Archive for May, 2010
May 1st, 2010 | 
Author: What’s Forex Gap Trading?
Gap trading is not a new forex trading strategy. It’s been used in all investment markets for a very long time. It’s really easy To learn this Forex trading technique. Gap trading in an attempt to take advantage of the difference, or “gap,” in price between the close of the previous day with the open of the following day. Gapping up: the open is above the previous day’s close. Gapping down: the open price is below the previous day’s close price. When the open is at the same price level, then there was no gap.
How can you trade gaps in the Forex market?
Ignore the 24-hours time frame associated with Forex trading, and set up an opening and closing time to create an artificial market, you can provide yourself with an open high low close data range. Based on that data range, you would be able to trade gaps. Another Forex trading strategy is basically to ignore trading on Saturday and Sunday, when volume is thin and most of the world is not working. Under this scenario, you establish a closing time on Friday and an opening time on Monday. Based on the gap, you take the appropriate position.
Forex Gap Trading Strategies works more often than not, a simple process that can generate great profits.
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Can you Make a Living With Forex Trading? This is one of the Most Asked Questions By New Forex Traders.
If you want Make a Living With Forex Trading,read this frist:
- Learn Forex, get familiar with the technical analysis, fundamental analysis, indicators and tools.
- Make use of stop loss, limit orders and trailing stops,etc.
- Make sure of the entry and exit points.
- Don’t greed. Predetermine your targets and then follow them strictly.
- NEVER repeat your mistakes. Learn lessons from your loss and try not to repeat them.
- Never follow what people say, make your own strategy and use them cleverly in trades.
- Choose a good broker who can help you to make smart trades.
- Actually trading is a smart activity done my smart people. therefore be smart and make a unique strategy.
Have you been trading Forex, but not making the money for a living? Why don’t trading more like the forex pros ? Here are a few of the most important techniques that professional traders have:
Consistent Trading
Trading consistently and with longer duration is one of the first steps make money from forex trading. The results is directly dependent upon the numbers of hours worked by you on your forex trading. Trading One hour per week is not enoght. Trading Forex everyday, trade when you want.
Educate yourself from Forex
Education yourself in the Forex ,one of the keystone for successful Forex trading.
Learn the basics of Forex trading, find the right forex course that suits you.Look for a forex mentor, This is the best as the educations comes from real life experiences.
Building up slowly from a small account
Starts with a small live account or demo account, choose 4-5 forex brokers, find the best one for you.Test their forex trading platform and system, Once you feel that you had gained enough experiences to trade like a professional,you can upgrade your account to enable you to trade bigger and make more pips.
Specialization of trading
Specialization of trading requires you to choose a forex trading platform and be familiar with until you are an expert in that forex trading system. You are strongly recommended to choose a pair of currency to begin trading. Learn the movements of this pair of currency until you become extremely knowledgeable in its movements and factors affecting it.
Trade like a professional does not happen with just wishing but rather with efforts.
When it comes to learning about Forex trading, there are numerous resources available to the novice trader. Online courses, workshops, e-books, DVD-courses and even one-on-one streamed video training. However, for some, the best way to learn is the old-fashioned way: by reading a book.
The bookstores abound with Forex books, on any topic – from Technical Analysis to the psychology of trading and many beginner traders find them the most efficient way to learn since it allows them to review passages as many times as necessary to fully understand the topics. Imagine asking the lecturer at a large workshop to repeat himself and you can understand why the book has its advantages!
The question is, which forex book will be most helpful for you? Like any other area, the forex trading realm has its share of hucksters and pretenders. Be wary of any book that makes outrageous claims in its title or on the cover like “Be a forex millionaire” or for example. If a book promises something that’s too good to be true, you will not benefit too much from it. And if the book underestimates or neglects the inevitable risk associated with forex trading, you should definitely put it back on the shelf and walk away from it.
What you shold value in a forex book is calm, reasonable, practical advice. Garish, pretentious language suggests the author is trying to pull a fast one. Professional, logical language, on the other hand suggests the author knows the currency market and is simply transferring to his readers what he’s learned over the years.
Finally, when choosing a forex book, it’s worth taking a minute to Google the writer’s name and see what comes up in the searches. Are there reviews of the book written by readers, not some fake testimonials shown on the author’s Web page? Has the writer been mentioned in any offline events, such as offline workshops or seminars? What is his or her background? Does he or she have any real-world trading experience, or do they just write forex books?
Take note also of the book’s appearance. Is it an e-book sold by some dude off his Web page? Is it riddled with grammar and spelling errors? Or does it appear to have been written and edited by professionals, and presented in an appealing, straightforward manner? You want a book that fits the latter description. It’s more likely to be reliable and up-front about the pros and cons of forex trading.
FOREX TODAY
When in early 1970′s fixed currency rates were turned to floating, Forex started its great development and in decades it became the largest financial market in the world with average daily turnover of more than $3 trillion. Today, the Foreign Exchange Market is a network of central banks, commercial banks, different financial institutions, brokers, dealers, pension funds, insurance companies, and private investors.
Trading sessions
The need in foreign currencies constantly arises in people and companies in different countries at any time. Today Foreign exchange market works 24 hours a day and 5 days a week without lunch breaks. During the days off both Forex market and stock exchange take a break. A trading session lasts from approximately 10 a.m. to 6 p.m. local time. Thus trading sessions may overlap each other. Business news services form all around the globe collect currency quotes and provide them to banks, investment offices and brokerage houses.
Forex currencies
About 80% of all operations in the market are speculative deals based upon making profit from difference in currency rates. Both large financial institutions and private individuals single traders earn money by buying a currency and selling another one. The most popular currencies are US Dollar, Euro, Swiss Franc, Japanese Yen, Canadian Dollar, Australian Dollar, and British Pound, which attract many investors by their volatility and liquidity. The relative value of a currency versus another currency makes up a currency pair. Such currency pairs as EUR/USD, USD/JPY, GBP/USD and USD/CHF are considered majors. Forex Ltd offers trading in 21 currency pairs and 2 currency indices.
To start trading Forex you should open a trading account and make deals via trading terminal installed to your computer. Global communicational network allows trader to virtually make deals any time of the day from any place of the world.
Forex Ltd offers wide range of financial instruments including currency pairs, CFDs on shares and exchange traded funds, free trading software and analytical tools.
FOREX HISTORY
Within the last three decades Foreign Exchange Market has integrated into the world’s largest financial market. Now the volume of daily transactions is about $3 trillion. The modern structure of the Forex market was established in the early 1970′s after abolishment of the Bretton Woods Agreement.
BRETTON WOODS AGREEMENT
When the World War II was over, the major countries of the world established the International Monetary Fund or IMF to monitor the exchange rate activities. In July 1944 the agreement among 44 countries about establishment of the IMF was signed, at Bretton Woods, New Hampshire. This Agreement fixed currency rates to US dollar and pegged the US dollar to gold.
For decades the Bretton Woods Agreement maintained international monetary steadiness, but in late 1960′s the situation began to change. Economic development of different countries, especially the United States, led to disbalance in the Forex market. Growth of inflation, constant rates’ revision (the Agreement allowed slight rate adjustments) led to devaluation of currencies. The market price for gold in the US began to exceed the fixed rate and the government could not maintain it artificially any longer. In 1971 the US cancelled the Agreement and devalued their currency.
JAMAICA CURRENCY SYSTEM
In the year of 1976 the Jamaica Conference (Kingston) took place. At the meeting of the ministers of the member-countries of the International Monetary Fund a new agreement about the structure of the international currency system was adopted, which represented a number of amendments to the IMF Statute. A model of free floating of currency rates was formed, which featured high fluctuations of the rates. Gold was no longer used to back deficit during international payments.
EUROPEAN CURRENCY
In 1978 a European Monetary System was established. The system had much in common with Bretton Woods as it had the Deutschemark as the main currency of the system. The axe of the system was a number of cross-rates with central and border rates of exchange. If the rate approaches the border both countries should make an intervention. The common European currency unit (ECU) was later introduced in 1979 for non-cash payments.The Rate of ECU to other currencies was counted on the basis of the fact that it was the unit of the basket of currencies of the European Monetary System member-countries.
In the next decade cross-border movements of capital accelerated greatly with the advent of personal computers and Internet-technologies thus expanding the market to Asian, European and American time zones. These technologies were employed by private investors to enter the market traditionally known as the Interbank market.
With the introduction of the Euro which replaced the ECU in 1999, eleven European countries fixed their currency rates in relation to Euro. It became the first currency able to compete with the historical leaders in the Forex market and establish the long desired stability.
FOREX ADVANTAGES
More and more private investors give their preference to online currency trading as it offers wide possibilities of making profit from fluctuations of currency rates. Forex gives more benefits than stocks or futures trading among which the following should be mentioned:
Inter-Bank Market
Forex market comprises both major financial institutions and private investors. Major central banks communicate and trade with each other and their clients by means of electronic networks and telephones. However, no entity, even a central bank is able to control prices for an extended period of time.
Easy to start, easy to trade
Our online account management system and advanced trading platform allow you to open an account within minutes and trade instantly at the dealable prices with no execution barriers and no daily trading limit.
True 24-hour trading
You can trade Forex any time of the day, when it is convenient for you as the market opens at 0:00 a.m. on Monday and closes at 11:00 p.m. on Friday. Forex traders enjoy advantages of all profitable market conditions at any time as there is no need to wait for the market «opening bell».
Margin trading
You trade Forex using leverage, which means that you have to allocate only a fraction of the position to secure the deal. The leverage enables you to increase potential returns while investing only a part of the position volume – margin.
No commission
Forex Ltd does not charge any commission for trading currencies and provides free software and market news for real account holders. The only amount charged is spread, a so-called «cost of trade», which is the difference between «Ask» and «Bid» prices.
Go short
Trading in the over-the-counter currency market allows you not only to earn from rising rate, but also from falling rate in the bear market. In case when the outlook for a currency is bearish, the market is bull for other currencies providing profit from selling the currency versus other currencies. Thus, profit is gained from both rising and falling market.
High liquidity
Forex Market is characterized by the highest degree of liquidity as here money is an asset. The average turnover in the Forex market is about $3 trillion per day, so you can open and close positions at the most favourable prices;
Low investments
The minimum initial deposit in Forex Ltd is $1000 / €1000 / £1000.
Forex
The info below will assist you to understand what Forex is. This will help you to advice to your Affiliates on what and how they can make money.
Now, since eToro can also be effective to the gaming world there are more options for advertisement that the affiliate can work with.
• What is Forex?
• Forex Companies – The Leaders.
• Best converting Regions.
• Forex key words. – Excel doc. Attached
• Methods that work.
What is Forex?
The market
The currency trading (foreign exchange, Forex, FX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are central and commercial banks, corporations, institutional investors, hedge funds, and private individuals like you.
What happens in the market?
Markets are places where goods are traded, and the same goes with Forex. In Forex markets, the “goods” are the currencies of various countries (as well as gold and silver). For example, you might buy euro with US dollars, or you might sell Japanese Yen for Canadian dollars. It’s as basic as trading one currency for another.
Of course, you don’t have to purchase or sell actual, physical currency: you trade and work with your own base currency, and deal with any currency pair you wish to.
“Leverage” is the Forex advantage
The ratio of investment to actual value is called “leverage”. Using a $1,000 to buy a Forex contract with a $100,000 value is “leveraging” at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.
How does one profit in the Forex market?
Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs.
The advantageous thing about the Forex market is that regular daily fluctuations – in the regular currency exchange markets, often around 1% – are multiplied by 100!generally offers trading ratios from 1:50 to 1:200).
How risky is Forex trading?
You cannot lose more than your initial investment (also called your “margin”). The profit you may make is unlimited, but you can never lose more than the margin. You are strongly advised to never risk more than you can afford to lose.
What is Forex trading? What is a Forex deal?
The investor’s goal in Forex trading is to profit from foreign currency movements.
More than 95% of all Forex trading performed today is for speculative purposes (e.g. to profit from currency movements). The rest belongs to hedging (managing business exposures to various currencies) and other activities.
Forex trades (trading onboard internet platforms) are non-delivery trades: currencies are not physically traded, but rather there are currency contracts which are agreed upon and performed. Both parties to such contracts (the trader and the trading platform) undertake to fulfill their obligations: one side undertakes to sell the amount specified, and the other undertakes to buy it. As mentioned, over 95% of the market activity is for speculative purposes, so there is no intention on either side to actually perform the contract (the physical delivery of the currencies). Thus, the contract ends by offsetting it against an opposite position, resulting in the profit and loss of the parties involved.
Components of a Forex deal
A Forex deal is a contract agreed upon between the trader and the market-maker (i.e. the Trading Platform). The contract is comprised of the following components:
• The currency pairs (which currency to buy; which currency to sell)
• The principal amount (or “face”, or “nominal”: the amount of currency involved in the deal)
• The rate (the agreed exchange rate between the two currencies).
Time frame is also a factor in some deals, but this chapter focuses on Day-Trading (similar to “Spot” or “Current Time” trading), in which deals have a lifespan of no more than a single full day. Thus, time frame does not play into the equation. Note, however, that deals can be renewed (“rolled-over”) to the next day for a limited period of time.
The Forex deal, in this context, is therefore an obligation to buy and sell a specified amount of a particular pair of currencies at a pre-determined exchange rate.
Forex trading is always done in currency pairs. For example, imagine that the exchange rate of EUR/USD (euros to US dollars) on a certain day is 1.1999 (this number is also referred to as a “spot rate”, or just “rate”, for short). If an investor had bought 1,000 euros on that date, he would have paid 1,199.00 US dollars. If one year later, the Forex rate was 1.2222, the value of the euro has increased in relation to the US dollar. The investor could now sell the 1,000 euros in order to receive 1222.00 US dollars. The investor would then have USD 23.00 more than when he started a year earlier.
However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a “risk-free” investment. Long-term US government bonds are considered to be a risk-free investment since there is virtually no chance of default – i.e. the US government is not likely to go bankrupt, or be unable or unwilling to pay its debts.
Trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back that currency in order to lock in the profit. An open trade (also called an “open position”) is one in which a trader has bought or sold a particular currency pair, and has not yet sold or bought back the equivalent amount to complete the deal.
It is estimated that around 95% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
Exchange rate
Because currencies are traded in pairs and exchanged one against the other when traded, the rate at which they are exchanged is called the exchange rate. The majority of currencies are traded against the US dollar (USD), which is traded more than any other currency. The four currencies traded most frequently after the US dollar are the euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP) and the Swiss franc (CHF). These five currencies make up the majority of the market and are called the major currencies or “the Majors”. Some sources also include the Australian dollar (AUD) within the group of major currencies.
The first currency in the exchange pair is referred to as the base currency. The second currency is the counter currency or quote currency. The counter or quote currency is thus the numerator in the ratio, and the base currency is the denominator.
The exchange rate tells a buyer how much of the counter or quote currency must be paid to obtain one unit of the base currency. The exchange rate also tells a seller how much is received in the counter or quote currency when selling one unit of the base currency. For example, an exchange rate for EUR/USD of 1.2083 specifies to the buyer of euros that 1.2083 USD must be paid to obtain 1 euro.
Spreads
It is the difference between BUY and SELL, or BID and ASK. In other words, this is the difference between the market maker’s “selling” price (to its clients) and the price the market maker “buys” it from its clients.
If an investor buys a currency and immediately sells it (and thus there is no change in the rate of exchange), the investor will lose money. The reason for this is “the spread”. At any given moment, the amount that will be received in the counter currency when selling a unit of base currency will be lower than the amount of counter currency which is required to purchase a unit of base currency. For instance, the EUR/USD bid/ask currency rates at your bank may be 1.2015/1.3015, representing a spread of 1,000 pips (percentage in points; one pip = 0.0001). Such a rate is much higher than the bid/ask currency rates that online Forex investors commonly encounter, such as 1.2015/1.2020, with a spread of 5 pips. In general, smaller spreads are better for Forex investors since they require a smaller movement in exchange rates in order to profit from a trade.
Forex Companies – The Leaders.
• Forex.com
• Saxobank.com
• FXCM.com
• GFT.com
• Easy-Forex.com
• Marketiva.com
• Soon – eToro
Best converting Regions
Dubai
Bahrain
U.A.E (United Arab Emirates)
U.S.A
Pakistan
Malaysia
Scandinavia
Germany
Norway
Advertise Methods that work.
Unfortunately there are not much of ways to bring traffic that will cost less and that will convert the best.
PPC – the keywords start from 10c up to $10 per click! This method does not work and in most chances the Affiliate will loss his money. If the Affiliate only work with PPC, let him, we want our affiliate to advertise in Google, it will deliver traffic.