|
Last year from about the midde of December 2005 to about the middle of January 2006, the forex currency pair GBP/JPY dropped about 1200 pips. Most experts agree this was due to carry traders taking profits on their forex carry trades for the year. This year, since that big drop the GBP/JPY has risen about 2400 pips. Are we in for another big unwinding again this December? |
|
Read more...
|
|
|
Forex Carry Trading Trading Forex (foreign currency or fx) using a carry trade strategy can be a profitable and relatively safe method of investment; however, there are some risks involved in attempting carry trading forex. First of all, let us clarify exactly what carry trading entails. The strategy involves the forex trader to buy a currency that has a relatively high interest rate while selling another currency with a lower interest rate. The difference in these two interest rates is the yield that will be generated by the investor, the overall amount depending on the leverage used as well as how long the trade is held. Generally speaking, a carry trade strategy is longer term than most currency trades. Investors in foreign currency carry trading will hold their trades for weeks and months rather than minutes and hours like some day traders. |
|
Read more...
|
|
Written by Susan Jan
FOREX trading appeals to many traders for many reasons other than its potential for profitable trading.
1. FOREX trading offers a 24-hour market so that any trader can take advantage of profitable market conditions at any time. |
|
Read more...
|
|
|
For just about every forex trader, there's a forex trading method or strategy. Trading forex using a grid strategy is another one of those, and as much as any of the others, there's certainly a lot of mixed feelings about grid trading. Some traders feel that whereas trading on a grid looks good on paper it never works in practice. Others feel that as long as you keep up with your grid system and follow the rules, you just can't lose. As with most things in life, as well as forex trading, the truth is probably a little of both. |
|
Read more...
|
|
|
Foreign Currency - Carry Trade One of the more popular trading strategies in forex involves the carry trade. That is, borrowing currency that has a low interest rate to buy currency with a higher one. Coupled with high leverage and time, this can be a very profitable exercise. Currently, foreign currencies with a high rate of interest include the British Pound (GBP), the New Zealand Dollar (NZD) and the US dollar (USD). Those currencies with a low interest rate at the time of this writing include the Japanes Yen (JPY) and the Swiss Franc (CHF). Recently, the Bank of Japan raised the short-term interest rate on the JPY, leaving traders speculating that the Yen carry trade may be over. However, comments made by the BoJ reassured forex traders that any further rate increases would be gradual and slow. This reassured fx traders and the yen carry trade has remained a viable forex trading strategy. |
|
Trade like a professional. Learn the rules, use the tools and techniques. Start small, use your head and not your heart. Learn the entry and exit points and go for medium term trades and not be glued to the screen.
Making money from trading “forex” trading requires skill, strategy, spare money and nerves of steel. Why? Because of the shear volatility in the market. Simply put, there are just too many unpredictable variables and any one of them could affect the position of a chosen trade. It is not all doom and gloom. Anyone can make money provided he/she uses his/her head and not their heart. In addition to that, they must follow and adhere to a some simple rules. An example of a simple rule which one particular trader followed was “ I come into the market to make $500 per day. And, as soon as I have made my $500 my work for the day is done ”. He goes home. Don’t be greedy. Always, have a clear head.
|
|
Read more...
|
|
Making the crucial decision to trade forex, whether its full time or just once in a while, requires answering many questions about yourself and your methods. If you haven't been able to answer some fundamental problems, it's probably not time to attempt trading for a living. You have to make sure that in addition to working out your forex trading system you need to create a workable equity management system as well.
|
|
Read more...
|
|
FOREX Trading Philosophy
By Dries Cronje
Keen on starting FOREX trading? Why would you not be… Many beginning FOREX traders are captivated by the allure of easy money. FOREX websites offer 'risk-free' trading, 'high returns' and 'low investment' – these claims have a grain of truth in them, but the reality of FOREX is a bit more complex. As with anything in life, what you put in will determine what you get out.
|
|
Read more...
|
|
How To Get Started In Forex Trading
You may have been hearing about the foreign exchange market (FOREX) and the investment advantages it offers. You would like to try it out, but don't know where to start. This short guide will give you the basics in FOREX and tell you what you need to participate in this fast growing field.
|
|
Read more...
|
|
Forex Brokers - Helping to Maximize Your Success
By Anthony Trister
A Forex broker is a broker dealing in foreign exchange, just like real estate broker who deals in real estate and properties. Simply, a Forex broker is an advisor who advises you about the forex market. However, the Forex market is not the perfect place to play with as a novice and beginner as there are many criticalities involved along with much risk bearing capacities. Novices can very quickly get their fingers badly burnt. But inexperience is not the only reason to consider using a Forex broker to trade in the high-risk international currencies market.
|
|
Read more...
|
|
|
New Opportunities with Forex Trading
By Anthony Trister
The simplest definition of currency trading is the practice of exchanging one country's currency for another country's currency. Basically, currency trading involves four main variables: currencies, exchange rate, time, and interest rate. The interplay of these variables creates opportunities for small investors to obtain investment returns that are generally unheard of in the traditional investment world. It is also referred to as foreign exchange, FX or Forex, but the essence remains the same that currency trading is the exchange of one currency against another.
|
|
Read more...
|
|
Forex Profits
By Anthony Trister
The Forex Market—What, When and Why?
Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market.
|
|
Read more...
|
|
|
Online Forex
by: Rafik Patel Q1: When you consider that the foreign exchange market has become the world's largest financial market, with over $1.5 trillion USD traded daily, where does it go from here? |
|
Read more...
|
|
The Importance of a Forex Trading System
In order to trade foreign currency effectively, it is an absolute necessity to have a forex trading system in place. This system will be some kind of framework, composed primarily of rules that include four key factors: |
|
Read more...
|
|
Forex Versus Stocks
Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company.
When the company does well and makes a profit, the value of the stocks rise. Stock owners can sell their shares for a profit or hold on to the stock for even more gain in the future. Sometimes companies will issue dividends – part of the profits that are distributed to share holders.
|
|
Read more...
|
|
Forex Articles