Speaking Like a Pro: Learn Forex Jargon

One aspect of trading the Forex, or even talking to Forex traders, that can be really intimidating is that the Forex market has an awful lot of jargon. For those of us who have been trading for years, the jargon comes as second nature. If you’re just getting started, then it’s easy to see how intimidating that can be.

This article will set out to help you get started. There is a lot of Forex lingo, but at least now you’ll be able to jump into the game a little bit more after knowing these common Forex terms:

“The major currencies.”  There are eight major currencies, which are: the U.S. Dollar, Canadian Dollar, Australian Dollar, New Zealand Dollar, the Euro, Japanese Yen, the British Pound, and the Swiss Franc.

“Minor currencies.”  This is any currency that does not belong to the major eight. So even currencies of large economies like Brazil, Mexico, Russia, China, and India are all still considered minor currencies.

“Base currency.”  This is the first currency listed in a currency quote, and is always measured in a unit of 1.

“Cross currency.”  The second currency listed in a currency quote.

“The Aussie.”  A slang term for the Australian Dollar.

“The Kiwi.”  A slang term for the New Zealand Dollar.

“The Bid.”  Refers to the bid price, which is the price the market will currently purchase a specific currency pair for. The bid price will always be higher than the ask price.

“The Ask.”  Refers to the ask price, which is what you will sell a currency for. The ask price is the one used when selling.

“The Spread.”  The difference in value between the ask price and the bid price.  This miniscule difference is how some brokers make their money off Forex traders instead of charging a commission.

“Bull Market.”  A market distinguished by an overall rise in price.

“Bear Market.”  A market distinguished by an overall fall in price.

This is hardly the end all, be all, of Forex lingo, but this article should at least give you a good start into getting comfortable with the slang you’ll hear around the Forex markets.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

How to Start Trading Forex

There are a lot of early steps that every Forex trader has to take before getting started in successfully trading the Forex markets. The first and most obvious step is to actually open a Forex account so you have access to the market. This is necessary so you can determine which Forex software and which online Forex platform you prefer, which are necessary to even open a “play money” or free trading account (always recommended for the beginner Forex trader).

The good news is that opening a Forex account is not difficult. In a way, there are only three basic steps to opening up an online Forex trading account:
1. Select an account type
2. Register your account
3. Activate your account

If these three steps don’t bring a lot of clarity, don’t worry, I’m about to go through them one by one to make this process as easy and painless as possible.

Select an Account Type
There are different types of Forex accounts and different ways of opening them. These accounts can be opened either in your name, or the name of your business. You will be given choices between standard accounts or micro/mini accounts. Occasionally you might even see the offer of a managed account. Figure out which account type fits your needs and select that one.

Depending on the Forex trading platform that you have chosen to do your trading with, the registration instructions will follow and guide you through step by step. As this is occurring, you will eventually be shown a page of the Broker’s policies, which brings us to step two:

Read the Broker’s Policies
I can’t stress this enough. Don’t just gloss over it, but pay particular attention to the fine print. You may sign a contract to a broker with policies you don’t want to follow. Different brokers have different rules, so it is particularly important to make sure you’re getting a deal you can live with.

Once you’ve read and agreed to the policies, you can register. Once that’s done, you can create a username and password for your account. Right there you’re activated. While it’s not necessary to practice first, I always strongly recommend using a practice account until you get used to the tools and start consistently making profits in practice. Then you’ll be able to trade the real money with confidence.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

Forex Orders: Do You Want Your Pips Crispy, Fried, or Super-Sized?

There are many different kinds of “orders” that can be used when making a trade in the Forex market, and the sheer variety of them can be intimidating and confusing to someone just starting out. Even for the trader who has already gotten their feet wet a couple of times, it’s never a bad idea to go back over the options available and make sure that you have everything down.

There are several basic types of orders, but this article will concentrate on only six of them to keep things simple, and keeping orders as straight forward and simple as possible is one sure sign of an experienced trader.

Market Orders
Market orders are orders that are made by buying a currency pair for the market’s current quoted value. For example, if the EUR/USD=1.4312, you would immediately get 1.4312 USD for one Euro. With market orders, you make trades with a single click, and you’re in the market. There is little to no waiting.

Limit Orders
A limit order is made when you want to wait for a currency pair to hit a specific price. If you think you see a trend, but don’t like the current price, you can set an order to buy when your ideal price is hit. For example, if USD/JPY is at 120.25, but you prefer it starting at under 120, you can put in a limit order for 119.99.  If the currency falls to that, you buy in. If it doesn’t, you don’t get involved. A limit order can also be used for picking a point to at which to sell.

Stop-Loss Orders
A “Stop-Loss Order” is an order to sell at a specified exchange rate that is below the current market rate.  This can be referred to as a Forex trader’s “safety valve.” A stop loss order means if the trade turns against you and usually this is done to liquidate part, or even all, of an open position when the market conditions turn enough to cause the open position to lose value. In other words, this is put in place to minimize losses if things go really badly, so the trade is automatically closed before you can lose anymore. This order can also be used to get you into the market that the specified price or worse.

GTC (Good ‘Till Cancelled)
With a GTC order, the order is good until you cancel the order or the order is triggered by the market.

GFD (Good for the Day)
GFD orders last until the end of the trading day. What time that is depends on what time zone and nation you live in. This means you’re betting that by the end your order will be triggered, or if you’re not, that it’s time to move on anyway.

OCO (Order Cancels Other)
An OCO is an order where you set up for two possible orders based around two separate values that work as “triggers.” When the market hits one trigger, that order is put in and the other automatically cancelled.

Simple orders are usually the best. Keeping in mind your options here and sticking with the normal tried and true orders will help you to guarantee trading success.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

Forex Currency Trading - Making Money in the Forex Market

Forex currency trading is becoming increasingly popular as more and more traders want to take their shot at the largest trading market in the world.  The lure of nearly $2 trillion in trading going on each and every day is too much for most traders to resist.  So what is the Forex market, and how does currency trading work? Forex is an abbreviated term for foreign exchange market.  The Forex is the largest financial market in the entire world, with an average trade volume of nearly two trillion dollars per day.  The modern Forex market is what evolved from initial currency trading.

The idea is to use fluctuating currency rates to make money out of money.  For example, let’s say you buy one mini lot (1 mini lot = 10,000 currency) of the EUR/USD at a rate of 1.1500.  Two days later the markets shift and the EUR/USD is now 1.1525, and so you decide to sell.  Using the formula to figure out profits/losses, 1.1525-1.1500 is .0025 * 10,000 (the size of the mini-lot) = $25.  In this case, a $100 investment for one mini lot yielded a $25 profit, or 25% in only two days.

Not a bad percentage by any count.  That’s quite a profit for two days.

This is a simplified example, and as with any trading there is always the chance of loss, but this gives you an idea of what traders are shooting for when investing in Forex currency trading and why the potential for profits is so high. Forex currency trading is conducted using “pairs.”  The reason for this is that to trade Forex you are basically simultaneously buying one of the currencies, while selling the other.  If you are selling the EUR/USD pair, then you are selling Euros in order to buy dollars.

Let’s use the earlier pair as an example.  If you are trading the Euro versus the US Dollar, your currency pair is EUR/USD.  The Euro (EUR) is referred to as the base currency while the US Dollar (USD) is referred to as the cross currency.  The base currency is the one you are selling, while the cross currency is the one you are buying.  There always has to be a pair.  To buy one currency, you have to do it with another.  To sell a currency, you need to get your profits back in another.  There must always be two currencies in any Forex currency trading.

The far majority of the Forex trading done in the world takes place between eight currencies: the United States Dollar (USD), Australian Dollar (AUD), Great Britain Pound (GBP), Canadian Dollar (CAD), Swiss Franc (CHF), Japanese Yen (JPY), and the Euro (EUR).  Other nations’ currencies may be used, but these are the currencies that are most often used and profited from because they have the most demand and come from the most stable economies.

I hope that gets you started into learning about forex currency trading, but you should know that you will always need a good proven system to make a profit in this volatile market.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder – Founder, ForexImpact.com

Forex Day Trading - Short Term Trading, Not for Beginners

Day trading is exactly what it sounds like: trading that all takes place in one day. In day trading the short term is the main focus, meaning all entrances into, and exits from, the market need to take place on the same day. Often times day trades can take only a few hours to enter and end, with the hope that each trade nets a small profit, and that those small profits add up.

Day trading requires a quick entry and exit and the ability to efficiently use technical analysis and apply it directly to your trades. The strategy used by day traders isn’t to find one long term trade that does well, but to find several smaller trades that make a few pips here and a few pips there. At the end of the day the strategy is to have enough wins over losses that they add up to a solid profit for the trader.

Scalping is an extreme example of day trading in the Forex markets. Traders who employ scalping trading methods (appropriately nicknamed “scalpers”) are traders who buy into a position intending to see quick movement and profit off a short transaction, often times within a minute or a couple minutes of making their entry into the market. True scalping involves when a trader opens and closes a position in literally minutes—or sometimes even less than a minute!

This quick in and out is hoping that after a quick movement and show of profit, and immediate exit will in theory help minimize risk while collecting smaller profits bit by bit. This is an advanced type of trading, that shouldn’t be tried by pure beginners into the Forex market, though if you get a good system and some experience, this could become an option down the line.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder – Founder, ForexImpact.com

Forex Trading Education - Learn to Beat the Forex!

Forex trading education is critical if you want to be able to beat the odds against the world’s largest trading market. There are many different factors that affect each currency pair you would be looking to trade, and knowing those factors and how the Forex market works will give you a much better shot at cashing in your share of the major profits that experienced traders can make.

One of the first things you will want to know is the difference between technical and fundamental analysis. These are the two main ways of looking at trading in the Forex. Fundamentalists like to take a long term view on trades, and to look at all the overall factors of a nation’s economy and make their decisions based on general strength or weakness.

Technical traders have charts, trading systems, mathematical formulas, indicators - all sorts of technical tools designed to help them anticipate how a market is going to move, and to take advantage of it.

This isn’t saying that one is better than the other. Many traders use some combination of both, using the tools of a technical trader while watching the general economic reports that a fundamentalist trader would use. This is a great idea. Having all the charts say one thing about a currency pair is great, but if you’re on the wrong side of an interest rate rise or cut - ouch!

If there’s one piece of information you should get from Forex trading education that’s critical it’s this: to be a successful Forex trader, you absolutely must have a dependable, profitable Forex trading system!  If you take nothing else from this article, take that piece of gold to the bank.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder – Founder, ForexImpact.com

Forex Trading System - Finding a Forex Trading Strategy That Works

Finding a profitable and established Forex trading system can be a difficult thing to do. This can be frustrating to many traders, because without a trading system that they can trust, without that time tested strategy, their chances of making solid profits consistently are next to nothing.

One of the first things to look for is a system that adapts to market movements. If a system claims one strategy to be used all the time, it’s hard to believe that you’re making profits in sideways markets if you are trading a trend system. But if you have a Forex trading system that has strategies that adapt to changing markets, that can be a good sign of having a system that will make you profit over the long haul.

There are many Forex trading systems out there, not all of them can deliver on promises. There are several things you should look for when considering purchasing a Forex trading system.

Is there a money back guarantee? Reputable systems should allow for you to get your money back if you’re not satisfied.

How well established is this system? Has the company been around for years?

Does it fit your style? If you’re strong into fundamentals and long term trades, you don’t want a system designed for quick day trading or scalping. Likewise with the roles reversed.

If you take these factors into consideration and find a good Forex trading system that adapts to market conditions (like the Triad), you will be all set to make a killing in the Forex market!

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder – Founder, ForexImpact.com

Online Forex Trading - The Only Way to Trade

Online Forex trading is really the only way to go when trading in Forex and is, in fact, the only way to get into currency trading in the forex market. Unlike the stock market and local commodity markets, the world wide Forex market doesn’t have a market floor where you can go and put in an order.

The changing of technology over the last twenty years, especially with the Internet advancing enough to allow online trading, has really opened the Forex market for any trader anywhere to be able to trade the Forex. Online Forex Trading is made possible through Forex trading platforms and software that allow traders to track currencies, analyze the charts and graphs, and make buy and sell decisions for currency pairs based on that information. Since the world market is always open somewhere, you can trade currency at virtually any time of the day or night, any day of the week.

Aside from finding a trustworthy and reliable online Forex platform that you can use to trade online, you will also want to have a successful, established, and reliable Forex trading system that will help guide you in how to buy and sell, go short or long, and make a lot of profit doing it.

The combination of these factors is what will determine whether or not you are poised for success as a Forex trader. It’s not enough just to have the best Forex platforms or software, but you need a trading system that you know is profitable and won’t let you down.  After all, it’s your money on the line.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder – Founder, ForexImpact.com

Forex Trading Strategy - Sorting Out Good from Lousy

Finding the right Forex trading strategy can be difficult, as there is so much information out there on the web that it can be hard to figure out which trading systems can actually make you profitable trading the Forex, and which are a bunch of garbage being sold from modern day snake oil salesmen.

To have an effective Forex trading strategy, you need to first understand the basics of how the Forex market. Get yourself as much information as possible. Having knowledge will help you be able to analyze what each sales pitch is promising and even throw up some red flags if a Forex trading system you’re looking at seems to employ a strategy that doesn’t make sense compared to what you’ve read about the markets.

At the very least you should understand the difference between technical analysis and fundamental analysis, and get an idea of how each views the Forex market. At this point, what you want is not a home made Forex trading strategy, but an established and effective Forex trading system that you can rely on to guide you to making a killing in the Forex market.

Finding a great strategy that can trade the market when it is trending, counter-trending, and in breakout modes will help to ensure that your forays into the Forex market will result in a growing bank account and a growing smile on your face.  Remember, when finding the right Forex trading strategy, you’re looking for a proven Forex trading system.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder – Founder, ForexImpact.com

Is Tech Trading Crap – Are the Charts Just Bull?

For someone who hasn’t spent a great deal of time trading in the Forex, the charts and all the hundreds of different claims about news breakout systems can be really confusing. Some of the claims can seem outright ridiculous at times. If profit was guaranteed, why would anyone do or use anything else? With all these systems it’s easy to wonder: is tech trading crap – or do all those charts really mean something?

This question can be even more confusing for some people when they realize there are Forex traders who believe in fundamental analysis of the market, basically looking at the larger economic picture to determine which currencies to bet on and bet against.

So is tech trading crap? The answer is no, though with an asterisk. Good technical trading is necessary to be able to figure out which currencies are overvalued and which are undervalued. Knowing this information will make it much easier to locate where your entries and exits should be, and gives you a much better chance of being profitable.

On the other hand, tech trading can get into trouble when it only follows charts and ignores the economic reports that come out. If an economic report spells trouble, that currency is going to fall no matter what previous chart analysis said. Without paying attention to the economic reports and other similar indicators, technical analysis falls into pitfalls that can badly hurt your account.

You don’t need an astrologer to read the stars and tell you it’s going to flood. If it gets cloudy and starts to rain, head for the high ground.

Technical analysis is an extremely useful tool – if it wasn’t then nobody would actually use it – but use it wisely with fundamental analysis for the best results and you will be a very happy trader!

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder – Founder, ForexImpact.com

Next Page »