Can A Normal Bank Account Help You With Forex Trading?

Posted on August 20th, 2013 in General | No Comments »

With the aid of your bank account you are able to get Forex trading services easily. There are many banks that provide these special services to savings accounts, demat accounts, priority banking account holders. When it comes to Forex trading, you need a special trading account that helps you trade in the market effectively. Most banks give you the chance to open tax free trading accounts for your needs. These accounts give you the scope to manage your investments actively. The gains you receive in the form of dividends or income are free from tax. These accounts are registered accounts in your name. They help you immensely in your private wealth management and give you the scope to freely trade in the Forex market without tensions.

If you live in Halifax you also get the benefits of Forex Trading with your bank account. There are some banks that give you the scope to open a risk free practice account for trading. With the aid of this account you will not lose out on money. The practice account will help you to hone your trader skills with success. With the aid of these skills you get closer to trading goals and achieving them is no longer a mammoth task. If you are new to the Forex market you need to equip yourself with the skills required to master the market, as it is very complicated for a novice to understand. There are customer support teams of the bank to help you in case you have difficulties.

If you are a trader with some years of experience and have a basic understanding of the Forex market you successfully can get live Halifax bank accounts for trading too. Here like the above you need to open a live trading account with the bank. If you have a risk free practice account you also get the option to migrate to the live account once you are confident with trading.  The steps to open a live trading account are simple and quick. You have to fill in the application form and download the trading software. Once the software has been downloaded you can transfer funds into the account.

Forex trading involves a lot of risks to the trader and so this means you have to be completely aware of this reality. Fluctuation in the markets cause loss of capital invested if you are not careful. This is why the Forex market is not ideally suited for all investors. The moment you increase leverage you also increase the risk as well. Before you enter into the Forex market you must consider your financial objectives, the nature and sum of risks you can incur and your trading experience.

Top Financial News Sources

Posted on April 6th, 2011 in Forex Tips, General | No Comments »

If you’re a financial trader, regardless of whether you’re a Forex, stocks or options trader, you always need to get the latest news and the most current information about the financial world. There are lots of news sources in the Internet, but not all of them provide correct information in a timely manner, and not all of them are written by professionals who know what they are speaking about.

Below you’ll find a list of top financial news sources that can be very useful for you, especially if you’re a starter. All these sources are updated regularly, so they always contain fresh and reliable information.

  • http://www.bloomberg.com/ — Bloomberg is a great source providing financial and business news from all over the world. The website also gives you the opportunity to categorize the news by the regions, industries or markets, which will help you to find the needed information easier.
  • http://www.forbes.com/breakingnews/ — Forbes.com is a great website where you can find the most current financial news. The best thing about this website is the fact that they also provide free news from some paid sources (like AP, for example).
  • http://businessweek.com/ — Business Week is an ideal source for a bit old-fashioned people. However, everyone interested in business and financial markets will find something interesting there, since they have much exclusive information and write very good analytical articles.
  • http://money.cnn.com/ — CNN Money will be a very useful news source for you, if you live in the U.S. and operate in the U.S. markets mainly, and especially if you are a Forex dollar trader.
  • http://www.ft.com/ — If you’re interested not only in what’s happening in the U.S., but also in the world-wide news, Financial Times is what you should read. Fast, professional and reliable news source about almost everything that can be interesting for a financial trader and not only.
  • http://www.reuters.com/finance – Reuters is one of the most famous and most professional news sources in the whole world, and I am sure you have heard about it not just once. On their website you’ll find lots of free information about almost everything, including financial market and business news.
  • http://finance.yahoo.com/ — On Yahoo Finance you can find many interesting news stories and articles, including financial news, market summaries and other useful information.
  • http://www.americanbanker.com/ — The American Banker is a very good and reliable news source that operates since 1835 and has won many financial traders’ hearts.

Top 5 Myths about Forex

Posted on April 1st, 2011 in Forex Tips | No Comments »

Forex is a market that gives you the opportunity to make money buying currencies low and selling them high. But perhaps you already know what Forex trading is. The Internet is full of information about Forex, but not everything you read is true.

There are many myths concerning the Forex market, and here are some of the most popular ones:

1. Forex trading is easy. Many people think that Forex trading is very easy — you just need to read a couple of books, think of a good strategy — and you’re rich. Of course, this assumption is far from being true. In fact, Forex trading is like a profession, and you’ll need a lot of time, efforts and practice to master it.

2. Forex trading is like gambling. Some people think Forex trading is like gambling — you never know if you’ll succeed, since everything is completely random. Of course, in Forex, just like in any other financial market, you can’t be sure in anything in advance. Yet this doesn’t mean your success or failure is completely random. As it was said above, many things in Forex depend on your efforts and skills, and luck isn’t that important here.

3. A difficult strategy is needed for success in Forex trading. The more complex the strategy — the better chances to succeed, some people think. It’s just a myth, of course. Success in Forex trading doesn’t usually depend on your strategy; after all, there are many really successful traders that use very old and almost primitive strategies. So your personal traits, your self-discipline and your management abilities are far more important than the strategy you choose.

4. Big investment is needed for success in Forex. There is a common misconception that one can’t succeed and get profit in Forex trading if he doesn’t have a lot of starting capital. The truth is that lots of money won’t really help you when starting. Just get educated and start with what you have.

5. Forex is a scam. This is one of the most common myths, and all those who failed once or got disappointed hurry to claim that Forex is a scam and all the traders are cheaters. Of course, just like in any other field, there are many scams in this field, too, but this doesn’t mean the Forex trading itself is a scam. So be careful, if you don’t want to be cheated, choose reliable brokers and account managers and work only with those companies that have a widely known name and can be trusted.

These were some of the most common myths concerning Forex trading. So be careful and don’t think you can easily become very rich with the help of Forex trading. Don’t think the Forex market is something to be afraid of, either. Just be rational and sensible – these traits will help you not only in Forex trading, but in all other life aspects, too.

3 Benefits of forex trading that make it suitable for debt reduction

Posted on March 12th, 2011 in General | No Comments »

The forex market is the largest financial market in the world. This provides you with the infinite liquidity when it comes to trading and also adequate flexibility. In this market you can trade one currency with another and earn money. Investing in this market may also relieve you of your debts if you know how to invest in this market wisely. You can use the great returns that you get in order to get rid of your debts. Thus, you would not need to opt for traditional debt solutions and would not need to settle or consolidate debt.

When you are under a lot of debt the advantages of investing in the stock market are as follows -

1. You may begin with very little: When you are under a lot of debts, then you will have very little funds available for investment. This could be a hindrance if you were planning to invest in any other market. However, in case of the forex market you can start with a very small amount and earn profits. Thus, investing in the forex market is very beneficial when you are under a lot of debts. You can invest the little that you have and you can use the profit to pay off your debts.

2. You can invest when you want: The timings to invest in this market are very flexible. The market is open for 24 hours which means that you can invest when you please. You can utilize your free time to invest in this market. In a situation when you are already suffering from debts you will not be able to quit your job as you would need a regular income to take care of your expenses. Thus, it is not possible for you to compromise on your job timings. In such scenario the only time you can invest is your after work hours. Forex trading allows you this advantage. You can thus stick to your job and make extra money by investing in your free time. With the amount that you earn you can pay off your debts.

3. You may opt for demo trading: The forex market allows you to trade with play money before you actually invest in the forex market. In this market there is the possibility of making a lot of money and there is also the possibility of losing a lot of money. Thus, it is best to first test your investment strategies with demo trading. This is a great advantage as you get to know where you are going wrong with your investment strategies. When you are in debts it is not advisable for you to take risks while investing. Thus, the forex market provides you with the advantage of testing your strategies even before you invest real money.

These are a few advantages of the forex market that make investing in it beneficial for you when you are in debts.

The importance of Forex Trading Strategies

Posted on February 12th, 2011 in General | No Comments »

Trading in financial markets, like any other serious business operation is carried out through a set of trading techniques, the most popular of them are Forex trading strategies. In practice the trader implement many strategies and usually every trader has his own set of Forex trading strategies which he uses depending on the situation. The distinguishing feature of an experienced trader is his own set of strategies that are regularly used and are proved to be effective.

Forex trading strategies may depend on many factors like the type of financial asset, the size of the managed deposit, the psychological aspects of the trader and his personal perception of risk. To be successful and receive regular profits from trading the investor must establish their own trading forex strategies based on these factors, test them and put them regularly in practice.

Using this set of trading strategies forex trader will avoid unnecessary stress from uncertainty, will not make hasty decisions that might harm the deposit. Forex trading strategies should not only help traders to get into the market at the right time and be in the right place (this is called a planning of the entry point), but also they should help him to close the position in time with the maximum or planned profit.
In general, forex trading strategy usually includes:

  • Set of tools by which you trade
  • Method of analysis (technical or fundamental), that will orient the trader
  • Temporary trading range: weekly, daily, intraday;
  • Rule on working only with the trend or against it
  • Use candlestick analysis

Can I use other people’s forex trading trading strategies? Well, of course you can but you need to know that  an effective forex trading strategy of one trader may be totally unacceptable for another.

So be careful while trading and while choosing Forex strategy.

Photo credit to traderforex

Forex Trading Strategy: Scalping

Posted on January 26th, 2011 in General | No Comments »

Like we already know Forex is the international currency market where one currency is bought and sold for the other. This is one of the biggest markets in the world and there are a lot of people who want to succeed in forex. Every trader sooner or later wants to know how to trade steadily and successfully in the currency market. Currently there are hundreds and thousands of strategies that can be used, however by time every currency trader comes to realize that there is no one universal trading strategy. To develop a forex trading strategy is very difficult; it requires first and foremost a great trading experience. But still there are some basic strategies of Forex and we are going to discuss one of them.

Scalping

Scalping is one of the most controversial trading strategies in the currency market. Some traders consider it a guarantee of success while others consider it to be a waste of money.

The essence of scalping is in the following. A trader opens a position in the forex market, wait for a few seconds or minutes, to gain several pips (hence the name of the strategy), then closes the position. Capturing small price swings, for example, within an hour, you can dramatically improve the profitability of short-term transactions in the Forex market. The trader can make such transactions many several hundreds times during a day.

However scalping is not popular among professional traders. You may manage to gain a good sum, but sooner or later you  fail to receive a constant income over long periods of time.

One of the difficulties of scalping is a great tension with trading. The thing is that scalping requires a permanent presence of the trader in the Forex market, with stressful situations occur repeatedly throughout the day, which reduces the number of rational decision-making while trading.

Another difficulty concerns brokers. Typically, brokers do not like those traders who commit many operations. during the day. Brokers restrict the trader’s number of applications and in addition, and very often traders who give too many orders are asked to close their accounts.

So think twice before choosing a Forex trading strategy.

Photo credit to keny_tuxedo9999

Trader’s Mistakes in Forex Market

Posted on January 18th, 2011 in General | No Comments »

Today we will briefly analyze the most common flaws that traders do while trading in the forex market , try to understand their methods and learn how to prevent errors. The most common cause of traders’ failure is ignoring one of the unwritten rules of the financial market.

First, and the most common mistake of trader is impatience, this physiological factor can greatly influence all your operations. For example the trader builds a good plan for entering the market, sets Stop Loss and Take Profit, does everything correctly.

Here comes the sad part, the trader does not wait for the price to reach the desired point and opens positions before  the desired point. Further, when the price is already coming to the level  that he has set as an market entry point,  technical indicators may change unpredicatbly.  Series may converge or diverge not according to trader’ s expectations, the price could fail to reach or  vice -versa  will outpass his aimed  level and will everything fail. So patience is is very important in this business, patience is money in forex.

The second most common mistake among beginners and sometimes even among  experienced traders  is ” jumping on a departing train.” The second unwritten rule of the Forex market states: no prices – no deal. If you came and turned on the computer and saw that you have missed the price you were aiming for, no matter if you have been waiting exactly for this movement, you have calculated it,  you should let it go, do not worry and in no case make a deal. No second guessing!

The third rule says do not regret for the missed deal. Of course you won’t win anything but you won’t lose either.

Photo credit to caro_hdz_z

Who is A Forex Broker?

Posted on January 12th, 2011 in General | No Comments »

What do we know about brokers of Forex market? Brokers are very important figures at the foreign exchange market as brokers or brokerage companies provide interaction between traders and forex , they provide all the necessary information, accept applications on buying and selling rates and are responsible for their execution. In addition, Forex brokers allow traders to have guaranteed continuity of quotations and anonymity of transactions made. Apart from all this Forex brokers provide their clients with other brokerage services like they provide, help to understand the specifications of financial instruments and trading terminal.

Exactly that is why Forex broker services are of high value on the international currency market.
However, obviously, the Forex broker services are not free, that is why you should approach the choice of a broker very carefully.  Of course there are a lot of Forex brokers, but only few can provide a comfortable working with the clients and become a really stable partner in the exchange trade.

The success of trading in the market for a trader mostly depends on the responsiveness of the brokers well as his ability to react in the right at the right moment.  That is why while choosing a broker pay attention to his experience as it plays a primary role. In addition, the existence of a license, insurance is also essential and provides assurance to the client, as well as for the department dealing with risk analysis.
So take all this into account before making a broker your financial partner.

Photo credit to kjonespr

Internet Forex Trading

Posted on December 28th, 2010 in General | No Comments »

With the development of information technologies and the widespread use of global network, Forex trading has become available over the Internet. Now, you can easily participate in all activities of the Forex market without leaving your place.  Online trading greatly simplified and improved the process of buying and selling of currency and securities, making it more speedy, global and affordable.

And it is not surprising as Forex, being the most flexible financial market, instantly tracks all the technological advances and integrates them into its business practices.

The strategy of the internet trading is quite simple. The customer opens an account in a brokerage company which in its turn provides an  internet access to its trading terminals, which in their turn are connected to the trading system and Exchange Commission. This allows traders give their orders regardless of time and distance.

Online trading allows you to earn money without leaving home, at any time by simply pressing a key. The online trader has no superiors, nor subordinates, he himself is fully responsible for the results of  the work performed and is not depend on economic conditions.

Another feature of online forex trading is that it is available seven days a week, 24 hours a day.

Learning Forex Terminology

Posted on December 13th, 2010 in Forex Tips | No Comments »

I am happy that you are back as today we are going to discuss the basics of the Forex language practically. Take your pen, take a seat and let’s get started.

Each sphere of business has its own “language”, clearly speaking each area has its own terminology and Forex is not an exception. Despite the specificity of many of the terms of forex trading, they are a necessity, without which it won’t be possible to explore the forex market.

Therefore, every trader seeking to succeed in the market should master the Forex terminology perfectly ,of course if you do not want to be fooled.

Now let’s check out some basic forex trading terms:

Rate – the price of one currency expressed in units of another currency.

Base currency – the first currency in the currency pair. Its value is determined as opposed to the other currency pair. For example, if we take a currency pair EUR / USD, here EUR will be the base currency.

Quote currency – the second currency in a currency pair. Its value is defined in opposition to the cost of the basic currency. For example, in the next couple of euro / US dollar, the Quote currency is the US dollar.

Bid price -  sale price.

Ask –  purchase price.

Spread -  the difference between the sale price and the purchase price. That is difference between the bid and ask price.

Pip -  the minimum amount of change in value of the currency.

Transaction – operation of opening / closing positions.

Open position -  buy or sell a currency, thereby committing the transaction.

Close position – close the sale transaction.

Stop-loss – stop order used to limit losses. Is triggered to close the position as it moves toward the loss.

Flat (Square) — when your positions are closed and your are  in neutral state.

Order — order for a broker to buy or sell the currency with a certain rate.

Margin – a cash deposit that a market participant must have to ensure the trading operations

I think this entry will prove useful for all Forex beginners and I strongly recommend that you read them all!