FOREX 101: Make Money with Currency Trading

FOREX 101: Make Money with Currency Trading

For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.
FOREX is a somewhat Post Free Classifieds market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.
Another somewhat Post Free Classifieds characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.
How FOREX Works
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.
Marginal Trading
Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.
EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)
When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
Investment Strategies: Technical Analysis and Fundamental Analysis
The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.
A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.
Make Money with Currency Trading on FOREX
FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.
Rich McIver is a contributing writer for The Forex Blog: Currency Trading News ( http://www.forexblog.org ).

Online Forex

Online Forex

Q1: When you consider that the foreign exchange market has become the world's largest financial market, with over $1.5 trillion USD traded daily, where does it go from here?
A1:The FX market is Post Free Classifieds, in the UK there is no central exchange, we trade via the inter bank market. With more and more private individuals taking up margin trading and new forex brokers setting up, I can only see the market grow in the near future.
Q2: Other than great liquidity, what are the principal benefits attached to the forex market?
A2: There is less to consider when trading the forex markets, there are only a number of variables that affect the pricing.
Main advantages include
Forex Market allows 24 hour trading
Greater leverage - with most brokers offering 100 ? 1,
Less starting capital required,
More Liquidity - day trading has to have enough volume to make it worth our while. The currency market is more liquid than all the world stock markets put together. Currencies are always in action,
Free trading systems
Better for shorting - There are artificial controls built into the market to prevent it from going down too fast. The reason is that we live in a biased world that likes to see things go up instead of down. One of these artificial contraptions is the "uptick rule," which comes into play when shorting stocks, making it more difficult to sell a stock short than to buy it. This is unheard of in the currency market. Selling currencies short while day trading is just as easy as buying them.
Ideal for Short Term Traders -
Q3: Limited market access, liquidity issues-after market hours, commission fees, capital requirements and short selling/stop restrictions are just some of the issues investors face when considering other markets. Given that the forex market removes many of these traditional barriers and therefore does not restrict the forex traders' ability to make a trade at the right time, are we likely to see an increase in trading volumes this year?
A3: With all these advantages, traders are finding it hard not to trade currencies, online trading volumes across all products is increasing at a substantial rate, however FX trading, predominantly amongst retail investors is becoming very popular.
Q4: There is stiff competition amongst online forex service providers for retail forex traders with some claiming to offer the same degree of technical analysis enjoyed by the world's largest banks and institutional traders. Is this possible?
A4: Technical Analysis has come a long way, more and more forex provides now have partnerships with firms who provide analysis. However the banks still have an advantage, the markets are still not under perfectly competitive economic model. The banks will always have access to information that is not readily available, ISX FX currently sources its information from a number of banks to fill this gap.
Q5: Do you subscribe to the theory that forex is less volatile than stocks because the market is much deeper?
A5: As a bet on the direction of a national economy, no currency has ever dropped 25 percent in a day, or imploded as rapidly and completely as an Enron or a Parmalat. In the wake of those scandals, many companies are meting out information more cautiously, making it harder to get the real "scoop" on stocks one problem of trading with too-high leverage is that one piece of surprise news can wipe out one's capital. If you treat forex trading like a business, including proper money management, you have a better chance of success."
Q6: U.S. interest rates-decade lows; global trade wars and terrorism fears have dominated the headlines recently. What impact has this had on retail volumes?
A6: The above factors have all led to a decline in the dollar. This coupled with tighter regulation of brokers has given investors more confidence in brokers. Also the stock market crash has driven individuals to look at the profit opportunities offered by forex.
Q7: Stateside the Commodity Futures Trading Commission (CFTC) has brought 58 actions against firms, since its new powers were awarded in 2000. Given that certain brokers continue to abuse the system, with investor money sometimes not being traded in the markets promised. What can investors do protect themselves?
A7: The retail forex market is in essence betting, as with any bookmaker there is always a risk that you will not get your winnings, or the odds will be highly stacked against you. With tighter regulation and increased competition, this risk of default has largely disappeared. The risk of price manipulation still exists and this will never really go away. Investors need to ensure that they have an independent price source and trade with a broker who offers true one click dealing.
Most brokers work on the basis of the law of large numbers, acting like the bucket shops of 50 years ago, they do not hedge any positions and are directly competing against there clients. This will always lead to price manipulation and further actions by authorities will inevitably be taken.
Q8: What is this best way for "currency rookies" to get involved in the market?
A8: Like with any new form of trading you need to know what you are doing, especially as there is margin involved. Take all the time you need to learn this new trading skill well -- practice everything you learn with a demo account before you consider going 'live' with your own money. Investors should read books, attend seminars and paper trade until they are comfortable with there strategy.
About The Author
Rafik Patel C.E.O. ISX FX LIMITED.
www.isxfx.com
rafik@isxfx.com

Traffic Secrets - Secrets of the Guaranteed Traffic Companies Exposed

Traffic Secrets - Secrets of the Guaranteed Traffic Companies Exposed

Our Story
A few years ago, we were struggling to drive traffic to one of our websites. We were immediately overwhelmed with the amount of knowledge and skill it took to successfully drive traffic to our site. We had assumed that if we created a site that was worth seeing, it would be seen. We could not have been more wrong.
We ran into a number of companies who offered to take over this daunting task for us. We decided to try out a number of them to see how our competition stacks up.
They offered many packages of visitors. I remember my first purchase. I bought 5,000 targeted hits from them for $10. My product cost $15 at the time, so I figured at least 1 person out of 10,000 would purchase. The days went by, and my counter went crazy.
The Results
After our contract expired, all my hits had been delivered as expected. I did not have one sale!!
I Should Have Learned My Lesson!
Thinking this had to be a fluke.. I switched to another company, and bought the same package.
Again, I GOT NO SALES!!
I couldn't figure out what was going on. I was confident my ad's were written well. The site was well designed and planned, and my product was in demand...
I Started To Investigate
Frustrated, I started to investigate exactly where these visitors were coming from. I discovered, that I had fallen victim to one of the most common scams on the internet. I couldn't believe my eyes when I first discovered the secrets these company's use to drive traffic to the clients sites.
I checked the script I had installed that was used to check detailed stats on all of our traffic. All 10,000 of our hits came in 2 days, and all 10,000 of them were logged in for less than 3 seconds. Not a single one of them navigated past our main page. My stats script will also tell me where my traffic was referred from, and what keywords they used. All of these hits had the same referral, and didn't use keywords. This last fact isn't important, because any company, good or bad, will redirect their traffic sources through their domain. This is just to keep competitors from stealing their sources (good or bad).
I believe that these company's are going to pay for their greed and dishonesty sometime in the near future.
In the next few pages, we are going to reveal exactly how these greedy companies scam you. This will help you avoid such scams, and put your money to good use, instead of wasting it.
You Will Be Shocked at what these company's do to send you traffic!
This is the most immoral, unethical, and dishonest business practice I have ever come across online. These companies know exactly what they're doing. After all, if their traffic methods work, wouldn't they use it themselves? Why is a company offering millions of hits to their visitors, when they are only getting 10-15 hits a day? They don't use their own methods, because they know their hits are useless.
I fell victim to this scam, as have thousands of others. These companies give you a sales pitch something like this...
Suppose that you sell a product for $25 and that in a worst case scenario only 1% of your visitors purchase your product.
An average site gets less than 100 hits per day (3,000/month). Thus, approximately 30 people will purchase the product every month (1% of 3,000). That means you are taking in only $750 per month (30 x $25)
With our service: Suppose the site owner (you) purchases 100,000 visitors with our service. Using our assumption that only 1% of visitors will purchase the product, a total of 1,000 purchases will be made. That's a value of$25,000! And that is if only 1% of visitors purchase the product! Think about the return on your investment!
If you're like me, you got pretty excited when you read that. After all, there's no conceivable way you can't at least earn your investment back, right? WRONG!!
You give in, order their service, and at first, you get excited, because traffic is pouring in! Soon you realize that your money is earning you nothing. In fact it's costing you your bandwidth, and not delivering any results!
Of course no company, no matter how credible they are, can guarantee you sales. That depends highly on your ad copy, price, and the demand of the item. I can guarantee though, that some of these company's have thousands of clients, and not one of their clients has ever made a sale.
I bought my traffic... Now where are all my orders?
Now remember, worst case scenario is that 1% of your visitors will buy your product. Right? WRONG! If that's the case, then where are your orders? These company's place these ads right in your face when you visit their website. This way, your sold before you even see the price, and you'll buy into their high prices.
Naturally you are going to believe that you'll pay off your "investment" right away, and make a ton of extra money. After all, you spent hours writing that "perfect ad," so you're going to draw in a lot more than 1%.
I'll let you in on a secret. No matter how good your ad is, it doesn't do any good if it's never read.
You sit there and watch traffic come flying in at hyperspeed. Then they fly out. You don't make any sales. What do you do now? If you're like me, you're going to email them, complaining how you didn't make any sales from their services. They're going to tell you some variation of the following...
"I'm sorry you didn't make any sales. If you read our terms, you would see that we can only guarantee that we send the traffic to you. The sales are your responsibility. We cannot guarantee sales, because we are not involved in the writing of the advertisement."
This leaves them clean from delivering any refunds. Trust me, they won't refund your money!
Starting to get suspicious? The truth is your traffic was delivered in a misleading way.
You were sent FAKE VISITORS, or GHOST VISITORS, as they are widely called online.
Have you been tracking your traffic?
Many people don't realize that there are free scripts that you can install on your site to track detailed statistics about your traffic. I'm not talking about counters. Counters are inaccurate, plus they don't tell you anything about your visitors.
If you actually monitor your traffic, you can learn lots of things about your visitors. Including the countries they're from, their IP addresses, the time they came to your site, the time they left your site, the site's they were referred from (google, yahoo, etc..), and the keywords they used to search for your site.
My statistics were shocking!
The traffic I ordered had no IP address, no search engine, none of my visitors navigated past the front page! I paid for these "Guarantee'd Real Visitors," and I have the right to know where they come from. Guess what, I figured it out!
A few of the hits that they had sent, slipped up, and didn't disguise their origin as well as they should have...
I kept seeing the same IP address over and over and over again about 900 times in one day. I thought somebody out there really must love my web site or it's the scam hit company I hired. Well I clicked the link that night which was labeled with an IP address, not the actual web site .com name itself just the numbers of the IP address....I clicked that and wouldn't you know it? I received just a site telling me it doesn't exist.
With my campaign still running the next day along with all the "unknown" places I seen a peculiar url and had to click that to see where over 500 of the same people were coming from and I ended up in Pop Up hell! You know that hell don't you? Where you are swarmed with so many pop ups that you literally have to pull the plug on your computer to get out of it? The sad part about that link is that all the Pop Ups were from PORNO sites!
It's no wonder these companies don't tell where they deliver their traffic from! After all, what ethical business wants to advertise on those disgusting adult sites?
So you want to know exactly how this all works?
After following the slipped up referral link, I was directed to a website where anyone can post their own free adult site. (If your going to try and follow these links yourself, I would suggest switching your browser to text only mode, as I did. Otherwise you'll get flooded with pop-ups, and disgusting porno pictures.)
Now we have determined that my traffic was coming from this site, but I didn't see my site at all...
I switched back to my traffic log, and hit refresh. I WAS STUNNED! At the top of my log, I had 12 hits to my site, all with my IP address!!! By viewing this site just once, I recieved 12 hits!!
I switched over to www.Alexa.com. Alexa is a site ranking service, that can tell you how popular a site is. This adult site that I was listed on was recieving 786,376 hits per day, on average during that week. Multiply that by 12, and that's where all my traffic came from!
So now we know what site is generating the traffic, but how are they disguising the IP address. Why wasn't my site ever shown on screen to me? The answer lies in the HTML source code...
Here are the secret codes!!
One of the tricks that these companies use is a the way they hide where your traffic is coming from. The way they do this is through a redirect code. A redirect code is simply a cade that webmasters use on their websites to take one website and send it another way.
The biggest trick is how they can mysteriously load your site multiple times, without you seeing it. They do this by embedding your site into theirs, and making it tiny. So tiny in fact, that it looks like a period. So instead of using periods at the end of their sentances, they just embed their clients sites sites to look like a period.
Try it for yourself
Open up your HTML editor, or notepad, and create a sample page using this code.


Testing the Embed Script





Now open it in your web browser. What you get is a small box in the left hand corner of your website. For this example, I made the code 5x larger than these companies do. So you can see how easily they disguise these sites. Inside that little square, is actually an entire website!!
So your thinking, they just embed my site into that little square, 10-15 times on the page, and that's where my hits come from. Yes, and No. Essentially that's how it works, but if they put your website into that square, you could easily trace the traffic back to the adult site. So what they do is put their redirect page into that square, and redirect it to your site, so now it looks like all the traffic is coming from them.
So let's put it all together.
You order traffic from a traffic company.
The traffic company creates a free adult site and lists it into a directory of free adult sites. According to our alexa review these sites get 786,376 hits per day. If their redirect page gets 12 hits every time someone loads the adult site, that means they have an average of 9,436,512 hits per day, which they divide among their clients.
For some of the Monster Traffic Companies, 9.5 million visitors a day just isn't enough. They can easily turn that 9.5 million visitors, into as many as they need. Instead of embedding the redirect page. They embed a page full of these periods. That way, when their "period farm" page loads, they can have as many sites load as they want.
They simply change the redirect page to whatever client they want the traffic sent to.
Your counter goes crazy, and all your hits are delivered.
You never make a sale. Now you can understand how you could have thousands of visitors sent your way, and never make a sale. Your site is never really displayed.
The traffic company has delivered exactly what they said they would, and are clear from any refunds.
Our Company, www.CadenzaWeb.com Provides You with REAL traffic, that you can track, and get detailed statistics on. Our Sales have quadrupled since we started using this ourselves. Check Out www.CadenzaWeb.com for more information.
Interested in becoming an ethical traffic reseller? We have a dedicated website just for resellers at wholesale rates as low as $1 CPM (per 1000). www.Sell-Traffic.com
Want to use this article on your site? Please do, just leave our name and link attached.

Manage Auto Finance

If you are looking for information on how you can do with responsibility for managing the finance program your car you do not need to look no further. To tips, warranty, credit outline his or her account, can quest for managing car loans in particular, in the remainder of this work, they in a way that is most responsible to help borrowers on their own like this are included.


Three Tips for consumer credit

* Please pay the monthly installments of your credit and full time. It is very important to pay your credit debt thoroughly you will be responsible. Tomorrow is not only help you avoid shelling out money for the cost of substantial penalties and interest arrears added. You can use the key toward help build good credit you tomorrow profile, the better financial opportunities. So, I hold the tip in mind always.

* Once in a while, I will check the fine print of your automobile finance programs. It is also important to spend some time to consider an important prerequisite for the credit of your program. At the end of the day, on terms and clauses of the loan on your car, help me to refresh your memory this tomorrow. In this method, the measurement of the level usually fine to be imposed on the borrower fails to live up to the terms of financial transactions you sing, please avoid input, an additional fee.

For example, doing a reading of this level, you, especially if you are terminated pre prohibits clause credit agreement that your you also may cause you to penalties huge input, interest costs Set the debt before the due date can be agreed in advance to pay for your financial obligations can never save a lot of money. So, instead of paying in advance for the obligations of your finances in place, in order to avoid penalties and tomorrow, to pay an additional fee, he decided through the payment terms set by the loan of your car.

By reviewing the fine print the program your credit It simply remembers it is possible to perform the restriction on the provision of funds which can be kept to a minimum to pay your credit to address in order I’m going to show that.

* I am looking at a copy of your credit report and your order. You order your credit report six months to one year from the time the copy with a car finance program. But why would you do we need this?

Can be employed to provide an opportunity to determine whether it helps to build credit status you have a good, order the credit file from your credit check of all three habit credit your responsibility. After all, it is necessary to display all of the activities and transactions of your credit your credit report.

If you find that it is fraudulent transactions and payment record wrong to file your credit, you will need to write a letter of dispute credits to companies that supply you with documents that were accidentally immediately implemented. In this way, the employees of the company, you can examine your claim. Made a mistake when you update your credit report, then, they will tomorrow we need to find to make the necessary adjustments to your files they send a document accurate you certainly.

Auto Financing

Now, we usually find a lot of individuals and families who do not have any source of work and income, that the economy is down. May result in specific conditions, because it may spoil the reputation of the building immediately credit for several years, it is concerned this should be. Payment becomes delinquent, there is nothing you can do about it. You significantly reduced, which can take the work to pay may not be able to help you get the car you need may be most desperately. Fortunately, the trend of lending to this vehicle, it is you will be able to offer in news, current probably such a good following.

You can you get a car loan still required

It is no longer necessary that there is a need to have a perfect credit rating and huge income in order to obtain a car loan you need. Currently, this may become a good opportunity for them to gain more clients, lenders are desperate to provide what you need. This means that you can get a lot of lenders are willing to provide information of a bad credit card financing just perhaps. I am a little research is all you need. Learn exactly what you need to do in order to find a lender, to improve your chances of acceptance.

Trust the experts

Currently, most lenders will consider as an expert in any type of financing. Lenders are very friendly but they may be able to help you find the right kind of loan you need. Even if you have been rejected by the dealer, you can arrange to know the tricks of the trade, so that your loan is approved lenders frequently.

Dealers can be difficult

Do not let the dealer pull your credit report, this could be a very expensive mistake. Instead, you trust, he will find a reputable lender that you can trust to handle your problems on a regular basis. Browsing for cars to look at your credit report automatically, do not have the rights to each dealer. Even worse, contact for more information about your credit score seems to potential lenders. Because you know your score, have its own copy of the report, a better plan is as follows.

You might think you want to cry about your credit score, I am okay to discuss credit issues with people that can be it you can trust, who will give appropriate advice to you . If real lenders loan loan your car to exist, it is not a business you do not see your credit report.

Mike McTigue is a journalist and former car dealer and auto loan special, and unique insight into automobile finance industry.