Forex Learning - How to Learn Forex Trading

   Forex trading is the exchange of the currencies of different countries against one another. For example, the United States has the US Dollar and Europe has the European Dollar. 

To make a forex trade and invest in the United States, while simultaneously expecting Europe's currency to drop in relation to the USD, you would "go short" on the EUR/USD.

What is a currency pair?

To make these kinds of trades you will need a forex trading account. To open a forex trading account, you'll need to find a forex broker. A forex broker is an intermediary that takes bulk forex trades and passes them to the market. For this service, there is something called a spread, which is basically a small piece of the money that the broker takes out of your trade whether you profit or not.

What is a forex spread?

If you are apprehensive about putting your money in a live forex account, you can choose to open a forex demo account instead. A demo account operates very much like a regular account with the exception that the money is not real. Demo accounts are a great way to learn the mechanics of forex trading and seeing how the market works, but they can be a little misleading. When real money is on the line, entering trades and holding them through any kind of duress feels very different.
Benefits and drawbacks of using a demo account
Managing risk on a demo account
Get educated and read everything you can get your hands on. Understand the markets that you intend to trade, don't just go trading blindly trying to make some fast cash, that doesn't work very well in the long run. If you know about and understand what you're trading, you will be more confident about the trades you make.
Most importantly, if I could stress any point to you to be a larger than life point, I would tell you to learn about risk management. Traders in any market trading without risk management don't last very long. For forex, that effect is magnified because of leveraged trading. If you don't understand leverage, you probably should tackle that before anything else.
Introduction to Forex Risk Management

Forex and Leverage

No matter what sales pitch you read, or what else you are told, absolutely do not just jump in and start trading real money until you understand what you're doing. Forex is an exciting and fun market, but it also wipes out the majority of the people that try to trade it, because they don't bother to learn about trading the way they should be trading.
To win in the long term, you have to understand the markets you trade and the risk that they represent. Otherwise, you might as well be flushing that money down the toilet.
Source: http://forextrading.about.com/od/forexbasics/a/Learn-Forex-Trading.htm

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Top 5 Forex Brokers Review 2012

   Picking a forex broker can be one of the toughest decisions you are going to have to make as a trader as it will ultimately decide the method of trading that you use. Do you want high leverage? Do you want a chance to use demo accounts if you are a beginner? How often can you lift out your profits?

1. MB Trading

     MB Trading Forex offers two competitive Forex plans. Pick the one that fits your trading style.
FREE EXN: Offering slightly wider pricing with no commission fees, but still allows you to post your Limit orders to be immediately reflected to the market for others to hit. Free Commission Plan employs the EXN technology in a markup only plan, which means that MB Trading receives a markup embedded in the spread as compensation. Now available on all platforms, including Desktop Pro.
 2. FXCM

    Forex Capital Markets is the world's leading online forex trading and CFD broker.

3. FXDD

4. FOREX.COM

   FOREX.com is a leading online forex broker that offers 24 hour online currency trading 5 days a week.

5. Interbank FX

   IBFX is a provider of online forex trading services, offering individual traders, money managers and institutional customers proprietary technology, forex trading tools and forex trading education to trade foreign currency online. As a leading online forex broker, IBFX has distinguished itself among currency trading industry leaders with its unique multi bank liquidity feed, proprietary forex tools and services with a remarkable focus on customer care. The IBFX trading platform, MetaTrader 4, provides a fusion of flexibility and performance to optimize the forex trading experience. Explore all the features and benefits provided by IBFX by opening a free demo account.

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Forex Business - Tips & Tricks

    One of the biggest mistakes that many Forex traders make is that they don’t treat their Forex trading like it’s a business. Instead, they treat it like a trip to the casino, and many of them end up behaving like drunk gambling addicts instead of calm and calculating traders. If you want to succeed as a Forex trader, you have to think of it as a serious business, because it is.

How to make your Forex trading business profitable

   Now, there is quite a bit that goes into become a consistently profitable Forex trader. So, we aren’t going to go into ALL of the details in this short lesson. But, I am going to give you a general outline of what I feel is the most important piece of the puzzle of making your Forex trading business profitable.
As I mentioned above, you’ll have to make sure your winning trades are more than offsetting all your trading costs if you want to be a profitable trader. So, there are basically two ways to accomplish this:
1) Have a very high percentage of winning trades compared to losing trades
or
2) Aim to have winning trades that are significantly larger than your losing trades.

Forex Tips and Tricks 

1. Create a trading plan and description well.

 Criteria, you need to know when:

* Open position
* How many digits Stop Loss & Take Profit is ‘ideal’
* Have a financial management strategy (money management). This is related to how long you are trading in a month, how you account resistance level of risk loss, when the attraction of funds, when adding funds, and allocation of income to savings, investment and consumption.

2. Make the trend as your best friend (Trend Follower).

Do not fight the market trend (though not including mandatory rules). If prices are rising, you can install position Buy and vice versa when prices are down then you can install Sell position. Most people often take the opposite (counter trend) and often wrong – though there’s also often true :).

3. Keep well & carefully your capital.

Do not allow your capital to be $ 0.0. If you loss, try to keep 10 to 50% of your capital, so that when the time comes to add funds or inject, Dollar that deposited not too big. Imagine if you had to add a large fund due to loss in Forex trading.

If in two or three trades already spent 20 – 40% of the capital due to loss, stop for a moment. Hold yourself to open new positions. Do not obey yourself to “get even” or “want return on investment”. Try to calm your mind and your head. Arrange your trading system back in the Demo Account. Spend time 3 days – 1 week to try trading system in the Demo Account.

If already established, please go back to Real Account.

4. Knowing when to dispose of “poison”.

The term poison is a Buy or Sell position that has opened that has a floating (floating position / not closed) a negative or minus position fairly large. Say if Buy GBP / USD you have -150 points in the 2-hour period, is it still worth hanging on. Or if the position of AUD / USD is minus -100 within 20 minutes, if still loved-baby??!
Ah, wouldn’t the price back again? Well, if the price doesn’t back and forth, we become “poisoned” him, both mind and body. We can be physically ill to think of a position that has not closed that reached 200 points for example. Just remember, for the money now rather difficult times well. If It’s not productive within 2 – 3 hours, well to be amputated / Cut Loss. Cut; remove the already swollen & unproductive. What else would make the position of stay, more than one day with more expected profit well and also get a premium interest rate, put obligatory Stop Loss? Our advices, if you want to continue the next day, attach Stop Loss 200 points from the point of your open positions. Use Trailing Stop only if the facilities provided by the trading platform.

Stop Loss Plan you as early as possible. These days, the price movement to the Euro & Pound reaches 200 to 400 points per day. Determine ideal Initial Capital & Stop Loss you with a situation like that.

5. No emotion. If you’ve reached your daily or monthly targets, get out of the market. Do not be greedy.

Avoid the fear. Now it is linked with tips no.6, be informed. If you already know how far prices can move with the technical & fundamental indicators, do not look for the disease. Do not hesitate to put Stop Loss or Trailing Stop to limit losses.

6. Be smart & informed.

Smart here is no basis why should buy and why must Sell. That means you must research the market as a Fundamental and Technical. Open daily news or sites. Adjust date & time to time in which you reside.

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Forex - What is Forex?

   FOREX - the foreign exchange market or currency market or Forex is simultaneous purchase and sale of the currency or the exchange of one country's currency for the one of another country. 

   Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.
   In case you have a forecast that one currency would get higher to another, you can exchange the second one for the first one and wait for the profit. If you are lucky to see the trades following your forecast you can make an opposite transaction and to exchange currencies back gaining the profit.
   Unlike stocks and futures exchange, foreign exchange is indeed an interbank, over-the-counter (OTC) market which means there is no single universal exchange for specific currency pair. The foreign exchange market operates 24 hours per day throughout the week between individuals with Forex brokers, brokers with banks, and banks with banks. If the European session is ended the Asian session or US session will start, so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market to open, as is the case with most other markets.
Individual currency speculators can work during the day and trade in the evenings, taking advantage of the market's 24 hours long trading day.

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