Forex Trading Methods - Get Back to the Basics!

It's hard to believe, knowing what I know now about forex that many people out there are trying to learn the most complicated forex trading methods. When I see people scour the forex forums to try every forex system that involves using a hundred indicators, I can't help but shake my head and think "that used to be me".

For the people that are in this stage of forex trading, let me ask you a couple of questions. Have any of these methods led to any profits? Do you actually understand what these indicators are telling you are you just blindly following them because that's the system?

You see, anybody can make a system with these lagging indicators like stochastic and moving averages. It's not complicated. But the thing you have to ask yourself is what do all these things mean? What does this have to market movement?

I found that it's very difficult to trade successfully any forex trading method, if I don't understand the underlying reasons for a trade. I know these magical indicators seem like the easy way out for trading forex, but it's really not. If you don't believe me, just think off all the time people waste searching for the ultimate "holy grail" indicator.

If you take the time to learn that the currency markets have patterns which are repeated constantly and can be taken advantage of, you start to see the true energy of price movement. It doesn't matter which time chart you are looking at, these patterns have something that all lagging indicators don't: The ability to forecast.

Jim Buhs has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex successfully was on a plain chart with no indicators, his profits soared.

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The Forex Killer System - Importance of a Good Trading System

The FOREX market is one of the largest markets in the world, and in turn it is very appealing for many keen investors to place their money in. The market never sleeps as it operates 24/7, all year round, and there are no regulatory authorities that oversee the market, also no individual entity has enough power to heavily influence any particular currency pair these days. The best thing about the Forex market is that there are no commissions involved, brokers make money through the spread, and also there are no middle men, that along with the fact that the Forex Market is extremely liquid makes it very appealing to all investors.

If you have ever traded the Forex Market before, or for that matter any Market, you would've realized that it is essential to obtain or create a good trading system to help guide you in the right direction. Trading the market without a good system or a predetermined plan is the number one way of setting yourself up for failure in the world of Forex, you might as well start gambling. Now getting your hands on a decent legitimate Forex trading system can be a fairly complicated task in itself, these days the market has been flooded with all different kinds of systems. Some have been thoroughly tested and are proven to work, while are others are just simple systems that you or I could've created with enough years of experience in the market.

One product that has just recently been released to the general public is a very unique system entitled Forex Killer; it has been thoroughly tested over the past few years and has proven to generate consistent positive results over the long run. The system was developed by a former currency trading advisor who worked for the Deutsche Bank, so essentially the system has been designed by professionals, who allow you to become aware of the insider perspectives on the market. The system is very easy to install and you can begin using it within a few minutes, it doesn't require any signal services, and you can also test it out on a demo account to see if it is profitable before risking your own money. Forex Killer includes training videos, and is compatible with all current trading platforms, you are also offered a lifetime of updates free of charge.

The great thing about the software is that it comes with a full 60 day money back guarantee; whenever you are looking for a trading system make sure they have some sort of a guarantee, this way you are ensured the system works and is not some cheap system developed by any youngster who is trying to rip you off. Therefore test the system out on a demo account for 2 months and if you cannot see yourself generating consistent profits, then simply return it and get your money back.

The most appealing part of The Forex Killer software is that after you purchase it, there is very little risk involved as it is a proven system, and you can set it up in a few minutes to begin practicing immediately to see if it can make you some easy money off the Forex Market. Forex Killer is a tool that if used properly it can seriously improve your overall trading results. To obtain a detailed objective review of the software check out this Forex Killer System Review, to learn how the system works and how it can benefit you as an online Forex Trader

3 Things I Learned That Made a Me a Better Forex Trader

Forex Help is Finally Here

Tired of losing money and everyone is always talking about how much money they make in the currency market? I know I was. I have been trading for quite a while now and have learned quite a bit. There was time when I thought I knew enough to trade successfully in the Forex arena but a quick loss of a large percentage of my trading capital made me humble very quickly! Fortunately I did not lose everything and I came out of it a lot stronger and over time I made good money. Here is what I learned and the lessons which will help your trading:

1. Do not be greedy. You have probably heard this before and it may not be all that sexy to talk about but it is worth acknowledging. There is NO faster way to lose your trading capital in the Forex market then getting greedy. Know before hand how many pips you are going for and why you are getting in a move. You must also know when you are getting out and no matter what STICK TO IT!

2. Ignore fear. Once you have practiced on a demo account and know what to do - do it! If you lack confidence it will kill you, period. Believe in your method and do it. I have included a link to a review site for reliable Forex software programs, these will really help any trader's confidence.

3. Have a mentor. You should trade with someone that has proven themselves in the forex market and if you cannot find a mentor then use a good software program. This is priceless ... trust me!

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Euro vs US Dollars Predictions - Where Is This Forex Pair Going?

We all know that it's difficult to predict where any currency exchange is going, not to mention the Euro Vs. Us Dollars rate since these two currencies represent the 2 biggest economic blocks in the world. However, I will try simply because I believe that there's a lot of money to be made, and lose in trading of this forex pair. Indeed, I believe that some people are going to lose their shirts in the near future.

Anyone who has followed the Forex market in the past few weeks has noticed that the us dollar has plummeted versus the Euro. In fact, the Euro has recently broken records high, and the dollar is crashing against all major currencies in the world. This is due to the financial crisis which the US is facing and which leaves a great deal of uncertainty over the markets.

What will happen between the Euro and the American Dollar?

In the past week I've heard many people say that the worst has passed, and that the dollar will now strengthen gradually. I believe this is false and that these people will lose a lot of money. As far as I can tell, the economic indicators support the continuing strengthening of the euro versus the dollar:

• The European economy has been least affected by the current crisis in the US financial sector
• The European interest is much higher than the American, and while the Fed will likely continue to lower interest rates in the near future, the European central bank shows no signs of following suit.
• We have likely not seen the last repercussion of the financial crisis in America

All of these things say one thing: The euro will become stronger Vs. the US dollar, and not the other way around. I would hold a position on the Euro. It will likely continue to make profit in months to come.

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John Drummond works from home. He writes often on business, trading, and finances. There is more than one forex trading software. To read John Drummond's review of the 2 best ones, click here: Automatic Forex Trading Systems.

Forex Killer Vs Forex Tracer

Among all forex autopilot software available in the market, Forex Killer and Forex Tracer are quite popular in terms of sales and user feedbacks. Here we plan to compare these two forex autopilots to find out which one is the best. We start with Forex Killer. The software comes at a moderate price of $89 along with a 60-day money back guarantee. It comes with the downloadable installer, which means when you click on the download button in the website after making the online payment, it gets installed in your PC. The earning potential and success rate it presents is quite good. When tested in real trading conditions with an initial sum of $200, it returned a profit of around $702.

The software offers quite a few exciting bonuses for the purchasers. The first is the Forex e-book, which you can consult for developing the basic ideas on forex trading. Forex Killer is also backed by a non-farm-payroll strategy. With every package you get an exclusive money manager applet and risk calculator. The software also claims to support other winning forex trading strategies developed by existing users of the software. The instruction on setting up and installations are quite easy to follow, and the system has the potential of earning profit, which, however may be less than Forex Tracer.

Forex Killer is said to be the only working forex signal generator. If you have this autopilot with you, you won't need any supplementary signal services anymore. For a fast changing market like forex, the accurate signals and timely delivery of those signals are both important. If you have your own exclusive forex signals you have an edge over other traders. Forex killer is capable of doing so. The software can be used by the beginners and professional traders similarly. With just $500 in your account you can start trading with Forex Killer. It has a unique dual mode. It works with any existing automated trading platform and also works as an independent program.

But when we compared the ease of operation of this software with Forex Tracer, we were not very happy. The operations took longer than usual and definitely more than Forex Tracer. The software also expects slightly higher level of learning from its user which may prove to be a bit frustrating, especially for the new investors.

Forex Tracer is a new autopilot that is catching the fancy of the forex traders quite fast. A $200 initial investment yielded $1,345.34 profit. This highly profitable system lets you earn $18,000 in less than nine days. When tested under real trading conditions, it returned greater profit than Forex Killer. This universal software can be applied on any currency pairs and can be traded from any corner of the world. The ease of operations making the program extremely appealing to the new traders. Weighing the features the software has the $97 price seems to be quite reasonable. You need not have any specialized computer skill to run the program. And, finally if you are not happy with its performance, take your money back within 60 days. There is practically no risk in buying Forex Tracer.

Read more on Forex Autopilots here

Facts of Day Trading

Are you thinking of entering the fast-paced world of day trading? Arm yourselves with the information from this fact sheet on day trading.

What is day trading?

Day trading is an investment tactic that does online daily stock trading with a relatively short investment. Those who do day trading usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.

How is day trading different from swing trading?

Day trading relatively holds the stock for only the day. After the stock market closes, a day trader has no stock in his hands. Swing trading holds a stock for at least a few days, waiting out for the best price before dumping it back to the market. Day trading is much more stressful and requires guts and a keen business sense. Once you get good at day trading, you can earn up to $50,000 from your initial investment.

How much capital would you need for day trading?

You need an investment equivalent to buy 1000 stocks. That is roughly around $20,000. Because the chances are small that you will find a marketable stock with a price of under $20, this is enough to get your day trading underway. However, you must remember that this is a 100% risk capital so do not worry too much if you lose this amount very early.

What are the general rules for day trading?

• Always trade with the trend.
• Cut losses short
• Never get emotionally involved in your trades.

What are the most suitable stocks to trade for day trading?

It is advisable to trade high volume stocks. Go with the trend with the popular stocks available. It'll be easier for you to sell those stocks at the end of the day trading.

How does a usual day trading transaction occur?

For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes.

Most people who deal with day trading spend all of their time in front of the computer, watching the slightest change in the stock price. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. This can be a very stressful lifestyle as a mere second could mean an increase of half the stock price and missing that moment for any person engaging in day trading could mean a loss on his investment.

Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, don't just need luck. Knowledge and experience counts. Welcome to the world of stock markets and investments!

About The Author
Michael Sanford For More Information and articles about day trading check out http://www.forex-trading-center.info

Shocking Forex Trading News - Free Forex Tips

Looking for forex tips but don't have the money? Or were you given a Shocking Forex Trading News but don't know if this tip is worth using? As a rookie in the trading game, you will be in constant search for forex tips to increase you understanding of the currency, gain better foresight for strategies, or just simply improve your earning potential. You may search high and low, but most of the winning forex tips are best kept as secrets, because only few are really winning strategies. Though majority of traders will eventually lose, we may succeed with just the right forex tip at hand.

Most free forex tips are given to fellow beginners to help each other out understanding the market. One of the best and sure-fire tips to give out is that trading forex requires a lot of planning and strategy. If you're trigger-happy, or an impulsive buyer, you may want to go back to your shooting range or to the mall, as spontaneous investments simply rely on chance and luck to succeed. As any tactician would, you can use a demo account, instead of real time, real life trades first to assess the situation of the current market. Remember the saying "Too good to be true?" In most times, it usually is. Just sit still in that comfort zone of yours, and if you have enough experience, then you can beat it out against the system

Every trade and every move towards every trade in forex should be well thought out. Free forex tips are just the tip of the iceberg when it comes to forex trading. Forex trading is not for those who are searching to make quick money. The best investments usually take days to trade and those are that are usually worth the wait.

Like any well-planned attack, every move and every trade should be well thought of, should be well executed. More often than not, Free Forex Tips are usually just the tip of the iceberg. Again, let me stress that forex trading is not for those who want an instant buck. Like wine, the best investments take time, and it is really worth the wait.

Do you want the very best forex trading robot? Well I have some good news for you, I bought and tested the top 7 forex software's and put a review of the top 2 on my website: ForexTradingReview.Info I made over 900 dollars a day with one of the softwares listed on that site. Just Imagine if you purchase a couple of profitable softwares!

You have to be very careful when purchasing a software though. Some of the software's just sit around and never make you any money. If you want to make thousands every week with forex I suggest you take a look at the website: Forex Trading Review

Stochastic System - A Swing Trading Stochastics System For Big Gains

If you want to get started in forex trading then swing trading systems are a great place to start and a stochastic swing trading system can be learned in a few days and then you're ready to make big profits...

Before we look at the stochastic indicator, let's look at why swing trading is an ideal place for novice traders to start their trading careers.

There are two main reasons:

1. You get plenty of trades and don't the patience of long term trend following

2. You get profits and losses quickly so it requires less discipline than trend following.

So let's look at how the system will work.

Swing trading simply aims to take advantage of overbought and oversold scenarios, to buy oversold markets and sell overbought markets.

The stochastic is perfect for this.

Let's quickly get the technical bit out the way and keep in mind, you don't have to understand the maths to use it, just as you don't need to know how an internal combustion engine works to drive a car - it's a visual indicator, you can find on any free chart service and set ups can be spotted by anyone.

This technical indicator is based on the assumption that when a financial instrument is in an uptrend it tends to closer to the high than when it is falling, where the reverse scenario applies i.e. it tends to close near its lows.

How the indicator is plotted

The stochastic is lines the %K, which is a fast line and %D, which is a slow line.

The %K line is more sensitive than %D

The %D line is a moving average of %K.

The %D line gives the actual trading signal

Sounds a bit geeky - but just think of the way a moving average is plotted, then think about the %K as a fast moving average and %D as a slow moving average.The lines are plotted on the forex chart from 1 to 100. 80% and above is considered overbought and 20% below is oversold.

Here we are going to look at stochastic crossovers with bullish or bearish divergence, from overbought or oversold levels. A trader would look to buy when the %K line moves above the %D line and sell when the %K line moves below the %D line. The best crossover is when the following occurs the %K line intersects after the peak of the %D line, (a right-hand crossover). To cut down false signals only take signals that occur in overbought or oversold zones.

Your stochastic system would be as follows.

1. Look at support and resistance levels to key off

2. Check how over bought or oversold the stochastic is i.e. is it at an extreme?

3. Wait and hit the crossover

4. Place stop behind resistance or support

5. Look to take your profit early i.e. before it hits the next support or resistance

Simple but Effective

The above is extremely simple but all the best forex trading systems are. You may want to consider combining the stochastic with other indicators.

Combining with Other Indicators

The perfect one is the Relative Strength Index (RSI) as they compliment each other and the Bollinger Band to indicate volatility and targets.

Anyone One Can do It

Swing trading with stochastics is easy to do fun and can make huge profits so learn more about this great indicator and build your own stochastic system for currency trading success.

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Forex Trading Education - Two Types of Trading Analysis

Alright so you've decided you want to trade Forex and you want to learn the basics; regardless whether you're trading solo or with an autopilot trading system; this is always a good thing. Knowledge is power right? No it won't power your lamp... put that down and get in the corner.

Okay so the first type is pretty basic, well they're both relatively basic but this one is much easier to understand; it's called "fundamental analysis". Fundamental analysis is essentially looking at the market through economic, social and political forces that affect supply and demand. Cutting through all the babble it basically means you're figuring out what country's economy is doing good and which country's economy blows. The concept is when a country is doing well; their currency will be doing well too.

The second type of trading analysis is known as "technical analysis" (maybe you've heard of it?). This is the study of movement; people look at charts that list the historical price movement and based on the price action try to determine whether the price will go up or down. The goal is to look at charts and find trends and patterns to help you capitalize on good trading opportunities. Simply put, the most important thing you will learn with technical analysis is the trend; maybe you've heard the saying "the trend is your friend". You're much more likely to profit when you can identify a trend and trade in same direction.

So which do you use and which is better? For some reason people feel like they need to limit themselves and pick one; I don't get it. When someone tells you to use just one ignore them! Both fundamental and technical analysis have their advantages so why not use both? That's just good logic as they both affect the market.

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Automatic Forex Trading - Use These Simple Tips To Pick The Best Trading Systems

Automatic trading software is seen by many as a great way to trade forex markets. It requires no previous experience, is very time efficient and the good ones can build long term. How do you choose the ones that make money let's find out...

The first point to make is that most of the automatic forex trading software on the net simply won't make you money, if you think you are going to get rich for the price of a night out your mistaken.

Forex trading is not east that's why 95% of traders lose money and while automatic trading software can work you need to be very careful in how you choose one and this is what were going to look at now

First - if you see great advertising copy which looks to good to true it probably is and chances are you will also see the warning below NEVER consider software with this on it here it is:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

These track records are not worth the paper their written on - there made up knowing the closing data and that's easy.

I made the mistake 20 years ago of buying software that claimed 100,000 in profits quickly and bought it for under $100.00 -, now looking back I found the old sales copy (which was great) but also the disclaimer but of course being new to the industry and naïve I bought it without considering that it was so cheap and hadn't been traded.

Huge numbers of traders make this mistake and it is guaranteed to lose you money so beware of the disclaimer.

Just think to yourself - if the vendor hasn't had the courage to trade his own software why should you and why if its that good are you being told about it and offered it so cheap? You know the answer now!

What you need to do is look around for software which has either been independently tracked by third party or has been traded for real with an audited track record and that means broker account statements

These software packages will tend to be in the $1 - 10,000 + range and many are well capable of producing more than there cost - but again be careful, only buy ones you understand the logic of and you have confidence to follow.

If you don't have confidence - you won't have the discipline to stick with them through losing periods and will throw in the towel when you hit a few losses. Keep in mind if you don't have the discipline you may as well not have bothered buying one.

Automatic forex trading systems are all the rage today but stop to think before you buy and do your homework and make sure you find one that's tested, you have confidence in and can follow with discipline - if you do that you have a good chance of making some great forex profits.

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Currency Forex Market Trading Skills

I wanted to take the time to talk to you about currency forex market trading skills. You have to have the right mindset and skills to be profitable in this market. I find a lot of people jump right in without actually knowing much about what the need to do. A lot get blinded by the fact that there is three trillion dollars a day moving around and they're looking to make a fast buck. This is a business that rewards people here for the long term. If you're willing to take the time and learn the skills necessary to be profitable you'll be much more successful. I'm going to share a little of what I've learned during my time trading.

You should have a daily routine. Routine is the key to success with anything. You want to do the same profitable tasks each day to make sure you're making money. At first, you're not going to have the slightest clue on what to do and that is fine. After a few weeks, you'll catch onto what is working and what isn't. Hang onto the tasks that work and dump the ones that aren't.

Also play around with your demo platform. It's a very good tool if you take the time to use it to be a better trader. A lot of people use it to test out these "get rich" strategies and a demo isn't good for that. Just use it to practice making trades and catching onto how things work.

Forex Tracer is the final tool for the profitable trader. It acts automatically searching the market for the most profitable trades out there.

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6 Forex Trading Terms - Forget Them and You Are Out of The Game!

These are the forex trading terms which every trader needs to know before he or she even starts the first trade. Quite simply, if you do not know them, then the forex trading game may not be suitable for you. Why? Because they are the essentials!

1. Currency Pairs

Every transaction involves a pair of currencies since a trade is basically the selling of one currency and buying of the other.

2. Major and Minor Currencies

There are 7 major currencies traded online. They are USD, EUR, JPY, GBP, CHF, CAD and AUD. The rest are all minor currencies. Amongst these, some of the more frequently traded ones are the South African Rand (ZAR), the Singapore Dollar (SGD) and New Zealand Dollar (NZD).

3. Base Currency

The base currency is the first currency in the pair as a measure of its value against the second currency. For example, a GBP/USD = 1.7100 means that 1 GBP is worth 1.7100 USD.

4. Quote Currency

The quote currency is the second currency in the pair. Any profit or loss is a measure of this currency.

5. Cross Currency

A cross currency is a pair which neither of them is the USD. These pairs often experience intricate price movements because each trade actually involves the buying and selling of 2 different currency pairs. For instance, when buying a EUR/GBP, you are actually buying a EUR/USD pair and at the same time selling a GBP/USD pair. The transaction costs are often higher for such trades.

6. Pips

What is a pip? 1 pip is the smallest unit of price for any foreign currency. Most currency pairs consist of 5 digits and the pip represents the smallest change in the fourth decimal place, ie 0.0001.

These are the core forex trading terms that all professional forex traders should get familiar with. Since each trade cannot depart from them, it does make sense to find out more.

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Learning to Trade Forex Online

Online forex trading is the buying and selling of foreign currencies over the internet and this system of trading was developed more for the benefit of the individual trader. Years ago forex trading was available to large investment banks and related institutions. But with the spread of internet availability, online brokers and online trading tools the individual investor is enabled.

Starting out with online forex trading you will be faced with more information than you can possibly handle, but as a beginner it is important to seek out materials that will teach you the basics of the trade than those that talk about strategies. Majority of beginner forex traders make the mistake of going straight for strategies and signal generating software, than spending time and money to understand what happens in the whole forex business.

A great way to start off with online forex trading is to find educational materials that will teach you basics of forex trading, visit online forex forums and communicate with traders. You will receive an overwhelming amount of information, but take your time and move at your own pace for there is no rush. From visiting forums and discussion rooms on the internet you will learn common pitfalls faced by traders and suggestions from experienced traders. Also spending money to buy good books on trading is another wise investment if you want to be in the business for a long time.

So if at all you have interest in online forex trading I would suggest you do not fill your mind with the prospect of making so much money and really fast, rather start with training courses, e-books and seminars. When you have good grasp of the general idea then you begin to look at possible strategies that and techniques that will help improve your chances of success.

If you like the idea of making money by trading online and do not wish to spend time and money educating yourself, you are better off leaving your money in the bank and take the 5% offered at the end of the year. On the other hand if you do not wish to go round the learning curve but still find online forex trading irresistible, then you might want to consider trading via a managed account.

However, if you approach forex with caution and arm yourself with proper learning by making use of the many resources that can be obtained on the internet. You can either scurry around gathering your information for free or simply purchase e-books and materials that have put a lot of material in one source for you, but either way learn the trade before you start or stay out and be a happier person.

Karen Fairham is an individual forex & futures trader. For more information and tips on online forex trading visit: Forex Trader

The Best Forex Trading Indicator

Forex, or the Foreign Exchange Market, is market competition at its finest, as it includes traders from all over the globe, operates twenty-four hours a day, and has massive trading volume and liquidity. Anyone with access to the World Wide Web can try his or her hand at making a profit by buying and selling currency. The trick, of course, is to figure out what to buy and what to sell and at what time.

That is when Forex trading indicators become valuable; indicators help investors figure out the best times to buy and sell their particular currency. Moving averages indicators are commonly used and are one of the best ways to determine the optimal buying and selling times in the Forex market. Because any event from a natural disaster to a change in government policy and anything in between can affect a country's currency exchange rate, the successful Forex trader will understand the importance of reading trends over the long term, rather than looking for a get-rich-quick plan.

Moving averages indicators help traders plot trends and for those with a head for numbers, they can be relatively easy to understand and provide consistent results over the long haul. A moving averages indicator is simply a chart on which traders plot lines of short-term market conditions. Analyzing those conditions and getting an average by adding the price points together and dividing them out forms a line. Then, using that as a guide, the chart is extended over longer periods of time, and the emerging lines give insight into future trends.

For consistent results and long-term success, the best and easiest Forex trading indicator is the simple moving average.

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Forex Online Option Trading - The Basics Explained

Forex online option trading is a brand new opportunity as of 2007 for individual investors to trade options on world currencies. Offered through the Philadelphia Exchange world currency options are traded in exactly the same way as any other option. Currency options offer a major benefit to those interested in FX trading.

Up until 2007, the only way to trade in currencies was through futures, and through forex market makers. Both involve a much greater degree of difficulty than simply trading in forex currency options. In futures, there is a great deal of risk. If your position moves against you, your loss can be potentially unlimited. In both futures and spot FX markets, you are tied to your trade 24 hours a day, watching and guarding against constant fluctuations. While you still have to keep an eye on your positions, world currency options are traded only when the stock market is open.

Forex online option trading is available through almost any online broker that deals in options. Just like a stock, you simply need to know the symbol to find the option chain or chart. For example, in Forex, the Euro/US dollar currency pair is called the EURUSD. In forex online option trading, the symbol is XDE.

Currency option trading is as simple as identifying the direction of the trend and buying a call if you think it's going up, or a put if you think it's going down. You can buy an option for a month, three months or more.

Using forex online option trading gives you a few major advantages. Your risk is limited to the price of the premium - and you can easily employ a stop, further limiting your potential for loss. With FX currency options it's much easier to take a position and hang onto it for the longer duration of a trend. Your risk is limited and your potential for profit is virtually unlimited.

The one thing to remember in currency option trading is that of the six pairs that are available with options, four of them are reversed if compared to the FX currency pairs. All of the currency option pairs are settled in the US dollar.

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