By Endru Djusena

Unstoppable growing numbers of daily volume transaction added with availability of mini account have made Foreign Exchange trading become one of primary choose to materialize unlimited income.

What is mini account? In case you never heard about it, in essence, through mini account you can start trading currency with small capital as low as $300. This mini account has become standard in currency trading industry. So, no matter which broker you use, they would likely have mini account to offer to their customers as one avenue of trading vehicle.

The Gold-digger of New Century

Remember long times ago when Gold Rush infected entire United States nation? People from all ages and cultures went many thousands miles looked for gold. Spent whole days and nights dug from one river to one river, from one mountain to one mountain.

After decades, it seems once again Gold Rush comes again. But this time it is not just infected United States but a whole world.

The invention of World Wide Web has brought so many opportunities. Unlike 50 years ago, now people can do trading from the comfort of their bedroom. With just a few clicks you can make hundreds of thousands of dollars per year to spend in any way you like, now compare that with 10 hours per day tiresome MBA job.

With unemployment rate as high as now, you will get lucky if your MBA job even pay $50,000 per year. This brings even another venture such as currency trading becomes attractive avenue to choose.

How You Can Make Hundreds of Thousands of Dollars from Trading Currency

Have you ever wondered how there are 23 years old kid silently make hundreds of thousands of dollars trading while so many adult above his ages struggling even to cover monthly bill?

Because he has a system, he has a proven method to identify when to enter and when to exit. And the truth that is all you need to think when it comes to make five figures income from trading. It is so simple that a lot of people can”t believe it.

The truth you don”t need a master of finance degree from world-class university to make a living from trading.

All You Need is 4 Simple Steps

All you need is these 4 simple steps to create millions of dollars trading system:

Step 1 - identify the direction of the trend
Step 2 - identify when to enter the market
Step 3 - identify when to exit the market
Step 4 - Good money management

And my friend, that is all you need to figure out and you are on your way to holiday all of your life with pocket full of cash.

About The Author

Discover how you can make 5 figures income from forex trading in 90 days - Guaranteed. Visit us at http://www.yourtradingblog.com/forexcourse.html

By Gerald Greene

Since the last G7 meeting about two weeks ago the price action of the US Dollar suggests that an important bottom may have been reached against the Euro. The Euro made an all time high against the Dollar at just above 1.6000 only three trading days ago. The 1.6000 level was a widely anticipated one by forex traders. Early Thursday morning on April 24, 2008 we are just under 1.5700, so a sharp reversal in underway at the moment.

The same type of price action can be seen in Dollar Yen. From a recent low of under 100.00 the Dollar is trading about 104.00 this morning and looks ready to move quickly to challenge the 105.00 level.

While a few day trading action does not make a trend the Dollar’’s new strength must be respected. While the FED reserve will probably cut interest rates again at its” April 28th and 29th meeting forex and bond traders expectations are now that the rate cut will be only by 0.25 basis points instead of the 0.50 basis point cut expected just a few days ago.

This change in sentiment is caused by the increased inflationary pressures that are occurring in the US and indeed around the world. With a lower Dollar helping to accelerate the increase of all imported goods into the US inflation has flared up in an alarming way, especially in crude oil prices and food prices.

The Fed has a tough decision to make at its next meeting. A 0.25 point rate cut would signal that the rate reduction business is over and that the Fed will begin to focus on fighting inflation even if it means that the economy slides further into a recessionary phase.

This is what the forex markets seem to be anticipating and would explain the sudden strength in the Dollar. Once the Fed actually increase rates you can expect to see the Dollar zoom to the upside. We could be back to 1.3500 Euros to the Dollar.

Interestingly enough once the Fed starts to increase interest rates the stock market will likely take a big hit and the tendency of the risk trades in Dollar/Yen to track movement in the stock market would be broken.
This means as stocks and bonds fall the Dollar would tend to rise.

Certainly, it is too early to tell if an important top against the Dollar has been reached by the Euro. The Eurozone economies have their inflation rate kicking to the upside too and seem to be willing to raise rates in an effort to bring the inflation rate down. It is therefore possible that the US will begin to increase rates but will be confronted with increased rates from the Eurozone as well.

It is the interest rate differentials between the Euro and Dollar that traders will be focused on. If the interest rate differential begins to widen in favor of the US currency you would expect that the Dollar will gain ground against the Euro.

About The Author

Taipan is the pen name used by a retired forex trader and portfolio manager who worked in Asia for over 20 years. The nickname was acquired in Hong Kong and is now used for a number of financial related blogs. One of them is at http://www.forex-trading-guru.com

By Endru Djusena

Have you ever dreamed for a job when you can work whenever you want to? Without any needy boss that keep your neck strain? And you can take vacation whenever you want to, wherever you want to?

Become a forex trader may become an answer to your dream. Look it is not exaggeration, there are people who really live that kind of lifestyle.

Some of them making billions of dollars, trading from the comfort of their bedroom, using nothing but their pajamas! Can you believe that?

Knowing Your Self

So what is the first step to become successful forex trader? No it is not about reading hundreds of pages of investment book or academic literature, it is far simpler than that.

There is an old adage “know yourself before you know your enemy”. This old adage holds more truth especially in forex trading. Knowing what kind of trader you are, and what kind of risk you can afford to take is far more important than knowing zillions of indicators.

Too many people failed because they don”t know what kind of risk they can afford to take. Can you risk 5%, 10%, 20% or more of your initial capital without affecting your current lifestyle?

Think about the answer can differentiate between success and failure in your forex venture.

Knowing Your Chart

Next lesson is about knowing how to read chart. Don”t put your hard earned money listening to what so-called “Wallstreet Pros” or “The Next Big Tip from Financial Network”.

If they are so great, they don”t need to share those stuffs about which one to buy, when to buy, and when to sell. I mean they can make millions of dollars silently, so why they need to share those stuffs if they are that great?

It is better to put your hard-earned money at your own discretion, rather than following someone advice and losing it all.

Learning how to read chart may become the best investment you ever made in your investment education. Because what all is said and done, one picture can explain more truth than thousands of words.

Knowing Good Money Management

Good money management will always be crucial component in wealth creation. Learning good money management can separate between rich people that live in condo at Trump Tower and average people that struggling to pay paycheck after paycheck.

Simply to say, good money management is knowing about how much risk you can take to afford, and how much money you need to re-invest again to make your money nest grow.

Know those 3 stuffs and you are on your way to life you always dream of. But this time it will no longer dream, it will become reality.

About The Author

Discover how you can make 5 figures income from forex trading in 90 days - Guaranteed. Visit us at http://www.yourtradingblog.com/forexcourse.html

By James Woolley

Backtesting technical indicators and viewing historical charts of currencies or stocks, for example, can provide useful information about whether a technical indicator or combination of indicators can be relied upon to help make profitable trading decisions.

However in my years of experience as a forex trader and having spent hours on end poring over historical charts to see how effective a particular indicator or system is, there is one thing I”ve learnt and that’’s that historical data can very often be misleading.

Often you will find that the latest technical indicator that you”re testing out has proven to be extremely effective at predicting forthcoming price moves based on historical charts, but when you come to trade this indicator in real time the results are not as profitable as it would seem from your past analysis.

This is because there are certain indicators that repaint data in real time that doesn”t necessarily show up in historical charts. They may change or give a clear signal during a particular candle period, but after the candle or bar is closed, there is no evidence that such a signal ever took place.

This is why real time trading is so much harder than it would seem from analysing price charts from the past.

An example of such an indicator is any of the moving averages. Let’’s take the EMA (Exponential Moving Average) as an example.

Often you will see a shorter term EMA cross a longer term EMA in real time, which is very often a strong signal, but if the price suddenly reverses then the shorter term EMA will also reverse and so a crossover may not happen at all.

Therefore when the current candle closes it will appear as if a crossover never actually happened even though in real time it did briefly and you could have made a trading decision based on this crossover. So this is an example of how historical data can be misleading and doesn”t always tell the whole story.

Similarly there are are a number of other repainting indicators which can also change or reverse in real time, but which don”t necessarily indicate this when viewed later on on a historical chart after the candle is closed.

So overall you have to be very careful when viewing past data because often the chart will tell a different story after the candle or bar has closed than what actually happened when you were trading live. If historical patterns and trends played out exactly in real time as they appeared to do in the past, with no misleading or false signals, then we would all be extremely wealthy.

About The Author

Click on the following link to read James Woolley’’s FXcast review and to learn all the latest tips and strategies related to forex currency trading:

http://theforexarticles.com

By Jason Fielder

Not many people would think that a theory developed for roulette and other similar gambling games could lead to a strategy for managing money in the markets - but the “Theory of Runs” does just that. The theory of runs is the theory that can link gambling and money management together.

The theory of runs is a theory that can be applied to high-leveraged or short-term trading, which is part of the reason that many traders will try to use it in the Forex market - since the Forex market works with high-leveraged and short-term trading.

To give you an idea of the theory of runs, think of a roulette wheel. On a spin there is a 1 in 2 chance, or 1/2, that the ball will be either black or red. So in theory, there’’s also 1/4 chance that there will be two black in a row or two red in a row, and the odds get smaller and smaller as you continue.

The theory of runs assumes that if the pick comes up red four times, then the chances are far greater than 1/2 that the ball will come up black on the next roll. Since there is only a 1/32 chance that the ball will go red five times in a row, the theory is that if the ball has already gone four times in a row, that somehow that fifth spin due to the law of averages if far more likely to go the other color than the basic 1/2.

Sports bettors will sometimes use this to explain why there will always be a “bad week” to average things out even after doing all the research on their picks.

The same example can be used with flipping a coin. If I flip a coin five times in a row, the chances of it landing heads on the sixth (in theory) are 1/2, but if the coin was heads all five times before that (a 1/32 chance), then the theory of runs is that the coin must become more and more likely to land tails with each flip.

Any time the “theory of runs” is being applied, it relies on 2 major conditions:

1. There is NO statistical advantage in occurrence of profits and losses
2. Theories must stress money management under adverse conditions

In the Forex market, Martingale and Anti-Martingale trading methods take this theory of runs into account. A martingale method suggests that the initial bet should be doubled each time a loss occurs, because after a win the better gets back to even, and then bets at the original investment once again. DO NOT USE THIS FOR TRADING THE FOREX!

An Anti-Martingale method is the exact opposite. Winners are doubled until a preconceived goal is reach, and then after that run is reached, you stop immediately and withdraw your money before the streak ends. Or, you keep adding more money until you have a loss.

These methods of trading Forex are directly related to the theory of runs, and are methods for trading the market. Each has its strengths and weaknesses, though many traders prefer a proven system that isn”t based on gambling theory.

About The Author

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder - Founder, ForexImpact.com

By Jason Fielder

It’’s hard to believe that a 400 year old way of tracking a commodities market is still one of the most popular and efficient ways of graphing the Forex market today, but that’’s exactly the case with candlestick charts. The Japanese were the first to use technical analysis, and the story goes that candlestick charts were an invention of a Japanese man named Homma.

There was trading in commodities in Japan, specifically in the rice market starting in the 1600s. In the 1700s Homma discovered that while supply and demand was a basic truth, he noticed there was also a direct link between the prices in the markets and the general emotions of the traders involved.

Homma realized that he could benefit from understanding their emotions to help predict the future prices. He was one of the first to understand that there could be a vast difference between value and price of rice - that perceptions could be used to take advantage and make a profit!

A candlestick chart is so called because prices are measured with a bar and two lines on each side, making it look like a candle. The color determines whether the price rose or fell during the predetermined amount of time. The line on top of the bar measures the absolute highest price achieved outside of the open to close range during the day, while the bottom line is the absolute lowest price outside of the open to close range.

There are four prices that are tracked for each measured amount of time during a trading period. Depending on the chart the bar could represent a week, a day, four hours, one hour, 15 minutes, 5 minutes, or something else, so pay attention to the time frame. The four prices in each candlestick are the high, low, open, and close. The high is the absolute highest value the currency achieved during the entire period while the low is the lowest value. Open is still open, and close is close. Just that easy.

The color of the bar will depend on whether the currency ended up higher than the open or lower than the open at the end of the measured session. Often there will be green for gain and red for loss, or white and black, but the two colors really don”t matter, as long as you understand what each one represents. Why are candlestick charts great to use?
1. You can see the open, close, high, and low all in one glance
2. You can access a lot of information easily and quickly at a glance
3. Trends are very easy to spot at a glance once you”re used to these charts

This kind of chart offers you an incredible amount of information and makes finding and locating potential patterns and trends far easier than any other type of graph or method. This will be a major tool for analyzing currency pairs, so it’’s one you will want to become familiar and comfortable with to add in your Forex arsenal.

About The Author

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder - Founder, ForexImpact.com

By Ian Armstrong

Forex trading can be fun and lucrative, but if not done properly, it can also take more time than you have to manage it. In order to have your Forex trades managed the way you want them to be, you can set up Forex orders. These orders will request that your broker buy, sell or close out your position at specific times, deemed by you.

The three most common types of Forex orders are limit orders, market orders and stoploss orders.

A limit order is an order you place to buy or sell at a certain price. For example, let’’s say you buy Pounds Sterling and sell US dollars thusly by issuing the following market order: GBP/USD = 1.9710/1.9715. You can then set up a limit order to sell Pounds Sterling when the Forex quote has increased by 50 pips, such as with the following: GBP/USD = 1.9760/1.9765. If you wish, you can also utilize a time frame for your limit order. For example, you can request to close the trade at the end of the trading day, whether or not the price has gone up by 50 pips. An alternative to this is that you can request that the trade would continue until the price has either increased by 50 pips or you cancel the trade altogether.

A market order happens when you sell or buy currencies at the current market price. This is what usually happens when you open an order.

The stoploss order is an order whereby you order your trade closed if the market should move against you. For example, if you buy Pounds Sterling when the quote is: GBP/USD = 1.9710/1.9715, you could order a stoploss to close the trade if the quote goes below GBP/USD = 1.9690/1.9695. This would mean that you would only lose 20 pips plus the bid/ask spread.

Other types of orders include:

Good till Canceled, or GTC: This keeps your trade open until you order the trade closed, by issuing a market order.

Good for Day, or GFD: This order closes your position at the end of the trading day, which is 5 p.m. Eastern standard time.

Order Cancels Other: This type of order is a mixture of two stoploss or limit orders. As an example, you could set up an OCO to sell your holding of Pounds Sterling when your Forex quote is at GBP/USD = 1.9760/1.9765, or you could close your position if your Forex quote goes below GBP/USD = 1.9690/1.9695.

Usually, GCC and GFD orders are used in conjunction with limit orders.

If you are new at Forex trading, it’’s perhaps best to start with the first three order types mentioned. In other words, stoploss, markets and limit orders are the basics you should start with. It’’s most important that you familiarize yourself with a stoploss order before you start trading in earnest. Most Forex trading sites will let you familiarize yourself with their procedures by doing mock trades until you are completely familiar with them. This is imperative that you do this and familiarize yourself with a stoploss order in particular before you begin to trade with real money. Otherwise, if the trade moves against you, you could lose all the money within your account.

In the vast majority of circumstances, a reputable broker will not let you keep trading if your account drops below zero. Even so, this may not protect you in volatile markets where currency values can change very quickly. Therefore, there’’s a slight chance that you could lose more than just your equity in your account. However, this is only likely if you trade with margins that are less than 1% or if you have too much leverage, which means that you don”t have adequate unused margin in your account.

About The Author

Ian Armstrong is an avid Forex enthusiast.

Some of the most popular trading systems have been objectively reviewed - based on actual performance - at http://www.forexshortcuts.com/trading-systems.php

By Andrew Shiveley

Over the past six months it seems like almost every major finance magazine has published an article related to the weakness of the dollar. If you are a currency trader like I am then this topic is particularly relevant to you because you need to know what the long-term trends of each currency are so that you can make profitable trades.

What you probably have not been reading about in the news are some of the events that have been happening behind the scenes or that will be happening in the near future, and why the American economy will ultimately regain its strength.

The single most significant factor affecting the American dollar is the trade balance, and the biggest portion of this problem is related to our war in the Middle East that should never have been authorized, yet is still costing us billions of dollars every single day. I will not spend a lot of time talking about the horrendous actions of the Bush administration (namely that they defrauded their way into office in order to wage a cultural genocide for the sake of gaining control over oil), but there are truly good things that have been happening behind the scenes and that will be happening in the near future.

You will not hear about many of these things in the mass media news outlets in America such as CNN and ABC, and there is an exceedingly simple reason why these manipulated news networks try to convince the American people that there is a threat of danger when really none exists at all: War is profitable. There are powerful groups in our world today whose agendas are motivated by greed and control, and these people engage in heartless wartime profiteering so that they may satisfy their lust for power. But it is not all bad: I will discuss some of the wondrous events that are causing these groups to rapidly lose their power, and what all of this information means for the currency markets.

The Bush Administration has dropped to single-digit approval ratings, and millions of Americans have gone to websites such as Impeach Bush and spoken out about their opinions of why this man is no longer our leader. Dennis Kucinich, a representative from my home state of Ohio that I have had the pleasure of meeting, is leading the way for the eventual impeachment and forcible removal from office of Bush and his war-mongering cronies.

The Bush Administration has inadvertently caused a global recession with their desire to wage a heartless war, and the signs are strong that the global community has finally come together and told these warmongers “Enough!” They are rapidly losing power as people are becoming more conscious and aware of the fact that they have been lied to by the controlled mass media outlets.

If you are looking for really good forex trading opportunities, I would be willing to bet that when the news releases come out stating things such as Bush’’s impeachment or other things that peace-loving people the world over are working to create, there will be a large jump in the value of the dollar in the window of a day or two.

The really good news for the dollar and for the American people is coming from Japan. The Japanese are the largest holders of foreign dollar reserves (around $5 trillion dollars), and they have openly declared that they will no longer fund the American war effort.

The reason why I remain optimistic about the future of the American economy is because of the two main presidential candidates that have come forward to lead our country. In my mind (and in accordance with recent political data), the two main candidates in the 2008 presidential election will be Barack Obama and Ron Paul. Both of these men are benevolent leaders and are sufficiently equipped to rectify the errors of the Bush Administration, and Ron Paul has openly stated that he will abolish the Federal Reserve and the IRS to create a more prosperous America.

In the last paragraph, notice that I said the “American economy” and not the dollar. This is an important point, because many benevolent and powerful leaders are discussing new potential monetary systems for the United States that can lead to greater prosperity. The Federal Reserve system is based upon perpetual debt, and it is not sustainable because it steals wealth from the American people and puts it into the pockets of a few. This is all very good news, and so you may be wondering how this plays into your forex trading.

The dollar will continue to go down so long as our war is not stopped, and so for the next few months until the Bush Administration is forcibly removed from office or until they simply fade away to be replaced by a new leader, there will still be a downwards trend for the USD.

After our war ends due to internal political pressure from our benevolent leaders as well as financial pressure from the Japanese, many Japanese leaders are discussing the possibility of using their foreign dollar reserves to create a global humanitarian mission where they can bring knowledge and modern telecommunications access to countries that have not been able to provide it for themselves.

As this happens the American economy will regain strength because our trade balance will become much more sustainable. So ultimately for your forex trading, the downwards trend for the dollar will continue until these big benevolent changes occur, afterwards the American economy (as well as the global economy as a whole) will regain its stability.

About The Author

http://TheCurrencyMarkets.com

If you are looking for free information about how to generate a recession-proof income, currency trading may be your solution.

Read about how to make money in the currency markets at http://TheCurrencyMarkets.com and create a recession-proof income.

By Jason Fielder

Some traders are content with a trading method that only takes one type of strategy, but this doesn”t make sense if you want to make the most of the Forex market - or any market, for that matter. If the market isn”t always going in one direction, why have a system that only trades one direction?

The Forex Triad trading system was developed by Jason Fielder through what he termed as observations, combined knowledge from investing, and common sense. This system was formed with a common sense question: how can you make money off a system that isn”t applicable (or is wrong for the market) literally 2/3 of the time?

Basically, the market is always doing one of three things, and only one of three things. The market is either:
1. Trending
2. Counter-trending
3. Breaking out

That’’s it. Those are the only three patterns that the Forex market can be in, and the market will always be in one of these three states. So how can a breakout method be profitable when the market wasn”t usually breaking out? Same for trend and counter-trend. Jason Fielder wasn”t the only one who thought this, as several Forex trading systems try to be “adaptable,” having various technical trading strategies set up so that when the market goes a certain way you know what to do.

There are several different Forex trading systems that now have multiple strategies for trading, all based on how the market is moving. The Triad Trading Formula was the system developed by Jason Fielder to adapt to the market.

A portfolio is something every trader and investor knows about. Spread the eggs around so the collapse of one market (see Enron) doesn”t wipe you out. So if that is commonly held as wise practice, why was everyone trying to find a single way to trade the Forex? Part of the reason for this might be that it’’s easier to teach a trading strategy that only has to deal with one part of the market. Unfortunately, that’’s not practical in a real life situation.

The Triad Formula of trading is a portfolio of strategies that gives a trader the tools to always be making money in the market, whether the market is trending, counter-trending, or entering a breakout.

This way, no matter what the market is doing, there’’s a strategy that can be used to profit. In theory, this will allow you the steady and impressive profits that you”ve been yearning for all along, with as much security as can be found in the Forex market.

About The Author

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder - Founder, ForexImpact.com

By Ian Armstrong

How is it possible to make real money by trading in the Forex market? Two words: Margin Trading. Margin trading is trading using borrowed money.

As you recall from part one, Forex is traded in lots, usually of $100,000. So you cannot for instance, purchase a hundred, or even five hundred units of any given currency. Some Forex dealers may offer Mini-Lots, which are $10,000 - or Micro-Lots of $1,000. Fortunately, you don”t need to have $100,000 lying around in order to get started in Forex trading.

Margin Trading is used extensively in Forex trading. The broker is paid a security margin, which will typically be between a quarter of a percent and five percent. You will then have control over a much larger amount of money. To trade a lot of $100,000 you will need a margin of $1,000 for the broker. You will need more than that in your Forex account, of course in case the trade does not work out well for you.

Say that at Ten in the morning, you sell $100,000 USD and purchase Euros. At that point, you will pay $1.4725 per Euro, meaning that you will be able to buy 67,912 Euros. Your Euros then have a value of $99,967 (you lose $33 from the bid/ask spread). You then close the trade at 5PM and sell your Euros and buy US Dollars. You”ll get $1.4770 per Euro, netting you $100,306. This will mean a profit of $306 for the day.

Margin trading is a form of leverage - where a small amount of money is used to leverage, or control, a much larger amount. Using Margin Trading, you can make or lose money from tiny changes in the relative value of currencies on the Forex market.

To trade this way, you will need more than the amount of the margin in your Forex account. In the case in the above paragraphs, you would need to have had more than a thousand to begin, otherwise you would have a negative amount in your Forex account.

Say you began with twice that in your Forex account. Again, $100,000 USD is sold and Euros bought in the morning. Your used margin would be $1,033, leaving a margin of $967 in your account. Now suppose the trade goes poorly for you. At noon, the quote is EUR/USD = 1.4578/1.4583, making the 67,912 Euros you purchased earlier worth $99,002. Your usable margin would then be only $2, and your trade would be automatically c;closed to prevent your account from going into the red. As a result, you would lose $1,998.

Now suppose that you had had $3,000 in your account, and your trade could have continued. If things had kept going badly, and the quote at one PM was: EUR/USD = 1.4570/1.4575 then your Euros would be worth $98,948. Your margin would be $2,052 used, with $948 left in your account. You could then keep trading, and hope for the Euro to recover against the US Dollar. If this occurs, and by five PM the quote is: EUR/USD = 1.4770/1.4775, you could then sell your Euros and make a profit of $306 for the day.

You should try to have at least twice your margin in your account always. The best move, if possible is to never trade with more than 10% of your Forex account at any given time.

Margin Percent = 100/Leverage
Leverage = 100/Margin Percent

About The Author

Ian Armstrong is an avid Forex enthusiast.

He recommends using “Easy Forex” as a good way to start trading with small capital (as little as $100 USD), high leverage (200:1), and tight spreads. Full details at http://www.forexshortcuts.com/plat-easyforex.php