No matter how well you did in school or what kind of IQ you have, we all need specialized training in certain areas. The forex market is no exception to this. Forex training should be a prerequisite for anyone considering getting serious about trading world currencies for profit.
Is formal training truly necessary? After all, there are plenty of books and online articles on the subject. Wouldn’t it be enough to read them on your own and getting into the market without going through the hassle of official training?
Well, look at it this way. You could read manuals on how to fly a plane, but you probably wouldn’t want to try it for real without getting some hands-on training first in a simulator. By the same token, you shouldn’t jump into buying and selling currencies without getting some training first. You might be able to manage successfully without it, but you’ll be so much better prepared with it.
Many forex platforms offer simulators or practice accounts. In these, no real money is involved. It’s pure simulation, giving new traders an up-close-and-personal look at the market without any financial risk. In these demos, you get all the charts, figures and other data you’d get if you were doing it for real. It’s excellent practice for the real thing.
How much training you need depends on how serious you are about joining the marketplace. If you truly want to make money buying and selling currencies, it might be wise to get as much training as possible.
There are two basic approaches for online forex trading, When learning to read forex charts. They are fundamental analysis and technical analysis. Fundamental analysis doesn’t rely on forex charts. It uses both political and economic factors to help determine trades. Charts here are only used as a reference. Technical analysis on the other hand will try to predict where the prices are going by analysis of historical price activity. Those who use technical analysis study the relationship between price and time.
The most traded pair of currencies is the Euro and the US dollar, so we will use them in our example. The dollar is on the right hand side of the chart and the Euro is on the left hand side. The currencies are expressed in relationship to each other in pairing. Forex charts will always display how much of the currency on the right hand side is necessary to buy a unit of the currency on the left hand side. Looking at the chart you will notice the last price displayed on a given date. This number is always highlighted. The time is recorded horizontally across the bottom of a chart and the price scale is displayed vertically along the right hand edge of the chart. The time and the price are often in all caps to help the trader remember that technical analysis is about the relationship between time and price. That is a fundamental rule of this type of relationship.
There are many ways to observe the price and time movement on a chart. These include bars, lines, point and figure, and Japanese candle sticks, the most popular method.
With the candlestick method there is a fat, red section that is the body of the candlestick. Lines protrude from the top and bottom and they are the upper and lower wicks. When you look at al the candles on a chart it is clear that bodies can be difference sizes and sometimes there is no body at all.
The same is true with wicks. Candle wicks can be of many difference sizes, or there may be no wick at all. The length of the body and the length of the wick are determined by the price range for the candle. Longer candles will have had more price movement during the time that they were open. The top of a candle wick is the highest price for that currency while the wick’s bottom is the lowest price. A candle or currency is bullish when the close of the candle is higher than the open. In English this means that there were more buyers than there were sales during the opening time period. Sometimes the candles will not have wicks. The price opened and it dropped off until it closed.
Forex charts are not a sure fire method, but they are a tool that can help a trader. Many forex traders use charts on a regular basis. Historical trends do have their place in forex trading as most traders will admit, and using the charts to track historical trends can assist a trader in making a decision today.
Often the charts are online rather than on paper. By joining a service that provides the charts via the internet a trader is able to stay very current indeed on currency activity. Charts can be checked on a minute to minute basis. For those who primarily do their trading based on historical accuracy this can be a true help.
Most forex traders however use a combination of the two approaches. They may chart historical trends, but they will also pay close attention to political, cultural and economic events within a nation. They may also use charts or other methods to check and see if a particular political event as a recent historical parallel that can be checked to determine how the currency behaved in past times. Simply following a system usually is not enough. A trader should also be a student of history and of economics. Using all the tools at your disposal will make you a better and stronger forex trader.
Successful Forex trader Mike Johnson has just released his powerful money-making software called Forex Maestro. This Forex robot has been tested in real life trading for the past five years and has returned astonishing results, according to Mike.
Here are some figures:
* $320 turning into $7,600 in 3 short days.
* $2,700 generates $6,621.14 in profit within only 40 days.
* $5,000 into $31,200 within 53 days.
* Maestro system of picking and choosing profitable trades has an average success rate of 91.25%.
On Mike's own words here's how Forex Maestro works:
1. It runs a particular forex trading opportunity through a multitude of possible scenarios created by extremely complicated mathematical and scientific formulas.
2. The built-in neural network inside Maestro picks the trades with the highest possibility to win AND with the biggest profit potential.
3.Then it finds the most profitable entry and exit points and place the trades for you... 100% on autopilot... with absolutely no human intervention.
Does it work? Well the sales page contains several live testimonials from people who have used it and turned out making big profits with it.
What does it cost? There is a special introductory price of $397 available only during this official launch period.($197 if you buy it today!) After that, you'll have to pay the regular subscription price of $997 per year. As usual, it comes with a 60-day money back guarantee.
The question is: who wouldn't write a check for $997 in return for tens of thousands or even hundreds of thousands of dollars that Forex Maestro could put in your pocket in one year?
Before you commence Forex trading for real you need to learn the basic concepts and the inner workings of the Forex market. Individuals who attempt to enter the foreign currency exchange market without an understanding of market fundamentals often end up losing money. To be a successful Forex trader takes education, determination and discipline.
The foreign currency market is a massive, nonstop global trading arena where knowledge and experience are critical to success. The Forex market moves at lightning speed and can take new directions from moment to moment. The ability to identify the direction the market is going to and to invest in the right currencies at the right time is acquired through observation, training and practice. In Forex trading, a great deal of real-time information has to be absorbed, analyzed and acted upon throughout the day. Trading successfully is by no means a simple matter. It is a skill that is developed over time.
Luckily, a lot of resources and training is available online. Websites and book stores are loaded with Forex trading advice. Anyone with a computer and access to the Internet already has access to a world of information on the basics of the foreign exchange market, technical analysis, trading terminology. More specialized publications (Forex forums included) offer charts, forecasts, Forex outlooks, indices.
Trading platforms provide tutorials, guided tours, seminars and courses.
One can also learn and practice Forex trading with absolutely no financial risk at all through demo accounts offered by many trading platforms. Free demo accounts are designed to familiarize the user with the trading software, as well as test his/her knowledge and strategies under real market conditions. The demo account works exactly like real trading account, except that the user is not exposed to immediate risk. It is advisable to practice with this kind of simulated trading system before using real money and keep detailed records of the trading results to analyze performance.
Other experts and trading platforms recommend starting with very small volumes and increasing them as one gains experience and confidence. For as little as $25 one can start trading and learning in real time.
Forex trading is a profitable and attractive investment opportunity you can do from home or office and from any country in the world. A true trader is a professional who employs knowledge and discipline and uses the latest in technology to execute his daily trading orders.
The currency trading market is the biggest and fastest growing market on earth, although most people outside of the financial world consider the New York Stock exchange to be the pinnacle of financial trading. The Foreign Exchange Market is in fact the true leader. The Forex Market, as this currency exchange is known, has a volume of around 1.5 trillion United States dollars daily. This staggering amount is over one hundred times larger than the volume of the New York Stock Exchange.
The forex market is over thirty years old as it was established in the early 1970's. It is not based on any one business or investing in any one business, but the trading and selling of currencies. What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The market is world wide. It is what is known as an “interbank” market where trades are conducted OTC (over the counter), which means they take place directly between the parties involved in the trade rather than through a central exchange. The main centers for the Forex market are located in New York, Tokyo, Frankfurt, Sydney and London. This allows the market to operate virtually 24 hours a day.
Put simply, the Forex market is based on trading the currency of one country for the currency of another country. The ratio of the value of one currency to the other rises and falls, and this ratio is what fuels the market. The trades consist of the simultaneous buying of one currency, for example, United States Dollars (USD), and the selling of another, i.e. The European Euro (EUR).
The most important market in Forex trading is called the “spot market” because trades are executed at once, or "on the spot". There are other elements of Forex trading, such as futures trading, and Forward Outrights, which are slightly more complex than spot trading.
To learn an amazing breakthrough forex trading system that can skyrocket your trading profits, click here.
