The Best Forex Trading Programs

 Forex  trading programs are quickly growing in popularity in  forex  trading circles. This is because they enable you to trade both more accurately and timely.

The first way in which  forex  trading programs are superior comes in the form of timing. As the  forex   market  keeps much longer  hours  than the traditional stock exchange, you’ve got to be able to keep on top of the market at all times. While this can be next to impossible,  forex  trading programs were designed to take most of the weight off of your shoulders. Most of them are sophisticated enough to trade on your behalf and in your best interest at all times.

For example, say you’re invested in a trade, and the market fluctuates out of your favor and you stand to begin to lose a great deal of money. At the earliest indication, the  forex  trading program senses this and trades away for you, thus minimizing your losses. This idea of the program watching over the  market  brings me to the next major advantage of  forex  trading programs.

Quite possibly the most important way in which  forex  trading programs can make you more successful in the  forex   market  comes in the form of accuracy. The best  forex  trading programs come with tip indicators built in. These keep a constant and tireless watch over the market at all times. Instead of relying on guesswork, they make use of complex, calculated, and most importantly tested algorithms to form their tips.

Most of these programs are tested months or even years in advance to assure that they’re as precise as possible before being released and made available to traders. Most traders swear by the predictions which they receive from these programs. If you want the most accurate and precise information affecting your trades day in and day out, there is honestly no substitute for  forex  trading programs.

Basics of Foreign Exchange

Foreign exchange market is the largest financial market in the world that trades with currencies of different countries. The amount of foreign currencies that is traded crosses $2 trillion each day. As this is an international Foreign Exchange market, the commodity that is bought and sold in the foreign currency. The foreign exchange market was launched before three decades and as on date this is the biggest liquid financial market that deals more than 100 hundred times of stocks dealt in the New York stock exchange.

The best market to invest that has no competition and external control is the foreign currency exchange market. The market exists purely based on speculation. There is no central exchange to conduct trading and trading occurs between two big banks and this inter-bank market is called the over counter market. The trade is carried out using telephone or internet in this decade. The major currency exchange trading centers are Sydney, London, Tokyo, New York and Frank Furt. The foreign exchange market is a 24 hours market running on all working days.

The major advantage of currency exchange market is the high level of liquidity. This comes from the big financial institutions and governments taking part in the trading. The banks that are involved offer cash flow to the investors, retailers and to many multi national companies.

There is no commission for trading your currencies. You need not pay any part of your profit to your foreign exchange broker who helps you in currency exchange. You can keep 1005 of the profit you gain form the changing currency conversion rates. This has made currency exchange, an attractive business opportunity for those who want to make hot cash.

The foreign currency exchange market is always stable. There is always a profit potential irrespective of the rise or fall of any currency. If a currency of a particular country falls, then some other currency will raise in value. So you can operate without worrying about the ups and downs. The market will never go down as the commodities are foreign currencies.

As the industry is always awake you can start and end your trade at any time irrespective of your time zone. With the changing currency conversion rates, the currency exchange market gives you the opportunity to make bigger profits with a lower money investment. The transactions that involve huge money can also be completed in few seconds and the liquidity in the market is high.

Your profit depends on the currency conversion rates. You have to buy a currency say Euro, by paying another currency say USD. You have to buy Euro when you expect the value of Euro to rise in the near future. Now you have to follow the exchange rates. When you find an optimum value for Euro to make profit, you can now sell your euros for making a profit. The change and the fluctuation in the currency exchange market is frequent and rapid and you have to closely watch the currency conversion rates and trade at the appropriate time to make profit.

Starting Out in Forex Trading

The foreign-exchange (“ forex ” or “FX”)  market  is the place where currencies are traded. The  forex   market  is the largest, most liquid market in the world with an average traded value that exceeds $1.8 trillion per day.

The  forex   market  is open 24  hours  a day, five days a week, with currencies being traded worldwide among the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney – spanning most time zones. There is no central marketplace for currency exchange. Trade is conducted over-the-counter.

The  forex  has been the domain of government central banks, as well as commercial and investment banks. It has also been used for hedge funds by large international corporations. The rules were revised during the 1980s to allow smaller investors to participate using margin accounts. It is because of these margin accounts that  forex  trading has become so popular. When you consider that a 100:1 margin account allows you to control $100,000 of currency for just $1000, this has created an excellent opportunity for making a great deal of money. Of course, such leverage is also a recipe for losing a great deal if you are not properly prepared. Naturally this course is designed to help you become prepared.

 FOREX  traders usually require a broker to handle transactions. Most brokers are reputable and are associated with large financial institutions such as banks.

Like anything else, you should shop around for the best bang for the buck when looking for a broker. Here are some things you should look for when considering a broker:

A Respectable Quality Institution –  Forex  brokers are usually associated with lending institutions or large banks. The reason for this is that such institutions have the large amount of capital needed in order to provide the leverage needed. Look for brokers that are registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). This information should be provided on the broker’s webpage or its parent company page.

Lowest Spreads –  Forex  brokers do not charge a commission such as Futures brokers do. They make their money from the spread, which is calculated in “pips”. The difference between what you can buy the currency for and what you can sell it for is the spread. PIP stands for Price Interest Point. It is the increment in which the currency pair will trade. For example, if you buy the EUR/USD for 1.2015 and it goes up to 1.2016, it has gone up 1 pip. When looking for a  forex  broker, find one that offers you the lowest spread for the currency pairs you plan on trading.

Types of Accounts – No two traders are alike. Some have a vast amount of money while others have smaller accounts in which to trade. Look for a  forex  broker that provides you with some account choices. For example, traders with small accounts or just learning how to trade in the  forex  should look for what many brokers call the “Mini Account”. This type of account requires a small minimum to open, say, $250. This account allows for a high amount of leverage that you will need in order to trade with so little amount of money. In such an account, you can trade with a $1 pip, as opposed to $10 or higher pip value. Standard accounts have higher minimum balance requirements and allow for trading at different leverages. Read carefully the different types of accounts being offered.

Available Leverages – Leverage is important in  forex  because the price deviations (how you make your money) are merely fractions of a cent. Leverage is the ratio between the capital that is available and actual capital. The leverage depends on what the broker is willing to lend you. For instance, 100:1 ratio means that for every 1 dollar of your money (actual capital) the broker will lend you $100 (available capital). Some brokers offer 250:1 and even 300:1 ratios. The higher the ratio, the more leverage (bang for the buck) you will have. Keep in mind that a high ratio not only gives you more bang for your dollar but it also increases your risk of a margin call. Lower ratio will lower your risk of a margin call, but it will also lower the power of your dollar.

Extra Goodies (Tools, Research) – To get your business brokers provide various free tools and information resources to their customers. You will want to find a broker that will provide you with free real-time price charts as well as an excellent online trading platform. One very popular platform and the one I currently use is FX Trading Station. But shop around and see what is being offered.

The best thing you can do is to ask around on various trading forums where  forex  traders haunt. This is because there does not exist any blacklist for those brokers that may commit acts of sniping or hunting, which is prematurely buying or selling near preset price points in order to increase profits. Also, make sure that they are happy with the broker’s margin rules. Some may be too strict and get you out when the market moves against you although you still have enough capital to hold the position. The position may turn out in your favor had you not been exited by the broker. This can be costly. So ask around!

Trading Forex Automatically – Can it Be Done?

The main reason most people fail in  forex  trading is because they are human and suffer from such human emotions as anger, frustration and greed. Plus, as humans we suffer from tiredness, as the  forex   market  runs 24  hours  a day, this is quite reasonable, so the idea of an automated computer trading system is quite a realistic notion.

One of the most popular automated systems is the  Forex  Funnel, with this you do get a 60 day money back guarantee, so if it doesn’t work, send it back. This software will keep a close eye on the 24 hour market for you, if it sees a profitable trend going bad, it will sell for you. If it sees a trend start to become profitable it will buy into it for you, depending on how much money you have given it to work with. This system won’t make you rich overnight, neither will you lose everything overnight, it trades in the low risk/low rewards markets. Making a small but steady profit every day.

Another automated  forex  trading system is called  Forex  Tracer. Yes, like them all, it can make small losses on your part, they all do. It will however, make you a steady but small income every month. None of these computer systems will turn you into a millionaire overnight, if they say they can, you can be sure, they are a scam. The only way they could do that is if they could tell the future, which they can not. After all,  forex  trading is simply gambling on the foreign exchange  market .

All that these  forex  trading systems do is help you to cut your losses quicker, and stop you from making the mistakes that you as a human are so very likely to make. Because you are human.

Forex Vs Share Trading

Ask anyone and they will tell you they are familiar with the buying and selling of stocks. Buying and selling of stocks is also called share trading because stocks are issued as shares. People buy and sell multiples of these shares. Stock trading is as old as the United States. Companies have used the issuance of stocks in order to raise money to pay for expansion or to expand into new markets. If you have ever worked a day in your life, chances are you have worked for a company that has stock available for trade.

On the other hand most people are not familiar with the  Forex   market . They may be familiar with the name  Forex  because of all the recent attention on how much money anyone can make trading on this  market .  Forex  has only been open to the general public for the past 50 years which is why it has less brand recognition with the general public.  Forex  does not trade stocks but instead trades currencies.

Both share trading and  Forex  trading have things in common. There are also some differences between the two. Let me discuss the major differences between the two investment strategies.

Access to Market

Share trading occurs through listed stock markets such as the New York Stock Exchange. On the other hand  Forex  does not have a listing  market  so it is considered over the counter trading. Because share trading occurs through the listing market there are limits on when you have access to the market. The New York Stock Exchange is only open from 9:30 AM EST to 4:00 PM EST. The  Forex   market  is open 24  hours  a day. You can place trades with  Forex  at any time of the day or night that you want. With share trading you are restricted to when you have access to the market to buy or sell shares.

Short Term vs Long Term

Share trading is usually considered a long term investment. The stock market is not very volatile so it is very challenging to make a quick profit in an hour or a day. In order to make a profit on the store market you usually have to hold on to an investment for a year or more. The  Forex   market  is very volatile. Most trades are bought and sold in less than 24 hours.  Forex  trading is considered a short term investment.

Location

The New York Stock Exchange and the London Stock Market are physical locations. All trades are completed through this location.  Forex  does not have a central location. Trades are place all over the world.

Liquidity

The share market is considered not to be very liquid. You are limited to the time you can access the market which adds to it not being a very liquid market. Purchasing stock shares require you to have the full amount of money available. In order to sell you need to find a willing buyer.  Forex  trades do not have the requirement to have the entire funds available. Since  Forex  trades are made 24  hours  a day they have a high level of liquidity.

There are many differences between  Forex  and share trading.