Before you can get started with forex trading, there are so many questions to answer. How do I choose a broker? Should I use a demo account? What do I need to know before making my first trade?
Let’s answer these questions one at a time, in order of importance.
1. Choose a broker
Making a decision on which broker to use is personal for each trader. Some brokers offer certain options that some traders will thrive on, while other traders will hate the broker for those same options. It is important to review and compare the options of each broker closely and choose the one that makes you feel most comfortable.
2. Open a Demo Account
Once you have made your decision on which broker you like the best, it is time to open a demo account. Most brokers will offer at least a 30 day trial of their trading platform giving you a chance to trade on the platform using play money. Using a demo account is a good opportunity to make sure that you feel comfortable using the broker’s trading tools. You would not want to trade real money without being fully comfortable with the trading platform. A demo account will not only help you get a grip on how to use the broker’s trading platform, but also trading the market in real time.
3. Learn About Leverage
Forex trading is typically carried out using leverage, or trading on margin. Margin is a useful tool, but it can be very dangerous if it isn’t used correctly. Forex brokers typically offer anywhere from 50:1 leverage up to 400:1 leverage. The higher the number, the less money required to put on a large trade. The use of leverage is something that needs to be taken with a lot of care.
4. Practice Reading Charts
Before you start making trades you should get familiar with charts and how they work. It is a good idea to get familiar with the different time frames and the different types of charts. The shorter time frames will give you an idea of how the market is moving minute to minute. The longer time frames can show you how the market moves over longer periods and will show the larger trends. Most charting software will offer charts as lines, candlesticks, or bars. Take plenty of time to try out different looks and time frames to find the style that you are comfortable with.
* Learn about candlesticks
* Learn to understand support and resistance
5. Making the first live trade
The first trade is a nervous and exciting experience. The demo account prepares you for the technical aspects of trading, but when real money is on the line, emotions will come into play. It is important that you keep a level head and do your best to trade with the same methods that you practiced on the demo account. It may prove to be difficult, but if you master your emotions and use sound money management, anything is possible after this step. If your first trade loses money, do not give up, just piece together where you think you went wrong, and try again.
Forex trading is a constant learning experience. Trading mistakes can be expensive. If you learn from those mistakes and do your best to avoid them in the future, you can become a very successful forex trader.
Friday, December 4, 2009
Mistakes That Forex Traders Make
1. Using Too Much Leverage
One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.
2. Over Trading
Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.
3. Picking Tops and Bottoms
Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.
One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.
2. Over Trading
Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.
3. Picking Tops and Bottoms
Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.
Benefits of Forex Trading
1. 24 Hour Market
Since the forex market is worldwide, trading is continuous as long as there is a market open somewhere in the world. Trading starts when the markets open in Australia on Sunday evening, and ends after markets close in New York on Friday.
2. High Liquidity
Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. In forex this means we can move large amounts of money into and out of foreign currency with minimal price movement.
3. Low Transaction Cost
In forex, typically the cost for a transaction is built into the price. It is called the spread. The spread is the difference between the buying and selling price.
4. Leverage
Forex Brokers allow traders to trade the market using leverage. Leverage is the ability to trade more money on the market than what is actually in the trader's account. If you were to trade at 50:1 leverage, you could trade $50 on the market for every $1 that was in your account. This means you could control a trade of $50,000 using only $1000 of capital.
5. Profit Potential from Rising and Falling Prices
The forex market has no restrictions for directional trading. This means, if you think a currency pair is going to increase in value; you can buy it, or go long. Similarly, if you think it could decrease in value you can sell it, or go short.
Since the forex market is worldwide, trading is continuous as long as there is a market open somewhere in the world. Trading starts when the markets open in Australia on Sunday evening, and ends after markets close in New York on Friday.
2. High Liquidity
Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. In forex this means we can move large amounts of money into and out of foreign currency with minimal price movement.
3. Low Transaction Cost
In forex, typically the cost for a transaction is built into the price. It is called the spread. The spread is the difference between the buying and selling price.
4. Leverage
Forex Brokers allow traders to trade the market using leverage. Leverage is the ability to trade more money on the market than what is actually in the trader's account. If you were to trade at 50:1 leverage, you could trade $50 on the market for every $1 that was in your account. This means you could control a trade of $50,000 using only $1000 of capital.
5. Profit Potential from Rising and Falling Prices
The forex market has no restrictions for directional trading. This means, if you think a currency pair is going to increase in value; you can buy it, or go long. Similarly, if you think it could decrease in value you can sell it, or go short.
How Does Forex Trading Work?
Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you expect to change in value and place a trade accordingly. For example, if you had purchased 1,000 Euros in January of 2005, it would have cost you around $1,200 USD. Throughout 2005 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $100 gain.
Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.
Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.
What is Forex Trading?
Forex Trading is trading currencies from different countries against each other. Forex is acronym of Foreign Exchange.
For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in circulation is called the US Dollar (USD). An example of a forex trade is to buy the Euro while simultaneously selling US Dollar. This is called going long on the EUR/USD.
For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in circulation is called the US Dollar (USD). An example of a forex trade is to buy the Euro while simultaneously selling US Dollar. This is called going long on the EUR/USD.
ICC World Cup 2011 Schedule
Schedule:
* Sat Feb 19 1st match - India v Bangladesh
* Sun Feb 20 3rd match - Sri Lanka v Canada
* Sun Feb 20 2nd match - Kenya v New Zealand
* Mon Feb 21 4th match - Australia v Zimbabwe
* Tue Feb 22 5th match - England v Netherlands
* Wed Feb 23 6th match - Kenya v Pakistan
* Thu Feb 24 7th match - South Africa v West Indies
* Fri Feb 25 9th match - Bangladesh v Ireland
* Fri Feb 25 8th match - Australia v New Zealand
* Sat Feb 26 10th match - Pakistan v Sri Lanka
* Sun Feb 27 11th match - India v England
* Mon Feb 28 12th match - Netherlands v West Indies
* Mon Feb 28 13th match - Canada v Zimbabwe
* Tue Mar 1 14th match - Kenya v Sri Lanka
* Wed Mar 2 15th match - England v Ireland
* Thu Mar 3 17th match - Canada v Pakistan
* Thu Mar 3 16th match - Netherlands v South Africa
* Fri Mar 4 19th match - Bangladesh v West Indies
* Fri Mar 4 18th match - New Zealand v Zimbabwe
* Sat Mar 5 20th match - Australia v Sri Lanka
* Sun Mar 6 21st match - India v Ireland
* Sun Mar 6 22nd match - England v South Africa
* Mon Mar 7 23rd match - Canada v Kenya
* Tue Mar 8 24th match - New Zealand v Pakistan
* Wed Mar 9 25th match - India v Netherlands
* Thu Mar 10 26th match - Sri Lanka v Zimbabwe
* Fri Mar 11 28th match - Bangladesh v England
* Fri Mar 11 27th match - Ireland v West Indies
* Sat Mar 12 29th match - India v South Africa
* Sun Mar 13 30th match - Canada v New Zealand
* Sun Mar 13 31st match - Australia v Kenya
* Mon Mar 14 33rd match - Bangladesh v Netherlands
* Mon Mar 14 32nd match - Pakistan v Zimbabwe
* Tue Mar 15 34th match - Ireland v South Africa
* Wed Mar 16 35th match - Australia v Canada
* Thu Mar 17 36th match - England v West Indies
* Fri Mar 18 37th match - New Zealand v Sri Lanka
* Fri Mar 18 38th match - Ireland v Netherlands
* Sat Mar 19 40th match - Bangladesh v South Africa
* Sat Mar 19 39th match - Australia v Pakistan
* Sun Mar 20 41st match - Kenya v Zimbabwe
* Sun Mar 20 42nd match - India v West Indies
* Wed Mar 23 Quarter Final - TBC v TBC
* Thu Mar 24 Quarter Final - TBC v TBC
* Fri Mar 25 Quarter Final - TBC v TBC
* Sat Mar 26 Quarter Final - TBC v TBC
* Tue Mar 29 Semi Final - TBC v TBC
* Wed Mar 30 Semi Final - TBC v TBC
* Sat Apr 2 Final - TBC v TBC
* Sat Feb 19 1st match - India v Bangladesh
* Sun Feb 20 3rd match - Sri Lanka v Canada
* Sun Feb 20 2nd match - Kenya v New Zealand
* Mon Feb 21 4th match - Australia v Zimbabwe
* Tue Feb 22 5th match - England v Netherlands
* Wed Feb 23 6th match - Kenya v Pakistan
* Thu Feb 24 7th match - South Africa v West Indies
* Fri Feb 25 9th match - Bangladesh v Ireland
* Fri Feb 25 8th match - Australia v New Zealand
* Sat Feb 26 10th match - Pakistan v Sri Lanka
* Sun Feb 27 11th match - India v England
* Mon Feb 28 12th match - Netherlands v West Indies
* Mon Feb 28 13th match - Canada v Zimbabwe
* Tue Mar 1 14th match - Kenya v Sri Lanka
* Wed Mar 2 15th match - England v Ireland
* Thu Mar 3 17th match - Canada v Pakistan
* Thu Mar 3 16th match - Netherlands v South Africa
* Fri Mar 4 19th match - Bangladesh v West Indies
* Fri Mar 4 18th match - New Zealand v Zimbabwe
* Sat Mar 5 20th match - Australia v Sri Lanka
* Sun Mar 6 21st match - India v Ireland
* Sun Mar 6 22nd match - England v South Africa
* Mon Mar 7 23rd match - Canada v Kenya
* Tue Mar 8 24th match - New Zealand v Pakistan
* Wed Mar 9 25th match - India v Netherlands
* Thu Mar 10 26th match - Sri Lanka v Zimbabwe
* Fri Mar 11 28th match - Bangladesh v England
* Fri Mar 11 27th match - Ireland v West Indies
* Sat Mar 12 29th match - India v South Africa
* Sun Mar 13 30th match - Canada v New Zealand
* Sun Mar 13 31st match - Australia v Kenya
* Mon Mar 14 33rd match - Bangladesh v Netherlands
* Mon Mar 14 32nd match - Pakistan v Zimbabwe
* Tue Mar 15 34th match - Ireland v South Africa
* Wed Mar 16 35th match - Australia v Canada
* Thu Mar 17 36th match - England v West Indies
* Fri Mar 18 37th match - New Zealand v Sri Lanka
* Fri Mar 18 38th match - Ireland v Netherlands
* Sat Mar 19 40th match - Bangladesh v South Africa
* Sat Mar 19 39th match - Australia v Pakistan
* Sun Mar 20 41st match - Kenya v Zimbabwe
* Sun Mar 20 42nd match - India v West Indies
* Wed Mar 23 Quarter Final - TBC v TBC
* Thu Mar 24 Quarter Final - TBC v TBC
* Fri Mar 25 Quarter Final - TBC v TBC
* Sat Mar 26 Quarter Final - TBC v TBC
* Tue Mar 29 Semi Final - TBC v TBC
* Wed Mar 30 Semi Final - TBC v TBC
* Sat Apr 2 Final - TBC v TBC
World Cup 2011 Group Stage
Group A:
Australia
Pakistan
New Zealand
Sri Lanka
Zimbabwe
Canada
Kenya
Group B:
India
South Africa
England
West Indies
Bangladesh
Ireland
Netherlands
Australia
Pakistan
New Zealand
Sri Lanka
Zimbabwe
Canada
Kenya
Group B:
India
South Africa
England
West Indies
Bangladesh
Ireland
Netherlands
2011 World Cup Match Venue
Mumbai: Wankhede Stadium, Mumbai will host the final of the 2011 World Cup and two additional matches, the tournament's local organising committee announced after a meeting in that city on Wednesday. Mohali will host one semi-final and Ahmedabad a quarter-final, and each will also get two other games.
The rest of the 29 matches allotted to India have been divided equally between Eden Gardens, Delhi, Chennai, Bangalore and Nagpur; their four games each will also include one India game.
The remaining matches will be divided between Bangladesh (eight games) and Sri Lanka
(12) and the full schedule of the 14-nation tournament is to be announced in Mumbai on November 9.
Sri Lanka will stage the other semi-final and one quarter-final, while Bangladesh will host the opening ceremony on February 18 and two quarter-finals.
The rest of the 29 matches allotted to India have been divided equally between Eden Gardens, Delhi, Chennai, Bangalore and Nagpur; their four games each will also include one India game.
The remaining matches will be divided between Bangladesh (eight games) and Sri Lanka
(12) and the full schedule of the 14-nation tournament is to be announced in Mumbai on November 9.
Sri Lanka will stage the other semi-final and one quarter-final, while Bangladesh will host the opening ceremony on February 18 and two quarter-finals.
Host selection for 2011 World Cup
The ICC originally announced its decision on which countries would host the 2011 World Cup on 30 April 2006. Australia and New Zealand also bid for the tournament, and a successful Australasian bid for the 2011 World Cup would have seen a 50-50 split in games, with the final still up for negotiation. The Trans–Tasman bid, Beyond Boundaries, was the only bid for 2011 delivered to ICC headquarters in Dubai ahead of the 1 March deadline. Considerable merits of the Australasian bid were the superior venues and infrastructure and the total support of both the New Zealand and Australian governments on tax and customs issues during the tournament, according to Cricket Australia chief executive James Sutherland. The New Zealand government had also given assurance that Zimbabwe would be allowed to compete in the tournament, following political discussions in the country whether their cricket team should be allowed to tour Zimbabwe in 2005. The Australian bid also won the support of former West Indies captain Shivnarine Chanderpaul.
ICC President Ehsan Mani said the extra time taken by the Asian bloc to hand over its bid compliance book had harmed the four-nation bid. However, when the time came to vote, Asia won the hosting rights by ten votes to thre. The Pakistan Cricket Board has revealed that it was the vote of the West Indies Cricket Board that swung the matter, as the Asian bid had the support of the four bidding countries along with South Africa and Zimbabwe. It was reported in Pakistani newspaper Dawn that the Asian countries promised to hold fund-raising events for West Indian cricket during the 2007 World Cup, which may have influenced the vote. However, chairman of the Monitoring Committee of the Asian bid, I. S. Bindra, said it was their promise of extra profits in the region of US$ 400 million that swung the vote, that there "was no quid pro quo for their support", and that playing the West Indies had "nothing to do with the World Cup bid".
International cricket politics lie at the heart of the dispute. Since cricket is the most popular sport in Bangladesh, India, Pakistan and Sri Lanka, Asia is of fundamental financial importance to the International Cricket Council. However, historically, international cricket has been controlled by the "Old Commonwealth" nations of England, Australia, and New Zealand, supported by South Africa.[citation needed] The centre of cricketing politics has moved, over time, with the money, and the Asian nations, particularly India under the guidance of Jagmohan Dalmiya, looking for greater control in the direction of international cricket, and in 2005 Dalmiya said that the Indian subcontinent should host every third World Cup.
Voting Results:
Country Votes
India Indian Subcontinent 10
Australia Australasia 3
ICC President Ehsan Mani said the extra time taken by the Asian bloc to hand over its bid compliance book had harmed the four-nation bid. However, when the time came to vote, Asia won the hosting rights by ten votes to thre. The Pakistan Cricket Board has revealed that it was the vote of the West Indies Cricket Board that swung the matter, as the Asian bid had the support of the four bidding countries along with South Africa and Zimbabwe. It was reported in Pakistani newspaper Dawn that the Asian countries promised to hold fund-raising events for West Indian cricket during the 2007 World Cup, which may have influenced the vote. However, chairman of the Monitoring Committee of the Asian bid, I. S. Bindra, said it was their promise of extra profits in the region of US$ 400 million that swung the vote, that there "was no quid pro quo for their support", and that playing the West Indies had "nothing to do with the World Cup bid".
International cricket politics lie at the heart of the dispute. Since cricket is the most popular sport in Bangladesh, India, Pakistan and Sri Lanka, Asia is of fundamental financial importance to the International Cricket Council. However, historically, international cricket has been controlled by the "Old Commonwealth" nations of England, Australia, and New Zealand, supported by South Africa.[citation needed] The centre of cricketing politics has moved, over time, with the money, and the Asian nations, particularly India under the guidance of Jagmohan Dalmiya, looking for greater control in the direction of international cricket, and in 2005 Dalmiya said that the Indian subcontinent should host every third World Cup.
Voting Results:
Country Votes
India Indian Subcontinent 10
Australia Australasia 3
2011 Cricket World Cup
The 2011 ICC Cricket World Cup will be the tenth Cricket World Cup, and will be hosted by three South Asian Test cricket playing countries; India, Sri Lanka and Bangladesh. It will be Bangladesh's first time co-hosting a Cricket World Cup. The World Cup will use cricket's One Day International format, with fourteen national cricket teams scheduled to compete. The World Cup will take place during the months of February and March 2011, with the first match being played on 19 February 2011.
The World Cup was originally to have been hosted by Pakistan as well, but in the wake of the 2009 attack on the Sri Lanka national cricket team in Lahore, the capital of the Pakistani province of Punjab, the International Cricket Council (ICC) were forced to strip Pakistan of its hosting rights. The headquarters of the organising committee were originally situated in Lahore, but have now been shifted to Mumbai.Pakistan was supposed to hold 14 matches, including one semi-final.8 of vPakistan's Matches have been awarded to India, 4 to Sri Lanka and 2 to Bangladesh.
The World Cup was originally to have been hosted by Pakistan as well, but in the wake of the 2009 attack on the Sri Lanka national cricket team in Lahore, the capital of the Pakistani province of Punjab, the International Cricket Council (ICC) were forced to strip Pakistan of its hosting rights. The headquarters of the organising committee were originally situated in Lahore, but have now been shifted to Mumbai.Pakistan was supposed to hold 14 matches, including one semi-final.8 of vPakistan's Matches have been awarded to India, 4 to Sri Lanka and 2 to Bangladesh.
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