joyforex: February 2012

2012-02-29

Foreign exchange education---bid, ask and spread

The bid ,or buy; The Ask, or sell, offer

Spot quotations are bid (buy) and offer or ask (sell) rates at which a market-maker will buy and sell the base currency against another currency.

USD1=DEM1.4123/33

1: the big figure

23: bid

33:offer

23/33:the unit difference between two prices the spread which is usually about 10 pips as in this case.

The currencies involved:

USD=Base currency

DEM=Counter currency(Deutsche Mark)

Direct and indirect currency rates are quoted using the usual letter combinations but some of the currency pairs have their own terms.

GBP/USD is known as a Cable

USD/CHF is known as a Dollar-Swishy

USD/DEM is known as a Dollar-Mark

USD/FRF is Known as a Dollar-Paris

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Diagnosing Your Forex Trading Plan Postmortem

OK, first of all, the title-diagnosing your trading plan postmortem is not as difficult as it sounds. All it means is that you have analyze your trades after it’s done. This may not be very exciting compared to placing the trades. But trust me, it’s probably one indispensible step for you to become a top Forex trader.

Diagnosing the trade you have placed after it’s complete is an important ingredient of your Forex trading plan. Trading plan is more to your trading profile. What you should include the complete steps involving in Forex trading. Therefore, a postmortem diagnostic on your trades is essential, which you perform on daily, weekly and also monthly basis. Because you can see how different you perform during these different timeframes. Have you been consistent in undertaking your plan? Have made mistakes regarding the same use of Forex indicator?

The postmortem diagnosis don’t have to be long. Just briefly analyze each trade you make with the help of a checklist. Considering whether you have completed the little things on your checklist. But never dwell on it for too long. Move on and make new trades.

Remember this, don’t get too nervous when trading Forex. You should be cautious, but not nervous. After all, as Charlie Goodman said, the market can go only up or down.

http://www.ikonfx.com/forexblog/forex-tips-diagnosing-your-forex-trading-plan-postmortem/

2012-02-28

Some Participants in Forex

The followings are the some main participants in the FX market

(1 ) Hedge funds. They control billions of dollars of equity and may borrow billion more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds’ favor.

(2) Investment management firms. They often use foreign exchange market to facilitate transaction in foreign securities.

(3) Retail FX brokers.

(4) Other. Non-bank foreign exchange companies.

It is estimated that in the UK, 14% of currency transfers/payments are made via Foreign exchange companies. These companies’ selling point is usually that they will offer from Money Transfer/Remittance Companies in that they generally offer higher-value services.

If you want to know more about foreign exchange. Recommend a good blog for you .Welcome your comment.

Top 5 Forex Trading Platforms

Choosing a best Forex trading platform is seemingly essential for Forex traders if they want to take every single opportunity to make profits. However, it is obvious that there are so many Forex trading platforms provided by variety of Forex companies and almost each of them has its own features. To be strict with, there are no two Forex traders trade alike, so they have to take their pick based on their own preference. It would be fine if you could figure out your first choice after referring to the next top 10 Forex trading platforms.

After much time and research I am proud to be able to bring you extensive reviews on each one of Forex trading platforms that are available. These reviews covered the basics of each platform and many of the more in-depth reasons of why these are the best out there. Finding the best Forex trading platform often times depends specifically on trader’s own desires.

Forex Trading Platform No.1: IKON Prodigy

Prodigy is IKON’s in house developed state of the art institutional platform equipped with a full range of products, tools and functions. It represents the next generation and cutting-edge technology in advanced trading. It is my top recommended Forex trading platform! Developers of IKON Prodigy learn from the pros of other excellent trading platforms.

1. Easy-to-use Quick Order
2. De-attach Screen Feature
3. Placing Orders in the Market Depth
4. Margin Netting
5. Stay Hedged
6. Select the Base Currency You Like
7. Customized and rapid Chart Intervals
8. Numerous currency pairs with various execution types involving a completely automated dealing desk

Rating: ★★★★★

http://www.ikonfx.com/forexblog/forex-review-top-5-forex-trading-platforms/

2012-02-27

Investigation before Forex Trading

You should do some investigation before the actual Forex trading. The stability of the company, problems and futures within the company, though it’s difficult to find out until the event emerges out.

Tracking the company years records, asking its past data and statistics, taking a look at their history important events, is a must to choose the best Forex company to cooperate with. All this information could get from social media such as internet, newspapers, and personal communication with the people around you.

Moreover, if your broker is registered at CFTC, US Commodity Futures Trading Commission, and/or members of National Futures Association, probably you made an optimal choice. Because these two organizations impose rules the brokers must follow to maintain their membership, so broker behaviors are regulated by directions, and customer protection and market integrity is some kind of guaranteed.

Top 10 Advantages of Forex Investment, the Biggest Market Worldwide

Many kinds and forms of investments are available at present. But more and more investors begin to take an interest in and enter into the Forex investment. What is the reason? Some investors may answer: the daily turnover of forex market is up to 4 trillion US dollars or so, making it the biggest financial market worldwide. Is it the only reason why people rushed into fores market? The answer is no. Wise investors won’t choose to invest into forex market just because the tremendous turnover. Forex investment has other competitive advantages, attracting more and more investors into the market. I summarize the top 10 advantages below:

Advantages of Forex investment No. 1: Time flexibility

Unlike stocks or futures market, the Forex investment runs around the clock worldwide. Investors are able to arrange their trading time according their own life style and work time. Even nine to five office workers have the chance to trade after work. Flexibility in time is one of crucial advantages.

Advantages of Forex investment No.2: Fair trade

As I mentioned above, the daily turnover of forex market is up to 4 trillion US dollars or so. It is such a big market that makes it impossible to be manipulated by anybody or any organization, guaranteeing its fairness in trading. I believe every investor is not willing to trade in a market controlled by others.

See more, please go to

http://www.ikonfx.com/forexblog/top-10-advantages-of-forex-investment-the-biggest-market-worldwide/

2012-02-26

Notice for Forex Trader

Pay attention to the currency spread.

The currency spread is the amount of pips between the bidding price and asking price, and Forex brokers use which to make money through every trade during their network. Take EURUSD as an example, the pips is usually 3-4.

The required amount of fund to create an account.

Different Forex platforms, the money to open a Forex account differs. Depending on each customer’s financial situation, they could choose the suitable platform to start a new account. Typically, a mini account definitely is the right selection for Forex novice.

Whether charges fees for small trading, although it’s free to do tiny size transaction.

Even it’s a small, fees occurs. Check out carefully before plunge into the Forex market.

The existence of other fees.

Rollover fees is an example. If you hold a spot Forex position overnight, you will be charged or receive rollover fees. For instance, if you buy a pair of currency which the base one has higher interest than the terms one, rollover fee will be paid to you, vice versa, you pay out. When buying CADUAD, the interest in Canada is higher than America, you receive rollover fee.

Forex Trend Interpretation

I know Forex traders who do not like automated Forex systems and I meet Forex traders who think automated Forex systems is the perfect solution for consisting and fear-free Forex investment. I can relate to both sides of these opinions. Automated Forex system do bring extra income only if Forex traders make sure they do the following:

Two adages I have heard the most when trading forex are “the trend is your friend” and “in the long run, we all die”. The latter can be interpreted as the importance of Forex technical analysis while the former refers that trading with trend, instead of against it, can increase your long-term success.

The trend here is not any trend in the Forex market, but a major trend. It’s the direction of the market you are following. For different types of Forex traders, the major trend is different. If you are Forex scalper, you would like to use 1-hour chart to observe the trend. If you are a day trader, may a 5-hour chart then.

Why is the trend your friend? The trend direction is where the market is moving, currently though. Taking the major trend can at least guarantee that most of the price ticks are thte direction of the major trend where most of the market time is building the major trend.

Think this way, the success of your Forex trading strategies depends on the percentage of your winning trades. If you always trade the bigger odd of success, your successful trades will take the larger proportion; and vise versa.

Look at the figure below. You can see the major trend consumes most of the Forex market history.

http://www.ikonfx.com/forexblog/forex-trend-interpretation-%e2%80%93-why-trend-is-your-friend/

2012-02-23

Set Emotion Away in Forex Trading

When you are trying to earn profit in the Forex trading, avoiding emotional decision is essential, meanwhile, follow your elaborate strategy, mix the current market and history events together is in need. Let your gut make the decision is not a wise choice which could cost a loss. You’d better have a carefully planned strategy ahead then stick to it. In detail, remember well some key note will help you to win in this competitive market, for example, if the currency declines more than five pips, it’s most likely a good chance to buy it. Generally, you can’t do well with out appropriate analysis, which could tell you trends showing you the prediction. No trend moves smoothly, slight increase and decrease exist in the long trend, if you let your emotion at a small moment to influence you trading, your strategy would be messed up.

Things Most Forex Traders Do Not Know About Demo Forex Account

You could forever and ever bear in mind that opening up a demo Forex account is a technique that many traders have to practice trading before investing their real capital. Wow, I can hardly remember that how many times I have emphasized the necessaries of using demo Forex accounts to test your Forex strategy. Here I am going to list some of the pros and cons that come with using this type of account.
Pros of Using Demo Forex Accounts
One of the pros of using demo Forex account is its allowing you to get a realistic simulation. With a demo Forex account, you get to see the market much like it really is. When you place an order, it may seem like you are just in the real Forex market. You can simply plug new strategies into your demo account before risking any of your own money
Another pro of using a demo Forex account is that you would get to use play money. They don’t actually give you paper counterfeit money to use. They simply credit your virtual account with the amount you ask for.
Possible Problems When Using Demo Forex Accounts
However outstanding it is, demo Forex accounts still come with some issues that Forex traders need to pay attention to. Now make it easier, if you place an order in your demo account, it will be executed immediately. However, in terms of using a live Forex account, you might wait for a few seconds. As a result, that is why most Forex traders perform better in demo Forex accounts than in live accounts.

http://www.ikonfx.com/forexblog/things-most-forex-traders-do-not-know-about-demo-forex-account/

Forex MT4 Platform

A large variety of trading platforms are for the choice of forex traders, some are with great function while some others are just ordinary. So choosing a suitable forex platform makes a difference in forex trading. According to survey after survey, there are several commonly used forex trading platforms in the market and I will introduce one of them-MT4 platform.

Published by MetaQuotes Software Corporation, MT4 platform is designed for trading of such financial products as forex, metals, futures etc. It provides comprehensive services including back-office support via internet. MT4 is now widely used in forex trading. After publishing, it becomes a favorite of a large number of forex brokerage companies and banks worldwide in online trading, especially forex online trading. So what is the reason of its popularity? I summarize the most important reasons below for your reference if you are by chance looking for a suitable platform.

Ø First of all, language barrier is not a problem for MT4 users. MT4 platform provides a multi-language environment for traders.

Ø Secondly, MT4 owns powerful functions, for example, traders are able to set price alert, place advanced orders and even set stop losses etc. all the up-to-date functions enable convenience for traders to trade without sitting in front of computer all the time.

Ø More and more people choose to use smart phone due to its portability. MT4 mobile platform will be available on iPhone and iPad, providing full-featured Forex trading, technical analysis (30 technical indicators) and account control available any time and from anywhere in the world.

Ø MT4 platform contains Application Program Interface (MetaTrader 4 API) that makes it possible to extend its functionality and integration with any other systems.

Ø MT4 makes it quite easy for traders to get access to their own accounts; Moreover, traders can check the account transaction record, balance of account anytime.

Ø Traders are able to get indicators, forex analysis and real-time charts etc. for free .

Ø MT4 platform is a highly confidential platform. Traders do not need to worry about concealment of their accounts information.

From the standpoint of forex traders, MT4 is a powerful and helpful platform; it meets the expectation of most forex traders. The number of traders who use it is a good testimony. By the way, several top brokers like IKON Group provides MT4 platform along with omni-directional services for traders.

2012-02-22