FOREX Scalping - Day Trading For Regular Gains With Low Risk

The rise of the online FOREX trading has seen a huge rise in day trading and traders who want to scalp the market, with the aim of trading for small regular profits.

The aim is to keep risk low and aim to take small profits on a daily basis and earn a living by FOREX Scalping.

Let's look at it in more detail and the potential of this form of trading.

The Opportunity

Global currency markets are the biggest investment market in the world.

Every day trillions of dollars are traded, by countless millions of people.

The currency markets are traded by 4 broad groups of investors.

Central Banks

Their activity varies, but when they do trade its big numbers!

They will normally step in individually or as a group, to stabilize currency volatility.

Large Speculators

Well capitalized and can be rich individuals or funds.

Hedgers

Not looking to make money from currency speculation - they are simply in the market to hedge the value of their holdings.

Small Speculators

Everyone else, including the vast majority of FOREX day traders.

The challenge

FOREX Scalping involves deciding and predicting what all these groups together will do, with all their different investment aims and strategies, in under a few hours or less.

FOREX Scalping

Can it be done?

Of course it can't - it's ridiculous to think that you can predict in such a short time what will happen.

Day traders don't make money.

Sure, there are plenty of vendors telling you how great their systems are, but if they were that great they wouldn't be selling them!

If you really want proof that it doesn't work, simply ask for a real track record of profits from any vendor and you won't get one.

Trading the odds

The problem with FOREX scalping is the odds are against you.

You have no meaningful data to work with and if you trade technically without it you will lose.

All volatility in the short term is random, which is obvious to most traders.

This of course means that if you use any technical tool it won't work when traders try FOREX scalping.

Pivot points, support and resistance etc are great technical indicators in longer time frames, where you can trade the odds, but in short term trading they will fail miserably.

The illusion

In hindsight of course there appear to be normal technical formations, but this is in hindsight.

Day traders can prove everything in hindsight ( and they love producing hypothetical track records by looking at past data ) but ask them to do it in real time and they can't.

Volatility can and does take prices anywhere in short time frames and it doesn't take long for FOREX scalpers to wipe themselves out.

Don't fall for the hype!

A great theory, but FOREX scalping doesn't work in practice.

Vendors know this and never trade themselves.

They get great marketing copy together and a track record (done in hindsight of course) and sell it to novice or greedy investors.

They get the fee, while these investors go on to trade and get wiped out.

Don't day trade, pick a longer term method of trading where the odds are in your favor.

Introducing Forex Trading

FX, Forex, Foreign Exchange are all names for the transaction of one currency for another, e.g. you buy £100.00 with $150.25 or sell $150.25 for £100.00.
Traders buy and sell currencies with the hope of making a profit when the value of the currencies changes in their favor, whether from market news or events that takes place in the world.
Forex trading has been around for years. It is viewed as the largest financial market in the whole world. The estimated amount of daily volume is 1.5 trillion (US) dollars.
A true 24-hour market, Forex trading begins each day in Sydney, and advances around the globe as the business day begins in each financial center, first to Tokyo, London, and New York.
Unlike other financial markets, Forex Allows investors to respond to currency fluctuations caused by economic, social and political events instantaneously, at the time that events occur, day and night. The market only closes on weekends.
A benefit of forex trading is that it is not really subject to the same kinds of swings in the market that stocks are subject to.
Of course if you alwaysbuy and sell the same currencies then there will bemarket swings.
But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.
Forex trading does not take huge amounts of capital to start. Traders can begin investing with as little as three hundred dollars.
Transaction costs are usuallyminimal. Often brokers will provide you with the tools and data you need to make trades for free.
There are a large number of buyers and sellers all selling the same products. Information is free-flowing and there are few barriers to participation.
Websites like http://www.forexinterbank.com/ affiliate.php also offer training courses to help you succeed in the Forex market.
Forex trading is an over-the counter (OTC) market. This means buyers and sellers do not meet in central locations to make exchanges. Instead transactions are completed by phone, fax, and email or through the websites of brokers specializing in this market.
Currencies are always traded in pairs. Transactions always involve selling one currency and buying another. If you believe the euros would gain against the dollar you would sell dollars and buy euros.
A very liquid market, your money is not held up for long periods of time. You will have full control of your capital. For a no cost weekly newsletter on Forex please visit: http://www.elmerfizz.com/FOREX_NEWS.html

Forex Future Trading

The profits of forex over currency futures trading are significant. The difference between the two instruments range from truth-seeking realities such as the history of each, their objective viewers, and their importance in the modern forex markets, to more concrete issues such as transactions fees, margin necessities, access to liquidity, easiness of use and the technical and educational support obtainable by sources of each service. These dissimilarities sketched below:

More Volume = Improved Liquidity. Daily money futures volume on the CME is now above 2% of the volume seen each day in the forex markets. Incomparable liquidity is one of many advantages that forex markets clutch more currency futures. The truth told this is old news. Any currency professional can tell you that cash has been king since daybreak of the modern currency markets in the early 1970's. The actual news is that individual dealers from every forex risk profile now have full right to use to the opportunities offered in the forex markets.
Forex markets give tighter bid to offer increases than currency futures markets. By reversing the futures cost to evaluate it to cash, you can willingly see that in the USD/CHF example over, inverting the futures selling price of .5894 - .5897 results in a currency price of 1.6958 - 1.6966, 8 pips vs. the 5-pip increase available in the forex currency markets.

Forex markets offer higher advantage and lower margin charge than those found in currency futures trading. When trading currency futures, buyers have one margin charge for "day" buy and sells and another for "overnight" situations. These forex margin rates can differ depending on business size. When trading cash markets, you have admission to the same margin rates day and night. Certainly, trading on margin enlarges equally your fx profits AND your losses.

Forex markets make use of easily understood and across the world used terms and cost quotes. Currency futures quotes are inversions of the cash value. For instance, if the cash price for USD/CHF is 1.7100/1.7105, the future corresponding is .5894/ .5897; a method followed only in the limits of futures trading.

Currency futures charges have the added difficulty of with an advance forex part that takes into account a time factor, interest rates and the interest disparities flanked by different currencies. The forex markets need no such changes, mathematical manipulation or thought for the interest rate factor of futures agreements.
Forex trades performed through FOREX.com are charge free*. Currency futures have the extra baggage of trading commissions, trade fees and defrayal fees.

Forex - You Need A Real System!

Although it has been some years since I was actively involved in trading, I have just returned to the markets and have begun to trade a small account on my own behalf. This has perhaps given me a slightly skewed perspective of the markets, almost like a new entrant, but one with a lot of experience.There have been some big changes whilst I have been inactive, not least in the number of online brokerages fighting for every dollar.But many things stay the same, at the heart of which is one, I guess, unbreakable truth. Trading is basically a very simple business, with any trading stocks, options, FOREX, whatever only really involving three steps:1. Find several possible trades evaluate them and decide which to go for,2. Calculate how much to trade, and decide at what points to enter and exit the market3. Keeping an eye on, or monitoring, open market positionsNow, these three steps were basically all there was to it a few years ago, and they still And, guess what, people are still getting totally bogged down right here, at this early stage of the trading process, generally, for one of two reasons.The first possible reason is that they simply are not aware that these are the steps involved in the trading process, or (the second reason) they have no clearly defined rules for actioning these steps. Thus, less experienced, more nervous, traders can often take hours to evaluate a small number of potential trades.Experienced day traders, on the other hand, are fully aware that, with little time available to execute their trading, they must have a process plan and they must stick to it.

A day trader will set out his (or her) plan of action something like this:
1. Recognize the opportunity, enter the market2. Stay in the trade for as long as possible if it is going for him or3. Get the heck out of there with minimum losses, as soon as it is clear it is going to go the wrong wayThat s it! That s essentially what a day trader in any market was doing years ago, and that is what a day trader is still doing today, with little or no change to their working practices brought about by the vastly more advanced technology of today.Savvy day traders learn very quickly that they must plan ahead of time, so that they are in prime position to take full advantages of the opportunities that occur in real time.Thus, day trading, which on paper at least is a pretty dangerous and risky manner of working markets is, in fact, one of the most disciplined trading schools! By the nature of market movements and the way they operate, day traders simply cannot afford to run their trading business on a wing and a prayer!

Forex Signal, Forex Signals Advice

There are lot's of Forex signals providers out there. New Forex traders might be thinking of looking for a reliable Forex signals provider. Is there any reliable Forex signals providers available?

Personally, I will say do not pay for Forex signals. Think about it - if a Forex signals provider sells Forex signals for living, you can doubt their Forex trading skills? Or else if they are pretty good in Forex trading and making lot's of profit, I am wondering why do they still bother to sell Forex signals for money. Thus, what would be the value of such Forex signals providers? The answer is ZERO.

There are Forex traders who have been relying on Forex signals arguing those Forex signals providers really help them making money in Forex trading. These Forex traders can even show their Forex trading logs as evidence. After some though, I came out with the assumption that assuming I am the owner of a Forex signals provider, in order for my business to be in black, obviously I need some satisfying customers......

Full article available at: http://www.forex.labuan.net/forex-signal.html

What is a Forex Broker?

The Currency / Foreign Exchange market is the world s largest and most dynamic market. Nearly $1.8 trillion is traded every day. The word Forex is derived from the words Foreign Exchange.

A Broker is an individual or firm that acts as an intermediary between buyer and seller. Forex brokers are firms that deal in foreign exchange. The foreign exchange market is quite similar to the equity markets, except that typical forex brokers do not charge a commission. However, forex brokers are required to have a license.

Forex brokers earn money from the spread (also called pip ). The spread is the difference between the prices at which a currency is bought and sold. A pip is the smallest price increment in a currency. For example, in Euro/US Dollar (EUR/USD), a move from 0.9008 to 0.9009 is one pip. In US Dollar/Japanese Yen (USD/JPY), a move from 127.41 to 127.42 is one pip.

Forex brokers can be compared on the basis of the spread they charge. Most forex brokers publish live or delayed prices on their websites so that the investor can compare the spreads. It is, however, necessary to check if the spread is fixed or variable. Variable spreads appear small and attractive when the market is quiet, but when the market gets busy the forex broker widens the spread, meaning that the investor will gain only if the market is favorable.

Forex brokers are usually tied to large banks or lending institutions. This is because of the huge sums of money traded in the foreign exchange markets. Forex brokers are required to register with the Futures Commission Merchant (FCM), and are regulated by the Commodity Futures Trading Commission (CFTC).

A new trend among forex brokers is the emergence of online forex brokers, who offer trading facilities to retail traders using advanced technology. With these facilities, anyone with a computer and an Internet connection can trade in the forex markets.

Online Forex -Currency Trading

Foreign exchange currency trading is also known as Forex trading, or FX, and has no single physical marketplace like the New York Stock Exchange does on Wall Street in New York or the Tokyo Stock Exchange does in Japan. The New York Stock Exchange and the Tokyo Stock Exchange online traders are limited to making purchases during the actual trading hours governed by New York Stock Exchange hours or the Japanese Stock Exchange s Tokyo hours. In contrast online Forex trading gives traders access to the online Forex trading community through an electronic series of different online trading platforms. Online Forex trading and online accessibility are nicely compatible because the world s foreign currency exchange market is a 24-hour market, and the internet makes online forex trading a 24 hour possibility open to anyone with a computer, a telephone line and money. Anyone, any corporation or any bank can log onto an online account at any time, and trade foreign currency through online forex trading.

Online forex trading is primarily the purchase of one currency from a particular country, using the currency of a different country. This exchange involves currency from two different countries at once. It can mean purchasing Japanese currency with Australian currency or purchasing German currency with Spanish currency. While that sounds simple, in fact, approximately $1.9 trillion is traded on Forex daily, making Forex online trading the biggest exchange worldwide. Although anyone can participate in Forex online trading, the key players are usually banks commercial and investment and exchange traded futures and registered futures commission merchants.

Forex Charts, Forex Trading Systems - No easy way to find Forex Charts and Forex Trading Signals

If you re new to forex, you re going to need forex charts. As you develop your forex trading system, use the demo accounts that many trade brokers provide. They ll generally provide free forex charts as part of their demo forex trading system.

Search the Internet for forex or forex charts. The choices will be a bit overwhelming. You will have to do research to get a good match, both with the forex trading system and the forex charts themselves. You may have to mix and match to get your specialized needs met.

As you refine your skills, you ll find you re more discerning of the tools. And you ll begin to notice more features on the forex charts. The forex trading signals may be quite standard on many sites, but how they integrate the forex trading signals with the forex charts may not function well with your style.

Search and you ll find forex trading signals that fit closely with your requirements. Your forex trading system will become more and more refined with practice. And that s the best way to learn forex practice with a demo account.

Learning the forex charts and the forex trading system of different brokers will be frustrating to start. Work through it, it will be worth it. Don t accept the first one you try. Or even the one your friend uses. Forex trading system and forex charts are very personal. And you re going to be spending a lot of time together. Get comfortable.

The only way to pick a forex trading system and forex charts is to take recommendations and suggestions from articles, trainers and friends. But then make it your own. Find a perfect fit for your forex trading system.

Successful FOREX Trading - Is Based On 3 Character Traits Do You Have Them?

The internet has seen a massive growth in both the quantity of news and speed of delivery and many novice traders think this will help them win, however in most cases it simply helps them lose and lose quickly.

If you are looking at economic reports and news you need to consider one important fact first:

50 Years ago, 90% of FX traders lost and today the figure still remains the same - despite the advances in news forecasting and speed of delivery.

Most novices who watch news reports or trade off economic reports and fail miserably in their FOREX trading.

Why?

Firstly, they don't realize that news is discounted by the market immediately and this is more true than ever today with any news available in any corner of the globe in a split second.

Secondly, if they see a so called expert talking about why a currency should fall it may sound convincing but that doesn't mean the market will go the way they say.

Sure, it's a convincing argument but these guys are giving opinions and are NOT traders.

An economist can always tell you why something has happened in hindsight, but is not so clever about telling you why something will happen.

Investors Determine Price Direction!

The fact is the news is not important in itself - it's how investors perceive the news that's important.

Humans make subjective judgements and all their opinions combined move the market price.

A Better Way To Trade

For most novice traders a better way of trading is to simply follow charts and use technical analysis.

As the marketing is a discounting mechanism you can simply assume all fundamentals will show up in the price instantly.

You can then simply follow the reality, rather than trying to second guess where currencies will go.

You will trade on the reality of price rather than predicting it.

Keeping Emotions Out of Trading

When you hear a convincing argument it's easy to let your emotions get involved and trade with the losing majority.

Technical analysis allows you to set back from the market and see things without emotions and get a clearer perspective.

The fact that the news is bullish or bearish for a currency makes no difference on where it will go.

If you take major currency changes the fact is:

They tend to fall heavily when the fundamentals are most bullish and rally when they are at their most bearish.

Will Rodgers famously said:

"I only believe what I read in the papers"

He was joking of course but many FOREX traders do exactly this - believe what they read and hear and then lose.

Trying to trade off news stories for most traders is a complete waste of time and energy and sees them lose - don't make the same mistake.

Online Forex Trading - 4 Simple Tips To Make Money Fast

Here are some simple tips to help you make money fast in online FOREX trading that are simple to do and will help you build wealth quickly.

So what do we mean by make money fast?
Here we are looking at tools that will help you make triple digit gains annually, which would put you up with the top traders and in the elite 5% who win consistently in online FOREX Trading.

We are assuming here that you know the basics of FOREX Trading so here are your tips:

1. Be realistic

We all want to be millionaires overnight but be realistic.

If you aim for gains consistently of 100% per annum your up there with the best traders in the world.

Don t be in too much of a hurry; if you are then you will wipe yourself out.

2. Accepting Risk

Most novice traders who trade FOREX try to restrict risk so much that they actually give themselves no chance of winning.

Their stops are to close and GUARANTEE they will lose.


Online FOREX Trading is all about taking calculated risks.

This means if you want to make money fast you should risk up to 10% of your equity per trade.

Many people will tell you to risk 2% but if you re a small trader trading $10,000 that s just $200!

This will simply guarantee you re stopped out most of the time.

3. Running profits

It s a fact that most traders simply cannot run profits.

Many traders are fantastic at picking market direction but lose because they take profits to early!

This is a major problem.

A trader gets a profit and gets excited, the bigger the profit becomes the more he is tempted to take it before it gets way eventually, the trade is snatched and banked.

The trader makes a thousand dollars and then sees it run onto to make 15 20,000 or more and he s not in.

If you want to make money do not move stops to lock in profit quickly.

Make sure your stop is far enough back to take into account normal market volatility - You need to take short term swings in equity against you and focus on the longer term.

3. Trading Method

There are many different methods to make money in online FOREX Trading and if you are looking for a method that works well then a breakout method looking for long term trends is ideal.

The advantage of using a breakout method is you have relatively low risk and great rewards.

4. Patience

If you are trading then you can t hurry the markets.

They will give you opportunities but they can t be forced and you can go weeks or months without seeing any.

Learn to be patient and only trade when your system tells you to.


To make money fast you must keep risk low but you must also run profits for all they are worth to emerge a long term winner.

More About Forex Trading

Forex Trading or FX Trading is a self-effacing recognized market that produces massive profits for those who are well-known with how to get benefit of it by winning a forex trading course or a FX trading course. Once it was open to only for restricted club of banks and other opulent investors. But now it is open to all small investors who want to go for small investment. As more people obtain occupied by taking Forex trading course or a Forex trading course, the foreign currency trading markets would become unbalanced when FX traders get rich! There are lot profits to forex trading.

Forex is the currency trading market that is the main and most fast developing markets in the world. Trading the Forex market is extremely safe for the reason that you could by no means be defeated more than your prime investment. Forex trading companies allow a usual take profit option, which in turn permit the investor to preset the rate at which you want to see it and you do not have to wait online endlessly for monitoring the trade if this way is being followed.



Opening a forex account is as simple as filling out a form and presenting the necessary ID. Once your account has been known, you could fund it and begin on trading. Each broker has their private set of forex software tools to help in building transactions, but there are some trading tools that are general to all forex brokers. Trades are usually commission free, in the sense that you could make many trades in one day without worrying about incurring high brokerage fees


Forex trading is completely different from the forex stock market in ample ways. Unlike in the early days when it was necessary wide investment to get started with forex trading, the trading of present times could be done with just a computer linked to the Internet and a few bucks in soothe of your home. Almost every transaction could be easily done online in your spare time, apart from if you desire to make it a full time career. But with all the ease, the fact is that the forex trading is an extremely risky business and it needs lot of knowledge and skills to trade in a lucrative way.

Technical Indicators In Forex Trading: Understanding Their Limitations

Forex traders often look at technical indicators such as Bollinger Bands, Pivot Points, MACD, Moving Averages and the such to help them determine where to enter or exit trades. Using technical indicators is fine, however many traders overemphasize their importance or just plain misunderstand them.

Many forex traders think that they can simply download an indicator and then mechanically apply it into their trading and do so profitably. This is just a plain illusion. Successful traders realize that there is a lot more to using indicators than just asking them to generate buy/sell signals or pin-point exact entry points. Technical indicators for them represent just one part of their trading strategy.
Let s take a look at some of the reasons why you should not put all your faith into those sometimes confusing little indicators.

Take Moving Averages (MA s) for example. They are "supposed" to show the direction of the trend. The most common and often used are the simple 200day MA, 100day MA, 50day MA, 35day MA and the 21day MA but they are only valid on daily graphs. Some forex day traders say that a good signal is when the 50day MA is crossed by the 13day MA and that when this occurs you should trade in the direction of the cross.

The problem with this (apart from the fact that it only works on daily graphs) is that these types of "crosses" do not occur often enough for traders to exploit them. This can often lead to a situation where traders are seeing what they thought was a cross now reverse and uncross. Even worse, it can lead to a situation where day traders are "chasing" and trying to anticipate a cross. If you are doing this, you are distancing yourself from the market which you are trying to trade. Not only are you trying to guess what the price is going to do next but you are guessing what the indicator, based on the prices, is going to do next.


Other problems with technical indicators involve issues with the quotes and prices given to you by your broker. Forex brokers are market makers and as such different brokers will give you different quotes and prices at a specific point in time. Naturally, a different price could lead to a situation where different traders, trading the same market have the same indicators giving them different responses. That s how arbitrary technical indicators can be.

Finally, a lot of these technical indicators were developed by people trading the stock market. With the growth of computers and software packages that incorporate these indicators, technical analysis has become very popular and spread to other markets such as the forex market. What currency traders should be aware of however, is that as these indicators were developed in a time where real time information did not exist. As such, the limitations of technical analysis becomes even more exaggerated in forex trading not only is technical analysis an interpretation of historical events but it becomes even more so in the forex market, a market moved by real time events.

Conclusion

Successful forex traders understand the limitations of technical indicators and realize that technical analysis should incorporate just one part of their trading strategy. In a recent international Forex market event visited by the major banks and institutions - the main players that influence the foreign currency market a survey was done to better understand what analysis they use. The results might be surprising to some tarders. The survey showed that a mere 26% use technical analysis and indicators compared to 41% who said they use fundamental analysis.

Forex Trading Systems

The foreign exchange currency market is the largest market in the world because it trades up to $1.9 trillion daily. There is an enormous scope of trade in Forex because it is global, and is open twenty-four hours a day, making the presence of buyers and sellers constant, and the fluidity of the market, grand. The market is ever present because it does not have a central venue like Wall Street or Tokyo. It is a series of internet and telephone communications between buyers and sellers and it is not overseen by any one main authority like the Securities and Exchange Commission. The Forex is made available to traders through platforms.

Traders of Forex commonly favor Forex trading systems. Forex trading systems are methods of trading currency based on ideas that have rules associated with them. Forex trading systems are a merging of theory and practice that have been tried and tested over and over, and the results of the tests have been documented.

Some Forex trading systems are based on the idea of going against trends. Other Forex trading systems are based on the idea of going with trends. Some Forex trading systems are based on the idea of tracking breakouts of a particular currency and these Forex trading systems rely heavily on the averages of a currency s highs and lows, and utilize Bollinger bands that track the average highs, the average lows and the moving average of the two.

Traders utilize Forex trading systems in order to work against human characteristics that can hamper trading, like greed, addiction, impulsivity, compulsivity and fear.

Online Forex Trading 10 Essential Tips For Novice Traders

1. Don t believe the hype

You will read a lot of information on how easy FOREX Trading is and how you can buy an e-book for $100 and become rich this is not the reality.

While there is some good advice out their you can get all the information you need free on the net.

If you want to read about the top traders of all time and get advice from traders who have walked the walk -rather than just talk the talk, go to Amazon and pick up some books from the top traders of all time.

2. Don t day trade

The biggest myth of FOREX trading is you can make money FOREX day trading.

You can t!

Many novice traders fall for this myth and lose quickly.

All short term volatility is random and there is no way of predicting where prices may go, so you may as well flip a coin.


If you want proof that FOREX day trading systems don t work ask a vendor for a track record of real time profits over the long term and you won t get one PERIOD.

3. Work smart not hard

You don t need to work hard in FOREX Trading, you need to work smart.

This means focusing on the RIGHT FOREX education and learning FOREX tools that work.

You can easily learn to trade FOREX markets in a couple of weeks.

You just need to focus on the right information.

You don t get rewarded in FOREX trading for working hard, you get rewarded for being right and that means working smart.

4. Risk = Reward

If you don t like risk forget currency trading and do something else.

Many traders simply want to avoid risk as much as possible, putting stops to close, or snatching profits.

If that s you you will NEVER achieve currency trading success.

You need to cheerfully accept risk and loses to succeed in online FOREX Trading.

5. Do It on your own

Only you can give your self success.

You need to be confident in your ability to succeed and if you are, you will have the discipline to apply your method for long term gains.

If you follow someone else you will not have the right mindset to succeed.

You will lack discipline and will throw in the towel as soon as a string of losses occur.

Do it yourself and your chances of success are enhanced.

6. Get a simple method

Simple methods work better than complicated ones, as they are more robust with fewer elements to break in the face of ever changing market conditions.

There is no correlation between how complicated a system is and how much money it will make.

If you are starting out in currency trading, use support and resistance, a breakout methodology and some confirming indicators and that s it.

The above way of trading is perfect and will help you get the big profits from the big moves.

7. Trade Breakouts

A timeless way to trade FOREX markets.

It works and will continue to work, simply read out other articles for more info on this simple but powerful methodology.

8. Be patient

You don t get rewarded for how often you trade online FOREX You get rewarded for spotting and acting on the best trades and these don t come around every day.

Be patient and only trade FOREX signals from your system don t be tempted to trade for the sake of trading.

9. Be realistic

You can make a lot of money in FOREX Trading so what s realistic?

The top traders compound 50 100% per annum so this is a good number to aim for.

These gains will compound quickly and build real wealth longer term.

Be realistic and don t try to get rich over night

10. Know your edge

If you understand the other 9 points, you will understand that you need an edge to make money longer term in online FOREX markets.

If after you have devised your FOREX trading strategy you don t know what your edge is - you don t have one!

You need to know what your edge is over the majority of losing traders to win.

Final words

If you incorporate the above 10 tips into your online FOREX Trading plan, you will be well on your way to making money in the worlds most exciting investment market.


Welcome to the world of FOREX trading!

How To Make Money With Day Forex System Trading

For those unfamiliar with the term Forex, refers to an international exchange market where currencies are bought and sold. The Forex that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency. At any one time, more than $2 trillion of currencies are transacted every day on the global forex market.

What is helping day forex system trading to reach that distinction of being the largest tradeable market is that forex is tradeable at any time of the day for every day- 24/7 ! Compared to stocks and shares or commodity markets that have specific opening and ending trading times. By necessity, forex markets are available for trading anytime since price of currencies changes and fluctuates everytime. This makes it possible for the trader who has the acumen to profit from these price fluctuations.
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications and internet. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon. In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers. It is quite common practice for investors to speculate on currency prices by getting a credit line, and vastly increase their potential gains and losses. This is called marginal trading.

Another characteristic of day forex system trading that can catapult you into wealth is the application of the system of leverage. In wealth creation, leverage accelerates your ability to create wealth from a small amount. Many people are attracted to trading currency on margin because they can get leverage on a margin account.

Day forex system trading is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on forex means that potential profits are enormous relative to initial capital investments. Another benefit of Forex is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in day forex system trading short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.