The second part of this article talks about playing one currency pair against another. This is very different from the type of arbitrage discussed in the previous part and in many ways can be more profitable. It takes some time to set it up but it’s based on time-honored concepts of market movement. Find out more about Forex Arbitrage - Part 2...
Arbitrage is basically a way of working one aspect of a market against another, typically to exploit small discrepancies and make small profits. There are several different ways to apply the concept of arbitrage in the Forex market. I’ll talk about two of them here. Learn more about Forex Arbitrage - Making Money When Others Lose...
In the previous post of this series I discussed what a Moving Average is and how it’s calculated. Now let’s get to the good stuff and talk about how to trade using it. Learn more about The Moving Average Chart Indicator - part 2...
Way too much time is spent worrying about leverage. Traders sweat over questions like “Do I have enough leverage?”, “How can I take the most advantage of my leverage?”, and “Do I have too much leverage to be safe?” Not that these aren’t important considerations in their own light, but the truth is a prudent trader never needs to worry about leverage. Learn more about Forex Margin - Why You Shouldn't Care...
As the economic struggles continue and more and more people are trying to find a way to make extra money, there is increasing interest in trading the Forex market. Why? One reason is that Forex trading occurs 24 hours a day, so people who have a day job can trade in the evening, and those with evening jobs can trade during the day. Also, it’s not very expensive to get into Forex. These and other reasons make Forex an attractive opportunity for creating a second income. But it’s not as easy as it sounds. Read on about Teach Yourself Forex Trading...
When considering various forex trading techniques, hedging invariably stirs controversy. Hedging is simply the practice of protecting or covering one trade position with another. The simplest and most common method of forex hedging is to take a short position in a currency pair at the same time as a long one – that is, to buy and sell the same pair at the same time in the same amount. When this is done, the gains of one position (the one which sees favorable price movement) are completely offset by the losses in the other. From that point, the trader cannot incur losses, but she cannot enjoy gains either. Read more about Forex Hedging - When and Why?...
The oldest and most commonly used of all forex indicators is the Moving Average. A moving average provides a modified view of price movement with smaller, less important price actions filtered out. It is designed to let the trader see the underlying trend of prices without being distracted by momentary spikes or chops which often occur. It is easy to understand and to calculate and can be interpreted in several different ways, which we will explore in later installments. Learn more about The Moving Average Chart Indicator
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What is the stochastics indicator?
Stochastics is an oscillating indicator very commonly used in technical analysis for Trading in Forex. George Lane, the developer of this indicator, applied it for the first time in the late year 1950s and early 1960s.
This indicator is measured on a scale from 0% to 100% and determines the deviation of the closing price on the Forex market, compared with normal levels of a period set by the trader. It is important that you know that this indicator is not recommended to be used in trending markets, since it is less effective in this kind of market. Read on about Forex Trading: The Stochastics Indicator...
To many Foreign Exchange traders, few things cause more uneasiness than their choice of an online Forex broker. The prevailing sentiment is that whenever you attempt to make money in Forex you are plying your talent against ‘the market’ and that’s the only enemy you should be thinking about. The truth is, there is a lot more to it; the company who is honoring your trade can greatly affect how successful you are. Learn more about Understanding Retail Forex Brokers
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One area of currency exchange that’s barely discussed, despite how vital it is, is the capital that any financier requires if they want to enter the market. Without capital, you have nothing to invest and so it is inconceivable to expedition into the currency market.
Even when you do have capital though, there is more involved with trading money management than the general public ever think about. For one thing, irrespective of how much capital you have, you must know the way to make that capital work for you else it will just get wasted. More information about Foreign Exchange Trading Money Management...
