The Frontiers Of Trading

By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest Compound Interest. As an investor, time can be your best friend once you learn how to use compound interest to your advantage. This is an important aspect of any trading system. Compounding your profits can make you very wealthy and help you increase your investment profits exponentially.  The drawback of this technique is that you may also increase the risk. By reinvesting your gains you may multiply your profits but you can also suddenly lose everything.    I will explain here how compounding can make you wealthy. Also I will describe some of the risks involved. This strategy may be suitable for some investors, but not for all. It is more like a long term strategy. Most traders or investo

By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest Money Management. This is one of the most important aspects of a good trading system. Even if your market forecasts are accurate, you may still not be profitable in the long run unless you implement proper money management techniques.  Money management refers to how you manage your trading capital. It has to do with how much money you invest on each trade. Also, how much do you expect to make on each trade compared to how much you are risking. Furthermore, you can also use different kinds of orders that allow you to manage your trades automatically like stop loss, limit order and trailing stop. In my opinion the two more important aspects of money management are position sizing and expectan

By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest Fundamental analysis. Forex fundamental analysis strategies consist on studying economic factors of a country to forecast the future value of its currency. This includes, but it is not limited to: economic condition, monetary policy, etc. Fundamental analysis focuses on studying economic, social and political factors that drive supply and demand. Some important indicators are interest rates, inflation and unemployment. Political decisions are also important. Bellow you can find some of the most important fundamental analysis indicators and their definition. You can learn more about these indicators and how they are used on www.investopedia.com. Producer Price Index - PPI A family of indexes

By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest Technical Analysis. Unless you are new to trading you probably know already that technical analysis is a method of forecasting future price movement of commodities, securities, etc (in this case currencies) based on chart analysis, pattern formations, technical indicators, etc. Forex can be traded technically and in my opinion it is quiet predictable.  No trading strategy will work 100% of the time. That's why you need proper money management techniques. Anyway, technical analysis is important to determine where the price of the currencies is going, also when to enter and exit positions. There are different technical analysis techniques that you can implement to your trading strategies.

By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest What is Forex? The word Forex is an acronym for The Forex Exchange Market. This is the most liquid market on the world where you can trade or exchange one currency for another. For example, if you think that the Euro will appreciate in value and you have US dollars, you can trade the dollars for the Euros. If you are right and the Euro appreciates in value in relationship with the dollars, then you can close the position realizing a profit. That's the basic idea behind the Spot Forex Market. This is an interbank system which means that it is not centralized. There is no central exchange where currencies are traded. It is a global market. You can trade Forex online 24 hours per day, 6 da

By:  Ivan Cavric As you read forex charts, remember that the two fundamental approaches for online forex trading: fundamental analysis and technical analysis. Fundamental analysis doesn’t rely on forex charts. It scrutinizes political and economic indicators to determine trades. Charts here are deployed as used as a secondary reference. Technical analysis on the other hand, attempts to predict price swings by analysis of historical price activity. Those who use technical analysis study the relationship between price and time. The most actively traded pair of currencies is the Euro and the US dollar, so we will use them in our example. The dollar is on the right hand side of the chart and the Euro is on the left hand side. The currencies are expressed in relationship to each other in pairing. Forex charges will always display how much of the currency on the right hand side is necessary to buy a unit of the currency on the left side. Looking at the typical EU-USD, chart you will notice t