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Basically, you will want to find a broker who will give you everything that you need to succeed. A Variety of Leverage Options Leverage is a key necessity in FOREX trading because the price deviations the sources of profit are just set at mere fractions of a cent. Leverage, which is expressed as a ratio between total capitals that is available to actual capital, which is the amount of money a broker will lend you for trading.

Many brokerage firms will offer you as much as Of course, you need to remember that lower leverage also means lower risk of a margin call, but it also means that you will get a lower bang for your buck and vice- versa.

Basically if you have limited capital, you need to make sure that your broker offers high leverage. If capital is not a problem, you can rest assured that any broker that has a wide variety of leverage options should suffice. A variety of options lets you vary the amount of risk you are willing to take.

For example, less leverage and therefore less risk may be preferable if you are dealing with highly volatile exotic currency pairs. This offers you a high amount of leverage which you need in order to make money with so little initial capital. Lastly, there are premium accounts, which often require significant amounts of capital to get you started.

It also lets you use different amounts of leverage and often offer additional tools and services. You will need to make sure that the broker you choose has the right leverage, tools, and services that are relevant to the amount of capital that you are able to work with. For example brokers who are prone to prematurely buying or selling near preset points commonly referred to as sniping and hunting are trifling things that are committed by brokers who only seek to increase profits.

Obviously, no broker would actually admit to doing this, but there are ways to know if a broker has committed this offense. Unfortunately, the only way that you can really determine which brokers do this and which brokers don't is to talk to fellow traders. There is no actual list or organization that reports this kind of activity.

The point here is that you have to talk to others in person or visit online discussion forums to find out who is an honest broker. Strict Margin Rules When you are trading with borrowed money, your broker should have a say in how much risk you are able to take.

With this in mind, your broker can buy or sell at its discretion, which can be a really bad thing for you. Let's just say that you have a margin account, and your position takes a headlong nosedive before it begins to rebound to all-time highs. Even if you have enough cash to cover it, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you dearly. You talk to others in person or visit online discussion forums to find out who the honest brokers are.

Signing up for a FOREX account is a great deal like getting an equity account. The only major difference is that, for FOREX accounts, you are obligated to sign a margin agreement. Once you sign up, all you have to do is fund your account and you'll be ready to trade right away. However, technical analysis is by far the most common strategy that is used by individual FOREX traders.

Here is a brief overview of both forms of analysis and how they directly apply to forex trading: Fundamental Analysis If you think it's hard enough to value one company, you should try valuing a whole country instead.

Fundamental analysis in the forex market is often an extremely difficult one, and it's usually used only as a means to predict long-term trends. However it is important to mention that some traders do trade short term strictly on news releases. There are a lot of different fundamental indicators of the currency values released at many different times.

There are also quite a variety of meetings where you can get some quotes and commentary that can affect markets just as much as any report. These meetings are often brought out to discuss any interest rates, inflation, and other issues that have the ability to affect currency values. Two important meetings that you have to watch out for are the Federal Open Market Committee and Humphrey Hawkins Hearings. Just by reading the reports and examining the commentary, it can help FOREX fundamental analysts to get a better understanding of any and all long-term market trends and also to allow short-term traders to be able to profit from extraordinary happenings.

If you do decide to follow a fundamental strategy, you will want to be sure to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also be able to provide you with real-time access to this kind of information.

Technical Analysis Just like their counterparts in the equity markets, technical analysts of the FOREX trading market analyze price trends. The only real difference between technical analysis in FOREX and technical analysis in equities is the time frame that is involved in that FOREX markets are open 24 hours a day. Because of this, some forms of technical analysis that factor in time have to be modified so that they can work with the 24 hour FOREX market.

The most common method for them is combining the Fibonacci studies with Elliott Waves. Others prefer to create trading systems in an effort to repeatedly locate similar buying and selling conditions. Some people will focus on one particular study or calculation, while still some others use broad spectrum analysis as a means of determining their trades.

Most experts would likely suggest that you try using a combination of both fundamental and technical analysis, with which you can make long-term projections and also determine entry and exit points.

Of course, in the end, it is the individual trader who has to decide what works best for him. When you are ready to get started in the FOREX market, you should open a demo account and paper trade so that you can practice until you can make a consistent profit. Many people who fail have a tendency to jump into the FOREX market and quickly lose a lot of money because of a lack of experience. It is important to take your time and learn to trade properly before you start committing capital.

You also need to be able to trade without emotion. You must always set your stop-loss and take-profit points to execute automatically, and don't change them unless you absolutely have to. Make your decisions and stick to them. Otherwise you will drive yourself and your brokers crazy. You should also realize that you need to follow the trends.

If you go against the trend, you are just messing with your money because the FOREX market tends to trend more often than anything else and you will have a higher chance of success in trading with the trend. The FOREX market is the largest market in the world, and every day people are becoming increasingly interested in it. Want to Spot Trends BEFORE They Form? When you make a trade, you have to buy one currency and sell another at the same time. For example, when you think the price of the Euro is going to rise against the US Dollar.

In order for you to enter a trade, you will have to buy Euros and sell US Dollars. If you want to leave the trade, you will have to sell Euros and buy back US Dollars. These days just about every forex broker is claiming to have the tightest spreads in the industry. But marketing does have the ability to be deceiving. The topic of spreads in the forex spot market is very complicated and often not easy to understand.

However, nothing affects your trading profitability more. Spreads are the biggest factor in your trading profits next to skill. First of all in order to understand the spread, you need to know what it is. A spread is the difference between the ask price the price you buy at and the bid price the price you sell at that is quoted in the pips. If the quote is 1. The spread is how brokers make their money.

Wider spreads will result in a higher asking price and a lower bid price. The spread helps to compensate for the market maker for taking on risk from the time it starts a client trade to when the broker's net exposure is hedged which could possibly be at a different price.

Spreads are important because they affect the return on your trading strategy in a big way. As a trader, your sole interest is buying low and selling high like futures and commodities trading. Wider spreads means buying higher and having to sell lower.

The tighter the spread is the better things are going to be for you. However tight spreads are only meaningful when they are paired up with good execution. Quality of execution will decide whether you actually receive tight spreads. A good example of this is when your screen shows a tight spread, but your trade is filled a few pips to your disadvantage or is mysteriously rejected. When this occurs repeatedly, it means that your broker is showing tight spreads but is effectively delivering wider spreads.

Rejected trades, delayed execution, slipping, and stop-hunting are strategies that some brokers use to get rid of the promise of tight spreads.

Spreads should always be considered in conjunction with depth of book. Oddly enough, when it comes to economies of scale, forex doesn't even act like most other markets. On the inter-bank market, for example; the larger the ticket size, the larger the spread is.

In many cases, the tight spread that is offered applies only to a capped trade sizes that are very inadequate for most of the common trading strategies. This certainly makes comparing brokers much more difficult. Some brokers actually offer fixed spreads that are guaranteed to remain the same regardless of market liquidity. But since fixed spreads are traditionally higher than average variable spreads, you are paying an insurance premium during most of the trading day so that you can get protection from short-term volatility.

Other brokers offer traders variable spreads depending on market liquidity. Spreads are tighter when there is good market liquidity but they will widen as liquidity dries up. When it comes to choosing between fixed and variable rates, the choice depends on your individual trading pattern.

If you trade primarily on news announcements that you hear, you may be better off with fixed spreads. But only if quality of execution is good. Some brokers have different spreads for different clients based on their accounts. For example; those clients that have larger accounts or those who make larger trades may receive tighter spreads, while the clients that are referred by an introducing broker might receive wider spreads in order to cover the costs of the referral.

Some offer the same spreads to everyone. Problems can come up when you are trying to learn about a company's spread policy because this information, along with information on trade execution and order-book depth is rather difficult to get.

Because of this, many traders get caught up in all of the promises they hear, and take a broker's words at face value.

This can be dangerous. The only real way to find out is to try out various brokers or talk to those who have. Take the time to shop around. You need experience, fortitude, capital and, above all, a solid trading system. However, for the average beginner and those who perhaps are losing their focus because of significant draw-downs, keeping things simple can help to introduce much needed focus into your trading.

To that end, here are some tips that you can use for trading that can help you get a handle on these exciting markets: 1. Never add to a position that is losing. Always determine a stop and a profit objective before you start entering a trade. Place stops that are based on market information, and not your account balance. Remember the power of a position. You should never make a market judgment when you have a position. Your decision to exit a trade means that you are able to perceive changing circumstances.

In a Bull market, you never want to sell a dull market, in Bear market, you should certainly never buy a dull market. There are times, due to a lack of liquidity, or excessive volatility, when you should not trade at all. Trading systems that work in an up market may not work in a down market.

It is good to know this and remember it. There are at least three types of markets like up trending, range bound, and down trading, and you should have a different trading strategy for each.

Up market and down market patterns are ALWAYS there, and it is only that one is always more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped repeatedly. Select trades that move along with the trend.

A buy signal that fails is really just a sell signal. A sell signal that fails is a buy signal. It's always easier to enter a losing trade. During the blowout stage of the market, up or down, the risk managers are usually issuing margin call position liquidation orders. They don't generally check the screen for overbought or oversold; they just keep issuing liquidation orders. It is best to make sure that you don't stand in the way.

Buy the news that you hear, sell the factual news. News is only important when the market doesn't react in the direction of the news. It helps for you to read today's paper tomorrow. You should never enter a new trade in the direction of a gap. Never let the market make you make a trade. The first and last tick are always the most expensive.

Get in late and out early. When everyone else is in, it's time for you to get out. Never trade when you are sick. You should only change your unit of trading under a plan of attained goals. You should also have a plan for reducing size when your trading is cold or market volume is down. Confidence is a bad thing.

Remember, you really don't know anything unless you are a broker. You need to expect the unexpected. Always know your position and exit your trade immediately whenever you feel uneasy. Measure yourself by profitable consecutive days and not by individual trades. The best way to break a streak of consecutive loses is to not trade for a day. At the same time, however, stick to your stop-loss rules and money-management strategy, and don't think that luck has anything to do with it.

Your trading system may simply be having an optimal time-period. Don't turn three losing trades in a row into six in a row. Sticking in when you are loosing is just silly. Scalpers reduce the number of variables effecting market risk by being in a position only for a few seconds.

Day traders reduce market risk by being in trades for minutes. If you convert a scalp or day trade into a position trade, technically you did not consider the risks of the trade properly. You should not worry about a missed opportunity.

There is always another one just around the corner. If you look for secrets in the market you will only find things that no one cares about. It is better to use the tools, which will be covered in the next section. Never ask for someone else's opinion, they probably did not do as much homework as you did anyways. When the market is going up, you should say it aloud. When the market is going down, you want to say that aloud too. Successful day trading requires flexibility. You have to do your homework so that you can understand the full potential for both sides of the market.

This will allow you to make your trades based on what the market is doing at the time of the trade. When you make a mistake of discipline, whine like a fool to anyone that will listen. Wearing ashes and sack cloth may help you to extend the time before you do it again. If you whined or got fidgety while you read this list, then you share two obvious characteristics with many other traders: A.

You have traded long enough to recognize that you not the market make mistakes, and you try to overcome them. This fact is awkward, you have become part of the market and you can never leave. No matter where life takes you, you will always check the market and you will also always want to continue being a part of it.

Many beginners look for trades that flow in any direction. While forex trading easily permits bi-directional trading, trading in the direction of the trend improves your odds over the long run.

You should have at least two accounts. One real account and the other a demo account. Learning doesn't stop when trading real dollars begins. Keep the demo account and use it to test any alternative trades etc. For example, you can shadow your real trades with identical ones in your demo account, but you will want to widen your stops in the demo in an effort to see if you're being too conservative.

You have to stop looking for leading indicators because there aren't any. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be telling you about it. While you are trading at and minute time increments, it takes a great deal of dexterity. Don't trade the time frame that is offered. Trade the pattern instead.

Reversal patterns, hesitation patterns and breakout patterns show up a lot. Learn to look for the pattern in any time frame. If you have the right amount of money, trading two lots is safer than just trading one. Trading three lots is safer than two etc. Trading is a big pile of emotions, technical analysis and money management. One lot alone makes it difficult to weigh these elements in deciding to enter or exit.

Extreme trading can be the most conservative trading when you think about it. Trading at the extremes increases the odds that you have chosen the right direction. Follow the Upside Down Rule. If you can turn a chart upside down and it still looks the same, avoid it all together.

Don't keep count of your profits in your first 20 trades. Keep track of the percentage of wins instead. Once you know you can pick direction, profits can be increased with multi-plot trading and by using variations in your stops. In other words, now is the time to get serious about your personal money management.

If you can apply these rules consistently, and with the right amount of discipline, you will be well on the way to being a profitable trader. The following are rules that can significantly improve your chances of success if they are understood, practiced, and implemented consistently in your trading. These rules have been learned the hard way, mostly through trial-and-error, and the inevitable mistakes that everyone makes when they start a trading business.

Set up and Implement specific goals and objectives Few things are more important to your trading success than having set specific goals and objectives for what you are trying to achieve. It is amazing to me how often we hit our targets, meet our objectives, and reach our goals best when we speak aloud and write them down.

For any business to be successful it must have measurable objectives that you are actually able to achievable. In trading, the primary objective is obviously to make money, but it is important to have other objectives that are not strictly cash-related.

If you know what you are trying to gain in your trading, and when you are trying to achieve it, the whole of your efforts will be more focused on meeting your objectives. This also helps to guide you to only pay attention to things you really want to achieve with your time and resources that you have available.

This will also give you a way that you can effectively measure the success and progress of your trading strategy. Generally traders who have well-defined objectives will be much more successful than those that do not have pre-defined goals. Consistency and discipline In order for you to be able to realize the full potential of your trading systems it is very important that you take every trading entry, adjust every stop, and close out every trade when your pre-defined trading system says you should.

This takes an extreme amount of confidence in your trading systems, good and reliable technology, and the unwavering discipline to stick to your trading plan no matter what happens. Let your profits run This rule is undoubtedly the key to being a successful trader. It is in these three simple words however that are easier said than done. When we get a profitable trade going it is our natural fear of losing the unrealized cash starts and we truly want to close it out now and quit while we are ahead.

It is our ability to let the huge winners become huge. This is what determines how we will perform overall during the course of the year. In fact, we should be adding to a winner and widening stops rather than trying to figure out how tight our stops can be to capture the largest amount of profit. It is very important that your management rules leave room for large winning trades, and that the rules are pre-defined and understood before you place the trade in the first place.

This will allow you to stick to your rules when you do get the big winner. Cut your losses short This is actually the sister rule to the one mentioned above, and is usually just as difficult to do even if it is very easy to define. In the same way that profitability comes from a few large winning trades, capital preservation so comes from avoiding the few large losers that the market will see fit to send you each year.

Setting a maximum loss point before you enter the trade so you know ahead of time approximately how much you are risking on this position is pretty straight up. If you have a losing position that is at your maximum loss point, you should just get out right away.

Why would you want to risk any more money on a trade that has already shown itself to be a loser when you could simply close it out accept the loss and move on. This will leave you in a much better place financially and mentally, than holding on to your position and hoping it will go back your way. Even if it did do this, the mental energy and negative feelings from holding the losing position are just not worth it.

this is why you should always stick to your rules and exit a position if it hits your stop point. Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small for you to want to risk more money on. If it actually is a winner disguised as a loser, why not wait until it shows it is a winner before you add to it. Sometimes the trade turns around before it hits your stop and becomes a winner and you can count yourself very lucky if it does.

Sometimes the trade hits your stop loss and then turns around and becomes a winner and you can count yourself unlucky. Whatever happens, it is never worth adding to a loser, hoping that it will eventually be a winner.

The odds of success are just too low to risk more capital in addition to the initial risk. One thing is certain in trading and that is if you lose all your capital you are out of the game indefinitely. Why should you risk so much when you could be prevented from continuing?

There is a useful saying in poker than going all-in works every time but once. It is the same thing in trading. If you risk all of your account on every trade it only takes one loser to wipe you out, so you will be out of the game at some point as it is only a question of time. This is calculated using the size and, the difference between our entry price and our maximum stop price, and the amount of capital that is allocated to the system. With these things combined we are almost certain never to lose all of our trading capital.

In fact, the chance of us hitting our maximum drawdown for the year is extremely low. All trades that you make should be of a size that almost seems pointless to your future fortune. If you are worried about the size of a trade then it is too big and you should use a lower amount immediately. You should trade slowly over a long time with minimal risk, is always preferable to rapidly with too much risk.

Only trade positive expectancy systems If you have a positive expectancy trading system, the only factors that will decide how much money you will make per year are the number of trades the system actually makes, how much capital you allocate to the system, and how accurately you use the trading signals.

If you do not know whether your trading system is positive expectancy then it makes no sense for you to be trading it in the first place.

Expectancy is calculated using the profit or loss on each trade; divided by the initial risk, and then taking the average of this number of a series of trades. Systems that have positive expectancy will make money most of the time and those with negative expectancy will lose money. Successful traders only trade systems when the odds of success are in their favor so that they know that making money is the final result of accurately implementing the system and not just pure luck.

You will want to minimize all of you trading business costs Some trading systems can offer you only marginal profitability, and trading implementation costs commission, spread, and slippage can be the difference between making a profit and making a loss. With the simple availability of modern electronic brokers, and fully-automated trade processing and execution, it is definitely worth the effort in looking for a very low cost way to implement your trading system.

This can be the difference between a system being useable or not. Paying too much for trade implementation is a way to lose money that you can actually avoid. Educate yourself In order for you to be able to compete at the highest level in the trading business and be a successful player, you must be well-educated about what you are doing.

Being well-educated means that you have thoroughly researched and tested your trading ideas and know why your trading system worked in the past and is still working. It means that you understand all the technology and applications that your system needs to perform with accuracy.

It means understanding your goal and objectives and how trading will help you achieve them. It means understanding yourself and how your personality will affect your results.

In order to succeed as a forex trader, you really need to become an expert in your own trading business to understand how it the dots are all connected, when it is broken, and how it can be improved. This takes commitment, hard work, dedication, and more hard work. Avoid trading scared money No one ever made any money trading when they had to do it to pay their bills at the end of the month. Trading is about taking a reasonable amount of risk in order to achieve a good reward.

You should never trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by another income stream or cash reserve. This is how hasty decisions are made. ONLY trade with money you can afford to lose. The best way to start trading Forex profitably is to practice on a demo account with a trading system you can trust.

We recommend using the Easy Forex platform along with the Forex Autopilot Trading System FAPS , which has a consistent win-rate. With small Forex trading losses, you can outlast those times when the market moves against you, and be well positioned for when the trend turns around. The one proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position.

The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. If the maximum loss had been determined, and stuck to, they would not be in this position.

edu no longer supports Internet Explorer. To browse Academia. edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. Foreign exchange, popularly known as 'Forex' or 'FX', is the trade of a single currency for another at a decided trade price on the over-the-counter OTC marketplace. wilson putra. this is something you have looking for when making serious decision about Dollar investment stuff.

Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Forex for Beginners: How to Make Money in Forex Trading Currency Trading Strategies. Rajiswaran Muniandi. Continue Reading Download Free PDF.

Related Papers. How To Trade Dollar. Download Free PDF View PDF. All rights reserved. Table of Contents 1. Making Money in Forex Trading 2. What is Forex Trading 3. How to Control Losses with "Stop Loss" 4. How to Use Forex for Hedging 5. Advantages of Forex Over Other Investment Assets 6. The Basic Forex Trading Strategy 7. Forex Trading Risk Management 8. What You Need to Succeed in Forex 9. Technical Analysis As a Tool for Forex Trading Success Developing a Forex Strategy and Entry and Exit Signals Thousands of people, all over the world, are trading Forex and making tons of money.

Why not you? All you need to start trading Forex is a computer and an Internet connection. You can do it from the comfort of your home, in your spare time without leaving your day job.

And you don't need a large sum of money to start, you can trade initially with a minimal sum, or better off, you can start practicing with a demo account without the need to deposit any money.

Once you consider to start Forex trading, one of the first things you need to do is choose a broker, choosing a reliable broker is the single most critical factor to Forex success. There are dozens of online brokers out there but your best bet is to go with one of the leaders. Here are 2 online brokers that are reputable and are most suitable for beginners and pros alike: 1.

Forex Inc - The best broker for US residents If the link doesn't work, copy and paste the following URL into a browser: www. eToro - accepts worldwide traders except US residents If the link doesn't work, copy and paste the following URL into a browser: www. Now I would strongly encourage you to go and visit these broker's sites right now even if you are not yet decided whether you want to go into Forex trading.

because each provides tons of free education materials, videos and best of all a demo account that allows you to practice Forex trading for free without the need to deposit any money. Simply go to each of these brokers, register for a free demo account and start "trading" - by actually practicing and experiencing it firsthand you'll be able to decide whether Forex trading is for you. In any case, before starting to trade for real, it is advisable that you practice with a demo account.

Once you build some skill and feel more comfortable with the system you can start trading gradually for real money. Now which of the two brokers you should choose? while both are reputable and reliable they do have some differences.

For starter if you are a US resident you should choose Forex Inc, as eToro does not accept US residents. Here is a summary of the specific advantages of each of them. Choose based on your personal preferences: Forex Inc www. It has several different account levels that make it easy for anyone to open an account.

Forex Inc is an excellent broker suitable for beginners and pros alike. eToro www. You can also communicate with other traders including the top traders. What is Forex Trading Foreign exchange, popularly known as 'Forex' or 'FX', is the trade of a single currency for another at a decided trade price on the over-the-counter OTC marketplace. In essence, Forex currency trading is the act of simultaneously purchasing one foreign currency whilst selling another, mainly for the purpose of speculation.

Foreign currency values increase appreciate and drop depreciate towards one another as a result of variety of factors such as economics and geopolitics.

The normal objective of FX traders is to make money from these types of changes in the value of one foreign currency against another by actively speculating on which way foreign exchange rates are likely to turn in the future. In contrast to the majority of financial markets, the OTC over-the-counter currency markets does not have any physical place or main exchange and trades hours every day via a worldwide system of companies, financial institutions and individuals.

Because of this, currency rates are continuously rising and falling in value towards one another, providing numerous trading choices. One of the important elements regarding Forex's popularity is the fact that currency trading markets usually are available hours a day from Sunday evening right through to Friday night.

Buying and selling follows the clock, beginning on Monday morning in Wellington, New Zealand, moving on to Asian trade spearheaded from Tokyo and Singapore, ahead of going to London and concluding on Friday evening in New York.

The fact that prices are available to deal hours daily makes certain that price gapping whenever a price leaps from one level to another with no trading between is less and makes sure that traders could take a position each time they desire, irrespective of time, even though in reality there are particular 'lull' occasions when volumes tend to be below their daily average which could widen market spreads.

Forex is a leveraged or margined item, which means that you are simply required to put in a small percentage of the full value of your position to set a foreign exchange trade.

Because of this, the chance of profit, or loss, from your primary money outlay is considerably greater than in conventional trading. Currencies are designated by three letter symbols. The first currency is the base currency and the second currency is the quote currency.

The price, or rate, that is quoted is the amount of the second currency required to purchase one unit of the first currency. As we see, the US dollar is represented in all currency pairs, thus, if a currency pair contains the US dollar, this pair is considered a major currency pair. Pairs which do not include the US dollar are called cross currency pairs, or cross rates.

One of the most interesting movements in the Forex market involving the British pound took place in the September 16, That day is known as Black Wednesday with the British Pound posting its biggest fall.

the US dollar currency pairs. The general reasons for this "sterling crisis" are said to be the participation of Great Britain in the European currency system with fixed exchange rate corridors; recently passed parliamentary elections; a reduction in the British industrial output; the Bank of England efforts to hold the parity rate for the Deutschemark, as well as a dramatic outflow of investors.

At the same time, due to a profitability slant, the German currency market became more attractive than the British one. All in all, the speculators were rushing to sell pounds for Deutschemarks and for US dollars. As a result, the pound returned to a floating exchange rate. Another intriguing currency pair is the US dollar vs. It is traded most actively during sessions in Asia. From the mid 80's the Yen ratings started rising actively versus the US Dollar.

In the early 90's a prosperous economic development turned into a standstill in Japan, the unemployment increased; earnings and wages slid as well as the living standards of the Japanese population. And from the beginning of the year , this caused bankruptcies of numerous financial organizations in Japan.

As a consequence, the quotes on the Tokyo Stock Exchange collapsed, a Yen devaluation took place, thereafter, a new wave of bankruptcies among manufacturing companies began.

The above started an Asian crisis in the years that led a Yen crash. It resulted in a tumble of the Yen-US dollar pair from Yens for one US dollar to The global economic crisis touched almost all fields of human activities.

Forex currency market was no exception. Though, Forex participants central banks, commercial banks, investment banks, brokers and dealers, pension funds, insurance companies and transnational companies were in a difficult position, the Forex market continues to function successfully, it is a stable and profitable as never before.

The financial crisis of has led to drastic changes in the world's currencies values. During the crisis, the Yen strengthened most of all against all other currencies. Neither the US dollar, nor the euro, but the Yen proved to be the most reliable currency instrument for traders. One of the reasons for such strengthening can be attributed to the fact that traders needed to find a sanctuary amid a monetary chaos. Ask and Bid When traders want to place an order on the Forex market they should be aware of the currency pair as well as the price of this pair.

A Forex market price of a currency pair is denoted by two symbols, Ask and Bid, which have specific digital notations. Consequently, a trader sells the currency standing second. Bid price is the lowest price in the quotation of the currency pair, at which a trader sells the currency standing first in the abbreviation of the currency pair. Respectively, a trader buys the currency standing second. Seem complicated? This means that you can buy 1 euro for 1.

If the closing price dips below the moving average - this a sell signal. And obviously, many have been suckered by the clever marketing and the results are horrific, sometimes financially devastating Meaning that you can literally know nothing and still turn a profit if you follow a good system letter by letter. Investing in the stock market can be a challenge. This gap in pricing must be included in your profit and loss forecasts, and it is how the broker ensures that the platform always makes money. When prices move below the lower Bollinger Band from below - that's a buy signal. It means understanding yourself and how your personality will affect your results.

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