FOREX EXCHANGE

INTRODUCTION

When starting out trading forex on the net, it is an absolute must that you understand and become good at the basics first. Once you have a good concept on the basics then you can move forward. For example, one of the major forex influencer's are global news events. An ECB statement is released on Euro interest rates and this will cause a flurry of activity. Most newcomers will get scared and wait until everything calms down. If you hesitate you are likely to miss out on some great trades. You must act when the market is in volatility not when it is in a stand still.

WHAT IS FOREX?

It can simply be define as the trading of one currency to another.The forex also known as Foreign Exchange or FX.FOREX market is the biggest and fasted growing market on earth.Its daily turnover is more than 2.5 trillion dollars.The participants in this market are central and comercial banks,corporation,institutional investors,hedge funds and private individual like you.

WHAT TAKES PLACE IN THE MARKET

This is a place where one trade one currency with another just like the traditional trade by barter that was practised long time ago.for example,you might buy euro with us dollars,or you might sell japanese Yen fo r Canadian dollars.

THE ADVANTAGE OF FOREX IS LEVERAGING

So what is leverage? It can simply be define as the ratio of investment to actual value.for example using a 1,000 dollars to buy a forex contract with 100,000 dollars value is leveraging at a 1:100 ratio.The 1000 dollars is all you invest and all you risk,but the gains you can make may be many time greater.

HOW CAN YOU PROFIT FROM FOREX TRADINGYou can profit by buying low and sell at a high price.The potential comes from the fluntuations in the curency exchage market.The advantageous thing about forex market is that regular daily flunctuations -in the regular curency exchage markets,often around 1% -are multiplied by 100!

WHAT IS THE RISK IN FOREX TRADING

You cannot lose more than what you invested initially.The profit you may make is unlimited,you are strongly advised to never risk more than you can afford to lose.WHAT U NEED TO START1.A sytem of your own2.you must be connectedto the internet3.Minimum amount that worth 100 dollars4.have a mentor(an expert in forex trading)Also, you must register with a known forex manager or organisation.you deposit the amount you want to trade with.(minimal 100 dollars)Then you are ready to tradeHOW TO MONITOR YOUR TRADINGIf you have access to the internet definately you will have full control to your trading status.FOR DUMMIESTHERE IS A PARTICULAR SOFTWARE CALLED FOREX ROBOTTHIS ROBOT WILL TRADE FOR YOU WHILE YOU ARE WATCHINGIT KNOWS WHEN TO TRADE AT A PARTICULAR PERIODIT IS 99% FREE OF RISKIT'S TRADE 30-70 PIPS

While most of the currency pairs are in a loose range bound as talk and evidence of a US economic recession builds, the Dollar has witnessed a slight upswing. How to explain these seemingly contradictory trends? The rationale is surprisingly simple. While a US recession would predictably hit the US harder than other countries, it would still hamper growth abroad, especially in emerging markets that have come to depend on exports to the US to drive growth. Accordingly, investing in such emerging markets becomes relatively more risky than investing in the US, which is still considered to have the world's most stable investing climate from a long-term perspective. Thus, as risk aversion rises, so does the Dollar.

In addition to all the "fire your boss today" opportunities, there is a program on CNBC called Mad Money that seems to begetting to the masses and unknowing students to invest in the stock market. In reality this is a very expensive experiment especially for student that do not have a lot of capital. Buying a Goggle stock for $400.00 a piece is very expensive given that your capital can be wiped out if the stock goes against you by 100 points. That money could be better invested in the Forex positions (trades). The forex market which is also called FX is not really as difficult as it seems. There is not that much technical vocabulary to learn, and the risk is considerably low, if you compare it to the other markets. If we assume that you have 40% loosing trades, you still have 10 trades left to bring you profit. The fact that part time job and home businesses seekers should really consider is that you can choose when to trade, how much to trade and where you want to trade; all you need is an Internet connection, and you are ready to tap in the biggest market of the world with $ 2 trillion activity everyday in the same way banks and large corporation do. Contrary to the trading of stocks, you do not have to start with a $1000.00 capital. You can start with as little as $250.00. When you trade a mini lot (10,000 units) of e.g. GBPUSD currency pair your entry ticket costs $28.00. So when the pair goes your way 1 point, you are $1.00 in profit and vice versa. You can also trade lesser trading units and you can trade for as little as $1.00. It is therefore possible to turn a $28.00 investment to a profit of $100.00 in 24 hours if the currency moves in your direction 103 points. Imagine been able to do this 2 times a week. In a good week, this pair moves an average of 400 points.The Forex market is not a get rich quick scheme it is easy to learn and understand. It is also easy to make money in the forex if you let someone dedicated to your success teach you.

The Most Lucrative Part-time Job or Home Based Business EverThe Forex market is relatively new when compared to the traditional stock market. The Forex or Foreign Exchange Currency Market was open to the public in 1998. In a year it will be a decade old. This is one of the major reasons most people do not know about the Forex. The first reason why you should take a closer look at the opportunities in the forex market is because of its liquidity estimated at $2 trillion daily. The other reason is that it is traded 24 hours of the day and 6 days in a week and participation is open to all, from individuals like you and me to very large financial institutions.With the economic situation of our day worldwide, where there are no more job guarantees it is not unusual to wake up one morning and find oneself jobless. In such times, there is an increasing need for a lucrative part-time job or home based business. This is something that you can had absolute control over.There are of course a multitude of money making opportunities out there, but to be factual, it is very difficult to find a real opportunity which will allow you to make a living from your home computer. Even when you do, you would have to spend hours doing market research and invest large sums of money to bring it to fruition. That is if you have not gotten involved in a scam project. Most of the opportunities on the web today, even if you make big profits, may be held by someone else. In other words, when you participate in those turnkey businesses, you do not have control.

Here's my bold prediction for you in 2009!You will break your trading resolutions by the end of February.
You will abandon your trading plan
You will fall into the same destructive trading patterns you resolved to change
Your account will earn the same or less than in 2008 I know this this sounds harsh, but statistically speaking, that's what will happen to most traders. So, are you going to let this happen to you?True, statistics cover populations and not individual traders. The fact is, its traders who are outside of th enorm and trade with focused discipline that really achieve their financial goals. When is now the time to re-focus with discipline and dedication and really commit yourself to your trading plan?Today is January 15, 2009 and February is just around the corner. Let this be your wake-up call!Be honest with yourself and focus with the discipline of a seasoned trader on staying true to your trading plan or risk becoming a statistic!Happy "Disciplined" Trading!!

A Free Trading Video From the World's Largest Market Forecasting FirmThis video lesson features Elliott Wave International Senior Currency Analyst, Jim Martens, demonstrating how you can use Elliott wave analysis to identify opportunities in your Forex trading.This is just a short excerpt. For a limited time, you can access the full $79 online trading course, FREE. Visit Elliott Wave International for your free access.

When you turn on the TV (especially mainstream media) you are inundated with news of the demise of the dollar. Business news, national news and even your local news channels are leading into events with reports of the dollar and the economy. Analysts are featured and opinions are smattered across the airwaves in an attempt to provide an oracle response to current economic events.Beware the source and follow your system.In these volatile times it is easy to get caught up in the hype provide by all the news media and analyst. It is natural to want to look for guidance. Remember to trust your system and more important trust yourself. You, after all, are the single largest determinant of your success.Your approach should remain consistent, almost impervious to the events occurring because you follow your plan with discipline and ruthless detail to executing at optimum performance.Be disciplined and follow your plan. If market conditions don’t suite your style – sit this one out until conditions provide your with your personal edge!Happy Trading!