Forex ย่อมาจาก Foreign Exchange บางครั้งเรียกย่อว่า FX คือ อัตราแลกเปลี่ยนเงินตรา และตลาด Forex ก็คือ ตลาดทุนแบบหนึ่งคล้ายกับตลาดหุ้นบ้านเรา แต่มีขนาดใหญ่กว่ามาก ถ้าให้ถูกต้องเรียกว่าใหญ่ที่สุดในโลกก็ว่าได้

สิ่งที่ซื้อ-ขายกันใน ตลาดนี้คือค่าเงิน โดยซื้อเงินสกุลหนึ่ง ในขณะเดียวกัน ก็ขายเงินอีกสกุลหนึ่งออกไป หรือเป็นการจับคู่แลกเปลี่ยน ซื้อขายค่าสกุลเงินนั่นเอง ตัวอย่างเช่น เงินสกุลยูโร/ดอลลาร์สหรัฐฯ (EUR/USD) หรือ เงินสกุลดอลลาร์สหรัฐ/เยนญี่ปุ่น (USD/JPY) เป็นต้น

ในตลาด Forex แต่ละวัน มีมูลค่าการซื้อขายต่อวันสูงถึง 1.9 ล้านล้าน เหรียญสหรัฐ มากกว่าทุกตลาดทางการเงินในโลกนี้รวมกันเสียอีก

ตลาด Forex ที่ใหญ่ๆ อยู่ที่ นิวยอร์ค ลอนดอน ญี่ปุ่น รวมถึงที่ ออสเตรเลีย และยุโรป เวลาทำการหรือเวลาเปิดปิดในแต่ละพื้นที่ก็จะไม่ตรงกัน และจะคาบเกี่ยวกันอยู่ ทำให้ผู้เทรดจากทั่วโลก สามารถเข้าตลาดตั้งแต่ ตี 4 ของวันจันทร์ จนถึงตี 4 ของวันเสาร์เลยทีเดียว เรียกว่าแทบจะ 24 ชั่วโมงเลยก็ว่าได้

แรกเริ่มเดิมที ตลาด Forex นี้จะเล่นกันในกลุ่มพวกขาใหญ่ เช่นกลุ่มธนาคาร กลุ่มกองทุน ผู้นำเข้า และส่งออก จนพักหลังเริ่มมีการเทรดทางอินเตอร์เน็ตเข้ามา และมีโบรกเกอร์ที่ให้บริการสำหรับนักลงทุนรายย่อย และมือใหม่ให้สามารถเริ่มต้น้ลงทุนในตลาด Forex ด้วยเงินเพียง $1 - $500 เท่านั้น ทำให้ีการลงทุนในตลาดการเงินแห่งนี้ แพร่หลายไปทั่วโลก

สรุปข้อดีและน่าสนใจของตลาด Forex

1. ใช้เงินลงทุนต่ำ ต่ำสุดเพียง $1 หรือประมาณ 34 บาท
2. ตลาด online และดำเนินการทุกอย่างผ่าน Internet ตลอด 24 ชั่วโมง
3. คำสั่งซื้อ-ขาย เป็นระบบอัตโนมัติ ไม่มีคนกลาง ไม่่พลาดทุกคำสั่งซื้อ-ขาย
4. สามารถทำกำไรได้ทั้งตลาดขาขึ้น และตลาดขาลง
5. ค่าดำเนินการต่ำ โบรกเกอร์เก็บค่า spreed ตั้งแต่ 1 - 20 pips ต่อเทรด ขึ้นอยู่กับคู่ของค่าเงินที่เทรด
6. มีเงินปลอมให้ทดลองเทรดได้เสมือนจริง บนระบบจริง โดยไม่มีค่าใช้จ่าย

FOREX Software: A Critical Element for Success

FOREX Software: A Critical Element for Success
By: Steve Welker
In most cases when you sign up with a FOREX broker they will provide you with software to execute transactions as well as get market information. Since online trading has been around for quite some time now, the brokers have a pretty solid understanding of what the traders need from trading software. There are two primary classifications of software provided by the brokers; web based and client based.

One of the mandatory services needed by all FOREX software is real time market updates. Since the FOREX market is so fast paced and volatile traders must have data that is accurate to a few seconds to make decisions on when to enter and exit their positions. All brokers make claims that their software will remain updated with a minimum of delay but the reality is that there are a variety of factors that can delay the software displaying updated information.

The users internet connection speed as well as their geographical distance from the broker are probably the two primary issues that can affect the update time. If you wish to be successful trading FOREX it is highly recommended that you have a high speed internet connection and a fairly up to date computer. You might also consider selecting a broker relatively close to you; if you are trading from the US you might want to avoid a broker based out of Australia. During times of extreme market volatility this distance could cause a delay significant enough to cause issues with your trades.

Web Based or Client Based?

Web Based software is not actually installed on your computer it runs on the brokers web site. You only need to have a browser compatible with the software to access and use this software. Client based software is loaded directly on your computer; in most cases you are able to download the software from the brokers site and then install it. Web based software is rapidly growing in popularity as more and more brokers offer it. The primary advantages to web based software are convenience and security. With web based software you can log in to your account and get market updates and place trades from any computer with an internet connection. If you use client based software you are only able to make trades from the computer that you have the software installed on.

As well as being more convenient web based software also offers a higher level of security. During the actual transmission of data both web based and client based software encrypt the transmitted data with a high level encryption. On client software though there is the risk of data being stolen from the client pc by hackers or Trojans.

The most basic software packages will provide you with real time quotes and information as well as allowing you to enter and execute trades. Up to date quotes are provided for most currency pairs and the software will allow you to open or close a position at market prices. The software should also allow you to set up trades with limit orders and stop loss orders. More advanced packages will also offer charting capability that can show you many different viewpoints.

Any good broker will provide you with basic software free of charge just for using them as your broker. Many of your better brokers will offer an advanced version of their software for a fee. The advanced version will give you extra capabilities such as executing trades right from the chart and enhanced analytical ability.
Article Source: http://www.articlecafe.net

Is Forex Trading for Everyone?

Is Forex Trading for Everyone?

By: David Stevenson

Successfully trading the Forex market requires you to have the discipline to follow some rules. If you can "stay the course" and follow your system, regardless of what the market is doing, you can make money trading Forex.

As with most forms of financial investing - stocks, futures, etc., there are risks. There are no crystal balls to show you what is going to happen next, so your exposure to these risks is largely controlled by your money management practices.

Casinos operate, normally with extensive profits, based entirely on risk management. They have learned how to take advantage of probability, which is the same concept traders rely upon, and turn the tables in their favor. They have learned that the longer they can keep a gambler in their facility, the better the odds they will end up with the gambler's money.

Many new or inexperienced Forex traders fall victim to the hype surrounding foreign exchange trading. The electronic trading platforms used by retail Forex traders today, with their ability to display hundreds of "indicators" and present price data instantly, confuse many traders and actually lure them into making poor trading decisions.

Like futures, Forex trading offers high leverage. The readily available leverage of up to 400:1 has destroyed many potential trading careers. New traders, unaccustomed to the volatile nature of Forex, often fall into the trap of over-leveraged positions, which easily wipe out trading accounts.

Forex generally has some of the most predictable trends of all the markets over the longer term. However, many traders lose sight of the long term picture and try to trade based upon shorter term price charts. They believe shorter trends offer easy opportunities for profit, when in truth, most seasoned traders won't even look at charts of less than 1 hour.

The volatility of Forex means that a tight stop-loss order will usually result in being stopped-out of many trades. Too many trades ending in this fashion result in your trading account being slowly eroded away. Traders need to keep their "real leverage" (amount of currency controlled divided by their actual account size) at 3:1 or less. This will allow you to relax your stop-loss settings and enjoy more successful trades.

In the currency market, you don't have to worry (normally) about countries going broke. Typically the prices move in large waves, and if you had deep enough pockets, you could wait for the price to recover to profitable levels. The reality is this process could take years, so money management is again key.

Another benefit of this huge market is it's liquid nature. It's trading volume of approximately 2 trillion dollars per day ensure there can be no insider activities. Even the largest of central banks lack sufficient funds to seriously sway the market. Market moving data is released for all to see at the same time. No one has advance information of pending releases.

In conclusion, trading the Forex currency market is no more difficult than the stocks or futures markets and in fact has several advantages. To trade profitably in the currency market, you need to stick to leverage of no more than 3% to 5% and think "longer term". The lower leverage will allow you to ride the fluctuations which are common to Forex, while enjoying the benefits of long term trending.

Article Source: http://www.articlecafe.net

A Novice Forex Traders Guide To Fundamental Analysis

A Novice Forex Traders Guide To Fundamental Analysis
By: monica hendrix
If you are new to forex trading you have access to a lot of fundamental analysis as the click of a mouse from banks brokers and news wires you can look at and trade upon it - let's look at forex fundamental analysis and how to use it.

A forex trader, who makes trades based upon fundamental analysis, will look at the supply and demand situation in relation to the currency studied, and try and predict the impact of the various factors on its movement and they include:

• Economic growth and economic policy

• Interest rate outlook

• Balance of payments

• Employment

• Trade deficit

• Political Factors

To name but a few but there is a problem when trying to use fundamental analysis:

The facts are there for all to see but price is ultimately decided by millions of different opinions such as you and me and we all draw our own conclusions from the facts and numbers. Furthermore all the news is available in seconds anywhere and this means it is discounted.

With human nature involved and the fact that fundamental analysis is quickly discounted it is almost impossible for the novice trader to execute trading signals on.

If you want a graphic example of how forex fundamental analysis won’t help you make money consider this fact:

The ratio of winners to losers is the same today as it was 50 years ago and this is despite better news more of it and faster communications. So if you are thinking of trading it think again.

A far easier way is to study charts and use technical analysis.

A technical approach takes into account both the supply and demand situation, as well as investor psychology. We can see the impact of both at once and reflected in the price.

Many traders don’t believe that technical analysis works, as it can’t take into account the fundamentals but this is not correct:

Technical analysis assumes that all known fundamentals are going to show up instantly in price action. Technical analysis therefore is simply a short cut way of taking into account the fundamentals and more importantly takes into account human psychology.

The equation for market movement is:

Supply and demand factors + Human perception (investor psychology) = Price action

So if you are thinking of trading using forex fundamental analysis, you can save yourself a lot of time and increase your chances of success, by taking a technical approach - that reflects ALL the factors that influence price and increase your odds of success.

With technical analysis you act on the reality of price - not opinions and therefore trade the truth and not what you or anyone else thinks it might be.
Article Source: http://www.articlecafe.net

Forex Education - Three Keys To Trading Success

Forex Education - Three Keys To Trading Success

By: Kenneth Aikens

Picture yourself as a successful forex trading professional. You feel very good knowing that you know exactly how to diagnose the technical indicators on your forex trading platform. You also feel very good knowing you can implement sound money management along with the mental discipline all forex traders must have. Below we will take a look at why technical analysis, money management and trading psychology are the three keys to forex trading success.

Forex training is very important if you want to get into the world of forex trading. The reason that forex training is so vital is because the forex market is extremely competitive and volatile. Forex training is available via online courses, advanced trading workshops and one on one mentoring. The best place to get forex training is from someone who is already involved in forex trading. Quality forex training is the key to success. If you want to make money and become a successful forex trader the proper forex training is the key.
1. Technical Analysis
Technical analysis is one of the keys to success for a forex trader. If you are new to the study of technical analysis, you may be wondering just what technical analysis is. Technical analysis is the study of market action, primarily through the use of charts, for the purpose of forecasting future price trends. Another important foundation of technical analysis is that price movements are not random, but tend to trend in some direction most of the time. Technical traders use trading information such as previous prices and trading volume along with mathematical indicators to make their trading decisions. Although technical analysis is definitely no panacea, I think that it can be combined with fundamentals and money management to produce excellent results.
2. Money Management
In many ways, forex money management is looked at as a burdensome and highly unpleasant activity. Forex money management is part and parcel of any good trading system. The performance of a forex trading system, in terms of profits, drawdown, or any other parameter you would like to measure, depends on both the trading system itself and the money management rules it follows. Forex money management is one of the most important things you can learn before you actually begin making live trades. The practice or so called demo account will help you get acquainted with the world of online trading and find your own forex money management method. Taking the time to do research, learn good currency trading techniques and making yourself knowledgeable on matters of good forex money management is only going to pay off for you in spades in the end of it all. Besides knowing which currencies to trade and recognizing entry and exit signals, the successful trader has to manage his resources and integrate money management into his trading plan.
3. Trading Psychology
Trading psychology is one of the keys to investment success. Trading psychology is so important because day trading can be a very emotional business. Discipline comes into play when battling fear and greed. One of the basic tenets in day trading psychology is to know who you are fully and completely. In a trading business, one has to be in the right state of mind to support your discipline in this arena full of uncertainties. As we can see, without both a sound method and good discipline to implement it trading may not be successful.
Forex trading is a demanding and potentially profitable endeavor for trained and experienced investors. If you don’t get quality forex training, you are likely to lose money. However, having the proper amount of forex trading training is essential to anyone seriously looking into profiting from the forex market.

We're finished but you're just starting. Your next steps should be to discover and/or implement the ideas discussed in this article. Find a dependable forex trading system. Be disciplined. Implement a reliable money management system. Do these 3 things and you will be on the fast track to becoming a profitable forex trading pro.

Article Source: http://www.articlecafe.net

The Best Forex Software Need Not Be

The Best Forex Software Need Not Be

Expensives

If you’re interested in getting started in playing

the field in forex trading, then you will find that

there are a large number of software programs

101

available. Whether the software programs you

need are desktop based or web based, either

one can be used in your forex trading. There

are many brokers who offer their clients

software packages free of charge or they can be

a part of opening a trading account with a

particular brokerage. Normally the software

that will come with your open trading account

is the very basic model, with the bare minimum

of what you can use, or even need.

Occasionally, these brokers will offer extra

features at a cost. So when you’re considering

which broker to open an account with, you may

want to consider what software packages they

offer to correspond with your account. There

are many web site’s that offer free demo

accounts, allowing you to download different

packages so you can try before you buy. Using a

free demo account will give you a better idea of

what software you would like to use and will

help prevent buyers remorse.

The basic software’s available are the desktop

and the web based. Which ever one you choose

will depend on your preference and other

technical constituents. The forex market is

obviously very dynamic which means that you

will want to get the software that is the most

reliable and up to date connection to the data

as possible. Now, let’s talk about your internet

speed connection. Your internet speed

connection is a very important factor and if you

plan on playing the forex game, you will need

to go from dial up to either DSL, even

broadband if you can afford it. The faster it is,

often the better. Your internet connection

102

speed is a major factor when considering what

forex trading software to use.

Another great consideration would be one of

online security. Most web based forex software

is generally more secure than the desktop

based software packages. If you choose the

desktop software, then all of your information

and your data are stored in your hard drive,

making all your valuable information

vulnerable to a number of security infractions.

If a virus invades your computer, then all of

your personal data and the integrity of your

trading system can be jeopardized. If you’re

hard drive crashes, then all of your important

data will be lost forever. Another threat would

be those hackers who can hack their way into

your computer and gain access to all of your

personal information and trading systems.

If you decide to go with the web based trading

software then most of the maintenance and

security issues are handled by the provider of

the package. The internet based foreign

exchange systems are readily hosted on secure

servers, like the servers that credit cards are

processed on. This will give you more

protection, with less hassle, as your data is

encrypted. Along with this protection, your

software provider will protect you from losing

data by providing mirrors and backups of your

account data.

You may also find that internet based software

is more convenient, aside from the extra

security when you’re considering on what

103

software would best suit your needs. Moreover,

the software will run on your regular web

browser, so there won’t be any software you

would have to download, meaning you will

always have access to the most current features

and versions of that software. In addition, if

you frequently travel, you are sure to

appreciate being able to log in to the internet

from any computer and have all of your

information immediately accessible.

Whatever option you decide to use, choose the

forex trading software that you personally find

easier to use. Just because particular software

works wonders for your friend or colleague,

doesn’t mean it will work the same for you.

If you’re new to the trading game, then it would

be best to have two accounts, one with your

software of choice and one demo account.

Considering that you learn as you play the

trading game, you can keep one account that

you will actually use to trade real money; and

the demo account, to use to test any alternative

moves. You can also use your demo account to

overshadow the trades in your real account so

you can see if you are being too conservative

Forex Trading - Support & Resistance Exposed

Forex Trading - Support & Resistance Exposed

By: Kenneth Aikens

Would you like to know how to be a successful forex trader? Just imagine having the same knowledge that only 5% of all successful forex traders have. The difference between the haves and the have-nots in currency trading is the ability to consistently interpret technical indicators accurately. One technical indicator that many forex traders employ is support and resistance. But what is support and resistance and how is it used by forex traders?

Support and Resistance is the foundation of most of the top trading systems. Support and resistance levels represent pauses in the trend when investors reconsider all information. The idea of support and resistance is vital to understanding and interpreting the forex market. Support and resistance are basically price bands where the price will probably stop falling or rising respectively. Support and resistance are created because price has memory. Support and resistance are by far the most important forex trading technical indicator you will ever find, and the best forex trading option if you want to be on the right side of the market.

Support and resistance are like a floor and ceiling, with prices contained between them. Support like resistance is rarely a precise price; it is more often a relatively contained price range, frequently in the vicinity of past technical patterns. Support and resistance levels on bar and candlestick charts are a major component in the study of technical analysis. Support and resistance come in all varieties and strengths. The length of time that a support or resistance level exists helps to determine the strength or weakness of that level. When a level of support or resistance is penetrated, price tends to thrust forward sharply as the crowd notices the breakout and jumps in to buy or sell. When a level is penetrated but does not attract a crowd of buyers or sellers, it often falls back below the previous support or resistance.

Support

Support is defined as a price level below which it is supposedly difficult for a currency pair or market to fall. Additionally it is a price level at which a currency pair or other security stops falling at least temporarily, hence the name. Support represents the level at which buying pressure is strong enough to absorb and overcome selling pressure. Support defines that level where buyers are strong enough to keep price from falling further. Support lines turn into resistance and resistance lines turn into support.

Resistance

Resistance is the opposite of support and represents a price level or area over the market where selling pressure overcomes buying pressure and a price advance is turned back. Resistance defines that level where sellers are too strong to allow prices to raise further. By the time the price reaches the resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance.

So we have learned that: Understanding the concept and significance of support and resistance is important for profitable forex trading. One aspect of its unique quality is that support and resistance is defined as an area or a zone not a single price level. One of the basic precepts of support and resistance is that once a support level is violated it becomes a likely new resistance level and when a resistance level is penetrated it becomes a new support level.

We end here but in conclusion I hope you the reader were able to discern the major features of support and resistance. Accurately interpreting support and resistance along with other powerful technical indicators will place you well on your way to financial freedom courtesy of currency trading.

Article Source: http://www.articlecafe.net