If you want to earn extra cash aside from the cash you earn from your regular job or your business, maybe it’s time to you to enter the financial market. One kind of financial market that made a lot of people earn a lot of money is the Forex market.
Aside from the fact that the Forex market can give you an opportunity to earn a lot of money, you should also know that Forex is the largest and the most liquid financial market in the world with trade exchanges that amounts up to trillions of dollars each day.
Forex also operates 24 hours a day and therefore making it the most liquid market in the world.
However, Forex is also a very risky market. Besides that fact that it generated a lot of people to become rich, it also made a lot of people lose large amounts of money. Therefore, you should consider that you should think twice before entering this financial market. You should have enough knowledge and skills before you enter this market. Part of the knowledge that you should know the best time you should enter this very liquid and very large market.
Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts. Perhaps, you also know one or two strategy when trading in the Forex market. However, you should also consider the fact that because the Forex market operates 24 hours a day, you need to know when you should trade.
Every minute in the Forex market counts. One minute you notice a currency is increasing in value, the next you notice that the same kind of currency you noticed a minute ago is decreasing in value. This is why you should consider the fact that Forex market is a very dynamic market with lots of price oscillations.
Minute by minute events are very important in order for you to be successful. Because of this feature that is found in the Forex market, you, as a Forex trader, can enter the market a number of times a day. This will allow you to earn some profits after every number of trades you do and perhaps maybe even lose one if you made the wrong trading decision.
Firstly, you have to remember that the Forex market beings at Sunday at 5PM EST to Friday at 4PM EST then it beings again at 5PM EST. Trading begins in Forex at New Zealand next at Australia followed by Asia, in the Middle East, Europe and ends in America. The major markets in Forex are London, Tokyo and New York with trading activities the heaviest when major markets overlap.
Basing from the times, you will see that there will always be someone anywhere in the world who is buying and selling currencies. You will see that when one market closes, another market opens. Trading in the Forex market is 24 hours a day.
Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market and the US market opens at the same time.
These are the trading hours in the Forex market you have to trade in, in order to get the highest possible trades. This are the hours that are also the most profitable.
Here are the open market times preferred by Yee Kok Siong that you can use as reference:
New York – 8am to 4pm EST
London – 2am to 12nn EST
Great Britain – 3am to 11am EST
Tokyo – 8pm to 4am EST
Australia – 7pm to 3am EST
If you look at the schedule and study it, you will see that there are two instances where two of the major markets overlap on trading hours. These are between 2am and 4am EST with Asian and European markets and 8am to 12pm EST with European and North American.
These are the things you should remember when trading in the Forex market. It is not only important that you know how to trade and know some strategies on Forex trading, But, you should also know when is the best time to trade in this very large and very liquid market.
If you follow all these, you can be sure that you can earn a potentially higher profit than on other trading times.
For more reading, please visit here: https://yeekoksiong.wordpress.com/
The foreign exchange market is more important to our daily lives than most people would ever realize. The forex market is used for the trading of foreign currency. This is essential for the economy of many nations. If you would like to trade currency in the forex market, then keep reading this article for tips made by Yee Kok Siong for the new players.
Once you've developed your FOREX trading system, you should revisit it often to see if it needs a bit of tweaking in order to maximize your chances of successful trading. This is particularly important because as you become more experienced in FOREX trading you'll want to apply newly-gleaned knowledge to your system.
Stay away from the "long shot" trades. Many new traders think of the forex market as gambling, where any trade can pay off. While this may be true in some cases, it is simply not a good strategy. Doing this will result in many more losses than gains, and will quickly cause a new trader to drop the market.
The key to success in the Forex market is learning is the key determinant to your business. You have to be up to date with the market and you have to understand how it works in order to make money. Learn investment approaches, strategies, forecasts, and analysis so that you do not get taken by surprise.
One important thing to remember as a beginner at Forex is to start small. If your risk it high it is easy to let emotions rule and lose sight of your goals. By starting with small amounts you can minimize the impact of your emotions and learn to focus on your long-term goals.
If you are not having a good day in the Forex trading market, just turn your computer off. Some people keep going, thinking that after losing so much, that their luck will change for the better. It is this kind of thinking that could cause you to lose large amounts of money.
Do not take any money and invest it into a real forex account until you spend some times practicing. Take a few months to practice and learn all that you can before trying to jump right into it. This will increase your chances for having success with it.
When trading with forex, do not let the trends of the regular stock market influence you too much. These trends are linked to exchange rates, but the success or failure of one firm, no matter how big it is, is not going to affect the value of a currency overnight.
Many people know the saying "if you fail to plan, you plan to fail", and this applies to trading on the forex market as well. Developing a trading plan is essential to success in trading. It will help you to stay in control of the situation a bit better, and reduce the stress level.
In conclusion, many people do not realize how important the foreign exchange market really is. Foreign currency is traded through the forex market, making the market essential for the economy of nations. Use the tips and tricks by Yee Kok Siong you can begin trading foreign currency in the forex market.
You are looking for expert advice when it comes to forex. This is most likely the greatest resource by Yee Kok Siong that you will ever come across due to the expert advice you will find as well as the clear and concise way that it is delivered. Read on if you desire to further your knowledge of forex.
Never risk more than five percent of your account on a single trade. If you have multiple trades going at once, you need to make sure you have enough available to cover each one. Keeping each at a five percent maximum will allow you to freely trade without worrying about stretching yourself too thin.
Forex trading is not a quick income scheme. You can make money on forex but it requires skill, patience, and knowledge. Ability to analyze trends, reading charts and critical thinking can set you up for success. Rely only on proven facts, logical analysis and your own experience when making trading decisions.
Pay attention to your trade sizes to avoid getting caught in a downturn. Novice forex traders will try to catch quick movements in the market and not pay attention to how much they are risking. Just because you see the potential to make a bundle, doesn't mean you should. Be cautious with how much you are throwing after one trade.
Despite its complexity, the forex market subscribes to the KISS principle. (i.e., Keep It Simple, Stupid) There is little benefit to employing obtuse and over-analytical forex strategies if the trader using them does not understand how they work. Simple principles that the trader grasps thoroughly are always preferable to complex tactics that are inexplicable to their users.
Don't overpay for forex trading services. Most brokerage firms that offer forex trading do so for a no-commission basis, which means the profits are higher to you than for commissioned stock trading. While there is always someone to pay in investments, forex can be an option which requires less of an initial pay-out from you.
Remember that you are not trying to challenge the market. A big mistake that many beginning traders make, is believing that they are out to fight the market, when realistically they should be trying to read it. Keep in mind, that the market is not out to get you and that effectively reading it, is the key to maximizing your profits.
Stop trying to buck the trends of the market. You want your money to flow with the general course of the market. When you are betting against the trend of the market, you are deciding that you can predict the future better than the trends. The market works in the favor of the trend trader.
Work-at-home jobs are steadily gaining in popularity among adventure-seekers. One of the several at-home careers is trading foreign exchange currencies. With a little practice, analysis of the currency markets around the world can become a lucrative adventure for you. Be prepared to lose a little at first but constant monitoring will eventually turn you into an expert.
You want to know the best information available when dealing with forex. Take a minute or two, and go back to review all of the tips and tricks provided by Yee Kok Siong because this will help you find success on a much greater scale than you might have previously thought.
Most people get their introduction to financial trading through the stock market. After all, it is the oldest and largest financial market in the world, right? Wrong! The forex trades over $2 trillion (with a "T") a day, and has been around as long as money itself. What's more, the forex is even easier for individuals to participate in than the stock market-and best of all, there are no commissions on forex trades!
That is one difference. But there are also plenty of similarities. Since most people have a relatively strong understanding of the stock market, and many may be considering a move from the stock market to the forex, this article will explore the differences and similarities between the two financial markets.
As noted above, there are no commissions on forex trades. This is because everything is done electronically. In fact, there is no physical place known as "the forex" -- it exists entirely in cyberspace. That makes for much lower overhead, hence the "free trades" (see similarities for why trades aren't exactly free), and also allows for a twenty-four-hours a day trading platform, five-and-a-half days a week.
Secondly, while many stock-market investors use margin, most don't. In the forex, everyone uses margin -- and to a much larger degree than anyone uses it in the stock market. In the stock market, margin is capped at 50%. This means that if you have $5,000 in your account, the maximum value of stock you can purchase is $10,000. But in the forex, typical margin ratios are 100:1, meaning you can control $100,000 of worth of currency with just $1,000 in your account! This is one of the major appeals of the forex.
Thirdly, while there are 13,000+ stocks for stock-market investors to follow (and even more mutual funds, ETFs, etc.), there are essentially eight major currencies (and only seven currency pairs) for forex traders to follow.
Well, forex trades aren't exactly "free." Just like in the stock market, there is a bid/ask spread. What this means it that the market maker will pay you less for a currency than the price for which he is willing to sell it to you. For example, you may be able to buy $1 in U.S. currency for $1.0905 in Canadian money, but when you want to turn around and buy back Canadian dollars, you will have to pay more than one U.S. dollar to get back your 1.0905 Canadian dollars.
Perhaps the biggest similarity between the stock market and the forex is the use of technical analysis -- also known as "chartology." Technical analysis principles hold up no matter what asset is being traded, so if you've become a master candlestick-reading stock trader, you can easily apply your talents to the forex.
Finally, when placing a trade, many of the same options are available in the forex as in the stock market. Limit orders -- which set the maximum price you're willing to pay or the minimum price you're willing to receive -- can be used in the forex just as with stocks, as can stop losses.
There are a lot of similarities between the stock market and the forex, and some experience trading stocks is a good thing to have under your belt. But far superior is experience actually trading currencies, and this is not a Catch-22. You can trade currencies before you really join the forex by opening a forex practice account. Most forex brokers offer these accounts, free of charge, which let you get your feet wet without the risk of getting soaked. Learn all you can about the forex, try out your strategies in a practice account, and in little time at all, you'll be ready to swim with the big fish in the biggest pond in all of finance -- the forex!
Yee Kok Siong is an arbitrageur and an investor. Mr. Siong is a self-motivated entrepreneur who believes that no market is perfect and it is up-to an individual to understand that imperfect gap and business opportunity and make the most out of it. He shares his experience and suggestions regarding forex market through his blog.
The Forex market is known to be a very lucrative market, with trillions of dollars exchanged daily. To get started in the Forex market and make the most of your investments in it, you need to select a suitable broker. Forex brokers do not charge a commission, but generate their income from the difference in the sale and purchase price of currencies at any given point of time. This difference is referred to as the ‘spread’, and is calculated in ‘pips’. To save money, choose a broker who offers lower spreads on your Forex investments.
Select an appropriate broker
While in the equities market brokers function independently, in the Forex market they are usually registered with banks and other kinds of lending institutions. The reason being, these brokers require large amounts of capital to process Forex transactions. Forex brokers must be registered with the Futures Commission Merchant (FCM), and they come under the purview of the Commodity Futures Trading Commission (CFTC). To ensure that you are dealing with the appropriate Forex broker, you can check his or her website, or that of the organization where the broker is registered. It will be worthwhile if you select one who offers additional services, such as technical analysis software, real-time Forex charts, up-to-date news and data, and online technical support. You could request your broker to provide a free trial, for a limited period, to check the efficacy of these services.
The next step is to open a trading account with your broker. The minimum amount required to open it differs according to the various kinds available. Essentially, it will depend on the amount of capital you have, and the average amount you intend investing in the future. For example, a mini-account may require a minimum investment of about 250 dollars, depending on the broker. Premium accounts are also available, which may require you to trade with a minimum of around 10,000 dollars or more, again according to the broker. Mid-range accounts, which fall between one to two thousand dollars, are considered the best for small investors.
Conduct fundamental analysis
Since envisaging the future economic scenario of the whole country can be uncertain, it is often very difficult to accurately predict the future value of a currency. However, you can use some of the economic indicators available, such as Non-farm Payrolls, Purchasing Managers index (PMI), Consumer Price Index (CPI), volume of retail sales, durable goods turnover, and others to get a general idea about a country’s existing economic status, and its future prospects.
Conduct technical analysis
Currency price fluctuations occur due to changes in the demand-supply scenario. To predict the future course of a currency, you need to examine the prevailing price trends by using technical analysis tools like the Elliot Waves, Fibonacci studies, Parabolic SAR, and Pivot Points. Since some technical analysis tools are time based, a few modifications will be necessary to suit the requirements of the Forex market, which operates round the clock.
The turnover generated by the Forex market is the largest amongst any other market, making it the most attractive investment destination for many people. You need not be a financial wizard to succeed in the Forex market; all you need is a basic familiarity of how the market works, and the patience to overcome the usual initial glitches.
This piece of information is shared by Yee Kok Siong, an arbitrageur and an investor. Mr. Siong is a self-motivated entrepreneur who believes that no market is perfect and it is up-to an individual to understand that imperfect gap and business opportunity and make the most out of it.
To know more about him, please visit here: https://yeekoksiong.wordpress.com/about/