THE BENEFITS OF FOREX TRADING BY RAJPUT

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Following are the some important advantages of forex trading which is sort out only for you by Rajput which are as follows:

Highest Liquidity:
There is always buyer and seller in Forex market. The Forex market absorbs trading volumes and per trade size which dwarfs the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggest the freedom to enter or exit the market at any time. Forex traders benefit from the ability to respond to breaking news immediately. There is no other market or investments that you can ever make an exit exactly at the time you wish to.

24 Hour Trading:
The Forex market is open 24 hours daily. When Asia market is close, the European market start follows by the USA market and continue by Asia market again the next day. Thus, this allows Forex traders to take positions regardless of the hour and locations.

Profit on Bulls and Bears:
"Buy low sell high", this is what every investor knows and practising in whatever market. One of the most exciting advantages of Forex trading is the ability to generate profits whether in the bull or bear condition. In the Forex market, apart form buy low sell high, Forex traders can always sell high and then buy back at lower price to generate profit.

High Leverage:
In Forex trading, a small margin deposit can control a much larger total contract value. 200 to 1 leverage enable Forex traders to buy or sell $100,000 worth of currencies with $500 margin deposit. It gives Forex traders the ability to make extraordinary profit.

No Commissions or fees:
Trading Forex has much lower transaction costs than other investment products, a very important point for active traders.

Free Resource for Forex Trading:
There are lot's of online way for free resources for foreign trading. You can visit www.forex.com or www.google.com and just type forex and click on search button then you can see lots of informative sites. Another way of knowing forex trading is from the books of big business which are available in book shop and markets.

RAJPUT'S INVESTMENT MANAGEMENT COMPANIES

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Rajput told us "Investment management companies (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.
Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades".

RAJPUT FOREX GLOSSARY AND APPENDIX

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Following are the some important and useful appendix and glossary which is sort out by me (RAJPUT):

  • Ask (Offer) — price of the offer, the price you buy for.
  • Aussie — a Forex slang name for the Australian dollar.
  • Bank Rate — the percentage rate at which central bank of a country lends money to the country's commercial banks.
  • Bid — price of the demand, the price you sell for.
  • Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.
  • Cable — a Forex traders slang word GBP/USD currency pair.
  • Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.
  • CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.
  • Commission — broker commissions for operation handling.
  • CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.
  • EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.
  • ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.
  • ECB (European Central Bank) — the main regulatory body of the European Union financial system.
  • Fed (Federal Reserve) — the main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.
  • Fibonacci Retracements — the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.
  • Flat (Square) — neutral state when all your positions are closed.
  • Fundamental Analysis — the analysis based only on news, economic indicators and global events.
  • GDP (Gross Domestic Product) — is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.
  • GTC (Good Till Cancelled) — order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.
  • Hedging — maintaining a market position which secures the existing open positions in the opposite direction.
  • Jobber — a slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.
  • Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.
  • Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.
  • Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.
  • Liquidity — the measure of markets which describes relationship between the trading volume and the price change.
  • Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.
  • Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
  • Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
  • Margin — money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
  • Margin Account — account which is used to hold investor's deposited money for FOREX trading.
  • Margin Call — demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.
  • Market Order — order to buy or sell a lot for a current market price.
  • Market Price — the current price for which the currency is traded for on the market.
  • Momentum — the measure of the currency's ability to move in the given direction.
  • Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
  • Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.
  • Order — order for a broker to buy or sell the currency with a certain rate.
  • Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.
  • Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).
  • Profit (Gain) — positive amount of money gained for closing the position.
  • Principal Value — the initial amount of money of the invested.
  • Realized Profit/Loss — gain/loss for already closed positions.
  • Resistance — price level for which the intensive selling can lead to price increasing (up-trend).
  • Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.
  • Settled (Closed) Position — closed positions for which all needed transactions has been made.
  • Slippage — execution of order for a price different than expected (ordered), main reasons for slippage are — "fast" market, low liquidity and low broker's ability to execute orders.
  • Spread — difference between ask and bid prices for a currency pair.
  • Standard Lot — 100,000 units of the base currency of the currency pair, which you are buying or selling.
  • Stop-Limit Order — order to sell or buy a lot for a certain price or worse.
  • Stop-Loss Order — order to sell or buy a lot when the market reaches certain price. It is used to avoid extra losses when market moves in the opposite direction. Usually is a combination of stop-order and limit-order.
  • Support — price level for which intensive buying can lead to the price decreasing (down-trend).
  • Swap — overnight payment for holding your position. Since you are not physically receiving the currency you buy, your broker should pay you the interest rate difference between the two currencies of the pair. It can be negative or positive.
  • Technical Analysis — the analysis based only on the technical market data (quotes) with the help of various technical indicators.
  • Trend — direction of market which has been established with influence of different factors.
  • Unrealized (Floating) Profit/Loss — a profit/loss for your non-closed positions.
  • Useable Margin — amount of money in the account that can be used for trading.
  • Used Margin — amount of money in the account already used to hold open positions open.
  • Volatility — a statistical measure of the number of price changes for a given currency pair in a given period of time.
  • VPS (Virtual Private Server) — virtual environment hosted on the dedicated server, which can be used to run the programs independent on the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.

RAJPUT FOREX BROKERAGE

8:49 PM Posted In Edit This 0 Comments »
Keep it up forex traders. Every Forex trader like any other professional needs tools to trade. One of these tools, which is vital to be in market, is a Forex broker and specifically for Internet - on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market. While choosing a right Forex broker things to look for are the following:

* Being a professional company you can trust
* Provide you with real-time quotes
* Execute your orders fast and accurately
* Don't take a lot of commissions
* Support the withdraw/deposit methods that you can use

For beginning Forex traders I recommend these four brokerage companies that are probably the best Forex brokers to start with:

* FXOpen — one of the most popular and progressive brokers with Meta Trader platform and comfortable trading conditions for all kind of traders.
* InstaForex — a reputable Meta Trader 4 brokers, allows Islamic Forex trading accounts, while you can deposit and withdraw money via Web Money.
* FXcast — good because you can start trading Forex with as little as 10$, use Meta Trader 4 platform and the dozen of various deposit and withdraw methods, including Web Money, e-Bullion and wire transfer.
* LiteForex — broker that supports Meta Trader 4 Forex trading platform and doesn't require a lot of money to start with.

RAJPUT PSYCHOLOGY ABOUT FOREX

7:18 PM Posted In Edit This 0 Comments »
Amazing psychology. While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex traders, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being a professional Forex trader:

* Your greed
* Over trading
* Lack of discipline
* Lack of confidence
* Blind following others' forecasts

These are very professional books on psychology written specially for financial traders:

* Calming The Mind So That Body Can Perform
* The Miracle of Discipline

RAJPUT MONEY MANAGEMENT IN FOREX

7:17 PM Posted In Edit This 0 Comments »
Even if you master every possible method of market analysis and will make very accurate predictions for future Forex market behavior, you won't make any money without a proper money management strategy. Money management in Forex (as well as in other financial markets) is a complex set of rules which you develop to fit your own trading style and amount of money you have for trading. Money management play very important role in getting profits out of Forex; do not underestimate it. To get more information on money management read it.