Forex Trading Tools: Developing Your Skills For Consistent Profits

by Ryan Lee Daniels


There are several Forex Trading Tools available to a trader. Yet with the multitude of such tools, the number of traders that make it to consistent profits are still so few. So the question that begs to be asked is:Metlife variable annuity

If it's not the forex trading tools that make a successful trader, then what does?

Some of the tools required to trade the forex currencies are obvious and basic. At the same time, there are quite a few others that aren't. Yet it is these less obvious tools, while not having a direct impact on your trading results, influence your forex trading success in very subtle and important ways.

One of the reasons why forex traders find it so difficult to find success is not having the ability to see how everything works together in the forex markets. This ability to see the bigger picture is crucial to find success as a trader, because it influences the way you would use your trading tools to pull profits out of the markets.

The difference between novice traders and season traders is this:

Most novice traders only think about the minimum things required to start trading, while the experienced, seasoned traders often strive to utilize the maximum of the tools available to them.

In the game of forex trading, retail traders are usually the least informed and hold the weakest power to determine how the forex currencies. On the other hand, while the banks and large financial institutions have access to sophisticated forex trading tools, it doesn't mean as a retail trader, you require all these tools for forex trading success. But you DO need to have all the trading tools required for forex trading success.

So what do you need to start your forex trading career?

The Basic Forex Trading Tools to Start Trading

These are the basic forex trading tools that you obviously need in order to trade the forex currencies, but these aren't the only tools required for forex trading success:

1. Your Forex Trading Account 2. Your Forex Trading Platform 3. Your Forex Trading System 4. Your Forex Trading Risk Capital

In most cases, novice forex traders tend to think that this is all they need to become hugely profitable in the forex markets. It's so simple and easy, right? It's true, this is all you need to start trading. But what is not so obvious is that while this is what you need to START trading, it's not necessarily what's needed to be trading profitably!

Forex Trading Success is a journey where you, as a trader, are on a path of learning and growth. It's a journey from point A to point B, where point B is consistent forex trading profits.

To think that a novice trader can become wildly successful with just these four trading tools alone is thinking a towering 100 story building can be constructed with only a pencil, a piece of paper, and 4 bricks. Other elements and tools are used to build your forex trading business but because they are in the background of what's going on, they can be easily missed or dismissed in terms of their importance.

If these four tools are what is required for trading success, then we would have a lot more traders being profitable and rich, wouldn't we?

Developing Your Skill To Use The Basic Forex Trading Tools

Developing your skill as a forex trader is necessary to become successful. The quality of the product is due to the quality of the craftsman. The more highly skilled you are, the more you are able to understand and utilize the nuances of forex trading tools.

On the surface, it may seem the skills required to use these forex trading tools would be the technical knowledge. Knowledge of how your trading platform works, how technical indicators are constructed, what they mean, and what would be the best ways of putting them together to create a forex trading system.

However, forex trading success isn't a two dimensional thing consisting only of your trading account and a trading system. In reality, it's a multi-dimensional thing that encompasses you not just as a trader but as a complete person. You have to learn a forex trading system suitable to you, the appropriate type of risk and money management strategies, developing a daily forex trading routine that matches what you want to accomplish in congruence with your actual life, maintaining your records and other supporting skills.

And these skills as a trader can't be bought with money. It takes time, effort and discipline to develop your trading skills. Not only that, it does require actual trading experience to understand what emotions you go through and how to manage them in your forex trading business.

While it may seem to be a lot of work and study, it's definitely possible to become a successful forex trader. Just don't expect it to happen overnight, or you will be sorely disappointed. Even the best of traders are constantly learning new things about the markets, the subtleties of trading and of themselves as traders and persons. Although with the right forex trading education and mentorship you can reduce the time taken, in most cases you'll still have to go through the experience of learning what it takes to be a successful forex trader.



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Forex Trading - Is NOT Easy 95% of Traders Lose

The majority of forex traders think it is and make the same errors time and time again and there BASIC. Below I have outlined these errors, avoid them and accept the truth about forex trading and you can win and win big time.

First let's look at the most common errors.

1. Buying success

In forex trading there are plenty of vendors who will sell you a worthless course with no track record for a few hundred dollars and promise you un-told riches and guess what?

The vast majority are junk, have no real track record (a hypothetical one is not worht the paper its written on as its done in hindsight knowing the closing prices) and rely on hyped up advertising and lies to appeal to the greed and naivety of the reader.

Let's face it, if these vendors could do what they said they could, they shut up and not bother you.

2. Using tools that will NEVER work

Most traders use tools that will never work and here are just a few:

- Scientific Systems

Elliot wave and Fibonacci are the kings of these tools. Both believe that markets are scientific - well there not.

A child in school knows that if they were, there would be no market as we would all know the price in advance. A market is a market, because it depends on opinions of humans and they DON'T think logically or to a scientific theory.

- Day trading

The time period is to short. All short term volatility is random and you can never predict support and resistance in a matter of hours or a day. You may as well flip a coin.

Ever seen a day trader with a real time long term track record of profits? - Neither have I - Let me know if you find one.

- Lack of confidence and discipline

Even traders with good methods can lack this - You need to have rock solid confidence in your system to help you trade through periods of losses.

This is the HARDEST part of trading and most traders simply cannot do it.

It really is a learned skill but it takes time a total understanding of your method and knowing what your trading edge is - If you don't know what your edge is you don't have one!

The Truth About Forex Trading Is

The way to make money is not to follow others, or think its easy - its not.

The way to succeed is to work smart and hard and the rewards are immense.

Accept the reality that you need to devise a mindset to deal with an entity that is all powerful - only you can be wrong as the market price is right.

Learn to trade it by accepting this fact.

It's going to make you look stupid at times, but accept its power and work within its rules and treat trading as an odds game and you can win and win big.

Most traders are naive greedy or stupid - or even all three combined looking for an easy dollar and that's why they lose.

Get the right mindset work hard, understand yourself and understand the market, treat it as an odds game and you could win at forex trading.

Everything about forex trading success can be learned the rest is up to you.

Get Your Own Car with Student Car Loans

Being a student you need to walk a lot; sometimes to go to college and sometimes to get private guidance. And you are required to do so as today's hard work will garner you tomorrow's success. But haven't you ever thought about some relaxation i.e. a car that can save your time and help you reach places successfully without any stress? If so, welcome to student car loan. These loans are meant for the students who travel a lot and are seeking a transportation facility of their own.

Student car loans are offered by several lenders in the loan market. These loans are remarkable for their distinct features and attributes. First of all, here a student can access a good amount of money to purchase their dream car. Secondly the repayment period is also adjustable, which indeed help a student to pay off the loaned amount in easy monthly installments.

Student car loans can be opted by all sorts of credit holders. Persons having good credit can successfully utilize these loans to finance their desired car while a bad credit holder can also get their pick without any hassles. Moreover by repaying the amount of loan within adequate time frame, a person having bad credit also gets the flexibility to improve their adverse credit score.

Now, where to go for student car loans? Well, options are many. In order to get your loan, you can meet the lenders of the physical market i.e. your nearest banks, loan lending organization, financial institutions etc. But meeting these physical lenders and applying for a student car loan from them is quite time consuming. Rather you can go for World Wide Web. It is the best medium to reach to unlimited lenders of your choice. They offer free loan quotes and gives you a chance to compare these with one another. With all such available facilities, you can satisfactorily choose the best existing offer regarding student car loans and in this way can easily finance your dream car to get a hassle free traveling experience.

Providing Forex Trading Education

Several Americans and many other various nationalities are very curious and want to find out how to get proper forex trading education. The wealth that can be achieved by trading on the forex market can be very substantial as it is the largest trading market around the world. Metlife variable annuity It rough daily turnover is 2 trillion dollars. Anyone who is seeking forex trading training has the chance of getting a slice of that wealth. Aside from the huge possibilities for its traders, the forex market provides a huge list of benefits one of which is 24 hour financial transactions, its the most liquidated market in the world and provides real time efficient trading executions.
Before you decide to dive into trading you need to get a Forex trading education. Just like several other investments, you should never just dive into trading on the foreign exchange market without know what your getting yourself into. With the correct foreign trading education, you will be on the correct track to learn how to make a large sum of profit by trading on the forex market
So, what are the lessons that you will discover when you take place in a Forex trading education? You will comprehend the actual nature of forex trading training. As you very likely knew initially, Forex stands for foreign exchange or the synchronous exchange of a pair of foreign currency to a different pair of foreign currency. By understanding the nature of trading foreign currencies at the correct time, you are certain of gaining profit, although don't expect it to be as huge as the profits earned by professional and experienced Forex traders. To be successful getting a good Forex trading education will teach you how to do it.
The starting part of your Forex trading education will center on studying the Forex market background. Recognize that the Forex market has volatile market conditions that are constantly changing, most particularly the foreign exchange rate. Through getting a Forex trading education, you will know how to examine closely such market changes and make suitable decisions.
After you study and learn more about the various aspects of the Forex market, the next part of your Forex trading education is to manage the various risks involved. It is wise to learn about the risks that are involved when trading on the foreign exchange market. You need not to over invest or be overconfident at the thrill of opportunity of making huge money. Also on this part, you will learn how you will cut potential losses or getting out of a deal before your losses reach and even exceed your limits. It is natural that you will lose money when you start Forex trading. It is the most crucial part of your Forex trading education because it will determine whether you will end up making your way to riches or to a black hole.
Once you learn how to manage the risks, you will then need to know more about manage your Forex trading account. You will be involved in practicing Forex transactions using a demo account and virtual money. Doing so will allow you to get to grips of the best ways to use your trading account before getting into real trading transactions. With a Forex demo account, there is no risk involved yet the nature is just as realistic as the real Forex trade. Moreover, your Forex trading education will also let you know whether you are ready to do the real thing or you need more practice. Only then will you be able to start and manage a real Forex trading account.
There are several ways to acquire a Forex trading education. One of the best resources to get a Forex trading education is using the Internet. There are various free sites that allow you to open free Forex demo accounts to practice using your Forex system and trading strategies. There are also free e-books where you can read the necessary information about the Forex market and its attributes. Free webinars (web-based seminars) conducted in real time are available at random schedules. You may also seek some valuable advice from different active Forex traders. These individuals can provide you some insights and important advice regarding the subject of Forex trading.
Now that you know more about forex trading education courses, it is time for you to get some good forex trading education courses. Take your time and do not rush things. With an average daily turnover of $2 trillion U.S. dollars, there is just a lot of money involved in Forex trading. Prepare yourself to grab a slice of that wealth as well to the risks involved.
by Michael Carr

What is Forex Technical Trading?

Just as you would expect with anyone trading in equities, investors in the Forex market employ strategies to help them invest more successfully. Metlife variable annuity All of these strategies ultimately boil down to one thing: trying to predict which way the currency exchange rates will fluctuate. Predict correctly, up or down, and make a profit while we all know what happens when we are incorrect.
When deciding whether or not to enter or exit a position in the Forex market, there are two basic types of analysis from which to choose: fundamental or technical. Investors who base decisions on fundamental analysis will look at interest rates and the overall economic performance of the nations in the currency pair when deciding when to sell and buy positions. Technical Forex investors will look to trade based on price performance and chart patterns—so which is best?
Use of fundamental analysis such as the latest GDP figures may seem like a very logical approach when deciding when to buy or sell a position in the Forex market. After all, we all know that stock prices are affected by economic data so it would stand to reason that the same would hold true for the Forex. However, the Forex market has no central exchange with set hours so trading continues 24 hours per day except when shut down between Friday and Sunday and this makes a big difference between profitability and loss for small investors.
The small investor is a very, very, very small fish in a gigantic ocean full of larger investors. By the time economic data and current events filter down to the small investor, all of the big players have already moved their currency and taken advantage of the information. Day trading is a very dangerous game in the Forex because the market is so fluid and investors are highly leveraged so using fundamental analysis is a very dangerous strategy.
Technical Forex trading, however, involves the use of historical data to interpret present pricing trends and predict the future. The moving average (MA) is the most common technical statistic used by Forex investors. Presented in a graph or chart format, the moving average helps investors see the price movements of a currency pair for a given period of time. A 10-day MA, for instance, will show an investor the daily open, daily close, high, low, and overall direction of a currency pair for a 10-day period of time. It is called a moving average and favored by investors because it helps smooth out the noise of the price movements so an overall trend can be determined.
Technical trading involves entering or exiting a position based upon predetermined points by the investor. For instance, some investors may favor a 50-day moving average (the larger the sample, the smoother the lines and the easier it will be to see a pattern) and will only buy once the price moves above a certain point on the chart. Other variations on this statistic include:
• Simple Moving Average (SMA)—is based upon the closing price
• Exponential Moving Average (EMA)—assigns more weight to recent prices while lowering the importance of days further in the past
In the end, the technical Forex traders are trying to identify trends and then capitalize upon them. The goal is to find the currency pair with the greatest pip movement and lowest volatility. Technical analysis helps investors determine the emergence of new trends in currency pairs so that they can profit from them but no strategy will work with 100% accuracy because at the end of the day—the market is always right even when we believe our analysis is perfect!
By Kent Douglas

Forex Future Trading

By Tamil Selvi
The profits of forex over currency futures trading are significant. The difference between the two instruments range from truth-seeking realities such as the history of each, their objective viewers, and their importance in the modern forex markets, to more concrete issues such as transactions fees, margin necessities, access to liquidity, easiness of use and the technical and educational support obtainable by sources of each service. These dissimilarities sketched below:
More Volume = Improved Liquidity. Daily money futures volume on the CME is now above 2% of the volume seen each day in the forex markets. Incomparable liquidity is one of many advantages that forex markets clutch more currency futures. The truth told this is old news. Any currency professional can tell you that cash has been king since daybreak of the modern currency markets in the early 1970's. The actual news is that individual dealers from every forex risk profile now have full right to use to the opportunities offered in the forex markets.
Forex markets give tighter bid to offer increases than currency futures markets. By reversing the futures cost to evaluate it to cash, you can willingly see that in the USD/CHF example over, inverting the futures selling price of .5894 - .5897 results in a currency price of 1.6958 - 1.6966, 8 pips vs. the 5-pip increase available in the forex currency markets.
Forex markets offer higher advantage and lower margin charge than those found in currency futures trading. When trading currency futures, buyers have one margin charge for "day" buy and sells and another for "overnight" situations. These forex margin rates can differ depending on business size. When trading cash markets, you have admission to the same margin rates day and night. Certainly, trading on margin enlarges equally your fx profits AND your losses.
Forex markets make use of easily understood and across the world used terms and cost quotes. Currency futures quotes are inversions of the cash value. For instance, if the cash price for USD/CHF is 1.7100/1.7105, the future corresponding is .5894/ .5897; a method followed only in the limits of futures trading.
Currency futures charges have the added difficulty of with an advance forex part that takes into account a time factor, interest rates and the interest disparities flanked by different currencies. The forex markets need no such changes, mathematical manipulation or thought for the interest rate factor of futures agreements.
Forex trades performed through FOREX.com are charge free*. Currency futures have the extra baggage of trading commissions, trade fees and defrayal fees.

The Top Four Forex Brokers

This article contends that the best forex brokers are: Saxo Bank, GAIN Capital, GCI Financial Ltd., and CMS Forex. CMS Forex accepts no commission, demands a small amount of only $200 to establish a mini account, provides users with a Free Demo account, Metlife variable annuity provides leverage as high as 400:1, and has a 3 to 4 pip spread on major currencies.
Saxo Bank’s ForexTrading.com offers 24 hour online trading, streaming news from three major providers, detailed analysis from in-house experts, direct online chat to dealers, and a secure trading environment.
GAIN Capital gives its asset managers robust technology, wholesale dealing spreads, consistent liquidity, fast execution, and access to a wide range of sophisticated tools. GAIN Capital’s proprietary trading technology today supports over $60 billion in monthly trade volume. GAIN Capital’s FOREXTrader has streaming prices in 14 currency pairs, real time profit and loss account information, sophisticated risk management tools, a variety of simple and complex order types, and full reporting capabilities.
Professional dealing practices and a service-oriented approach has earned GAIN Capital a reputation as a world class provider of foreign exchange services. Client and partners from over 110 countries currently rely on their technology, execution and clearing services, and administrative tools.
For individual investors, GAIN Capital operates FOREX.com, which offers advanced, yet easy-to-use trading tools along with lower account minimums and extensive educational resources.
GCI Financial is one of the world’s largest online brokers offering commission-free trading in Forex. GCI Financial offers Internet trading software, fast and efficient execution, and the low margin requirements. GCI Financial’s free trading software gives the investor the edge in execution, market information, and account management.
GCI Financial offers forex and indices on an online dealing platform. In their forex trading platform the trader can add and remove instruments from the ""dealing prices"" window to fully customize the trading.
By Eddie Tobey

Forex What is Forex?

The FOREIGN EXCHANGE (FOREX, FX) market is not a "market" in the traditional sense. In fact, Metlife variable annuity it is the nearest to "perfect market" from economics perspective. There is no centralized location for trading as there is in futures or stocks. Trading occurs around the clock over the telephone and on computer terminals at thousands of locations worldwide. Foreign Exchange is also the world's largest and deepest market. Daily market turnover has skyrocketed from approximately 5 billion USD in 1977, to a staggering 2 trillion (and more) US dollars today. This is more than 100 times the daily turnover of the NASDAQ. Most foreign exchange activity consists of the spot business between the US dollar and the six major currencies (Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar). The FOREX market is so large, and is hosting so many participants, that no single player, governments included, can directly control the direction of the market. That makes the FOREX market the most exciting market in the world. Central banks, private banks, international corporations, money managers, speculators, and private individuals - all involve in FOREX trading. Foreign exchange (FOREX) is the trading of contracts of currency pair exchange rate. It is a NON-DELIVERY trade, which means that there is no physical transaction of currencies, but it is rather an agreement, or "contract" (FOREX DEAL), to trade specific volume of a pair of currencies at an agreed exchange rate. The magnitude of such FOREX trade is that, in order to make the deal, only a proportional amount is needed (the COLLATERAL, or the MARGIN). Thus, if the currency pair exchange rate has changed by some percentage, the value of the MARGIN invested would accordingly change, however - in a much higher proportion. In fact, the change to the Forex trader's investment (the MARGIN they deposited), will be the actual change occurred to the exchange rate, multiplied by the MARGIN ratio. For example: a FOREX DAY-TRADING deal has been made, for buying EUR100,000 against USD, on an exchange rate of 1.2000. The MARGIN required for this deal (offered by the FOREX Trading Platform) is of a ratio of 1:100. Accordingly, the trader invests only USD120. After a few hours, the exchange rate went up to 1.2300. This is an increase of 0.82%, quite normal for the global Forex market. However, thanks to the MARGIN ratio, the trader's investment went up by (1:100) 82%!! Same could happen in the opposite direction, however - the traders cannot lose more than their original MARGIN deposited. The Forex market offers today FOREX trading not only in MAJORS (the leading world currencies) but also in many other currency pairs (including exotic, gold and silver, etc.).