How FOREX Works
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.
Monday, June 2, 2008
Sunday, June 1, 2008
Tip Tradig Forex
Forex Trading Tip - 2 Simple Powerful Ways to Increase Your Profits
By kelly Price
Powerful Ways To Increase Your Profits
If you want to trade forex and want regular profits then following these simple tips can change an average or losing trader into a trader earning triple digit profits. Most forex advice would not agree with them but that's no problem 95% of traders lose! Let's look at them and how they can change your profit potential.
1. Understand the 80 - 20 Rule
We have covered this in greater detail in our other articles but in brief it postulates that 80% of our results come from 20% of our efforts.
This is true in many areas of life and is true for most traders in forex , they simply over trade and lose. The lesson is cut - you're trading down and only take the best high odd opportunities.
Many traders think they need to trade all the time like day traders, or always need to be in the market, just in case they miss a move.
Well traders that are in the market all the time and don't tend to win they tend to get a wipeout for their troubles.
The high odds trades don't come around very often.
When they do you can execute your trading signal - but not until conditions are ripe to enter.
To give you an example, I know a trader that trades less than once a month and makes triple digit annual profits.
High trading frequency does not mean you will make more money in forex trading, on the contrary it improves your chances of losing.
2. Do NOT Diversify
You here a lot about diversifying cuts risk and all manner of technical equations are bought out to support the view - but its not so.
Diversification in most cases does not cut your risk but simply dilutes your profit potential dramatically. If you have a small account under $50,000 dollars you don't have the luxury of diversifying anyway, so don't bother - you will end up risking so little your guaranteed to lose, as normal volatility hits your stop.
If you see a good trade, load it up and risk as much as you can afford.
If you have the odds on your side then hit it and have the courage of your conviction to trade it for all its worth.
FINALLY
These are simple tips but they make total sense they make you focus only on high odds trades and they make sure that's all you focus on without the distraction of other marginal ones.
Try these two tips, there simple and they will help you enjoy currency trading success।
By kelly Price
Powerful Ways To Increase Your Profits
If you want to trade forex and want regular profits then following these simple tips can change an average or losing trader into a trader earning triple digit profits. Most forex advice would not agree with them but that's no problem 95% of traders lose! Let's look at them and how they can change your profit potential.
1. Understand the 80 - 20 Rule
We have covered this in greater detail in our other articles but in brief it postulates that 80% of our results come from 20% of our efforts.
This is true in many areas of life and is true for most traders in forex , they simply over trade and lose. The lesson is cut - you're trading down and only take the best high odd opportunities.
Many traders think they need to trade all the time like day traders, or always need to be in the market, just in case they miss a move.
Well traders that are in the market all the time and don't tend to win they tend to get a wipeout for their troubles.
The high odds trades don't come around very often.
When they do you can execute your trading signal - but not until conditions are ripe to enter.
To give you an example, I know a trader that trades less than once a month and makes triple digit annual profits.
High trading frequency does not mean you will make more money in forex trading, on the contrary it improves your chances of losing.
2. Do NOT Diversify
You here a lot about diversifying cuts risk and all manner of technical equations are bought out to support the view - but its not so.
Diversification in most cases does not cut your risk but simply dilutes your profit potential dramatically. If you have a small account under $50,000 dollars you don't have the luxury of diversifying anyway, so don't bother - you will end up risking so little your guaranteed to lose, as normal volatility hits your stop.
If you see a good trade, load it up and risk as much as you can afford.
If you have the odds on your side then hit it and have the courage of your conviction to trade it for all its worth.
FINALLY
These are simple tips but they make total sense they make you focus only on high odds trades and they make sure that's all you focus on without the distraction of other marginal ones.
Try these two tips, there simple and they will help you enjoy currency trading success।
Subscribe to:
Posts (Atom)
