Trading Currency Blog

Locke asked:


I was thinking about converting money to a foreign currency and converting back to american when it would be profitable. I just haven’t really heard of people doing that. Are there laws against it?

ROTELLA

Sacha Tarkovsky asked:


Day trading systems are everywhere, but it is impossible to make money from them - for 2 main reasons which are outlined below.

If you think you can make money day trading, you need to think again and read the facts below.

If you are thinking of buying a day trading system ask any vendor to show you a real track record of profits and you won’t get one.

The reason?

Day trading by its very nature is flawed and does not produce consistent profits over the longer term.

1. How Currencies trend

On a short term daily basis trying to guess the action in a day is similar to flipping a coin. – All short term daily movements are random.

Currency markets reflect the health of the economy overall and trend longer term.

If you look at long term trend following you have reliable data to work with over a period of time but this is not so in day trading.

If you are a technical trader (and most day trading systems are) if you don’t have enough reliable data you cannot attempt to put the odds in your favour.

2. Day trading breaks the fundamental rule of trading:

You have heard it many times: “cut your losses and run your profits” You need to have far bigger profits than losses to make profits longer term.

Sure you can cut your losses but you can’t run your profits.

Generally most readers have more losing trades than winners and if you cut a winning trade in a day session how can you ever make money? – You can’t.

You will simply lose your equity quickly day trading.

So why do traders do it?

Because they believe vendors who make claims and produce hypothetical track records.

Check with these vendors and ask for a track record you won’t get one.

They make money selling you the system and then making more money on kickbacks from brokers (remember transaction costs are higher) on day trading systems.

So broker and vendor win you lose your money that’s the real story of most day traders.

If you want to make money trade longer term and also never buy a system from a vendor unless you get a real-time track record, over at least 3 years – however you will wait a long time for one of those on a day trading system



MCDEVITT

doctormac asked:


tell me the tried ones…4m ur xperience
also..can anybody out of US trade in Their stock/share market?

PELIKAN

inv41 asked:


i live in uganda,Africa and it seems our currency is doing very well against the dollar and this field is not so much ventured into,i need online trading advise for dummies.

CAPPOLA

Jeramy asked:


Alright we all know its a buyers market out there in real estate, I have a business plan set-up and ready to go. The objective is to purchase now, remodel, rent and sell 5-10 years down the road. Now for the question: my business plan has $300K set aside for investments only. The stock market is a little shaky so I was thinking currency trading. Is it possible to make 10% on a monthly basis ($30K monthly) if so are their any firms out there that can help with this six figure investment?

SENEGAL

secretforexsociety asked:

Listen to my news analysis on this US ADP Employment Change and other fundamental economic data to learn how I trade FOREX. The news analysis prior to the announcement is just as important as the trade itself. Studying fundamental FOREX trading is easy - let me show you how

HARRIOTT

zzgorch asked:


I have read a few books on FOREX trading and have been trading with practice accounts successfully. Before I try to do this full time I want to meet with someone who has already taken the plunge to get advice on trading for a living.

MOFFETT

next2loveyou asked:


Im from Malaysia. I’m looking forward in this. But all I heard was phony companies eatin’ up ppl money. Suggestion? Let it be a good one.

FREELS

John asked:


I read everywhere that 95% of forex traders are losing money. Why is that?

I have one of their practice accounts and I have a huge profit so far. Is the practice account really live exchange rates or is it rigged to make you think that you can really make money?

ISAIS

James Theiss asked:


Typically, in the FOREX market, currencies are traded in pairs. For example, Euro/US Dollar or US Dollar/Japanese Yen. Whenever you trade currencies online, you are then, buying one currency and selling another. Currency pairs are abbreviated. The above pairs would be EUR/USD and USD/JPY. The currency on the left is called the base currency, and the one on the right is the cross currency.

The value of a currency pair is determined by the strength or weakness of the base currency in relation to the cross currency. The base currency value is always 1. That means when you see a quote of 1.4652 for the EUR/USD, its value means 1 Euro will buy 1.4652 dollars. The next day you may see a quote for the EUR/USD of 1.4725. If you listen to the financial news you will hear them say something along the lines of, “the Euro gained strength against the Dollar today”, or “the Dollar fell today against the Euro”. In pocketbook english, that simply means it takes more dollars today to buy 1 Euro than yesterday.

Let’s say you have an online FOREX account and bought the EUR/USD yesterday at the above price of 1.4652 and today you sold, or closed out your trade at 1.4725. That would leave a profit of 73 pips. What the heck is a pip you might ask. Well a pip has two definitions but they both mean the same thing, dollar wise at least: Price Interest Point and Percentage In Point. I have never been able to get a clear difference in the definitions no matter who I have asked, and don’t really worry about it anymore because, like I said, they mean the same thing dollar wise.

When you trade currencies online you will have to open an account with a forex dealer. You can open either a standard account or a mini account. In the standard account a pip is worth approximately $10 dollars, and in the mini account it is worth approximately $1 dollar. It used to be the pip was the smallest unit of value in the FOREX market. Today however, many forex dealers quote in tenths of a pip. They have carried out the quote one extra decimal number to give better and more accurate spreads. So the above quote might have read 1.47253, where the 3 is the tenth of a pip. So its value would be either $3 dollars or $.30 cents depending on the type of account you have.

You may have noticed that I said pip values are approximately $1 dollar. That’s because each currency pair has its own pip value. The true value is determined by mathematical formulas and the exchange rate of the currency pair. Some pip values are fixed and others fluctuate slightly as one currency rises or falls in value relative to the other currency in the pair.

Currency trades are made in fixed dollar amounts called lots. One lot in a standard account is equal to $1000, which controls $100,000. One lot in the mini account is equal to $100, and controls $10,000. Both standard and mini accounts typically have a 1% margin which allows the FOREX trader 100 to 1 leverage on their investment dollars.

If you trade currencies online, the ultimate goal is to capture as many pips as you can, and not get bogged down in the details of what the exact value of each currency pair is. Unless you are interested in becoming an economist or some such thing, the information presented here is more than enough to let you get on with putting as many pips in your account as possible.



ALEN