What A Forex Trading Blog Offers And How To Choose A Reliable Blog

The lack of knowledge and understanding are what hinders individuals from venturing in forex trading. It's not new to anyone that forex trading entails a lot of risks, not just simple risks but highly risky ones. And everyone knows how complicated trading can be. Some even think that forex trading is just for those selected…

The lack of knowledge and understanding are what hinders individuals from venturing in forex trading. It's not new to anyone that forex trading entails a lot of risks, not just simple risks but highly risky ones. And everyone knows how complicated trading can be. Some even think that forex trading is just for those selected few individuals and have the extra time to spare and extra cash to invest. However, this is where most individuals are wrong. Forex trading is open for everyone and the entry point is pretty low, this means that everyone who wishes to achieve financial freedom can actually join such investment.

There's a solution for the lack of knowledge and understanding and that is by simply following a forex trading blog. Regardless if you're an aspiring trader or a seasoned trader who simply wants to widen his knowledge, following a reliable and informative blog is very beneficial. But what do blogs offer to traders?

New or seasoned traders are usually informed about the new products, systems or tools that you can use in order to make trading easier. Apart from this, blog followers will also get a glimpse of the upcoming events regarding the forex market that might have an effect in your trading. Traders who follow forex trading blogs will also be updated about the current trends and movements in the forex trading industry, that enabling you to make better and more lucrative decisions. For new traders, they can also get the tips and guidelines that they need in order to make a good start in the forex trading industry.

But will the forex blogs out there, how can a trader choose the ideal forex blog? How will they know which to follow?

For aspiring traders, you do not needlessly need to follow just one blog. You can follow different blogs at the same time. Just be sure that the tips you are reading are worthy and worth following.

Worth mentioning as well, it's best to follow blogs that are written by forex traders as well. Traders with blogs typically share their experiences and tips as well as solutions for specific problem that they've encountered and that you may encounter sooner or later. With their experience talking, they are considered as more reliable sources as compared to other blogs that you see out there.

Lastly, do not just focus on the blog posts. The comment section is worth checking as well. In fact, it's a minefield of information and tips as well. This is where other bloggers and readers as well as traders interact and exchange information regarding different topics and trends and sometimes solutions. Choose a blog that has an active comment section for each post that it publishes. This proves that the posts you are seeing are worth and that more traders are also checking the updates that this particular blog is publishing.

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The Leverage in Currency Trading (FOREX) – How to Use It?

With the global penetration of CFD trading, and especially the availability of FOREX trading to retail investors, the use of leverage has become a normal practice around the world. However, the misunderstandings about the nature of this financial instrument and how it could affect one's account still persist. People are concerned with the possible negative…

With the global penetration of CFD trading, and especially the availability of FOREX trading to retail investors, the use of leverage has become a normal practice around the world. However, the misunderstandings about the nature of this financial instrument and how it could affect one's account still persist. People are concerned with the possible negative effect the leakage could have. Their fear is based on the fact that just as the used leverage may speed up the profits, it may also magnify the losses. In order to counter such fears and establish some proper use of the available leverage in FOREX trading accounts, we should first define what leverage is.

Unlike the most of the stock trading, in a FOREX trading account, traders may use borrowed money to buy or sell a larger amount of a currency than their invested cash. That borrowed money is the leverage used. Usually a FOREX account would come with a margin requirement of 50: 1, 100: 1, 200: 1 or even 400: 1. This means that if one's account offers 200: 1 margin (or 0.5% of the face value of any deal is needed as a real cash), this would mean that in order to trade $ 2000 that person has to have at least $ 10 available in their account. The real margin requirement used in the trading platforms sometimes differs from the initially offered one. The initial one is the maximum margin level that the trader might ever use on a single trade. The real margin is usually lower. For instance, in FXCM, one of the largest FOREX trading agencies in the world, the real margin requirement for the EUR / USD currency pair is $ 7.5 per $ 1000 traded. This makes the real margin requirement equal to almost 133: 1. Still their maximum offered margin requirement is 200: 1.

In order to connect the margin requirement to the leverage used we should specify that the margin requirement we talk about, is per trade. The leverage however could have been regarded as the amount of borrowed money a trader uses for all of his or her open trades in any given period.

Here is an example:

Let us say that a trader bought € 10000 and paid it with US dollars. To make things more simple, let us assume that the trader uses the above mentioned FXCM as their FOREX broker. In this case, $ 75 of their equity would be used on that EUR / USD trade. If the account of the trader has $ 5000 cash, this would mean the trader has engaged only 75/5000 = 1.5% of its account. The other 98.5% are generally available to be used in other deals. The leverage used would be (10000-75) / 5000 = 198.5% or about 2: 1. This is hundred times lower than the leverage of 200: 1 available to the trader. If after a while she decides to buy another € 10000 against the USD, this would take another $ 75 of her equity. The trader has now used 3% of her account and has a remaining safety net of 97%. The leverage used would be the sum of the real borrowed money for the two deals, ie about 400%, or 4: 1, or fifty times lower than the whole available leverage.

Let us elaborate a bit on this hypothetical example.

It is obvious that the maximum theoretical size of a position which a trader could open equals to the amount of cash in the account times the margin requirement. In our case this would equal a position of $ 1000000. The main problem with such a big position is that a movement of 1 pip (that is when the currency rate changes with one hundredth of a cent) results in $ 100, so the account could only withstand 50 pips of a negative movement. A movement of such a size is not a rare event in the FOREX market. So we came to one of the main risks which are associated with trading on margin and using leverage to boost your potential profits.

Things look different regarding risk however, when we realize that traders are not obliged to use all the leverage available to them. A trader may use only a percent or two of the whole leverage available and have the rest of the cash in the account as a safety net. Thus, they could manage to increase the potential for their profits by taking larger positions than they could have done by using only their cash.

Here is where the risk and money management enter the picture. For a proper risk management, those larger positions should not take much of the account equity. In the financial literature different levels (from 1-2% to more than 10%) are proposed. Surely, the more of the account is engaged in opened positions, the largest becomes the risk that the account will not withstand a probable negative movement against it. So often for the novice traders the question changes from “What amount of leverage should I use?” to “How long do I want to stay in the market, ie solvent?” When the learning curve hits, which could take different time for everyone, the amount of the account engaged in open trades could gradually be increased, depending on the trader's continuous success in real trading.

After examining the difference between the real leverage used and the theoretically available leverage, we may conclude that the leverage, by itself, is a powerful instrument. It is capable of giving traders opportunities that they would not otherwise have. But like a snake's poison, it could kill very fast if it is not used in the proper amount. Basically, it is not the leakage that causes problems. Problems arise from bad risk and money management.

The Best Forex Books

The forex community offers a wide range of products that are expected to help new traders, and within all this variety of products you can find forex books. There are a lot of books out there about forex and trading in general. So many books in fact that often times the beginner or aspiring trader…

The forex community offers a wide range of products that are expected to help new traders, and within all this variety of products you can find forex books. There are a lot of books out there about forex and trading in general. So many books in fact that often times the beginner or aspiring trader gets lost in what exactly he needs to read to reach his or her trading goals.

In this article, we're going to go over 3 books that have been praised by the critics and professional traders. These books are must have, not only for beginners but also for experienced traders. As you'll see in a minute, not all of the best books are about actual trading. Two of the forex books in this top 3 are about psychology and mental game. As you grow as a trader, you will come to realize that trading psychology is a big part of being a successful trader. That is why these two books have been included in the list.

Let's go over the books.

1) “The disciplined trader” – by Mark Douglas

Mark Douglas is a legend in the psychology of trading field. He has written several books about these subjects and is probably the most knowledgeable writer when it comes to mental strength in trading.

“The Disciplined Trader” states that 80% of the success that occurs in trading comes from a clear mind and mental discipline. Emotions are the enemy and once you are successful at handling your emotions, there is nothing to stop you from becoming a successful trader.

This forex book is a must buy. The breakdown of the psychology behind trading is of incentive help for the beginner traders as well as the experienced ones. Upon finishing this book, you'll have a good grip of how to handle your emotions and positively influence your own mind while trading. Do not skip this one – read it!

2) “Technical Analysis of the Currency Market” – by Boris Schlossberg

Now we get to actual trading. Boris's book is a must have for all traders around the world. If you're looking to learn more and master technical analysis, this is the book for you. You will learn everything from fundamentals to technical strategies, money management, risk management and trade management.

This is one of these advanced forex books that will make you realize the potential of trading the currency market. Boris also offers a lot of real life examples of his trading strategies. The education passing through this book is immunity.

3) “Mind Games of Trading Forex” – by Stephen Mepstead

“Mind games of trading forex” is another one of those forex books that concentrates on improving your psychological strength while facing the ups and downs of the market. Getting yourself in the right mindset is a requirement in trading. You simply can not overlook that part of your training. All the successful professionals have steel mental strength, and so should you.

This book will help you by giving you exact points on what to do, how to react and how to attract positive thinking to improve your overall trading results.

With these 3 books, you now have a great place to start learning forex. While many people say that forex can not be learn in books, having read these 3 forex books will certainly improve your chances of becoming a successful trader.

Top 5 Distinct Advantages of Currency Trading

An increased level of knowledge among investors about the fruitful ways of trading has led the emergence of many players that are taking an active part in domains like the stock market and currency trading. No more is the stock market a distant dream for the common man. There are many useful, latest technologies that…

An increased level of knowledge among investors about the fruitful ways of trading has led the emergence of many players that are taking an active part in domains like the stock market and currency trading. No more is the stock market a distant dream for the common man.

There are many useful, latest technologies that simplify the process of handling your profile in the stock market and cope with the fluctuations witnessed by the minute.

In case you are new to the field of currency trading and are desirous of knowing more about it, read on and gain useful tips.

  1. There is no need to pay high commissions for brokers. They just demand a nominal fee that is decided per bid.
  2. There is no chance of any middleman entering the scene as everything is done on a direct basis. So, the fears of scams or frauds are negligible.
  3. You do not need to wait in the queue or await the opening of the market. You can engage in trading as and when you feel like, irrespective of the time or the day. It operates on a 24 * 7 basis.
  4. If you are a small trader aiming at beginning with a small lot, you can start with bids for a low amount, say $ 25 or so. You can learn in detail about the secrets of currency trading by observing and practicing diligently. In due course of time, you are sure to become competent enough to place high-amount bids.
  5. The level of trading is entirely controlled by your decisions and you can gain confidence by knowing the fact even the mighty players in the market can not exercise monopoly for a long time. No one can corner you. At the same time, there is easy accessibility offered, even to the new participants as you do not need a fortune to engage in currency trading.

Put in a nutshell, there are many benefits you stand to gain by taking part in buying or selling in the currency trading market. Just like the stock market, there are highs and lows felt by the minute. You have to put your experience, foresight and manipulative thinking capabilities to the best possible use so as to not to lose heavily while trading.

You can take help from experienced agents and consultants to make sure you take informed decisions that rely on authentic research and follow the current trends of trading closely.

The Elite Method Of Trading In Forex

The rules of investment are based on common sense and good economics. The principle behind this is to ensure that the persons who chose to invest, put aside a certain sum of money in a safe security. Typically, this amount grows, no matter how slow, and is always available when you need it most. On…

The rules of investment are based on common sense and good economics. The principle behind this is to ensure that the persons who chose to invest, put aside a certain sum of money in a safe security. Typically, this amount grows, no matter how slow, and is always available when you need it most. On the long run, this could mean that you have enough resources for a college education for your child or a dream cottage to retire in comfort.

Sadly, the recession has brought about drastic changes. The dreams of the 1990s have taken a downturn and the wise men who predicted that the economic slowdown would only last a while, have been proven wrong. Not only has the economic gloom persisted, it has engulfed in its fury, parts of the globe that had so far been reliably unscathed.

Suddenly, money and the word 'investment' has acquired a new significance. Worldwide, a majority of the people have realized that money is something they need to acquire now. And investments must bring quick returns. Long term investments of the past have found themselves corroded by the inflation of the recent years. Mutual Funds, CDs and other conventional securities no longer seem attractive. And for the aspiring investors at the NYSE / Nasdaq, stocks that matter are beyond their means and those that are affordable entail a long lock-in period with no worthwhile benefits to offer.

In this period of uncertainty, two relatively new forms of investment have gained ground. Based on their steady performance, they have come to enjoy great popularity with the average investor. One is Penny Stocks, which offer mercurial results when handled skillfully, and the other is Foreign Exchange Trading (Forex), which is the subject of this article.

Forex, as it is often known, has always been held in awe by small investors. Since few people travel abroad more than once or twice in a lifetime, this can be attributed to their limited interest in foreign treaties. Besides, dealing in Forex has mostly been the preserve of Governments, International Banks and Multi-National Corporations in the past, so the apprehension of the first time investor is not difficult to understand. At the same time, few people realize that if it had not been for large number of individual investors, Forex markets would not be trading in four trillion dollars everyday.

In the Forex market, you buy or sell currencies. These come in pairs like USD / GBP. As an example, if you bid for the dollar against the pound sterling, your profits will depend on how the value of one currency fluctuates against the other on a daily basis. Consider it sufficient at this stage, that like any other business, the aim is to buy low and sell high. There are many free tutorials available online where you can familiarize yourself with the concept of forex trading in just a few hours. To encourage new investors, most brokers offer demo accounts with $ 50,000 in practice money. And, it is only a matter of time before investors, having gone through the learning phase, can put their savings to use.

Yet, it can take many years to become a consistently proficient trader since many people lack the confidence or commitment to enter into a trade independently. Should these people choose, they can rely on trade signals from any of the country's leading brokerage firms for as little as $ 25 per month. The method involves downloading a free Meta Trader 4 (forex signal receiver) on your computer so you can receive continuous live signals from the broker's Signal Copier. You can advise your broker what trades to enter on your behalf, or withdraw completely, and let him decide on the best deals for you. There are big names involved and huge reputations to protect, so there is little cause for a newcomer to worry.

But what you need to remember is that trading in Forex is not a “get rich scheme.” So do not set your aim too high. Instead, be happy that even on an investment of $ 500 you can receive a minimum 30% annual returns, or the chance to double your money in less than 3 years.

Is not this what most investors are looking for?

Investment: Risk

Investing in an item is the hope of gaining a profit in the future; in recent years are CFD trading in currency pairs, stocks, commodities and prices a popular investing method on the internet. CFD trading on the internet is trading “contract for differences” which is buying an item at one price and hope the…

Investing in an item is the hope of gaining a profit in the future; in recent years are CFD trading in currency pairs, stocks, commodities and prices a popular investing method on the internet.

CFD trading on the internet is trading “contract for differences” which is buying an item at one price and hope the price will rise in the future; the word hope is not the right word to use in this context as trading CFD is not speculation but analyzing the market ahead of opening a position.

“Contract for differences” are traded on an online trading platform; the brokers are easy to find on the internet and they often offer a bonus or a gift card for signing up at the platform; some of the trading platforms are platforms where the trader trades on his own; others are social trading platforms where the traders interact, follow and copying each others position in a network.

In the disclaimer in connections to the online platforms are written that trading CFD has a potential reward but also a potential risk; it means that trading on an online platform has a risk. When a trader opens a trade he will realize that he has a deficit as the buying and selling rate is different; the gap is the price the online platform earns on each trade. The gap depends on the item; examples are the EURUSD where the gap is 2 pips and the USDCHF where the gap is 4 pips.

Another risk is knowledge in the market as success in trading “Contract for differences” depends on background, dedication, desire and motivation; an example of why it is central knowing the market and knowing how the price rate increase and decrease are the EURUSD and the USDCHF; the two currency pairs often move in reverse direction; if the EURUSD is increasing is the USDCHF often decreasing and if the EURUSD is decreasing is the USDCHF often increasing.

The risk is the changes in the pips as the EURUSD and USDCHF example illustrated; but changes in the pips can be lower or higher depending on the amount invested in the trade; in currency trading are the traders dividing the trades in lots; micro lots are pips with a value of 10 cents; mini lots are pips with a value of 1 dollar and standard lots are pips with a value of 10 dollars.

All in all, investing has risk but can be lowered with knowledge in the market and investing with micro lots or mini lots instead of standard lots.

Basics Of Choosing A Good Online Forex Broker

There are literally tens of thousands of brokers online. However, not all of them may provide the same level of service. It is important to choose a good online Forex broker in order to secure your money and to get the highest possible returns on investment. Here are a few basic tips on choosing a…

There are literally tens of thousands of brokers online. However, not all of them may provide the same level of service. It is important to choose a good online Forex broker in order to secure your money and to get the highest possible returns on investment. Here are a few basic tips on choosing a reputed online Forex broker.

Size

Not every broker would be able to provide you with the same price and quality of execution. Only brokers who have a high trading volume and good financial backing would be able to do that. So go for a large company with a good reputation and experience.

Customer Service

Customer Service is probably the most important factor you need to consider. Since the Forex market is open round the clock, you need to choose a broker who can provide customer support 24/7. Choose a broker who responds promptly and efficiently to all your questions and needs.

Rollover

When you hold positions overnight, you may end up paying or earning money based on the difference in interest rates and currency pair fluctuations. When you pay interest, it is known as a negative rollover, and when you earn interest, it is called a positive rollover. Not all Forex brokers may offer a positive rollover. So you might need to choose one that does.

Scalping

Scalping is a strategy where you keep the trade open only for a very short period of time. Some brokers may have strict rules against scalping. If you use scalping as your trading strategies, then you need to choose a broker who allows this practice.

Hedging

Hedging is one of the most effect solutions to reduce the risk of trading in a market. However, contrary to popular belief, hedging can not prevent losses, it can only contain or minimize them. In 2009, a regulation was adopted in the US that disallowed traders to practice hedging on the same trading account. If you are interested in hedging, see what policies your broker advocates towards this practice.

Leverage

Most traders use the power of leverage to place larger trades with a smaller deposit in their account. Although leverage can help a trader see good profits, it can also wipe out an account when things go wrong. Some brokers offer a high level of leverage whereas most offer a nominal amount of leverage. Choose a broker according to the level of leverage you require for trading.

These are some of the important factors that you need to consider while choosing a Forex broker.

Investment: What to Invest In?

Investing is a hope of gaining a profit in the future; a profit is the surplus of an investment and is the motive for investing; an example of an investment is CFD trading in currency pairs, stocks, commodities and indices. Investing in an item as CFD trading has potential risk and the success depends on…

Investing is a hope of gaining a profit in the future; a profit is the surplus of an investment and is the motive for investing; an example of an investment is CFD trading in currency pairs, stocks, commodities and indices.

Investing in an item as CFD trading has potential risk and the success depends on the investor's background, dedication, desire and motivation; in the disclaimers on the online trading platforms are also written that the investors should not trade with money they can not afford to lose.

What should an investor invest in and gain a future profit?

It is always a good idea investing in a well-known item as the likelihood earning a profit is higher; an example is trading currency pairs; the volume in the market is highest when the New York market and London market are open at the same time; the high volume makes the price trends less volatile and easier predicting the price fluctuation.

Trading CFD in currency pairs, stocks, commodities and indices are different markets which means the items and the price fluctuations are divergent; if an investor would like to trade in one of the market's he should follow the fluctuations and the volatility in the market and the item he would like to invest in; an example of an item is the currency pair EURUSD or the stock Goggle.

When the investor monitor the markets he will discover that the prices are different which means that an investment in a stock is more expensive than buying a currency pair; the equity trading a stock is higher than trading in a currency pair.

He will also discover that it is difficult finding an item he would like to trade in even if he know the items; one way to learn how to trade is to be a part of a social investment network; it is a net where traders follow and copying other traders and interact. The advantages being a part of a network is that it is possible to learn how different currency pairs or other items fluctuate and when to enter a trade as the traders on the social platform can follow other trader's open and closed positions.

One of the main advantages of a social network is the copy trade; a copy trade is copying another trader's open position and gain the profit he will bring in on the position. One of the social investment networks has announced that 64 percent of their open positions are copy trades.

All in all, it is always a good idea investing in a well-known item as the likelihood earning a profit is higher; if it is a copy trade is it also a good idea knowing the performance of the trader before copying it.

A Brief Introduction To The Currency of India!

Indian currency enterprises of numerous varieties of banknotes. Rupee is the official currency of India and all Indian banknotes are issued by the “Reserve Bank of India” (RBI). Moreover, each and every banknote of India carries the signature of RBI's Governor, except the one rupee notes that have the signature of the Finance Secretary of…

Indian currency enterprises of numerous varieties of banknotes. Rupee is the official currency of India and all Indian banknotes are issued by the “Reserve Bank of India” (RBI). Moreover, each and every banknote of India carries the signature of RBI's Governor, except the one rupee notes that have the signature of the Finance Secretary of India.

In the year 1917, the first one rupee note was issued. It was printed in England and issued in the form of a packet of 25 notes. This variety had the picture of King George V on the left side of the note. Made up of white hand-made molded paper, it was issued under three signatories; MMSGubbay, H. Denning, and AC Mc Watters.

These were the only issue of Indian banknotes prefixed 'O.' Moreover, there were two different varieties of watermarks on these notes; which were a star enclosed in a rectangle and the second one was a rayed star.
As the value of the money kept growing, the printing of one rupee notes was stopped in the year 1994. Similarly, the two rupee notes came to an end in the year 1995. The 5 rupee notes too are going to be discontinued very soon. Earlier, there were notes printed in 5000 and 10,000 denominations.

However, during the emergency period of 1970, these banknotes were discontinued. Currently, the banknotes that are in circulation include the denominations of 5, 10, 20, 50, 100, 500, and 1,000. Some of the people still have the 1 Re and 2 Rs notes that are being circulated in the markets. As the economy is changing at a rapid state, we could soon see the 5,000 and 10,000 denominations once again in the market.

The first RBI Governor was CD Deshmukh and every note carried his signature except for the one rupee that had the signature of KRK Menon, as he was the first Finance Secretary of India. The notes were only printed in Nasik from the year 1935 – 1975. Later on in the year 1975, there were many printing presses set up across the country and some of these were in Mysore, Dewas, and Salboni.

Collectors across the globe enjoy collecting the numerous varieties of Indian banknotes. The most commonly liked series are the British India series, Republic India series, Haj and Gulf notes, Fancy numbered notes, Error notes, and much more. There are many rare varieties that are easily available for sale over the Internet. So, collectors can purchase them without any problems and complete their collection.

5 Tips To Identify A Reputed Forex Broker

There are thousands of Forex brokers out there, but you need to find a reputed one in order to make your trading profitable and effective. Here are 5 tips to identify a reputed Forex broker. 1. Capital The Capital base of a Forex broker is extremely important for a smooth trading experience. The larger the…

There are thousands of Forex brokers out there, but you need to find a reputed one in order to make your trading profitable and effective. Here are 5 tips to identify a reputed Forex broker.

1. Capital

The Capital base of a Forex broker is extremely important for a smooth trading experience. The larger the broker, the better would be the prices offered and the quality of execution. They would have a high trading volume and good financial backing for all their operations. They would also be able to pay earnings to clients promptly.

2. License

Although the Forex market is not regulated by any authority, it is mandatory for brokers to be registered members of the National Futures Association or NFA. Ensure that your Forex broker has a valid license issued by the NFA. You can visit the NFA website to check whether your broker is registered with the authority.

3. Trading Platform

You need to have a good trading platform through which to trade in the market. Your broker should provide you with a platform that is up-to-date with the latest tools and features to help you increase your earnings. Therefore, look for a broker with an easy-to-use and efficient trading platform.

4. Customer Support

Good customer support is essential for smooth interaction with any service provider. Since a lot of your money is at stake with a Forex broker, you need to have absolutely good customer support from your broker. Since the Forex market is a worldwide entity, it works round the clock. You may need support at any time of the day or night. Therefore, your broker should be able to provide prompt customer support 24/7.

5. Online Reputation

A good broker needs to have a good online reputation. Word can spread fast on the Internet. Anyone with a bad experience with a particular broker would have left a negative review online. Of course the possibility of a person trying to malign the reputation of a broker is also present. So try to verify the authenticity of any remark. Also visit Forex forums and read reviews about online brokers to get a better picture. You can read feedback from customers about their brokers from client testimonials.

These are some of the things that you can do to identify a reputed Forex broker. Using all these criteria would help you to choose the right one for your particular trading style and requirement.