What Forex Traders Should Know About The Forex Market

By Bart Icles

The foreign exchange market or the forex market, simply put, is a market that deals in trading different currencies. The purpose why it came into existence is to help the international trade and investment world be able to function well. It allows different types of institutions buy and sell currencies easily.


The forex market that we know today started in the 1970s. Its qualities are very unique as compared to those of other financial markets because of the following characteristics:


1. Trading in the forex market can be done in volumes.

2. The forex market is geographically encompassing.


3. In terms of liquidity, the forex market is incomparable.

4. The forex market offers its traders long hours of trading activities. As a matter of fact, forex trading activities can be done on a twenty-four (24) hour basis except during the weekends, specifically from 10:00 PM UTC on Sundays until 10:00 PM on Fridays).


5. There are a variety of elements that affects the forex market exchange rates.

6. The power of leveraging is really very useful in the forex market.



Because of the characteristics previously mentioned, the forex market is referred to by many financial analysts financial market professionals as the "closest to perfect" financial market. It is an ideal venue to invest good money in because of its extreme liquidity. In fact, according to the Triennial Central Bank Survey done in December 2007 by the Bank of International Settlements, the forex market averages a total daily turnover of around 3.98 trillion US dollars, with about 1.0005 trillion US dollars through spot transactions, 1.714 trillion US dollars through forex swaps, 362 billion dollars through outright forwards, and 129 billion US dollars as estimated gaps. This figures make it the most liquid, not to mention the largest, financial market in the entire global financial market, and because of these facts, a lot of people from all walks of like want to have a share of a piece of this very liquid financial pie.


The forex market is still continuing to grow even amidst these times of financial crisis. In fact, according to the FX Poll of Euromoney, the volumes being traded in the forex market grew at about forty-one (41) percent within a year, between 2007 and 2008.


Even with these figures and seemingly obvious reason to not lose in forex trading, still, a lot of people are not successful in their ventures in the forex market. Why? This is because they are not giving themselves the benefit of learning the ropes. Some of them just assume that since the forex market is a very liquid market, they have no way to lose as long as they gamble. But then, it is, in no way, a gambling arena. To earn even just a semblance of success in it, an aspiring forex trader should learn the ropes first. - 23309

About the Author:

Managed forex trading starts with a desire to learn and a drive to become a great trader. Learning mini forex trading takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Forex Made Easy For Beginners

By Ronald Lewondski

I truly believe that one of the last great investment opportunities lies in the forex market. Let me explain. The dynamics of this huge market is unbelievable, to the point of two trillion dollars a day. If that doesn't make your mouth water then making money is not for you. As awesome as this sounds it will eat you alive if you don't know what you're doing. So forex made easy is the topic for today.

The foreign exchange market in my opinion is easier to get a handle on then say the stock market. Imagine just starting and trying to do some research in that market. Which one of the thousands of companies being traded are you going to focus on? Not to mention the intricacies of the market itself. With foreign exchange we only look at several different currency pairs.

With the internet it has never been easier to start in forex as a complete beginner. Forex made easy is as simple as getting automated forex software to trade for us. Or to really start learning the markets subscribe to a well known forex signal service and make your own trades. Anyone at any level can find what they need to excel at trading currencies.

With the creation of expert advisors and forex robots we now truly have "forex made easy". It doesn't get much simpler than this. Open up an account with your favorite broker, drop in your robot, and watch it trade automatically for you. This is truly the easiest way to get started. And while it will not guarantee you riches, you will be able to get started almost immediately.

Now the robots are exciting and a great tool. But they are just one tool in your arsenal. Make sure you do your research before just opening up your wallet and buying one. While all the claims on the sales page sound awesome they are just that, claims. Get involved in some forex and actually talk to experienced traders. Either way you will always want to test your robot on a demo account before trading with actual money.

In my opinion forex signals are the best thing for you to not only make money as a beginner but learn how the market works while you are trading. The signal providers send you messages on when to make a trade based on their years of expertise in the market. You can decide whether or not to make the trade and put it in yourself. A good provider can definitely help your profit margin in the short and long term.

If you are serious about trading I would look into some manual trading systems as well. Not only can you apply what you learn almost instantly but you can actually start to see how the market works for yourself. A great addition to your daily research.

Regardless of what you decide to do, "forex made easy" is absolutely achievable. Don't worry if it seems baffling at first. The main thing is that you find a winning mix of systems that work for you. After you do that, it's all about bringing in a healthy return on your investment. - 23309

About the Author:

If you want forex made easy the be sure to check out http://tradingforexblog.com

Can Personal Budgeting Help Me Avoid Financial Ruin?

By Emma Elvie

We wanted to write an article on personal budgeting to help our readers learn more about what they can do to avoid financial ruin and avoid filing bankruptcy. You will find some great tips that people can use to save more money.

Money Coupons: Most people do not realize that this can be the biggest rule to personal budgeting that will help you save money. How come? When you take the time to cut coupons and use then when you do your shopping you can easily cut your grocery bill down each and every month.

Bulk shopping: If you notice that your favorite foods that you eat a lot of the time are on sale, then you may want to consider picking up more than one item. You will realize that as long as they do not have an expiration on them such as, soap, shampoo, toothpaste and other household items that you use can last you a long time. You will discover that doing this can save you a lot of money in the long run.

Start collecting and saving your pocket change each day this is great for helping you with your personal budgeting plan. In fact before you even realize it all that loose change will add up to an extra $50 or $100 each and every month.

When it comes to personal budgeting most people do not give any thought to their coins; they usually just get rid of it because it is not a dollar bill. However when it comes to personal budgeting it is vital that you start focusing on everything.

Put a portion of each paycheck into a savings count each week or month. Whether its a few dollars or several hundred, always make sure that you are putting aside some amount of money into a savings account. If possible, deposit 10-20% from each paycheck.

Impulse shopping: People who do this type of shopping usually end up regretting the fact that they did it. If you want to avoid buyers remorse then the next time you want to make a purchase; take some time out. If you stop and take a couple of days before making the purchase you will be able to think rationally to see if you can afford it or not.

Shop when there are sales: There is nothing wrong with going shopping and sprucing up your wardrobe when the season chances; however make sure that you keep your eyes peeled on shopping at the sales racks. You will be amazed that when you are not paying full price for your items it will help you keep extra money in your pocket each and every month. After a while all that extra money that you saved can be used for all of life's essentials that we seem to need.

We have provided you with just a few of the personal budgeting tips that have seemed to help people avoid bankruptcy. Be sure to stop by and visit the site below for more great tips and resources that you can use to get your finances back under control. - 23309

About the Author:

Money Saving Tips That Actually Work! How To Spend Less Money

Trading Divergences

By Ahmad Hassam

Divergence trading is one of the ways to trade the market. Though divergence trading is not often used but if used correctly it can be highly profitable. Divergences are often used as important trading signals. But it doesn't mean that divergences will always predict a reversal correctly. Price oscillator divergences have long been acknowledged by technical traders as a solid indicator of potential price reversals. Well defined divergences particularly on the long term charts can be surprisingly accurate in many instances.

Price divergence oscillators can be spotted with just two elements on the price charts. Catching a major price reversal at the correct time can be so profitable that only a few accurate divergence signals are needed to offset the inevitable false signals.

The first element is the price and the second element is an oscillator that runs either above or below a price level. This second element can be Stochastics, RSI, MACD or any similar oscillator.

Many traders use MACD as their sole confirming indicator. The Moving Average Convergence Divergence (MACD) is among the most popular technical indicator or an oscillator invented.

Some traders also take trading signals exclusively from MACD. MACD is a multifaceted indicator that acts as a sign of trend momentum by representing the relationship between two moving averages.

MACD is basically the difference between two moving averages. MACD can be traded by taking signals from the crossovers of two lines, crosses above and below the zero line. Relative Strength Indicator (RSI) is another popular oscillator that provides a measure of price momentum.

RSI is an indicator that gives overbought and oversold signals in ranging markets. RSI may also be used for divergence purposes. However, its usefulness like most other indicators tends to diminish during a trending market. Stochastic indicator may also be used for divergence trading.

Technically speaking what is a divergence? When there is an imbalance between the price element and the oscillator element a divergence occurs. This is the point when the oscillator is providing a strong hint that price may be losing its momentum and a change in price direction may therefore be impending. Both the price action and the oscillator begin to go separate ways and start telling opposite stories.

A bearish divergence is a hint for an impending reversal back down. A bearish divergence occurs when the price hits a higher high while the oscillator hits a lower high.

A bearish divergence is an indication that price may soon turn and go back down as the higher high in the price may lose its momentum and begin falling.

A bullish divergence is an exact opposite of the bearish divergence. A bullish divergence occurs when price hits a lower low while the oscillator hits a corresponding higher low. A bullish divergence hints at an impending reversal back up.

Divergences can be a remarkably effective method for helping to time major market events when used in conjunction with other trading tools. Divergences are often used as hints of possible turns and reversals. However, divergences are not frequently used as a full fledged self sufficient trading strategy. - 23309

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try These Cash Printing Forex Signals From Heaven! Learn Fibonacci Retracement

Picking A Winner

By Bo Miller

Small cap stocks, AKA penny stocks make for some good conversation. Many investors have developed the skills needed to profit by trading them and now love them. At the same time many investors do not understand how penny stocks work and end up losing money.

So with some investors winning and some losing how do you know when and how to invest in these so called "penny stocks" to make some some good profits. Well there are several things that profitable investors are doing to cash in on these types of investments. By the end of this article you too will know what is needed to make good money trading penny stocks.

One of the first things that every good investor does is find a company who is on the verge of breaking out. Now it may be that they have found a cure for cancer or developed a new technology that will change the world. Their profit has been steadily increasing in the last few quarters. Their chart shows all the signs of an upward trend. It seems like all the signs are saying this company is a winner! however we must be very careful before we dump our hard earned money into this company.

Many companies will provide online interviews of the CEO's, this is a great tool and helps investors to better understand the goals and plans of the company. Many investors think wrong about these types of companies. One common thing said about these companies is " if they are so great why are they so cheap" however most companies started out small. Think about dell and apple computers, apple was started from a garage and look how large the company is today! so never underestimate the power of the small business.

Nearly all of the successful penny stock investors do all of the above. There is a way to cut down your research time, let the pros pick the best stocks for you. The web is filled with great penny stock newsletters that will deliver the best investment opportunites straight to your inbox. - 23309

About the Author:

Wanna know how to make money trading penny stocks? then sign up for the FREE newsletter at SmartPennyStock.Com where you will receive the hot penny stocks that will make your account grow.