Archive for December, 2014

Introduction to the Forex Market

What is Forex??

“Forex” stands for Foreign Exchange; or some call it FX. During a forex trade, you sell one currency and you buy another. Consider you travelling to Australia and you want some dollars. What you essentially doing is selling PGK and Buying Australian Dollars. That exchange is over the counter market. These exchange has been extended also over the phone and internet and occurs almost every single day.

Foreign currency buying and selling is now a really big business with over US$4 trillion traded on a daily basis. This is how much money being traded daily in the world’s financial market. These processed of buying and selling of Foreign Currency has been decentralized and is now offered to registered financial institutions (brokers) who intend makes it possible for ordinary citizens to trade foreign currency in the comfort of their home.

forex

Why trade Forex?

Exchange between two countries happen every single minute throughout the world. Financial institutions actively involved in Foreign Exchanges. When there is a demand for Australian Dollars, the value of AUD increases, when there is less demand for Japanese Yen, the value of YEN decreases.

With the rise and fall of currencies occurring almost every single, traders can easily buy a AUD$, then sell it in the next 5 minutes, 30 minutes, 60 minutes to earn a profit. The buying and selling of the Foreign Currency makes it a very fast turn-around time to make a profit. Off course, no one knows if the price of AUD will keep rising in the next 30 minutes or fall. Therefore, there is an element of risk associated with FOREX trading.

How do you trade Forex?

Forex trading is usually offered by Registered Brokers. These brokers offered their trading platforms for individuals to use.  Top forex brokers excel in a variety of areas like trade execution, real-time access to prices and charts, and educational resources. Most brokers have several platforms, including those that are highly specific for automated and algorithmic trading. Some of the largest factors that come into play when selecting a forex trading platform are your individual trading style and experience level. Well-rounded forex platforms will have the most flexible solutions that enable you to trade and manage risk from any computer or mobile device.

Here is a list of some of the FOREX BROKERS

  • UFX Markets
  • InterTrader Direct
  • IG
  • 3D MarketsForeign Currencies
  • FXCM
  • com
  • ETX Capital
  • FxPro
  • com
  • Plus500
  • Alpari
  • City Index
  • Spreadex
  • eToro
  • Easy Forex
  • Saxo Capital Markets
  • SpreadCo
  • Capital Spreads
  • com
  • Thinkorswim
  • MB Trading
  • TradeKing
  • And many many more

Our new article will be on find a broker

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Day 2 – Day Trading for non-Day Traders

After my initial post yesterday, a friend of mine on google plus email to say she is interested to know what I am writing about but she has no idea what Day Trading is about. So this article I will attempt to simplify Day Trading as much as possible.

Day Trading is similar to Stock Brokering.

A Stock Broker buy and sell stocks/shares on the Stock Market. He usually buy and wait for a longer period of time before offloading it to make a profile. Time frame can be from a week, a month, 6 months even years before he sells.

A Day trader usually does all his buying and selling within a day or when the stock market opens and closes with the 8 hour period. The profile may semarket5em small, but if you dealing with large sums of money or making a lot of trade within a day…..it could turn out to be a handsome amount.

It is not difference to an umbrella seller on the street selling umbrellas he bought in a shop. But resells it with a markup during a rainy after. The concept is the same. Buying at a lower rate and selling at a higher rate to make a profit.

What do Day Traders buy or sell??

So you ask me……what so demanding the Day Traders can buy or sell continuously in a single day?

Day Traders like Stock Brokers trade financial instruments. These stocks, options, currencies and some futures contracts such as equity index futures, interest rate futures and commodity futures. These financial instruments are traded every single working day except the weekends.

But for the purpose of this exercise and our learning, we will focus only on one financial instrument which is currency. We will study and attempt to buy/sell Foreign Currency or FOREX for short.

Thanks all for today………tomorrow we will look at what foreign Currency (FOREX) is and why a lot of traders like this market.

Day Trading for Non-Trader

I have decided to do another career change and be a Full Time Day Trader. This has come about after a few months of soul searching and I wanted to do something along where my strength lies.

I studied Applied Econometrics for a Master’s but I haven’t applied anything of what I have learnt intforex3o my career. I sort of deviated from it and started doing something far from what I have given 20 years of my life towards.

So inspired and realigned …….. I want to get back on track after losing almost 10 years of my life doing something that’s totally out of my league.

So if you are interested in Trading Forex and becoming a Day Trader, I hope that I can inspire you as well and write these HUBPAGES for a Non-trader. I have decided to focus my HUBPAGES and write on Day Trading as a Non-Trader in the hope that I can bring value to those millions out there who havn’t had any idea of what Day Trading, Forex, share markets is and wants to start making money on their free-time.

While I write these HUBPAGES, I must point out that I am fully employed as well. It is my hope that by writing these HUBPAGES, I could at least walk through with you the basic principles of Forex Trading.

I hope I could document my success so non-traders can emulate

Cheers to the First Day!!

DAY TRADING: