Online forext trading, forex broker trading guide

Recommending a trading Platform

I don't usually do this but this time I will make an acceptation.

I recently came across this 24 hour commission free leveraged trading platform.

They are a public trading company, well established and their 24 hours support is not only for tech issues or money issues, they also give you financial advice and if you are a new forex broker than they will let you open a "practice account" for only $200 and the software will guide you through with small helpful tips that are not bothering you , yet helping a lot for a beginner.

I my self opened a standard account and 2 months later, I'm still active and making fair amount of money since my initial investment.

They are called Finotec Trading Inc. and they accept investors from all of the gulf area and have a customer service raps that speaks both English and arabic.

If you try them I'll be glad to hear what you think about them.

You can find a link to their site on my links for trading platforms.

Gold is not a good investment now days

According to Dubai industry officials Gold has lost some of its shine.

Gold as a commodity investment is not the best idea for the time being, but if you already have some gold save it for the future, it will be worthwhile thing to do.

Gold purchasing should be considered as a saving fund, not investment, as investment is other financial options is much better.

During the past 30 years, worldwide gold prices have fallen from $850 per ounce in 1979 to $580 this year, which is more than $250 per ounce.

World financial portfolios are the major factor trying to affect the gold prices, by trying to increase international gold consumption and by that to increase the ounce price to $1000. Needless to say that those efforts are not working and gold prices are still on a decline.

Central banks are also trying to double their gold reserves and by that to directly affect the ounce price, but by doing so it does not help move the price very much.

The media has a big role in helping to increase gold ounce prices.

By offering new models of jewelry new fashions trends and holding huge advertising campaigns by top traders the prices are rising a bit. It attracts more buyers.

Ahmad Bin Sulayem, chief operations director and board member of the Dubai Multi Commodities Centre was quoted saying, that gold trade is very popular in the region.

"Trade and investment in gold is profitable, but investment needs good experience," he said, adding that he encourages both investment and saving in gold.

"Fluctuations in gold prices are within acceptable limits, and there are no sharp fluctuations that might be risky to investment in gold."

Forex Charts, Again

In order to make big profits from Forex trading, you need the skill on how to read the charts. While a text conveys the fine detail, a chart can easily bring the viewer up to speed with the big picture. In this fast-moving world, time is money especially in trading. This can make a huge difference when it comes to your profits and frequently a graphic representation of the facts makes for easier interpretation.

There are several different ways to observe the price movements used in trading such as bars, lines, point and figure, and of course Japanese candle sticks chart. Among of them, Bar Chart and the Candlestick chart are the most popular for Forex charts.

Bar Chart is a type of chart used in Technical Analysis. They have reached their popularity because they are useful and easy to understand. The activities of the hour/day/week/month are seen as a vertical bar in the chart. Horizontal marks account for opening and closing prices. A trend line is drawn in the bar chart to indicate the price of online trends. An ascending trend line connects between the daily highs of the market. A descending trend line connects the day's low prices. If the downward trend line crosses the most recent prices - a buy signal is generated. If an ascending trend line crosses through the most recent prices, a sell option s generated.

Forex auto-trading

Computers are not only intelligent but they are fatigueless as well, so why not take advantage of that in forex? Computers can track the market activities and can keep you informed about the status of the market. There are many programs that create fancy charts on the computer screen according to information, but only few have the proper logic behind, to help you gain a real profit from this help. Because of the expanding of the Internet and other communication methods you do not need to put data manually. You have multiple sites to push data into your program and you can download comprehensive data after the markets close for the day...

Similarly, those with larger budgets and other infrastructure facilities can install a small satellite dish and watch price changes in all the forex markets almost instantaneously as they occur. The software creates charts dynamically on the computer screen as each trade takes place on the exchanges. You can put many different charts on the screen and thus watch numerous markets all around the world in real time. Computers can let you free for other daily routine and works.

The development of computer technologies, program security and other telecommunications, like experience, raises the qualification level of the forex brokers. In fact this raises the belief of the brokers in their own abilities to benefit and to lower the risk while operating. That’s why the higher level of the trading qualification leads to a higher level of trade amount. This way you put great amount of money only in the hands that can take care of it well.

Forex options

The majority of the foreign exchange (FOREX) brokers I know execute business via phone. The phone lines between brokers and banks are dedicated, or direct, and are usually installed by the broker. A foreign exchange brokerage firm has direct lines to banks around the world. Most foreign exchange is executed through an open box system - a microphone in front of the broker that continuously transmits everything he or she says on the direct phone lines to the speaker boxes in the banks. This way, all banks can hear all the deals being executed.

Because of the open box system used by brokers, a trader is able to hear all prices quoted; whether the bid was hit or the offer taken; and the following price. What the trader will not be able to hear is the amounts of particular bids and offers and the names of the banks showing the prices. The fees are negotiated on an individual basis by the bank and the brokerage firm. FOREX Brokers show their customers the prices made by other customers either two-way (bid and offer) prices or one way (bid or offer) prices from his or her customers.

Traders show different prices because they "read" the market differently; they have different expectations and different interests. A broker who has more than one price on one or both sides will automatically optimize the price. In other words, the broker will always show the highest bid and the lowest offer. Therefore, the market has access to the narrowest spread possible.

Forex myth-busting

Forex trading is an exciting new toy in the financial field (and not just there) that begun appealing to all sorts of population layers. The stakes are affordable enough that almost anyone can play, and the potential profit is high enough to tempt even the most careful into the market. There’s something “sexy” about trading money – an appeal that stock, bonds and mutual funds just don’t have. With trillions of dollars changing hands daily in the forex market, it seems like everyone’s got a fool-proof system to win the money and get rich (and fast). Here are some of the things I heard, that are sure to get you broke in no-time:

You don’t need a plan to make money in the currency market – making money IS a plan - Trading without a well-thought out plan is like jumping out of a plane without a backup chute. Your plan is what keeps your eye focused on your goal, and gets you through the inevitable losses. Currency trading isn’t a short-term game, but most new traders (95%) quit within the first year because they didn’t have a plan to follow.

If you stick with a losing trade long enough, it will turn around - Sticking with a losing trade is a good way to lose more money. When a deal isn’t going the way that you expected, it’s hard to admit that you were wrong and get out – but it’s the best way to avoid losing even bigger money. Winning on one trade isn’t going to make you rich overnight. Consistently knowing when to get out – whether it’s to cut your losses or grab your winnings – is the way to be a successful currency trader.

Where there’s smoke, there’s fire - Rumors are pure rumors about 99% of the time. If you want to win in the forex market, base your trades on reality, not hearsay. On the other hand, rumors can alert you to look at what’s really happening and make a decision based on the movement that you see.

Forex Rates

The Forex market is all about the difference between the different currencies.

At first glance this may be an almost impossible thing to do, and to make money while doing, but it is much easier than most people think. It is, indeed, important to study the subject, but it is by no means impossible to learn. In fact, in today's digital world it is easier than ever to invest in the Forex market and make a lot of money, since most of the actions on the market are done online anyway.

Moreover, at this day and age, the internet offers tons and tons of information about trading, and how to make good and real money out of it.

When you decide to go into investments in the currency market, it is highly recommended that you do so while consulting a trained professional, since it would be very sad to lose all you money through ignorance. As you know, starting is always hard, but starting and getting all you money wasted - can be shuttering.

However, all the information that you could want is all available online through many sites. Online you can find all the exchange rates, information and quotes in order to make sound decisions. You can find a host of sites that will let you have the information that you need, and, in addition, they will let you have a demo account in order to get used to the system for free.

Demo accounts are an important station in a long path for being a forex wiz, and being a good trader, since they help you get the feel and the touch of the market, before you have to be worried about losing your money in the process.

Advantages of Forex trading

Leverage - Forex trading offers huge leverage, often up to 100:1. The direct meaning is that small deposit margin can generate large profits.

Liquidity - The enormous size and scale of global trading in the market means that it’s almost impossible to stumble upon a case of unfulfilled deal and most trades executed almost instantly.

Ability to go short - Since currency trading involves buying one currency and selling another, a trader has equal potential to profit in a rising or falling market (he can either sell or buy).

Trends - basically, a country's currency value is determined by interest rates and the economy’s strength in relation to other countries. Therefore, it’s easier to predict the trends and foresee the upcoming events.

Spreads - while a lot would consider this a disadvantage, the spread is the broker’s way of earning the living, but then again - spreads mean there is no commission for the Forex transactions. A broker will generally quote a fixed spread of 3-20 pips depending on the currency pair, and the importance of the client (if you manage a $1,000,000 account you’ll get the best spread available). Just so you have an idea - the interbank rate (that the broker get) might be as little as 1 pip.

Most people getting into the Forex world, begin with losing a few bucks, but if you learn some of the trading rules, and keep your discipline - there is no reason you can’t be making some money.