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