To Learn Forex

By Bart Icles

As much as you give yourself time to learn the basics of the forex market, as well as some advanced ideas about it, it also helps to learn forex trading myths to keep yourself aware. These myths can as easily trick you to making the biggest mistakes in forex trading that can prove to be damaging, especially to newcomers to the currency market. More often than not, there are many newcomers who fall into the array of forex traders who end up losing their money because they are all too caught up in believing that forex trading is a get-rich-quick scheme. This is just one of the many forex myths that you should learn so you can keep yourself from making the biggest forex trading markets that any trader can commit.

Forex trading is not a simple buy and sell thing and it does not offer any get-rich-quick promises. Currency trading requires a thorough understanding of what the different trading systems are and how you can use trading signals to your advantage. To learn forex trading basics is just the start. This unpredictable market might require you to go through a series of losses first before you can fully understand the different crafts used in the trade. Keep in mind that forex trading is far from child?s play.

With this said, it also helps to take note that forex trading is far from playing online casino games. There are those who equate trading to gambling but this should not be the case. In forex trading, your success does not totally rely on luck. Your success can also be defined by how well you are able to understand and use macroeconomic indicators to your advantage.

If you are thinking that forex trading is just for the rich and famous strategists, you can never be more wrong. The currency market is by far one of the easiest markets that newcomers can join. You simply need a computer, an internet connection, some spare time to spend on trading, and about a couple of dollars in capital. If you were able to spend enough time to learn forex basics and myths, you will be able to distinguish which things to do best in certain situations that will eventually help you rake in profits.

So remember, to learn forex basics is not enough. You should also learn about the different forex myths so you can develop ways son how to avoid them. Awareness can just become your key to success in this rewarding yet unpredictable market. - 23217

About the Author:

Forex Training starts with a desire to learn and a drive to become a great trader. Becoming a Forex Trader takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Understand Forex Pips (Part II)

By Ahmad Hassam

The results must be converted to dollars using the current exchange rate between the quote currency and the US Dollar in order to obtain the dollar value of the pip if the quote currency is anything other than US Dollar. Here are a few examples:

Example#1: Consider the currency pair USD/JPY. USD is the base currency. JPY is the quote currency here. Using our formula: Pip value for 1 standard lot of USD/JPY= 100,000 (Lot Size)*1(No of Lots)*0.01(Pip Size) = 1000.

The quote currency is in Yen, so the value of 1 pip on a standard lot is also in Yen. You need to convert this pip value into USD if your account is in US Dollar. The broker will do that for you automatically if you instruct the broker to do so.

You should know that your profit and loss will stay in that currency you made a profit or loss in until you instruct the broker to exchange those currencies into your own base currency. However, lets do it ourselves as well.

Suppose the USD/JPY rate is 101.02. The Dollar pip value will be 1000/101.02= $ 9.89. Therefore, 1 pip is equal to $ 9.89 in the case of USD/JPY for a standard lot at the exchange rate of 101.02.

Second Example: Now consider the currency pair EUR/GBP. It is a cross currency pair. Meaning it does not involve USD on any side. Any currency pair that does not have USD in it is known as the cross currency pair. Some cross currency pairs are very important. The base currency in the currency pair EUR/GBP is Euro and the quote currency is British Pound.

Here, the quote currency is in British Pounds, hence the value of pip is also in Pounds. Pip value for a standard lot of EUR/GBP= 100,000 (Lot Size)*1 (Number of Lots)*0.0001(Pip Size) = 10.

You need the GBP/USD exchange rate in order to convert into USD. Suppose the GBP/USD exchange rate is 1.8465. Dollar pip value will be 10*1.8465=$18.46.

Example#3: Consider the currency pair EUR/USD. The base currency is Euro. Here the quote currency is in USD so you wont have to make any conversions. Pip value on a standard lot=100,000(Lot Size)*1(Number of Lots)*0.0001(Pip Size) = $10 per pip.

Leverage does not affect the pip value. It should be kept in mind that while the lot size, amount of lots traded and the specific currency pair traded will certainly affect the pip value, the leverage chosen by the trader whether it is 50:1, 400:1 or somewhere in between, has absolutely no bearing whatsoever on the pip value.

You must have seen many times the exchange rate expressed like 0.5678/0.5683. For example the EUR/USD exchange rate might be 0.9955/0.9959. The exchange rate for any currency pair is expressed in the form of bid/ask. The first number is the bid price that you will get from your forex broker if you sell Euros against US Dollar. The second number is the ask price also known as the offer price, the price at which the broker will sell you Euros against US Dollar.

Spread is also an important concept that you need to know. The difference between the bid and ask price is known as the spread. Spread is always expressed in pips. It may vary from broker to broker. Spread is the brokers profit and youre trading cost. Sometimes there can be slippage also. Slippage is also expressed in pips. New traders often think that the difference between the price they see on their charts and the price the broker quotes them is slippage. This is wrong. Your charting software and broker prices are two different things. - 23217

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Try These 1500 Pips A Day Forex Signals From Heaven. Know Forex Rebellion!

Discovering Successful Forex Trading Platforms

By Landon Liam

You want to pick a good broker not one that is trying to cheat you out of your money but one that supports you and your decisions and gives you help and support if needed. There is a lot of information on the internet with hoards of content on the Forex Market. So don't dive head first into the system or you will hurt yourself, find some information on the basics of the system from search engines like Google, it will help you significantly.

When considering a system, you must first be aware that there is no such thing as a totally foolproof automated trading system. In phase two, price breaks beyond the upper boundary and develops a trend. Trading system design needs to take into account if the market is range bound or trending, that is, is the market in phases one or three or two or four.

There are many approaches to determine which is the best forex software, but of course, I think you will agree with me that performance or profit potential is what matters the most when looking at the different options. I have used many forex software (some of which I simply have returned for a refund) and I did not know whether they where the best or not until I put them to use. However, the landscape of the trading tools market has gone through some interesting changes due to serious improvements in the technology behind the best forex software, and now you can find what is called "live proof" of earnings in a few of those websites.

There are many forex trading software companies that will promise you the world. Be sure to always temper your expectations with a little bit of common sense. It is important to remember that there will always be some level of risk when anyone makes an investment.

Is the candlestick pattern a profitable Forex trading strategy? Candlesticks patterns were first used in Japan five centuries ago in the Dojima rice exchange. The Forex market is a good source of income for people who know how to accurately read currency trends. Before employing candlestick pattern trading, aspiring traders must first know enough about it. - 23217

About the Author:

Forex trading comes with significant risks. It is still likely that you can lose cash, but with a reliable automated forex trading systems you will be able to minimize that risk. Visit ForexVerse.com to find some of the best forex trading system software products available on the market today.

US Dollar Currency Profile (Part II)

By Ahmad Hassam

Role of monetary and fiscal policy in strengthening or weakening the US Dollar or that matter any other currency is important. The Federal Reserve Board (FED) is responsible for making the monetary policy of United States. Through its Federal Open Market Committee (FOMC), FED sets and implements the monetary policy. The voting members of FOMC are the seven governors of FED plus five presidents of the district reserve banks. Eight meeting of FOMC are held every year. These meetings are widely watched by the analyst for interest rate announcements and changes in growth expectations.

FED has a high degree of independence in setting the monetary policy. FED has the mandate for long run price stability and sustainable economic growth. FED uses the monetary policy to control inflation, unemployment and balanced growth. The most important tool used by FED is its Open Market Operations.

Open market operations involve FEDs sale or purchase of government securities that includes treasury bills, notes and bonds. In increase in FEDs purchases lowers the interest rates while selling of these securities raises the interest rate.

Federal Fund Rate is the key policy target of the FED. It is the interest rate at which the banks lend overnight to one another in the overnight interbank market. The primary interest rate that is affected by these operations is the Federal Fund Rate. The market then adjusts the other short term and long term interest rates accordingly. FED does not directly sets the Federal Fund Rate. It establishes a target rate through the open market operations.

The US fiscal policy is in the control of US Treasury. Fiscal policy means the amount of taxes and government spending for a given year. In fact it is the US Treasury that actually determines the US Dollar policy.

You should always try to watch the US Treasury views as changes to that view is very important for the currency markets. For example, US Treasury can give instructions to the New York Federal Reserve Board to intervene in the forex markets by actually buying or selling US Dollars if the US Treasury feels that the US Dollar is under or overvalued.

The heavily traded currency pairs in the global currency markets are EUR/USD, USD/JPY, GBP/USD and USD/CHF. These currency pairs represent the most frequently traded currency pairs in the global markets. So the most important economic data for the global currency markets is the US Dollar fundamentals. Over 90% of all currency deals involve the US Dollar. As you can see, all these currency pairs involve US Dollar on either side of the pair.

The US Dollar moves in opposite direction to the gold. There is an almost perfect negative correlation between the US Dollar and the gold prices. This inverse relationship stems from the fact that gold is measure in US Dollars.

When US Dollar depreciates due to global economic uncertainty like the present, gold appreciates. Similarly when the US Dollar will appreciate on the news of US economic recovery, gold prices will go down. Gold is commonly viewed as the ultimate safe haven commodity by the investors all over the globe. You must know that the gold prices are going up right now and have reached very high levels. Gold trading and currency trading can be a very powerful combination. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!

Picking Your Debt Consolidation Loan

By Layla Vanderbilt

In order to get the lowest interest rates on debt consolidation loans, we first need to look at what terms and rates exist. The companies that lend money have to compete with each other, so they have to offer low rates. Finding a loan with a rate that is even just a quarter percent lower saves you a significant amount of cash. Also, the kind of loan you pick may have major financial considerations.

Choosing the Debt Consolidation Loan that Fits You: Loan seekers have two debt consolidation loans to choose from -- secured or unsecured. What is the difference? If you get a secured loan, it is made with your home or other property as the collateral. Some people decide to use the equity in their home or other property to pay off all their debts. Another type of secured loan is a home equity line of credit, which can also be sued to pay off your bills. Both of these loans allow you to deduct the interest on your taxes.

If you go for unsecured debt consolidation loans, be sure of a higher interest rate just like in those unsecured personal loans. The interest rate can also be a bit higher than usual if you have a bad credit rating. Having a steady income source is mandatory before accessing this type of loan.

Finding Lenders: When you pick the type of debt consolidation loan you require, consider all the financial factors. A secured debt will involve fees. You may also find that interest rates are higher than when you first received your mortgage. However, you require to remember their tax advantage. For sizable debts, a secure loan usually is the best choice with a longer period to recoup the cost of fees. Unsecured loans are ideal for those who don?t have property or have smaller debts.

Where to go to find that loan? Whether you decide on a secured loan or an unsecured loan, the way to go about finding someone to give you the money works the same way. First, call up several companies and ask them how much their rates are for debt consolidation loans. It isn?t always the well known places that offer the best rates, sometimes a less known lender can give you the best rates. The Internet offers a great source of information on lenders that may offer these types of loans. to start by requesting quotes and terms from several lenders. You may be surprised to find a lesser known lender offers far better rates than national financing companies. Also, use the internet to speed the process by requesting information online.

Information on any applicable fees as well as any upfront and early payments should also be included. With all these costs in mind, you establish the true value of the loan. By now, you should be having a shortlist of the best lenders. Try to find out from your list if there are any discounts or customer service offered. Some lenders offer discounts for first time customers or those applying online. Since you know all the facts about the different lenders choose the one that you feel comfortable dealing with. - 23217

About the Author:

Layla Vanderbilt is the content coordinator for a leading website that offers for instant bad debt consolidation advice and guidance.