Forex Trading

I chuckle as I write the title for this commentary for the very simple reason that it is a line heard so often on the sales and trading desks on Wall Street. We can get a sample of “what the smart money is thinking and doing” from a very recent Bloomberg Poll. Be mindful that those polled represent a global random sampling of 1,263 Bloomberg subscribers. Would you like to know what they think of the following? 1. Which national markets will offer investors the BEST and WORST opportunities over the next year? 2. What asset class will offer the BEST and WORST RETURNS over the next year?  3. What do those polled think of their regional economy, the U.S. economy, and the global economy? 4. Where will the U.S. dollar stand relative to the Euro three months from now? 5. How do these global investors intend on shifting their exposures across asset classes over the next six months? (I find this question to be particular...

Spread betting is a risky game of trading in which you can lose more than you have in your account. That's because of leverage. Every time you buy or sell a market, you just need a small fraction of your total trade – a margin, which can be as low as 1-2%. If the market goes against you quickly, then you could be in trouble. That's what most people think – but are they correct? Spread betting has in fact some risks, and losing more than what you have in your account is a real possibility, but depending on your provider and on the type of trades you carry, it can be a really low one. Before going broke, there is a margin call trigger, in which most providers will automatically start closing positions you have in your account until the margin is again satisfied.

The pictures and stories from Japan have shocked us all. The human aspect of this country’s struggle to cope with the earthquake and tsunami tugs at our hearts. The same applies to those in Middle Eastern countries crying out for freedom and democracy only to be responded to with bullets and bombs. While the human factor is not to be taken lightly, the economic consequences are making the most headlines. These headlines helped to bring back some market volatility that reminded me somewhat of 2008. The markets pulled back and rebounded from the news in Japan, Egypt and Libya relatively quickly. However, the indicators that track investor confidence tell us that investors are becoming more nervous about the future. What is the individual investor to do in these volatile times? I would urge you to do nothing IF your portfolio is properly allocated. Why? Investors tend to do poorly when they react to what the market does instead of preparing...

Mark Moskowitz tells you how to manage your money when you're in a trade  

Momentum trader extraordinaire, David "Shine" Shein, discusses the mentality necessary to become a successful trader  

Momentum trader extraordinaire, David "Shine" Shein, introduces you to his world of high velocity trading  

The Forex trading is one of the fastest growing trades of today which has become one of the fastest growing income generating pastimes among many traders. This is because one cannot really say that those traders who were able to make profitable businesses in the field of Forex trading have labored like beasts to profit and harness the potentials of the business. The truth is that these people did not even spend that much for these trades, for most of the time, they have trades other than that of Forex trading. A professional and even a novice trader would know that the Forex trading can offer one the luxury and comfort of being financially secured by having two or more sources of finances while, at the same time, enjoying the goodness of life and leisure. This is made possible only because the Forex trading platform allows traders to trade at their convenience at any time of the day for it has...

If you have had some experience in trading Forex then you will know what a great experience it can be. Just the thought of the rise and fall of your investment will be more than enough to give your blood some shot of adrenaline. The knowledge that you have a good chance of either getting some profits or losing your invested money is motivation enough for you to always be on your toes for whatever changes that could happen in the trading market. Because time is gold in currency trading, you have to always be keen on looking out for the good as well as the bad trading signs before making the decision of trading Forex. Of course, as with any other business venture that involves a great deal of money, trading Forex is not without its possible risks. As an investor, you have to be aware of these and likewise gain knowledge regarding the significance and implications of factors pertaining...

When compared to trading in other financial instruments such as equities, trading in Forex has some distinct advantages. They include: • The Forex market is the largest financial market and thus no single person or entity has the ability to corner or dominate the market. • The Forex market has an average of $3.2 trillion dollars per day. With such a large volume, no one can hope to control the market for an extended period of time. • Taking charge of your own finances. You will be able to harvest better returns than those of mutual funds or hedge funds. • The initial capital outlay is low when compared to equity trading. • The Forex markets moves in patterns. Thus with technical analysis, one can actually predict the trends in the Forex market. • There is a high level of leverage to utilize when it comes to Forex trading unlike the equity market. • With 24 hours trading and its high trading volume, the Forex market is...