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Friday 9 January 2009
Forex Investing Guide, Automated forex and Forex online for Newbie
Please note that we have been moved to the following location:
Thursday 1 January 2009
How to make money on FOREX market?
Let’s continue on “How to make money on FOREX market?” The difference between the FOREX market and standard stock market is FOREX is pair. For example, EUR/USD is comparison between EURO and Dollar. The left hand side is base currency. You will usually see bid or offer price at the following form.
EUR/USD bid= 1.3500 offer= 1.3502
Brokers make money from difference between bid and offer. So when you start trading, you will be in deficit. The difference is up to bid and offer. Each pair is not equal. At Marketiva, EUR/USD is 2 or GBP/JPY is 7. However, Mini version of FxOpen is more than Marketiva at +1 but standard is equal.
For example, you buy EUR/USE at 1.3502 (offer price). After that, you immediately close so you can sell at 1.3500 (bid price). That mean you lose money at 0.0002 or 2 point (or pip).
If you buy (or long), when you create order BUY, you will get value at offer price. When you close the order, you will get value at bid price. When you buy, that means you are holding and waits for high rate price. You will close order by selling back at high rate price. The close order is automatically sell. You have not to create new sell order. If you close at low rate price, you lose money.
The advantage of FOREX market is you can trade when price is rappel.
If you sell (or short), when you create order SELL, you will get value at bid price. When you close the order, you will get value at offer price. Selling is you notice broker to sell for waiting low rate price. You can close this order by buyback. The close order is automatically buy. You have not to create new buy order. If you close at high rate price, you lose money.
But you see point or pip at 4th decimal point (or 2rd decimal point in some pair). Let’s see EUR/USD.
Assume you predict EUR will climb when compare with USD. That means you can exchange EUR with more USD in the future. You create BUY order at 1.3502. Do you remember that you will get offer price? That mean when compare to bid price, you will get -2. This is broker’s commission.
As time pass by, after price claim to 1.3552 (or 50 point), you notice you cannot hold it. So you close at this point. That mean you get 50 point (or 50 pips or 0.0050 from base currency, 0.0050 USD)
Do 0.0050 USD is too less? You do think how to make high profit? For example, $1 per pip, you have to trade with $10,000! Good luck that you don’t have to put a lot of money like that.
But how you do?
I will continue on “What’s Leverage?” Why Leverage can make money by fewer budgets?
EUR/USD bid= 1.3500 offer= 1.3502
Brokers make money from difference between bid and offer. So when you start trading, you will be in deficit. The difference is up to bid and offer. Each pair is not equal. At Marketiva, EUR/USD is 2 or GBP/JPY is 7. However, Mini version of FxOpen is more than Marketiva at +1 but standard is equal.
For example, you buy EUR/USE at 1.3502 (offer price). After that, you immediately close so you can sell at 1.3500 (bid price). That mean you lose money at 0.0002 or 2 point (or pip).
If you buy (or long), when you create order BUY, you will get value at offer price. When you close the order, you will get value at bid price. When you buy, that means you are holding and waits for high rate price. You will close order by selling back at high rate price. The close order is automatically sell. You have not to create new sell order. If you close at low rate price, you lose money.
The advantage of FOREX market is you can trade when price is rappel.
If you sell (or short), when you create order SELL, you will get value at bid price. When you close the order, you will get value at offer price. Selling is you notice broker to sell for waiting low rate price. You can close this order by buyback. The close order is automatically buy. You have not to create new buy order. If you close at high rate price, you lose money.
But you see point or pip at 4th decimal point (or 2rd decimal point in some pair). Let’s see EUR/USD.
Assume you predict EUR will climb when compare with USD. That means you can exchange EUR with more USD in the future. You create BUY order at 1.3502. Do you remember that you will get offer price? That mean when compare to bid price, you will get -2. This is broker’s commission.
As time pass by, after price claim to 1.3552 (or 50 point), you notice you cannot hold it. So you close at this point. That mean you get 50 point (or 50 pips or 0.0050 from base currency, 0.0050 USD)
Do 0.0050 USD is too less? You do think how to make high profit? For example, $1 per pip, you have to trade with $10,000! Good luck that you don’t have to put a lot of money like that.
But how you do?
I will continue on “What’s Leverage?” Why Leverage can make money by fewer budgets?
Thursday 25 December 2008
How to start FOREX trading online in the demo environment?
If you have low budget but you would like to trade in stocks online, welcome to the world of FOREX trading! If you would like to know how to start trade and investment with lowest risk guarantee, you can start here!
Technical Chart Analysis is the same as Stock Analysis. It is nothing but you may have to know basic economics and effect to currency exchange.
The prerequisite you must have before start.
1. Budget – Do you believe you can start with $0? You hear right. It is $0. If you don’t have familiarized with FOREX trading, I suggest you should try FOREX broker demo account at least 3 months. I recommend broker which have demo account and virtual money. They allow you to start learning free. All is real FOREX trading but you don’t really gain or lose money. It is only assumed money to start. Special for you, I recommend 2 brokers have real money for you at $5 and 1$ accordingly.
2. Computer – you should use quality stable computer to get real time FOREX trading information.
3. Internet connection – All FOREX information is real time so it should be stable high speed connection.
4. Smart computer’s table and laid back surf chair.
5. Relax yourself then start to make money on FOREX market!
The first thing to do
1. Enroll e-currency
E-currency is the internet currency exchange system. You may know PayPal, the famous internet payment gateway. Someone may know E-Gold but it has been reduced popularity and loosed value to be low price rate. The remaining serviceable is Liberty Reserve and Web money. It is up to your broker which provider they choose.
2. Enroll online trading to broker
You may prepare your application but put on table. I will let you know how to use later. Start the following step.
2.1 Enroll Marketiva
www.marketiva.com – After review home page, go to “Open Account”. Fill-in the application form then download program named “Streamster”. After that, install it into your computer. Marketiva give you $10000 virtual money and $5 real money. Please be aware that it allows only using one account per one person and one computer.
2.2 Enroll FxClearing to get demo account
http://www.fxclearing.ca/eng/platform/demo.php - Fill-in the application form then download program named “MetaTrader 4 Platform”. The FxClearing has 2 kinds of account, Mini and Standard. Mini represents money unit in Cent. Standard represents in USD. At the first time, I recommend Mini because it starts at $1 and earn $1 at real money to trade at FOREX. During you fill-in subscription form, you have to choose “Leverage”. I recommend 1:100 at first time. I will introduce you what is it next time.
After enroll both, you have to provide identified document. You can use Passport, Identified card or any document which has your name and address on it.
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