Forex Trading Tips

Anyone can learn to trade Forex, it’s a specifically learned skill but 95% of traders lose money, this isn’t because they can’t learn to win at Forex trading, it’s because they either fall for the numerous Forex myths or take information from vendors selling dubious products that don’t Work. If you want to win at Forex trading then the 10 Forex trading tips below, will point you in the right direction.

1. Don’t Trust Get Rich Quick Robots or Expert Advisors

These are the choice of most new traders and they promise instant wealth for no effort for the cost of a couple of hundred dollars or less they look to good to be true and they are – if you think you are going to get rich with them then you will be very disappointed, they don’t work, that’s why there so cheap. 

2.Accept Responsibility

If you want to win at Forex trading, you have to take responsibility for your actions and all successful traders do. If you always want to seek advice or don’t have the confidence to stand on your own two feet Forex trading is not for you so do something else.

3. Learn Skills and work Smart

To win you need to know the basics and learn skills this doesn’t mean you have to work hard you need simply to work smart in Forex trading, you don’t get rewarded for effort just being right with your trading signal. It’s a fact that anyone can learn to trade successfully in just a few weeks and your then all set to seek currency trading success.

4. Keep Your System Simple

In Forex trading simple systems work best as they are more robust than complex ones which tend to break. Forget complex mathematics, Forex markets are simply odds based and in this brutal environment, simple systems will always work best.

5. Use a Long Term Trend Following Methodology

You can swing trade but the best systems tend to be based on long term trend following and if you look at a chart its obvious why – Forex markets trend long term and these trends last for many weeks, months or years and by locking into them, you can make a lot of money. A good way to trade is with a Forex breakout trading system, it’s easy to understand, easy to apply and will always make money.

6. Money Management is Vital

If you want to succeed at Forex trading you need to play great defence and keep your losses small, it’s the foundation of Forex trading success. When deciding money management parameters you need to take into account volatility and this means you need a through understanding of standard deviation of price, if you don’t know what it is make it part of your essential Forex education.

7. Trade the Reality of Price change 

There are many people who will tell you that you can predict Forex prices in advance but that’s nonsense; if you try it your predictions will end up as accurate as your horoscope. If you want to win forget prediction and simply trade the reality of price change as you see it on a Forex chart. If you do this, you will have the odds on your side and that’s the way to win. Leave prediction to the losers and the far out crowd and don’t believe mystical nonsense such as Fibonacci and Elliot Wave to name just two predictive theories

8. Be Patient and Wait for High Odds Trading Signals

You don’t get rewarded for how often you trade, you get rewarded for how accurate your trading signal is and that’s it. If you are trading long term and trend following, you can make triple digit gains trading just a few times a month. Don’t try and force the market to give you high odds trades wait until it does and if you are patient you will be rewarded.

9. Learn to be Disciplined

This is the very basis of Forex trading success! If you cannot apply your Forex trading system with discipline, you don’t have a Forex trading system at all.  

10. Know and have Confidence in Your Trading Edge

Your trading edge can be anything but it is the specific reason, you think you will win, when 95% of traders lose. All edges of traders are different, but the fact is you must have one and you must be able to trade it with discipline through periods of losses, until you hit a home run. If you don’t know what your trading edge is you simply don’t have one! So continue your Forex education until you do.  

The tips above are simple to learn, easy to apply and can put you on the road to success with your Forex trading strategy.

FOREX INDICATORS

Forex Trading Indicators

You can use a variety of Forex trading indicators with your Forex charts and here are some tips on how to use them to increase the profitability of YOUR Forex trading strategy.

The first point to keep in mind is not to use too many, if you do you will complicate your trading system and it will break, less is more in Forex trading as your system will be more robust. If you want a perfect example of this, look at the free trading system we have on this site in the free info section.

When using Forex trading indicators, its best to use them in conjunction with simple bar charts on a Forex chart. While it may seem old fashioned, the chart itself confirms the reality of price change and shows you important value points in terms of support and resistance. So use your bar charts to see areas of value and use indicators as back up.

All markets move to sentiment and while we all have the same facts to look at, we will all draw different conclusions from what we see and it’s a fact that humans will spike prices to far from fair value, as greed and fear come into play. No short term price spike lasts long and prices will return to an average or fair value. Markets have high volatility when emotions come into play and then become less volatile as greed and fear subside.

An essential indicator to measure volatility is the Bollinger Band and you use it to measure volatility, it’s not a leading indicator but it’s a great one to gauge the volatility of the market.

As prices will normally return to an average price, you need to look at simple moving averages and two great ones are the 20 and 40 day moving average. If you look at any Forex trend, notice how to the 20 day moving average acts as an area of value. You will often see prices move away from this average, in both up and down trends and then return to it, so you can buy into it in an up trend and sell into it in a downtrend. They will sometimes go further to the 40 day MA, which very often acts as the last defence of the trend.

You can’t however just simply look to buy or sell into a moving average you need some momentum indicators to time your move. Two of the best are the stochastic and the Relative Strength Index (RSI); these indicators will only take you an hour or so to learn and are great indicators for timing your trading signals.

There are numerous other indicators out there, but the above 4 we think are the best Forex trading indicators for any novice to start with.  

FOREX TREND FOLLOWING

Currencies tend and this can be seen on any forex chart i.e. they move in a sustained direction for periods of time. The aim of any forex trader is to lock into these trends and turn them into profits. Doing it in real time simply requires learning the right forex education and technical tools to succeed.There are essentially three separate trends occurring in 3 different time frames that you have the opportunity to trade:

1. The Longer Term Trend – These are the trends that reflect the underlying health of the country the currency represents. They reflect economic trends that last for months or even years.
   
   
2. The Intermediate Trend – These are shorter term trends within the main trend and can last for a few days or for a few weeks. 
   
   
3. Daily Trends - These are short term trends that last for a few hours to a day.

So which are the best time frames to trade? Let’s find out.

Day Trading

While there are trends in daily time frames there only apparent after the day has ended. You have no chance of succeeding, by trying to catch these moves in live trading as - data within a day is unreliable and random. Support and resistance levels cannot be used, because volatility is random and prices can go anywhere.

You can’t get the odds in your favor and will lose if you try forex day trading.

There are millions of traders, trading several trillion dollars daily and it’s obvious that prices can move anywhere so don’t day trade!

Swing Trading

Swing trading is perhaps the easiest way for new traders to implement a Forex trading system. Your aim is to catch reactions within major trends which last a few days to a week.

Swing trading has the advantage of giving plenty of opportunities and you know if you are right or wrong quickly. Forex swing trading is easy on the mind, as you have obvious stop levels and finally, profits and losses come quickly. In swing trading you don’t have the pressure of sitting on long term trends, where you have to contend with big open equity swings against you in the short term.  

Long Term Trend Following

If you can get a forex trading system to catch and follow long term trends then you have the most lucrative form of trend following but its also the hardest form of trend following and far harder than forex swing trading which we just looked at

You will very often see trends that last for months or even years yet, very few traders have the mental discipline to hold and capitalize on these trends. Long term forex trend following requires considerable discipline and patience.

Why is it so hard to do?

The simple reason is, most forex traders are simply not mentally strong enough to accept big gains.

Don’t we all forex want big gains? Yes we all do, but accepting them is very hard.

The problem is the following: if money is important to you (as it is to most forex traders) then open equity swings against you, which eat into your open equity, can tempt you to exit a trade early.

Most traders of course feel pleased when they get a profit and the bigger the profit gets the more tempted they are to bank it, in case it gets away. As volatility swings eat into their open equity profit, the temptation to bank becomes too great for most traders and the bigger the open profit becomes, the harder it is not to take it. In the end, most forex traders simply bank taking an average or mediocre profit, when they could have had a far larger one.

If you are long term trend following, you need tremendous mental discipline to ignore short term swings against your position and keep your eyes on the bigger prize. Forex trend following is tough mentally but the rewards are huge, if it is done correctly and you have the right mindset.

New Trends & Turning Points

Catching turning points offers low risk and high rewards if done correctly furthermore as you are in at the stat of a new trend, these turning points normally see profits piled up quickly as the new trend emerges. Catching turning points is satisfying, very profitable, furthermore, as you are in at the start of the trend, you have the best risk to reward.  

The key is to WAIT for clear confirmation of a trend change, before getting on board. Most trend changes emerge after short term price spikes that are easy to see on a forex chart. As the price blows off, you can see it and act upon it, if you use the RIGHT technical indicators.  

Catching Trends for Profit

You really have a choice for going for the big long term trends, or you can swing trade shorter moves but never day trade!

The trends you go for will depend on your trading personality and both swing trading and long term trend following have there advantages. If you look at a forex chart, you will see trends and you can catch them – all you need is to act on the reality of price change and use a simple robust trading method.

Next we will look at a trend following system to help you catch these moves and enjoy currency trading success.

FOREX CHARTS

Forex Charts an Introduction

When you use forex charts you are engaging in technical analysis of forex prices so what is technical analysis? It is simply defined as the study of price action through the use of charts - for the purpose of identifying price trends. Forex technical analysis is based upon the following simple equation:

Market Perception (trader perception) + Fundamentals (supply and demand)

= Price Movement

Forex technical analysis simply assumes that all known fundamentals are quickly reflected in price action (and today with instant communications available to all traders this is truer than ever before) forex technical analysis and the study of forex charts is not interested in studying what the fundamentals are but their effect on price.

The Price action simply gives the forex chart user the whole picture – it not only reflects all the fundamentals, but more importantly, how all the participants perceive them.

The Importance of Human Nature

In any market it is humans that determine the price of anything. We all have the same facts at our disposal but we all see them differently and it is our perception and that of millions of other traders which determines price.

As humans we tend to push prices to far up or down as we are succumb to the emotions of greed and fear, the importance of human nature as the critical factor in price direction is there for all to see.

For example, some of the largest price moves in history have taken place with little or no change in the fundamentals. It’s a fact that markets are most bullish at market tops and most bearish at market bottoms. This is human psychology was at work.

Human Nature is Constant

Human psychology is constant and this means that patterns that have occurred in the past will re occur. If you can learn to spot these patterns, you can act on them to get into and hold the long term forex trends, as well as spotting important trend changes.

Learn to use forex charts, and you will see the reality as it is – you are trading the truth, rather than listening to the opinions of others or letting your emotions get involved. 

Let’s give a quick review of the core assumptions that forex technical analysis is based upon:

1. Markets Discount ALL Fundamentals

All fundamentals show up quickly in the price action.

By studying forex charts you study the fundamentals, as they are and more importantly, you are seeing how the participants perceive them - all at the same time. This gives you the big overall picture.

2. Trends Persist

This is obvious by simply looking at any Forex chart.

You will see forex trends lasting for months or years. Forex technical analysis assumes that a trend once in motion is more likely to continue than reverse. The aim of any forex trader should be to catch these trends, hold them and pile up big profits.

3. History Repeats

Fact: Human nature never changes.

Forex chartists believe that what has happened in the past will happen again, as human nature causes reoccurring chart formations, these formations can be seen on a forex chart and then traded for profit.

As human nature never changes Price patterns reflect shifts in human psychology, we can therefore look for certain specific reliable patterns to repeat themselves, again and again.

Trading the Odds with Forex Charts

Forex charting is an art not a science and you are not going to win every trade - but if you learn to spot the right set ups and execute your trading signal when the odds are in your favor, you can pile up big profits over time and enjoy forex trading success.

So what is the best way to get the odds on your side and catch the big profitable forex trends?

That is the subject of our next section forex trend following

FOREX FOR BEGINNERS

This section is all about Forex trading for beginners and will give the basics of getting started in online Forex trading. Most beginners in Forex lose money because they are looking to make money with no effort and follow others or they simply cannot get the right mindset needed for success. Forex trading is a business and needs to be taken seriously and requires you learn to trade correctly and also adopt the right mindset.

Winners and Losers

The main difference between people who are successful in life and those who aren't is that those who are successful, possess the ability to take focused action. Having knowledge doesn't mean you will be successful - knowing how to apply that knowledge successfully is the key and this is very true in Forex trading.

If you hear from anyone that making money in Forex is easy, do not believe it It's not true, that's why 95% of all Forex traders lose money.

Don't Work Hard Work Smart

Being profitable in Forex trading does not require hard work, you don't get rewarded for the amount of hours you put in so work smart and learn the right info and you can learn Forex trading quickly. It's a fact anyone can learn a simple Forex trading system but to make money requires other traits which include - dedication, discipline, a knowledge of money management and an understanding of the psychology of the market. The real problem New Forex traders have is - they either believe that Forex trading is easy or they are mentally unprepared for the reality of trading a market.

Anyone can learn a Forex trading strategy which gives them the potential to win but very few traders are able to execute trading strategies with discipline. These traders soon end up losing money because they allow their emotions to dictate their trading but always keep the following point in mind:

If you can't trade a Forex trading strategy with discipline, you simply don't have one!

A Trading Strategy for Success

The reason anyone can learn a winning Forex trading strategy is because all the best ones are robust and simple, rather than complex. If you use a complex system it will simply have to many elements to break.

If you use Forex technical analysis and simply follow chart action, you will have a simple and powerful way to make money. You don't need to know the news or anything, about the economy of the country's currency you are trading – You are not interested in the causes of the moves, you just want to follow price action and lock into trends when high odds trading scenarios present themselves to you.

Getting the Right Mindset for Success

This is by far the hardest part for most novice Forex traders and despite the fact traders are told continually of its importance, they still fail to trade with discipline and let their emotions rule their trading. Despite all the advances we have seen in Forex trading systems and technology the fact is that the same ratio of traders lose today as they did 50 years ago and the number is a huge 95%. Can these traders learn to trade successfully? Of course they can but they fail to adopt the right mindset and lose.

So What is the Correct Mindset?

The correct mindset is one which is humble and is not frightened of taking losses. In fact, taking losses and keeping them small is the key to making money longer term. If you want to feel smart and clever and win all the time, don't trade Forex because you won't be able to win the majority of trades. This doesn't matter though and its a fact, many of the worlds best traders, make huge profits winning just 30 50% of the time and this is because:

They have the discipline to cut their losses and keep them small and the courage, to hold their winning trades to cover them and give them a huge overall profit.

Achieving Success – You Can Win!

The most important point we need to make in terms of Forex trading for beginners is this:

You can learn a simple system which can make money, anyone can do this BUT you must adopt the right mindset to make it profitable. The good news is getting the right mindset is a choice and if you make the right choice, there is nothing to stop you achieving a great second income from home trading global currency markets for profit.

FOREX TRADING TRAINING

If you are interested in Forex trading training there are various options open to you to help you learn the basics of Forex trading and teach yourself a strategy which can lead you to trading success. Lets look at the basics of Forex training for success.

When deciding on how to learn Forex trading keep in mind you can find all the information for free you need to lead you to success online. There are no secrets and no way to beat the market, trading success is built around a simple system which trades the odds. If you use a simple system and run your profits and cut your losses you can make a lot of money. Trading success is as much about mindset as it is about method and they is to trade with discipline. While this sounds easy, its hard for most traders, as they continually let their emotions get involved in their trading, run losses and lose. So focus as much on your mindset as on your method.

If you are looking for essential FX trading information then you should search the following subjects in addition to the basics on how to trade Forex

Technical Analysis and a Simple Forex Trading System

This is the best way for a beginner to trade, you don't need to know the reasons behind the moves, all you are concerned with is making money when they do and this means trading high odds chart patterns for profit. Learning to trade with charts is a specifically learned skill and anyone can master it and no college education is required.

The type of trading system you should use, should be simple and robust and based around trading the reality of price change and you should ignore predictive and scientific trading systems. Forex markets cannot be predicted in advance, because if they could there would be no market. You are trading the odds and the two best ways to do this are, by trading breakouts and swing trading divergences in currency pairs.

A Simple System Combined with the Right Mindset = Success

Both the above methods will work and which one you use will be determined by your personality. When putting your own system together, make sure you also look up the best Forex traders and study trader psychology, so you can get the right mindset for success. Always keep your Forex trading system simple, because simple systems work better than complex ones and have fewer parameters to break.

Forex Trading Training – Courses Books and Systems

If you decide to put together your own system you can but you can also get plenty of paid for material which can help you achieve success; some is well worth the money but most is junk. First let's look at the Forex trading strategies to avoid online:

Do NOT buy any material which promises you, that you can make a huge regular income with little or no dirawdown and also avoid any system or strategy which tells you, you can beat the market and make money with no effort. There are a huge number of cheap Forex robots and predictive systems which tell you currency trading is easy and big gains can be make with no effort and they cost a mere hundred dollars or so but you need to avoid them, because they don't work.

You can however get some good Forex training and the best sources are the huge number of excellent books on trading and also the best Forex trading courses.

FX Trading Books

Simply go to Amazon.com and you will find a huge number of books covering strategies and even more valuable, you can big up books from the great traders and how they achieved success. If you read about the great traders, you will soon realize that mindset is just as important as method and you can get some valuable info on how to trade with discipline.

FX Trading Courses

Another good way to get your currency trading training is to use a course. A good FX trading course, will give you proven Forex trading strategies and all the logic behind how and why they work, so you can trade with discipline. Furthermore, you get to see the strategies traded by the vendor in real time, so you can see how effective they are in terms of generating profits. Add in the advantages of, getting full support should you have any questions or queries and a full money back guarantee, if not delighted and you have an all in one trading solution.

The best trading courses can cut your learning curve and if you put in some effort you will be tell rewarded for your time.

Learn Forex Trading the Right Way and Win

We hope you enjoyed this brief introduction to how to find the best Forex trading training and it helps you achieve currency trading success. Keep in mind, anyone can learn to trade successfully and there is no more lucrative business than trading global currencies on the Internet – Good Luck!

HOW TO TRADE FOREX

Here we will look at how to trade Forex online and while there is no single best way, there are a number of tips we can give you which will allow you, to get the odds on your side and win. Lets look at how to trade Forex on the internet in more detail.

With the rise in Internet, we have seen a rise in the number of speculators who want to trade the market and with a minimum investment of a hundred dollars or so the rise in the number of retail traders has soared. In response to this, there has also been a huge rise in get rich quick products which take advantage of naïve traders which if you use them will see you lose.

How Not to Trade Forex!

- Don't buy or consider any of the following Forex trading strategies

- Any Cheap Forex Robot or Expert Advisor which promises huge gains with low risk and costs under $200.00.

- Any Forex trading system which claims to predict market tops and bottom in advance.

- Any Forex trading System which claims it can give you a regular guaranteed income each month.

The above are common claims on the Internet by vendors, selling get rich quick schemes and of course they don't work.

You don't make money without making any effort in a market where 95% of all traders lose money. Furthermore, the markets cannot be predicted and this should be obvious to anyone because if they could, we would all know the price in advance and there would be no market.

Other key mistakes traders make is using Forex trading information in the wrong way and the best example is - traders who listen to and believe, so called expert opinion and try and trade the news. If you could make money trading the news, then a lot more traders would win and they don't – 95% of traders lose money! Forex prices don't move to the facts alone, they move to traders perception of the facts and this is why, bull markets collapse when the market is most bullish and markets rally when the news is at it's most bearish.

How to be a Winner

To achieve Forex trading success we would consider the best way to trade Forex as based upon the following points:

Use Forex Charts

You should use a Forex charts and simply trade Price action. The Forex charts not only reflect all the known fundamentals, they also reflect how traders perceive them, so you are seeing the reality of price action as it is with no opinions.

Keep Your System Simple

If you use Forex charts don't try and be make your system to complex because if your system is to clever and complicated it will fail in real time trading. This is because, a complex system will simply have to many elements to break.

Trade the Truth – Trade the Reality of Price Change

You should Never try and predict where Forex prices may go or try and pick tops and bottoms in advance. You should only trade the reality of price action, after a market turn has been confirmed and two good ways of doing this are by trading breakouts to new highs and lows and trading divergences between momentum and price on your charts.

Trade Long Term Trends

The high odds trades can be found when you swing trade the market taking moves that last between a day and around a week and in long term trend following, where you trade for weeks or months. Avoid day trading and scalping systems which trade intra day moves, all you will be doing is trading the noise of the markets and this means you will lose.

Keep An Eye on Sentiment

If you want to win at Forex trading you need to be able to judge if markets are overbought or oversold it and two tools you can use are:

The free CFTC Net Traders positions and % Bullish by Market Vane.

These two services, will tell you if prices have been pushed to far by greed or fear and alert you, to possible changes in market direction.

Its also a good idea to look at the news from a contrary point of view, as the news reflects the view of the losing majority. Always ask yourself the question - have the long term fundamentals changed and is the news seeing this? While prices move short term to greed and fear, long term they do move to the long term fundamentals so if they change and prices are still rising,  greed is blinding the majority so be aware of a trend change.

Forex Success and You

There is no single best way to trade Forex but the tips above will help you formulate an FX trading strategy which can help you get the odds on your side and make money.

There is no short cut to currency trading success but as you can see from our summary of how to trade currencies, anyone has the potential to make learn and make money. While you have to make some effort to learn Forex trading online the right way, there is no other business venture which can reward you so highly for you efforts, as trading global currencies on the Internet from home.

FOREX INFORMATION

Forex Trading Information

When you are looking for Forex trading information you can either buy it or get it for free. There is actually a lot of free information which can be very useful - but you need to find the right sources. If you do, you can build a successful Forex trading strategy at no cost.

Free Information

What you should do is learn all about technical analysis and everything you need to know you can get for Free. You can learn all about chart formations and indicators and there are many free chart services that you can use with full explanations included.

You can also get a lot of free information on money management techniques which is the foundation your systems success is built on. You need to understand everything about volatility and standard deviation of price and there is plenty of material on this too.

You then need to formulate a Forex trading strategy and put your indicators into a system. There are many to choose from but the two every trader should learn are, Breakout methodology and Dow Theory. If you learn these two methodologies, you will understand how the markets really move and how to generate high odds trades.

Is it worth paying for Forex Education?

Yes it is but be very careful what you do pay for!

There are a lot of vendors out there who will promise you riches but no one can do that, you have too make your own trading decisions. If you want good Forex information

Forex Trading Books

You can get a huge amount of great advice on everything from trading psychology to trading methods, all from your local online bookstore and from traders who “walk the walk” rather than simply “talk the talk”. The Forex knowledge you can get is invaluable and you can get a good selection of books for around a hundred dollars and this will be repaid many times over.

Forex Trading Courses

You can also get a lot of good Forex trading courses and you can get one on this site but of course were biased! However our view is a Forex trading course should have all the following elements in it:

• It should come from traders not writers and you would be surprised at how many courses come from marketing companies.
• It should come with full email support, in case there are any queries.
• It should come with a full money back guarantee if not delighted – you are taking the word of the vendor, they can deliver what they say in the advertising copy and you have a right to your money back if not satisfied. Never buy a course without a money back guarantee.
• If you can look for an accompanying newsletter so you can see the logic of the vendor demonstrated in real time and this also proves their traders.

So you can get lots of good free Forex information and of course, you can also buy it in the form of books and courses. Just use common sense when buying any information online and don’t go for information overload when formulating a Forex trading strategy, it should only take you a few weeks at most, then your all set to enjoy Forex trading success.

FOREX CURRENCY TRADING

FX, Forex or Foreign Exchange, is all about exchange of currencies from one hand to another at an ongoing price in the market. Forex is all about investing money in foreign currencies, just gain profit by selling at a higher price, the one you hold, just to buy another one at a lower price. Earlier, not many traders were clear about the Forex trading and that Forex is just short for "foreign exchange", as it did not get much publicity through media.

Foreign Exchange market is the biggest financial market in the world, with a potential of fast and great gains and a sizable number of investors. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors.

About a decade ago, currency trading was only limited to large banks and financial firms because they were the only ones to have access to the tools and methods required to trade Forex market. However recently, due to up and coming efficient online platforms, technology has advanced to the point of being accessible to any and every individual trader who wishes to trade or invest in Forex. Marketforex.net being one of finest online trading platforms is easily accessible by all who are interested in investing in Forex.

Although trading in the Forex market is done for almost all the foreign currencies, there are still, some foreign currency pairs which are considered as “Major” currency pairs as compared to the others. This is because these currency pairs are some of the most traded and most in demand currencies in the Forex trading market. These pairs dominate the percentage of trades and are as follows:

Euro/ U.S. Dollar
US Dollar/ Japanese Yen
US Dollar/ Swiss Franc
US Dollar/ British Pound

The FOREX trading market offers its investors with exclusive and lucrative investing opportunities. Other factors like 24 hours open market, high leverage, commission-free trading and easy accessibility through various means of communications has helped Forex to become one of the most popularly invested financial markets.

With a daily volume of about $1.2 trillion money changing hands everyday, the magnitude of Forex market is definitely one of the highest as compared to the Equities and the Futures market. So, you should educate yourself comprehensively and take advantage of this giant investment vehicle.

Marketforex.net provides all the new as well as experienced traders with the opportunity to trade Forex more easily and more advantageously. We offer our clients with quicker results, better deals, higher leverage and superior customer support, thus offering them efficient and genuine Forex trading services through an advanced online trading platform

New to Forex

For those of you that are new to the foreign exchange (forex) market, it is important to familiarize yourselves with this market’s characteristics and unique attributes. The forex market allows traders to buy and sell distinct currency pairs. No commission is charged per trade, the broker is compensated through the buy and sell price differential – commonly known as the “spread”. Below are a few guidelines to start trading with Advanced Currency Markets – your gateway to the largest and most liquid market on earth.
What is Forex (Foreign Exchange, FX) ?
ACM offers online forex trading services for traders wanting to make speculative transactions on the exchange rate between two currencies. These rates may be influenced by world economic and political events, currency rate differentials, as well as many other factors including extreme weather conditions (hurricanes), acts of terror etc. Forex is the largest marketplace in the world with more than 4 trillion dollars changing hands daily and so making it one of the most attractive and lucrative markets.
How does the foreign exchange market work?
The forex market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates. Making a transaction on the forex market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.
	Buying/Selling - B/S
	If you want to open a position (i.e.: place an order to sell – to make a profit if the exchange rate falls) you have to choose the amount (i.e.: 100.000 EURUSD) from the drop down menu on the platform and then click the mouse on the sell currency button: SELL (if you want to place an order to buy, you should act in reverse). This will open a position in the market and you will receive an immediate notification of it on your trading station. To close an open position, you have to do the opposite of the initial operation – in our case buy the 100.000 EURUSD back. Different order types also exist to open or close a position under a certain condition.
	How does the B/S system work?
	As with any market, for each currency pair, there are 2 prices. The difference between them is called the spread. The spread is measured in points or pips – lowest decimal figure in a currency rate. For a EURUSD a pip equals 0.0001 (or 10 dollars on 100.000), for EURJPY a pip equals 0.01 (or 1000 yen on 100.000). More information on P/L calculation on the following page: profit and loss.
Forex currencies quotation system
Currencies are quoted in pairs, for example – EUR/USD or USD/JPY. The first currency in the pair is called the base currency and the second is called the counter currency. The base currency is the ‘basis’ for purchases and sales. For example, if you buy EUR/USD, then you acquire Euros and sell Dollars. You do this if you expect the Euro to grow against the Dollar. It is also possible for a currency pair to be quoted as USD/EUR, but this method is used extremely rarely. Each transaction must have 2 sides – a buy and a sell (or a sell and a buy). By this we mean that it is impossible to buy 100.000 EUR/USD and then exchange it for another currency pair (i.e.: EUR/JPY) without closing the first position. Also please note that no physical currency delivery will be made. For these purposes banks and exchange companies, which specialize in low-rate currency conversions are available.
Forex market working hours
The forex market, based on ‘spot’ transactions, is unique in comparison with all other global markets. This is because trading takes place 24 hours a day, 5 days a week (ACM platform works from Sunday 23:00 to Friday 23:00 CET). Financial centers are open for work, and banks and other organizations exchange currencies in different parts of the world for different purposes. Therefore, trading never stops apart from a short break during the weekend. Early closings are possible depending on calendar arrangement such as, for example, Christmas or new year’s eve.
Forex trading margins
A margin deposit is not, as many traditional traders suggest, the payment in cash for purchasing market shares. A margin is in fact a guarantee or a trust deposit, providing protection from losses during a deal? It allows traders to open positions on amounts that greatly exceed their account limits and so increase their buying power. ACM offers a 1% margin (or 1:100 leverage), which means you can control 100 times your deposit in the real market. If the funds in the account, in the course of trading, fall below the prescribed margin, your positions will be closed automatically without prior notice. Using this system, the client’s account cannot go overdrawn even under volatile, fast-changing market conditions. The formula for calculating margins is as follows: [Account Balance + (Profit or loss)] / Open Position = Margin
Rollover of positions (swap)
For the sake of transparency and unlike any other online broker we actually have a complete explanation of applied cost of carry on behalf of the market or the customer on open positions held overnight. This overnight cost of carry is presented as a simple flat fee either paid or charged on a customer's account. This process makes for extremely simple statements and greatly increased executional transparency since we do not modify the original price of the position entered into by the customer. You can find a more detailed explanation on the following page: overnight positions.
How to start trading Forex ?
Open a live account if you feel ready to trade in the real market OROpen a demo account on one or both of our trading platforms and choose which suits you best Define how long you can trade for. Define the currency pair you feel most comfortable with. Choose the tradable amount. Before opening a position, you have to consider how much profit you wish to make or how much loss you are eventually prepared to take. Depending on this analysis, place stop and/or limit orders. Open your position or place an entry order. Follow significant news events and technical indicators which you can consult inside your trading station or from third party sources (find out more about different types of analysis on the following pages: Technical vs fundamental analysis. Forex technical indicators. Forex fundamental analysis.