ALL ABOUT TRADING

In order to generate high profits, investors have to use a powerful filter system that promising prospective of less market-separating and constellations in this way, the ratio of trades, ending in the positive to those that are closed with a loss, improved. It is also necessary for sustained success in the Forex market is a professional dealing with profits and losses. Just trading beginners have at this point often substantial deficits: Profitable trades are closed too early deficit positions taken too long. The formation of mental accounts thereby leads to poorer trading profits.

With automated trading system of the pitfalls that lays the human emotion to the trader in the path to success will be eliminated. It is for these systems to rule-based signal generators. Following a tried and tested set of rules while certain market constellations are filtered and recommended to the trader as a promising position. Same time, the Forex firm strategy, when a position is closed and the trader takes from this often very difficult decision. Forex signals are created by professional providers, so that the development of a separate trading system is not required. Good systems can be optimized at a profit factor and recognize a valid historic Test series, which has proven successful in different markets.

Trading strategies are classified into three groups: trend following strategies seek to identify existing market momentum and join them, escape strategies use chart technical events to predict future price trends and try to swing trading strategies, in a very short-term market movements that run counter to the overall trend to participate. All three approaches have already been set in the past proved that they are able to generate profits in Forex trading.

The prosperous currency market always brings out new tools for traders. One of the most innovative tools that the entire financial industry has produced in recent years, so-called Box-Options. These are digital options, investors in shape of a square in the chart of their Forex software to draw. Traders can then determine whether the course is designed to meet or fall short of the box – and receive, if they are correct to a premium. Box-Options are used in particular in the temporal context of market-relevant news.

Forex Platform For Forex Trading:

A Forex Trading describes an exchange in the securities of a country’s currency into another currency country. This leads to several points that all goes without incident. Very important here is always a Forex platform (also known as Forex Software) on which you can always rely. How reliable is a Forex platform comes down to the Forex Broker. The broker is the person by means of whom a customer makes the purchase or sale of securities. Then here come some aspects that should be taken in selecting a Forex platform are considered. A normal point should provide every platform that customers can trade in real time. This means that they have an exchange to get the price exactly where they have decided to purchase at the time. Some time later, the price may have a currency that is changed again. The platform should every day around the clock are available.

The entire platform of Forex functions are to be given, if possible, automated and carried out of commission can. Good platforms are already internal Forex signals. Business travelers are even known to travel a lot and therefore they should be offered the possibility that they can access on the go using a PDA or mobile phone on their forex platform. A Forex platform can also be slowed down if too many users to the PIN / TAN input prompt (similar to the current account). Decisions are made in Forex trading very quickly and the profits are made within seconds so that the customer should choose the Forex platform so that it can only login with their login and password must be out there without a 128 encryption for maximum safety is provided.

Forex Charts:

A first-class rate of supply to success in the fast Forex market is essential. Since all the good Forex brokers provide ongoing courses and require users to pay no fees, investors are able to act safely. Important is not only the supply of price data, but also their graphical representation.

Charts are in the Forex Trading is just as important as in equity or derivatives trading. On the trading platforms are so extensive charting tools that allow the market to be analyzed. Who makes his trading decisions based on charts, should make themselves familiar with the first major display formats and their properties. Below, therefore, the most important charts are presented.

In practice, the representation that is seen in the press most often is never used: line charts, which are the price of a currency pair at the end of a certain time period, are in Forex trading and also trading with stocks and other assets inappropriate and remain an instrument for very long term oriented investors.

   a- Candles and bar charts:

The most common forms of presentation of charts in forex market, bar charts and candlestick charts (also called candlestick charts). Bar charts consist of a vertical line, the bar – are on their left and right side short strokes. The upper point of the bar marks the highest rate of the considered time period, the lowest of the lowest. The line on the left side of the bar puts the first course of the observation period, the stroke on the right side the past.

Bar charts can quickly tell whether a market is in an upward or a downward trend is in and also give information as to how the price has moved within a certain period of time. Unlike line charts, they have not the prices that occur during an observation period of existence, under the carpet.

Candlestick charts owe their name to their design. They consist of a body that indicates where is located the opening and closing of an observation period and one designated as a wick extension above and below this body, which indicates the maximum or lowest point of the period. Depending on whether the close is higher than the close of the previous period real body are either white (rising prices) or red (falling prices). Other color schemes are possible and many Forex brokers standard.

   b- Logarithmic and linear scale:

There are two ways to display a chart the course. As in other markets, resulting also in the forex market at times optical distortions that may lead to wrong decisions in Forex trading. At this point, therefore, in short, the difference between a linear and logarithmic scaling are explained.

The linear scaling treated equally and every price movement is a pulse of 50 pips the market 50 times the “way” in the chart as a movement to a Pip. Unlike the logarithmic scale, this makes use of a specific point on the chart – the first course on the left side – as a fixed point and calculated movements of the course on that. If the rise in price for example, starting from the first fixed point by 50 pips and then in a second move by another 50 pips, the chart sets in the second movement of a lower back stretch than the first. The logarithmic scale measured by reference to the fixed point, the percentage price changes relative to the fixed point.

If the rise in price, for example every day at 10 pips, the chart is as ever-upward trend flattened. Case of linear scaling, the trend would be addressed as a constant, thus creating an upward bias. For this reason it is recommended to use in Forex trading is always the logarithmic scale.

The New Forex Dimension:

In addition to stocks, bonds, real estate and raw materials has in recent years, an additional asset class in the reflection position of private investors: Foreign exchange trading is the investment landscape of the 21st Century have become indispensable.

The Forex market is setting new standards: Around the clock and around the world actively, infinite cash and as soon as no other market offers a new dimension of the Foreign Exchange trading. Not wrong, the foreign exchange market in the world as the fairest means: amounts and because of its size-daily (!) Is trading at about 1.5 trillion dollars – manipulation by individual actors are excluded.

The currency trading does not take place at a central location but will be handled directly between market participants. Among these are found not only banks and insurance companies to states and their central banks, institutions like the International Monetary Fund and institutional investors. The fact that even the ordinary private investor access to the Forex market is relatively new: the trading of specialized providers that act as market makers to offer their customers at all times and selling prices for the major currency pairs, private investors can at the ups and downs participate from Euro, Dollar and Co..

The fairest market in the world makes with regard to the necessary capital to its name: Unlike the stock or bond market, where at least five-figure sums for trading are required, investors trade the forex market with 1000 € or even less. The platforms provide the opportunity to work with large financial levers in the style of renowned investment legends and thus to generate immense profits. The handling is via the Internet from any computer in the world accessible from trading accounts here easy and requires only a moderate learning curve.

Unlike in other asset classes can benefit from Forex traders in any market situation of rising and falling prices equally – regardless of economic conditions and the situation on the stock and bond markets.

Forex Account:

   a- Forex Account: By clicking in the biggest market in the world:

Who wants to act in the foreign exchange market, it needs a forex account. Since each account is not suitable for all investors, first, a broker comparison is carried out. Here, the underlying personal trading goals have priority. The following questions should first be clarified:

• How often is traded on the Forex account?

• What sales are achieved?

• What leverage is to be possible on the Forex account?

• What software equipment is required?

• What claims are made in terms of regulation and deposit insurance the broker?

• What access routes should offer Forex account?

• What payment options should provide the Forex account?

• If the broker a Free Forex Demo account available?

   b-Forex Account Opening note: safety standards!

In the forex account opening, investors should ensure the observance throughout the entire registration process, all required safety standards. There is little, if a Forex account is fully furnished, within a few minutes, but not the security of the account, including credit guarantees.

Reputable brokers can deposit and account management only after a legitimation of the account holder. This is done mostly by mail Ident. Some brokers also request a copy of identity card.

In any case, to open an account to complete various forms required. Investors must be aware of the risks of currency trading. Reputable providers not conceal, that significant losses can occur! In addition to the risk considerations should investors are getting the full value of Services to the face.

Nevertheless it can be immediately dealt with many brokers, to some extent: The preliminary activation of the forex account and a small deposit by credit card is often possible.

   c- Forex Demo Account Try it first, then deposit:

Investors can save yourself the laborious procedure of opening Forex account, if initially only the functionality of the Forex software to be tested. Many brokers offer a prospective free Forex demo account. The software corresponding to the full text of a commercial account – the balance is only virtual.

A Forex demo account offers several advantages. Since this is not a real account, it can be opened with a few mouse clicks. Depending on the broker to do not even need the full contact details are given. Often, a simple e-mail address to send then a link to the Forex demo account is opened.

If you want to use the forex demo account for a longer period should pay attention to a possible time-limit: Some brokers, the forex demo account deleted after a period of two weeks upon ordering.

Who wants to test with a demo account not only the platform but also a trading strategy should pay attention to potentially different conditions from the real Forex account. It is possible that brokers assume on their Forex demo account a lack of spread and that this turns unrealistically low.

   d-Forex Account: Base currency is not always EUR:

Many brokers do not lead their forex account in euros, but in a different currency. In most cases, these are the U.S. dollar, British pound or the Swiss franc. Some brokers may also be selected base currency of a basket of currencies. Then besides the three currencies in general and the yen to choose from.

For most customers, the management of the forex account is recommended in €. This is for a simple; on the other hand is not the risk of price losses, if not traded. Investors should make sure whether to be charged for the conversion of the account balance in a currency other fees.

Last but not least: If you want to trade the Forex market, the deposit can make to his Forex account without having to save elsewhere need. Forex Trading offers good profit opportunities, but is also associated with a substantial risk of loss. Therefore, no money will be deposited to the forex account that is needed for unpaid bills, overdue loan rates, etc.! Lack the money, can with a Forex demo account without delay start of trading on the paper.

Online Forex Trading:

Due to the continuous downtrend in the stock markets and associated losses are more and more disappointed investors in securities and look for suitable alternatives in which one can achieve good gains and a trade worthwhile. In this context, it is important criteria for investors that need to be met. These criteria are, for instance, the clarity of the product portfolio, or even market transparency. An elegant solution offers the trading of currencies, or the trade in currency-denominated debts, so the foreign exchange trading. Thus it can be made possible, above all, private investors in real time their commercial activities, offer more and more online banks but also other providers, their customers the option of online Forex trading at. Depending on the service provider can be traded around the clock, even on Sundays. Excluded is each only for a country whose currency is being traded, current holidays. Trading foreign exchange on the Internet offers the advantage that the costs incurred by this, most are not as great as if you were to do the whole offline. Another advantage of online currency trading is that most vendors offer a demo version here first, which is not traded with real money. This will facilitate the entry and you can become familiar with the workings of the system and the market.

Advantages of online trading Forex: Completed one’s foreign exchange transactions online, there are a number of benefits that are clear. One of the advantages that can be received by the possibility of real-time trade over the computer screen, even the smallest changes, and thus also gains can be achieved. In this context, scalps, the term “an important concept”. When scalps for the trader is possible to transform its operations in profits, even if only 5 pips or held even fewer large jumps. As a pip is the smallest tradable unit on the market is called. Because the transactions are conducted online, the so Trades can be offered much more cheaply than is possible with such an order via phone would be. In addition, the online foreign exchange trading is much faster and speed off in this industry around and on the when it comes to profits or to profits. Not least because of the above advantages, but also because of the Forex Market is the largest financial market in the world; the act enjoys a growing popularity in foreign exchange. This market is about this is not bound to other markets (for example, of the ever-declining stock market). Regarding the above-mentioned transparency, in conjunction with the Forex market ever spoken by an honest market, as will be disclosed, for example, interest rate decisions of central banks directly and in real time. The online foreign exchange trading for institutional, but also for private investors, an ideal alternative to trading in securities and warrants. Already in the United States and Australia experienced a boom in the Forex Trading, which is comparable to the New Economy period of 90 years in Germany. In the foreseeable future this trend will also spill over to us. So it makes sense to be one of the first to participate in this market.