FOREX Information

The Shocking Truth about the FOREX Trading Industry!

You won't have to look far on the internet to find an endless barrage of web sites promoting the glamorous seductive lure of FOREX trading. Unfortunately most people who are new to the FOREX world have no idea what they are getting involved with when they start to investigate this exciting business. The first thing to be aware of is that when you enter the FOREX world you become a customer of the FOREX industry. And the second thing to be aware of is that the industry is driven by brokers. A quick search on the internet will uncover numerous FOREX trading seminars, FOREX trading courses, e-books, alert services, software, etc. What many people also do not realize is that when you study most of the training programs on FOREX trading, almost all of them are connected with the broker industry and are at least an "introducing broker" for one of the FOREX brokerage companies. What this means is that the material you are studying on how to trade may have an agenda that is different from your own. Because the training material may exist solely to get you to trade with a certain broker and the creator of the training program will then make money from your trades, the type of trading that is taught may be intentionally oriented toward a style that makes the most money for the broker and the introducing broker. Obviously your agenda for getting involved in FOREX trading is to make money for YOU not the broker. Therefore it is critical that, when you become a customer of the FOREX industry, you are very discriminating and selective about what products and services you choose to purchase. How can you learn to truly master this art and science amidst this confusing maze of advertisement? One way is to seek out traders who are already successful and interact with them. Form a mastermind group in your area and/or participate in an online mastermind group. Look for educational and training programs that are not connected with the broker industry. Before you invest in a FOREX trading seminar or FOREX trading course, find out if the creator of the program is an introducing broker. Another thing that many newcomers to FOREX trading do not realize is that the most useful information on trading may not be specifically about FOREX. Trading strategies and technical analysis can be applied to any market and some of the best material on trading has been around since before FOREX became the current rage. Don't be seduced by the current explosion of advertisement. Take your trading education seriously. Take your time and develop a long term plan for success and you will be able to enjoy the exciting benefits that the FOREX market has to offer.
About the author:Benny T has been trading the FOREX Market since 2002 and the creator of FXCC, the first ever FOREX coaching club In Brunei. For more information please visit: http://www.infofxcc.blogspot.com/




Making a Living in FOREX Trading

Often people ask me if it is really possible to make a living trading the FOREX market. I would have to say that it is definitely not possible to merely make a living unless you have no idea of what simple trading money management is. If you are successful in FOREX trading and you understand what money management is, you will not just make a living but will create wealth relatively quickly. So I often tell people that if you are looking for a job, you might want to try Wal Mart. I hear they are hiring part time employees. A good tool that can help you to understand how this works is a calculator. They can be purchased at most local stores for as little as $5.00. Then you might want to open a FOREX trading demo account and place a trade. Observe what happens to the digits that display the profit or loss and get an idea of what the value of a PIP is in your account. Then you can develop a purely hypothetical trading plan. After you have learned a little about how FOREX trading works you should start to get an idea of what is a realistic expectation for results in PIPS over a given period of time. Then decide what a prudent risk management plan would be. Some say no more than 2% of your capital is a good number. That number is of course, based on a false industry belief that it is not possible to have a high win to loss ratio in FOREX trading. Regardless, it is a good conservative number. Then simply start off with a number that represents the amount of capital you plan to start with and project what would happen if you were successful with a realistic win to loss ratio. How many PIPS will you earn? Win to loss ratio is the number of winning trades vs. the number of losing ones. Risk to reward ratio represents the average number of PIPS per loss vs. the average number of PIPS per winning trade. What will your average net gain be per day or per month? What will that do to your capital? The next step is to note the amount of money you need to meet your living expenses. When the amount of your monthly profits is at least twice as much as the amount you need to live, begin taking out 50% of your monthly profits. From that point on you will make a living AND your trading account will increase each month while the amount you take out will also increase every month from that point on. What could be better than that?

About the author:Benny T has been trading the FOREX Market since 2002 and the creator of FXCC, the first ever FOREX coaching club In Brunei. For more information please visit: http://www.infofxcc.blogspot.com/




Why I Love To Do What No One Else Does in FOREX Trading

Contrarian FOREX Trading. Most people are not comfortable with the idea of doing what no one else is doing. It is a part of the social insecurity that is innate in the average person. Ever since I was a child and even more so when I was a teenager I noticed that in general the people around me did not even have any interest in understanding the nature of their own beings and their purpose for existing in this universe. It was clear to me that people in general are lost and not only do not know why they exist but also they do not even seem to be interested. That is when it also became clear to me that being like every one else was not necessarily a desirable thing. In FOREX trading most people are not doing what would bring them consistent profit. In fact, most people will not even participate in the FOREX trading business. I have heard many people say things like, "If that really worked everyone would be doing it." Well I hope that the success oriented person will immediately realize what a ridiculously false statement that is. The fact is, there are an infinite number of ways that anyone could make any amount of money. And guess what? They are NOT doing these things. Several years ago Jake Bernstein, a well known stock and commodity trading mentor, conducted surveys daily in which his company called a certain number of individual traders and asked them simply whether they were bullish or bearish. That information was converted into what is called a "sentiment indicator". The way sentiment became useful was that a profitable trading strategy could be implemented by always trading the opposite of whatever the prevailing sentiment was. The Commitment of Traders reports that we often use in our trading strategy demonstrates the same thing. The majority of small traders will always be extremely bullish when price is at its top and they will be extremely bearish when price is at its bottom. The same is true of the overall approach to trading. Most traders are exclusively focused on extreme short term day trading and most are trading the same currency pairs in the FOREX market. Most are using similar strategies and most are consistently losing. We might be able to derive a clue from observing these facts. Could it be a good idea to do what everyone else is not doing? It has been my experience that the best way to consistently get profit in FOREX trading involves an approach that is entirely different from what the vast majority of FOREX traders are doing.

About the author:Benny T has been trading the FOREX Market since 2002 and the creator of FXCC, the first ever FOREX coaching club In Brunei. For more information please visit: http://www.infofxcc.blogspot.com/





How to Save $2000 to $5000 on Your FOREX Trading Education

When I first got started in FOREX trading I enrolled in a training program that offered a one day beginners class for $1000 and another one day advanced class for an additional $1000. Later I realized that not only did I learn nothing about how to trade successfully in these classes, I also could have learned more thorough and complete information by purchasing a $30 book from Amazon. Many of my colleagues, associates and students have also related to me that they spent as much as $5000 on similar training that did not empower them to become successful in FOREX trading. FOREX Trading Course the important point here is that general information on FOREX trading is readily available from many sources in some cases for free. But the information on how to actually consistently win in FOREX trading is apparently much harder to find. If you are getting started in FOREX trading don't be seduced by the many training programs that are available that only provide general information that you could get elsewhere for cheap or for free. Most of the information that newcomers to the FOREX industry most need can be obtained for free from FOREX brokers. Topics like, "What is leverage?", What is a PIP?", "How do I place a trade?", "How much money can I make in a trade?" should be learned by opening a demo account, reading the information on the broker's web site, and talking with broker customer service representatives. Don't pay $2000 for this information and if possible don't ask your training mentor to waste time on these topics while they are so readily available. Here are some web sites where you can get free information on FOREX trading and technical analysis: http://www.fxcm.com/ FXCM is one of the largest FOREX brokers and has some useful free information on this site. http://www.interbankfx.com/ InterbankFX is another FOREX broker that has a lot of free information on their site about trading and technical analysis. http://www.babypips.com/ This site has an entire free course for beginners on FOREX trading
You will also want to avoid buying expensive training courses if you can get the same information in inexpensive books. The courses that cost hundreds or thousands of dollars often do not contain as much information as an average book on the subject that costs much less. Here are some books you may want to check out. Getting Started in Currency Trading by Michael Duane Archer and James Lauren Bickford Technical Analysis of the Currency Market by Boris Schlossberg Technical Analysis for Dummies by Barbara Rockefeller the Candlestick Course by Steve Nison These books will give you a solid foundation for getting started in the FOREX trading business. Together with the homework assignment of opening a demo FOREX trading account, placing trades and talking with FOREX broker customer service representatives, you will be ready to concentrate on the information that is really needed, how to consistently win in this business. That information is not widely published and apparently is not as readily available on web sites or in books. But by saving so much time and money you will be much better equipped to find the information that is most needed to achieve long term success in the FOREX trading business.

About the author:Benny T has been trading the FOREX Market since 2002 and the creator of FXCC, the first ever FOREX coaching club In Brunei. For more information please visit: http://www.infofxcc.blogspot.com/


The Quest for the Perfect FOREX Broker

Finding the ideal FOREX broker is a lot like finding the ideal spouse or relationship. You may make a list of all the qualities that you desire in a partner but then when you are faced with the reality of what is actually available in reality, your criteria may become more flexible. Since the last time I researched FOREX brokers about three years ago there have been some positive changes in the industry. At the same time the two brokers where my accounts were held have had some negative changes. One has increased their negative rollover swap rates to more than twice the amount of their positive rates. The other has made negative changes to their margin policy and their privacy policy. The criteria that a beginner looks for in FOREX brokers is usually quite different from the criteria that an experienced trader looks for after trading successfully for a period of years. For instance a beginner may look for the lowest minimum account size, the lowest PIP spread, and the highest leverage. An experienced trader may not consider any of these things but may be primarily interested in the company's integrity, type of business model, country of location, regulation, and type of trading platform. A beginner may only look for brokers who provide free charts. A professional trader might subscribe to several professional charting services and may never use charts provided by a broker. A beginner may be lured by the biggest ads in a trading magazine. A professional trader may trade with a broker that does very little advertising but has a reputation that is known by word of mouth. When choosing a FOREX broker it has become critical to consider the stability of the country where the company is based and the type of regulation, if any, that oversees the FOREX trading industry of that country. In the U.S. the spot FOREX market is still unregulated which allows brokers to adopt business practices that may be less than ethical. Some traders look to Switzerland, a country that has traditionally been know for its strong banking industry and financial strength even in times of international conflict. In today's high technology world it is easy to open an account in an overseas country and make wire transfers easily and quickly. Wherever you choose to open your FOREX trading account the choice you make is certainly worth some investigation and research. It is wise to have some criteria in mind and talk with the customer service representatives from several brokers. If you have done your due diligence you will feel much more confident about the long term success of you FOREX trading business.
About the author:Benny T has been trading the FOREX Market since 2002 and the creator of FXCC, the first ever FOREX coaching club In Brunei. For more information please visit: http://www.infofxcc.blogspot.com/