The Size Of The Forex Market

Most of the experienced traders around the world consider the Forex market as the best and most profitable of the capital markets. During many years forex trading had been the great and exclusive domain of major banks, very large financial institutions and the countries central banks; a good example of such a bank would be the U.S. Federal Reserve Bank. But over the last few years, thanks to the internet era, the market has been opened to anyone willing to learn the right techniques in forex trading and with the intentions of making substantial profits as the above mentioned institutions, that annually and consistently make pretty high profits from
trading in the Foreign Exchange market.

The foreign exchange market (FOREX) will exist wherever one currency is being traded for another. This market, also known as "currency market", is by far the largest market in the world in terms of all the cash value traded per day, this trading includes all that is being performed between large commercial banks, central banks, currency speculators, governments, and other financial markets and institutions. The trades taking place in the forex markets across the globe it's known to exceed on average $1.9 trillion/day. Retail traders, this is, small speculators are only a small part of this market, but this doesn't mean they can't grab huge profits if they have learn the right way to trade the Forex. These individual traders participate in the market through broker firms.

According to many experts, the foreign exchange market will have doubled in size in just three years, this thanks to increased participation by fund managers and pension funds. A financial services research firm said it expected the total global average daily volumes on the forex market to exceed $3,000bn next year (2007). Forex volumes, which rose from $1,770bn in 2004 to $2,000bn last year, were set to rise to $2,600bn this year and $3,600bn next year.

With these numbers you can easily realize why they say that the Forex market is a huge market that offers great opportunities for traders of all sizes.

Adrian Pablo is a Forex freelance writer with articles published in a number of places. Get a free report on Fibonacci Trading and learn more about the world of forex trading , visit:

=> www.1-forex.com

Automated Trading Orders in Forex Trading

Practical trading involves lots of simulations and automated trade orders using the power of computer. Charting, graph plotting, and automated trade orders; all these are used to enlighten your routine trading work and it spares you more time in studying the market.

Some of the well known trading orders are zero stops, stop order, limit orders, good till cancelled (GTC), as well as market on close order. These orders are used along with different trade strategies in different trading market. In Forex trading, limit orders and stop loss orders are the two auto-trade order used.

Limit orders:

As a trader, you can place these orders when you wish to buy/sell the currency at a better price compare to current market. Limit orders are often used to take win automatically when the price reaches certain level. For example, current EUR/USD is at 1.2693 and your predetermined limit order is to sell all at 1.2700. The order will auto-execute whenever the price reach 1.2700.

It is important to learn that limit orders can be only placed at least the minimum distance from the current market price. Also, such order can be cancelled or modified anytime by you as long as the limit order price tag is set further than the minimum distance allowed.

Stop orders:

Stop orders, or sometimes known as stop loss orders, are automated orders used to restrict and limit the losses of an open position. It can also be used to lock on a profit in your trade when the market is going in your favored direction.

Stop orders work similarly to limit sell orders, it predetermine what is the lowest price to sell in certain deals. For example, EUR/USD 1.2693 with stop order at 1.2685, the system will sell your portion of USD if the price touches the 1.2685 level. The price 1.2685 is guaranteed on such case, meaning even if the market sink too fast and it falls below 1.2685, you still can sell your money in the price that you set earlier. Stop order works perfectly well in handling your risks profile.

Forex nowadays had become one of the most fast growing trading markets in the world. Since the currency exchange market is opened to public in year 1998, we are seeing more and more traders involve in the FX market. Trading Forex might sound easy but the risks involved are extensive. We suggest beginner traders to sharpen their skills and fully utilize trading orders to maintain their risks profile.

Teddy, experienced writter and webmaster. Get useful Forex trading tips and secrets at http://www.golearnforex.net

Day Trading Forex Currency, Hype, Lies and TANSTAAFL

Day trading Forex currency is all about making big money. Some investors have found it quite easy to make a large amount of money by day trading the Forex currency markets as they change hour by hour. But, you see that "some" in the previous sentence? What that means is that a lot of people don't make a dime and even lose a lot of money.

Usually a Forex trading system course is hyped as an easy way to make a bundle. Get your Forex trading secret and your Forex trading tool and you're golden - day trading Forex currency for vast riches. Lies. What you tend to find is that there isn't any Forex trading secret, it's the same old tired stuff repeated over and over on sales page after sales page, generally by so-called "experts" who aren't. And that so-called Forex trading tool or software? Another lame canned system that promises but won't deliver.

And now, what's TANSTAAFL? Online and offline this is the antidote to the big con. There Ain't No Such Thing As A Free Lunch. Fast, easy, no work, instant riches. Doesn't exist. Absolutely anything that is worth your attention is going to cost you effort, time and probably money. Anything else is a pack of lies, hype or deceptive sales yap.

You will probably not make much money day trading Forex currency. In fact, you will probably lose money. Unless you are really smart about how you do it and who you listen to. Sorry, but that's the real truth. There is no secret, no magic tool, no perfect Forex day trading strategy.

What you're going to find are a bunch of Forex trading systems, courses, techniques and tools that purport to tell you just what to do and when and how to do it. If you buy into one of these things - a ready-made off-the-shelf turnkey Forex trading system course, you're going the wrong way. This is just the same old tired search for a magic, easy, thought-free and work-free solution that lies behind every successful scam. If it were that easy, we'd all be rich already, wouldn't we? If there really were a genuine Forex trading secret, tool or strategy that would make you rich, do you actually think anyone would be stupid enough to sell it? Think about it
when you see one of those hyped sales pitches claiming it's easy and quick and the money will be rolling in.

In the Forex currency market, despite all the nonsense about leverage, timing and signals - if you test it out, you'll find most signals are little better than random noise and that trying to time the market will usually end up with you experiencing consistently bad timing. Canned, simplistic
approaches to a complex market just don't work.

How about technical analysis like you'll find in many a Forex trading tool? It's been said (though not by the "wizards" selling technical analysis systems with some spiffy name) that of all the major markets, Forex is the least amenable to technical analysis.

Even the basic wisdom of "buy low, sell high" needs to be seen within a special context when you start working at day trading Forex currency.

If this seems overly discouraging overall, you need to remember the sheer amount of hype and outright lies that are prevalent in this area. You need to be prepared to be coldly realistic. You absolutely have to think of Forex as a serious, complex real business. One that requires close attention and serious study. You need to be careful getting into it, careful whose advice
you take, and careful about learning as much as you can from a real expert.

Certainly it's possible to make money. But, your chances of making money by day trading Forex currency will be vastly increased if you are wide awake when you get into it. Stop dreaming about fast easy money with no work or effort. Get to learning the realities so you can develop your own Forex trading strategies, ones that work for you. It will take time and effort, but then, maybe Forex trading will truly be your road to financial freedom.

Copyright (c) 2006 Richard Keir

Richard is a researcher, writer, programmer and marketer and he's tired of all the hype. Discover the realities of day trading Forex currency now.

How to Trade Forex The Safe Way

In order to reduce losses in trading in the forex market, you will need the necessary and adequate amount of risk management systems in place. Staying afloat is essential in staying in the forex game. It will be unlikely that you will recover from a loss of money that you cannot afford to lose. A good trader will know how to reduce losses quickly and also ride profitable
positions higher. Systems such as stop losses and profit caps are needed to keep losses manageable.

Stop losses are so essential to make a successful trade that most brokers will not allow you to trade without a stop-loss in place. A stop-loss is a system that automatically closes out a position when the bid or offer price reaches the given level. For example if your long (you have bought) a
currency, your stop-loss will be placed below the current market price and will be activated if the price falls past this threshold. Stop losses are beneficial to traders because it is positive knowledge that you're protected from a downside risk. This is useful for novice traders because they can become 'emotionally trapped' in a falling trade.

Guaranteed stop-losses are offered by some brokers and will provide extra protection for traders. Rare intervals where the market gaps - decreasing without trading at each consecutive rate - and traders who have no acquired guaranteed stop-losses are only assured of getting the next available price. Factors such as central bank or government intervention, political, war or
natural crises may cause falls that expose traders without guaranteed stop-losses to substantial losses. Stop-losses can be moved higher or lower to suit the trader. By reducing the stop-loss (placing it closer to the purchase price) you'll limit the potential size of your loss and by increasing it (placing it further away from the purchase price) you will increase your exposure.

Profit caps are opposite to stop-loss because you place a limit on the profits that you have made. It is beneficial for traders who leave trades unattended over night; a profit cap will be triggered when the market moves through a given threshold and will secure the profit made for the trader.

Automatic triggers are needed to limit the risk but money management is as important. This means making the decision on how much money you can afford to lose on a trade and how much you are able to invest. It is also recommended that you invest no more than 10% of your available funds in any single trade. These practices and systems will certainly help you in protecting your funds from losses. Mental discipline is also needed to become a successful trader.

I hope this is enough to inform you about what you need to trade it safe!

Peter Flemming is an Forex Trader and is a writer for ForexTradingHQ a website about forex trading and other currency related news.

Forex Day Trading Rules: Preserve Your Mental Equity

Forex day trading rules often revolve around techniques, technical indicators, and equity management. All these are of course important.

Without proper equity management new traders are tempted to take risks far out of proportion to the amount of equity they have in their account.

Many seasoned traders recommend not risking more than 2% of your capital on any single trade. Some say 1% or even less. In this way you can have a string of losing trades and still be able to survive to see another day.

Of equal importance however is proper mental and emotional management. Day trading can be an exhausting business. The day trader can experience the full gamut of human emotions in a very limited time, from the heights of elation to the depths of despair.

As traders grow with experience they learn to keep their emotions in check and maintain a disciplined approach.

This is where mental equity management comes in. A setup may appear that seems just right. We haven't see much all day and we are anxious to trade. We want a little excitement. True, it isn't the best entry point but we don't want to miss the boat so we get in quickly using a market order.

The trade doesn't even get into profit. For the next couple of hours it fluctuates in a range, but we are on the wrong side of the range. We watch the trading platform show -4 pips, -10 pips, -7 pips, -13 pips and so on.

What is happening to our mental and emotional state? If we are not very disciplined it starts to get drained. If you repeat this scenario frequently when you trade your mental bank will be so exhausted you will not be able to give trading the concentration it needs.

On the other hand, after patiently waiting for price to reach the optimum entry point you had calculated, your trade is taken in and again goes into a dealing range. But now as you watch the trading platform it shows 2 pips, 8 pips, 4 pips, 11 pips. Now how do you feel? Much more relaxed, your mental capital is preserved.

On top of that, how are you affected when you see your account balance go down after 1 trade? Now imagine how you will feel if you have 10 losing trades in a row? When you look at your account balance then how will you feel about your next trade? Nervous? Obviously.

That's why equity management is so crucial - risk no more than 2% on any trade. It's also crucial because of the effect it can have on your mental bank account. Make the 2% level one of your day trading rules.

Another one? Never enter a trade once it has passed the optimum entry point. Sit on your hands and wait for the next time because it will surely come.

Michael A. Jones is a writer and webmaster with over 10 years experience who also trades the forex regularly. Visit this page for details of how he finally started to make consistent profits:

http://www.vitalstop.com/Forex/forex-course.html

Click here for his advice for absolute beginners:

http://www.vitalstop.com/Forex/learn-to-trade-the-forex.html

Michael has also put together a list of key free resources which he finds
invaluable:

http://www.vitalstop.com/Forex/forex-directory-free-resources.html

Easy Work From Home Ideas

The ads have been around for years in magazines and newspapers.

Now they've moved to the Internet. They promise easy work from home ideas, unlimited opportunities and high pay. Unfortunately they usually promised more than they delivered, and the buyer was disappointed once again. There are real business opportunities though. It just takes personal discipline to determine which the best business is for you. An honest and thoughtful analysis of your skills, abilities knowledge and resources is the first steps to choosing an easy work from home idea.

Here are some ideas to get you started.

Online store

Looking for easy work from home ideas? You can start in a matter of minutes with prepackaged software and name brand merchandise. You don't need to stockpile inventory, you arrange for drop shipment from a central warehouse directly to your customer. You don't need to pay for expensive office or sales space, just a corner of your kitchen or den.

Web site design

In order to do this job you will need to be creative and understand computer program. You can use one of the web site design software programs. Many small businesses would welcome your assistance in going online. Be sure to maintain a portfolio of your work to offer to show future customers what you're capable of. Easy work from home ideas such as this guarantee a bright
future.

Content writing

Creative writing ability and a good command of grammar and punctuation are prerequisites for this easy work from home idea. You need to have access to the Internet. Answer an ad on one of the good freelance opportunity sites to soon have more work than you can handle. Again, it's important to maintain a portfolio of your best work to demonstrate your abilities to potential
clients. There is other easy work from home ideas that we can list, so keep reading!

Multi-level marketing

There are many multi-level marketing programs out there, not all of them are good opportunities for work at home. Choose carefully, look for companies, which offer real products and provide good compensation plans. Easy work from home ideas such as multi-level marketing is great for people inclined towards sales.

Online Surveys

There are many companies who want you to sign up to take surveys. Choose sites that pay for the services with cash or merchandise. You shouldn't need to pay for the service. Sometimes these sites also include cash for reading emails offers. If you receive gifts for surveys and it's an item you don't want, consider selling it on one of the online auction sites.

Online auctions

The most well known of these sites is eBay. You can offer new or used merchandise at auction. This is a simple and easy work from home idea and requires very little in the way of up front costs.

Trading Domains

Good domain names are out there. You can find names, which are underused and link them to your own site or another site. Sometimes, you can even receive a commission as an affiliate for items that are purchased through your link. Or, sell the domain names directly on an online auction. Easy work from home ideas does not get better than this!

Online stock, commodities and Forex (foreign exchange) trading

Are you interested in easy work from home ideas relating to finance? Learn to be a trader through the educational programs available on broker websites, start with a virtual trading account, practice with virtual money, and when you have gained confidence and experience, try it with real money. You will need a computer with a reliable Internet connection.

Description: This article describes the importance of a self-inventory in determining which work at home opportunity is best for the individual. Here are eight easy work from home ideas that require little cash, experience, or inventory are described briefly.

About The Author: Kelvin Tan is an Internet Business Expert where he created $10,045 sales in 24 hours just by sending out 5 emails without any list or website. Click here - http://www.mysecret2success.com to know how he did it. To learn about the secrets of easy work from home ideas, visit http://www.mysecret2success.com