Online Forex Trading Education There are many people who are interested in forex trading. But before you start trading in forex, getting a good online forex trading education is important. The forex market is largely a technical market with its own forex terms and processes so it is important you grasp the fundamentals with an online forex trading education. Why Online Forex Trading Education? Most people who want to try forex trading are often busy with other aspects of life to take care of. They probably do not have the time to attend a course on forex trading. Therefore, an online forex trading education is more suited. Since it s online, you can take your time to read and digest the information at your own pace. Also most of the basics of forex trading can be found online for free. There are tons of websites that provide free forex trading courses and tutorials. There are also free forex trading seminars online available plus advanced forex trading courses online such as the forexmentor program. While it s usually not free, the costs are pretty cheap compared to attending a forex trading course in a classroom. Another important part of an online forex trading education is practice. I believe no matter how well you understand forex trading or if you score an A in a forex trading course, the real deal comes when you actually start trading. Most forex trading sites provides a demo account for new beginners to forex trading to learn how to manage their forex trading account. There is no monetary risk, so it is a very good way to learn the ropes. Once you feel you have sufficient experience, you can open a regular forex trading account or a mini forex account. I would highly recommend you open a mini forex account and start trading in smaller amounts. It has all the features of a regular forex accounts yet you can start one usually with about US $100. It s important you do not rush through your online forex trading education. Take your time to understand and start trading in small amounts to practice. As the saying goes, practice make perfect.

Advantages of trading forex

Advantages of trading forex



Although the forex market is by far the largest and most liquid in the world, day traders have up to now focused on seeking profits in mainly stock and futures markets. This is mainly due to the restrictive nature of bank-offered forex trading services.
Advanced Currency Markets (ACM) offers both online and traditional phone forex trading services to the small investor with minimum account opening values starting at 5000 USD.
There are many advantages to trading spot foreign exchange as opposed to trading stocks and futures. Below are listed those main advantages.

1. Bid/Ask Spread rates

Spread rates have tightened dramatically in the last years. Most online forex brokers offer a spread of 5 pips on EURUSD which is the most widely traded and liquid currency pair. ACM offers a 3 pip spread on EURUSD. In stock trading, only liquid stocks offer tight spreads. Those spreads often represent on average between 0.04% and 0.06% of the value of the stock. In comparison ACM offers a 3 pip spread on all major currencies, this equates to approximately between 0.02% and 0.03% on the underlying dollar value.

Exact percentages at current rates (May 2002)

EURUSD 3 pips 0.03%
GBPUSD 3 pips 0.03%
USDJPY 3 pips 0.023%
USDCHF 3 pips 0.018%

In the futures market spreads can vary anywhere between 5 and 9 pips and can become even larger under illiquid market conditions (which tends to happen substantially more often in futures currencies).

2. Commissions

ACM offers foreign exchange trading commission free. This is in sharp contrast to (once again) what stock and futures brokers offer. A stock trade can cost anywhere between USD 5 and 30 per trade with online brokers and typically up to USD 150 with full service brokers. Futures brokers can charge commissions anywhere between USD 10 and 30 on a round turn basis.

3. Margins requirements

ACM offers a foreign exchange trading with a 1% margin. In layman's terms that means a trader can control a position of a value of USD 1'000'000 with a mere USD 10'000 in his account. By comparison, futures margins are not only constantly changing but are also often quite sizeable. Stocks are generally traded on a non-margined basis and when they are, it can be as restrictive as 50% or so.

4. 24 hour market

Foreign exchange market trading occurs over a 24 hour period picking up in Asia around 24:00 CET Sunday evening and coming to an end in the United States on Friday around 23:00 CET. Although ECNs (electronic communications networks) exist for stock markets and futures markets (like Globex) that supply after hours trading, liquidity is often low and prices offered can often be uncompetitive.

5. No Limit up / limit down

Futures markets contain certain constraints that limit the number and type of transactions a trader can make under certain price conditions. When the price of a certain currency rises or falls beyond a certain pre-determined daily level traders are restricted from initiating new positions and are limited only to liquidating existing positions if they so desire. This mechanism is meant to control daily price volatility but in effect since the futures currency market follows the spot market anyway, the following day the futures market may undergo what is called a 'gap' or in other words the futures price will re-adjust to the spot price the next day. In the OTC market no such trading constraints exist permitting the trader to truly implement his trading strategy to the fullest extent. Since a trader can protect his position from large unexpected price movements with stop-loss orders the high volatility in the spot market can be fully controlled.

6. Sell before you buy

Equity brokers offer very restrictive short-selling margin requirements to customers. This means that a customer does not possess the liquidity to be able to sell stock before he buys it. Margin wise, a trader has exactly the same capacity when initiating a selling or buying position in the spot market. In spot trading when you're selling one currency, you're necessarily buying another.

How To Choose a Forex Trading System That Works and Suits You

How To Choose a Forex Trading System That Works and Suits You


الموضوع
There are so many different trading systems you could use to trade the forex market, some better suited to certain people than others. For example some people may find it easier to comprehend and take into account fundamental factors as opposed to looking at a screen covered in technical indicators, and vice-versa.

The first logical step in determining what type of trading system would best suit you is actually being aware and understand the widely known methods of analysis used in trading the currency market. Once you are aware of the tools that are available, you can generally tell what type of analysis suits you. For example some of the main technical analysis methods which are popular include:

Pivot points

Chart patterns

Fibonacci retracements

Candlestick patterns

And some fundamental factors which are widely used include analyzing:

Interest rates

Trade balances

Unemployment rates

Gross domestic product (GDP)

You may now actually be able to develop your own system by combining certain methods of analysis together, giving you a method which you are comfortable with. On the other hand you may decide that you would like to trade someone else’s system, either way, that brings us to the next step which is determining the profitability of a trading system.

Determining Profitability

Most people would think that back testing is the best way to determine a systems profitability. However back testing doesn’t always give you a true idea of how profitable a system is. The reason for this is because when you’re back testing your system on historical charts, you are only seeing the obvious setups which have occurred, and not always seeing the ones that are less obvious. These less obvious ones sometimes can produce losses, which is why back testing isn’t always the best method to implement.

A better method of determining profitability is by trading your system in real-time with a demo account. This would give you a true understanding of what your system is capable of. This would also allow you to familiarize yourself with your trading platform at the same time. When determining profitability you must look at it in terms of expectancy and opportunity.

Expectancy & Opportunity

These two factors together will be able to tell you what you could expect to make over a period of time. Expectancy is calculated with the following formula:

(Probability of winning × average win) – (Probability of losing × average loss)

This will give you a figure which is the average amount you can expect to make per trade. This shouldn’t be a negative amount, if it is you should look at some other method of trading since you cannot make money on a system that produces a negative expectancy. Obviously the higher this figure is the better. Now to the opportunity factor.

The opportunity factor is how often you are able to trade using your system. By multiplying your expectancy figure with your opportunity factor it will tell you how much you could expect to make over a period of time. The more opportunity you have to trade, the more money you should expect to make. This now brings us to the last component of a trading system, money management.

Money Management

Without proper money management you will end up as a statistic. In other words one of those 90%+ of traders who loose their money. Money management tells you how much of your account balance to risk per trade. The whole point of money management is to ensure your survival over the long term, and to preserve your capital.

The most common form of money management is the percent risk model which tells you not to risk more than x percent of your account balance on any one trade. A range between 1-3% is generally an accepted amount which has been a reliable percentage to use in order to make money in the long term.

Conclusion

By taking into consideration the above factors you will be able to determine if a trading system best suits you, and with some simple mathematical calculations you will be able to determine its profitability

About Forex

About Forex


To buy foreign goods or services, or to invest in other countries, companies and individuals may need to first buy the currency of the country with which they are doing business. Generally, exporters prefer to be paid in their country's currency or in U.S. dollars, which are accepted all over the world.

The foreign exchange market, or the "FX" market, is where the buying and selling of different currencies takes place. The price of one currency in terms of another is called an exchange rate.



The market itself is actually a worldwide network of traders, connected by telephone lines and computer screens there is no central headquarters. There are three main centers of trading, which handle the majority of all FX transactions United Kingdom, United States, and Japan .

Forex Resources

Forex Resources

The live forex charts can be used to track ten currency pairs in real time and click on forex rates for a pop-up window of ten currency pairs with live rates for the EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD, EUR/JPY, EUR/GBP and EUR/CHF, including the daily highs and lows from 17:00 EST. For a selection of free ebooks, trial offers, calculators and tutorials, visit free downloads. For a current snapshot of the foreign exchange market, use the market monitor to display time zones for several key markets, as well as live forex rates, a sentiment indicator and an economic calendar in a detachable window. Use the online money management calculator to calculate the correct position size for your trade based on your risk profile. Browse the selection of forex books on offer in forex books which includes special sections on technical analysis and general trading. There is a great number of forex related resources to be found in the categorised forex directory to help you find a particular niche or service.

what is forex?

what is forex

FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand.As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market. It is also the biggest liquid financial market. According to various assessments, money masses in the market constitute from 1 to 1.5 trillion US dollars a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. Practically in every time zone (that is, in Frankfurt-on-Main, London, New York, Tokyo, Hong Kong, etc.) there are dealers who will quote currencies.FOREX is a more objective market, because if some of its participants would like to change prices, for some manipulative purpose, they would have to operate with tens of billions dollars. That is why any influence by a single participants in the market is practically out of the question. The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive. (You can learn more about it in the section: The main principles of trading.)The idea of marginal trading stems from the fact that in FOREX speculative interests can be satisfied without a real money supply. This decreases overhead expenses for transferring money and gives an opportunity to open positions with a small account in US dollars, buying and selling a lot of other currencies. That is, on can conduct transactions very quickly, getting a big profit, when the exchange rates go up or down. Many speculative transactions in the international financial markets are made on the principles of marginal trading.Margin trading is trading with a borrowed capital. Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it it is necessary to have only from 0.5% to 4% of the sum.For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $ 405). For the calculation of 1 pip click here.Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.In FOREX, it's not obligatory to buy some currency first in order to sell it later. It's possible to open positions for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD).In order to assess the situation in the market a trader has to be able to use fundamental and/or technical analysis, as well as to make decisions in the constantly changing current of information about political and economic character. Most small and medium players in financial markets use technical analysis. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price. The initial data for a technical analysis are prices: the highest and the lowest prices, the price of opening and closing within a certain period of time, and the volume of transactions.A technical analysis is founded on three suppositions:Movement of the market considers everything;Movement of prices is purposeful;History repeats itself. That is, technical analysis is a statistical and mathematical analysis of previous quotes and a prognosis of coming prices.A number of technical indicators have been installed into the PRO-CHARTS trading system. Analyzing the indicators one can come to the conclusion about further movements of the quoted currencies. For a more detailed description of the indicators, analyzing price charts and volumes of trading, click here.Fundamental analysis is an analysis of current situations in the country of the currency, such as its economy, political events, and rumors. The country's economy depends on the rate of inflation and unemployment, on the interest rate of its Central Bank, and on tax policy. Political stability also influences the exchange rate. Policy of the Central Bank has a special role, as concentrated interventions or refusal from them greatly influence the exchange rate.At the same time one should not consider fundamental analysis just as an analysis of the economic situation in the country itself. A far bigger role in the FOREX market belongs to the expectations of the market participants and their assessment of these expectations. Various prognoses and bulletins, issued by the participants, have a strong influence on the expectations. Very often an effect of the so-called self-filfilling prophecy occurs when market players raise or lower the exchange rates according to the prognosis. But a deep and thorough fundamental analysis is available only for big banks with a staff of professional analysts and constant access to a wide field of information.In spite of these different approaches, both forms of analyses complement one another. Traders who act on the basis of a fundamental analysis, have to consider some technical characteristics of the market (the main rates of support, such as resistance and resale), and supporters of the technical approach to the market must track the main news (interest rates, important political events).

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SPECIFICS OF THE STRATEGY

SPECIFICS OF THE STRATEGY
Now, lets look at specifically how to apply this strategy. We will
use chart 1 for illustration purposes, and all times will be
discussed as EST. You go to view the Fundamental
Announcement calendars and see that the US will be making
some announcements (one announcement is ok, but more is
better) for 8:30am tomorrow. Very well then, you go to bed and
make sure to have the alarm set for 8:15am to be awake for the
trading opportunity. It’s a good idea to set an alarm clock 15
minutes before the trading opportunity to make sure you
remember it.
At 8:25 you should have your charts open to the one-minute
candlesticks for EUR/USD (and/or GBP/USD, CHF/USD) and
your Forex broker account opened up and ready to place an
order.
You should notice that prices are gently moving around in a
consolidation pattern waiting for the Fundamental Announcement.
Now here is where you have to act quickly. At EXACTLY 8:29am
you need to look at the candle and see what the high and low
prices are (not open and close). Add 10 pips to the high price and
minus 10 pips from the low price. If the 8:28am candle has higher
highs or lower lows then you may want to use those extreme
numbers instead of the 8:29am candle’s prices
(adding/subtracting 10 pips). Now you create two “entry orders”.
An entry order, unlike a market order to buy/sell right now at the
current price, is an order that only kicks in when your entry price
is touched. For the first entry order you set it to “BUY” when it
reaches the high+10pips price, set your Stop loss for 10 pips
(VERY IMPORTANT) which is basically the same as the high
without the extra 10 pips, and then activate your trade. For the
eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.com
Duplication and distribution of this material is strictly forbidden
23
second entry order you set it to “SELL” when it reaches the low-
10pips price, set your Stop loss for 10 pips (VERY IMPORTANT)
which is basically the same as the low without the extra 10 pips,
and then activate your trade. This should all have happened by
8:30am sharp. OPTIONAL – you could set a profit limit of 20 pips
on both orders.
What did you just do? You took the price range of the currency
pair and stretched it 10 pips up and down to add a little bit of a
safety net. You told the broker that if the price of the currency
pair goes up to that high point then you will “BUY”, and if it goes
down to the low point then you will “SELL”. You also told the
broker to stop you out after losing ten pips incase that should
happen. If you set the optional profit limit to 20 pips then you told
the broker that once the price moves in your favor 20 pips to exit
the trade.
In chart 1 it happened to go “UP”, and you would have ended up
“BUYING” the currency pair. It could have just as well gone
“DOWN”, and you would have ended up “SELLING” the currency
pair. It doesn’t really matter with this strategy which way it goes,
just that it moves a lot of pips.
IMPORTANT – Within 5 minutes one of your two trades should be
off and running. At this point you should cancel the other trade.
Sometimes the market responds with a momentary whiplash
which means both orders could have been triggered, one
resulting in a loss while the other usually goes on for a profit.
Read more about this later in this document.
Let’s review the above chart 1 example. At 8:29am the high was
1.2002 and the low was 1.1999. At 8:28am the high was 1.2000
and the low 1.1998. Since the low of the 8:28am candle was
eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.com
Duplication and distribution of this material is strictly forbidden
24
lower than the 8:29am candle’s low we will use that one. So now
you add 10 pips to the high (1.2002 + 10pips = 1.2012) and you
subtract 10 pips from the low (1.1998 –10pips = 1.1988). So you
place two entry orders, one that if the price goes to 1.2012 you
buy a lot (or multiple lots, or mini lots), but if the price drops to
1.1988 you sell a lot. Then you enter your stop losses (VERY
IMPORTANT – NEVER trade without stops!!!) of 10 pips, so for
your buy position your stop loss would be 1.2002 and your stop
for the sell position would be 1.1998. Let’s say you decided to put
a profit limit of 20 pips then for your buy position it would be
1.2032, and for your sell position it would be 1.1968.
To make calculations simpler for you I have included an MS Excel
spreadsheet that does all the math for you that you can download
from the resource section of my website (see Appendix A). Just
enter in your high and low numbers and it will give you all the
numbers needed.
Back to the example. In this case your “BUY” entry order would
have kicked you in for a buy position at 1.2012. If you used a 20
pip limit then you would have exited at 1.2032 for a nice $200
profit (trading only one regular lot). Not bad for about five minutes
worth of work.
If you are a beginning trader it is highly recommended that you
stick with a 20 pip limit on your trades. Later you can do some of
the more advanced suggestions below.
eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.com
Duplication and distribution of this material is strictly forbidden
25
CHARTS
For this strategy you will need access to real time charts. Your
Forex broker should offer you some free charts, and this is all you
need. I provide links to brokers and free charts on my website
(see Appendix A). You should use the charts provided by your
broker as those will reflect the actual trading prices of your broker,
and sometimes different brokers/charts have a slight price
discrepancy which could throw off the system for you. The free
charts are all you really need, so save your money, you don’t
need to purchase the “Pro” charts.
What you will need to do is access the chart for the currency pair
you are interested in trading. Make sure that the chart is showing
“Candles” rather than other types of charts. Change your view to
show you 1-minute candles. This means that each candle shows
the price action of one-minute increments. You may want to
zoom in to get a clear view of the most recent candles, which are
on the right of the screen. When you mouse over a candle notice
that somewhere it should display to you the opening price, high
price, low price and close price, along with the date and time of
that candle. Remember, it’s the high and low prices, and the time
of the candle that is most important for you to read to work this
strategy. Spend some time playing with your charts getting really
familiar doing this so that when you’ll be in the time crunch of
placing your trade you won’t be fumbling around trying to figure
things out.

LOOKING AT THE CALENDAR

LOOKING AT THE CALENDAR
The resources section of my website provides links to a couple of
Fundamental Announcement calendars (see Appendix A).
Every day is different, with different countries posted to release
announcements. Often you will see the same country making
multiple announcements for the same time. This is the best
setup as when there are multiple announcements happening
simultaneously then the market is much more likely to react
strongly. One danger is that if there are multiple announcements
then there is a greater chance of whiplash happening (more about
whiplash later).
You could also trade when there is only one announcement at a
particular time from a particular country, however it becomes less
likely that you’ll see a major price move. Generally it is best if
there are two or more at the same time.
You should also pay attention to what the announcement appears
to be. Release of key economic figures seems to generate more
action than speeches (generally). Really, it’s difficult to say
exactly what creates strong reactions, but after practicing for a
while you should get a feel for what to expect.
At the end of this section I provide you a list of “key”
announcement types to pay attention to. See section titled “Key
Announcements”.
Furthermore, economic figures released in the morning time of
that particular market seem to have more impact than later ones;
announcements that happen early during market overlap times
tend to be best (more about market overlap later).
eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.com
Duplication and distribution of this material is strictly forbidden
20
Look at what is posted for the next day to plan accordingly;
deciding what time(s) seem to offer the best opportunity, and
which currency pair you plan to trade at that time.
Set your plan in advance and you should have better success,
simply because you can plan to be ready to trade for those times
and you’ll be thinking clearer about how to proceed with the trade.
What you might want to do (highly recommended) is to review the
upcoming week in the Fundamental Announcements calendar
during the weekend, and write out a plan for the week detailing
the exact times you plan to trade and on which currency pairs.
The ten minutes spent doing this separates you from novice
traders, showing you are a professional quality trader that takes
the time to properly plan your trades, and then trade your plan.
KEY ANNOUNCEMENTS
There are certain Fundamental Announcements that are much
more likely to result in strong movements. If there is uncertainty
(good for your trading) about what the announcement will be then
there will be an immediate and often drastic effect on the currency
market (more drastic news = more drastic price move).
The most important to watch for are Unemployment Reports, and
Interest Rates. Also high on the list to look for are Consumer
Price Index (CPI), Inflation, and Gross Domestic Product
(GDP). Less important (meaning less likely to result in the jumps
you are looking for) but still worth keeping an eye on include M2
(Money Supply), Treasury Budget, Producer Price Index (PPI),
Retail Sales, and International Trade.

THE STRATEGY

THE STRATEGY
Ok now, enough with basics. Let’s get down to the actual
strategy.
Exchange rates of currency pairs fluctuate based on many
criteria, particularly how investors perceive the value should be
based upon news pertaining to the country of origin of the
currency. There are many factors that contribute to the perceived
value of a currency against another, but most importantly are the
“Fundamental Announcements” from that country.
Countries and their currencies being traded on the Forex markets
are like companies and their shares being traded on the stock
market. If a company announces positive news, such as higher
profits in their last quarter, then the stock market immediately
responds by the share price rising. Conversely, if the company
announces negative news such as a loss in their last quarter, then
their stock drops. In much the same way countries regularly
make various announcements of economic importance, and the
value of their currency is also adjusted accordingly against other
currencies.
You don’t have to know what the announcement is or even care
about the news to profit by it with this system. All you need to
know is when such Fundamental Announcements are being
made, and how to profit from it as described in this system. This
is like owning a magical crystal ball to know exactly the
minute when the markets will explode, and how to profit from
it. Regardless of whether the news is considered good or bad,
and regardless of how the value of the currency changes due to
the announcement you will make money. Typically a market
eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.com
Duplication and distribution of this material is strictly forbidden
11
responds by 50 pips to Fundamental Announcements (when it
skyrockets); plenty of room to get profits in.
There are certain websites that publish a calendar of
Fundamental Announcements. You can easily find these for free
on many Forex related websites, and I link to them in the resource
section of my website (see Appendix A).
So the first step is to go to view a Fundamental Announcements
calendar to see what is scheduled to come up for tomorrow
(weekdays, not weekends). Some days will have more
announcements, some days will have less. Generally, the more
announcements the more trading opportunities you will have, and
the more announcements scheduled for a particular country at the
same time the more likely you will see some interesting price
action.
Before we continue you will need to know what your time zone is
in relation to GMT (Greenwich Mean Time), as most
announcements are published according to this time zone.
Where I live is EST (Eastern Standard Time), which is minus 5
hours from GMT, however during the summer I am only minus 4
hours from GMT. Make sure you take into consideration “Daylight
Savings Time” if your time zone changes time in the fall and
spring. You will need this information to adjust GMT time to your
time to know when the announcements will take place from the
perspective of your time zone.
On the calendars you will see a list of countries that are planning
to release announcements, what time the announcement will
happen, and what the announcement is about. Again, you don’t
really care what it will be about, only when and who.
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Let’s say the US is scheduled to release some announcements,
typically 8:30am EST. Then you know the exact time that prices
will skyrocket.
Let’s take a look at a chart to see what happened on a fairly
typical occasion. (See chart 1) This is a 1-minute candlestick
chart of EUR/USD on June 14, 2004. You will notice that before
8:30am the market was just moving slowly along, at 8:30am
prices fluctuated just a few pips, then at 8:31am WHAM! it shot
straight up over 25 pips in one minute and over the course of 15
minutes it went up about 65 pips. After that the market returned
to moving slowly. Had you traded this system at this time you
could have easily walked away with around 40 pips ($400 US
trading one regular lot, $800 trading two lots, $1,200 trading three
lots, you get the idea).
This kind of opportunity happens all the time and is by no means
extraordinary. Often it keeps going even further, and if you
employ some of the advanced strategies offered in this course
then you can sometimes capture over a hundred pips, even
hundreds.
Fundamental Announcements occur at various times of the day
and night, depending on where you live. Pay more attention to
the currencies that make their Fundamental Announcements at a
time convenient for you. If you live in North America pay attention
to the US and Canadian announcements, and then trade
EUR/USD and USD/CAD respectively. US announcements can
be traded against other currencies, the best are EUR, GBP and
CHF. They usually react the same way, but often have larger or
smaller moves (compare chart 2 & 3 as these both happened at
the same time, however you would have made an extra 20 to 30
pips trading GBP over EUR). If you live in the Asian regions
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including Australia & New Zealand then pay more attention to
those currencies (JPY, AUD, NZD) traded against the USD, and
even against each other. If you are lucky to live in Europe then
you benefit from being awake during most Fundamental
Announcement times, and can trade just about anything.
Sometimes major news events can cause major price moves, but
don’t worry about these, as they are unpredictable and very
difficult to profit from since by the time you find out about the
news it’s already too late.

basic

BASICS
This program assumes you understand certain basics about
Forex trading, but to just be sure here is a brief review.
Currencies are traded in pairs, meaning that you are really trading
one currency for another. A simple way to understand this is to
consider what you do when you go on foreign vacations. If you
are an American (for example), and you plan to travel to another
country, say Canada, then you might take say $1, 000 USD to the
bank to change it for Canadian dollars. Let’s say the exchange
rate is 1.4000, then for your $1,000 USD they would give you
$1,400 CAD (ignore bank spreads/commissions). Now let’s say
you didn’t spend the money and upon coming home you decide to
change it back to USD currency. Now let’s say the exchange rate
is 1.3700 (a change of 300 pips that could happen in a week), so
your $1,400 CAD would convert back to $1,021.89 US (again,
ignore bank spreads/commissions). Therefore you just made
$21.89, a 2.19% increase in funds (not bad).
In the Forex market you could have simply traded the “Currency
Pair” called USD/CAD, first selling USD for CAD, and then later
buying back USD with the CAD you have. Basically, you are
trading one currency for the other.
Usually currencies are traded against the US dollar (USD), so you
may be trading the US dollar against the Euro (EUR), British
Pound (GBP), Swiss Franc (CHF), Japanese Yen (JPY),
Australian Dollar (AUD), New Zealand Dollar (NZD), and of
course Canadian Dollar (CAD). There are other currency pairs,
but you normally won’t be dealing with those.
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When you are trading you are attempting to capture “PIPs” (Price
Interest Points), which is one/one-hundredth of a cent (for
dollars). You will notice that the exchange has two extra decimals
at the end. From our example above, there is a one-pip
difference between 1.4000 and 1.4001.
One pip may not seem like much, but when you are trading large
volumes of currency, say $100,000, then one pip times 100,000 is
equal to $10 (less on certain currency pairs). When you are
trading currencies the broker gives you typically a 100:1 ratio
meaning that to “control” one lot of $100,000 all you need is
$1,000 on margin.
Thus, as has been explained before, when you capture 20 pips
from this amazing trading system then that means you have just
earned $200.
Now, if you don’t have at least $2,000 to open a regular Forex
trading account, or can’t afford potential 10 pip losses, then you
may want to consider a “mini” account. Most online brokers offer
mini trading accounts that you can open for as little as $300. With
a mini account you are trading lot sizes one-tenth of a regular lot
(10,000 vs. 100,000), with risk being one-tenth as well as your
rewards one-tenth. Trading a mini account means that 1 pip
equals roughly $1. If this is the only way you can afford to start
trading then open a mini account. Remember, as your account
quickly grows you can trade multiple mini lots, and trading ten
mini lots is the same as trading one regular lot. You could open a
mini account with say $300 and experience 100% to 200% gains
in your first month, quickly building your account to be able to
trade larger lot sizes.
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Please remember to exercise good equity management in all your
trades, never risking more than 2% of your margin account on any
single trade, however if you have a small mini account you may
bend this rule to 5%. For example, if you have $300 in your
account, 2% is $6, equal to 6 pips loss. Realistically you need to
be prepared to suffer 10 pip losses with this system, so obviously
your risk per trade has to be a bit higher than professional traders
would normally employ. Once you get your account to $600 or
more then definitely limit your risk to only 2% of your margin
account on any single trade. Don’t be greedy and you’ll survive a
few losses to continue your gains. Please don’t trade money you
can’t afford to loose.
If you need more explanations about any of the above then simply
surf the web a little, particularly looking at online Forex brokers
websites as there you should be able to learn more about the
basics of how currency pairs work, or enroll in a good Forex
training program to make sure you understand all this. I have
also included valuable bonus you can download from the
Resources website (see Appendix A) that gives you a lot of Forex
training, and should answer your questions (I’ve had over $10,000
worth of Forex training and can say with knowledge that the
resources I’ve provided you there will teach you everything you
need to know).
A couple more things before we continue with explaining this
amazing trading system. You should have the following three
things already set up. (1) An actual trading account with real
money in it, (2) a demo trading account with fake money in it, and
(3) access to charts. I would personally recommend opening up
an account with one of my recommended brokers (listed in the
Resources Section – see Appendix A), however any of the other
major brokers may do, or whatever favorite you have. (Important – in
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9
the Resources Section I explain certain important criteria to evaluate your broker to see whether
they’ll be good to use in conjunction with this system. It is preferable though to use one of the
recommended brokers) They will also provide you free charts that will be
more than good enough for the purposes of this strategy. You
don’t need expensive charts; the free ones really are all you need.
It is best to use charts provided by your broker as the Forex
market is decentralized and the trading rates differ slightly from
broker to broker, and for this strategy you need accurate prices
based on your broker’s dealing rates to succeed.
There is a special member’s only section on my website that has
links to all the resources you will need to work with this program,
including where to get accounts and charts. (See Appendix A)
Before you commit any real money to trading this strategy you
should practice it for at least ten successful trades to make sure
you understand everything perfectly. Go to a broker website and
register for a free demo account, preferably with the company you
actually use or plan to use for your real trades. You can register
for a regular demo account if you plan to trade regular lots as
explained above, or register for a mini demo account if you plan to
start with a mini account. In your demo account you can practice
making trades in real-time without worrying about losing any real
money.
Make sure to play around with making trades in your demo
account, don’t worry about making losses, just practice entering
trades to get familiar with the steps to entering a trade. You don’t
want to miss out on a great trading opportunity because you don’t
know how to enter a trade. Also play around getting familiar with
your charts. I will explain shortly how you will use them.

beggining

BEGINNING
Congratulations for purchasing this report. You have made a very
wise choice to buy this eBook as in it you will learn a truly
amazing system to trade in the Forex markets. You will learn how
to make an easy $200 to $1,500, or even more, consistently and
reliably, with minimal risk, working only about ten minutes each
day!
This small eBook is worth more than “it’s weight in gold”… or
even platinum. Your first successful trade using this system will
more than recover what you have paid for it, and you will be well
on your way to great financial gains.
It doesn’t matter if you are a complete beginner or if you are an
advanced Forex trader. This system is so easy to understand
and to follow that a beginner can profit from it without much of any
understanding about how the Forex market works. This eBook
will even explain some of the things a beginner needs to know,
assuming they know nothing. If you are an advanced Forex
trader then this system can be easily integrated into your existing
“trading tool-box” of tricks you normally use. You may continue
doing whatever else you have been doing and still profit from this
information to increase your percentage gains. If you are an
advanced Forex trader then you will simply get a little review of
some familiar concepts while learning the strategies used here.
NOW, LET’S GET STARTED!
Here is the basic concept of how this strategy works. After this
brief overview I will explain a lot more in a lot more detail. For
those of you who are beginners, if you get confused with any of
the terms in this brief overview then don’t worry about it, I’ll
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explain better later. This is intended to provide an overview of the
trading strategy.
For over a year of trading and watching the Forex markets I
noticed something interesting, which anyone who pays attention
to the markets should have noticed. Usually everyday, and often
more than once a day, the currency pair will be moving along
slowly (sideways movement, consolidation) and then all of a
sudden it JUMPS! It very quickly moves up ten or more pips,
usually in just a minute, and often continues to move strongly for
another hour or so.
This is due to the release of a “Fundamental Announcement”, and
of course any experienced trader should understand that they
usually create a market movement.
I’ve played around trying to capitalize on these movements, and
over time have come up with the perfect strategy to do just that. I
don’t know why somebody hasn’t come up with this strategy
before. Maybe some traders out there have figured this out, but I
don’t know of anyone who is selling this strategy. Either they are
jealously keeping the secret to themselves, or they are so busy
with the hundreds of other more complicated systems that they
simply overlooked this simple yet powerful strategy.
Note added after initial release of this eBook:
I did independently invent the system I’m presenting here; never having heard of anyone
doing anything similar. Since the release of this eBook I have encountered a few very
“experienced” traders who have used a similar variation of this technique. So now I am
aware of the fact that a few others are “clued in” on this kind of strategy, but am pleased
to say that I’ve been told that though they were aware of the general idea they loved the
SPECIFICS I go into explaining EXACTLY HOW to do this with “razor precision”. Most
people who already got this eBook expressed amazement at how simply powerful this
system is, and wondered why they never thought of it or heard of it themselves (and this
is said by experienced traders). I’m pleased to say that many people wrote to me to
express their gratitude and that they are very impressed with this system.
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Basically, you find out when Fundamental Announcements are
due to be released and then just a minute before the release time
you set up two entry orders go either long or short so when the
market explodes in either direction (you really don’t care which
way it goes) you are in for a profitable ride. Typically the market
moves 30 to 60 pips when this happens, but frequently it goes
100 or more pips!
If you don’t plan on baby-sitting your computer to watch and set
up a larger pip gain you could simply set up a limit of 20 pips,
which means you’ll likely be out of the market in about one to
fifteen minutes (profit around $200 or more if you trade multiple
lots, i.e. 5 lots would net around $1,000). Not bad considering
your personal time invested this way is only about 10 minutes!
Now, if you have the time to baby-sit your computer you could
easily set up strategically placed stops to capture even more pips.
We’ll explain how to do this shortly.
Now here is the best part – you risk only 10 pips for your stop
loss, and your trades have a very high percentage of wins!
Considering that you typically set up your trades with a stop of 20
to 60 pips this alone is amazing. Thus your risk with this system
truly is minimal. If you trade this system with only a 20 pip limit
your limit-to-stop ratio is 2:1, and if you do the “baby-sitting” thing
where you can easily capture 40 to 150 pips then your ratio goes
to 4:1 to 15:1.
Now, if this didn’t get you excited then you better check your
pulse because this is truly an impressive system to
consistently earn you awesome gains!

Glossary of Forex (Foreign Exchange) Terminology

A
Aggregate Demand - The sum of government spending, personal consumption expenditures, and business expenditures. Appreciation - A currency is said to ‘appreciate ‘ when it strengthens in price in response to market demand. Arbitrage - The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets. Around - Dealer jargon used in quoting when the forward premium/discount is near parity. For example, “two-two around” would translate into 2 points to either side of the present spot. Ask Rate - The rate at which a financial instrument if offered for sale (as in bid/ask spread). Asset Allocation - Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor’s objectives. B
Back Office - The departments and processes related to the settlement of financial transactions. Balance of Trade - The value of a country’s exports minus its imports.
Bar Charts - Standard bar charts are commonly used to convey price activity into an easily readable chart. Usually four elements make up a bar chart, the Open, High, Low, and Close for the trading session/time period. A price bar can represent any time frame the user wishes, from 1 minute to 1 month. The total vertical length/height of the bar represents the entire trading range for the period. The top of the bar represents the highest price of the period, and the bottom of the bar represents the lowest price of the period. The Open is represented by a small dash to the left of the bar, and the Close for the session is a small dash to the right of the bar. Base Currency - In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX markets, the US Dollar is normally considered the ‘base’ currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar. Bear Market - A market distinguished by declining prices. Bid Rate - The rate at which a trader is willing to buy a currency.
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Bid/Ask Spread - The difference between the bid and offer price, and the most widely used measure of market liquidity. Big Figure - Dealer expression referring to the first few digits of an exchange rate. These digits rarely change in normal market fluctuations, and therefore are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.30/107.35, but would be quoted verbally without the first three digits i.e. “30/35”. Book - In a professional trading environment, a ‘book’ is the summary of a trader’s or desk’s total positions. Broker - An individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a ‘dealer’ commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. Bretton Woods Agreement of 1944 - An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US $35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies. Bull Market - A market distinguished by rising prices. Bundesbank - Germany’s Central Bank.
Buying/Selling - In the forex market currencies are always priced in pairs; therefore all trades result in the simultaneous buying of one currency and the selling of another. The objective of currency trading is to buy the currency that increases in value relative to the one you sold. If you have bought a currency and the price appreciates in value, then you must sell the currency back in order to lock in the profit.
C Cable - Trader jargon referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800’s. Candlestick Chart - A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded. Central Bank - A government or quasi-governmental organization that manages a country’s monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank. others include the ECB, BOE, BOJ. Chartist - An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader. Choice Market- A market with no spread. All trades buys and sells occur at that one price
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Clearing - The process of settling a trade. Contagion - The tendency of an economic crisis to spread from one market to another. In 1997, political instability in Indonesia caused high volatility in their domestic currency, the Rupiah. From there, the contagion spread to other Asian emerging currencies, and then to Latin America, and is now referred to as the ‘Asian Contagion’. Collateral - Something given to secure a loan or as a guarantee of performance. Commission – A transaction fee charged by a broker.
Contagion - The tendency of an economic crisis to spread from one market to another. In 1997, financial instability in Thailand caused high volatility in its domestic currency, the Baht, which triggered a contagion into other East Asian emerging currencies, and then to Latin America. It is now referred to as the Asian Contagion Confirmation - A document exchanged by counterparts to a transaction that states the terms of said transaction. Contract - The standard unit of trading.
Contract (Unit or Lot) - The standard unit of trading on certain exchanges. Counterparty - One of the participants in a financial transaction. Country Risk – Risk associated with a cross-border transaction, including but not limited to legal and political conditions such as war etc. Cross Rates - The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate between two currencies other than the U.S. dollar, the currency in which most exchanges are usually quoted.
Currency - Any form of money issued by a government or central bank and used as legal tender and a basis for trade. Currency Risk - the probability of an adverse change in exchange rates.
D Day Trading - Refers to positions which are opened and closed on the same trading day. Dealer - An individual who acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. Deficit - A negative balance of trade or payments. Delivery - An FX trade where both sides make and take actual delivery of the currencies traded.
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Depreciation - A fall in the value of a currency due to market forces. Derivative – A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument. Devaluation - The deliberate downward adjustment of a currency’s price, normally by official announcement.
E Economic Indicator - Economic indicators such as GDP, foreign investment, and the trade balance reflect the general health of an economy, and are therefore responsible for the underlying shifts in supply and demand for that currency.
End Of Day Order (EOD) - An order to buy or sell at a specified price. This order remains open until the end of the trading day which is typically 5PM ET. EURO – since 2002 the Euro has been the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU). Members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal. European Central Bank (ECB) - the Central Bank for the new European Monetary Union.
F Federal Deposit Insurance Corporation (FDIC) - The regulatory agency responsible for administering bank depository insurance in the US. Federal Reserve System - The central bank of the United States, with responsibility for implementing the country's monetary policy and regulating member banks of the System. The Fed was created in 1913 and is composed of 12 regional Federal Reserve Banks and a national Board of Governors
Fixed Exchange Rate- Official rate set by monetary authorities for one or more currencies
Floating Exchange Rates - Floating exchange rates refer to the value of a currency as decided by supply and demand
Flat/square - Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position. Foreign Exchange - (Forex, FX) is the simultaneous buying of one currency while selling for another. This market of exchange has more buyers and sellers and daily volume than any other in the world. Taking place in the major financial institutions across the globe, the forex market is open 24-hours a day. Forward - The pre-specified exchange rate for a foreign exchange contract settling at some
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agreed future date, based upon the interest rate differential between the two currencies involved.
Forward Contract - A forward contract fixes the exchange rate for future delivery at a date to be agreed by both participants. A deposit (or a minimum margin) is usually required in forward transactions. For example, if I want to lock in today's rate to buy $10,000 USD at 1.5820 Canadian for the next 4 months, I will have the ability to purchase up to $10,000 USD at this rate.
Forward Rates (Swaps) - A Forward Rate refers to a cash price of 2 currencies interest difference for a fixed term. Forward rates can be calculated easily given the fixed term interest rates of each currency and the current spot rate
Forward Trading - Forward trading is making the opposite trade of a spot trade in a given period of time. Often investors will swap their trades forward for anywhere from a week or two up to several months depending on the time frame of the investment. Even though a forward trade is on a future date, the position can be closed out at any time. The closing part of the position is then swapped forward to the same future value date Forward points - The pips added to or subtracted from the current exchange rate to calculate a forward price. Fundamental Analysis - focuses on the economic forces of supply and demand that causes price movement. The Fundamentalist studies the causes of market movement, whereas the Technician studies the effects. Futures Contract- An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts – ETC), versus forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
G
Gearing - Also known as margin trading. A term used to in the relationship of actual equity versus controlling equity.
Group of Five (G5) - are five leading industrial nations (France, Japan, Germany, the UK and US), which meet from time-to-time to discuss common economic problems.
Group of Seven (7) are 7 leading non-communist industrial nations composed of G5 plus Canada and Italy. Group of Ten (G10) is also known as The Paris Club which includes Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, UK and US. These nations signed an accord in 1962 to increase the fund available to the IMF and aid member countries with balance-of-payments difficulties.
Goldilocks Economy was a term coined back in the mid-1902 to describe an economy that was not too hot and not too cold. This typically describes an economy that enjoyed steady growth with nominal rate of inflation.
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Good ‘til Cancelled (GTC) - An order to buy or sell at a specified price. This order remains open until filled or until the client cancels.
H Hedging - A hedging transaction is a purchase or sale of a financial product, having as its purpose the elimination of loss arising from price fluctuations. With regards to currency transactions it would protect one against fluctuations in the foreign exchange rate. (see Forward Contract)
I Inflation - An economic condition whereby prices for consumer goods rise, eroding purchasing power. Initial margin - The initial deposit of collateral required to enter into a position as a guarantee on future performance. Interbank Rates - The Foreign Exchange rates at which large international banks quote other large international banks.
L Leading Indicators - Statistics that are considered to predict future economic activity. LIBOR - The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank. Limit order - An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 102.00/05, then a limit order to buy USD would be at a price below 102. (ie 101.50)
Line Charts - The Line Chart connects single prices for a selected time period.
Liquidity - The ability of a market to accept large transaction with minimal to no impact on price stability. Liquidation - The closing of an existing position through the execution of an offsetting transaction. Long position - A position that appreciates in value if market prices increase. When one buys a currency, their position is long.
M Margin - The required equity that an investor must deposit to collateralize a position.
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Margin Deposit - The margin deposit is not a down payment on a purchase of equity, as many perceive margins to be in the stock markets. Rather, the margin is a performance bond, or good faith deposit, to ensure against trading losses. The margin requirement allows traders to hold a position much larger than the account value, which allow for this high leverage. In the event that funds in the account fall below margin requirements, brokerage firms will automatically close all open positions. Margin call - A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the client. If the equity balance in your account falls below the margin requirement, a margin call will be generated. In the event that an account exceeds its maximum allowable leverage, ALL open positions are liquidated immediately, regardless of the size or the nature of positions held within the account. Market Maker - A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument. Market Risk - Exposure to changes in market prices. Mark-to-Market - Process of re-evaluating all open positions with the current market prices. These new values then determine margin requirements. Maturity - The date for settlement or expiry of a financial instrument.
N
Narrow Market - occurs when there is light trading and greater fluctuations in prices relative to volume. This is often interchanged for THIN MARKET.
O Offer - The rate at which a dealer is willing to sell a currency. Offsetting transaction - A trade with which serves to cancel or offset some or all of the market risk of an open position. One Cancels the Other Order (OCO) - A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled. Open order – An order that will be executed when a market moves to its designated price. Normally associated with Good ‘til Cancelled Orders. Open position - A deal not yet reversed or settled with a physical payment. Over the Counter (OTC) - Used to describe any transaction that is not conducted over an exchange. Overnight - A trade that remains open until the next business day.
P
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Pips - Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points. Political Risk - Exposure to changes in governmental policy which will have an adverse effect on an investor’s position.
Point & Figure charts - The Point & Figure Chart disregards Time and focuses entirely on price activity. Position - The netted total holdings of a given currency. Premium - In the currency markets, describes the amount by which the forward or futures price exceed the spot price. Price Transparency - Describes quotes to which every market participant has equal access.
Q Quote - An indicative market price, normally used for information purposes only.
R Rate - The price of one currency in terms of another, typically used for dealing purposes. Resistance - A term used in technical analysis indicating a specific price level at which analysis concludes people will sell. Revaluation - An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation. Revaluation Rates - The revaluation rates are the market rates used when a trader runs an end-of-day to establish profit and loss for the day. Risk - Exposure to uncertain change, the variability of returns significantly the likelihood of less-than-expected returns. Risk Capital- The amount of money that an individual can afford to invest, which, if lost would not affect their lifestyle. Risk Management - To hedge one’s risk they will employ financial analysis and trading techniques Roll-Over - Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
Rollover Rate -The daily rollover interest rate is the amount a trader either pays or earns, depending on the established margin and position in the market. To avoid rollovers simply make sure positions are closed at the established end of the market day.
S Settlement – The process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the
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actual physical exchange of one currency for another. Short Position - An investment position that benefits from a decline in market price. When one sells a currency their position is short.
Spot/Next - A currency deposit transaction or the simultaneous purchase and sale of currency, or vice versa by means of swap for spot value day against the next working day.
Spot Price – The current market price. Settlement of spot transactions usually occurs within two business days.
Spot (Rate) - In FX Markets, Spot refers to the cash price without interest factored in.
Spot Trade - When you trade foreign exchange you are always quoted a spot price 2 business days in advance. This is under normal conditions where there are no bank holidays in the traded currencies countries or is not over a weekend.
Spread - The difference between the bid (buy) and offer (ask, sell) prices; in other words the spread is the commission that the brokerage house makes on each trade. This can vary widely between currencies and between brokerage firms. For example, USD/JPY may bid at 131.40 and ask at 131.45, this five-pip spread defines the trader’s cost, which can be recovered with a favorable currency move in the market. Sterling – slang for British Pound.
Stop Loss Order - Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor’s position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.
Stochastics Oscillator - This technical analysis indicator is based on the premise that during an upward trading market, prices tend to close near their high, and during a downward trading market, prices tend to close near their low. Support Levels - A term used in technical analysis indicating a specific price level at which a currency will have the inability to cross below. Recurring failure for the price to move below that point produces a pattern that can usually be shaped by a straight line. It is the opposite of Resistance levels. Swap - A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Swift - Society of Worldwide Interbank Financial Telecommunications. It is a dedicated computer network that is set up to support fund transfer messages between member banks worldwide.
T
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Technical Analysis - An effort to forecast prices by analyzing market action through chart study, volume, trends, moving averages, patterns, formations and many other technical indicators.
Tick - Minimum price move. Ticker - Shows current and/or recent history of a currency either in the format of a graph or table. Tomorrow Next (Tom/Next) - Simultaneous buying and selling of a currency for delivery the following day.
Trading - Buying or selling of goods and services among countries called commerce. Forex Trading is the trading of Foreign Currencies. Transaction Cost – the cost of buying or selling a financial instrument. Transaction Date – The date on which a trade occurs.
Trend - simply the direction of the market, usually broken down to three categories….major, intermediate and short-term trends. Three directions are also associated
Trend Line - This is a Technical Analysis indicator also called or linear regression, which is a statistical tool used to uncover trends. It is calculated by using the "Least Squares" method. There are two ways to use the linear regression line: a. Trade in the direction of the Trend line. b. Construct a parallel trend channel above and below the Trend line to be used as support and resistance levels. Turnover - The total money value of all executed transactions in a given time period; volume. Two-Way Price - When both a bid and offer rate is quoted for a FX transaction.
U Uptick – a new price quote at a price higher than the preceding quote. Uptick Rule – In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed. US Prime Rate - The interest rate at which US banks will lend to their prime corporate customers
V Value Date - The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date. Variation Margin - Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements.
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Volatility (Vol) - A measure of price fluctuations. The standard deviation of a price series is commonly used to measure price volatility.
Volume - represents the total amount of trading activity in a particular stock, commodity or index for that day. It is the total number of contracts traded during the day.
W
Weak Dollar/ Strong Dollar - dollar is said to be weak (relative to a previous time period) against another currency when more dollars are required to buy one unit of another currency. The dollar is strong or has gained in strength when fewer dollars are required to buy one unit of another currency. For example, if $1 buys 10 FF in 1989 but today $1 buys only 6 FF then the dollar has weakened against the franc.
Whipsaw – slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
X
Y Yard – Slang for a billion.
YIELD - Return on capital investment.
Z
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why forex

FOREX" OR "FX" MARKET The currency (foreign exchange) market is the largest market in the world. It is also called the foreign exchange market, or "FOREX" or "FX" market for short. It is the biggest and most liquid market in the world, and it is traded mainly through the 24 hour-a-day Interbank currency market - the primary market for currencies. The FOREX market is a cash (or "spot") interbank marekt. By comparison, the currency futures market is only one percent as big. Foreign Exchange simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs - Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies - Australian Dollar, British Pound, Canadian Dollar, Japanese Yen, Swiss Franc, and the U.S. Dollar. Unlike the futures and stock markets, trading of currencies is not centralized on an exchange. Forex literally follows the sun around the world. Trading moves from major banking centres of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S. In the past, the FOREX interbank market was not available to small speculators due to the large minimum transaction sizes and often-stringent financial requirements. Banks, major currency dealers and the occasional huge speculator used to be the principal dealers. Only they were able to take advantage of the currency market's fantastic liquidity and strong trending nature of many of the world's primary currency exchange rates.

Forex Money Management

Forex Money Management
Money management is a critical point that shows difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year.
MINDSET OF THE MILLIONAIRE TRADERShow millionare traders think ..operate..deal with the market ..self manage..money manage their trading account .very important book for all traders.

Forex and Online Currency trading

تجارة العملة
اكسب الاف الدولارات شهريا

تعلم العمل في البورصة الدولية للعملات وانت جالس فى منزلك
اشتر مئات الآلاف من العملات الدولية بمئات الدولارات فقطً
يمكنك الحصول على الربح سواءاً ارتفعت الأسعار أم انخفضت
يمكنك العمل في أي وقت تشاء على مدار 24 ساعة في اليوم
يمكنك فتح حساب بدون عمولات
نقطتان هو اقل فرق بيع وشراء فى كل الأسواق العالمية
نقدم لك نصائح اهل الخبرة فى مجال تجارة العملة
تدريبات فى تجارة العملة
استراتيجيات وطرق للتجارة

FOREX is the world’s largest and most liquid trading market. Many and many traders consider FOREX or the currency trading as the best home business opportunity you can ever venture in.
Allthough it has been of a loosely guarded secret, more and more investors are turning to FOREX trading to make money and profit. This is because Forex or Currency Trading has numerous benefits & advantages over the other traditional trading vehicles, like commodities, stocks and bonds.
As an old trader said, FOREX Trading is like picking money up off the floor. And for any other person, who is Not trading FOREX, is like leaving the money there for someone else to pick it up. Others in the industry of forex trading have also said that FOREX Trading is like having an ATM machine on your computer.
But, still, because Forex seems new or is just becoming a part of social conversation, news articles, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.
Forex Brokers: Helping to Maximize Your Success in Forex Trading:
A Forex broker is a broker dealing in foreign exchange. He is just like real estate broker. A Forex broker is an advisor who can advise you about the forex market and allows you to trade 24 hours a day with the major currencies like EUR, GBP, CHF, JPY, etc against the USD on the spot.
Still, there are many great Forex brokers who maintain competitive spreads in the three or four major currencies against the Dollar, and also many other currency pairs including USD/CAD and AUD/USD. They also have major features like:
1- Real-time streaming prices
2- Price certainty on market orders
3- Competitive pricing
4- Fixed 2-5 pip spreads
كيف تختار شركة وساطة جيدة لكى تفتح حساب تداول معها ؟
خدمة عملاء جيدة و سريعة
فرق بيع وشراء منخفض
اسعار تنافسية
سوفت وير متقدم