I must tell you that if you want to make real money then spend just 5 minutes and read this article.

Foreign Exchange Market is the largest currency market in the world. It isn’t located in any particular city or town. As a matter of fact it isn’t located anywhere - it is entirely electronic. All you need to start investing money on Forex is ONE dollar and access to the Internet. These easy to fulfil requirements are the reason why millions of people invest their money on Forex every day. Among the investors are professional stock brokers, accountants, housewives, retired persons, students, engineers and stayat- home mothers - literally anybody. There’s no need for any specialised knowledge or skills to become a Forex trader.

» Is it simple?

Yes, very simple. What more - it can’t be any simpler.

The Forex market users log in to their accounts via the Internet.

Now, all you have to do to earn, is click one button (for example “Buy”) and a moment later the other button (”Sell”). If the price of the chosen currency pair rises in meanwhile, you can earn even 400 times more then the increase in the currency pair price.

This way, just at the effort of a few clicks a day, you can earn thousands or even hundred of thousand dollars per day.

» OK, where the catch?

Well, the crucial thing is to know which button to press. So far this all seems more like lottery than a method for a steady income. That’s it. Many people feel that investing in Forex is more like gambling, and they don’t treat it seriously. Actually the majority acts this way. Why? Because in order to make sensible investing decisions you have to know what you are doing. You need time and skills to figure out which button to press.

Most people don’t have time and skills to achieve this, and therefore they lose money.

And … 98% of Forex investors lose their money!

» What about the remaining 2%?

That’s the point. These 2% of investors get everything that the remaining 98% lose. This means unimaginable amounts of money passing from hands to hands every day.

The 2% who get all the money KNOW what to do, because they ALWAYS use proper software that makes the decisions. Only machine, a powerful computer that analyzes all the data from the the market is able to make the right decision. Machines don’t have emotions, they don’t know what fear or greed means, and they never act according to intuition. They obtain the results by means of calculation, and this makes them the best advisers. That’s why 98% of ordinary people lose their money to 2% of wise investors.

Fast Forex Cash Trading Course will teach you how to make huge profits on Forex Market.

adminForex Education18 Sep, 20083 Comments

Companies involved in foreign trade transactions are active participants in the global forex market worldwide. Exporters always need to sell, and importers to buy foreign currency. Exchange rates constantly fluctuate in the global forex market. As a result, the actual value of a product or a service bought with or sold for foreign currency may vary significantly, making an advantageous contract disadvantageous or even loss-making. Of course, the reverse situation when fluctuation of exchange rate makes profit is also true, but a commercial company is not tasked with deriving profit from exchange rate fluctuation. It is important for a commercial company to be able to plan the real cost of bought or sold goods so companies make a wide use of forex risk hedging in their business.
Money as well as future income or expenses in foreign exchange is a subject to forex risk. A company normally keeps accounting records in one currency (e.g. U.S. dollars) thus profits or losses from revaluation of items denominated in foreign currencies are possible if their exchange rates change.
Forex risk hedging is a protection of funds from unfavorable exchange rate trends and consists in fixing the current value of these funds by entering into transactions in the FOREX market. Hedging results in disappearance of the exchange rate fluctuation risk for a company, which enables it to plan its activities and to see its financial result not distorted by rate fluctuations. Transactions in the Forex market are realized on the margin trading principle. This trading type has a number of peculiarities which made it very popular. A small initial deposit gives the possibility to trade with the amounts that are many (dozens and hundreds of) times lager than the initial deposit. This excess is called credit leverage. Trading takes place without any actual money supply, which reduces overhead charges and enables to open positions by both purchase and sale of currency (including the one that differs from the deposit currency). The peculiarity of forex risk hedging of using transactions without actual cash flow (with use of credit leverage) gives the opportunity not to extract significant funds from a company’s turnover.
Two major hedging types can be singled out – purchaser’s hedging and seller’s hedging. Purchaser’s hedging is used to alleviate the risk of potential growth in prices for goods. Seller’s hedging is applied in the opposite situation, to minimize the risk of potential decrease in prices for goods.
The overall hedging principle for foreign trade transactions consists in opening a forex position in a trading account with the view of a future cash conversion transaction. An importer needs to purchase foreign exchange, so the importer opens a position by purchasing foreign exchange in the trading account in advance. On the date of actual foreign exchange purchase in its bank, the importer closes the position. An exporter needs to sell foreign exchange, so the exporter opens a position by selling foreign exchange in the trading account, and on the date of actual foreign exchange sales the exporter closes the position.
Forex risk hedging through FIBO: To take advantages of hedging, it is necessary to open a trading account with our company. The deposit amount should allow, subject to use of credit leverage, to open a position you need and to meet margin requirements if the market goes counter your position. If the market will continue moving counter your position you will have to make an additional deposit to maintain margin requirements. Forex risk hedging fee: As is known, one should always pay for risk reduction. Hedging gives rise to several expenditure items. Any transaction entered into the Forex market is connected with the costs represented by a difference between the purchase price and the sales price for a currency (spread). However, in the existing market environment this difference is normally equal to 0.05% - 0.1% of the transaction amount, which is insignificant. One has to keep a position open during a long period of time, and each day a position is moved to the following date (rolled over), taking into account interest rates on currencies participating in the transaction. In the current market environment, this fee is equal to 0.01% per day, or 0.3% of the transaction amount per month. However, depending on the direction of a transaction (purchase or sales), a customer will either pay or be paid this position transfer fee.
A guarantee deposit should be contributed to have a position opened. Its amount usually ranges from 1% to 5% of the concluded transaction amount. As soon as a position is closed, the deposit may be withdrawn from the trading account (with profit or loss).
Thus, the costs of hedging are quite minor as compared with the hedged contract values. Hedging is intended to reduce the risk of potential losses rather than to derive any extra profit. So hedging efficiency may only be evaluated taking into account the core lines of business of a commercial company. A well-developed hedging program does not only minimize the risk but also reduced costs by disengaging the company’s funds.

adminForex Education4 Sep, 20082 Comments

There are two basic approaches to Forex market analysis, fundamental analysis and technical analysis. Fundamental analysis focuses on the causes of price movements, while  technical analysis is studying the price movement itself.

a) Technical Analysis
The technical analysis is trying to anticipate future price movements based on their evolution in the past and analyze and read / understand Forex Charts. Although under a Technical Analysis there are many views, all FX Charts are based on historical currency. Both Technical and Fundamental analysiscan be used in parallel although both may present different conclusions.

b) The Fundamental Analysis
The Fundamental Analysis represents the study of specific factors such as wars, discoveries and changes in government policies, which influence over the supply and demand and, consequently, over the market prices.
Fundamental Analysis involve examining macroeconomic indicators and political situation, when an estimated value of the currency nations.
Macroeconomic indicators include figures such as growth rates measured by gross domestic product, inflation, unemployment, foreign exchange reserves and productivity.
Sometimes governments may intervene by central banks and usually have a notable effect on the Forex Market. A central bank could undertake unilateral Purchase / sales of foreign currencies against another or collaborate with other central banks

Technical Analysis or Fundamental Analysis?
One of the dominant debates in the analysis of financial markets is about the validity of the two types of analysis: fundamental and technical.
More fundamental studies concluded that this analysis was more efficient in the estimation of trends in the long term (more than one year), while technical analysis was more appropriate for a horizon less time ( 0-90 days). Combining both approaches were suggested as being the most suitable choice for a period of between 3 months and one year.

But most participants in the Forex market transactions using their analysis technique because it does not require an enormous time to study the analysis technique can be used in pursuit of several currencies at a time. Fundamentalists still tend to specialize due to large quantity of data on the market.
Once the analysis is mastered the technique can be applied easily at any time or currency pair.

adminForex Education29 Aug, 2008No Comments

The biggest difference between the Forex Market and Stocks Market is the amount of money dealt daily. Daily foreign exchange is traded 2 trillion U.S. dollars, which compared with any stock exchange market is much larger. The players in the forex market are also different, where money transactions are conducted between governments, banks & financial institutions in different countries.

The amount of money that is traded in a forex market can be turned into cash quickly, so Forex Market has a very high liquidity. The speed with which such transactions take place in a forex market can be very fast for any investor, regardless of country of origin.

While stock exchanges were given a fixed timetable when traded the forex market is open 24 hours 7 days a week to fit all countries.

The other difference between a forex market and a stock exchange is that the stock exchange operating in shares of companies belonging to a specific country; foreign exchange markets on the other hand operates globally, can include any country in the world.

Money Management is the most important aspect in making forex transactions which will bring long-term profit. Larry Williams turned $ 10000 in $ 1.1 million in a single year. He said in his book “The Definitive Guide to Trading Futures” (Vol. II): “Money management is the most important chapter of this book.” Many traders say that with experience managing money makes the largest contribution to the success achieved their capital markets.

In short, Money Management means that for a transaction to consider a possible loss of less than winning effort.

Thus, even if you have a transaction that will get you a loss, respecting Money Management you will allways be in profit because the loss will be lower than profit.

adminNews26 Aug, 20081 Comment »