The Frontiers Of Trading

  By:  Ivan Cavric According to most marketing campaigns, Forex trading should be a breeze and you should quickly acquire a small fortune in no time at all. Unfortunately, reality does not support this viewpoint and indicates that a far more scientific and structured approach is essential in order to achieve consistent success. In fact, most professionals would advise you similarly in that you need to adjust your thinking about Forex trading so you can elevate it to the same levels used by experts.  To achieve success at Forex, you fundamentally need to complete a sequence of consecutive successful Forex trades as often as possible. What does that really mean and is it difficult? Let us try and answer these questions by considering the following analysis. For each trade you open, consider that you will need to target an achievable profit of 50 pips that may require you to trade, on average, for about 4 hours. In addition, you will then need to obtain a consecutive sequenc...

By:  Ivan Cavric So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.  To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following ...

  By:  Ivan Cavric      As already stated, you will need to be able to use leverage in order to acquire worthwhile profits. However, you must proceed with caution because the poor utilization of leverage could expose your account balance to excessive levels of risk. For instance, some Forex Brokers offer leverage as high as 400:1. Although this sounds impressive and very desirable, you must appreciate how to exploit such a facility accurately before trying to use it in full earnest. Here are some important features about leverage that you must be fully aware of: Always remember that using larger levels of leverage also increases your risks significantly. It is important to monitor your account balance regularly and utilize stop-loss orders on all your open positions in order to restrict your risk exposure. Although using stops is good practice, you must still understand that you will increase your risk exposure significantly if you start leveraging in a reckless...

  By:  Ivan Cavric Once you have opened a  demo account  with a Forex broker, you will then be provided with a generous dummy balance that can be in the region of $50,000. However, you must realize that with such an amount you can readily make profits by utilizing techniques such as excessive leverage and wide stops. In addition, you can trade without the fear of any real financial loss. For instance, if you should lose your entire dummy balance you can easily replace it with another. However, you can use  demo trading  to perform a number of important tasks but you must do so in the correct way.    For example, you can use it to evaluate the performance of your trading strategies, but in doing so you must strive to stimulate live conditions as closely as possible. You can achieve this by using all the features of your trading strategy in exactly the same way as you intend to do when you go live. In contrast, should you just trade your demo accoun...

  by:  Ivan Cavric When I asked several traders about their thoughts about using fundamental analysis as a part of their trading decisions, I have received two opposite responses. RESPONSE of Trader A Fundamentals that you read about are typically useless as the market has already discounted the price. I am looking at:   the long term trend,   the current chart pattern and   identifying a good entry point to buy or to sell. RESPONSE of Trader B I almost always trade on a market view. I don't trade simply on technical information alone. I use technical analysis and it is terrific, but I can't initiate or hold a position unless I understand why the market should move.  There is a great deal of hype attached to technical analysis by some technicians who claim that it predicts the future. Technical analysis tracks the past; it does not predict the future. You have to use your own intelligence to draw conclusions about what the past activity of so...

  By :  Ivan Cavric No, I am not talking about the back up singers to Gladys Knight.  Currencies are traded on a price/ point (pip) system. Each currency pair has its own pip value. When you see a FOREX price quote, you'll see something listed like this: EUR/USD 1.2210/13 Explanation: a) If you want to BUY the EUR/USD ( meaning you BUY EUROS and SELL US$ ) you buy 100,000 EUROS and you SELL 122,130 US$, or in other words you receive 122,130 US$ for 100,000 EUROS. b) If you want to SELL the EUR/USD ( meaning you SELL EUROS and BUY US$ ) you buy 122,100 US$ and sell 100,000 EUROS, or in other words you receive 100,000 EUROS for 122,100 US$. The difference between the bid and the ask price is referred to as the spread. In the example above, the spread is 3 or 3 pips. Since the US dollar is the centerpiece of the FOREX market, it is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies a...

By:  Ivan Cavric Because you can trade from anywhere. From your kitchen table, bedroom, garage or from the nearest Starbuckscoffeehouse ( most of them have wireless Internet connection).   If you have or like to travel, take your laptop with you and you can trade the FOREX anywhere in the world where you have an Internet connection. When you want to start trading the Forex Market nobody is asking you for a diploma, a formal license or a proof of how many hours you have spent studying the Foreign Exchange Market and/or Banking Industry.  FOREX Trading is Economical and Start-up Costs are Low!  You can open an account to trade Forex with as little as US$ 200 at most brokerage firms. The Main Benefits of Trading the FX Spot Market are: YOU don't pay commissions or fees! YOU cantrade 24-hours a day ! YOU can trade up to 400:1 Leverage ! YOU can have FREE Streaming executable Price quotes and live charts! It is important to know the differences between cash FOREX (...

by:  Ivan Cavric More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons: 1) FOREX is the largest financial market in the world. With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility. 2) FOREX is a True 24-hour market. The FOREX Market never sleeps. Trading positions can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is ver...

by:  Ivan Cavric ONE of the best advantages in FOREX Trading is the amount of money you need to place a trade (known as "margin") is all that can be lost !  You have to know, that despite the super-high leverage offered by some Forex brokers up to (400:1); meaning if you put up $ 1000 the broker will allow you to trade like you really have $400.000). Forex trading is still less riskier than Stock or Futures Trading, where you can loose more than you have deposited in your account.  This type of LEVERAGE does NOT EXIST in the equities or futures market  In the Equities or Futures markets, very often, sudden and dramatic moves occur, against which you can’t protect yourself, even by having placed your protective stops.  Your position may be liquidated at a loss, and you’ll be liable for any resulting deficit in the account.  But because of the FX market’s deep liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are almost elimin...

By:  Ivan Cavric If you are new to Forex trading and are planning to purchase a Forex robot then you must take care because when doing so you will be entering the world of the scammer. These individuals are normally failed Forex traders who have not managed to master the complexities of Forex. Consequently, you should realize that many of them have designed their robots by just coding their flawed Forex trading strategies. This is why you will discover that a staggering number of these products fail to live up to their market hype. For instance, if you were to believe all statements contained in the advertisements for these Forex tools then you could conclude that all their buyers would now be very wealthy and retired. However, statistics and reality indicate a depressingly different pattern by showing that over 95% of these products fail. Even the better ones register profits for limited time only. A recent survey recorded the following information concerning the performance of F...

  By:  Ivan Cavric If you do not master the concepts of money management quickly, then you will discover that margin calls will be one of your biggest problems trading. You will find that these distressful events must be avoided as a top priority because they can completely wipe out your account balance. Margin calls occur when price advances so far against your open trading positions that you no longer have sufficient funds left to support your open positions. Such events usually follow after traders begin to over-trade by utilizing too much leverage. Should you experience such catastrophes, then you will have to endure the pain involved in completely re-building your account balance back from scratch. You will find that this is a distressful experience because, after such events, it is normal to    feel totally demoralized. This is the exact situation that many novices end up in time and time again. They scan charts and then think that by doing so they can make qua...