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Learn Fx Forex Trading for Profit
Sign up for your Free 5 Day Forex Video Course at:
http://www.FreeForexVideoCourse.com
Duration : 4 min
I am here to see if someone can loan me $1,000 to start a business. I have been trading forex on demo account and I make average of 100 pips per day. I needed some money to open a live account. I will pay back the person after one month.
Trading forex is not a business. You'll have to open a margin account with your forex brokerage, or get a bank loan.
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If you are familiar with trading, you will have heard or used the terms “bull and bear” market.
The image of the bear fighting the bull refers to the directional movement of stocks or currency prices up or down.
The bull lifts up the bear with it’s horns. The bear crashes it’s giant arms down upon the bull. The battle ensues and is non-stop.
If a trader is in a trade on the basis that the market is going to force the price of a currency pair upward this is known as LONG position.
SHORT position in forex trade is the other side of the coin. When the price moves down, it is possible to sell the base currency (ie the GBP in GBP/USD). When the dollar gains strength (ie the bear – sellers – starts to get the upper hand of the bull – buyers) the price will be seen to move down.
Later, the trader can “close his position” and a profit has been made.
These two ways to make a profit and movements in the market are known as “longs” and “shorts”. The position you take will be long or short if you are entering a trade. Long position is “buy” position if you like and Short position is “sell” position. You can remember this because “S” is for SHORT and for SELL.
It can be confusing in forex trading because you buy and sell in pairs. The first currency in a pair is known as the base currency sometimes. So if you are in long position for the pair “EUR/USD” this means you have bought the Euro (and automatically sold the Dollar). However, if you bought the USD/CHF it means you have BOUGHT the dollar and automatically sold the Swiss Franc.
Later, when you “close your position” it is as though you have done the reverse. In fact that is exactly what you have done. The profit/loss you have made depends on the change in value between the pair, which takes place to the fraction of a second, 24 hours per day from Australia to the UK (except weekends).
That leaves us with the question, what is FLAT or SQUARE position.
Well, the answer is simple. What if you decided not to trade at all? This is known as FLAT or SQUARE position. If you are FLAT it means you decided to stay out of the market, usually because you couldn’t see an opportunity to trade. If you are a gambler, you won’t care if there is an opportunity to trade or not, you will miss the value in being flat or square and you will lose your money.
Being flat is therefore a position. It’s a positive position to be in, because although you are not winning money, you are not losing it either.
Staying flat is the best thing to do when you’re just not sure or uncertain about trading. This is why it’s crucial to get a thorough understanding of a technical and fundamental strategy and learn it in “demo” until you’re proficient enough and confident enough in your understanding the market and responding to it with your trading.
Im preferably looking for some that offer a micro account, low leverage (to get me started), UK-based, and web-based trading software. Being able to demo trade for a few months would be great also. Thanks in advance.
BritXchange
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Its just a demo account btw. I go with the trend, and the trend is still on but I see my losses go from 20 to 30 to 100 in just a few minutes. Then at times I purposely do the opposite of what I think I should do, but I still lose right off the bat. I dont know what the deal is and I was wondering if someone could throw some light. Is it the spreads that cause me to lose right away?
To give you an example, I just made a trade and it got executed about 20 pips against me. Now theres no way the spread is so high right? So is just that the demo Im using is crappy? Im using OANDA fx game.
You should ONLY trade using ‘limits’ .. if you trade ‘at best’ some-one will be happy to take the shirt off you back ..
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Just like with stock trading, there are a large number of software programs you can use to make your foray into the foreign currency exchange markets. You will find that you have two basic choices, either web based or desktop based programs. Which way you choose to go is entirely up to you. If you travel a lot you may want to opt for the web-based variety instead of having to haul around a laptop and trying to find a good Internet connection for it.
Most of the more reputable Forex brokers offer software programs to their clients at no charge, however the software they provide is usually very rudimentary at best and you may have to pay more to get the features you really need. This is another issue to consider when choosing a broker to handle your exchange business. Many Forex websites have free demo accounts available which will allow you to experiment before you get locked in with one company or spend your money on something you don’t like.
Since the Forex market is constantly changing and evolving you will also want a software program that changes with it. Another issue that is absolutely crucial to your success in the Forex markets is a super fast Internet connection. If you do not have DSL, at a minimum you will have a tough time. I recommend broadband. If you have dial up just forget about it. I will tell you again that you need the fastest Internet connection you can afford.
Another really important issue when considering a Forex software program is security. As a rule, web based software programs are much more secure than the ones that you install on your desktop. The problem with desktop software is that it opens you up to a wide range of possible security breaches that could possibly leave your personal financial information vulnerable. Not only do you have the issue of viruses and Trojans, but you are also opening yourself up to loss of data due to hard drive crashes. When you add the possibility of hackers getting into your system, that adds even more skepticism about using desktop based programs.
With web based software programs the majority of the security and maintenance issues will be taken care of by the software provider. Internet based Forex software systems are hosted on secure servers with the most secure encryption technology available. In addition to the security issue is the protection of having all of your information backed up so it won’t be lost.
As I mentioned in the beginning of the article, another great benefit of web-based software is that it is available from anywhere in the world that you can get Internet access. This is the way I chose to go since I do a great deal of traveling and I liked the fact that the software is constantly updated so I don’t have to always upload a new version to my computer.