Daniel

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Why Is A Mentor Necessary To Succeed At Forex (FX) Currency Trading?

Forex (foreign exchange) trading, which is buying one currency while concurrently selling another, is getting a considerable amount of press as an attractive alternative to trading on the stock exchange. Among the reasons of Forex trading becoming a popular alternative is that Forex provides a 24-hour market, lower transaction fees, and no one entity can corner the market because of its sheer vastness. The drawback is that it is not easy to learn Forex trading on your own. While it can be done, the lessons can be relatively expensive.

A Forex mentor will help you learn the ropes of Forex currency trading. With so many people out there offering the same service with different methods of delivery, how do you determine which method of learning is best for you?

With all the e-courses, videos, books, and seminars that are easily available online and offline for a price, it is difficult for you as the consumer to guess which one will be the one that clicks for you. You have to examine several options before purchasing one that works and some people go through several methods and never find one that actually helps them learn Forex trading. While this is not rocket science, it can be quite confusing and a little knowledge can be more dangerous and expensive than a true education.

I’m not saying that a four-year degree is necessary, nor are college courses in Forex trading, but a proper education is never a bad idea, especially when you’re putting your money on the line. Investing in books, videos and seminars is a great plan if those things work for you and you feel that you are prepared properly and adequately for Forex trading once you’ve completed the material. If this is the case, then it is money well spent. Most people, however, end up with more questions from these sources than answers.

This is why I suggest a mentor to assist you in the process of learning Forex. A mentor is a teacher, guide and companion on your journey. A Forex mentor is someone who will use his experiences in Forex trading to teach you the necessary skills to be successful. He will use his past successes and failures as examples to help you get started. He will help you identify your best method of learning and choose materials that will assist you according to what you need. A mentor will save you countless hours of research that will not help you as well as thousands of dollars purchasing ineffective material. You are also likely to find that you are making profitable currency trades much sooner than you would have been without utilizing the services of a mentor. ( Part II )

What Is Forex Legend?

Probably heard by now the latest Buzz about Forex Legend. What is it?  and is worth all the hype?  Lets review

So several weeks ago Forex Legend deposited $2000 in 50 different forex trading accounts, and recorded the results live. What where the results?

The Only Way To Separate Fact From Fiction Is With
REAL Live Proof!
The beauty of this whole competition is that you are able to follow along with the results live as if it were your own trading account. Verified by myfxbook.com,  you will see forex robots earn up to %560 in less than three months. To see results

Have you paid for $100 forex robots before?  or heard of lousy result from these types of robots?  They are mostly true, these lower cost robots will work for several months then results will drop off dramatically or quit all together. The forex robots that Forex Legend are worth quite a bit more than $100,  but the results speak for themselves.

If you are looking for the next great investing opportunity, this is it.  Compare it to buying Appple in the 80′s or Google at IPO,  you do not want to miss this opportunity.

Even if your not interested in buying a forex robot, you can learn some free forex trading information  by going to check out some of the results from Forex Legend, what have you got lose? Check it out here

P.S. You will be glad you did,  I know I am :-)

Forex Scalping

What is Forex Scalping?

Forex scalping is a popular forex trading strategy where the trader makes several small trades in the course of a trading day. Compare it to the game of baseball, where a team is said to play ‘short ball’ making hustles and stealing bases, doing many small plays instead of going for the home run. Forex scalping is like that. Scalping is a quick, adrenaline filled way to trade and not for the faint of heart. It does allow for some quick profits. Though many scalpers will disagree, this method of trading has a higher risk-reward ratio than more conservative trading. To counter this, most traders use tight stop loss limits to prevent big losses. The benefits of scalping is quick profits and peace of mind when the day is over as there will be no outstanding trades. The drawback is the difficulty involved and the cost of scalping which can be high with a broker with high commission.

What Time Frame Is Used in Forex Scalping?

Scalpers need all the up to the second information they can get and therefor use very short time frames on their charts such as ticks, 1, 3 and 5 minutes. The purpose is to spot easy and quick entry and exit points. Scalpers thrive on high liquidity and do not look for long term patterns. This is why the short time frame is preferred.

How Much Is Invested In Each Trade?

Since scalpers deal in very small pip ranges, they need to increase the amount invested in each trade. Compare it like this: 150 pips x $2/pip = $300 profit (two hours to complete this transaction) or
5 pips x $60/pip = $300 profit (5 minutes to complete this transaction). As you can see, scalping is high risk – high reward. Combine a scalping strategy with high leverage and you have a potent combination for boom or bust.

What Are The Benefits of Forex Scalping?

Since scalpers are willing to take relatively bigger risks on each trade, they can also make more money. It happens much more often that the market moves 5 pips than 150 pips, which means scalpers can take home profits several times a day if done right. Scalpers usually go for profits anywhere between 2-15 pips, which combined with leverage can make for very healthy profits.

What Are The Negatives of Forex Scalping?

Scalping carries more risk than conservative trading as the amount invested pr. pip is greater. This means that it is crucial with proper stop loss management. As all traders know, that is easier said than done. Scalping is definitely not for the timid. Also, forex brokers do not particularly like scalping because it costs the money to execute a trade. Some brokers counter this with high commissions that make it difficult to be profitable.

Pros and Cons of Etoro Forex Trading

Etoro forex trading is an online forex trading platform which aims at assisting the trader to begin and successfully improve their performance in the market by offering basic forex education, web trading lessons and social trading lessons.

The platform hopes to democratize the market by giving all the participants an opportunity to gain knowledge on both the basic and complex features of the financial market by teaching, educating and encouraging people who are interested in doing trades in the forex market.
The etoro forex trading platform is available to both beginners and also experienced traders. For beginners, the platform provides them with insights on the basics and initial steps in which to apply in the financial market. This is done through; the no risk trading, personal trading coaches, friendly graphical interface and low investment.

The experienced traders utilize the platform by gaining more knowledge and strategies aimed at improving their performance in the market. This is done through; the platform offering spread as low as two percentages in points, automatic execution and a personal account manager amongst others.

The platform also provides unique opportunities for both beginners and experienced traders to learn the best market tactics by following the activities of the successful traders in the market. This is achieved by utilizing the features which enable traders to follow their trader of choice and even copy their activities with an aim of emulating their trends.
The etoro forex trading program usually runs on windows operating systems with a web trader tool which enables traders to use the platform online without having to download any software.

However for traders to successfully use the platform, they must register and then proceed to download the program from the relevant website. Thus it is important for trader who wishes to excel and perform well in the financial market to utilize the features provided by the platform.

New Zealand Dollar Depreciation Encouraged By Central Bank

The New Zealand dollar was lower today on the issues concerning the impact of Germany’s moratorium of short selling on the European economy and after the Governor of the central bank said that the slow depreciation of the currency is what is needed.

The quotes of the New Zealand’s central bank policy makers caused people to guess that the bank isn’t going to increase the interest rate soon and that they maywant the eventual depreciation of the currency. Alan Bollard, the Governor of the Reserve Bank of New Zealand, said:

A slow and steady depreciation of the New Zealand dollar remains a likely outcome for a sustainable recovery of the New Zealand economy, as it would increase export returns and weaken household spending on imported products.

NZD/USD traded today near 0.6786 as of 12:52 GMT, rising from its opening price of 0.6936.

If you would like to comment on the New Zealand dollar’s recent activity or have any concerns regarding this world currency, please, feel free to leave a comment.

Traders Panic, Loonie Down From Germany’s Ban On Short Selling

The Canadian dollar lost ground today against some other popular traded world currencies, including the U.S. dollar, the euro and the Japanese yen, soon after the route of the German leaders to ban naked short selling, resulted in the risk sentiment to deteriorate and the investors to avoid the high risk assets.

In short sales the investors borrow the assets, counting on the future decrease of the prices. In naked short sales the borrowing of the actual assets doesn’t happen, creating opportunity for unlimited bets. The German leaders concluded the last practice is destroying the economy and deleted it in hopes to improve the overall economic affairs. The decision revealed exactly opposite results, causing the uncertainty and volatility in the markets and causing the traders to bail on German investments.

These economic conditions tends to draw the investors’ sentiment towards the less risky investments, causing the currencies tied to the growth to contract. The chances for the increasing interest rates waned as the volatility in the markets grew. The analysts say that the Canadian currency may fall to 1.0700 — 1.0750 per the U.S. dollar.

USD/CAD traded at 1.0427 as of 20:46 GMT today after it opened at 1.0389. EUR/CAD traded at about 1.2945 after opening at 1.2679. CAD/JPY traded near 87.96 down from the opening rate of 88.73.

Economic Growth In Japan Gives Strength To Yen

The Japanese yen advanced today after the country’s gross domestic product increased, signaling about the growing pace of Japan’s economic recovery.

The gross domestic product grew at the annual 4.9 percent trend in the first quarter. Japan’s economy is slowly recovering, as was confirmed by the Goldman Sachs Group Inc., which said about “solid growth driven by external demand and policy stimulus”.

USD/JPY traded near 91.26 as of 8:46 GMT today after it opened at 91.67. EUR/JPY traded at about 113.19 after opening at 113.80.

Are you prepared to currency trade?

Currency trading is the most popular way to earn to money and it is without doubt a very profitable market. However few are familiar with its unpleasant intricacies and most ignore a very important aspect: risk. It is not enough only to be given the chance to invest your money successfully, you have to be careful because Currency trading can be an efficient trading system or it can ruin you. Why is Currency trading risky?

– Currency trading is very unstable. It is the subject of rapid and overwhelming changes. The market is volatile and it is influenced by political events.
– One can loose at any time especially when he has just ventured into Currency trading. Experience, information and attention are necessary.
– Some unexpectedly loose the Risk Capital which sometimes consists of College money, the retirement funds or some other substantial sum that shouldn’t have been considered as Currency trading capital in the first place.
– Fluctuations in currency prices, discrepancies between interest rates in two different countries, insolvency of financial institutions that take part in transactions and limited flow of exotic currencies will most likely lead to loss.
– Large profits and minimal losses are impossible to predict with 100% certainty.
– The Currency trading market has great winning potential, but it also has loss potential.
– Misinformation and the emotional baggage are most of the time cause of loss. Use facts, not hope or fear, when Currency trading.
– Sometimes trends can lead to money loss.
– Huge leverage is available to traders. This leads to dangerous positions that risk too much in comparison with the size of the account.
– Lacks of money management and of back testing plans are the mistakes that currency traders make sometimes.
– Using brokers is sometimes inefficient because this counterpart can refuse to trade during volatile market conditions affecting the retail trader. They can even widen spreads. However it is recommended to collaborate with a broker, because he can deal in the interbank market and he surely knows more about Currency trading making it safer from other points of view.
– Scams were very common years ago when dealing with a broker. However, one can be confident with the person he is working with by checking their background and the Institutions he is associated with (large banks, important insurance companies).

Don’t be frightened! It isn’t all about risks. And don’t start trading in fear! You will loose this way. You just have to keep in mind all possibilities and avoid unwanted situations only you can get yourself into. All Currency traders have to be very well informed about their activity. They have to know technical analysis and how to read and interpret charts, they have to develop effective strategies and minimize risk. The financial exposure has to be limited and this can be done in many ways available to currency traders who inform themselves.

So, educate yourself, be prudent, take risks only when you can handle loss and always be prepared for anything. And have this in mind: If Currency trading isn’t profitable then why are so many financial investors, banks, international institutions and important players that obtain huge amounts of cash by simply turning their own money into other currencies?

Mini Forex Trading – What You Need To Know

Forex trading is the new way to make money through online currency trading. With a worldwide market and over 60 currencies for you to trade there has never been an easier way to make money online.

Forex trading until recently was reserved for banks and other large financial industries but thanks to the power of the internet and online currency trading, forex has now become feasible for everyday people. The forex market has become the largest trading market in the world and each day there is an estimated turnover of over $1.5 trillion dollars. Another added bonus is that forex trading is available 24 hours a day, 5 days a week unlike most other markets that operate on an 8 hour day. This means that people wishing to trade forex can do so at any given time.

Forex currency trading is done is pairs and these are known as crosses. These pairs are always against the US dollar and the main crosses you will find when trading forex are the USD/EUR and the USD/GDP. The most popular crosses are known as majors and these can make forex traders great profits. Currencies change on a regular basis and are based on the how the world financial markets see the value of the currencies. You can sell or buy these currencies and forex brokers do not charge commission fees.

There are two types of forex accounts; a mini forex account and a regular forex account. Mini forex trading is an excellent way for small investors to learn about and take part in forex trading and with the most forex brokers offering a leverage of 100:1, mini forex trading will allow you to control a $10,000 currency position with a deposit of only $100. Mini forex trading is a great way to get a feel for forex trading and learn the tricks and skills needed to succeed without having to go to great expense. Why not try mini forex trading now and see just how easy it is to profit with forex trading.