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FTSE Spread Betting

FTSE Spread Betting

I have just been watching the Chancellor of the UK present the budget this lunchtime. A quick look at the markets and you will see that they are down by 1.5%. Most people who have stocks and shares will have lost money today but there is a way of making money during falling markets and that is through FTSE spread betting.

So what is FTSE spread betting? The name ‘betting’ gives it a bad name. Yes it is betting but so is all financial ‘trading’. What happens is that you decide which way you think the FTSE 100 is going to go and then you take a position either long or short.

There are also different types of bets that you can put on. If you want to be rewarded for just being either right or wrong then you can put a binary bet on. This is a bit like sports fixed odd betting as you know exactly what you will win or lose beforehand.

The other bet that you can use with FTSE spread betting is daily bets or rolling daily bets. This is slightly different to binary bets in that you don’t know how much you will win and lose beforehand. This amount is determined by how much the market either moves in your favour or against you. Either you are very right and win a lot or you are very wrong and lose a lot.

While this type of trading is very flexible it can be risky. This is because it uses leverage as you trade on a margin. This can be great when you are profiting but can be devastating if you make mistakes.

FTSE spread betting has disadvantages and advantages and it is up to you to decide if it is suitable for you. I did notice the Chancellor did put up capital gains tax but trading this way is currently exempt from that in the UK.…

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Forex Trading Sessions and the Secret to Trading Them

Forex Trading Sessions and the Secret to Trading Them

As you probably know, the forex trading is open 24 hours a day. The forex does not close down in the evenings like stock markets do – instead, it is open 24 hours a day except on the weekend.

The reason that the currency markets are open is because there are banks throughout the world that buy and sell currencies. As a result, the forex trading day is divided up into 3 sessions – each session named for the major city that is open.

They are as follows: New York (U.S. session), Tokyo (Asian), and London (European) session.

A key to remember though is that although the forex is open 24 hours a day, each session has a distinct opening and closing time.

And this gives us the opportunity as traders to take advantage of these trading sessions and to understand their differences.

1. The most active sessions are the London, then New York, and then Asian. Generally, the London and New York are very active while Tokyo is the quietest of the 3. This means that if you are counting on big moves, there is a better chance of them happening during the London and New York hours.

This also means that if your strategy depends on capturing a large number of low-risk, small, 1-2 pips moves, then the Asian hours would be for you.

2. Some trading time overlap – specifically the London and New York hours. There is a time (8AM to noon Eastern) when both the London and New York banks are open. Since these are the times when there is the most volume, you can imagine that trading from 8AM to noon Eastern is full of fun and exciting times. And you would be right!

If you are looking for major moves, they are more likely to happen when the London and NY times overlap.

3. Dramatic changes in market prices can happen at session openings. This is because different parts of the world are opening, and they each have different ideas on what the market should do. Also, major economic news releases occur around the beginning of business hours for these cities, and these economic releases tend to affect the forex prices dramatically.…

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Forex Trading Profits – A Manual Trading Strategy That Works

Forex Trading Profits – A Manual Trading Strategy That Works

It is possible to take up Forex as a full time profession. In fact, it is the only home-based business anyone can set up from home with as little as 1500 USD. You will need USD 500 to set yourself up with a laptop and internet connection and 1000 USD to deposit in your forex personal ECN account. In 20 days you will be making more than USD 200 per day with this strategy, but it takes time and patience.

Good charting software that comes with the popular MT4 trading platform that almost every broker offers free along with a trading account is the only tool one needs. Added to this is the knowledge of trading strategies and risk management and one is all set to set up the perfect home based business without any overheads at all.

It is possible to make as much, or as little (whichever way you look at it), as 200 USD per day trading forex with a 1000 USD account.

I’ll let you in on a little secret forex trading strategy of mine:

Trade a 0.5 percent of your deposit in PIP value. This means that one pip should be equal to 0.5 percent of your deposit. So if your deposit is USD 1000, your exposure per pip should be USD 5.

This will leave you with 160 pips to play around with. The chances of the market moving 100 pips in the wrong direction are scarce if you have an eye on the screen while the trade is open.

A good strategy will give you ample warning that the market is going to move further and you can opt out. I suggest you keep a stop loss of 120 pips, believe me you will never need it if you follow this strategy.

Observe a monthly chart. Mark out the highest point and the lowest point the pair reached over a period of 3 months. Observe the most common price the currency pair kept returning to and draw a line through that point. That is your entry point. Go long with 0.2 lots at that point and go short at the same point with 0.2 lots. Your per-pip value will be USD 2 in each trade.

With 160 pips to play around with you don’t have to worry about the margin call. The market will move in both direction and return to the same entry point at some time or the other. You must set up alerts on the MT4 for 10 pips above and 12 pips below the entry price. When the alert sounds, exit the trade.

If the market moves away in either direction you will still make a profitable trade. It will be a matter of time before the market returns to the entry point.

With a 0.2 lot trade and take profit point at 10 pips, you stand to gain 20 USD per trade. You will get at least 4 opportunities to trade in a day. That will make you USD 80 per day. With a consistent trading strategy you will make 1600 USD in 20 days. Use it to increase your per-pip value.

This is one strategy that has worked for me over the last 2 years. Why, should it not work for you? The only thing that could be a problem here is that you need patience and have to be in front of your terminal every day. It will also pay if you increase your deposit and reduce your trade percentage. The lower the better because then you will have more pips to play around with if the market moves against the trade. Remember, the market will return to the entry point, you just have to wait it out without fearing a margin call.…

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Forex Trading – How to Trade With Trends and Trendlines

Forex Trading – How to Trade With Trends and Trendlines

The trend is your friend. If you have traded the foreign exchange for any time at all, you have heard or read this saying. You see, the forex trends more than any other market in the world. This is very good for us traders because it means we just need to hang on for the ride, and we will make plenty of money.

Simply put, the market is trending higher if it is making higher highs and higher lows. Conversely, it is trending lower if it is making lower highs and lower lows.

Now, as the market trends, it tends to make highs and lows that can be connected with a single line. Of course, you can connect any two points with a line, so trendlines are more reliable when they connect more than 2 highs or lows without the market exceeded the trendline.

Trendlines are another form of support and resistance. Once the market reaches those lines, it will a) either turn around and go the other way, b) stall at the lines while it determines its next direction or c) blow right through them. No matter how the market reacts, it has just given you some great information to where it will be heading next.

So here is how you trade with trendlines. As the market approaches your line, look for other clues that the market may turn around. You can watch for reversal candlestick patterns, wait for oscillators to hit overbought / oversold territory, or wait for trendlines and price to intersect with other support and resistance.

One more thing – the steeper your trendline, the stronger the trend is. It should be harder for the market to break steeper lines. And just because the market breaks it, don’t completely eliminate the trendline – the market may very well dip back inside it later on.…

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Forex Trading To Earn a Living

Forex Trading To Earn a Living

It can be intimidating the first time you want to trade forex because there is a lot of information that you have to know before you can actually start getting involved in it. However, if you do it properly and according to the right procedure, you have the potential to reap huge profits from forex trading. Besides ample knowledge, you must also be confident in yourself. Get ready with a compatible personal computer, apply for an internet connection and keep aside some money to start your forex project.

As soon as you feel you are ready to trade forex, the first thing that you should do is to find a suitable firm that you can trade forex with. It is common for forex trading companies to charge certain amount of commissions when you use their service, so it is best to compare among several firms before registering with any of them. If budget is a concern to you, you have to know how much a forex trading company may charge you when you open an account with them. Some companies may even require you to deposit quite a large sum of money.

Before you start trading with real forex, it is a must that you open a demo trading account first. A demo trading account is not a real forex transaction; you use it to practice. A lot of forex trading companies permit you to open this account using your email. The procedure is simple; just install the appropriate software and you are able to use it immediately.

Practice until you become proficient in the procedure. Experiment with everything that is available to you, and use your own ideas whenever appropriate. Learn about the risks and potentials that may come along the way. The demo account is only a fake account so you can make as many mistakes as you want. It is better to fail in the demo account than to lose real money when you start trading in real forex.

When you think that you are ready to get involved in the real forex trading, you can now create a mini account. There are a lot of companies which allow you to open mini accounts because they know not everybody can start with a huge capital. A mini account can be opened with as little as a $10 deposit. By trading the least amount of money during your first forex trading transaction, you are actually limiting your risks. In addition, you are allowing yourself to observe the real scenario of forex trading, and when you are confident enough you can open a full account.…

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Having A Brokerage Within Your City – Three Advantages You Could Get

Having A Brokerage Within Your City – Three Advantages You Could Get

The foreign exchange market is rapidly growing in popularity across the world. Currently, there is not country where Forex trading is not taking place. The rapid growth is facilitated by the prospect of high profitability. One of the most important players in the Forex market is brokerage firms. These are the firms that execute you trades and allow you to access the Forex market. In fact Forex market cannot be what it is without the services offered by the brokerage firms.

There are certain factors that need to consider when choosing a Forex broker. One of such factor which is very important is locality. Although most traders don’t attach greater weights to location of a Forex broker, it is a very important factor that should not be undervalued. In the market you will find different Forex brokers ready to accept your money. Most of them will not within your reach; same location as you. In this article we provide basics reasons why it is important to consider nearby Forex brokers.

Easy accessibility

You need a Forex broker that you can easily access. In the Forex market, there are very many players some of which you may not know. And because the structure of the Forex market allows money to changes hand frequently and in large sums, it is pretty wise to deal with a company that you can easily access. There are many benefits of easy accessibility. For one, you are in a position to be accountable to your invest investment. You can check in at any time to confirm the operation of the firm. This is to ensure that the firm protect your investment goals and interests.

Dedicated support

During your trading period, you might experience technical problems that can only be solved by your brokerage firm. This may arise for the trading platform that you are using. Although most Forex brokerage firms claim to provide dedicated support, sometime this never happen especially if the broker is not within your physical reaches. There are several people who give testimonies of getting poor trading from their brokers. This could not happen if you visit their premises physically. There are higher chances that they will take your matter very serious and solve it in a timely manner.

Verification of existence and regulation status

If you are dealing with an offshore Forex broker, it might prove very difficult to verify their physical existence and regulation status. You might be dealing with a ghost broker but you are not aware of. If you choose a broker within your town, city or country, you are able to verify whether they exist or not. You can also tell the trend of the business and the future of that broker. Lastly, you need to verify whether the Forex broker you are dealing with is regulated or not. A good Forex broker should be regulated with the right authority. You may not understand the regulatory requirement for brokers from a different country. This is why you need a broker operating from your country or town.

Conclusion

There are many benefits of selecting a Forex broker operating within your city. There are several other reasons that support this than the ones covered above. If you want to avoid the likely disappointment any Forex broker, you should select the one operating within your reach. This could be your town, city or country. This puts at a better position to have control of your investments.…

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Forex Day Trading Strategy

Forex Day Trading Strategy

The Forex market is the place where all of the world’s currencies are traded every day. It is an around the clock market that traders use to set up the value of the different currencies around the globe. All of those traders are working in one of the fastest moving markets in the world. They have to adapt to the ever changing market in order to try to make money.

What Forex day trading strategy can be used?

Forex day trading is the process by which some people trade their currencies. It is when the investor is trading in the market ever day in order to try to generate short term profits. In other words, they are trying to buy a currency and then sell it for just a little bit more money. They are trying to turn a quick profit with this Forex day trading strategy. This is just one of the strategies that can be used.

What Other Strategies Are Used?

Another Forex day trading strategy that is often used is to deploy the use of Forex day trading software to help out the investor. This is software that helps the investor to be able to set up the trades that they want ahead of time. If you program in the trades that you want, then the program will automatically fire off the trades whenever the prices that you specify are hit. This means that you don’t have to worry about monitoring the market at all times. It also means that you won’t have to worry about missing the trade that you have been looking for.

Should Other Strategies Be Deployed?

There are other strategies that can be used in the Forex market. What is important is that each individual investor finds the Forex day trading strategy that works best for them. Each individual can keep trying out different strategies until they find one that works. It is really a matter of trying out new methods. One of the things that you should look into is checking out the news that is coming from other countries. You want to try to figure out what economic policies may come out of those countries that could effect the value of the currencies that the country has. If you are able to correctly predict these trends, then you stand to make yourself a nice profit by just being right.…

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Why You Should Buy Stocks Online

Why You Should Buy Stocks Online

Knowing that you can buy stocks online, you may get confused whether you should follow the trend these days or not. Usually, when you buy a stock you need to talk face-to-face with your broker. But when you buy stock online you can have an option not to do that unless you badly need it. With the help of internet, when you buy stock online you can also have an easy access to information that are very significant for your investment. This information is available when you need it and all good online brokers provide you with a lot of very valuable information as part of their service to you. This information is often invaluable you have to decide when to sell your existing stocks or when to buy a stock.

You should buy stocks online because of its uncomplicated and user-friendly process. It is almost as simple as ordering your favorite pizza over the internet. Definitely, it will save much of your time, especially if you are the type of person that has so many things to do each day. It is just a click way, very easy.

You should buy stocks online since it can give you an option to limit your stock orders, which definitely the market stock can’t give you. You can specify the amount you are willing to buy a stock, means you can have the stock in term of your price. It only means you are in control of the transactions.

Another thing, you should buy stocks online because you can select the duration of your orders. Yes, one can run his order for weeks or months until he decided to cancel it. You are always in complete control of your investment. Unlike less liquid investments (like real estate) you can buy and sell stocks at the drop of a hat. Doing it online makes it even faster, so you never have to hold on to a bad investment for too long.…