If you are interested in trading currencies online, you will find that the Forex market offers several advantages over equities trading.
Lower Transaction Costs
It is much more cost-efficient to trade Forex in terms of both commissions and transaction fees. Most brokers charge NO commissions or transaction fees, while still offering traders access to all relevant market information and trading tools. In contrast, commissions for stock trades range from $7.95-$29.95 per trade with online discount brokers up to $100 or more per trade with full service brokers.
Another important point to consider is the width of the bid/ask spread. Regardless of deal size, forex dealing spreads are normally 3-4 pips (a pip is .0001 US cents) in the major currencies. In general, the width of the spread in a forex transaction is less than 1/10 that of a stock transaction, which could include a .125 (1/8) wide spread.
Trade on Your Schedule
Forex is a true 24-hour market, which offers a major advantage over equities trading. Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading foreign currencies. Traders can always respond to breaking news immediately, and P&L is not affected by after hours earning reports or analyst conference calls.
After hours trading for U.S. equities brings with it several limitations. ECN's (Electronic Communication Networks), also called matching systems, exist to bring together buyers and sellers - when possible. However, there is no guarantee that every trade will be executed, nor at a fair market price. Quite frequently, traders must wait until the market opens the following day in order to receive a tighter spread.
Superior Liquidity
With a daily trading volume that is 50x larger than the New York Stock Exchange, there are always broker/dealers willing to buy or sell currencies in the FX markets. The liquidity of this market, especially that of the major currencies, helps ensure price stability. Traders can almost always open or close a position at a fair market price.
Because of the lower trade volume, investors in the stock market are more vulnerable to liquidity risk, which results in a wider dealing spread or larger price movements in response to any relatively large transaction.
100:1 Leverage
100:1 leverage is commonly available from online FX dealers, which substantially exceeds the common 2:1 margin offered by equity brokers. At 100:1, traders post $1000 margin for a $100,000 position, or 1%.
While certainly not for everyone, the substantial leverage available from online currency trading firms is a powerful, moneymaking tool. Rather than merely loading up on risk as many people incorrectly assume, leverage is essential in the Forex market. This is because the average daily percentage move of a major currency is less than 1%, whereas a stock can easily have a 10% price move on any given day. Of course, trading on margin magnifies both your profits and your losses.
The most effective way to manage the risk associated with margined trading is to diligently follow a disciplined trading style that consistently utilizes stop and limit orders. Devise and adhere to a system where your controls kick in when emotion might otherwise take over.
Profit Potential In Both Rising And Falling Markets
In every open FX position, an investor is long in one currency and short the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that potential exists in a rising as well as a falling market.
The ability to sell currencies without any limitations is another distinct advantage over equity trading. In the US equity markets, it is much more difficult to establish a short position due to the Zero Uptick rule, which prevents investors from shorting a stock unless the immediately preceding trade was equal to or lower than the price of the short sale.
Forex trading always involves buying one currency and selling another, so traders can easily trade in a rising or falling market. There is no Zero Uptick rule or any other restriction against shorting a currency.
At $1.9 Trillion Per Day, Forex is the Largest, Most Liquid Market in the World
The sheer volume of Forex facilitates price stability, with less slippage. What's more, almost 90% of all currency transactions involve the 7 major currency pairs. As a result, these currencies exhibit smooth trends and enjoy the tightest dealing spreads and highest level of liquidity.
Trade on Your Schedule; Respond to Changes in the Market Immediately
Forex is a true 24-hour market, open continuously from 5:00pm ET on Sunday to 4:30 pm on Friday. With three distinct trading sessions in the US, Europe and Asia, you can trade on your own schedule and respond to breaking news immediately.
Keep 100% of Your Trading Profits
Most brokers charge NO commissions or transaction fees, while still offering free access to real-time quotes, news, charts, research, and more. Also, dealing spreads as low as 3 pips (.0003) are available in currency trading. Even at a penny ($.01), the bid/ask on a stock trade is 30x wider, in addition to the brokerage commission.
Control Up to 200:1 Leverage
With more buying power, you can increase your total return on investment with less cash outlay. For example, with $1,000 cash in a margin account that allows 200:1 leverage (.5%), you can control up to $200,000 in notional value. Of course, trading on margin magnifies both your profits and your losses.
The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion — 30 times larger than the combined volume of all U.S. equity markets.
"Foreign Exchange" is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.
For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.
A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
The FX market is considered an Over The Counter (OTC) or 'interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as with the stock and futures markets.
Reading a foreign exchange quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.
The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.
When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.
In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.
In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.
Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.
When trading forex you will often see a two-sided quote, consisting of a 'bid' and 'ask':
The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).
What is a pip?
In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the fourth decimal point, which is 1/100th of 1%.
In EUR/USD, a 3 pip spread is quoted as 1.2500/1.2503
Among the major currencies, the only exception to that rule is the Japanese yen. In USD/JPY, the quotation is only taken out to two decimal points (i.e. to 1/100 th of yen, as opposed to 1/1000th with other major currencies).
In USD/JPY, a 3 pip spread is quoted as 114.05/114.08
The leverage available in forex trading is one of main attractions of this market for many traders. Leveraged trading, or trading on margin, simply means that you are not required to put up the full value of the position. Forex provides more leverage than stocks or futures. In forex trading, the amount of leverage available can be up to 200 times the value of your account.
There are several reasons for the higher leverage that is offered in the forex market. On a daily basis, the volatility of the major currencies is less than 1%. This is much lower than an active stock, which can easily have a 5-10% move in a single day. With leverage, you can capture higher returns on a smaller market movement. More importantly, leverage allows traders to increase their buying power and utilize less capital to trade.
Margin Trading: Stocks vs Forex
The word "margin" means something very different in forex than it does in stocks.
With stocks, trading on margin means that a trader can borrow up to 50% of a stock's value to buy that stock. This can be a costly move because the investor must pay interest to the brokerage firm on the amount borrowed. This is not the case in forex trading.
[*] For example, at $400/share, 100 shares of Google are valued at $40,000 ($400 x 100 shares). To trade this stock on margin, the money required for the trade is 50%, or $20,000. The remaining $20,000 is borrowed and interest must be paid on that amount. Margin interest is different from broker to broker, but a good rule of thumb is typically Prime plus 1-3% or more.
In forex, margin is the minimum required balance to place a trade. When you open a forex trading account, the money you deposit acts as collateral for your trades. This deposit, called margin, is typically 1% of the value of the position.
[*] For example, if you want to purchase $100,000 of USD/JPY at 100:1 leverage, the money required is 1%, or $1000. The other $99,000 is collateralized with your remaining account balance. You pay no interest.
It is very important to remember that leverage magnifies your profits AND your losses. You should monitor your account balance on a regular basis and utilize stop-loss orders on every open position to limit downside risk.
However, leverage is an exceptionally good tool that can be utilized to increase your buying power and return on capital — as long as you have a solid risk management plan in place.
Here's a hypothetical example that demonstrates the upside of leverage:
With a US$5,000 balance in your account, you decide that the US Dollar (USD) is undervalued against the Swiss Franc (CHF).
To execute this strategy, you must buy Dollars (simultaneously selling Francs), and then wait for the exchange rate to rise.
The current bid/ask price for USD/CHF is 1.2322/1.2327 (meaning you can buy $1 US for 1.2327 Swiss Francs or sell $1 US for 1.2322 francs)
Your available leverage is 100:1 or 1%. You execute the trade, buying a one lot: buying 100,000 US dollars and selling 123,270 Swiss Francs. At 100:1 leverage, your initial margin deposit for this trade is $1,000.
As you expected, USD/CHF rises 50 pips to 1.2372/77. Since you're long dollars (and are short francs), you must now sell dollars and buy back the francs to realize any profit.
You close out the position, selling one lot (selling 100,000 US dollars and receiving 123,720 CHF) Since you originally sold (paid) 123,270 CHF, your profit is 450 CHF.
To calculate your P&L in terms of US dollars, simply divide 450 by the current USD/CHF rate of 1.2372. Your profit on this trade is $364.3
SUMMARY Initial Investment: $1000 Profit: $364.31 Return on investment: 36%
If you had executed this trade without using leverage, your return on investment would be less than 1%.
For ease of use, most online trading platforms automatically calculate the P&L of a traders' open positions. However, it is useful to understand how this calculation is derived.
To illustrate a typical FX trade, consider the following example.
The current bid/ask price for EUR/USD is 1.2320/23, meaning you can buy 1 euro with 1.2323 US dollars or sell 1 euro for 1.2320 US dollars.
Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.
So you make the trade: to buy 100,000 euros you pay 123,230 dollars (100,000 x 1.2323). Remember, at 1% margin, your initial margin deposit would be $1,232 for this trade.
As you expected, Euro strengthens to 1.2395/98. Now, to realize your profits, you sell 100,000 euros at the current rate of 1.2395, and receive $123,950.
You bought 100k Euros at 1.2323, paying $123,230. You sold 100k Euros at 1.2395, receiving $123,950. That's a difference of 72 pips, or in dollar terms ($123,950 - $123,230 = $720).
Total profit = US $720
(TIP: When trading any USD counter currency pair, each pip is worth $10, per 100,000 trades).
I'm not in the FOREX arena but thanks for posting this. Very informative.
Posted by Hannibull on :
I'm afraid I still lack the insight to predict when currencies go up or down in value, what it is that makes the US Dollar go up or down against the Euro. I know I could use google but do you personally know of a good website that offers good and clear information on how to become educated and gain insight in this market? TIA
Posted by Squire38 on :
Unfortunately I do not read too much into what really makes the market. I usually just "day-trade". I watch the charts on about 4 pairs when I see a reversal (either after a huge spike or dip) then I either sell it short or buy it long. Then I make my money a few minutes or hours later. I just stick to the 15 min chart.
But to answer your question, I guess it would be nice to know. Same as with stocks, perception.
Posted by littleman on :
Squire, can you give me a website to set a paper trading account up with? I would really like to learn. Thanks you
Posted by littleman on :
Squire, got through pip school. I have set up a demo account. I have another question. My tools or indicators i use on stocks i get form e-trade.Where do i go to set my system in place for currencies. Seems so hard, but i am determined to do this thing. Your help is greatly appericated. thanks
Posted by Squire38 on :
Man, I know nothing about etrade, I just use the stuff from forex.com
Posted by littleman on :
Squire, took a littie time, but i got it. Thanks again.
Posted by Hitman on :
I am begining paper trades now at Oanda.com. The website looks a little difficult at first then when you download the FXTrade Game You can adjust it for a simple set up. The sight seams to be the most user frieldly... That is after you make adjustments..... There are other sights but lots more complicated. Oanda.com has pip spreads at 1.8 EUR/USD currency pairs ect... Let me know what you think?
Posted by Hitman on :
You will like the sight once you get it figured out. I set up several bogus accounts to see which sight was the easiest to figue out and Oanda.com is it. I now have set buy/sell configurations set up so i can trade really quick in and out without having to refigue how much money I will be using on each buy/sell .. If I get in and the tick goes the wrong way... I have an automatic sell set up {I dont have to ever reset my figures unless later choose to: Also If i sell out because I bought/sold in the wrong direction .... One click and I am OUT and BACK In in the other position...
Posted by Squire38 on :
Good stuff, hitman. Play around with the stuff. Some of the best learning I received was a margin call.
My 1st paper account I think I lost $30,000 over a few hours. Eye-opening. I learned a sh!t-ton though. My 2nd paper account (starting at $5,000) I more then tripled it (in a month) only doing it a few minutes a night after I came home from work. My real account, I'm doing pretty good, those 1st 2 months paid off big time.
Posted by Hitman on :
Thanks for your info.... Do YOu trade using the Elliot Wave Pattern? I just found out about it but it will take some time to get an understanding of how to use it, Found some info at ElliotWave.com they have a free onlone course?
Posted by Squire38 on :
quote:Originally posted by Hitman: Thanks for your info.... Do YOu trade using the Elliot Wave Pattern? I just found out about it but it will take some time to get an understanding of how to use it, Found some info at ElliotWave.com they have a free onlone course?
No, I readit, but it wasn't for me. I just wait until I see a huge dip or rise then either go long or short. EUR/USD just now is a good example. IT dove all night and looks like it has settled, so I bought some at 1.2955. I have a pretty tight stop limit on it and hopefully it will pop up today.
Posted by Zsartell on :
Squire38,
What is the stratagy you use? Do you wait for major dips or spikes and get in there, hopeful of a turn around? Also I was wondering what you set your stop loss at if you bought at 1.2955?
Posted by Squire38 on :
quote:Originally posted by Zsartell: Squire38,
What is the stratagy you use? Do you wait for major dips or spikes and get in there, hopeful of a turn around? Also I was wondering what you set your stop loss at if you bought at 1.2955?
All I do is watch for dips and spikes. Once I see it I watch and wait until the 15-min chart confirms a reversal in the trend, then I either buy it or short it.
Today I knew I would be away from the computer so I put my stop loss at 1.2950 and my sell at 1.2965. 10 Pips is good enough for me today.
Posted by Hitman on :
Squire38 Can you share who you trade with. I am almost ready to fund an account?
Posted by Squire38 on :
Forex.com
I had my $50k play account with them for the 1st month, had my $5k play account for the 2nd month, then I open my real account with them the 3rd.
To be honest I had a few play accounts the 1st month, I lost the most on forex, but that was only because that was the one I wound up using the most.
Posted by Hitman on :
Thanks for the info.... I am play trading the same way your are.... I buy/sell after a big move then set exit positions with very little loss.. then hope i am in for the $$$$ if not the sell order hits and my loss is small.... Still working on paper trader for a while.... FOREX is without a doubt where the money is..... Skill and the 24hr trader have major potential.
Posted by littleman on :
Squire, went long GBP/CHF this morning, up 31 pips. Trading is a blast. Playing extreme high/lows. Having a little trouble placing my stops. Practice.................Hey, thanks again!
Posted by Squire38 on :
I just do my stops based on the resistance/support according to the charts. Nice on GBP/CHF, I've never played that pair.
Posted by Zsartell on :
I have been told that the EUR/USD frequently makes a massive change in direction at 2:00AM EST, when another market is opened. From what I can see it has done so pretty consistently for the past three mornings. I am still paper trading and have been doing pretty good so far, but I think I am going to take this into account from now on and see what happens. Has anyone else had any luck trading on this?
Posted by littleman on :
Zsartell, went both long and short EUR/USD early this morning. Closed my short position when it broke. Managed to pull 26 pips off the trade. Mighty early, but worth ever pip. Thanks for the tip.
Posted by Zsartell on :
Yeah, I tried to go short, expecting it to turn in direction, but I should have gone long. I was actually staying up to watch it after I went short at 1.3032, and was going to manually go long if it went that way, but I fell asleep only to wake up at 3:30 and 50 + pips in the hole. Oh well. If I was playing with real money, I would have either made darn sure I was awake for it or I would have setup a stop loss and an automatic long play. In the end I think I would have ended up with at least 30 pips up. I'm really starting to think Forex is for me. So far that is 4 days in a row that EUR/USD has spiked right at 2:00AM EST.
Posted by Machiavelli on :
Squire .. instead of putting up those beginning posts.. would of just been easier to recommend the site:
lol ... let them visit the site and learn... Babypips recommends good brokers and it's not called "papertrading" but "demo" trading or account...
Posted by Zsartell on :
I recently found Babypipsdotcom and have learned quite a bit from them. I would recommend anyone starting out to start reading their entire site. Lots of good info there...
Posted by Squire38 on :
quote:Originally posted by Machiavelli: Squire .. instead of putting up those beginning posts.. would of just been easier to recommend the site:
lol ... let them visit the site and learn... Babypips recommends good brokers and it's not called "papertrading" but "demo" trading or account...
I got the beginning posts off of Forex.com, the source was at the bottom of each post if anyone wanted to visit.
Call it demo trading, call it paper trading, potatoe, potato, its all the same. Since this is a primarily stock BB, calling it papertrading in my eyes, would led to a bit less confusion, or maybe not, who cares it gets the job done.
Posted by Chart walker on :
This is a great thread you all have here board!
So, being into charts... Are there symbols I can look up at stockcharts.com or are they different? How does that work? ~
I'd love to throw the indicators on the Forex that I use and see what happens and post the results!
-my 2 cents...
Posted by Machiavelli on :
quote:Originally posted by Chart walker: This is a great thread you all have here board!
So, being into charts... Are there symbols I can look up at stockcharts.com or are they different? How does that work? ~
I'd love to throw the indicators on the Forex that I use and see what happens and post the results!
-my 2 cents...
As far as I know you can't get any charts for FOREX currencies on stockcharts.com but yes you can put any indicator you like that you use for stocks on Forex currency pairs... your best bet is to open a "demo" account with a Forex broker and use the account's charts/platform.. But FOREX is definetly a different monster then stock trading and you should learn about it first .. below is a site i recommend to learn about FOREX as well as recommended brokers with demo accounts and such...
Open several demo accounts if you wish and see which one you like best. The demo accounts are free and are in real time with "play" money that calculates your gains/losses in real time. But i suggest you read up on FOREX on the babypips site first in their "School" section.
Posted by Chart walker on :
Machiavelli - thank you!
Excellent info. I have "snooped" around FOREX but would like to test drive it, your suggestions are solid. I think I'll do just that
WHAT IS EVERYONE'S FAVORITE DEMO SITE, -AND WHY?
-I'm thinking of opening 3 of them... Thanks in advance Board!!
Chart ~
Posted by T e x on :
good to see this new forum--and my ol' buddy making informative posts...
Posted by Hitman on :
I Trade with Oanda.com! I like being able to preset the way I buy. That goes for any pair i choose to trade. Oanda has a tool that lets you preset your amount of pips, buy orders, sell orders and stop loose orders long b4 you place the trade. My presets are to buy 55555 units and always sell if I loose $30 and To take profits if I make $100.... so now I dont have to set this up everytime I buy/sell. I decide where I want In and "Click" and I am In and set. It is quick so if you are In the wrong way..... You are out quickly. Speed IN/OUT is a major key to making it in the FOREX.... It took me a while to figure this all out but ONANDA works great... May want to check it out.. My presets are sort of like a MACRO
Posted by Machiavelli on :
yeah thats what is great about FOREX.. its the largest "market" in the world that you do not have a problem getting filled...faster then the stock market... and you can short as well as go long with no uptick rules like in stocks... and you can put a stop/loss at the same second you put a buy order so it does it simultaneously... tell me a stock broker that does that... and why dont stock brokerages come out with "demo" accounts? ...
Posted by Chart walker on :
quote:Originally posted by Hitman: I Trade with Oanda.com! I like being able to preset the way I buy. That goes for any pair i choose to trade. Oanda has a tool that lets you preset your amount of pips, buy orders, sell orders and stop loose orders long b4 you place the trade. My presets are to buy 55555 units and always sell if I loose $30 and To take profits if I make $100.... so now I dont have to set this up everytime I buy/sell. I decide where I want In and "Click" and I am In and set. It is quick so if you are In the wrong way..... You are out quickly. Speed IN/OUT is a major key to making it in the FOREX.... It took me a while to figure this all out but ONANDA works great... May want to check it out.. My presets are sort of like a MACRO
Alright I went with ONANDA, I'm checking out the charts and indicators, -really different No weekly settings, longest is day... I like a weekly chart to determine the major trend, and daily chart for exact BUYS and SELLS. So that will be something I'll have to wrestle with...
Q. I see a buy and sell ticket, but how/where is the "selling short" one?...
I'm totally new to FOREX but trade stacks rather well (see Options thread) I'd love to do in FOREX what I'm doing in Options and stocks, that is, figure out how the best way to milk this puppy
Any words of wisdom on a detailed trading system I can "tweak" around with?
Some of you really seem to have a handle on this, and the more sharp minds look over it the better it should become by reason of logic
FWIW I have my detailed system on the options thread, I left nothing out of it, would like to flop that system over to here but without Weekly charts I'm stuck in the mud right now...
Any ideas Board?...
Posted by IWISHIHAD on :
I have traded several practice accounts so far, i like fxdd the best. Some of these brokers are out of country and that might sway some people in who they chose as a broker, especially when they set up their real account.
Posted by SherriT on :
quote:Originally posted by Hitman: I Trade with Oanda.com! I like being able to preset the way I buy. That goes for any pair i choose to trade. Oanda has a tool that lets you preset your amount of pips, buy orders, sell orders and stop loose orders long b4 you place the trade. My presets are to buy 55555 units and always sell if I loose $30 and To take profits if I make $100.... so now I dont have to set this up everytime I buy/sell. I decide where I want In and "Click" and I am In and set. It is quick so if you are In the wrong way..... You are out quickly. Speed IN/OUT is a major key to making it in the FOREX.... It took me a while to figure this all out but ONANDA works great... May want to check it out.. My presets are sort of like a MACRO
That sounds like something for me - preset stuff so I can't screw myself up totally. Were the instructions for doing that pretty self-explanatory, or did someone else walk you through that?
Posted by Machiavelli on :
quote:Originally posted by SherriT:
quote:Originally posted by Hitman: I Trade with Oanda.com! I like being able to preset the way I buy. That goes for any pair i choose to trade. Oanda has a tool that lets you preset your amount of pips, buy orders, sell orders and stop loose orders long b4 you place the trade. My presets are to buy 55555 units and always sell if I loose $30 and To take profits if I make $100.... so now I dont have to set this up everytime I buy/sell. I decide where I want In and "Click" and I am In and set. It is quick so if you are In the wrong way..... You are out quickly. Speed IN/OUT is a major key to making it in the FOREX.... It took me a while to figure this all out but ONANDA works great... May want to check it out.. My presets are sort of like a MACRO
That sounds like something for me - preset stuff so I can't screw myself up totally. Were the instructions for doing that pretty self-explanatory, or did someone else walk you through that?
Some are self explanatory and some you need someone to walk you through... it takes time getting used to it because you are so used to stocks and their platforms... but like i suggested try different Forex demo accounts from different brokers and use the one you think is easiest for you... and learn the basics of Forex at babypips.com .. they also have a forum where you can ask others questions though take what you hear from a forum with a grain of salt.. self educate yourself...
Posted by SherriT on :
quote:Originally posted by Machiavelli:
quote:Originally posted by SherriT:
quote:Originally posted by Hitman: I Trade with Oanda.com! I like being able to preset the way I buy. That goes for any pair i choose to trade. Oanda has a tool that lets you preset your amount of pips, buy orders, sell orders and stop loose orders long b4 you place the trade. My presets are to buy 55555 units and always sell if I loose $30 and To take profits if I make $100.... so now I dont have to set this up everytime I buy/sell. I decide where I want In and "Click" and I am In and set. It is quick so if you are In the wrong way..... You are out quickly. Speed IN/OUT is a major key to making it in the FOREX.... It took me a while to figure this all out but ONANDA works great... May want to check it out.. My presets are sort of like a MACRO
That sounds like something for me - preset stuff so I can't screw myself up totally. Were the instructions for doing that pretty self-explanatory, or did someone else walk you through that?
Some are self explanatory and some you need someone to walk you through... it takes time getting used to it because you are so used to stocks and their platforms... but like i suggested try different Forex demo accounts from different brokers and use the one you think is easiest for you... and learn the basics of Forex at babypips.com .. they also have a forum where you can ask others questions though take what you hear from a forum with a grain of salt.. self educate yourself...
Totally agreed. I just liked the idea of figuring out my thresholds, setting it up, watching and clicking
Thanks for all of this great info everyone!
Posted by T e x on :
Thought you guys might find this interesting...from RD's forum at da hub:
quote:Currency Personalities Anybody have anything else to add to this list?
1. Depth of liquidity means that this pair experiences prolonged, inconclusive tests of technical levels 2. Breakout traders need to allow for a great margin of error: 20-30 pips 3. If USD/CHF and GBP/USD have broken equivalent technical levels, EUR/USD is likely to do the same after a lag 4. Momentum indicators are well-suited 5. Reliance of short-term indicators (30-minute) exposes traders to an increased likelihood of whipsaw movement 6. MACD is well-suited because it utilizes EMA resulting in fewer false crossovers 7. When large movements under way, DMI is useful for confirming whether a trend is in place. If so, momentum indicators should be discounted and reliance might be placed on DI+/DI- crossovers
USD/JPY
1. Most politically sensitive pair 2. Heavy influence exerted by Japanese institutional investors and asset managers 3. Cluster of orders at similar price or technical levels 4. Similar clusters of stop loss orders 5. Frequent encounter with support or resistance at numerically round levels 6. Trendline analysis most fitting 7. Ideal for breakout traders who employ stop-loss entry orders on breaks of trendline support or resistance 8. Short-term trendlines can be effective 9. Heavy reliance on candlestick charts 10. Daily close candlesticks are highly reliable leading indicators 11. Trend over the medium-term 12. Look to trend following tools such as MA(21, 55 are heavily used), DMI, Parabolic SAR 13. Momentum indicators such as RSI, MACD, or stochastics should generally be avoided, especially intraday due to trending and institutional nature driving this pair (INTERESTING??) 14. Ichimoku analysis <====== YOOHOO glance ... here kitty ... here kitty!!
GBP/USD
1. Reaction to US and UK fundamental data 2. Price action has a one-way tendency during larger moves 3. More proactive risk management 4. Watch short-term false breaks of chart levels 5. Focus on charts > 240-minutes 6. For those positioned with a move, trailing stops with Parabolic SAR are well suited 7. Longer-period oscillators can be used to highlight potential reversals or divergent price action 8. Momentum signals should be confirmed by break of trendlines, Fibonacci retracements, or parabolic levels 9. Frequently exceed 61.8 retrace, only to stall at 76.4 level. 10. Williams %R is well suited with overbought/oversold bands adjusted to -10/-90
USD/CHF
1. Trades mostly based on overall U.S. dollar sentiment 2. Leading indicator for major U.S. dollar movements 3. False break of technical levels common 4. Not unusual for price to trade 15-25 points through support/resistance before reversing 5. More proactive risk management 6. Watch short-term false breaks of chart levels 7. Focus on charts > 240-minutes 8. For those positioned with a move, trailing stops with Parabolic SAR are well suited 9. Longer-period oscillators can be used to highlight potential reversals or divergent price action 10. Momentum signals should be confirmed by break of trendlines, Fibonacci retracements, or parabolic levels 11. Frequently exceed 61.8 retrace, only to stall at 76.4 level. 12. Williams %R is well suited with overbought/oversold bands adjusted to -10/-90
as long as its for free its ok.. if u have to pay for a charting program.. don't bother because most if not all Forex brokers offer it for free with all demo accounts with all the bells and whistles that go with them and then some...
Posted by IMAKEMONEY on :
BIG FAST MONEY!!! Posted by Hitman on :
I Just set up a DEMO Forex trading account through CHNW (Cash Now) It is the standard PLATFORM that most other trading sights use.... I couldnt find out how to do the PRESETS as a MACRO that I was able to set up through OANDA.COM
However CHNW does have some good features, but Unless I can do Presets... I will use OANDA... I am not sure that everyone using OANDA even know that the PRESET BUY/SELL is available.... That feature was hard to locate on the website. But It works great
Posted by Hitman on :
FOREX MARKET Made Simple....
(1) No commission... true/false answer: there is no commission.... However through the PIPS you do pay a cost to buy into a PAIR. (Think of a Pair simply as a TICKER SYMBOL}. You put in an order to buy "USD/URO" or whatever. USD/URO is (in simple form) a ticker symbol..... When you buy or sell basically you own it..... THE PAIR!
(2) Depending upon the PIP/Spread - When you buy/sell.................. the FIRST think that happens is: $15 to $50 is taken out of your account..... That money goes to the Company you are trading through.......... And you dont get that money back nor do you pay it again to CLOSE or EXIT your possition... The fees are paid when you Enter with the BUY or SELL order ... It is actually a Charge/Commission paid buy you to buy or sell the ticker symbol "USD/URO"...
(3) To buy certain PAIRS, the PIP can cost up to $100+ So unless you have lots of money don't trade PAIRS that have a higher than 2, 2.5, or 3 spreads..... The HIGHER the PIP = the more it will cost you to enter a position.
(4) The word PLATFORM is simply the way the PAGE looks like that you see when you pull up the website you will be trading through... It will include certain "Goodies" you use to Trade with... Different companies have different PLATFORMS and each may or maynot be different from each other.
(5) The PLATFORM you will see when you go online and enter a Trading website.... will Look really confusing.... It takes lots of time to get the PLATFORM you will be trading on.. Simplified! You must work with the PLATFORM untill you get it to where it makes since to YOU!
(6) When the Currency market is open (24/7 except weekends) You can buy and sell anytime you choose... The Forex or Foreign Exchange Market is always moving with up and down swings..... You can get in and out in seconds because there are lots and lots of traders at anytime the market is open.
(7) You look at the ups/downs and guess which way the market will head next.... If you thing the trend is UP.... You BUY the PAIR (You are not concerned with how the PAIR is trading with respect to each other- that is fixed by the market} You are only concerened with ... Will the PAIR PRICE go UP or Down.................
If you think the PAIR is going down you SELL and if the trend (After you enter) was correct the Pair goes lower -and the lower it goes... the more you make when you CLOSE/EXIT your position.. If you think the PAIR will go higher... then you enter the position with a BUY ect.
Here is how I trade..... I Enter a position on a PAIR. If I start to make money .... I wait a while then take the profit by CLOSING or EXITING my position....
If I start to loose money because I didn't pick the Trend correctly..... I get out of that position as fast as possible, because when I enter a position/pair..... My account will be $15 to to $50 short to begin with so the loss can really build up and you can loose a lot or money.....
*Rember when you enter a PAIR position whether you BUY or SELL the PAIR your out of the pocket expence it $15 - $50 UPFRONT....
So actually there is a COST to trade the FOREX eventhough is is not called a commission.
I tried to make what I said as simple as I could.... Hope I helpes a little.
I drive for JB Hunt over the road so sometimes I cant get a connection with my Laptop and It may be a while b4 I post here.
The goal is to pick your entry point right more that wrong.... which Takes lots of paper trading with a DEMO account.
THE FOREX MARKET TRADING IS LOTS SAFER THAN THE FUTURES MARKET. In the FUTURES market you can loose lots more money than you invest .... It can be a bottonless pit.. BUT in the FOREX MARKET you can NOT loose more than your original investment.... You still have to be carefull because you can get a maigin call and it is possible to loose the money you invested.... But never will you be asked to put more money in to cover any losses.
Posted by Hitman on :
New2Stocks.... there is no reason to go to the free chart sights you were asking about... Just set up a DEMO account with one of the FOREX websites and all the charts are on the DEMO Account. There you will see charts for PAIRS with lots of trading tools included.
Posted by Hitman on :
TEX... Your info was gr8 thanks lots
Posted by Hitman on :
DON'T EVEN THINK ABOUT PUTTING REAL MONEY INTO A FOREX ACCOUNT AND ACTUALLY TRADING ..... Wait untill YOU can make money with a DEMO account... And you can make money consistantly.....
If you do real money trades first- you will loose ALL of your money...... REALLY FAST>..... REALLY FAST.....REALLY FAST and I do mean FAST
Posted by SherriT on :
quote:Originally posted by IMAKEMONEY: BIG FAST MONEY!!!
IMAKE? Do you trade on the Forex too, or just demo accounts so far? I have heard you can loose your tail (even before Hitman posted that) so I just wondered what your secret is?
Posted by IMAKEMONEY on :
SherriT IM STILL LEARNING AND NOW UP 30K ON MY DEMO ACCOUNT R.D ON THE HUB BOARD IS THE MAN, HE GOT ME HOOKED. READ TEX POST ABOVE.
Posted by Machiavelli on :
quote:Originally posted by SherriT:
quote:Originally posted by IMAKEMONEY: BIG FAST MONEY!!!
IMAKE? Do you trade on the Forex too, or just demo accounts so far? I have heard you can loose your tail (even before Hitman posted that) so I just wondered what your secret is?
I said it once and I'll say it again. Go on the babypips site and learn the basics of it all as well as trade with a "Demo" account. Read the whole Babypips school program and don't skip anything even if you think you know something already. Even though Forex is similar to the stock market it is a whole different ball game because it never stops except on weekends and only temporarily since it begins again on Sunday night. So holding overnight positions in FOREX is not always advisable and if you do always always put stop/losses. There is no excuse for not putting in stop/losses. Below is the link for the Babypips School:
My name is Justin LeBlang; I work for EFX Group a Non-Dealing Desk Forex Broker. I see lots of great comments & questions about the Forex markets and Forex brokers here in the forum and I wanted to offer my experience and industry knowledge to the group.
So if anyone has anyone questions they would like to ask, please do not hesitate and I would be more then glad to respond.
Best Regards,
Posted by T e x on :
quote:Originally posted by EFX_Justin LeBlang: Hello Everyone ~
My name is Justin LeBlang; I work for EFX Group a Non-Dealing Desk Forex Broker. I see lots of great comments & questions about the Forex markets and Forex brokers here in the forum and I wanted to offer my experience and industry knowledge to the group.
So if anyone has anyone questions they would like to ask, please do not hesitate and I would be more then glad to respond.
Best Regards,
OK, great...first, what's a "non-dealing desk" broker?
tia...
Posted by Hitman on :
It is possible to be up 30K on a demo account... But be carefull if you are using $100000 demo account 0r $50000 demo..... My thought is --- withdraw $98000 on your demo and work $2000+- and you may get a better real picture.... It Takes lots more skill to make profit with LESS money... Most people will not have $50000+ in a real account
Posted by EFX_Justin LeBlang on :
Hi Tia,
A non-dealing desk (NDD) broker is a firm that offers direct access (STP ECN) trading through multiple bank feeds with 100% transparency. A NDD broker will NOT have fixed spreads, will charge a commission, offer spreads down to 1/10th of pip (depending on their liquidity), will not reqoute orders during execution and if they have a true ECN, clients will be able to match orders off directly with each other.
Posted by Machiavelli on :
so your charging a commission and a transaction fee based on the spread? ...
Posted by EFX_Justin LeBlang on :
Machiavelli ~
No our commissions are based on volume traded.
We charge $5.00 per 100,000 traded, or about a PIP round trip. If you traded 10,000 then your commission charge would be $.50 ($1.00 roundtrip).
So with a 1 pip spread or less and our commissions your actually saving money, plus trading with a broker who is not trading against you.
Posted by Machiavelli on :
I'll check out your brokerage... what is your company's website? ...
Posted by T e x on :
EFX, i got a question, re:
quote:Issues in our demo environment are not a reflection of our live platform.
...from your site's "Demo Account" ad...
Does that mean that if I open a demo account, I'm trading with/against other demo traders? To be useful to me, I'd have to see how I'm doing against the "real market." make sense?
Posted by IMAKEMONEY on :
SORRY HITMAN, BUT I COULD PUT THE 50K IN,BUT FOR NOW IM, STILL JUST LEARNING IT.Hitman Member
Member Rated: posted April 11, 2007 02:20 PM -------------------------------------------------------------------------------- It is possible to be up 30K on a demo account... But be carefull if you are using $100000 demo account 0r $50000 demo..... My thought is --- withdraw $98000 on your demo and work $2000+- and you may get a better real picture.... It Takes lots more skill to make profit with LESS money... Most people will not have $50000+ in a real account -------------------------------------------------------------------------------- Posts: 659 | From: Georgia | Registered: Apr 2006 | IP: Logged |
Posted by IMAKEMONEY on :
JUST TOOK $900.00 OFF THE USD/JPY Posted by Machiavelli on :
quote:Originally posted by IMAKEMONEY: JUST TOOK $900.00 OFF THE USD/JPY
Real or Demo trading? ...
Posted by EFX_Justin LeBlang on :
Tex ~
We stat the disclaimer about Live vs. Demo mainly because we use our demo environment for testing of new order types, back end software adjustment and new rev test. This does cause the demo to become unstable, therefore not always a true reflection of how the live platform performs. As far as execution and quoting, everything should be the same, unless the demo is not working properly at certain moments.
Now I suggest to all traders Forex, stocks, futures etc, open up a live account with a broker to really test their systems. I've heard lots of stories of brokers showing one thing on demo, but offering something else completely on the live. With EFX you can open an account for as low as $400 to test the system.
Posted by ForexHarvester on :
quote:Does that mean that if I open a demo account, I'm trading with/against other demo traders? To be useful to me, I'd have to see how I'm doing against the "real market." make sense?
How could demo orders interact with a live marketplace? You can get real bank quotes, but obviously a real order can't hit a fake demo order. I use EFX, and it is the best platform out there by far. The disclaimer about the Demo thing is just to let you know that they do all of their platform upgrades in testing first in demo, so if there is a demo issue, it might not relate to the real platform.
By the way, for those that are news traders, check out www.fxticker.com for news and Calendar. Pretty cool new site.
FH
Posted by T e x on :
quote:Originally posted by EFX_Justin LeBlang: Tex ~
We stat the disclaimer about Live vs. Demo mainly because we use our demo environment for testing of new order types, back end software adjustment and new rev test. This does cause the demo to become unstable, therefore not always a true reflection of how the live platform performs. As far as execution and quoting, everything should be the same, unless the demo is not working properly at certain moments.
Now I suggest to all traders Forex, stocks, futures etc, open up a live account with a broker to really test their systems. I've heard lots of stories of brokers showing one thing on demo, but offering something else completely on the live. With EFX you can open an account for as low as $400 to test the system.
Am replying to yours and the following post...
Obviously, no one wants demo data mixed in with live data...the point I'm trying to make is I want my demo results to be judged by actual market conditions, not whether I did better or worse against other demo traders...
make sense, yet?
In other words, I wanna see how my plays stack up against what really happened.
Posted by Machiavelli on :
quote:Originally posted by T e x:
quote:Originally posted by EFX_Justin LeBlang: Tex ~
We stat the disclaimer about Live vs. Demo mainly because we use our demo environment for testing of new order types, back end software adjustment and new rev test. This does cause the demo to become unstable, therefore not always a true reflection of how the live platform performs. As far as execution and quoting, everything should be the same, unless the demo is not working properly at certain moments.
Now I suggest to all traders Forex, stocks, futures etc, open up a live account with a broker to really test their systems. I've heard lots of stories of brokers showing one thing on demo, but offering something else completely on the live. With EFX you can open an account for as low as $400 to test the system.
Am replying to yours and the following post...
Obviously, no one wants demo data mixed in with live data...the point I'm trying to make is I want my demo results to be judged by actual market conditions, not whether I did better or worse against other demo traders...
make sense, yet?
In other words, I wanna see how my plays stack up against what really happened.
+1 ... Exactly. I don't care about how others do but whether I am doing good or not.
Posted by Zsartell on :
If anyone's interested a good trader started a chat room and is usually present during the London session.
Anyone know of a solid real-time news source?
Posted by Machiavelli on :
For Forex? ... most if not all Forex Brokers already provide that... open a Demo account with one of them...
Posted by jon clogger on :
Okay, a LOT of people I respect are obviously trading on the FOREX, my question is simple: Do you guys prefer this over traditional day-trading US securities, be it pennies or small cap?
I want to learn, but not if this is just a hobby.
Thank you, the Clogger of Jons
Posted by EFX_Justin LeBlang on :
For those who are interested in helping the Forex markets and the brokers, please take a moment to complete this survey.
quote:Originally posted by jon clogger: Okay, a LOT of people I respect are obviously trading on the FOREX, my question is simple: Do you guys prefer this over traditional day-trading US securities, be it pennies or small cap?
I want to learn, but not if this is just a hobby.
Thank you, the Clogger of Jons
It's not that it's a hobby per say. It is just that it's a different monster/territory that us stock traders are not used to so we are experimenting with it.
Like all financial markets it has it's pro's and con's. Here's some pro's:
1. You can go short with no restrictions as opposed to the stock market with it's "uptick" rule as well as high margin requirements.
2. You can open a account with $200 and still get margin to control a bigger position of currency.
3. You can put a trailing stop/loss in place before you even enter a currency position and at the same time you put a limit or market order. So that when you enter the position it automatically does the Stop loss at the same time without you having to be in front of your computer to enter the stop/loss order.
4. No commissions. The brokers get paid on the spread. The smaller the spread the smaller their fee.
5. Only like 7 major currencies to keep track of as opposed to 9,000 stocks in the stock market in U.S.
6. I'ts almost impossible to manipulate the currency market because it is so large and any one player could not do it.
7. You can open a demo account in real time to try it out with "play" money. Tell me a stock broker that does that?
Anyways that is just some of them. If you want to learn further go to this website and read their "School" section in it's entirety even if you think you know a particular topic: www.babypips.com Posted by jon clogger on :
Thank you Machiavelli, very insightful. I'll give the babypips a try.
Posted by IMAKEMONEY on :
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Posted by Machiavelli on :
Doing good lately in FOREX IMake?
Posted by SherriT on :
Here's a question for the masses....when you were starting out or playing with more limited funds, did you primarily scalp and do it multiple times, or find a good entry and ride?
Posted by IMAKEMONEY on :
quote:Originally posted by Machiavelli: Doing good lately in FOREX IMake?
VERY WELL, THANK YOU.
Posted by IMAKEMONEY on :
quote:Originally posted by SherriT: Here's a question for the masses....when you were starting out or playing with more limited funds, did you primarily scalp and do it multiple times, or find a good entry and ride?
IN OUT IN OUT IN OUT, THATS JUST ME.
Posted by Machiavelli on :
quote:Originally posted by IMAKEMONEY:
quote:Originally posted by Machiavelli: Doing good lately in FOREX IMake?
VERY WELL, THANK YOU.
did u papertrade/demo account trade before u started to trade or jumped in feet first?
Posted by IMAKEMONEY on :
THREE DEMO ACCOUNTS FIRST.
Posted by Machiavelli on :
how long did you "demo" and which brokers did you open Demo accounts with? ... I only opened one because i wasn't impressed with the others I looked at... trying to find simple platforms with big charts because I use candlesticks, Moving averages etc... so i need to be able to see well without squinting and guessing approximiate prices etc...
Posted by Relentless. on :
GFT has the best charts. FXCM is decent. Oanda has sub par charts Forex.com is pretty good
Posted by Machiavelli on :
My thing is i need charts to be BIG. Some have charts so small especially with candles that you can't tell or estimate where a currency's price will fall or rise when you want to enter a position.
Posted by Relentless. on :
GFT will be the one you want then. I think they're down to a one week demo... but it'll give you enough time to see how much better their charts are. Open an Oanda demo account... the charts aren't as good but the demo doesn't run out.
Posted by Machiavelli on :
One week? what kind of chit is that? lol I have heard of GFT and tried it once a long time ago but learning the platform was not easy at the time so i got frustrated and gave up at the time. The one I do use is CMSFX.com. I like their platform but I just don't like that the charts aren't big enough. Anyways check it out and let me know what you think of them. They have 400:1 leverage with $200 minimum to open a account and unlimited demo account use. 3 pip maximum spread for fees.
Posted by IMAKEMONEY on :
Money Never Sleeps Pal.
Posted by Machiavelli on :
Yes i know but trying to find the perfect or near perfect broker for me for FOREX...
Posted by IMAKEMONEY on :
GFT,Machiavelli
Posted by Relentless. on :
If full screen isn't big enough then I'm not sure what is.
Posted by NEL on :
Anyone here heard of Jack Crook (not the best name for a World Currency Options expert? I received an e-mail today from another service I subscribe to about his services. I don't have the dough to spend on this but wonder if it is something to consider in the future?
Here is part of the e-mail below...
Bob: The service is Jack Crooks' World Currency Options Alert, the world's first and only trading service specifically created to help you profit from the Philadelphia Stock Exchange's new World Currency Options.
For starters, you'll get Jack Crooks' World Currency Options Trading Manual.
In the manual, Jack shows you his #1 strategy for selecting the currency options that offer you the greatest profit potential with the least amount of risk. He shows exactly how the Philadelphia Exchange's World Currency Options work — and he shows you how he identifies the best ones to trade.
Martin: I'm a risk-averse person. So I want to add that I'm pleased to see Jack provides several risk barriers:
The first risk barrier is diversification — you're investing in the currencies of entire nations, not just a few stocks. And Jack recommends a variety of different currencies, different expiration dates and different strike prices.
The second risk barrier is the options themselves. Even in the worst-case scenario, your loss is limited to the modest amounts you pay for each of them.
And third is Jack — with close monitoring of each position, with strict limits.
And while we're on the subject of risk, I want to remind you of one more thing: One of the greatest risks of all, in my opinion, is being taken by the folks who do nothing to protect themselves from this dollar crisis.
Bob: I've always been intrigued by currencies, how dramatic the moves can be, how huge the leverage is. But I have always been hesitant because of the unlimited risk.
Martin: Now, with these World Currency Options, you can know exactly what the risk limit is, and I know it will never be exceeded.
Bob: And the real asset here, of course, is Jack. He's the best when it comes to currencies. He stays on top of the currencies 18 hours a day. He tells you exactly which Japanese yen options to buy right now, and which other currency options to buy for diversification and for more profits.
Martin: We know of no one better.
Bob: Martin, congratulations. Over the years, I've seen the huge profits that are made in the currency market. And I was always amazed that there was no viable way for the average investor to participate without taking huge risks. No one brought together what has got to be the most liquid, most wildly profitable market with the investor-friendly instruments like these new options. Now you have done it!
Editor's note: Normally, a one-year membership in World Currency Options Alert is $5,000.
But if you become a Charter Member today (Monday, September 24), you can join for one year for just $2,300, less than half the regular membership rate.
Or for an even better deal, join for two years. The cost is just $3,750, and you save $6,250!
Posted by IMAKEMONEY on :
quote:Originally posted by NEL: Anyone here heard of Jack Crook (not the best name for a World Currency Options expert? I received an e-mail today from another service I subscribe to about his services. I don't have the dough to spend on this but wonder if it is something to consider in the future?
Here is part of the e-mail below...
Bob: The service is Jack Crooks' World Currency Options Alert, the world's first and only trading service specifically created to help you profit from the Philadelphia Stock Exchange's new World Currency Options.
For starters, you'll get Jack Crooks' World Currency Options Trading Manual.
In the manual, Jack shows you his #1 strategy for selecting the currency options that offer you the greatest profit potential with the least amount of risk. He shows exactly how the Philadelphia Exchange's World Currency Options work — and he shows you how he identifies the best ones to trade.
Martin: I'm a risk-averse person. So I want to add that I'm pleased to see Jack provides several risk barriers:
The first risk barrier is diversification — you're investing in the currencies of entire nations, not just a few stocks. And Jack recommends a variety of different currencies, different expiration dates and different strike prices.
The second risk barrier is the options themselves. Even in the worst-case scenario, your loss is limited to the modest amounts you pay for each of them.
And third is Jack — with close monitoring of each position, with strict limits.
And while we're on the subject of risk, I want to remind you of one more thing: One of the greatest risks of all, in my opinion, is being taken by the folks who do nothing to protect themselves from this dollar crisis.
Bob: I've always been intrigued by currencies, how dramatic the moves can be, how huge the leverage is. But I have always been hesitant because of the unlimited risk.
Martin: Now, with these World Currency Options, you can know exactly what the risk limit is, and I know it will never be exceeded.
Bob: And the real asset here, of course, is Jack. He's the best when it comes to currencies. He stays on top of the currencies 18 hours a day. He tells you exactly which Japanese yen options to buy right now, and which other currency options to buy for diversification and for more profits.
Martin: We know of no one better.
Bob: Martin, congratulations. Over the years, I've seen the huge profits that are made in the currency market. And I was always amazed that there was no viable way for the average investor to participate without taking huge risks. No one brought together what has got to be the most liquid, most wildly profitable market with the investor-friendly instruments like these new options. Now you have done it!
Editor's note: Normally, a one-year membership in World Currency Options Alert is $5,000.
But if you become a Charter Member today (Monday, September 24), you can join for one year for just $2,300, less than half the regular membership rate.
Or for an even better deal, join for two years. The cost is just $3,750, and you save $6,250!
NO!! TELL HIM TO BLOW!JMO
Posted by AB on :
quote:Originally posted by Scotty don't know: Anyone know of a solid real-time news source?
Here is a free resource site that will show you how the forex market reacted to economic news releases in the past:
![[Smile]](smile.gif)
My presets are sort of like a MACRO ![[Big Grin]](biggrin.gif)
![[Razz]](tongue.gif)