the most important part of your business is your opt-in list.

For people to join your list you usually have to give them something of value such as a free eBook or report on a subject related to your main product line.

To keep them interested, you need to keep in touch with them offering them additional information, advice and tips.

Website.

To promote your opt-in list you need a website (although there are other ways of promoting your list, too) with features that will encourage people to sign up to your list.

You also need a killer website with killer copy to describe — and sell — your killer product. This may or may not be the same as the one you use for your opt-in list.

Killer copy.

Maybe you're not a good copywriter. There are many eBooks on the subject that can help you or you can pay someone to write copy for you.

You need a domain name, preferably one with some relation to the product but good domain names are becoming increasing difficult to find.

Ads.

To get people to visit your website in the first place you need to register it with the search engines.

SEO (Search Engine Optimisation) is an art in itself. You can mug up on the subject or pay someone to do the job for you (but be aware that not all experts are!).

You might also want to place ads for your list in newsletters and ezines. The better ones will charge you although you might get a free ad in return for an article.

Autoresponder.

To automate your business you need an autoresponder. These clever devices automatically send emails to everyone on your opt-in list at predetermined intervals, and contain predetermined copy.

For example, you could create a series of emails containing, say, five parts of a free course to be sent one a day over the first five days.

Then emails would be sent once a week advertising a different product each time.

Whenever anyone signs up to your list they automatically start at the beginning so everyone gets the full cycle of marketing material.

We haven't even looked at affiliate sales and marketing but I'm sure you get the picture.

The basic idea of selling over the Internet sounds good but there's a lot more to it than most people realise.

Forex Currency Trading

Someone said that trading is the last frontier, the last place where men and women can stand up and pit themselves against the world.

It sounds very Wild Westish but most of it is true! You win or lose entirely by your own efforts and if you win, it's like having your very own bank.

However, even owning a bank is a business and you still have to work hard to put the money there — and to keep it!

Unlike Internet marketing where all your efforts, in one form or another, are geared towards making people join your list and then selling them stuff,

Currency Trading has no customers. That's worth repeating — with currency trading, you don't need customers.

No customers means you don't need any of the associated accoutrements that go with Internet marketing such as: 

Products 
Web site 
Domain name 
Opt-in list 
Ads 
eBooks and reports 
Autoresponder 
Any other marketing aids

So far so good, but what do you have to do and what do you need? Well, you need to know what currency prices are doing.

You can get a list of prices at the close of each trading day free from many web sites. If you want to trade during the day — intraday trading, you can get real-time prices for a nominal fee from several data suppliers.

In the foreign exchange currency market, commonly called forex, you can get this data and charting software free from many web sites.

Okay, that's the easy bit. In order to trade currencies, you need to analyse the data and determine which way price is heading.

In other words you need a system and this will require study and dedication.

There's lots of other stuff you have to know, too — trading terminology, margin, leverage, money management, order types, trader psychology and more.

But all of this is available in eBooks and courses and on the Net.

You also need some money upfront to fund your trading account. With forex you can begin with as little as $300-500 although you would be advised to start with more.

So while you don't have the ongoing quest for new customers, new products and inventive sales techniques, you do need some sort of education or training before you begin and you need discipline while you're trading.

For more information on getting started with forex currency trading, go to: www.webkept.com

Making money takes work whether it's online or off. Make sure you know what's involved before you start and remember that the more you put into a business, the easier it gets.

by Amin Sadak

http://www.webkept.com

admin@webkept.com

Forex Market Trading Hours

The Forex market has a huge advantage over the other investment markets - it's open 24 hours a day, six days a week. Whereas the commodities and stock market operates five days a week (Monday through Friday) during normal business hours, the Forex market continues its activity around the clock. If you want to trade at 2:00 am EST Monday morning, feel free to place your trade. If you would like to invest at 9:00 pm Thursday night when you have the time to concentrate on the market, simply place your trade on one of the many online Forex trading systems. However, even though the market is considered a 24-hour market, it's important to know when the market is actually active and when is the best time to place a trade on the market.

Actual operating hours

Even though the Forex market is open 24 hours a day, each financial center (i.e. New York, London, Frankfort, Tokyo, and Australia) has its own operating hours, which are usually from 8:00 am - 4:00 pm, local time. That means if it's 8:00 am (Tokyo time) on Monday morning, the Tokyo market will be open for trading even though it's 10:00 pm EST, on Sunday night. You could therefore take advantage of trading on the Forex market late Sunday night from your New York apartment.

Overlapping of hours

With so many financial centers around the globe, you will have times when two or more markets overlap. For instance, the New York and London markets overlap from 8:00 am to 12:00 pm EST, while the London and Tokyo markets overlap from 3:00 am to 4:00 am EST. The Sydney and Tokyo markets also overlap from 7:00 pm - 2:00 am EST. These overlapping periods are the best time to trade since volume (liquidity) is at it's greatest.

Other good times to trade

Besides the overlapping periods, it's best to trade at the following times:

• During the middle of the week (shows most movement)
• During trading hours of the three largest markets - London, New York, and Tokyo.

Times to avoid

It's best to avoid the following times/days:

• Sundays (limited volume)
• Fridays (unpredictable)
• Holidays (limited volume)
• Release of economic reports (volatility)
• 4:00 pm - 6:00 pm EST (low market volume).

by Harman Gilly

Online Forex trading system platforms provide investors the chance ot invest in the largest investment market around.

Forex Traders Need To Know About Crossing Currency

Why did the currency cross the road? No this has nothing to do with the term crossing currency

Crossing currency on the Forex is one of the most profitable ways to earn money for many investors. The Forex is unlike any other type of market in the world. The foreign exchange market is extremely liquid and involves over two trillion dollars everyday. The top three currencies that are most traded on the Forex are the US dollar, the Japanese yen and the Euro. All of these currencies are traded the most out of all other forms of currency.

With the foreign exchange currency being so large, it is very liquid. Crossing currency using the Forex allows a large amount of flexibility for the trader and investor. The Forex gives the trade the ability to buy and sell currency quickly so that they are never stuck in any investment. When investors use online trading as their form of crossing currency, the trading platform can be pre-set to the preferences of the trader. If the trade is not going as expected, the platform can be set to stop the trade, allowing the trader to lose less money while using the Forex.

Learning to trade on the foreign exchange, also called the Forex, market can be both exciting and profitable. In order to trade successfully on the Forex it is essential to understand the way the market works, the terminology and the trends. Brokers and financial institutions are often the best way for traders to learn how to use the Forex for profit.

When an investor or individual wants to trade one type of currency for another, it is called exchanging currency, or crossing currency. Currency crossing is the main goal of trading on the Forex. For example, if a business or investor has US dollars and needs to trade those into Japanese yens, a broker would do this on the Forex. Many investors trade currency to make a profit. When a certain type of currency is bought at a low exchange rate, the currency can be sold once the rate increases to turn a profit.

Learning to cross currency in the Forex can be complicated. The biggest factor in trading on the Forex is having knowledge about the Forex and how it works. In addition, there are many benefits of using the Forex for trading. Crossing currency gives traders the leverage to make large profits while keeping the risk of losing capital to a minimum. In ideal conditions, an investor that puts in $500 could potentially make over $100,000.

Crossing currency also allows traders and investors to profit in rising and falling markets. This is another difference between the stock market and the foreign exchange market. With the stock market, an investor can only make money when the shares are on the rise. When there is a falling "bear" market or the stocks decline, investors cannot make money on the stock market. When crossing currency in the Forex, this is not true. This is one appealing factor of trading on the Forex. Investors can make large amounts of profits when a currency pair is either up or down. Crossing currency in the right direction can always make profits.

Another benefit of using the Forex for currency crossing, or trading is that the Forex is always open. When investing the in the stock market, the trading is limited to when the market is open. It has a definite closing time during the business week. This is not true of the foreign exchange currency. The Forex is open all the time and does not close. Traders benefit from the ability to trade twenty-four hours a day using the Internet.

Learning to trade on the Forex can be easy when new investors go through an experienced broker or financial institution. Also, there are many ways to learn how to trade on the Forex using free demo accounts available on the Internet. These websites offer valuable resources and free ways for the new investor to practice using the Forex. This is very important for those who want to learn the ins and outs of crossing currency before opening an actual account. Mini Forex accounts are also a good way for the new investor to trade currency without having the risk of a regular account. A mini account allows traders to use a smaller amount of money as their initial investment.

by David Mclauchlan

Picking the Best Forex Trading Program

By: Caterina Christakos

Statistics have shown that 90% of new Forex investors fail, 5% break even, and 5% attain profits from trading. The main reason why so many investors fail is they do not have the proper tools needed to succeed in trading. While investing through a broker or trading program does not guarantee success, it greatly improves your chances, especially as a new investor.

Perhaps one of the main reasons the percentages of failure in the Forex market are so high is because new investors attempt to invest without any help. It takes years of practice to gain enough knowledge to be able to accurately read the signs and indicators that the market gives off.

Another potential reason why new investors fail is because they fail to realize that the market is open 24 hours a day. The market follows countries all over the world including the United States, Asia, and Europe. If you are located in the United States, the market in Asia is open and running. This gives the potential of the market changing while you sleep, leaving you unable to update your portfolio as needed for success.

A key to becoming a successful Forex trader is finding tools and services that aide you in making informed decisions. The internet allows investors to access an almost unlimited amount of information Whether it is a program, chart, or article, successful Forex traders rely on any reliable tools they can get their hands on.

Training Tutorials- Several types of online training tutorials are available for little or no cost. Typical training tutorials take you from the very basics to the more advanced portions of Forex trading. By reading, studying, and following the training programs as instruction, you gain knowledge and experience in the Forex market, which will help you make informed decisions later.

Simulated Trading- Simulated trading programs allow you to work within the actual Forex market without the risk of loosing your hard earned money in the process. Most simulated programs work in real time, allowing you to learn about the real market. Simulated programs often use paper money and work exactly the same as a real trade service. By gaining and losing as you would in the real market, you gain real world experience.

Statistic Analyzers- Programs are available that actually analyze information for you. When you are new to investing, the statistics and information may seem to be in gibberish. Statistic analyzers take the information and make it readable by even the newest investor.

Real Online Trading Programs- If you prefer to trade without the pressure of learning the trade, you may consider an online trading program. Online trading programs allow you to determine your settings, then the program controls your portfolio for you. Since programs do not rely on human emotion, profits are easily obtainable.

Whichever program that you choose to trade with, make sure that it has a proven track record and that it is a program that you will stick with. Trade based on a proven program not on emotion.

Read more: http://www.articlesbase.com/finance-articles/picking-the-best-forex-trading-program-78621.html#ixzz13mV51nz8 
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Real Time Foreign Exchange Quotes - Tips for Foreign Exchange Trading Rookies Read more: http://www.articlesbase.com/currency-trading-articles/real-time-foreign-exchange-quotes-tips-for-foreign-exchange-trading-rookies-2327508.html#ixzz13mTcd9o9 Under Creative Commons License: Attribution

By: Forex Advisor

Real Time Foreign Exchange Quotes

Have you thought of starting a new career not bound by an eight hour job in the office? Work-at-home job is steadily gaining momentum and popularity among adventure-seekers.

Aside from becoming web-content writers or typists, trading foreign exchange (FOREX) currencies can be a bankable endeavor for you. Although, this needs practice, vision money and analysis of the goings-on in countries with currencies you choose to trade. You may lose money at first but constant monitoring of the on-going trading and events will help you become a trading expert. Real Time Foreign Exchange Quotes

The foreign exchange market was not open to the public before until after 1998. Only big multinational corporations, banks and major currency dealers were able to enjoy the excitement and benefits of the foreign exchange market at that time. But now, private individuals can have the chance to do trading.

The foreign exchange market is the largest financial market in the world with an average yielding of $1.9 trillion daily, an amount 30 times higher than the total volume of equity trades in the United States. Real Time Foreign Exchange Quotes

As starters in this arena, you may want to be first informed of how and where to get a foreign exchange quote. But of course, you must learn too how to read the quotes.

Forex quotes always come in pairs, example USD/JPY 109.2. The base currency is the first listed currency (USD) with a constant value of 1 unit; while the counter currency is the second listed currency (JPY). The quote means only one thing that the United States Dollar (USD) is equal to the 109.2 Japanese Yen (JPY). If the USD/JPY quote increases, then the value of the USD went up as well.

How to start trading? You can start trading either online or trading directly without the brokers process.

Online Trading

o There are a lot of online or web based brokers to choose from depending on your requirements as trader.

o For starters like you, choose a broker that can provide numerous options like:

- free trading accounts so that you can get a feel first of the trading process and work on a dummy money yet before experiencing the real thing;

- online articles that include tips on how to trade easy;

- provide familiar platforms and low spreads, and;

- support a 24-hour live chat. Real Time Foreign Exchange Quotes

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Currency Trading Software: Critical Performance Warranties!

By: Steve benedictCurrency Trading Software: Critical Performance Warranties

The crucial element I hunt for when counseling individuals about forex software programs is  a money back guarantee. With the amount of Fx currency trading software models proliferating the Internet, it really is tough for you to isolate any hype from reliable information. In a earlier page, I warned about the diverse hoaxes which abound online. With this article, I would like to look over Fx trading program warranties.

Believe in a Product That You've Personally Not Examined?

Numerous Forex currency trading software products may make many claims to get you to believe in their program. Absolutely nothing is improper with that. I'm proud of programs I've built, too, and I do not hesitate to extoll their particular benefits and virtues. Nevertheless, any time the software designer is seeking to convince everyone of some great benefits of his program, he ought to be ready to assure your ultimate satisfaction. You will be placing your belief in an internet product or service you have never seen. You need to be in position to have some satisfaction that this forex product will work as marketed.

Cash Back Guarantee!

Any time you purchase currency trading software programs, you've got right to a guarantee. You should check out the offer and get a guarantee that would refund your hard earned money, in full, no questions asked. There's usually a specific period of time that's enough to try out the software and consider whether the advertising and marketing meets the expectations. If you find yourself dissatisfied while using forex trading computer software in the 30 or 60 day time frame set out, you need to be able to get yourself a no-hassle full refund.

Customer Service Satisfaction.

During the time period regarding system use tryout, there ought to be included things like a customer assistance assurance. I've seen programs that would almost certainly work out alright. The thing is their customer care contacts tend to be poor and don't resolve your queries well. You ought to gain access to full time assistance, day or night, since the Fx markets do business throughout the world while in the numerous time zones. I also like a company that offers a newsletter brought to you regularly, so you can identify currency trading opportunities and plan for them.

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The Future of Forex Trading

By: Pat_Mar The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The trade happening in the forex markets across the globe currently exceeds $1.9 trillion/day (on average). After the advent of Internet into comman mans home had made it easier for retail traders to trade in the foreign exchange market.

The 2004 BIS survey shows a surge in traditional foreign exchange trading. This seems to have been driven by momentum trading and carry trades in a global search for yield on the part of institutional investors and leveraged players as well as by hedging activity.

A major catalyst to the acceleration of Forex trading was the rapid development of the Eurodollar market; where US dollars are deposited in banks outside the US. Similarly, Euromarkets are those where assets are deposited outside the currency of origin. The

Eurodollar market first came into being in the 1950s when Russia's oil revenue-- all in dollars -- was deposited outside the US in fear of being frozen by US regulators. That gave rise to a vast offshore pool of dollars outside the control of US authorities. The US government imposed laws to restrict dollar lending to foreigners. Euromarkets were particularly attractive because they had far less regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euromarkets a beneficial center for holding excess liquidity, providing short-term loans and financing imports and exports.

The recent technology advancement has broken down the barriers that used to stand between retail clients of FX market and the inter-bank market. The online forex trading revolution was originated in the late 90's, which opened its doors to retail clients by connecting the market makers to the end users. With the high-speed Internet access and powerful central processing unit, the online trading platform at home user's personal computer now serves as a gateway to the liquid FX market. Retail clients can now trade

together with the biggest banks in the world, with similar pricing and execution. What used to be a game dominated and controlled by major inter-banks is becoming a common field where individuals can take the same opportunities as big banks do.

Online forex trading market has changed in the last few years by allowing any type of investor to place money using brokerage firm's margin accounts. It is currently the largest trading market in the world and can only do your money good. The trade happening in the ForEx markets across the globe currently exceeds $1.9 trillion/day (on average). Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems, such as EBS, Reuters Dealing 3000 Matching (D2), the Chicago Mercantile Exchange, Bloomberg and TradeBook(R). The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

The inter-bank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account. But retail trader is also a major player in this market.

The Forex market differs from other financial markets in that it has no central location or exchange. It is instead a global electronic network of banks and traders that trade one currency for another in every major financial center in the world. The result is a 24/hour a

day market! The Forex market is the newest market in the world. The Forex market has an average daily volume of $1.9 trillion per day, making it 150 times larger than the New York Stock Exchange!

Internet, Wi-Fi is going to revolutionize the market. You can buy sell currencies on the go. Using all tiny carry along gadgets like mobile, PDA, eNotebooks etc. This has its own good and bad effects. The SPURT in you can empty your pockets in minutes. When

you are on a high after a bash and you hit the wrong button you lose your hard earned money.

Internet-based trading of currencies currently only accounts for about 5% of total. Forecasts say that there is a strong growth in this area. Major online foreign exchange markets and top electronic FX trading systems, including the following are poised to grow at a rapid pace.

Atriax

FX Alliance

FX Connect

Currenex

Matchbook FX

EBS

Reuters 2000

Major advances in technology, especially in online trading platforms, are not only helping to ease foreign exchange trading, but also allowing access to the market in ways never available before. Although online equity trading has grown significantly in the last three years, Internet-based foreign exchange trading has been far slow to develop. Major foreign exchange players are becoming aware that not only can they improve trading services for clients with Internet-based systems, they can also save significant time and money in transactional efficiency gains.

With steady growth of the FX markets and the increasing adoption of E-FX among the market participants, algorithmic trading is emerging as the next level of trading technology for market participants to contend with. Although there is much confusion about the technique, most market participants seem to agree that it will be used increasingly frequently. According to financial consultancy Celent estimates, by 2008 up to 25% of all trades by volume will be executed using algorithm, up from about 22% in 2006. It estimates that 60 percent of inter-dealer trading today is done on electronic platforms. The dealer-client market is less electronic, at 43 percent. They predict that electronic trading will grow to 90 percent in the inter-dealer market, and 70 percent in the dealer-to-client market, by 2007.

More Money, More Platforms this is what is going to happen. Yes its true. The electronic trading platforms in the inter-dealer cash forex market operate in an environment different from that of the dealer-to-client platforms. The inter-dealer market is well served by two strong platforms with complementary currency pair strengths, while the dealer-to-client market is more fractured, with five specialized platforms and one very recent entrant. In Future we can expect more of them as the global economic scenario is changing at rapid pace.

It is predicted that all these platforms will become more liquid in the future as adoption of electronic trading continues to increase. Each dealer-to-client platform (with the exception of FXAll) is targeting a specific type of customer within the buy-side, so there is not as much head-to-head competition as in other markets, such as equities. FXConnect is uniquely positioned to serve asset managers, Hotspot has specialized in serving hedge funds and CTAs, and 360T has dominated among Central European corporate treasurers. 

For these reasons, it is believed that there is room for all the existing platforms and new platforms in this market. The changes taking place in the foreign exchange market and advances in Internet-based marketplace technologies have converged to create a new breed of foreign exchange trading. This new phase will forever change the foreign exchange market and will eventually lead to a truly transparent, liquid market. However, this transformation will not take place overnight. It is expected that it will be at least four years before even half of FX trading moves to the Internet.

The changes that are going to take place in this market are definitely going to show their impact on the society. This might not be true with developing societies but it could be true with the developed societies - cash rich and always looking at thrills. Your gains or loses change in seconds thus testing your nerves and discipline. A small blink or spurt can change your future from good to bad. This free for all access to the market can cause dangerous implications to the future society. What we need to do to avoid the downfall.

Discipline. That's easy to say and much easier to practice in other markets. Forex makes it tougher because it's always open, and big moves are always happening. It's one of the reasons why an automated system is so valuable in ForEx. Even if you forego automation, you need to develop a script for trading that you can always follow. Consistency is the key, and your ability to stay consistent will surely be challenged.

Learn all you can, build a system, and practice trading before you risk a dollar. The early losses that come from a rush to trading can damage confidence, and that can be difficult to repair. The markets are going nowhere – if you take the time to learn and then consistently apply your knowledge to this huge market your rewards will surely follow.

Keep these facts in mind...

~95 % of all the traders in ForEx are loosing money.

~If you don't have spare money which you can aford to loose - just stay out of it.

~If you think that this is the place which can make you rich and can solve all your problems - just forget it.

~But if you insist of learning this thing So go on and learn it.

~There are many schools for that Take your time and learn it as good as you can - and after that if you feel that you can trade do so

~Trade on a Demo platform like http://www.pip-forex.com/default.asp?trc=ema-00109-001 and keep thinking that it is real money after that if you think that you are good at that - so - go and open an account not more than 1000$ deposit.

~Another rule don't ever never take leverage more than 50 times on your money.

~Don't ever never trade on more than 10 % of your account.

As said the market is huge is there is place for everyone. A disciplined approach to trading will give you benefits. The Foreign Exchange Market is an over-the-counter (OTC) market, which means that there is no central exchange and clearing house where orders are matched. 

Technology breakthrough not only changed the accessibility of the FX market, they also changed the way of how trading decisions were made. Research showed that, as opposed to unable to find profitable trading methodologies, the primary reason for failure as a speculator is a lack of discipline devoted to successful trading and risk management. The development of iron discipline is among the most challenging endeavors to which a reader can aspire. With the help of modern trading or charting software, traders can now develop trading systems that are comprehensive, with detailed trading plans including rules of entry, exit, and risk management model. Furthermore, traders can do back testing and forward testing of a particular strategy on a demo account before commitment of capital.

So retail trader has every change to gain from this market provided he follows the traits that are mentioned in this article.

The purpose of this article.

The main purpose of this article is to guide you through some important aspects of Forex trading. To guide you to the best methods and practices in the trade. It is a high risk trade and highest levels of discipline are a must in order to start trading. Hope this article will 

help you in understanding the in and out of the trade.

Remember that only 5% will actually make it - but the reason for that isn’t ability, its staying power and the ability to change your perceptions and paradigms as new information comes available.

The losers are those who wanted to 'get rich quick' but approached the market and within 6 months put on a pair of blinkers so they couldn’t see the obvious - a kind of "this is the way i see it and that’s that" scenario - refusing to assimilate new information that changes that perception.

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