You have to know these in order to trade the Forex Market.
This is the smallest fraction of any currency and is used as an incremental/decremental for the currency pair. In dollar currency, 1 pips represent 0.001 Dollar. In Cross trades Japan currency, 1 pips represent 0.01 Yen. Trades are executed by entering the pips of the currency. Profit take and stop loss are measure in terms of pips also. By looking at any currency price chart, you will find the currency values in pips.
All Forex are traded in currency pair. One currency is paired with another currency to form a paired currency and using this rate to establish the exchange between to country. Every country have their individual currency note. If you are holding on to United State Dollar and you intend to change it to Europe Euro, you will be using the USD/EUR rate.
Buy or Sell
In trading of Forex, you will always be holding a currency as the default or holding capital. And use it to buy or sell another currency. Due to the conversion of currency via the foreign exchange market, you can buy another currency and sell it later, or sell another currency first then buy in later. Either way you are still using your default capital money to use for the trade. As a rule of thumb, always buy low sell high, irrelevant of the time involved.
Now you know the basic, you can begin trading Forex in 3 simple steps.
Create a trading account with your preferred Forex Broker. The broker am using is InterbankFX Australia and Alpari UK. They are established and provide MT4 Platform for trading Forex. The deposit and withdraw are fast and hassle-free.
Fund your capital. Next is to get your money into your newly created trading account. The default holding currency is United States Dollars. While you can choose many other but am using USD as the main currency because of the currency pair that I normal trade are the Major and USD related currency pair.
The last step is to buy and activate the Expert Advisor on your trading account. You can choose a number of program to run but there is a few which I have filtered and give good results in the long run. Simply install your MT4 and run your EA program on your trading account and see your results.
The above are 3 simple steps where you don't need to go thru many hours of trading or training to learn Forex. You can see my review of the Forex Broker and the Expert Advisor program at my website. Simply choose your preferred broker, create an trading account, fund your capital, buy a EA and install MT4 and run your EA on your trading account to gain passive income.
The guide for reading long-term trends in the foreign currency market
To thrive in the marketplace traders must anticipate, enter, and stay with trends in the foreign exchange market.
In this much-needed guide top forex, expert Greg Michalowski clearly explains the attributes of successful traders, and shows how traders can set themselves up for success by drafting an explicit mission statement and game plan. The book also contains the tools and techniques traders need to read the markets and identify when a market is in a trend. Michalowski shows traders how to enter an emerging trend, how to manage the position, and how to exit the position most effectively.
- Includes the technical tools needed to invest in the foreign exchange market: moving averages, trendlines, and Fibonacci levels
- Shows how to identify a trend and stick with the trend through its duration
- Written by Greg Michalowski who was cited by SmartMoney magazine as a "go to" source for making money moves
With this book, Michalowski offers an important resource for identifying and riding out long-term trends in the volatile foreign currency.
Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market (Wiley Trading) Click here for more amazon customer reviews and rating...
Your plain-English guide to currency trading
Forex markets can be one of the fastest and most volatile financial markets to trade. Money can be lost or made in a matter of seconds, and forex markets are always moving. So how do you keep up? This hands-on, friendly guide shows you how the forex market really works, what moves it, and how you can actively trade in it — without losing your head!
- All the world's a stage — get an easy-to-follow introduction to the global forex market and understand its size, scope, and players
- Show me the money — take a look at the major fundamental and economic drivers that influence currency values and get the know-how to interpret data and events like a pro
- Prepare for battle — discover different types of trading styles and make a concrete strategy and game plan before you act on anything
- Pull the trigger — establish a position in the market, manage the trade while it's open, and close out on the most advantageous terms
Open the book and find:
- Currency trading conventions and tools
- Key characteristics of successful traders
- Trading pitfalls to avoid and risk management rules to live by
- How major currencies typically trade
- Why it's important to be organized and prepared
- The 411 on buying and selling simultaneously
- Tips for understanding rollovers and interest rates
- Grasp currency quotes
- Capitalize on the foreign exchange market
- Manage risk and reward
- Use the forces that drive currency movements
- Identify key traits of individual currency pairs
Currency Trading For Dummies Click here for more amazon customer reviews and rating...
Forex trading can be remarkably lucrative—and complex, confusing, and risky. Too many investors dive right into Forex, suffering big losses. If you want to trade currencies successfully, read this book, take your time, and plan accordingly. The $4 trillion Forex market will be waiting.
All About Forex Trading walks you through everything you need to know to make currency trading a vibrant part of your diversified portfolio and generate handsome returns—regardless of what is happening to stocks and bonds. Whether your investing style is conservative or aggressive, this no-nonsense guide has what you need to build a powerful Forex trading strategy. Learn all there is to know about:
- What (and who) drives currency prices
- Investment vehicles for Forex trading
- Technical analysis techniques
- Key fundamental indicators
- Navigating the economic calendar
- All the traded currencies—from the Americas to Europe to Asia
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