To trade forex, you need the services of a broker. Here are some tips to help you find a select a good broker.
1. Ask friends and colleagues for references. You may not have the luxury of having a trusted person to ask their advice on a broker. If you do, take advantage of that resource. A personal recommendation can cut way down on your research time and help you avoid making a bad decision.
If the same broker is recommended more than once, obviously you will want to take that into consideration. You might decide to look no further.
2. Do online research. The internet is an excellent research tool, and you should use it to locate several contenders to serve as your broker. Compile a list of brokers that look promising, and make a comparison chart to easily compare "apples to apples".
3. Using your comparison chart, select the three or four brokers that seem to most closely match your needs.
Some brokers will naturally appeal to the needs of certain traders more than others. One potentially important factor is the number and usefulness of the "helps" that each offers. Does the company maintain a forum, and is it actively used? Does the trading interface seem easy to use? What sort of research tools do they offer, if any?
4. Once you have narrowed down your list, do further investigation on your final contenders. Consider calling them on the phone. Ask yourself if they offer enough services to help you with your forex business. Request a free trial so you can get to know their company; at the very least, ask if they have a demo account for you to try.
If you're not a native English speaker, consider whether or not the broker offers services in your main language. This can become a very important factor in making your decision. As you learn and improve your forex trading skills, you don't want to struggle with a language barrier too.
5. After you have selected your broker, it is not out the question to keep tabs on other brokers. You are not "married" to any given broker that you pick. If you want, you can invest a certain amount of time every couple of months to see if any brokers have expanded their line of services or appeal to your needs better.
After all, you will be spending a considerable of money with the broker, paying for their services through the spread prices, so you will likely want some assurance over time that you are getting the best return on your investment.
Similarly, consider periodically evaluating your experience with your broker. Ask yourself if there any "holes" in the services they have provided to you. Are there any additional services which would help you make better trades? If the answer is yes, that is a clue for specific features you may want to seek out in a different broker at some time in the future.
Selecting a forex broker is one of the most important decisions you make in your forex business, so take the time to do it right.
Experience The Difference
Wednesday, January 28, 2009
Monday, January 26, 2009
Start Forex Trading:A Few FX Tips
Forex trading can be rewarding in more ways than one. It can provide a nice part-time income or even give you the freedom to quit your job and work from home. Here are some steps you should take before you begin trading.
First, invest some time in learning about forex markets and trading. There are many training guides available, and you should pick up two or three and learn everything you can. Get comfortable with the terminology and calculations.
Second, save up seed capital to begin trading with. If you already have the money on hand, that's great. Resist the urge to borrow from your mortgage money or grocery budget in order to start forex trading. Only invest what you are willing to lose, especially in the beginning when you are learning the ropes.
Third, make sure you have a firm financial foundation. You want to make sure you are making investing decisions based upon sound principles and not because your car payment is due in two days. Rash decisions made out of desperation often end in disaster, so take it slowly and learn how to trade forex before you rely on the money you will earn.
You may need to continue working in your job for a while, until you are comfortable in the forex market and are earning a comfortable income. Or, you may need to go out and get a job, at least part-time. Don't worry, it doesn't have to be forever.
Fourth, decide what your working hours will be. The forex markets are open 24 hours per day, Monday through Friday; you can even work at night if you choose! If you have a job or other time commitments, take those into account as well.
Fifth, select a broker. Many forex brokers are available. Do your due diligence and research each broker that you are seriously considering. Make note of the benefits listed in their advertisements. and construct a comparison chart of the most important features. You can always change brokers later; just make sure your broker's policies and ways of doing business are compatible with yours.
Sixth, once you begin trading, keep a record of your progress. As you do research before making investment decisions, keep track of what you find and why you made specific decisions. Consider opening a Google account; you can use a separate Gmail address for all your forex-related email correspondence, clip web pages with Google Notebook, make notes in Google Docs, and do financial calculations in Google Spreadsheet.
Forex trading is quickly becoming one of the favorite ways that people are supplementing and even replacing their income. The training and tools you need are widely available. Will you be the next successful forex trader?
First, invest some time in learning about forex markets and trading. There are many training guides available, and you should pick up two or three and learn everything you can. Get comfortable with the terminology and calculations.
Second, save up seed capital to begin trading with. If you already have the money on hand, that's great. Resist the urge to borrow from your mortgage money or grocery budget in order to start forex trading. Only invest what you are willing to lose, especially in the beginning when you are learning the ropes.
Third, make sure you have a firm financial foundation. You want to make sure you are making investing decisions based upon sound principles and not because your car payment is due in two days. Rash decisions made out of desperation often end in disaster, so take it slowly and learn how to trade forex before you rely on the money you will earn.
You may need to continue working in your job for a while, until you are comfortable in the forex market and are earning a comfortable income. Or, you may need to go out and get a job, at least part-time. Don't worry, it doesn't have to be forever.
Fourth, decide what your working hours will be. The forex markets are open 24 hours per day, Monday through Friday; you can even work at night if you choose! If you have a job or other time commitments, take those into account as well.
Fifth, select a broker. Many forex brokers are available. Do your due diligence and research each broker that you are seriously considering. Make note of the benefits listed in their advertisements. and construct a comparison chart of the most important features. You can always change brokers later; just make sure your broker's policies and ways of doing business are compatible with yours.
Sixth, once you begin trading, keep a record of your progress. As you do research before making investment decisions, keep track of what you find and why you made specific decisions. Consider opening a Google account; you can use a separate Gmail address for all your forex-related email correspondence, clip web pages with Google Notebook, make notes in Google Docs, and do financial calculations in Google Spreadsheet.
Forex trading is quickly becoming one of the favorite ways that people are supplementing and even replacing their income. The training and tools you need are widely available. Will you be the next successful forex trader?
Forex Trading: The Basics of Forex Trading
Forex Trading has taken the world by storm. Not only do large institutions like corporations, banks, and governments participate, individual investors also have the opportunity to profit from it.
Forex trading is one more method of operating in financial markets. Rather than buying and selling stocks, bonds, and other financial instruments, the investor buys and sells currencies of various nations.
The value of each nation's currency relative to other currencies is constantly in flux. This is where the profit opportunities exist: in predicting the change in value of one currency relative to another, and taking appropriate action.
Trading is therefore done with "currency pairs".
Here's an example of how this might work in practice:
On January 20, a forex trader decides to 15,000 Euros with U.S. Dollars, at the exchange rate current at that time. At some point in the future, months, days, or even hours later, she sells the Euros and gets dollars in return. If the trader did her homework and traded at the right time, she will make a profit.
Currency pair trades are expressed in terms of the currencies' abbreviations, with the "base" currency displayed first. For example, if you were buying Great British Pounds with U.S. Dollars, the transaction would be shown as GBP/USD.
As with any new endeavor, forex has terminology with which you should familiarize yourself.
Currency rate: this refers to the exchange rate of one currency relative to another.
Ask price: the price required to purchase any given currency.
Bid price: what prospective buyers are willing to pay for any given currency.
Pip: stands for "percentage in point". Sometimes expressed simply as "point". A pip is the smallest price movement of a currency.
Spread: the difference between the ask price and bid price. For the trader, this is the cost of doing a trade.
To trade forex, you must find a forex broker. In making your selection, consider such factors as minimum deposit, whether a demo is offered, and whether they accept a credit card funding source.
Many brokers offer web-based research and analysis tools. You can make use of them but do your own due diligence too: be aware of news and market changes that may affect you.
There are many factors that affect the value of currencies, including interest rates, GDP (gross domestic product) figures, and the Consumer Price Index (CPI). Over time, you will find the metrics or measurements that make the most sense to you and focus on those.
Forex can be an ideal business for you if you are willing to learn how to do it right. Just like any business, there is a learning curve and risks to avoid, and the potential for success is great.
Forex trading is one more method of operating in financial markets. Rather than buying and selling stocks, bonds, and other financial instruments, the investor buys and sells currencies of various nations.
The value of each nation's currency relative to other currencies is constantly in flux. This is where the profit opportunities exist: in predicting the change in value of one currency relative to another, and taking appropriate action.
Trading is therefore done with "currency pairs".
Here's an example of how this might work in practice:
On January 20, a forex trader decides to 15,000 Euros with U.S. Dollars, at the exchange rate current at that time. At some point in the future, months, days, or even hours later, she sells the Euros and gets dollars in return. If the trader did her homework and traded at the right time, she will make a profit.
Currency pair trades are expressed in terms of the currencies' abbreviations, with the "base" currency displayed first. For example, if you were buying Great British Pounds with U.S. Dollars, the transaction would be shown as GBP/USD.
As with any new endeavor, forex has terminology with which you should familiarize yourself.
Currency rate: this refers to the exchange rate of one currency relative to another.
Ask price: the price required to purchase any given currency.
Bid price: what prospective buyers are willing to pay for any given currency.
Pip: stands for "percentage in point". Sometimes expressed simply as "point". A pip is the smallest price movement of a currency.
Spread: the difference between the ask price and bid price. For the trader, this is the cost of doing a trade.
To trade forex, you must find a forex broker. In making your selection, consider such factors as minimum deposit, whether a demo is offered, and whether they accept a credit card funding source.
Many brokers offer web-based research and analysis tools. You can make use of them but do your own due diligence too: be aware of news and market changes that may affect you.
There are many factors that affect the value of currencies, including interest rates, GDP (gross domestic product) figures, and the Consumer Price Index (CPI). Over time, you will find the metrics or measurements that make the most sense to you and focus on those.
Forex can be an ideal business for you if you are willing to learn how to do it right. Just like any business, there is a learning curve and risks to avoid, and the potential for success is great.
Forex EA
Forex Trading: Why Forex Trading is an Ideal Home Business
Forex trading should be considered by anyone looking to start their own home based business. In this article, we will define forex trading, explain its advantages over other business opportunities and discuss some pitfalls to avoid.
What is forex trading?
"Forex" is short for "foreign exchange", and refers to the trading of monetary currencies.
Many people don't realize that currencies are traded, similar to stock trading. Since the value of each nation's currency is constantly fluctuating in relationship to other currencies, there are opportunities for you to profit.
Advantages of forex trading as a home-based business.
There are several advantages of forex trading including:
- You can adapt your participation to your own schedule
The forex market is open for trading 24 hours per day, Monday through Friday, unlike the stock market or any other business in which you must work around "business hours". With forex trading, you can work in the middle of the night if you want.
- Large marketplace
Forex trading is the largest marketplace in the world. It shadows all other markets, even the stock market. That means there is opportunity for anyone to participate. The daily trading volume is nearly 4 trillion dollars!
- Low barrier to entry
It takes less than $100 to get started forex trading. If you can scrape together that amount of cash, even if it takes a garage sale or selling some of your extra stuff on eBay or Craigslist, you can jump into forex trading.
Some pitfalls to watch out for.
Be aware of these potential problems if you decide to enter the forex market:
- Investing decisions based on emotion rather than logic
As with any type of investing, it's very easy to get caught up in the prospect of making big money. Place some limits on yourself so that you don't use money you need for living expenses.
- Investing without a solid knowledge of the playing field>
No serious athlete would step out onto the baseball diamond or basketball court without thoroughly understanding the "rules of the game", and neither should you venture into any type of investing without the same level of understanding.
- Trading too frequently
Although there are no "commissions" when trading forex, you will be responsible to pay the "spread", which is the variance between the ask price and the bid price. If you do very many trades, these "spreads" can really add up. Just make sure you understand the cost of your trades before you make them.
Conclusion
Forex can be an ideal avenue for you to make extra money, or even as a foundation for a home-based business. It is wide open for anyone: you don't need to have any specific credentials or background.Why not take a share of this market today?
Forex trading should be considered by anyone looking to start their own home based business. In this article, we will define forex trading, explain its advantages over other business opportunities and discuss some pitfalls to avoid.
What is forex trading?
"Forex" is short for "foreign exchange", and refers to the trading of monetary currencies.
Many people don't realize that currencies are traded, similar to stock trading. Since the value of each nation's currency is constantly fluctuating in relationship to other currencies, there are opportunities for you to profit.
Advantages of forex trading as a home-based business.
There are several advantages of forex trading including:
- You can adapt your participation to your own schedule
The forex market is open for trading 24 hours per day, Monday through Friday, unlike the stock market or any other business in which you must work around "business hours". With forex trading, you can work in the middle of the night if you want.
- Large marketplace
Forex trading is the largest marketplace in the world. It shadows all other markets, even the stock market. That means there is opportunity for anyone to participate. The daily trading volume is nearly 4 trillion dollars!
- Low barrier to entry
It takes less than $100 to get started forex trading. If you can scrape together that amount of cash, even if it takes a garage sale or selling some of your extra stuff on eBay or Craigslist, you can jump into forex trading.
Some pitfalls to watch out for.
Be aware of these potential problems if you decide to enter the forex market:
- Investing decisions based on emotion rather than logic
As with any type of investing, it's very easy to get caught up in the prospect of making big money. Place some limits on yourself so that you don't use money you need for living expenses.
- Investing without a solid knowledge of the playing field>
No serious athlete would step out onto the baseball diamond or basketball court without thoroughly understanding the "rules of the game", and neither should you venture into any type of investing without the same level of understanding.
- Trading too frequently
Although there are no "commissions" when trading forex, you will be responsible to pay the "spread", which is the variance between the ask price and the bid price. If you do very many trades, these "spreads" can really add up. Just make sure you understand the cost of your trades before you make them.
Conclusion
Forex can be an ideal avenue for you to make extra money, or even as a foundation for a home-based business. It is wide open for anyone: you don't need to have any specific credentials or background.Why not take a share of this market today?
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