Forex Reader

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.

• http://www.calculatedriskblog.com/ and http://scottgrannis.blogspot.com/ — These are financial and economical blogs – always up-to-date and always full of interesting information.

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.

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!

If you are a newbie in the Forex market, you surely must know that this is a very risky business. No doubt,  the trading in financial markets is a sphere of activity, which gives a chance to become rich and independent, even a simple man who has no experience in conducting financial transactions and business activities can be engaged in Forex market. This is exactly what attracts many newbies to Forex,  sad as this may sound  they usually end up losing money.

However I hope you will not be the one and if you have nevertheless decided to engage in Forex trading, then at least check out some simple tips that I have here.

The first advice to the newbie Forex trader: spend several months on reading Forex literature and studying forex market,  be sure that the knowledge that you gain during this time, will save you money in the future.

Coming up with some more simple tips:

• Decide on the amount of money that you can afford to lose
• Never aspire to earn all the money immediately
• Do not loss the whole deposit for short run
• Remember that all new tactics, strategies, indicators, etc. 80-90% are  well-forgotten old ones;
• Block others’ opinions
• If you are not sure you had better step aside
• Do not trade too many currencies simultaneously
• Find yourself a good Forex specialist  who will explain the principles and practice, who will be experienced in the techniques of successful trading;
• Always be prepared for losses and take them with dignity
• Remember that the money – it’s just money, your life is much more important.

Take these tips seriously and only after you can open a door to Forex market!

Photo credit to shadphotos