Make money fast using Forex

This is all about making a fortune with Forex. Most traders just go with the flow and make average gains, with this article you will learn what makes some traders stand out and a lot richer than others!

We are going to assume that you know how to trade, and has quite an experience in trading.

With simple changes in your trade selection, money and risk management, and mindset, you can change that average gains into larger ones!

Fast money is in Forex, it is a lifestyle. here is it how its done.

Tip 1 . Embrace Changeability and Risk With a Smile

Forex systems have instability.

If you cannot manage and calculate your risk, then don't ever think about trading in Forex. Many traders back away from forex because of this ( why do you even traded in the first place?). But taking manageable risks has its rewards.

It's just simple, you know what your losing if ever it doesn't work out, yet what you gain is unpredictable but sure is high! That is what I call excitement, my friend.

To a well-educated Forex trader, this is something you shouldn't be afraid of, might as well embrace it.

Tip 2. Trade Less, gain more

Most traders think that if they don't trade, another door has closed, or miss some move. The tendency, they trade frequently. Most of the trades that come big come a few times in a year. Focus on the trades that make the really big gains. Be alert, and informed.

Tip 3. Diversify is a no-no

Most Investors accept the fact that diversification can make money fast - in reality it does exactly the opposite.

Tip 4. Money and Risk Management

This article has been concentrating on the Big gains, because this is your money, so every penny should be controlled, this is where money management kicks in.

Control your risks, but increase your chances of success:

- Give yourself staying power by buying options at or in the money, this prevents you from getting stopped out. Many traders lose not by the market direction, but because they were stopped out by a instable move, and options will give you staying power.

- Keep your stop in its original position - until the move is well in profit, before moving it up.

- Trading fast and selectively - have the courage to trade when you feel it is good. and enjoy the cash.

Tip 5. Compound growth has its benefits

The way to make money fast in forex, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over a million dollars, in under 10 years.

Break the norm, and gain more. Follow some of these tips and make your way into the big gains!

Asian Markets reach 5 month high

Current Futures: Dow +25.00, S&P +2.40, NASDAQ +3.25

Every major Asian stock market advanced on Thursday, following the strong positive momentum seen during the U.S. trading hours. The strongest gains were seen in the Hong Kong’s Hang Seng index, which advanced 1.90%, after Datang International Power Generation reported better than expected results.

Helped by the strong gains seen during the last few weeks, the MSCI Asia Pacific index, which tracks the performance of the most developed 14 countries in the Asia Pacific region, reached a five-month high. At the same time, the Japanese index Nikkei is trading at the highest value it has touched over the previous 10 months, despite another round of weak macroeconomic data.

During the Asian session, a report showed that the Japanese unemployment rate reached 5.4% in June, the highest rate seen over the last six years. In Japan as well, the CPI report showed that prices declined 1.7% in June from one year earlier, the strongest pace ever recorded. For years, the Japanese central bank has tried to fight deflation, but until now, it has never really succeeded. Nowadays, the BoJ infuses massive amounts of liquidity into the inter-banking system, but still has had little effect on the real economy. Some economists argue that the Japanese economy had has run into a liquidity trap, since the economy cannot absorb any more liquidity.

Overnight, the Japanese Nikkei added 139.69 points (1.37%) to 10,304.90. The Australian S&P/Asx advanced 46.70 points (1.11%) to 4,237.10

Crude oil for August delivery was recently trading at $67.40 per barrel, up by $0.40.

Gold for August delivery was recently trading higher by $2.40 to $939.70.

TeamLFB provides forex related market analysis and trade signals

(from forexpros.com News)

Economic Indicators

Economic indicators are those signals that are all around that will show you which direction the market is currently heading. It is vital to your success as a Forex trader that you keep one ear on the ground to know what is happening in a wide range of economic areas so as to stay aware of what is happening, locally and internationally. This will enable you to make the best decisions possible regarding the investments you have already made and helping you know which ones you should be making.

Some of the indicators to watch out for are:

• Retail Sales: By way of definition, retail sales, as indicated by their name, is simply a projected estimate of what sales will be by retail shops in the US. These are usually released monthly in advance and are usually not adjust for inflation. In order for this report to be generated, a sampling of receipts from participating retailers is compiled. The importance of this in relation to Forex trading is that it is a valuable indicator of which industries and more specifically, which companies are worth investing your money into.
• Existing Home Sales: Existing homes are homes that have been standing for a while, while the rest are newly constructed. The rate at which homes are being sold can provide you, the trader, with important clues into the economic situation. For example, some sellers might sell one home to make a profit and use that profit to buy new furniture for their new homes. That could be an indication that the furniture industry will be booming very soon. Interest rates are also influential to the Forex trading industry and also affect existing home sales. These are all things to look out for when you get into Forex trading.
• Leading Indicators: Traders use these types of indicators to forecast upcoming changes in the market. Because leading indicators might change before the market actually changes, these are important principles to pay attention to in order to invest wisely. It is important to realize and understand that leading indicators are only indicators and cannot precisely foretell where the market is heading: they are only predictors.
• Trade Balance: Trade balance compares a country’s economical imports to its exports. If the country is experiencing a trade surplus, then the exports going out are more than the imports coming in. Opposite of this is when a country is experiencing trade deficit – the trade balance is in the negative with more goods being imported the exported. This aspect is foundational to successful Forex trading because the trade balance relies on the exchange rates between two particular countries. Trade balance will also be a source of important information regarding the exchange of those two countries’ currencies.

While these are just a few of the economic indicators that you, the Forex trader, should be aware of, it is important to recognize that there are many, many more indicators to watch out for. Forex Justice can help you in knowing what is happening economically around the world. It’s just that simple to sign up and have the very best help and expertise available!

(source:http://www.forexjustice.com/FOREX-CHARTS.html)

Forex Quotes

Understanding Forex Quotes

Reading a foreign exchange quote is simple if you remember two things:

1. The first currency listed is the base currency
2. The value of the base currency is always 1.

As the centerpiece of the forex market, the US dollar is usually considered the base currency for quotes. When the base currency is USD, think of the quote as telling you what a US dollar is worth in that other currency.

When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.

Majors not based on the US dollar

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). For these pairs, where USD is not the base currency, a rising quote means the US dollar is weakening and buys less of the other currency than before.

In other words, if a currency quote goes higher, the base currency is getting stronger. A lower quote means the base currency is weakening.

Cross currencies

Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same.

Bids, asks and the spread

Just like other markets, forex quotes consist of two sides, the bid and the ask:

The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency.

What's a pip?

Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%.

For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies.

(source: http://www.forex.com/understanding_forex_quotes.html)

Forex Brokers

The traditional definition of a forex broker is one who puts buyers and sellers together for a commission or fee. Many forex brokers make their money by charging you a spread, the difference between the buying and selling prices for a currency pair.

Spreads greatly impact your forex returns and vary depending on the type of account you open. As buying low and transacting high is the trader’s goal, a wider spread means you have to pay more when you buy and wind up with less when you sell. In some cases, your broker gets the difference, which is added onto the price of the trade. Spreads often narrow or widen depending on market liquidity and other factors. You can learn a lot by watching the video tutorial on spreads located on our forex guide page.

Pips (Percentage in Points) are the smallest price unit of a forex currency, which is quoted to the fourth decimal point. Spreads, one of the primary costs of your forex trading, are measured in pips and the slightest variances can make a big difference. The Forex Justice reviewswill help you determine which forex brokers offer the best spreads and pips.

I have worked with many different types of forex brokers and have witnessed the haphazard ways in which clients’ investments were distributed. In many cases, the trading transaction would go into a ‘bucket’, and never actually execute. My heart would go out to the scores of clients who had quit their day jobs, anticipating income from trading forex, only to learn their profits had disappeared due to some alleged violation. In reality, there was no profit to deliver since the buy/sell trade never happened and the broker had to come up with an excuse. These types of brokers operate in what’s commonly known in the forex industry as a “bucket shop.”

From Electronic Communication Networks (ECNs) to retail forex companies, the type of forex broker chosen is a factor in the timeliness and return on your investment. ECNs do not trade against you and act as an Interbank broker in the free market by connecting the major banks and brokerages with individual forex traders. The spreads may be smaller but you know upfront what you’re paying for the service – either a flat fee or commission.

Retail forex companies are glorified bucket shops and are often referred to as market makers, since they essentially create their own trading markets. Spreads are arbitrarily decided, trades are made against you, and profits are distributed at the broker’s discretion. Retail forex companies are attractive to newcomers and those short on cash because they don’t require large investments. If you don’t mind running the risk of having your profits disappear on a whim, then retail forex companies are a good place to learn the ins and outs of forex trading. They allow you to demo trade on their platforms until you know what you’re doing and give you unusually high leverage.

Of the two types of brokers, a forex ECN broker is the more legitimate. They provide a place where banks, traders, and multiple market makers can enter competing bids and offers around the spread amount. Unlike a dealing desk, bank quotes are consolidated and orders are matched to the best bid/offer price on which traders are permitted to trade. Although minimum trade requirements are often higher and leverage is lower, prices are not manipulated, profits can be more stable, and trades are passed to a real trader, the Interbank.

When honestly executed, forex spreads can be a valid indicator of what’s happening with your trade. After years of mistakes and believing everything I was told, I now know to look for the red flags, such as reverse pips, rejected transactions, tight spreads, and delayed executions. These are common strategies used to deceive many forex traders.

The best advice I can give you when selecting a forex broker is to read forex reviews . Learn what others are saying about forex brokers before you make a decision.

(source:http://www.forexjustice.com/forex_broker.html)

Latest Market Dollar Rates

LONDON, Aug 3 (Reuters) - Following are the middle exchange rates for leading currencies against the dollar:

CURRENT HIGH LOW Euro 1.4244 1.4308 1.4231 Japanese Yen 94.64 94.85 94.63 British Pound 1.6724 1.6776 1.67 Swiss Franc 1.0706 1.0723 1.066 Danish Crown 5.2268 5.2323 5.2051 Norwegian Crown 6.1159 6.1274 6.095 Swedish Crown 7.1985 7.2182 7.158 Australian Dollar 0.8372 0.8393 0.8341 Brazilian Real 1.8642 1.8642 1.8647 Canadian Dollar 1.0777 1.0788 1.0753 Hong Kong Dollar 7.7499 7.7501 7.7501 Mexican Peso 13.205 13.205 13.209 Russian Rouble 31.224 31.4935 31.228 Singapore Dollar 1.4366 1.4395 1.4365 South African Rand 7.715 7.781 7.7307

(source:http://www.forexpros.com/news/forex-news/market-dollar-rates-at-0600-gmt---aug-3-75827)

Risk Appetite effecting on US dollar

Scheduled event risk is going to moderate even further over the coming week – an unstable situation considering the dollar and most of its major pairings are on the edge of a breakout. Are needs of concrete, essential fodder stop the market from locating direction? Current history has indicated that it isn’t pointers like NFPs or Fed rate conclusions that identify revitalize or overturn trends; but conjecture surrounding the financial health of the US economy and wide risk sentiment. The most instant risk to constancy is G8 conference that is being held this weekend. Finance Ministers from the US, UK, France, Germany, Italy, Japan, Canada and Russia have previously met on Friday in Lecce, Italy; but the comments so far has been comparatively protected.

(source:http://www.forexcult.com/news_risk_appetite_effecting_on_us_dollar_676.html)