Introduction of Forex Market

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The history of the FOREX Market as it exists today begins before 1971 when the FOREX market departed from The Bretton Woods Accord to reflect a radical change in Universal fixed exchange rates. After World War Two, the Bretton Woods Accord was introduced to the FOREX market to stabilize the devastated world economy. The FOREX Market, often considered to be the playground of governmental institutions operating under the agency of central banks,

expanded its horizons in recent years to include corporations, hedge funds, and speculators and most recently with the dot com boom and the expansion of the world wide web, now the private investors have been afforded the lucrative opportunity to be a part of the action. The appeal of The FOREX Market is one of non-stop, twenty four hour a day trading for the five business days of the week. The first tentative steps towards a global economy have created a fast moving liquid market facilitating a wide variety of transaction options. Combine this with the ability to make money in both winning and losing markets and you will see why The Forex Market is considered by some to be the fastest developing most lucrative business opportunity open to the savvy investor who has the skill, intelligence, acumen and backing to create substantial profits. The Forex Market provides a number of ways for investors to get in on the global high stakes action. From the spot market to spread betting, options, contracts for difference and futures, these are just some of the ways FOREX can turn a modest portfolio with moderate potential, into a heavy hitting enterprise totaling far in excess of what it once was. The BIS or Bank of International Settlements estimated in a recent survey that over $1,200,000,000.00 is exchanged everyday on The FOREX Market. Currently industry analysts think the market is not living up to its 1978 potential of $1,490,000,000.00 and still view this as an attainable goal for the FOREX Market of the future.

Forex Trading:
In short, it's buying and selling currencies - or money, if it sounds

better. Imagine that you live in Great Britain. Your friends tells you he is going to the US next week for vacations and therefore he requires some American money. Obviously, in the US no shop would accept British pounds. Luckily, you have some dollars left from your last business trip to New York, so you take your wallet, get twenty banknotes of 100 USD and sell them to your friend. Obviously, he pays you back with British pounds - because you live in London, you are not interested in any other currency. Well, you have just made a forex operation! Now, imagine that instead of taking British pounds from your friend, you ask him to give you back the same amount he received - 2000 USD, to be accurate. At this moment, the exchange rate was 1.4282, let's assume. He spends two joyful weeks in the US, traveling around the states, tasting some delicious stakes with Californian wine and even singing local anthem. Then your friend comes back to London and he has to give you back 2000 USD. Luckily, the exchange rate of US dollar versus British pound has increased dramatically due to some latest news from the US - it's 1.4021 now, meaning US dollar is now more expensive in the UK! So, once you receive 2000 USD back, you go to a currency exchange window at your favorite bank and change dollars back to pounds. And then surprize, you made a profit because of the currency rate fluctuations! Now, you actually did some primitive form of forex trading!

Nowadays, there are more sophisticated and high-tech ways to do forex trading rather than selling currencies to your friends and fellows. You can open an account with a forex broker and start fx trading online - from any place in the world, with tens or hundreds of different currencies! And thanks to leverage - automatic "credit" system, your profits can increase ten times or even one hundred times! So, why waste time, why not start live forex trading right now! Forex4you will be glad to assist you with any queries that may arise throughout the process! 

Forex Volumes:

Forex is the biggest financial market in the world. In April 2004 its average trade balance was about 1.9 trillions of US dollars per day and that is:
 Eleven times more than average summarized turnover volume of all

world exchanges (157 billions of US dollars);
 Forty times more than average turnover of NYSE - the biggest

exchange in the world (46 billions of US dollars);  300 US dollars for every person living on the planet. In April 2007 the average trade balance grew to 3.2 trillions of US dollars per day (and that is ~70% increase to the amount of April 2004). The major markets are: USA, Great Britain and Japan. Great Britain and USA deal with about half of the whole Forex market transactions. The maximum

level of market activity takes place during hours of major markets simultaneous work. Probably it is rather difficult for a beginner to realize, how to gain profit of Forex, let us demonstrate you some example: After you open a real account with 2000 Euro on it (classic account), you define the upper and lower limits of Euro to US dollar movement diagram and make up your mind to sell 200.000 Euro (2 lots) at the price of 1.2850 (bid price) US dollars for one Euro from the upper limit. You have Euro on your account. Our company provides you with 198.000 additional Euro to your existing 2000 for free, so now you have 200.000 in total. By placing an order you sell your Euro. With the help of marginal leverage your real pledge is 100 times smaller then the amount of money sold that is 200.000 / 100 = 2000 Euro (leverage effect). This very sum will be a pledge for a credit (marginal) operation on your account with maximum possible pledge as there is no more money left on your account. 200.000 Euro at the rate of 1.2850 makes 257.000 US dollars. Further the price decreases to the lower limit (for 100 points in the given example). You decide to buy 200.000 Euro sold previously at the price of 1.2750 (ask price) US dollars for one Euro, that makes 255.000 US dollars. 200.000 Euro you bought are withdrawn from your account automatically and the difference is left on it. Thereby you gain profit on difference between amounts sold and bought on decrease of the rate and that makes 257.000 - 255.000 = 2000 of US dollars.

By decrease of the rate for 0.8% (from 1.2850 to 1.2750), you earned 78.43% (2000 US dollars from 2000 Euro by the market rate of 1.2750) from your initial account of 2000 Euro just in one day.

The other variant of gaining profit on the Forex market is based on the rise of the EURUSD currency pair rate: You suppose that the rate of Euro to US dollar (EURUSD) will increase. You have 2000 US cents (cent account) on your account. You buy 1500 Euro at the price of 1.2750 for 1500 * 1.2750 = 1912.50 US dollars. It is possible because of the credit that lets you deal with sum 100 times more than on your actual account (in this case the maximum possible for trading operations sum is 20 * 100 = 2000 US dollars).

Some time later the rate increases. You sell 1500 Euro at the rate of 1.2850 and get 1500 * 1.2850 = 1927.5 US dollars.

As a result of a speculative operation (bought cheaper, sold more expensive) you gained 1927.5 - 1912.5 = 15$ and that's your profit. You earned 75% from your initial account as the rate grew for 0.8%. The company gets profit with the fee as a spread between ask and bid prices that makes 30 US dollar in the given example (the EUR to USD spread is 0.0002 or 2 points). You can study all the terminology in our Glossary. Percentage-change of the rates spread is not taken into account in the given examples as it has an insignificant impact to the result. The given marginal leverage is standard (1 to 100), but you are able to use 1 to 10, 1 to 200 and 1 to 500 leverages. In case of classic non-cent account calculations are done by the analogy with the cent account, the difference is in the currency of an account. If you use the given operations by turns, you would get the 75+75=150% profitability from your initial account. In fact you may get income more than 150% by using correspondent methods of capital management. Also, while trading, you should always keep in mind risks management methods.. Forex market participants All operations on financial market are done via the system of special institutions: central banks, commercial banks, dealers and brokers. Every Forex participant has its own volume of deals on the currency market. For example, central banks have the biggest turnover that exceeding hundreds of millions US dollars a day. Commercial banks and dealers have smaller

turnover. Daily turnover of brokers is considered to be about 25-30 millions of US dollars that makes 2% from the general volume of all Forex trading. • Central banks of countries These banks regulate money and credit flows with instruments defined by law. The main functions of central banks are emission (issue) of money, carrying out of monetary and credit policy and national currency policy. For example if a bank carries out currency intervention it may lead to the rise or fall of the national currency rate. • Commercial banks These are financial intermediaries that accept deposits from legal and private persons, take advantage of investing this money, return it to depositors, close and operate bank accounts. Every country has some big commercial banks that are able to influence currency rates. In 2006 the Deutsche Bank turnover was of 19.26% from the whole Forex market turnover • Brokers Brokers are legal or private persons that represent agents or negotiators in trading who meet buyer and seller of securities or currency together. Broker works in the name, by order and at the expense of his client and may provide some additional services. Broker gets a commission bonus for fulfilling customer's orders. Forex market tips.

• Dealers Dealers are companies or private persons that operate on the market at their own expense and in their own name, in other words they sell and buy currencies or any other assets with their own money

Forex currency market The word value comes from the Latin “valeo”, “I stand”. Valuable currencies today are:
• •

Monetary units of countries with indication of type (paper, gold, silver); Monetary units of a number of foreign countries, including payment and credit documents expressed in such monetary units and usable for international accounts (cheques, bank bills etc.)

Basically, the Forex currency market is the sum of all transactions made by its participants (banks, exchanges, funds, investment, brokerage and external trading firms, as well as private persons, i.e. traders) to exchange some types of currency. Each second, the Forex market processes thousands of transactions, bringing profit to participants. The Forex currency market has the following classification of currency types:

Freely convertible currencies have no limit on financial transactions of any kind, may be used by residents and non-residents of a country, and can be converted into any foreign currency; Partially convertible currencies are usually those with a number of restrictions on use by non-residents and a specific range of allowed transactions. Thus, most Western European currencies are partially convertible; restrictions on use by non-residents were removed in 1958, and now any amount on an account in such currencies may be converted to a freely convertible equivalent; Non-convertible currencies have restrictions for both residents and nonresidents barring a number of financial transactions. They are not convertible and are used only inside their specific countries. For instance, non-convertible currencies are used in developing and dependent countries, and tied to the currency of a metropolitan country that sets exchange rates to give itself an advantage. Non-convertible currencies are not used on the Forex market.

The Forex currency market has two types of operations: buy and sell; each currency has demand and supply, allowing transactions with no real restrictions on volume or time. The Forex currency market also entails regulation of the exchange rates of various countries by balancing supply and demand.

The Forex currency market has a number of so-called primary currencies – most daily transactions are conducted in these:

USD – the U.S. dollar. No doubt the backbone of the Forex market. Traders often call the USD the buck, the greenback, the dolly.

EUR – the euro, common currency for the European space, second on Forex in terms of popularity. Before the euro, the DEM Deutschmark, Germany’s national currency, took its place. GBP (Great Britain Pounds) – the pound sterling, Britain’s national currency. Financier slang also includes the names sterling, pound, and cable.

CHF – the Swiss franc. The slang term swissy is used alongside the official name. JPY – the Japanese yen. The Forex currency market also uses: BAUD – the Australian dollar, often referred to as the aussie by financiers.

СAD – the Canadian dollar.

NZD – the New Zealand dollar, also known as the kiwi among

Forex currency market traders. Another incredibly important concept on the currency market is the currency exchange, which is a key link in the chain of currency market trading services.

Essentially, the currency exchange is a place where transactions are made. In this case, the currency is in free trade, shaping the process of constant currency exchange fluctuations. The main characteristic of the currency exchange is that exchange rates are shaped and noted as part of its operation, through the effect of supply and demand on the selling and buying of currencies. This very process is the main objective of the Forex currency exchange: shaping the exchange rates based on objective effects of the economic factors of specific countries. The currency exchange essentially regulates exchange rates. With the development of technology, more and more people today use the currency exchange online, trading in real time via an internet connection. The online currency exchange fulfils a number of functions besides affecting exchange rates: it lays the technical groundwork for free trade, creates and applies the rules for trading participants to enter (covering e.g. funds, business reputation), and creates the conditions and rules for making the transactions themselves. The obligation of monitoring observance of these conditions lies with the currency exchange as well. The largest currency exchanges are in London, New York and Tokyo. Thus, the online currency exchange can cover practically the entire world and provide nearly equal conditions for all currency market participants. This has

made the Forex currency exchange the largest exchange in the world, with a turnover of more than several trillion dollars per day. Central banks Central banks determine the fiscal and credit policies of countries. The main goal of any central bank is to ensure price stability and control inflation. Central banks are also some of the largest participants on the Forex market. Market Forecasts. The largest central banks in the world are:
• • • •

Bank of Japan; European Central Bank; Bank of England; U.S. Federal Reserve System.

Each beginner on the international currency market approaches their operations with utter seriousness. The very first day poses a very justified question: what is the way to play in order to at least avoid loss in the long term? Forex trading strategies will help.

Forex strategies: programmes for functioning on the market

By applying a specific algorithm applicable to a specific market situation, the Forex strategy determines a trader’s action on the market. On the internet, you will find a number of various Forex strategies invented by traders that will guarantee profit given a specific market state. Successful traders have their own Forex strategies which they will obviously never share with the public because this is their own income mechanism, honed over the course of months if not years. Newbies and Forex strategies: is success guaranteed?

There is another obvious fact as well: not even the most loss-proof play methodology will bring a new user millions straight away. The market always changes, and newcomers simply cannot adjust to the new situation here in time. Forex strategies are based on success and failure, on chasing profits along a road that is known for its pitfalls. What Forex strategies to use?

There are a number of universal Forex trading strategies that allow you to stay afloat for a long time without going in the red. Overall, using some Forex strategy on the market is required, because random bets will not bring a positive result. This has been proven time and time again. Of course, sometimes this may turn into a very successful deal or two, but stable profit becomes impossibility over time. The experience of professional traders shows that a personal Forex trading strategy is the most efficient and comfortable solution for a trader. You will no

doubt agree that an active, risk-taking person and their more cautious, riskaware colleague who scrutinises the situation before making a move are unlikely to use the same methods. Only by trying out new things will you be able to select a path that suits you the most. You will see that rules that clash with your own values are hard to follow. Forex measures

Macro

economic

performance characterises

economic

development,

indicating economic growth or decline. Based on these measures, price shift trends may be predicted. Thus, it may be said with certainty that publishing of favorable data may lead to considerable and long-term shift in exchange rates. These performance indicators include Nonfarm Payrolls, GDP, Industrial Production, CPI, PPI and a number of other macro economic performance indicators. The date and time of a specific indicator being published are known in advance. There are so-called calendars of economic indicators and major events in the functioning of some countries (noting specific dates or approximate release time). The market prepares for such events. There are expectations and forecasts on the value of a given indicator and its interpretation. The release of data may lead to sharp exchange rate fluctuations. Depending on how market participants interpret a given indicator, an exchange rate may swing either way. This swing may either reinforce or adjust an existing trend,

or even start a new one. A given outcome depends on several factors: the market situation, the economic situation of countries hosting the currencies, prior expectations and attitudes, and, finally, the value of a given indicator. Holidays Schedule The table of 2010 holidays which are days off for the proper country. Date 01.01.2011 01.01.2011 01.01.2011 01.01.2011 01.01.2011 01.01.2011 01.01.2011 01.01.2011 02.01.2011 02.01.2011 03.01.2011 11.01.2011 17.01.2011 26.01.2011 06.02.2011 11.02.2011 15.02.2011 20.03.2011 22.04.2011 22.04.2011 22.04.2011 22.04.2011 22.04.2011 22.04.2011 24.04.2011 Country Australia Canada Japan European Union New Zealand Switzerland United Kingdom U.S. Japan New Zealand Japan Japan U.S. Australia New Zealand Japan U.S. Japan Australia Canada European Union New Zealand Switzerland United Kingdom Australia Currency Type AUD New Year CAD New Year JPY New Year EUR New Year NZD New Year CHF New Year GBP New Year USD New Year JPY Public holiday NZD Public holiday JPY Public holiday JPY Memorial Day USD Martin Luther King Day AUD State Holiday NZD State Holiday JPY State Holiday USD State Holiday JPY Vernal equinox AUD Good Friday CAD Good Friday EUR Good Friday NZD Good Friday CHF Good Friday GBP Good Friday AUD Easter Monday

Aggressor A Appreciation Arbitrage Ask Asset B Back office Balance Bank Rate Base currency Base interest rate(benchmark interest rate) Basis Point Bear Bear market Bid Big figure Bretton Woods Bretton Woods Agreement Aggressor A Appreciation Arbitrage Ask Asset B Back office Balance

Bank Rate Base currency Base interest rate(benchmark interest rate) Basis Point Bear Bear market Bid Big figure Bretton Woods Bretton Woods Agreement Broker Budget deficit Bull Bull market Bundesbank Buy Buy Limit order Buy on margin C Cable Candlestick chart Central bank Chartist Closing a position Closing market rate Commission

Confirmation Confirmation Consumer Price Index (CPI) Correspondent bank Counterpart Cover Cross rates Cross-rate Currency Currency basket Currency Intervention Currency pair Currency risk D Day order Day trade Day trader Day trading Dealer Depreciation Deutsche Akzien Index(DAX 100) Devaluation Direct quotation Discretionary account Diversification Dollar Dow Jones Averages (DJA)

E

Equity Euro European Currency Unit (ECU) European Monetary System (EMS) Execution

F

Fast market Federal Deposit Insurance Corporation (FDIC) Federal Reserve System (Fed) Fill Fill price Financial risk Flat Floating profit/loss FOMC Foreign exchange Foreign Exchange (Forex) Foreign exchange risk Forex Forward Forward points Forward rates or forward price Fundamental analysis FX

G Gap Good Till Cancelled Order (GTC)

Gross domestic product(GDP) Gross National Product(GNP) H Hedge Hedged margin Hedging I Initial margin Initial margin requirement Instant execution Interest rate Carry J L Jobber Leading indicators Leverage LIBOR LIBOR (London Interbank Offered Rate) Limit order Liquidation Liquidity Locked positions Long position Low price

Broker Budget deficit Bull Bull market

Bundesbank Buy Buy Limit order Buy on margin C Cable Candlestick chart Central bank Chartist Closing a position Closing market rate Commission Confirmation Confirmation Consumer Price Index (CPI) Correspondent bank Counterpart Cover Cross rates Cross-rate Currency Currency basket Currency Intervention Currency pair Currency risk D Day order Day trade

Day trader Day trading Dealer Depreciation Deutsche Akzien Index(DAX 100) Devaluation Direct quotation Discretionary account Diversification Dollar Dow Jones Averages (DJA) E Equity Euro European Currency Unit (ECU) European Monetary System (EMS) Execution F Fast market Federal Deposit Insurance Corporation (FDIC) Federal Reserve System (Fed) Fill Fill price Financial risk Flat Floating profit/loss FOMC Foreign exchange

Foreign Exchange (Forex) Foreign exchange risk Forex Forward Forward points Forward rates or forward price Fundamental analysis FX G Gap Good Till Cancelled Order (GTC) Gross domestic product(GDP) Gross National Product(GNP) H Hedge Hedged margin Hedging I Initial margin Initial margin requirement Instant execution Interest rate Carry J L Jobber Leading indicators Leverage LIBOR LIBOR (London Interbank Offered Rate) Limit order Liquidation

Liquidity Locked positions Long position Low price

The best time for trading

There are just few tips on what time it is best to trade on Forex. In fact, there is not much information on this issue too because it's not popular among traders. However, there are several recommendations that could and should be followed. First recommendation: The best time to carry out operations with GBP, CHF and EUR is the period from 10:00 to 22:00. With currency pairs including the JPY it is best to deal in the morning from 3:00 until 8:00, and afternoon, from 15:00 till 22:00 (Moscow time). Second recomendation: Use the calendar of world economic news. In this case it is better to place orders right before news are released.

It is worth mentioning that not all the traders agree to follow the second recomendation. Many of them think that one should not be pesented at the market when news are published in calendar. These people follow their own rules in choosing time for trading, namely:

If the deal is arranged according to daily schedule, the question «when to trade?« is solved automoticaly. The analysis of a new candlestick should be done at its appearence or later in the night or in the early morning.

If the deal is arranged according to Н4, the question «what time to trade?» simply don't have any sense. The key-moment of that situation is the appearence of some picture in which you see the moment whaen the price richkes the bottom and so on. That's why one should better check the state of diagram movements every full circle of a period. It means that you have to look at them at least once in 4 hours.

If the deal is arranged or opened by Н1 (М30, М15, М5) it is

wise to

use the following approach. It is known that biggest fluctuations of the market always occure at the same time of the day. Namely: a) b) c) an hour early in the at after noon morning from about (that is 3:00 till 5:00, 10:30 13:00)

d) a big period of time from 16:00 till 19:00. Usually peaks occure at 16:45 and 18:30.

Price effect

This effect is considered to be the main reason for losses on financial markets including Forex. Mainly it occurs because of the mistakes done by newbie traders. Let’s examine what is price effect and how to behave when you face it. After you analyzed the market situation and you consider your analysis to be done thoroughly you open a position. Unconsciously realizing that you are on your way to gain profit you start to invest nearly all your money. At that moment something incomprehensible happens and price goes down instead of go up.You don’t understand what has gone wrong. You have just finished your colossal study of the company, you spent a lot of time counting. You think the price just had to go up but you see how it falls lower and lower just before your eyes. You can’t admit that you have done a mistake as you don’t want to accept the situation and loss. That is the “price effect”. This kind of effect symbolizes the situation when a trader won’t close the position that incurs loss. He would get into arrears, come off worst but would not close the position thinking that he had spent too much time, effort and nerves for it. The kind of price effect when you don’t want to put up with the loss of the major part of your working capital is widespread and a lot of

people are familiar with it. It is worth mentioning that it is not the only example. There are other interesting variations of price effect activities. These activities are usually inconspicuous for the major part of traders but they may effect operational decisions.

Any work should be paid and you don’t want all your efforts to be unavailing. That very idea makes you lose your money. Imagine a situation when you have been thoroughly analyzing some company for some days. All your attention was fixed on every detail, every indicator, and every fluctuation of a currency or a share price. You find out reasons, examine economic affairs in macro and micro scales. Now that you see that all your efforts go against the price you can’t afford a thought that all your efforts were in vain and as a result you make your investment in the examined company all the same. You can’t even realize we you did that investment. It will seem to you that it is high time to do something and gain profit at last. You are going to be sure that the best time has come and all your efforts will cause you countless riches. This development of situation will definitely cause more losses and finally will lead to a failure. You should always remember the power of desire that will require satisfaction of your efforts. This power is your sworn enemy on your way to success as despite of all your expectations leads to bankrupt.Struggle with this enemy is difficult but necessary thing. First of all you shouldn’t retire into yourself. You should control all your efforts:

analysis, studies, examinations and the desired level of profit – don’t let these factors be on the contrary with common sense. Nobody demands a deal or investment from you on the market. You should learn to feel the right moment. That will bring success to all your efforts. Moreover, remember the phrase “Knowledge is power”. Now that you know what the price effect is you should remember about it before executing a deal, always try to objectively evaluate your decision.

Forex market during crisis

Some time ago the world economic crisis started. Life of people became difficult, incomes decreased and the state of affairs changed. In many countries unemployment increased and manufacturing volumes decreased. Nearly all the countries have started anti crisis policy on both, local and international levels but the victory seems to be far away from the present moment. Meanwhile the Forex market remains the same. Recently different countries pour money into their economics from time to time. With those pouring the state tries to support the banking sector. Meanwhile such kind of support influences price fluctuations on the currency market providing a trader with good opportunity to increase his income.

The most important thing for a trader is to be attentive and disciplined in order to avoid big losses during periods of sharp changes in currency rates. There is also an additional force that lives up the market. It is the panic reaction of participants. This force has a great impact on the market atmosphere, state of affairs and development of current situations. Thereby, crisis period is not the time of empty pockets but the time of possibilities to gain profit. It is natural as changes including collapses of currencies may be also profitable foe a wise trader. For those who prefer long-term trading fluctuation of 100-150 points don’t make any bother. Those ones who trade during a session try to compensate the differences by considerable amount of deals. Of course if one wins the other loses that’s why it is important to be ready for the price to go both directions even if there are some certain forecasts have been done. One can do nothing with it, it is life and it changes but who said that Fortune won’t smile on you Broker services on Forex What do we know about brokers of the Forex market? Brokers or broker companies supply interaction of traders with the Forex market providing necessary information and software products, accept purchasing and selling orders and bear responsibility for their fulfillment. Besides that brokers provide traders with marginal leverage, guarantee continuity of quotations, anonymity of deals and possibility of setting up prices of currencies. In other words, every Forex market participant needs a broker and his services.

Overviews of brokers. Brokers are negotiators between those who sell and buy currency, besides that, brokers provide consulting services. Practically the range of broker’s services is wider than that, but not all of them are necessary for a successful trading. It is obvious that these services are not for free; thereby you have to make a reasonable choice of your set of services. Overviews of brokers are regularly published by the media and it means that the amount of such companies is increasing. Indeed, there are very many different brokers but only some of them provide comfortable working conditions for traders and become a real and reliable partner for them How to choose your broker? Reviews about brokers won’t give you the definite answer what broker to choose as they are composed by independent experts. Trader’s success is dependent on how fast a broker reacts to a placed order and the financial state of a broker. Working experience of a broker is the most important aspect in those reviews. Besides that, it is important to know whether a broker has a license for carrying out broker services on Forex, an insurance system and department of risks analysis. On what details should one pay attention when choosing a broker?

Broker should provide a trader with the software for their effective interactions. First of all, reviews of brokers point out instant fulfillment of orders and automatic crediting of regular percents to trader’s account. You

may find additional sources of information about broker services and comparison of their quality for different broker companies.

Stock market for beginners Many beginners underestimate the serious of work on the Forex market. The stock market trading mechanism seems to be very simple for them. The idea that it is enough just to transfer money to the opened account and start trading is totally wrong. Success is impossible without self-cultivation Self-criticism is not popular among ambitious traders; that is why the absence of understanding of some specific factors and tendencies and absence of clear program of selfdevelopment and self-cultivation leads to zero balance of account. Seminars, trainings, theory and practice of trading lead to success. Work is work and your income depends on your desire to work hard and your commitment. System is the path to profitability One can’t build his capital on a single desire to gain profit. The absence of a situation analysis leads to bankruptcy, breaking all your dreams. However, active self-training and a small starting capital provides trader with stability.It is much cheaper to learn on someone else’s mistakes. Forex is not a casino where everything is mostly dependent on the Fortune though there are examples of momentary millionaires occurring seldom. Stock market for beginners is first of all a theory and then practice. Self-confidence, trading skills and theory basis altogether provide you with professional growth and financial independence.

"Gentleman's kit" of a successful trader It is worth mentioning that you do not need any supernatural abilities to have successful trading on Forex. All you need is to set your goals and overcoming difficulties achieve them with the help of a Smartphone or a computer connected to the Internet. Many people find trading on the Forex market to be an attractive business or a job as a trader is not limited in time, has no boss and doesn’t have to suffer traffic jams on his way to stuffy office. One should efficiently use this freedom in order to gain profit and risks provoke interest and make the taste of victory sweeter. Traders receive money and joy for their work. Television and Forex There are many different special economic TV-channels appeared during last years. 24 hours a day they broadcast latest economic news and give some recommendations. Other common channels keep on simply broadcast exchange rates and the cost of natural resources and so on. Let’s try to figure out the influence of those TV-channels on the Forex market. Can they be of any harm or use? It is sure that every trader wants to know the time when the price goes up or down to make actions to gain profit. Usually beginners start making various analyses but only 15% of their decisions based on them are correct. Losing money traders start to panic and call the hot-lines of various specialists. Some of them call to live talk-shows of those channels and put their questions there.

Usually, the consulting guest-specialist just describes some past events and makes his forecasts. In fact the situation may turn out to be different from that described by the specialist. So, that’s why those traders who followed consultant’s advice lose their money as they didn’t take into account unspoken factors. So, does it mean that TV-people bring no use to traders? Definitely no. It means that a trader should rely on his own conclusions in different situations and not the ones borrowed from TV. In other words we would like to advice the following: “Trust but verify”. Mobile Forex trading This article is devoted to a new trend in trading: trading straight from your cell phone. Everybody knows traders are normal people who can’t spend their time at the computer non-stop. They sometimes inevitably need to leave their trading terminal. On the other hand, the world of currency markets is unpredictable, and who knows – maybe right as you leave the market presents a favorable situation that would allow you to make a great profit if you could make a decision on the spot. There is a way out. Now you can trade using your own cell phone! This is possible thanks to a mobile version of the trading terminal, which may be installed on any PDA or Smartphone.

If you have such a device, you will be able to monitor your trading account, follow your trading area at anytime and anywhere: out with friends, in a traffic jam, resting in the countryside or wherever else you like. The latest version of the mobile terminal gives you:
• • • • •

The state of all trading orders Most analysis tools All available graph periods A number of trading signals Financial news online

A considerable advantage of both mobile and desktop terminals is their complete compatibility. For instance, you open an account (real or demo) on you PDA and can then use it from a desktop computer, and vice versa. All you need to begin mobile trading is to open an account and specify the data in the PDA or Smartphone terminal. Be careful: to work with a mobile terminal, you need a PDA with MS Windows for Pocket PC2002 or newer, or a Smartphone with MS Windows Mobile for Smartphone 2003 SE or newer. New technologies continue to penetrate our lives. A large number of advanced traders who have tested mobile trading technologies for they are convinced that mobile trading will take a leading role in the nearest future. Mobile transactions are convenient, try it out for yourself! Don’t miss the opportunity! How to build your own trading strategy

Today Forex market participants analyze huge amounts of information depending on the type of their strategy. Some of them try to develop their own strategy from the beginning, others use ready-made strategies and the third ones prefer using combinations of various strategies adjusting them for themselves. It is important to evaluate information received from the Internet filtering amateur opinions from valuable information from professionals. In fact it is really hard for beginners to find out their own style of trading. Let’s try to figure out the most suitable strategy for you. There are some basic rules for you to start with:

First rule: When studying all the materials about trading strategies it is important not only to choose the one you like the most and test it on your demo-account but try to add something from yourself that comforts you. If you are able to create your own “formula of success” you will increase your professional skills and knowledge. Second rule: «Do not invent bicycle once again». Use the results of other traders and analysts, study existing strategies and find the one that comforts you the most. Third rule: Take the biggest time-frame into account as short periods of time may contain market noises of false indicators. Fourth rule: While trading does not limit yourself with analyzing one time-frame only. Fifth rule: Carry out analysis on the basis of economic news. It is necessary to understand and guess the way news influence the market.

Sixth rule: Use Stop and Profit functions. It is necessary to use the Stop function not only for beginners but for experienced traders too. Even if you watch over the market 24 hours a day there are psychological factor and many other side effects that you can avoid with the help of the Stop function set in time. Seventh rule: Use the currency pair volatility. Some currency quotations are very volatility, so it enables them to do sudden jumps. That’s why it is necessary to buy or sell them with minimum amount. Stops should be set as far as possible from the support (resist) line. Eighth rule: Be attentive when entering market on month closing moments and in the end of a trade week. It should remember that it is possible for your strategy to failure in the end of the working week. Let us explain why? American session is very volatility on Friday and the reason is news and great amount of closing operations. The same reasons are repeated in the end of the month. Gradually you will form your
own list of rules and some of those above might be neglected, but in the beginning you should better follow these simple rules and your trading will become stable and effective.

Experts and Forex ratings: what are the advantages of «Forex4you»? Forex4you is an experienced Dealing Center with high-quality broker services for those who strive for financial stability, respectable income and comfortable trading. With the help of our experts many of our traders increased their capital. Now we can say without false modesty that Forex4you is one of the most successful Forex oriented projects.

Stability is our credo The high Forex rating of our Dealing Center is conditioned by trust of our customers and by our understanding of their requirements. Initially aimed to achieve success professional Forex experts make it become true. With our help traders receive reliable, actual and complete information describing current Forex market situation and our perfect software provides them with maximum affectivity in trading. Besides PC versions our experts develop mobile version of our software. For beginners we offer interesting and easy to understand training programs. Powerful tools for experienced traders increase our Forex rating too. Individual approach and understanding of customer requirements Our advantages are profitable conditions of cooperation, flexible policy of providing services, transparency of broker activity, efficient and careful fulfillment of contractual obligations, competency and professionalism and quick response to all arising questions and requests. We consult our customers by phone, Internet or in the offices. We wish a great success to every our customer as ours is formed by yours. We are thankful for all people who left positive reviews in our online guestbook – it is the best award for us. What to start with? To become a trader means to become a participant of the biggest broker space. Let us start our explanations with the word “trader”. A trader is a person who speculates with currencies. The Latin word "secular" means "to observe”. The major activity of a trader is purchase or selling operations with currency pairs.

The meaning of these operations is logically basic: to buy cheaper in the beginning and then to sell them at a higher price. For example, you buy Japanese Yen at the rate of 109, 29 for 1000 US dollars. Multiply the result by the value of a marginal leverage, for example 100 and you get 10.929 Yens. Thereby you have a got the open position of yen for 1000 US dollars. In order to complete the operation you have to get your 1000 US dollars back. You see that the rate of yen has decreased to 109, 17 for the same 1000 US dollars. You arrange the second operation to sell currency. As a result of this operation your profit is 12 yens. When this position closes at 18:00 yens will be automatically converted into US dollars at the rate of closing of 109,17. In case the rate of yen changes the other way you will unfortunately bare loss. In order to minimize risks you should be patient and start practice. Professionals recommend beginners to spend 3-4 months at the monitor analyzing your demo accounts. You have to feel Forex. All that experience you get from that analysis will not only save your money but nerves too and that is more important. There are some more important tips to follow:
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Always strive for knowledge Be motivated, persistent and disciplined Remember that broker’s reliability is dependent on his stainless reputation A trading terminal should be professional and comfortable Don’t strive for gaining all the profit at once. You can never make it.

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Be prepared for losses and accept them with honor as necessary It is necessary to define the sum you can afford to lose. No use opening positions for the whole deposited sun Don’t let your excitement overcome your common sense Always remember that life is priceless!

Remember that a trader who doesn’t know the self-preserving principals on Forex should know that this market, as well as any other gives you even chances to lose your capital or gain profit. How does it work? The main Forex market currency is US dollar. In 40% of all transactions other currencies are exchanged for it. There are 5 segments in world currency market: Spot (48% of all Forex)
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Good luck!

Swaps (39%) Forwards (7%) Options (5%) Futures (1%)

Spot Forex is the place where the major part of all traders works. US dollar is changed for all other major currencies, namely: Japanese yen, Swiss franc, British pound, Euro, Canadian dollar, New Zealand dollar and Australian dollar. Forex can change some offers according to some changes on the

market. For example, in Europe now it’s getting popular to use “cross rate” trading without US dollar participation, so the Forex makes it possible for you to change, for example, Euro for pounds or yens. It is worth mentioning that traders can equally gain profit on the rise and on the fall of currency rates. Let us give an example. Sell US dollars and buy Swiss francs if you think that dollar would proceed falling. You can gain profit in case US dollar decreases in price again and Swiss franc rises. In the end you will posses franc that “contain” more UD dollars then the previous one. You should remember that during a day prices change approximately within 80-150 points limit (Forex standard unit that is 0,0001 part of a price). If a currency price has changed for 100 points and you were right in choosing the direction of the market move you gained $1000 for a couple of hours of trading. The same way you can lose this amount of money if your prediction was wrong and you didn’t close losing position in time. If you want to get basic knowledge and understand all the peculiarities of a trading process, first of all you should open free and unlimited demo-account for trainings. In this case you will be able not to lose a cent, learn how to trade and develop your own position that will turn into your winning strategy. You will gain real money if you enter the market with right strategy. Who is a Forex trader? International Forex market is the place of possibilities for every trader. Forex market success is not dependent on the age, education, place of living, base skills or nationality of a trader. The most important things are desire to work hard and self-development. In other words Forex is open for everyone, even if

you have no initial capital you can use demo-account to get the first trading skills. Forex trading conveniences Our company "Forex4you" provides traders with qualified support and broker services. Our offices are located in the biggest cities of the UK, India, Malaysia, Russia, Ukraine and other countries and their number constantly increases. Well, in order to become a trader you don’t have to live in the city with our office – all you need is the Internet connection as we mostly share all data via this global data transferring protocol. One can use popular payment services like Liberty Reserve or Web Money to add or withdraw money from account.

The importance of Forex trader exchange development for our country The Forex trader exchange in the Russian Federation is developing dynamically, and global experts claim that the economy of our country will stabilize considerably, making Forex brokers and traders some of the most prestigious professions. An analysis of the country’s contemporary development shows that countries where business and power have united their efforts to establish financial standards and rules are the most efficient ones from an economic standpoint. Of course, a developed exchange system creates additional workplaces for potential Forex traders, ensures high motivation and solid compensation. Of course, one trader will not solve the economic issues of an entire country, but a common wish to achieve a European way of life and get real benefit from your efforts, knowledge and funds will no doubt allow us to treat this market as a potential place of employment and a source of income that increases the country’s prestige on the global market. Forex earnings: how much can a trader gain? Nearly every user is interested in gaining profit in the Internet. Forex market possibilities are considered to be the most real and highly profitable but there are different facts concerning amounts of money earned. Some people say that one can earn 5-10% of the sum invested; others say that you can double your initial account easily. There are also people who say that you can only bear losses on Forex. We can declare with all the responsibility that one can gain any profit on Forex and the sum of money is only dependent on trader’s skills, dedication and Fortune.

How to make money in the Internet? Forex is excellent solution Popularity of working home and low costs of Internet-providers led to the situation when more people try to make money for living in the Internet. Forex earnings are home made money but at the same time a trader may say that he is working at the world biggest international currency exchange market. There are following advantages of making money on Forex:
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office independence; self-dependency in making decisions; spare time and flexible schedule; Earnings are limited by your desire to work.

Efficiency proven Many years experienced traders say that it is possible to make money fast on Forex. Moreover, often there are situations when nearly all the traders gain profit. By the way, the first earning may come while searching for these situations. It is worth mentioning that definition of statements “actual Forex earnings” and “earning potential” have not much in common. The thing is that there are risks just like in any other market and of coarse you have to study them before you start making money in the Internet. The idea that earnings and risks are linked together and defined by the sum of risk directly proportional to the sum of earnings is not quite right. It is almost impossible to gain profit on such a risky strategies.

Nothing venture Reasonable risk is necessary, that’s what the game is based on. Besides that, it is obvious that no one will tell you the winning strategy or an operation for free. Well, you should also doubt experts’ advice too as if one new how to gain profit for sure wouldn’t it make him the richest man on the planet? Besides that, it is not always possible to use someone else’s strategies as your qualities of character: ability to risk, or to bid up or hold positions may not correspond with someone’s rules of gaining profit. Forex numeric facts So, if anyone can make money in the Internet, so how much can an average trader earn on Forex? There are about 22 working days in a month. If a trader has at least 1, 5% of profit he gets 33% per month from the invested sum. According to this scheme by contribution of $100 he may get the annual income of $400 and that’s 400% profit. If a trader uses this money for further. Where is the Forex headquarters? You can hear this question pretty often though it not quite correct. By asking a question where the Forex headquarters and its offices are located people show their lack of information about this market. We know almost everything about it, so we will be glad to share our knowledge. In order to realize “where the dog is buried” you should clearly understand what the Forex market is. Forex is the biggest financial market in the world. Its annual turnover is more than 1,2 trillions of US dollars. This currency market never rests – prices are changed every second.

The uniqueness of the Forex market is that it is decentralized. That’s the major difference from stock and futures exchanges where trading is carried out in special buildings called exchanges. Forex market has no office because it deals with interbank trading. Forex is considered to be over-the-counter (OTC) or interbank market as all the deals between parties are arranged over the phone or by means of electronic networks. Forex working hours begin in Sydney and go together with the sun over the planet. Financial centers start their work in Tokyo, London and then in New York. At the same time it is possible to trade anytime of the day or night and that provides additional advantages. Usually Forex trading is carried out with the help of negotiators – brokers or broker companies or dealing centers that provide their customers with all necessary tools. Broker companies and dealing centers in their turn have their own headquarters and offices spread all over the work. How to make your first deal Step 1. Choose your currency pair You should define on what currency pair changes of rate you want to gain profit. In order to form the currency pair and direction of a deal you need to decide what currency according to your forecast will grow in price and what will get cheaper.

Step 2. Set the volume of a deal. Now you need to set the volume of your deal. Your potential profit or risks are dependent on it. The more the volume is the more money you can earn or lose after the rate changes. In the beginning we recommend not to trade with big volumes. Step 3. Set the desired volume of profit. Now you have to choose the profit you expect for your deal. As soon as profit for the chosen deal reaches the value you set it will be automatically closed and money transferred to your deposit. Step 4. Set the limits of possible losses. Now you have to choose the limits for your losses. The maximum value is limited by the sum of your deposit. It can be a good idea to limit possible losses with sum smaller than that on your deposit, so in case your forecasts were wrong and you bare losses, you’ll be able to keep on trading. Step 5. Price request and completion of a deal. On the last step you have to check through all your previously set parameters of your future operation (currency pair, volume of a deal, profit and loss limits). If you want to make changes, get back and edit your data. The given price is available for a short period of time. In order to make a deal at the given price you have to click the button with price. If you were not in time for that request the price again and you’ll see the actual cost of your deal.

Step 6. Receiving confirmation. As soon as your request is sent to our server all its parameters checked and the deal is registered. You will receive a confirmation about it. Now you can see your deal in list or on a diagram of a currency pair chosen. By the way, you can create many trading deals for different currency pairs. Step 7. How to close a deal and withdraw the money. The current result is displayed for every deal. It doesn’t affect your actual deposit until you close it. It changes according to the change of the rate for the chosen currency pair. In order to fix the result of a deal you should close it.