What should I be aiming for in Forex trading?

Remember we said yesterday that your GOAL in Forex trading is to capture as many profitable "pips" as possible.

But this is a general rule. As you progress in Forex trading you will find the specific type of trading that suits you best. There are three main "styles" of trading.

1. Swing-trading. Swing-traders go after large pip targets - anything up to 500 pips or even more. They are often "position traders", leaving trades open for days on end. Usually they trade one or two lots and set "stop-losses" of about 50-100 pips.
2. Day-trading. Day-trading means getting in and out of a trade over a period of hours, within one day. Day-traders trade one, two or a few lots and aim for 10-20 pips.
3. Scalping. Scalping means trading multiple lots to catch 5-10 pips, often within minutes. If you capture 10 pips with 10 lots this can equal $1000 profit.

The most common type of trading is day-trading. Look back at the post of December 14, 2007 on this blog that explained more about day-trading and how Easy-Forex's unique features can make this type of trading especially profitable and risk free.

All three styles of trading have their pros and cons and we all find our personal preferences as we progress in confidence in Forex trading. If you are not too confident as yet, remember one thing: The larger the pip target you are aiming for, the greater the chance that the market will turn around before it reaches your target. So the smaller the pip target you are aiming for, the greater your chance of reaching it. If you can initially learn to capture 10-20 pips per day on a consistent basis, you will grow immensely in confidence and this will help you become more ambitious.

There is more to learn at http://www.bizwrite.co.uk/Forex/forexindex.html

More again about trading currencies in Forex

Currencies are traded on a price interest point (pip)system. Each currency pair has its own pip value. Since we have a listed currency PAIR (i.e., EUR/USD, EUR/AUD), we need a way to talk about its associated number or price. When you see a FOREX price quote, you'll see something listed like this:
USD/JPY: 118:46/51
The first bit (before the slash) refers to the bid price (what you obtain in JPY when you sell USD). In this example, the bid price is 118.46. The second bit (after the slash) is used to obtain the ask price (what you have to pay in JPY if you buy USD). In this example, the ask price is 118.51. The difference between the bid and the ask price is referred to as the spread (how brokers REALLY allow you to trade commission-free). In the example above, the spread is 0.05, or 5 pips.Sometimes you won't see a two-sided quote, consisting of a 'bid' and 'offer'. But, rather, you'll see something like...
USD/JPY: 123.50
When you see a Forex currency pair price quote, like the one above, just remember that the last digit of the price is referred to as the *pip*. So if you see a quote (123.50)and then a quote in one minute of (123.51), the price rose 1 pip. Similarly, if you see a price quote of 187.50 and then after 5 minutes it's (187.58), the price rose 8 pips. The pip is always the last decimal place of the currency price quote.

Your goal in Forex trading is to capture as many profitable pips as possible.

Since the US dollar is the centerpiece of the Forex market, it is normally considered the 'base' currency for quotes. In the "Majors" (this includes USD/JPY, USD/CHF and USD/CAD) and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. In the example above, a quote of USD/JPY 123.50 means that one U.S. dollar is equal to 123.50 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 above increases to 124.01, 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 1.4366,meaning that one British pound equals 1.4366 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 it works exactly the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.

I hope this will help you if you feel unsure about how Forex trading works. Of course it works the same whichever Forex trading system you use. But if you use Easy-Forex, you are really at a big advantage because you can learn how it all works WHILE YOU ARE ACTUALLY TRADING and making a profit! So if you find it all a bit confusing, don't let this stop you. Give Easy-Forex a go and enjoy the benefits of their unique personal tutorial system. Learn more at http://www.bizwrite.co.uk/Forex/forexindex.html

More about how currencies are traded

Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded.

Here are some of the common symbols used in the Forex: USD - The US Dollar; EUR - The currency of the European Union "EURO"; GBP - The British Pound; JPy - The Japanese Yen; CHF - The Swiss Franc; AUD - The Australian Dollar; CAD - The Canadian Dollar. There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you can't ever trade a EUR by itself. You always need to compare one currency with another currency to make a trade possible. Some of the common pairs are:

• EUR/USD Euro / US Dollar"Euro"
• USD/JPY US Dollar / Japanese Yen"Dollar Yen"
• GBP/USD British Pound / US Dollar"Cable"
• USD/CAD US Dollar / Canadian Dollar"Dollar Canada"
• AUD/USD Australian Dollar/US Dollar"Aussie Dollar"
• USD/CHF US Dollar / Swiss Franc"Swissy"
• EUR/JPY Euro / Japanese Yen"Euro Yen"

The listed currency pairs above look like a fraction. The numerator (top of the fraction or "left" of the / - however you want to see it) is called the base currency. The denominator (bottom of the fraction or "right" of the/ - however you want to see it) is called the counter currency. When you place an order to buy the EUR/USD, for instance,you are actually buying the EUR and selling the USD. If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency. You are always doing the opposite of what you did to base currency with the counter currency.

If this seems confusing don't worry. You can always get by with just thinking of the entire pair as one item. Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. (You only need to be aware of the base/counter concept for Fundamental Analysis reasons - i.e. using various factors to predict currency movements.)

If you use Easy-Forex you have even less reason to worry about things seeming complicated because of their unique system of training you as you go with personal tuition. Find out more from http://www.bizwrite.co.uk/Forex/forexindex.html

Is it possible to TRADE and TRAIN at the same time?

What is the best kind of Forex training package?

Some Forex trading systems provide "demo accounts" to help you with the learning process. This is a sort of "pretend account" where you carry out all the trading moves exactly as you would in real trading, but without using real money. The idea is that by the time you have your real account you know how to do all these things so there is less risk.

However Easy-Forex have a better way of providing Forex trading training. This way you actually get started and learn at the same time. Because you can start with a small amount of money - smaller than with any other Forex trading system - you can take advantage of Easy-Forex's unique hands-on personal advice and tutorial provision. So you get immediate access to proven trading techniques you can use to increase profits! Easy-Forex believe you can never really learn until you are doing it for real. Yet their unique Forex training package means the risk is minimal and you can learn and make money at the same time!

Don't forget you can start with only $50 (which gives you a trading potential of $10,000!) But if you register before December 31st you get another $50 FREE! Find out more at
http://www.bizwrite.co.uk/Forex/forexindex.html

What will you do for yourself in 2008?

Hallo - I do hope you had a great Christmas - or an enjoyable time of holiday and relaxation if you don't celebrate Christmas!

Now that it's over, we can all start to think about what we achieved in 2007 and where we're going in the next 12 months. For myself, I can honestly say that the best thing I did in 2007 was get involved in Forex trading. And this is in spite of the fact that for a long time I was sure it wasn't for me. I hesitated for ages because I was nervous about taking the plunge. And to be honest, my first trades weren't all that successful! This was largely because I am a hesitant person, and time and time again I failed to take the trade when the signals were right. But I have improved and have ended the year in profit!

Two things to take from this. First, if you are like me and nervous about taking risks,

Easy-Forex is the best Forex trading system you can choose because you can start with a tiny amount of money.

Second, Easy-Forex has such a great system of Forex trading training. With their online tutorials and personal one-to-one advice, they really make sure you can walk before you try to run. They help you step by step more than any other Forex trading system or Forex training package.

So go on - make 2008 the year you really do something for yourself. (You still have 5 days to take advantage of their special offer of $50 FREE trading money!)

Find out more at http://www.bizwrite.co.uk/Forex/forexindex.html

How can I obtain Forex training?

Foreign exchange trading can be dangerous if you don’t know what you’re doing.
So how do you obtain Forex training? The best idea is look for a Forex trading system that provides one-to-one Forex trading training.

Some Forex trading systems provide Forex training in the form of a demo account. The idea of a demo account is that you carry out all the trading moves, without using real money. So once you have your real account, you know how to do all these things – drawing trendlines, marking support and resistance levels, monitoring moving averages etc. Plus you can make your mistakes in placing orders to trade without losing money.

However, there is some doubt as to whether using a demo account is really the best way of learning foreign exchange trading. You really don’t have the same attitude to your trades if you are just using play money. One of the most important lessons – if not THE most important – in foreign exchange trading is to be ruled by reason and discipline, not feelings, excitement or greed. When reason and discipline go out of the window, that is when you find yourself losing. This is a hard lesson you really have to learn, and without consequences you don’t learn it.

A better way to obtain Forex training is to find a Forex trading system such as
Easy-Forex that enables you to start trading with a small amount of money, and at the same time provides one-on-one training as you do it. This way you learn the basics of the foreign exchange market, the terminology of trading, and how to develop successful trading strategies. If you make a wrong decision – which everybody does – you will lose money and this will teach you not to make that particular move again! But the money you lose will just be a small amount.

I simply haven't seen a Forex trading system that gives you the level of Forex trading training that Easy-Forex does. It's the only one where you can start with an amount as low as $50, PLUS being provided with a personal account manager to give you step-by step advice.
(The Easy-Forex 1:200 leverage means your $50 gives you $10,000 trading power - yet $50 is all you can lose! And if you register by December 31st you get another $50 absolutely FREE!)

Find out more at http://www.bizwrite.co.uk/Forex/forexindex.html

How do I get into a trade in Forex trading?

Whatever Forex trading system you are using in your currency trading, you need to know how to "enter" a market - that is, how to place an order to buy or sell a currency pair.

There are two main ways to place an order:

1. Market order. This is an order to place a trade as soon as your order is processed. This usually only takes seconds from when you click on the OK button. Many experts who advise on currency trading, including those who are providing your one-to-one guidance in the Easy-Forex trading system, would advise you to to avoid market orders. This is because this way you are trading on impulse rather than according to a properly thought-out plan


2. Entry order. This is an order to buy or sell a currency pair when it reaches a certain price target. Many people who advise on currency trading advise you to set an entry order to be the same price as the open price of the time period. For instance, if you place an entry order to buy, you are saying that you ONLY want to buy this currency pair at the specified price, and if it doesn't reach that price you don't want to buy it. This way, if the order isn't filled , you don't lose any money!

It does take some understanding of Forex trading to know when to enter the market - but if you never enter the market you will never make a profit. It largely depends on what Forex trading system you use. With Easy-Forex, you receive personal advice from the time you sign up. It's in their interests for you to make a profit, so they will make sure you do!

Learn more at http://www.bizwrite.co.uk/Forex/forexindex.html

How to Recognize a trend in Forex trading

Yesterday we discussed what a trend was in Forex trading. Obviously if you want to be successful in Forex trading you need to know how to recognize and predict market trends. These are some of the techniques:

Moving averages Moving averages are used to emphasize the direction of a trend. A moving average indicates the average price at two given points in time, over a defined period of time intervals. So when the price falls below its moving average, it’s a signal to sell, and when it rises above its moving average, it’s a signal to buy. There are several kinds of moving average, including simple, weighted and exponential. The exponential moving average is the most often chosen as it takes into account both the most recent data, and the entire time period.
Moving average convergence/divergence (MACD) - a more detailed way of using exponential moving averages to detect price swings. This technique plots the difference between a 26-day and a 12-day exponential moving average. It takes a 9-day moving average as a trigger line, so that below this would be a “sell” signal and above this would be a “buy” signal. The MACD is often used in conjunction with other indicators such as the RSI.
Relative Strength Index (RSI) This compares recent gains with recent losses to detect whether the market is overbought or oversold. The higher the number – i.e. 70 or more on a scale of 1-100 – the more overbought the market is, and the lower the number – 30 or less on a scale of 1-100 – the more oversold it is. The RSI is what is called a “leading” indicator – that is, it enables you to see what the market is about to do, and act accordingly.

Bollinger Bands These are plots on a graph, plotted two standard deviations above and below a simple moving average. The principle is that the spacing between them varies according to the volatility of the market. So when the markets become more volatile, the distance between the bands widens, and when they become less volatile, the spacing narrows. The closer prices move to the upper band, the more overbought the market is – indicating “sell” – and the closer they move to the lower band, the more oversold the market is, indicating a “buy” signal.

There are many more techniques but these are some of the most important ones. Successful Forex traders use three or four - if they all point in the same direction, it's a clear signal to trade.

If this all seems complicated, remember that Easy-Forex provides one-on-one guidance and tuition AS YOU TRADE! You will be surprised at how fast you learn when you're actually doing it.

Learn more about Forex trading at http://www.bizwrite.co.uk/Forex/forexindex.html

What is a trend?

A trend is simply the direction in which a price is moving. Prices don't normally move straight up or straight down but in peaks and troughs. If the peaks and troughs are in an upward direction, this means an up trend and vice versa. The breaking of a trend line usually signals the reversal of a trend.

Trends are often classified into 3 categories:

• Bull trend = up trend. A series of highs and lows where each high is higher than the previous one.
• Bear trend = down trend. A series of highs and lows where each high is lower than the previous one.
• Treading trend. A series of highs and lows more or less remaining at the same level.

Of course, being successful in Forex trading means that you have to be able to identify trends. More about this in tomorrow's post.

Learn more about Forex trading and how YOU can get involved, by visiting http://www.bizwrite.co.uk/Forex/forexindex.html

What sort of account can I have with Easy-Forex?

When you first set up your account with Easy-Forex, you will probably want to start with a mini-account which has a minimum deposit of only $50, and a 10-pip spread. (This is assuming you're a newcomer to Forex trading)

(Be careful if you keep only a small amount in your account. In a day-trading deal (see yesterday's post) if you set a stop-loss using your entire account balance, and there is nothing left in your account, Easy-Forex will bill your credit card for the daily renewal fee. You would be better to set the stop-loss to ensure there is something left in your account.)

When you become more experienced at Forex trading, there are other account types you may want to move to:

• Gold account - 7-pip spread


• Platinum account - 5-pip spread


• Tailor-made Import-Export account = 3-pip spread.

Because Easy-Forex earn their money from the spreads, they don't charge ANY commission on trades (apart from the daily renewal fee on day trades). So all your profits are commission free. Find out more from http://www.bizwrite.co.uk/Forex/forexindes.html

What is a day-trading deal?

A day-trade is a trading deal on the Forex market that renews automatically every night (usually at 2200 Greenwich Mean Time).

Suppose you decide to open a trade to buy a USD/EUR pair. This will probably be because you believe that the USD is low in terms of the Euro and will rise. So you make your trade. If the USD does rise to the level you believe it will, you will close the deal. You will get more Euros for your USD than you originally "bought", so you make a profit.

You MUST set a "stop-loss" rate - that is, specify the exchange rate at which your trade would close automatically if you were wrong and the USD actually fell instead of rising. In this case you would lose your "margin" - the amount you had invested, e.g. $100 - but that is all you would lose.

But with Easy-Forex, uniquely, you can also set a "Freeze" rate! This gives you "thinking" time. Without this, if you hesitate while deciding whether to accept a trade or not, the rate could change in the meantime. Never forget how volatile currency rates are.

If you accept the trade, you are now holding an "open" position. It stays open until one of the following happens:

• You manually terminate the trade.


• It reaches your stop-loss rate.


• It reaches the deal-end date.

As long as it stays open, it is charged a renewal fee every night.

With Easy-Forex you can also set up a "Limit Order" to reserve a day-trading deal. It sets up a trade if and when the conditions you specify occur in the market. So you can get on with other things, and even go on holiday, knowing you are not missing a trading opportunity. Easy-Forex is unique in not charging for this!

Day-trading is the most common type of trade. Easy-Forex's unique features give you the best opportunity for profitable trading.

There's lots more to find out at http://www.bizwrite.co.uk/Forex/forexindex.html

How do I deposit funds in Forex trading?

With most brokers and trading platforms in foreign exchange trading, you have to make an additional deposit over and above your margin or trading deposit.

This is for the benefit of the platform or broker. It's an additional security in case of trading loss.

With Easy-Forex, you don't need to provide ANY additional security. Not only does Easy-Forex accept the lowest minimum deposit of any trading platform in the Forex market - only $50! It also allows you to trade with the WHOLE amount deposited. Plus, as there is a leverage of 1:200 with Easy-Forex, when you deposit $50 you can trade with $10,000!

(Don't ever forget that leverage works both ways. It allows you to make much bigger profits on a winning trade, but also means much bigger losses on a losing trade. You need to stick to the risk management methods that Easy-Forex help you with through their personal advisory service.)

And remember - right now there's a special offer! Till December 31st, if you deposit $50 with Easy-Forex, you get another $50 trading money FREE! Find out more at

http://www.bizwrite.co.uk/Forex/forexindex.html

How can I reduce risk?

Of course there is risk in foreign exchange trading. Every deal involves SOME risk. For one thing, you can never know when there is going to be some sudden event that will affect currency levels. The major example is 9/11! Nobody could have predicted that! But less cataclysmic, though equally unpredictable, events are happening all the time.

There are several ways of reducing your risk and you learn these as you learn the skill of Forex trading. One of the most important is to make sure you set "stop" or "stop-loss" orders and "limit" or "take-profit" orders. Easy-Forex teaches you how to do this in your initial training.

A stop or stop-loss order is placed BELOW the current value of a currency pair (if you're in a long trade). It guards against the value of the currency falling below the specified level.

A limit or take-profit order is placed ABOVE the currency value. It becomes an order to sell if the currency reaches a certain price, meaning you are guaranteed that profit even if it falls again.

As well as teaching you to do this, Easy-Forex also allows you to change your stop and limit orders as often as you like, free of charge. Of course this doesn't mean you can't close your trade manually if you wish.

Along with Easy-Forex's uniquely low minimum trade ($50) and their personal guidance and advice, these features mean your risk with Easy-Forex is minimised. I believe there is no Forex Trading System that gives so much protection from risk as Easy-Forex.
Find out more about Forex trading by visiting http://www.bizwrite.co.uk/Forex/forexindex.html

How "Easy" is Easy-Forex?

Do you feel really excited at the thought of Forex trading, yet at at the same time worry that it seems so complicated you'll never get the hang of it sufficiently to make a profit? That's certainly how I felt.

One of the many great things about Easy-Forex is that you don't need to have this worry.

• First of all, the Easy-Forex site provides a guided tutorial, showing you step-by-step EXACTLY how to trade on the Forex market. Easy-Forex also gives you a free Forex e-book (110 pages!), explaining it all in even more detail. One of the things that make it all seem complicated is the terminology - and of course you do need some grasp of this. This is all explained in the e-book.
• When you register with Easy-Forex you are contacted immediately by your own personal account manager, who takes you by the hand and walks you through the initial stages of dealing. And you continue to have this guidance from your personal manager whenever you need it!
• Then when you become a more experienced trader, Easy-Forex offers you advanced training, so you can build on your experience to make even more profit.

Find out more about Forex trading and Easy-Forex at http://www.bizwrite.co.uk/Forex/forexindex.html

Is Easy-Forex too good to be true?

One of the features of Easy-Forex that is most attractive to many people is the very low minimum deposit - only $50.

Some people are actually worried by this! They feel it might be too good to be true! Surely Easy-Forex must have sacrificed something to be able to make such a seductive offer!

Not so! Easy-Forex is just a trading platform that is determined to offer everything you need to start AND SUCCEED in foreign exchange trading.

And what's more, with Easy-Forex you can make these deposits instantly by credit card. There are few things more annoying than finding rates have changed between the time you paid your deposit and the time it registered. This doesn't happen with Easy-Forex.

Find out more at http://www.bizwrite.co.uk/Forex/forexindex.html

The Personal Touch makes a difference

Before you start Forex trading, or foreign exchange trading, it's essential that you look carefully at all the different Forex trading systems available. Most of them have their good and bad points and different people have different requirements. The system you choose must be the right one for YOU.

This Easy-Forex Review blog is really to set out some of the reasons why I chose
Easy-Forex. As far as I was concerned, it had more good points than the others, especially for the beginner - and in talking to others I found this was true for many other people as well. However, I would encourage you to investigate other Forex trading systems before finally making your choice. It is such a major decision, that could affect your whole life, that you can't afford to be hasty. But I honestly believe you will decide Easy-Forex has the most plus points.

For me, one of the super-plus points is that Easy-Forex has a human face! As soon as you register, you are contacted by a REAL person. This friendly person offers you FREE, LIVE training in forex trading - this is invaluable! You have your own Account Service Manager, who helps you tailor your account to suit your personal trading style. I honestly believe no other Forex trading system can beat that.
To find out more go to http://www.bizwrite.co.uk/Forex/forexindex.html

What Forex trading system should you use?

The three most used Forex trading systems are: Forex Yard, Pip-Forex and Easy-Forex.

• Most people find Forex Yard a superb system, but it isn't really for the newbie. The minimum deposit is $100 but they recommend $1000 on their Pro account. You don't want to start risking this amount when you are just setting out.


• Pip-Forex has an extremely user-friendly site and trumpets itself as being for the newbie. However unlike the other two it requires a software download, which some people find causes problems. Also its minimum trade is $200 which is too much to start out with. Also compared to the other two its leverage is poor - that is, the multiple of your deposit that you can trade with. With Forex Yard the leverage is 200:1, meaning that if you deposit $100 you can trade with $20,000! With Pip-Forex the leverage is only 100:1.
• Along with most other people I would recommend Easy-Forex if you are just starting. As with Forex-Yard there is no software to download - you can log into your account from anywhere and just start trading. But what really makes it No.1 for the beginner is the low minimum deposit - only $50! So you can enjoy the excitement of foreign exchange trading without losing more than you can afford. Yet because of the leverage of 200:1 you still have the potential to make substantial profits.

Find out more from http://www.bizwrite.co.uk/Forex/forexindex.html

Why is Forex Trading so popular?

Forex trading means "foreign exchange trading". Foreign exchange trading, or currency trading, is rapidly becoming one of the hottest business opportunities in the world of investment. In fact some claim foreign exchange trading is the world's most powerful home-based business. Many have used forex to make their dreams come true and achieve a level of financial independence and a lifestyle beyond what they could ever have imagined.

The reason why more and more investors are turning to Forex trading is that it is the method with the most advantages. It has huge advantages over traditional trading methods like stocks, bonds, futures or commodities.

• If you're trading on the futures market you are buying a contract to purchase a particular unit of currency at a particular point in time. You have no way of protecting yourself against the market's sudden moves so your position can be liquidated at a loss. In Forex trading there are no dangerous gaps and moves because of the market's deep liquidity and continuous 24-hour trading.
• In foreign exchange trading you have super-high leverage - meaning that you can be allowed to trade up to 100 times - or in the case of some platforms, such as Easy-Forex, 200 times! - what you actually have in your trading account. And what you have in your account is ALL you can lose!
• This amazing leverage alone gives Forex trading a major advantage over trading the stock market.

I read that a Forex expert said"Trading Forex is like picking money up off the floor. NOT trading Forex is like leaving it there for someone else to pick up."

So - you may ask "How do I access this amazing market?"

Well - you MUST have the right Forex Trading System. I'll tell you more about that in my next post. Meanwhile, to find out more, have a look at http://www.bizwrite.co.uk/Forex/forexindex.html