Saturday, July 2, 2011

Trading Psychology


  If the trading mechanism and how to perform forex transactions via the Internet is understood, then we can decide to do real trading.
Things that must be prepared before the start of trading:
a. money
b. time
c. Trading help (help)

In Forex Trading Risk Management


  In trading on the forex trading generally or in particular there is always a risk of loss. Risk can not be avoided but can be eliminated is by way of applying risk management.
Stop Loss and Limit Profit
Create a limit to how far you are willing to bear the losses and make a restriction to realize profits.
Stop Loss function to avoid greater losses if price movements were not as we expected and are likely to further against our expectations. At a certain level where we want to bear the losses and put a stop loss at that level then our position will automatically be closed and that further harm can be prevented.

Technical Analysis

 

This is an analysis of price movement of currencies based on the price movement of the currency itself in the past.
Technical analysis has three basic principles of thought:
1. Market Price Discount Everything
Is the price reflected in the chart or graph has illustrated all the factors that influence the market.

Fundamental Analysis


  Currency transactions can not be separated from our expertise to do the analysis. This analysis is important to determine the direction of movement of the currency. There are two methods of analysis is fundamental analysis and technical analysis.
Fundamental analysis is an analysis based on the circumstances and economic conditions, political and global security. Information and news relating either directly with the economic situation can be used as an indicator of sufficient importance.

Leverage Ratio in Forex

  Types of FOREX margins provided to investors

Leverage ratios for each broker or a bank different from one another, eg 1:50, 1:100, 1:200 or 1:400. With a leverage of 1:100, then the investor can simply provide a fund of $ 1 for purchases of $ 100. For example, if a fund of $ 2,000 then with 1:100 leverage we can buy up to $ 200,000 (200,000 units).

Types of FOREX margins provided to investors

 

FOREX type of margin provided to investors is the margin by a percentage (Percentage Based Margin) and the margin with a certain amount of money (Fixed Amount Margin).

Based Margin Percentage
Percentage based margin lending to invertor certain percentage of transaction value. Margins are given in currency into the base currency in the quotation.
Example kalu by guarantee (collateral) of 1%, then to the transaction in USD? USD $ 100,000 (1 lot) enough investors to provide funds of $ 1,000 (1% x $ 100,000).

FOREX MARGIN TRADING




FOREX trading on margin is a facility provided to investors to make trades exceeds the capital owned. This can happen because investors got a loan from a bank or broker, where the investor can simply provide a bit of money as security (collateral). 
For investors, the use tyrading margin will increase purchasing power because the funds in the transaction exceeds the amount of capital owned. For brokers or lenders, the use of margin trading can increase competeitive advantage.

ADVANTAGES OF FOREX



Forex trading has some advantages compared with the trading of financial products such as stock trading, namely:

24 Hours Trading 

Can be done 24 hours a day, 5 days a week, whenever and wherever we are.

ACTORS IN THE WORLD FOREX




Conducting transactions in the forex market are: the governments of the world, the world's major banks, international companies, hedge funds, currency speculators and individuals. Thus the number of players in the forex market is causing the velocity of money very fast. Transactions that occurred more than 1.9 trillion U.S. dollars every day that makes money can be transferred from one place to another in just seconds. 
Like the stock market players can do forex trading by using brokerage services (Commission house) or do it yourself online via the internet.

What is forex




Other names of Forex (Foreign Exchange) is one of a growing investment options in the world today. Forex Trading is trading exchange foreign currency in international money markets. The forex market is the largest money market in the world .. cool right?