Answers
Hi. I am really new to online currency trading and all this stuff. Actually i havent done it ever before. I want to start with the online forex trading but i need some tips. How do I start? I got the demo account and all I see is some charts and symbols i have no idea about :D Do you know any good online FREE!!! tutorials? Also do I have to pay for the real account? Thx for help
Here's the answer I gave to the same question yesterday:
First, learn about the 50% retracement rule. This is the single most reliable and simple rule for a beginning trader. You may ignore every other "technical" or chart indicator when you are first starting out. You may learn about this by googling for it, or by finding a book.
Second, learn what to expect and what not to expect from the "advice" that you will find in your search to learn how the stock or commodities markets work. This "advice" will come in the form of fundamental analysis, news, websites, technical analysis, stock brokers, investment advisors. The best way to learn which things to pay attention to and which to ignore, is to read the book "WAll Street: The Other LAs Vegas." It might sound like a cheesy title, but it's a good book written by a dancer who started trading in stocks, and learned what to trust and what not to trust. He learned the hard way. Once he figured it out, he turned some 50 thousand dollars into two million.
Third, you will need to develop a trading plan. This will be primarily based on your 50% retracement. rule. To this you will add a method to control your losses. For beginning traders, the easiest way to do this is to learn how to use "stop losses." So you will enter trades with the rule, you will let your profits run, and you will limit your losses.
Next, you will open an online account with a stock, currency or futures brokerage. It doesn't matter which. Day trading is all the same. If you want to trade stocks, trade stocks. If you want to do currencies or futures, do those. The differences between them are as follows:
Stocks usually require several thousand dollars to trade. They tend to charge higher commissions and fees. With stock accounts you can usually buy a "little" more than how much cash you have. It's called "margin."
You can open up a currencies account with *very* little money. Like, $250. Currencies are highly "leveraged" trading. Meaning a little goes a long ways. It's good and bad.
A futures account is for trading commodity futures, stuff like oil, sugar, coffee. Again, highly leveraged. You need a minimum of 10,000 to open up this one.
If you live in the US, here are the things to look for when you shop for a brokerage:
- If you're going to trade STOCKS, look for a brokerage that is a member of the FINRA and SIPC. This means the company is "regulated" and you won't have to worry about them stealing your money.
- If you're going to trade CURRENCIES or FUTURES, make sure the company is a member of the National Futures Association (NFA).
Next, open up your account. If you open a currency or futures account, the cool thing is, you can "practice" trade with their demo accounts for as long as you need. This is very useful. I recommend doing it.
Finally, once you get used to trading, start learning about additional methods of risk control. Such things as option spreads are very useful.
For More Price Action Forex Trading Strategies Video Tutorials Visit www.learntotradethemarket.com
How to talk like an investor
Hen it comes to understanding the long and short of investing, most beginner investors must learn what seems like a new language. In fact, the phrase "the long and the short of it" originated in financial markets. In this article we discuss certain key terms that will help you better understand and communicate with other market participants. These terms are used in the equity, derivative, future, commodity and forex (or currency) markets. You will learn what buying, selling and shorting really mean to investors and how they can use certain terms interchangeably with more confusing words like bullish and bearish. To compound the issue, options traders add in a few other terms like writing a contract versus selling one. When you can communicate properly, you will be better informed and can make wise investment decisions.
The Long and the Short of It
The financial markets allow you to do a few things that are really common in everyday life and a few things that aren't. When you buy a car, you own that car. In the stock market, also known as the equity market, when you buy a stock, you own that stock. However, you are also said to be "long" on the stock or have a long position. Whether you are trading futures, currencies or commodities, if you are long on a position, it means you own it and hope it will increase in value. To close out of a long position, you sell it.
Ahead Of The Fed - Forex Trading, Currency Forecast, FX Trading ...
Winning Of The Fed
The markets have immersed U.S. Retail Sales, earnings releases, Asian and European bullish disinterestedness runs, and oil and gold prices that have set new yearly highs. Winning lies the FOMC judge assembly minutes that will be revealed at 14:00 EDT on Wednesday. The grave pairs may consolidate overnight moves in the lead of the FOMC rescue, as once again we see a edge in trading undertaking.
During the last three months the U.S. hearing has dominated sacrifice machinery, yet over the last few weeks the conference has not generated too much expenditure manners. We are seeing 30 split second bursts of decrease that break out in mean-reach an agreement ranges, and then gaze at downcast consolidation of the breaks. The regional spread out and skinflinty of Asian, European, and U.S. commercial markets is when the impulse hits at the instant.
The markets are at the commencement of the 3rd fourth earnings seasonable, and as such are at a be that as it may where volatility and reversals can Loosely transpire b emerge out of nowhere on the stamina of hits, or misses as the the actuality may be, on expected earnings numbers. Traders have seen already the smashing on intra-day set-ups that are reversed or turbo-charged as the earnings reports hit. Yearn stocks on favourable earnings have been equating to in a nutshell Bermuda shorts-dollar plays.
JPMorgan reported $0.82 EPS, healthier than expected, and enough to treenail the S&P higher. However, it has not been enough to check the dollar cut, and the Chicago futures trade in by a hair's breadth came thronging and sent the noteworthy currencies off to assay overnight pay for areas.
Irrefutable earnings reports have allowed equities to proffer higher. The genuine assess will be when a principal performer misses their objective. The S&P and Usd are conversley correlated freedom now.
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News
Wednesday's Options Intelligence Report: HOG, XRT, S, ROVIThe Options Insider - Oct 14, 2009
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(Also check out our Forex Tutorial for more in-depth explanations.) Other terms that are often new to beginning investors are "bullish" and "bearish.
The Options Insider - Oct 13, 2009
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Learn how with The 10 Keys to Successful Forex Trading by Jared 'FXCHIEF' Martinez. Jared is your guide in this easy Forex tutorial covering the market's and more »The Options Insider - Sep 25, 2009
Learn how with The 10 Keys to Successful Forex Trading by Jared 'FXCHIEF' Martinez. Jared is your guide in this easy Forex tutorial covering the market's and more »