meta content='kdmahdi' name='author'/> Tech News: January 2013

Sunday, January 20, 2013

Basic trading Knowledge of Forex

Basic trading Knowledge of  Forex Part-II

  • You must have idea about Forex quote. In Forex quote you will see bid price in the left and sell price in the right.
  • Then decide what currencies you want to buy or sell.
  • Economy has a great factor in change of currency price. You need to make a good prediction about the economy of the US, if you want to buy US Dollars. If you think US economy will continue weaken then you should not buy rather sell if you have any.
  • You should have a good idea about the trading position of the country. If a country has many goods to export then its economy will boom and their currency value will increase.
  • Politics plays an important role in the economy of a country. If the political condition of a country remain calm. Then the economy of that country remain stable.
  • Keep up to date with the economic report of the country.

How to calculate Profit:

You come to this business to get profit. If you do not get profit that business will not be interesting to you.
  • A pip measures the change in value between two currencies. Usually, 1 pip equals 0.00001 of a change in value. For instance, if your EUR/USD trade moves from 1.546 to 1.547 your currency value has increased by 1 pip.
  • Multiply the number of pips that your account has changed by the exchange rate. This calculation will tell you how much your account has increased or decreased in value.

Analyze the Market:

There are several methods of analyzing the Forex market:

 Technical Analysis: 

Technical analysis involves studying of price movement of the currency. With the charts and historical data you can predict the movement price based on past experience.

Fundamental Analysis:

Fundamental analysis involves the whole study of economic and social condition of the country. Fundamental analysis can play a vital role in your trading. It will help you to make correct decision.

Friday, January 18, 2013

Basic Trading Knowledge of Forex

 Basic Trading Knowledge of Forex

Those people who are dreaming to boom their earning within in a short time, Forex is the correct place for them. But, one thing should be kept in mind that where there is a chance of earning  a handsome money, there is also chance of loosing money. Forex can make you rich within in a short time. Again , it can snatch from you what you have. Forex is a risky business, but if you have sufficient knowledge about trading you can be successful. Before starting Forex you need to make some analysis. To understand Forex you need some basic knowledge.

Forex Trading Basic:

  • There are two types of currencies- Base currency and Quote currency. Base currency is that currency which you are selling and Quote currency is the currency that you are purchasing. You can buy 1 currency in exchange of another currency such as- Dollars with Pound.
  • In Forex, you will see exchange rate which can tell you how much you need to spend to purchase a base currency. An example can clear your confusion. If you want to buy Us Dollar with British Pound you can see exchange rate like this GBP/USD= 1.450. This means you can buy 1.450 Dollars with 1 British Pound.
  • If you want to buy base currency and sell the quote currency you can see the term long position which means you want to sell US Dollars and buy British Pound.
  • A short position means you want to sell base currency and buy quote currency. That means,you would spend British Pounds to buy US Dollars.
  • If your broker is willing to buy base currency in exchange of quote currency that is called bid price. It is the best price in which you want to sell your quote currency.
  • There is another term that is offer price which your broker want to sell base currency in exchange of quote currency.
  • And the last one is spread which is the difference between ask price and bid price.

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Wednesday, January 16, 2013

Start Earning By Forex Trading

How to Start Forex Trading

Before starting Forex Trading, you should know what forex is. Forex or Foreign Exchange is the market of currency exchange where you can buy or sell currencies. It is largest market of the world. The daily trade volumes of this market about $3.2 trillion. You have known about Forex. Now I will tell you how can start forex trading sitting at home.
  • Starting Forex Trading is not very difficult one. But, you need to remind one thing that every business has risk according to its size. Like others forex trading is also a risky business. Nor risk no gain. If you    are ready to take risk than get ready to start forex trading.
  • At first, you can start an online trading courses where you can get basic and technical idea about forex trading.
  • Open an account where you get trained. Most of the broker provide demo trading. So, you can trade free with their demo trading. After getting enough idea about trading, then you can start small trade or mini trade.
  • Register with an online broker. Choosing the right broker is very important. They have great effect on your trading. Brokers provide services with a little commission. They can act as your technical advisers in your trading and help you to make the best decision.
  • Forex market remain opened for 24 hours. Before coming to it you should think over it. A good deal of effort should be given here. So, you can get success.
  • If you get enough knowledge about Forex trading, then you can start day trading. You need to be serious to become a day trader. Because, you need to most of your time to get success. Otherwise, you can fall down. You need to go in depth of knowledge.
  • Most of the people are in a wrong conception that is they think day trading is very simple. Whoever have this kind of thinking cannot stay in this business for a long time. It takes a good deal of time to be a good trader who has a good amount of knowledge and skills. So, you can go to the list of losers if you think that day trading is very simple.
  • To be a good trader is a long time process. So, take your time and join to the blog or community where you can get a huge amount of knowledge. Experts are ready to give any answer of the questions. Besides, your eyes need to keep open 24 hours to get latest news of world economy.

  • Another important thing you need to keep in your mind that which style of trading you will select. There is a kind of trading which is called carry trading. If you own a currency you can earn interest rate associated with the currency. Another type of currency trading is known as a Support or Resistance. In this trading strategy, a support level is a lowest price a currency can trade at over a period of time while the resistance level is a price which a currency can trade.
  • The most important decision you need to make when currencies rate are falling down. You need to have dare to sell your currencies even you are in the loser side. Set a limit to avoid loosing all your investments. You can limit your lose onto 5 percent in every trade and wait until the next chance comes in.
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