New Forex Trading Strategy

Tuesday, October 27, 2009

4x Currency Trading & Everything About It!

By Junior Franciski

The most active segment of the market today is 4x currency trading. This is a high volume liquid market. Because of this it is very easy for the speculator to get involved. Four trillion dollars is estimated to turnover daily in the 4x. The level of risk in this market is very high. Only traders with a high tolerance for risk should attempt trading. One factor that contributes to the risk is the use of leverage. Traders are required to put up only a small percertage of the capital they will be trasing. The financial institution you are trading with will loan most of the capital. This can be a blessing or a curse depending on the outcome of the trades

To make a profit by trading in currencies it is necessary to accurately predict the direction of a currencies price movement just as it is with any other type of trading. Buy the currency if prices are expected to rise so it can be sold at a higher level later. The spread between the prices is the profit. If the currency price is expected to decline in the near term, sell it first with the goal of covering the position by buying it back at a lower price later. Currencies trade in pairs. The four most common pairs are the USD/euro(dollar/euro), GBP/USD(British pound/dollar), USD/JPY(dollar/Japanese yen) and the USD/CHF(dollar/Swiss franc).

There are all types of participants in the 4x currency trading market. The top trading level is that of the inter-bank market. This group consists of the largest investment banks. They have access to the best execution prices in the market. The reason for this is that they trade huge volumes of currencies daily. Prices for a specific currency will differ at different levels of trading as well as different locations. These differences are generally not large though. The banks primary objective is to trade for themselves in a profitable way, although they do trade for their customers also. They are over 50% of the daily volume.

A smaller group of participants in the 4x currency trading market is the central banks of countries globally. They want to maintain stability of their monetary systems. They do this by trying to control interest rates, inflation and money supply.

Individual investors who want to participate want to participate in this market may decide to do so using a hedge fund. Hedge funds are a growing group in currency trading. They are funds with wide investment guidelines that includes speculation.

Predicting price changes up and down is essential to success in the currency market. Knowledge of the factors that control prices is of paramount importance. Looking at a countries economic policies, budget surplus and deficit levels, levels of employment and political stability are all a part of the equation.

The currency market trades fast and furiously. Most investors are not suited to this type of trading. Currencies can be bought and/or sold 5 days a week, 24 hours a day. A trader must be on his/her toes at all times.

In conclusion, to be a success in 4x currency trading is difficult. However, if can be done. You must have a high degree of knowledge about the market and a confidence that will allow to make quick decisions. - 23305

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Foreign Exchange Trading - Using Platforms

By John Eather

Is it safe to use online foreign exchange trading platforms? Well the answer is yes as most investment and trading has become available online and platforms can be a great help to keep track of all of your trades. Foreign exchange trading, also known as FOREX trading was once only open to large financial institutions but today anyone can participate in FOREX trading.

While there are many different foreign exchange trading platforms available you want to use one that is safe and has excellent security. The safest such platforms usually are found at large financial institutions. The downfall to using these foreign exchange trading platforms from such large companies is that they may require a large initial deposit or very large transaction amount. You will need to see what the guidelines are for each platform offered.

You also don't need to use an online platform that is in your own country though many people prefer this option. Those that do day trading tend to be more comfortable with the laws and regulations in their own country. Because of these regulations many online platforms will not accept individuals with other countries of residence.

Professionals will use their own type of FOREX trading platforms and these are much different from what you will find by doing a preliminary internet search. You should look into what platforms other FOREX traders are using and reading reviews and noticing the advantages and disadvantages of each program.

Foreign exchange trading platforms that are serious and some of the best programs are those that provide non specific information about training as well as free information on the different currency markets available. There will be no hidden costs as everything will be made clear up front.

A good online foreign exchange trading platform will not provide any recommended strategies and they don't promise you high returns by using their platform. You will be made aware of the risk involved with FOREX trading. - 23305

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Find Your Low Cost Energy Provider

By Gavin King

Of Course, the fees for energy steadily increases each year. There seems to be more than one reason to turn to DIY electricity generating set ups. Aside from the reality that power is increasingly cost prohibitive, that a substantial junction may short out at anytime from overload and submerge your town in unlimited grey-outs, and the fact that we must convert to greener remedies for the good sake of the entire earth, we all should endeavor toward the alternative to change over to earth-friendly, the alternative electricity also know as off grid energy.

What about Natural Gas Generators?

Note: I would not even try acquiring a propane electricity generator. Many people have tried it, it doesn't save any money, it's a form of noise pollution, and its day to day costs will take a big portion of your time and money. So you'd better rethink that idea.

The Choices

Thank goodness, there is an alternative to all that: and that is DIY source of energy. You could have heard about solar created energy and wind generated electricity. By the by, did you know that your energy corporation will even pay you for constructing self made energy equipment? Add to that, you can learn how to build a photo-voltaic yourself. By doing so, you can synthesize energy yourself!

Easier Than You Think!

Its not that arduous to generate electricity on your own. Of course, you will have to invest a lot of effort in the research of how to complete that. Invest time to learn about your off grid power, and familiarize yourself with vocabulary like: solar cells, wind turbine, power inverter, alternative power , wind turbine blades, Photo-Voltaic panel, etc.

What will be the cost?

Amazingly enough, you have the ability to establish your own electricity package with a minimum of material, and have your own continuous energy, save some dough on exorbitant power bills, create your own power, even prompt admiration from people you know, and save a heap on your energy bill, naturally.

Conclusion

You owe it to your family: Save dough on your bill, preserve the earth, and even get some return on your money rapidly. Start deliberating actively about dropping your ineffective corporate energy connection and supplant it with a safe and sound, eco-friendly, independent power system. If you want to save some dough, just go contact your energy broker. - 23305

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Buying Stock Versus Stock Option Trading

By Micheal Thomas

Traders and investors are well aware of the difference between buying stocks and purchasing stock options. Purchasing options means you are speculating on the direction of the market in your favor. Option trading is different than simply purchasing shares and requires experience when moving forward with transactions. The terminology and strategies are different and should be approached by the experienced traders versus the novice. Understanding the differences should be the goal of everyone interested in trading options or stocks on the markets.

In options trading there are two types of options called puts and calls. Purchasing a call options give you the right to purchase the stock at the strike point prior to the option expiration. When purchasing a put option you have the right to sell the stock at the strike point any time prior to the expiration date. A call option is purchased when you expect the price of the stock to inflate while a put option is purchased when you expect the price to deflate.

Stock option trading is a profitable opportunity for traders and investors as long as they base their strategy on a particular set of stocks or options, as well as formulate an overall buying and selling strategy. It is extremely important to understand the terminology and the various methods of trading before engaging in trading options on the market. This is not an activity for the novice trader or investor but instead takes experience, practice and understanding in order to become profitable.

It takes time to understand and acquire the skills and experience necessary to become a successful trader or investor dealing with option trading on the market. Understanding the market, stocks, stock options and all the trading techniques are a vital part of option trading. The difference between buying stocks as compared to buying options is that when you purchase a stock you own a piece of the company. Purchasing a stock option is a contract that lets you buy and sell the stock for that company at a certain price designated by the current market prior to that option expiring.

When performing option trading transactions you will either be buying or selling. Whether you are a trader or investor looking to buy an option or sell an option there has to be a purchaser and a buyer to complete an entire transaction. Each buyer and seller for each option will have to call or put in order to adequately complete the trading. This type of trading can be performed by experienced traders and investors whereas novice traders should seek advice.

Traders and investors are very much like gamblers since they are betting that the market will move one way or the other. They base their option trading strategies and make their transactions based on the market position, trending and direction. When option trading the term 'zero-sum game' is commonly used and refers to the option that the buyer gains equals the sellers loss and vice versa no matter whether there is an increase or decrease in market movement. - 23305

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Even Dummies Can Learn Profit Trading

By Chad Reynolds

With today's technology, there are more resources than ever before to help you achieve your dream of becoming a profit trader. If you've always wanted to train to become a profit trader in the stock market, it is important to know that there's never been a better time for stock market beginners to join the ranks! Some might call it stocks for dummies, but we call it a really great training center.

That's right, all it takes to get you moving in the stock trading business is a fantastic training center that can provide you with all the resources you need to make your stock trading business a success. Whether you're new to the stock trading scene or you're a life-long veteran, there are great tools for everyone to make their lives easier and it all starts with a fantastic trading center.

You can start off by simply looking at the training center's Web site. If they are a reliable, well-respected company, you should be able to gather a lot of great information about the stock-trading world for free right off their site. The more information they have on their site, the more you know they're ready to exceed your expectations.

Something else to look for would be a 100 percent satisfaction guarantee, and then you know they have nothing to hide. This means you can try the program for a month and, if you didn't learn a thing from the subscription, they will give you your money back. This means you really have nothing to lose.

You must remember that the training can only do so much. The training center should know this and, if they are an honest training center, they will even make note of this right on their site. It is up to you to take the initiative and learn the self-discipline to stay dedicated and motivated to your training.

Another great feature to look for is the option of a personal trading coach. If you're lucky, they might even offer the first session for free. This will give you a chance to ask any immediate questions about the industry, before you venture off on your own. Hidden values like that are great and you should look for them while choosing a training center.

Finally, see what the company can offer you in terms of group forums and discussions, so you can make contacts in the field and ask questions. The training company might send out weekly email alerts about potentially profitable trading candidates, which is another great feature to look for.

Just remember to stay motivated, dedicated and focused. This kind of a life change is possible and the resources are out there to help you succeed. Trading stocks is a great option for those looking for a change of career or those who are looking for some extra cash as a part-time job. Good luck! - 23305

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