Title: Great Tips For Profitable Forex Trading

Word Count:
647

Summary:
Here are some tips to help you start trading Forex profitably:

There’s so much information about Forex trading online that it’s understandable for the novice trader to feel overwhelmed. Here are some guidelines on how to get started in the Forex market.

First of all, study. Read everything you can find on the basics of the Forex market, starting with these articles and continuing with whatever else you can find. With all the free information about the Forex market curre…

Keywords:
forex,forex software,forex trading software,forex tips,forex broker,forex pips,

Article Body:
Here are some tips to help you start trading Forex profitably:

There’s so much information about Forex trading online that it’s understandable for the novice trader to feel overwhelmed. Here are some guidelines on how to get started in the Forex market.

First of all, study. Read everything you can find on the basics of the Forex market, starting with these articles and continuing with whatever else you can find. With all the free information about the Forex market currently available online, you shouldn’t have to purchase anything at this stage.

When the data makes sense to you, choose a broker. This decision should be based on your trading needs. If money is going to be tight, find a broker that offers a micro account, so you don’t blow your entire trading budget in the first week.

Also, make certain there are no hidden fees. If you’re trading on a small account, it would be inconvenient, to say the least, if your entire monthly profit was eaten up by a maintenance charge.

When you’ve found the perfect brokerage, open a demo account with them. This gives you access to their live feed, with up-to-the-second price quotes and charts and your choice of indicators, and his economic calendar and knowledge base.

Of course, with all this fresh information, you’ll want to read it, too. While you’re studying, get to know the brokerage’s online trading platform. You should be able to open the chart of the currency pair that interests you, add and remove indicators, change the time frame of the chart and the parameters of the indicators, and use the graphic interface to draw trend lines. You should also be able to open market and entry orders, add and change stops and limits, manage a trailing stop, and close a trade quickly should the market be moving against you.

Then paper trade using the technique of your choice. Pick one currency pair for in-depth study; many people choose the EUR/USD or GBP/USD, because their volatility creates a lot of trading opportunities. But be aware that the best trading opportunities will be during the hours that market is open; for the European markets, that’s five to seven hours before the United States, depending upon your time zone. Getting up at three in the morning to watch charts can get old fast, especially with a job or family. If that’s the case, consider working with the USD/JPY, the Japanese yen, as Tokyo’s trading hours begin during our evening.

Watch the chart of your selected currency pair for the parameters that signal a trade using your technique. Remember to start with the long-term charts before moving to the short-term. When it seems right to you, enter the trade.

Realize up front that paper trading doesn’t involve that “Yikes!” feeling you get when real money is involved. In that sense, it’s not realistic, but it will teach you the mechanics of working in the Forex market.

Don’t quit paper trading until you reach the number of pips you’ve set as your goal more often than not. This is a very important step; if you quit paper trading too soon, you won’t know enough to trade successfully in the “real world” of the Forex market.

When you do deposit funds into your brokerage account and begin trading with real money, start small to give yourself a chance to adjust to that added stress. Don’t increase the stakes by adding additional lots or by stepping up to a larger account until you’ve learned to adjust for your emotions and again become an efficient trader.

When you feel comfortable with these simpler techniques, go on to study Fibonacci retracements, Bollinger bands, candlestick chart patterns, and the Elliott wave theory.

Congratulations! You’re there!

Title: Sensex – Stock Market Simulation

Word Count:
519

Summary:
Why play the stockt market game.NASDAQ, Dow Jones, BSE & NSE; Do they ring any bell? They surely must have. Not every one knows what the color of money is, but what people do know is they want to feel more money and see more money.

Keywords:
sensex,stock market game, sensex game, stock market simulator, stock trading game, Investing game, online free stock game, online stock game, free sensex game, stock game, learn about stock market

Article Body:
NASDAQ, Dow Jones, BSE & NSE; Do they ring any bell? They surely must have. Not every one knows what the color of money is, but what people do know is they want to feel more money and see more money.

Another well known fact is that the ever increasing number of the average human being would never want to jeopardize his money, which for him, is the sole means of existence. In the end, it is the human craving for more that makes him succumb to his urge and makes him take a plunge.

The only thing that makes the average investor lose out, is his inexperience. The Raging Bull lures many new people into its arena, but little do they realize what’s in store for them. The market trends are tough to gauge. No one can ever be sure how high or low will stocks leap! Everything on earth has a risk involved, so does this market. We can’t live with it but we can work around it.

Imagine a scenario where you as an amateur investor decide to take a dip. Based on a few tips from a few places, you make your pick. The possibility is that you might hit the nail, or may be you might get nailed. Every player who is a benchmark, be it a game, trade, business (depends on whatever you cal it) has had some level of practice and has learnt things the hard way. People have lost a lot of hope, money and many other things trying to figure out the market. They had to do it the hard way because they didn’t have a place to hone their skills. A place where they could learn tricks of the trade, where they could make an investment without the fear of losing anything and at the same time, learn a lot more than the others.

But the question still remains! Would there be such a place. Is it one of those wonderland parties that people always think about and never find? Well!! Not this time. This time round all you investors are in for a good time. It fills me with pride to present to you the game of your lifetime. The SenSex Simulation!! This game is an assortment of all that I have gathered over the years.

The Game is a complete replication of the stock markets with live feeds for the values of stocks. Registered members get to play around with money in their account, using which they can purchase and sell off stocks. The game would also give you your daily stats. These would include your portfolio, the value of your stocks, and whether you have gained or lost out, relative to the market. The SenSex Simulation provides you with a platform to stand out of the ring and get a look and feel of the rumble.

“By the time you know the rules, you’re too old to play the game!” It’s never too late to start learning. Life is a vicious circle. Someone, who does not stop learning, never stops growing.

It’s Time to tame the BULL!!

Title: How To Use Leverage For Great Results With Forex

Word Count:
676

Summary:
When you execute a Forex trade, you are purchasing an amount of currency, termed a lot. The amount of currency in one lot depends upon the type of account you have. In a standard account, one lot is usually equal to U.S. $100,000; in a mini account, one lot is $10,000.

But Forex trading accounts are leveraged, which means you don’t have to own that expensive lot of currency; you just have to control it, and if you do, any profit it earns is yours. To obtain the right to co…

Keywords:
forex,forex software,forex trading software,forex tips,forex education,pips,forex trading systems,

Article Body:
When you execute a Forex trade, you are purchasing an amount of currency, termed a lot. The amount of currency in one lot depends upon the type of account you have. In a standard account, one lot is usually equal to U.S. $100,000; in a mini account, one lot is $10,000.

But Forex trading accounts are leveraged, which means you don’t have to own that expensive lot of currency; you just have to control it, and if you do, any profit it earns is yours. To obtain the right to control a lot of currency, you put up a much smaller amount of money in a sort of rental agreement called a margin deposit. In a standard account, to control that U.S. $100,000, you must put up $1,000 of your own money; in a mini account, to control $10,000, you need to put up $100.

The leverage influences the amount of profit you earn, as well. In a standard account, one pip of a currency pair that has the U.S. dollar as the base is equal to U.S. $10; in a mini account, one pip equals to $1. This means that, should you correctly forecast the movement of the market and execute a trade that earns you two hundred pips (not an unrealistic goal), if you have a standard account, your profit will be $2,000; if you have a mini account, it’s $200.

To maximize your profits in Forex trading, you don’t have to trade a standard account; not every beginning trader can afford to. Instead, if you believe you have a good forecast on the market, you can trade more than one lot. To continue the above example, if your successful trade earned you two hundred pips and you had purchased five lots of that currency, in a mini account you would have put up $500 of your own money—but earned a profit of $1,000 (two hundred pips times five lots). In a standard account, you would have put up $5,000—and earned $10,000.

The number of lots you can trade depends upon the margin in your account. That’s not the amount you deposited; that also includes any open trades you have running, taking into account any profits or losses you may incur.

There are two types of orders that can be placed in Forex trading. The most common type is called a market order, and it simply purchases or sells the currency pair at the going market rate. This sort of trade is quickly arranged—with some online trading platforms, one click can do it—so it’s the order you want to place when the market is moving rapidly. (If you do the one-click thing, always edit the trade to put in a stop-loss; more on that in a minute.)

The other kind of order is called an entry order, and it’s what you use when you want to purchase or sell a currency pair but only at a certain price. For example, say the GBP/USD is range-bound, moving sideways in a channel, going up and down but not far enough to entice you into a trade.

But there are indications that the Cable might soon break out of that channel. So you could place an entry order to purchase but only after the price rises above a certain point. If the Cable breaks out, your entry order would be triggered, and you would purchase the currency pair when the price rises above your pre-arranged point. If it doesn’t, you aren’t stuck with a currency pair that’s going nowhere, and the still-dormant entry order would cancel after a certain length of time.

A stop, also called a stop-loss, is a pre-arranged point where you decide you would like to get out of a losing trade. A limit, also called a take-profit, is a pre-arranged point where you decide you would like to exit a winning trade. Although it may not seem so on the surface, both are important. Properly using stops and limits defines the extent of your risk and encourages disciplined trading.

Title: 10 Good Reasons why YOU should jump into Trading FOREX

Word Count:
642

Summary:
The aim of this article is to introduce you to the wonderful field of FOREX trading. I want to emphasize how easy this trading can be and that it is not scary like trading stocks etc. If you want to have financial freedom, learning more about FOREX should be on the top of your priority list.

Keywords:
forex, forex trading, currency trading, foreign exchange, money, making money online, online business, stocks, online trading, day trading, futures, 4X, FX, foreign currency, currencies

Article Body:
Foreign Exchange Market is a market where traders buy and sell currencies with the hope of making a profit when the values of the currencies change in their favor. People are making vast amounts of money from Forex trading. The Forex Market has a big potential for everyone, ranging from large corporate firms to ordinary, everyday people like you and me.

It is a very exciting trade with a huge money-making potential. Just imagine yourself sitting comfortably in your pajamas at your computer… you turn on the internet and make a few quick transactions and by the time that you get up to get a cup of coffee, you are several hundred dollars rich! Would you like that? I would!!

I can hear you say, “Wait a minute!! This sounds just like another one of those confusing markets like stocks, options or traditional futures, so what makes this market any different?”

Aaah! Good question! So, in answer to your question, here are 10 good (if not great) reasons to enter the Forex Trade:

1. First and foremost, Forex trading allows for small investments. You do not have to be able to invest thousands of dollars to get started with this trade. You can start trading Forex with as little as $300 to $350 and could be well on your way to earning more than that on your first day.

2. The Forex markets are always open! You are able to trade anytime and from anywhere in the world. No waiting for the stock exchange to open. The market is ongoing, with generally only minor breaks on the weekends.

3. The funds that you invest are liquid; you can cash them anytime you want. No waiting for days to get your stocks converted into hard cash.

4. The value of the Forex Trading market is COLOSSAL: it is 30 times larger than all of the US equity markets combined. It is the largest market in the world with daily reported volume of 1.5 to 2.0 trillion dollars. This massive value makes it a lucrative and desirable trade to invest in.

5. It is a highly stable trade and offers greater strength over other markets. Countries and people are ALWAYS going to need currency. Although the value of different currencies goes up and down, the fluctuations are not as dramatic as stock prices and generally follow a predictable trend.

6. You do not have to worry about commissions, exchange fees nor any hidden charges when you trade Forex. Forex brokers make only a small percentage of the bid and there are very respectable and free brokers available as well. Is that not wonderful for you?

7. You make profits no matter which way the currency is going. You will not worry about a falling currency value if you know what to do with it and make good gains.

8. Forex is a very transparent market. Unlike equity markets, where analysts have an unfair advantage over the layman because of their insider knowledge, the relevant information for Forex is equally available to every one through international news. Therefore, all Forex traders are in a position to make pertinent decisions according to the current market situations.

9. Forex market is extremely quick! It takes not more than 1 to 2 seconds to complete your transactions because it is all done electronically, online and in Real Time.

10. The final good news is that you do not need any formal education, licensing, diploma or degree to trade Forex. All you need is the know-how of how it works, trading strategies and some tips and techniques and you can be on your way to earn big profits.

Forex trading online may be the fastest path to financial freedom and an end to all your financial worries. It truly is an excellent, if not THE best home business opportunity for ordinary people.
You owe it to yourself to give it a try!!!
Prosperity and happiness to all!

***********************************************

Title: Forex For Absolute Dummies

Word Count:
615

Summary:
Forex (foreign exchange) refers to the foreign currency exchange market, the world’s largest financial trading market. Pass yourself as a forex expert with these buzz words:

•Bid – to buy
•Ask – to sell
•Liquidity – financial ease of transaction, i.e. cash
•Trading volume – the amount traded
•Bid/ask spread – the difference between the proposed buying price and the actual selling price
•OTC – over the counter
•Exchange rate – the difference between currency values; f…

Keywords:
forex, forex trading,online forex trading,forex online,forex trading system,online forex trading

Article Body:
Forex (foreign exchange) refers to the foreign currency exchange market, the world’s largest financial trading market. Pass yourself as a forex expert with these buzz words:

•Bid – to buy
•Ask – to sell
•Liquidity – financial ease of transaction, i.e. cash
•Trading volume – the amount traded
•Bid/ask spread – the difference between the proposed buying price and the actual selling price
•OTC – over the counter
•Exchange rate – the difference between currency values; for instance, a Canadian dollar is valued at .86 of a US dollar
•Hedge funds – large mutual funds companies that control vast amounts of money and are able to manipulate the value of a currency through speculation
•Central bank – the national bank of a nation, which usually exerts control over the value of that currency

Forex trading is the investment in the currency of one nation. Multinational Corporations doing business across national boundaries find value in keeping their cash reserves in a variety of countries, and holding their funds in a myriad of ways. For example, a UK corporation may hold a percentage of its working capital in UK pounds, but if it does quite a bit of business in USA it may also maintain a percentage of its money in dollars, in US banks. Individual investors over the decades have discovered that there is profit to be made in investment and speculation in the currency markets.

Take the case during the 70’s when the German DM swung rapidly in value. It was worth anywhere from 1.2 marks to the US dollar to 3.5 US marks to the dollar. When the mark was worth 2.5 it was beneficial to spend dollars buying marks, since the mark would buy more goods or services at that rate. As the mark bottomed out 1.7 to the dollar there was less incentive.

Surprisingly, the forex market itself is not unified. One can find many small forex markets specializing in trading various currencies. The most commonly traded currencies in forex speculation are the US dollar, the Australian dollar, the British pound sterling, the Japanese yen, and the European Euro. Currency values vary depending on the market in which an investor is speculating, so there is really no such thing as a single, unified dollar rate, but instead there are multiple dollar rates, which vary according to the market where the trade is occurring.

The major cities in which trades occur include New York, London, and Tokyo. It’s a 24 hour process. When Asian trading ends, European trading commences, and when European trading ends, then American trading opens. Naturally, when American trading ends, it is time for Asian trading to open house once more… and so on.

Currently, the most actively traded currency is the US dollar, involved in 90% of all trades. This is followed by the Euro involved in 36% of all trades, then by the yen in 20% and the pound in 17%.

Our fastest rising currency in trade is the Euro, however the US dollar is still the favored anchor point– and the currency watched so as to judge how others will react. Differences in value of currencies come from the current events. GDP growth, inflation dips, interest rate swings, budget and trade deficits, surpluses and other economic conditions all shift currency values. Investors, for this reason, follow the news very closely. There are 24 hour cable news channels and many web sites devoted to news that aid currency speculators.

The forex market is highly susceptible to rumors. In fact the central banks of countries frequently manipulated local currency value by sowing rumors about interest rate hikes and other economic propaganda that impacts the value of the domestic currency. When this news is false it is called a dirty float- and it dismays the market.

Title: Your Guide To Successful Forex Trading

Word Count:
636

Summary:
If you were wondering; forex trading is nothing more than direct access trading of different types of foreign currencies. In the past, foreign exchange trading was mostly limited to large banks and institutional traders however; recent technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade.

The currencies of the world are on a floating exchange …

Keywords:
forex

Article Body:
If you were wondering; forex trading is nothing more than direct access trading of different types of foreign currencies. In the past, foreign exchange trading was mostly limited to large banks and institutional traders however; recent technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade.

The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all daily transactions involve trading of the major currencies.

Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note you should know that no dividends are paid on currencies.

If you think one currency will appreciate against another, you may exchange that second currency for the first one and be able to stay in it. In case everything goes as you plan it, eventually you may be able to make the opposite deal in that you may exchange this first currency back for that other and then collect profits from it.

Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. FOREX is a necessary part of the world wide market, so when you are sleeping in the comfort of your bed, the dealers in Europe are trading currencies with their Japanese counterparts.

Therefore, it is reasonable for you to believe that the FOREX market is active 24 hours a day and dealers at major institutions are working 24/7 in three different shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution.

Price movements on the FOREX market are very smooth and without the gaps that you face almost every morning on the stock market. The daily turnover on the FOREX market is somewhere around $1.2 trillion, so a new investor can enter and exit positions without any problems.

The fact is that the FOREX market never stops, even on September 11, 2001 you could still get your hands on two-side quotes on currencies. The currency market is the largest and oldest financial market in the world. It is also called the foreign exchange market, FX market for short. It is the biggest and most liquid market in the world, and it is traded mostly through the 24 hour-a-day inter-bank currency market.

When you compare them, you will see that the currency futures market is only one per cent as big. Unlike the futures and stock markets, trading currencies is not centered on an exchange. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S. it is truly a full circle trading game.

In the past, the forex inter-bank market was not available to small speculators because of the large minimum transaction sizes and strict financial requirements.

Banks, major currency dealers and sometimes even very large speculator were the principal dealers. Only they were able to take advantage of the currency market’s fantastic liquidity and strong trending nature of many of the world’s primary currency exchange rates.

Today, foreign exchange market brokers are able to break down the larger sized inter-bank units, and offer small traders like you and me the opportunity to buy or sell any number of these smaller units. These brokers give any size trader, including individual speculators or smaller companies, the option to trade at the same rates and price movements as the big players who once dominated the market.

Title: Relax, A Volatile Stock Market Is Your Dearest Friend

Word Count:
946

Summary:
Everyone is in the stock market these days whether they like it or not, and when the media fans the emotions of the masses, the masses create volatility that rarely under-reacts to market conditions! A volatile equity market creates opportunities with every gyration in either direction.

Keywords:
Stock,market,volatility,investment,portfolio,trading,discipline,opportunities,quality,profitable,investments,equity,eguities,trader,investor,Mutual,Funds,rally,correction

Article Body:
Most people never forget their first love. I’ll never forget my first trading profit! But the $600 (1970 dollars) I pocketed on Royal Dutch Petroleum was not nearly as significant as the conceptual realization it signaled! I was amazed that someone would pay me that much more for my stock than the newspaper said it was worth just a few weeks earlier! What had changed? What had happened to make the stock go up, and why had it been down in the first place? Without ever needing to know the answers, I’ve been trading RD for thirty-six years!

Looking at scores of similarly profitable, high quality companies in this manner, you would find that: (1) most move up and down regularly (if not predictably) with an upward long-term bias, and (2) that there is little if any similarity in the timing of the movements between the stocks themselves. This is the “Volatility” that most people fear and that Wall Street loves them to fear. It can be narrowly confined to certain sectors, or much broader, encompassing practically everything. The broader it becomes, the more likely it is to be categorized as either a rally or a correction. Most years will feature one or two of each. This is the natural condition of things in the stock market, Mother Nature, Inc. if you will. Don’t take her for granted when she gets high, and never ignore her when she feels low. Embrace her volatile moods, work with them in whatever direction they travel, and she will become your love as well!

Ironically, it is this natural volatility (caused by hundreds of variables human, economic, political, natural, etc.) that is the only real “certainty” existent in the financial markets. And, as absurd as this may sound until you experience the reality of it all, it is this one and only certainty that makes Mutual Funds in general (and Index Funds in particular) totally unsuitable as investment vehicles for anyone within seven to ten years of retirement! How many Mutual Fund investors have retired recently with more liquid financial assets than they had seven years ago, way back in 1999? There will always be rallies and corrections. In fact, it is worthwhile to “go back to the future” to establish a realistic Investment Strategy. In the last forty years, there have been no less than ten 20% or greater corrections followed by rallies that brought the market to significantly higher levels. The DJIA peaked at 2700 before its record 40% crash in 1987. But at 1700, it was still 70% above the 1000 barrier that it danced around with for decades before… always a higher high, rarely a lower low. The ’87 debacle was followed by several slightly less exciting corrections, but the case was being made for a more flexible, and realistic, Investment Strategy. Mutual Funds were spawned by a Buy and Hold Mentality; Mother Nature, Inc is a much more complicated enterprise.

Call it foresight, or hindsight if you want to be argumentative, but a long-term view of the Investment Process eliminates the guesswork and points pretty clearly toward a trading mentality that keys on the natural volatility of hundreds of Investment Grade Equities. During corrections, consider these simple truths: 1) although there are more sellers than buyers, the buyers intend to make money on their purchases, 2) so long as everything is down, don’t worry so much about the price of individual holdings, 3) fast and steep corrections are better than the slow attrition variety, 4) always accept even half your normal profit target while buying opportunities are plentiful, 5) don’t be in a rush to fill your portfolio, but if cash dries up before it’s over, you are doing it “correctly”.

Most of the problems with Mutual Funds and much of the increased opportunity in Individual Stock trading are functions of growing non-professional Equity ownership. Everyone is in the stock market these days whether they like it or not, and when the media fans the emotions of the masses, the masses create volatility that rarely under-reacts to market conditions! Rarely will unit owners take profits, particularly if they have to pay withdrawal penalties or taxes. Even more unusual are expert advisors who encourage investors to move into the markets when prices are falling.

A volatile market creates opportunities with every gyration, but you have to be willing to transact to reap the benefits. A necessary first step is to recognize that both “up” and “down” markets are forces of nature with abundant potential. The proper attitude toward the latter, will make you much more appreciative of the former. Most investment strategies require answers to unanswerable questions, in an effort to be in the right place at the right time. Indecisiveness doesn’t cut it with Mamma… in or out too soon is not an issue with her. But wasting the opportunities she provides really ticks her off! Successful investment strategies require an understanding of the forces of nature, and disciplined rules of portfolio management. If you can transition back to individual securities, you will do better at moving toward your goals, most of the time, because the opportunities are out there… all of the time.

So let’s adopt some new rules for this investment game and learn to live with them for a few cycles: Let’s buy good stocks new and old at lower prices during corrections. Let’s take reasonable profits on those that go up in price, whenever they are kind enough to do so. Let’s examine our performance based on the results of these trading transactions alone and at market cycle examination points for a smiley faced change of pace. And one other thing…

Let’s drink a toast to Mother Nature, her uncertainty, her volatility, and, of course, to our first loves.

Title: Understanding Forex – #5 – Compound Interest.

Word Count:
679

Summary:
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 . . .

Keywords:
forex, forex market, forex strategies

Article Body:
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 . . .

1. What is Forex

2. Technical analysis

3. Fundamental analysis

4. Money management

5. 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 investors do not have the patience to undergo these kinds of strategies, but they could be quiet profitable.

Remember this phrase: “Anything that can grow exponentially can explode.” By explosion I mean here fast multiplication, quick rate of growth. The important word is exponentially.

If you could double your money ten times in a row, and you start with one thousand dollars, the tenth time you would be a millionaire. This means that if you invest $1,000 and double, then you invest the $2,000 and double it, then you do it again and again, you will be a millionaire by the time you double your money the tenth time.

Can you realize the power of compound interest? We are not talking about a specific time frame above, but the average amount of time that takes to double your money is very important. For example, if you can double your money every month and you start with $1,000, it will take you less than a year to be a millionaire.

Some people try to do this at Forex, but it is very, VERY risky. There are other more conservative goals though. For example, if you could double your money ($1,000) every 6 months, you would be a millionaire in about 5 years. If you could double your money ($1,000) every year, it would take you about 10 years to be a millionaire.

Compound interest is one of the “secret paths” to wealth, but some people get greedy about it and lose their shirt. Also, there are some risks inherent on this technique that I will explain bellow. First let’s describe the rule of 72 which is very important to understanding how compounding your profits work.

The rule of 72 is good for computing when your money will double at a given interest rate. If you want to find out how much would it take for your money to double, just divide the annual interest into 72. For example, if you get 12% on an investment and that rate stays constant, your money will double in 72 / 12 = 6 years.

You can also compute the interest rate if you know how often your money will double. If you are told that your money will double every 5 years, the annual interest rate will be 72 / 5 = 14.4%. This is a rule of thumb. It gives approximate results.

Now, compounding your profits at Forex can be risky. You can use proper money management techniques, like those I explain on other article of this series, to control some of the risk, but not all. That’s why it is important to “never trade more than what you can afford to lose.”

The important question is to define whether this strategy is suitable for you or not. That’s up to you. Some traders and investors combine both, short term and long term strategies. They may also compound some of their profits.

Whether you compound your profits or not, that’s your choice. My purpose on this article was to show you how important compound interest is and how profitable it can be. You can learn other trading strategies and aspects about trading Forex from my other articles.

EasyWebRiches © 2006

Title: Free Forex Software

Word Count:
611

Summary:
Free Forex software is possible to obtain. It is usually a one months trail basis.

This gives you a good chance to see if you like it and if it can help you profit. It is an ideal way to use Forex software without risking any outlay.

There are numerous internet sites which are providing different software programs that can allow the traders to do forex trading. However, make sure that the software has accuracy.

When you acquire a certain software as your tool, try it…

Keywords:
forex,forex software,forex trading software,forex tips,forex profits,pips,trading currencies

Article Body:
Free Forex software is possible to obtain. It is usually a one months trail basis.

This gives you a good chance to see if you like it and if it can help you profit. It is an ideal way to use Forex software without risking any outlay.

There are numerous internet sites which are providing different software programs that can allow the traders to do forex trading. However, make sure that the software has accuracy.

When you acquire a certain software as your tool, try it first. Allow dry runs or testing especially when decision making is concerned. There are lots of forex trading sites that are offering trial runs of their products.

The software can determine the currency rates each day. Besides this useful task, some software also helps the trader by analyzing data and predicting market behaviors. It can also involve graph utilization which shows the rising and falling of currencies.

There are various security layers that would be difficult for hackers to crack into. This security is much needed when huge traffic volumes occur in the forex market.

The general security of the forex trading software ensures that the personal data of the traders are also protected. The two things being considered are data integrity and privacy. This will prevent the hackers from getting into the transaction for a possible change in forex rates. Hackers can change rates in huge amounts putting the business in chaos which can crash global markets.

Forex trading software allows the traders to see the entire forex markets conditions at once. It helps in increasing forex sales volumes in the market. Take note, forex market can be sometimes difficult to determine.

You need to understand every detail to select the best to make it work for you. As much as possible, learn the latest forex trading software and apply it. The software is considered as two-in-one. It includes both the trading software and charting software. Excellent profits are not impossible to gain if the traders are able to interpret these correctly.

Although forex trading is very popular today, make sure that you employ the right software in order to reach your goal. The advantages of software programs that were mentioned above are useless if it is not properly reviewed. Remember that web technology continuously increases in popularity becoming the latest trading avenue.

There are numerous internet sites which are providing different software programs that can allow the traders to do forex trading. However, make sure that the software has accuracy. When you acquire a certain software as your tool, try it first. Allow dry runs or testing especially when decision making is concerned. There are lots of forex trading sites that are offering trial runs of their products. The software can determine the currency rates each day.

Besides this useful task, some software also helps the trader by analyzing data and predicting market behaviors. It can also involve graph utilization which shows the rising and falling of currencies.

Upon subscribing to a site on forex trading, secure transactions can be already attained.

You can now have an access to the different markets of sellers and buyers worldwide. It is not difficult to conduct business transactions regardless of time as long as it is still market hours. Novice traders should not worry. They can add services such as accessing the expert’s sites for advice. These experts help the traders in analyzing the behavior of the market. Later on, the traders can be able to make wiser decisions regarding the best currency to trade and be successful.

Forex trading software is really the foundation for making good profits from Forex on a regular basis.

Title: Tell Me About Forex Scalping

Word Count:
620

Summary:
Trading on the Foreign Exchange market, or Forex, has become increasingly popular due in no small part to its sheer size and volume of trading. There was a time when only the large investment banks and other “institutional” vehicles of finance could play in the currencies market but now it is possible for just about anyone to invest in the Forex. Just as with equities or commodities traders, investors in the Forex need some type of strategy when deciding on currency pairs a…

Keywords:
forex, forex trading, forex market, stock trading, forex chart, forex options, forex rates

Article Body:
Trading on the Foreign Exchange market, or Forex, has become increasingly popular due in no small part to its sheer size and volume of trading. There was a time when only the large investment banks and other “institutional” vehicles of finance could play in the currencies market but now it is possible for just about anyone to invest in the Forex. Just as with equities or commodities traders, investors in the Forex need some type of strategy when deciding on currency pairs and when to enter and exit a position.

Scalping is one of many Forex investment strategies and at its simplest involves anticipating short-term movements in the exchange rates. Forex scalpers are like the polar opposites of those who use the buy-and-hold approach because they are only looking to enter and exit a position quickly—make their profit and run. Scalpers may only hold a position for a few hours—and in the extreme cases—or mere minutes. These “hit and run” investors look for market indicators specifically known to affect rates on the Forex.

National and international news events have been shown to affect currency exchange rates. In truth, the Forex trades 24 hours a day with investors all having access to real time pricing changes. Thus, a Forex scalper may only have a few minutes to enter and exit a position before the market corrects itself and factors the news into the pricing. Scalpers use key indicators to help them anticipate the price fluctuation, such as:

· GDP – Gross Domestic Product
· Unemployment
· Inflation
· Trade balance
· Interest rate announcements
· Consumer/business confidence surveys
· Retail Sales

Government statistics tend to be more valuable to Forex scalpers for a couple of reasons. First, the U.S. dollar backs nearly 90% of all transactions on the Forex so any economic data released about this key nation will likely have some affect upon the exchange rates—at least temporarily.

Secondly, U.S. government statistics are considered to be some of the most reliable and accurate data that investors can get their hands on. Plus, the real benefit to scalpers is that government data are supposed to be well-guarded secrets meaning that all investors—big or small—are made aware of the same information at the same time. Because small retail Forex traders are able to raise and move capital faster than larger institutional investors, they should have the advantage when it comes to taking advantage of short-term movements in exchange rates caused by the release of new information.

However, it is important to understand that a Forex scalper only profits if they can actually anticipate how the market will react to the information. For instance, if an investor had a position in the USD/EUR currency pair, they might be tempted to believe that the dollar should rise relative to the Euro if the U.S. had a higher rate of GDP growth in the 4th quarter. However, the dollar might actually fall based on this information if the U.S. economy grew at a slower rate than predicted—even if this rate was still higher than the Euro growth (and if the Euro zone grew faster than predicted). Plus, even if the investor does realize which way the market should move based on the information, they still need to enter and exit the position before the information can be assimilated into the pricing.

Forex scalping is a very dangerous investment strategy because the market is so very volatile and positions are leveraged to the hilt. In short order, scalping can cost an investor all of their capital—and perhaps even leave their account in the red. Although a viable option, traders new to the Forex are encouraged to find another, safer strategy to use.