 |
| |
| About Me |
Name: jaimatadi
Home:
About Me:
See my complete profile
|
| Previous Post |
|
| Archives |
|
|
| Shoutbox |
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Duis ligula lorem, consequat eget, tristique nec, auctor quis, purus. Vivamus ut sem. Fusce aliquam nunc vitae purus. |
| Links |
|
|
|
|
|
 |
|
 |
| |
| |
Friday, October 26, 2007 |
|
 |
|
 |
| |
| LiteForex Forex Broker |
LiteForex is one of the leading MetaTrader 4 Forex brokers that accept e-currencies (such as e-gold and WebMoney) as the payment method. Accounts can be started with the minimum of $1, which combined with flexibility of MetaTrader platform makes LiteForex an ultimate choice for the traders that want to test their automated trading strategies on real account, but without risk of losing too much money. CFD trading is also available, so Forex traders can diversify some of their portfolio into stocks traded on NYSE.
Start trading with $1.
Commission free trading.
Leverage from 1:100 to 1:200.
Receive monthly interest on your balance.
Competitive fixed bid/ask spreads.
Really fast order execution.
Many different account types available.
33 currency pairs, 8 currency indexes, 32 CFDs and 2 metals to trade.
One of the best trading platforms - MetaTrader 4.
Reliable dedicated trading servers.
24 hours a day, 5 days a week trading support.
Partnership opportunities for serious clients.
It is easy to start trading with LiteForex - all you have to do is just register at their website, download their MetaTrader 4 client software, deposit money via one of the available methods (takes no more than an hour) and start trading! |
posted by jaimatadi @ 5:29 AM  |
|
|
|
|
 |
|
 |
| |
Tuesday, October 23, 2007 |
|
|
|
|
| |
| Forex Charts |
Forex charts assist the investor by providing a visual representation of exchange rate fluctuations. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates.
In order to help the investor attempt to predict when or in what direction a rate may change, advisors provide forex charts. Quality forex websites provide subscribers with a daily newsletter that includes a forex chart, forex signals and a forex forecast.
There are a variety of forex charts available for the investor to use and study. Some are very simple using only a couple of forex signals or indicators and are ideal for beginners. Others include 30 or 40 forex signals or indicators and live on-line streaming data so that the investor may analyze trades quickly and accurately.
In order to make an accurate forex forecast, it would seem that the more indicators, the better, but some analysts prefer a simpler system.
The idea behind studying forex charts is that history repeats itself. Instead of trying to “see the future”, a forex forecast evaluates the past. That is to say that the analyst who is responsible for attempting to predict future currency moves analyzes what happened to an exchange rate yesterday, last week, last month or last year and uses this knowledge to the best degree he knows how.
Some people trade short term, some intermediate term, and some long term. All three types of traders may benefit from the use of forex charts, just adapted to their own trading time frame.
Investors also create their own forex charts to evaluate their own performance. Creating a forex strategy for oneself is the goal of many investors. Instead of looking to a professional to analyze forex signals, these investors choose to create their own forex forecast.
Others, however, create their own strategy but also follow the opinions of professional currency traders at the same time. It all depends on your personal preferences.
There are other forex charts that deal with known correlations between two currency pairs, that is, how they move in relation to each other. Some exchange rates are known to affect other exchange rates, either by moving in the same or the opposite direction depending on the correlation.
Charts are available that explain these correlations in detail and show which pairs have strong correlations or strong negative correlations, so that an investor can use the movement of the exchange rate of one currency as a signal to trade another currency. These correlations are also the basis for some forex forecasts.
It can be difficult and overwhelming to enter the world of forex trading alone. Experts recommend education, practice with a demo account and advice from a reputable broker who is backed by a quality institution. Learning to read forex charts and evaluate forex signals is a skill that comes with time, skills that are essential when an accurate forex forecast is the the goal. |
| posted by jaimatadi @ 1:44 AM |
|
|
|
|
|
|
|
| |
Saturday, October 20, 2007 |
|
|
|
|
| |
| Forex Development History |
Foreign exchange development history - exchange market evolution foreign exchange development history - exchange market evolution gold remittance system and Bretton woods agreement
In 1967, a Chicago bank rejected to provide pound loan to a professor named Milton Friedman, because his purposed was to use this fund to sell short the British pound. Mr. Friedman realized excessively that the price ratio from the British pound to US dollar at that time was high, he wanted first to sell the British pound, after the British pound fell he buys back the British pound to repay the bank again. This family bank rejects the loan offer based on the "Bretton woods Agreement" which was established 20 years ago. This agreement has fixed the various countries' currency to US dollar exchange rate, and the price ratio between the U.S dollar and the gold is also fixed to 35 US dollars to each ounce of gold.
The Bretton Woods Agreement was signed in 1944, the purposed was to prevent the currency to escape between countries, and also to limit the international speculation, thus to stabilize the international currency. Before this agreement was signed, the gold remittance standard system which was widely used since 1876 - was leading the international economy system until the First World War. In the gold remittance system, the currency was at the stable level under the support of the gold price. The gold remittance system has abolished the old time king and the ruler which depreciates the currency value unlawfully, which will lead to inflation.
But, the gold remittance standard system is certainly imperfect. Along with a country economic potentiality enhancement, it can import massive products from overseas, until it exhausts the gold reserve of certain country. It resulted the supply of the currency reduces, the interest rate raises, the economic activity will start to decline until it reaches the recession limit. Finally, the commodity price falls to the valley, gradually attracts other countries to stream in, massively rushes to purchase this country commodity. This will pour gold into this country, this will increase this country currency supplies quantity, and it will reduce the interest rate, and will create the wealth. This is so called the "the prosperity - decline” pattern and is the circulation of the gold remittance standard system, until the trade circulation and the gold freedom was broken by the First World War.
After several catastrophes wars, the Bretton Woods agreement has appeared. The countries which signed the treaty agreed to maintain the domestic currency to US dollar exchange rate, as well as the necessity of the corresponding ratio of the gold, and only allow a small fluctuation. Countries are prohibited to depreciate the currency value for the gain trade benefit, only allows the country to depreciate not more then 10%. Enters the 50's, the continuous growth of the international trade causes the fund large-scale shift which produces because of the postwar reconstruction, this causes Bretton Woods system which establishes the foreign exchange rate to lose stability.
This agreement was finally abolished in 1971, US dollar no longer could convert to gold. Until 1973, each major industrialized nation currency exchange rate fluctuation has been more freely, mainly regulates by the foreign exchange market through the currency supplies and demand quantity. The business volume, the transaction speed as well as the price variability, have achieved a comprehensive growth in the 1970's, come along with the emerge of price ratio fluctuation, the brand-new financial tool, then only the market liberalization and the trade liberalization could be achieved.
In the 1980s, along with the published of the computer and correlation technology, the international capital has flow rapidly, and strongly related the Asia, Europe and America market. Foreign exchange business volume from 80's rises daily from 70 billion US dollars to 150 billion US dollars after 20 years.
European market inflation
One of the reasons why the foreign exchange developed rapidly was the rapid development of the Euro dollar market. In a Euro dollar market, US dollar is stored beyond the border of America banks. Similarly, the European market is refers to property depositing outside the currency rightful owner country market. A Euro dollar market was formed at first in the 50's, at that time Russia deposited its petroleum income beyond the US border, avoid being freeze by the US government. This has formed a large offshore US dollar national treasury which is beyond the control of the US government. The American government has formulated a law to prohibited US dollar from lending money for the foreigner. Because the degree of freedom of the Euro dollar market is bigger and the rate of return is bigger, therefore it has large attraction. Starting from the 80's, the American company starts to borrow loan from the offshore market, they discovered that the European market is a wealth center which consists of large amount of floating capital which could provide short-term loan.
London once was (until now still is) one of the main offshore market. In the 80's, the Bank of England in order to maintain its global finance industry center dominant position, using US dollar as England pound substitution to make loan, thus to become a Euro dollar market center. London's convenient geographical position (is situated between Asian and Americas market) also helps to maintain the European market as the dominant position. |
| posted by jaimatadi @ 5:14 AM |
|
|
|
|
|
|
|
| |
Friday, October 19, 2007 |
|
|
|
|
| |
| What is the Difference Between Forex and Stock? |
The Forex market has a lot of advantages compare to stock market:
A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.
Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.
Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.
If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.
In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly. |
| posted by jaimatadi @ 3:38 AM |
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
| Forex Margin Trading |
Comparing to other investment, the Foreign Exchange margin trading is one of the fairest and the most attractive investment method.
The Foreign Exchange margin trading meaning the traders borrow loan from bank, finance organization or broker house to carry on the foreign currency trading. Generally, the financing proportion is above 20 times, which means the Forex traders’ fund may enlarge to 20 times to carry on the trading. The bigger the financing proportion, means the Forex traders just need to pay very less fund, for example, the financing proportion provided by the financial organization is 400 times, namely the lowest margin request is 0.25%, the traders just need to pay 25 US dollars, then he or she could trade as high as 10,000 US dollars, fully using the contra method to make big profit by only paying a very less price.
Besides the fund enlargement, another attraction of the Forex margin trading method is that it can be traded in both ways, you can make profit by buying the currency when the currency rise (makes many), or to sell a currency when the currency is dropping to make profit (short-selling), thus does not need to be restricted by the restriction so-called bear market is unable to make money.
Making Profit in the Foreign Exchange Market
The currency fluctuate continuously due to reasons such as political, economical reasons, sometimes the changes could be extremely great, therefore, the Forex traders also can have the opportunity in among which makes a profit. For example, the Japanese Yen daily fluctuation is probably between 0.7% to 1.5%, Forex traders may make profit through buying and selling. All trading could be completed in a short time, the trading strategy could be carry up according to the market conditions, it is extremely flexible, even if the direction looks wrong, the lost could be stop immediately, the lost could reduce but profit potential is still great. Therefore, the Foreign Exchange margin trading is the most flexible and the most reliable investment method.
Foreign Exchange Margin Trading elementary knowledge. |
| posted by jaimatadi @ 3:37 AM |
|
|
|
|
|
|
|
| |
Tuesday, October 16, 2007 |
|
|
|
|
| |
| Why FOREX? |
Forex. The mainstream business, the biggest market on earth today. It has a daily turnover of more than 2.5 trillion US$ (more than 100 times greater than NASDAQ), and it's still growing.
Affiliating in the FOREX industry is a highly attractive source of income. Your traffic is already there, waiting to be used in the Forex arena.
Millions of traders from all over the world are trading Forex online. The participants are banks, business organizations - large and small, and obviously many private individuals. Everyone on earth today can immediately start trading Forex online, from any computer, anytime, using their credit cards.
The FOREIGN EXCHANGE (FOREX, FX) market is not a "market" in the traditional sense. In fact, it is the nearest to "perfect market" from economics perspective. There is no centralized location for trading as there is in futures or stocks. Trading occurs around the clock over the telephone and on computer terminals at thousands of locations worldwide. Foreign Exchange is also the world's largest and deepest market.
Daily market turnover has skyrocketed from approximately 5 billion USD in 1977, to a staggering 2.5 trillion (and more) US dollars today. This is more than 100 times the daily turnover of the NASDAQ.
Most foreign exchange activity consists of the spot business between the US dollar and the six major currencies (Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar). The FOREX market is so large, and is hosting so many participants, that no single player, governments included, can directly control or make any significant influence over the direction of the market. That makes the FOREX market the most exciting market in the world. Central banks, commercial banks, international corporations, money managers, speculators, and private individuals - all involve in FOREX trading.
Foreign exchange (FOREX) is the trading of contracts of currency pair exchange rate. It is a NON-DELIVERY trade, which means that there is no physical transaction of currencies, but it is rather an agreement, or "contract" (FOREX DEAL), to trade specific volume of a pair of currencies at an agreed exchange rate. The magnitude of such FOREX trade is that, in order to make the deal, only a proportional amount is needed (the COLLATERAL, or the MARGIN). Thus, if the currency pair exchange rate has changed by some percentage, the value of the MARGIN invested would accordingly change, however - in a much higher proportion. In fact, the actual change onto the Forex trader's investment (the MARGIN they deposited), will be the nominal change occurred to the exchange rate, multiplied by the MARGIN ratio (the leverage).
For example: a FOREX DAY-TRADING deal has been made, for buying EUR100,000 against USD, on an exchange rate of 1.3500. The MARGIN required for this deal (offered by the FOREX Trading Platform) is of a ratio of around 1:100. Accordingly, the trader invests only USD100. After a few hours, the exchange rate went up to 1.3620. This is an increase of 0.89%, quite normal for the global Forex market. However, thanks to the MARGIN ratio, the trader's investment went up by 89% (since a leverage of 1:100 has been used)!! Remember: that happened in less than a day!
Same could happen in the opposite direction, however - the traders cannot lose more than their original MARGIN deposited. When the rate goes against the trader's favor, the deal closes automatically ("Stop-Loss") when the margin does not cover anymore the contract's decrease in value.
Note that the Forex trader may choose any direction for his deal (for example: either to BUY-EUR or to SELL-EUR in a EUR-USD deal), and still do that with his account base currency (the currency with which he operates his trading account). Hence, he may still profit (in case he was right...) even when the EUR goes down.
The Forex market offers today FOREX trading not only in MAJORS (the leading world currencies) but also in many other currency pairs (including exotic, gold and silver, etc.).
As for Forex affiliates, Easy-Forex™ Trading Platform, for example, paid more than 1 million US dollars commissions during 2006. And it is rapidly growing ...
Forex-Affiliate.com, in business partnership with Easy-Forex™, operates the world's number one Forex affiliation system, the fastest growing on the net. It offers the great advantages of a world leader Forex platform, and more.
Registration as an Affiliate with us is simple, quick, and without any obligation. Our service team, both in technical and marketing issues, is ready to assist you in person and to provide you with great advertising materials, aimed to support your efforts in the most efficient way.
|
| posted by jaimatadi @ 5:16 AM |
|
|
|
|
|
|
|
| |
Friday, October 12, 2007 |
|
|
|
|
| |
| Trading Basics: Concepts and Psychology |
1. Commissions
How much commission do you pay per trade? You should know this answer without hesitation. Is your commission competitive and reasonable? That might have a number of different answers.
How much you pay for commissions is critical. Before we start it's important to acknowledge that reliable and quality fills are equally as important, that customer service when needed and a well-designed trading interface are also critical to an active trader. So don't let what follows mean we think you should just pursue the very lowest commission charge. That's not the case, but you should be sure you are trading with a firm that is very competitive in all areas - commissions, service, fills and trading platform.
Let's take an example. What if you had a trading system that in 100 trades would "win" 80 times. That's a fairly spectacular 80% win ratio. If you were told you had a guarantee to win 80% of the time, chances are you wouldn't hesitate much more than the time it takes to hit "Submit" to place your first order. But do you realize that it can be fairly easy to actually lose money, even with a system that wins 80% of the time?
Assume that you decided to trade 50 shares per trade and each stock averaged about $20. Your target is 5%. And sure enough, your first trade "wins." So your $1,000 investment makes an easy 5% and you made $50. That was fast. Unfortunately you trade with a broker who charges $24.95 per trade - suddenly your winning trade actually barely squeaks out $0.10 in profit. You can imagine what happens with a losing trade.
Now let's say you traded that same set-up but only paid $5 per trade (very doable) or $10 per trade. Granted you still would take a bit out of your profits but at least in this situation your big $0.10 winner turns into a $40 or $30 winner.
You're saying, "Well, I trade a lot more than 50 shares" and if that is the case, you are definitely helping yourself because the commission is a "fixed" amount in most cases. And therefore the more shares you trade as capital into the market, the more your "fixed costs" will actually go down. The trader who trades 200 shares instead could make over $150, even with that high commission. But the trader paying $10 a round turn adds another $40 - a big increase on any one trade.
Start adding it up over the number of trades you might make with an active strategy. If you traded five times per day - both in and out - and instead of paying $25 for a trade you paid $10, you could actually save or add to your wallet $39,000 in one year. Let's not even start to mention how much that savings can turn into in compounded gains. Even if you traded far less frequently, or didn't save quite as much, it makes a major difference.
The key here is to be very sure you are paying a competitive commission. Be very sure you are trading enough shares per trade. Don't try to trade every set-up and have to spread out your equity so far that your commissions keep eating away huge chunks of your gains. You have to be able to accommodate for the losing trades, slippage and even errors you might make. This is why keeping your costs low when actively trading is important. And remember, these costs are fixed - if you trade more shares, it won't cost you any more and your cost of doing business only goes down for each share added.
2. The Power of Compounding
Not everyone can start with a sizeable account and not everyone is comfortable (even those with large accounts) to have substantial capital at risk. The power of compounding is very important for an active investor to understand. An active investor has the advantage of each day being able to compound their overall profits into the next series of trades and grow their overall capital base quickly if the trading is successful. It is much like a manufacturer who measures "turns" in inventory. The more turns the better. They are using their capital more favorably than slowly turning inventory.
The active trader can do some great things using compounding and even start the cycle at a level they are most comfortable with and in the future use profits to continue to increase position sizing.
Let's take a look at an example. Let's say that you traded $10,000 per trade, made 5% on every trade, and did this ten times in a row without a loss. Sounds pretty great (ok, not that achievable but come with us on this journey!) -- but this time you always take your profits out and keep trading $10,000 each time. Well, we know you'll make $500 per trade and ten winners = $5,000 in profits. Very nice.
Now, let's say you decide to compound these gains and each time you trade you trade all the capital you have - you reinvest your gains. So ten trades that win 5% and you do not take your profits out. This time you actually profited by $6,288 - an improvement of 25%. You didn't risk any more - you started with $10,000 in risk capital in both cases but instead you decided to continue to reinvest your gains to build up your account - and without any more initial risk you added 25% to the bottom line.
This is a convenient example - there will be losing trades, there will be trades that don't make full targets and so on. But you can use compounding to start with a comfortable level of risk and let market profits guide you to a larger account base and faster growth in equity. Not to mention that when you have a loss you actually scale back your risk since you only trade the equity available, making it a great way to ride out more difficult markets as well.
3. "I Always Miss the Winners"
That is the fear of the trader who looks at a list of potential trades and feels that they need to trade every single set-up for fear of missing the "big" one. First, in our type of active trading we're not looking for home run shots. We're looking for steady gains - we know some market months will be easier than others but we're not looking to make or break it off any individual trade.
Next, we learned above how important it is to trade enough equity per trade. Otherwise you'll let commissions eat away at your profit potential.
We also know that it is very difficult, no matter how good your trading platform, to track and trade a long list of stocks. You are more likely to make costly errors on the entries and exits.
And it simply is not necessary. Many of our subscribers only focus on a smaller subset of stocks. The magic number is up to your comfort level but literally any mix will work fine. 3, 5, 6, 8, etc... Do not feel you will miss something by not trading all the set-ups. You are much better off trading fewer set-ups each day and doing them correctly, and doing them with enough equity to make the potential profits worthwhile, and it will make your life in managing much easier.
You might want to take into consideration which sector/industry a stock trades in. If you trade a smaller subset of stocks from the list, you might want to avoid trading stocks that all trade in the same sector. We know on certain days all storage stocks or all chip stocks will move together as a sector. By mixing your sectors you have less chance of getting caught on those days when one whole sector moves against our trades.
4. A Trader's Fantasy - and Nightmare
We consider nice, smooth trending (up or down) markets a trader's fantasy. They are simply the most cooperative markets to trade and thankfully several times a year or more the markets simply trend for many days in a row and sometimes for weeks at a time. These are the moments we "live" for.
Now choppy markets on the other hand can be a trader's nightmare. Not always, but there is no denying that a choppy market is more difficult to trade. Actually, a choppy market that is narrow in range when compared to the prior history is the most difficult. A choppy market with sizeable trading range can work out quite nicely.
What we do know is that the fantasy always comes after the nightmare. The longer the nightmare, the better the fantasy. You can look at any daily chart of the markets - take a QQQ or SPY, for example, to see a big picture view, or any of our individual stocks - and see that there are periods where they are on a run - up or down. That's where your profits typically add up fast. The other times you'll see that the markets have no pattern. No trend, little range and they seem to fluctuate direction nearly by the day. Those markets have pockets of opportunity, but if you can make it through there without a scratch you are doing extremely well. Because move forward on any chart and see the run begin thereafter. |
| posted by jaimatadi @ 3:01 AM |
|
|
|
|
|
|
|
| |
Tuesday, October 9, 2007 |
|
|
|
|
| |
| Forex fraud and scams |
There are a lot of fraud and scams from the direction of intermediaries such as brokers and dealers in Forex business. The United States Commodity Futures Trading Commission (CFTC) is the federal agency that regulates the trading of Forex currency, commodity futures and options contracts in the United States and takes action against firms suspected of illegally or fraudulently selling Forex currency, commodity futures and options. Off-exchange trading of Forex, foreign currency futures and options contracts with retail customers by a counterparty that is not a regulated financial entity as set forth in the CFMA is unlawful and may be a fraud or scam.
Using the "kitchen" method, management of the dealing center is based on the assumption, that the majority of players (clients) will lose the money sooner or later. It is promoted by a lot of the reasons. The cores are the lowest vocational training of the client, excessive aggression and practically absolute ignorance of foreign language. Such clients are very often completely out of the basic information streams.
Brokerage is the overlapping of absolutely all client transactions (positions) during their performance. "Brokerage" can be profitable only at a great deal of clients and their activity at transactions' performance. Broker can earn money "moving" of the market against the client. It is possible to shift the market in the various ways. Since any client transaction passes through dealer of dealing center, the dealer forms the quotation, giving to the client.
Basis of this broker strategy is the following thesis: dealing center doesn't use brokerage as the basic technology, a basis of profit are the client's losses. The client transactions completed in current of one day, as a rule, do not bring to dealing center neither greater profits, nor heavy losses. In a total sum these transactions make small profit. The basic money appears when positions open in current of several bank days and lead the client to greater, significant losses.
At "pseudo-brokerage" any position has moments during which client is incured losses, accordingly, dealing center has some profit on this position (provided that this position is not blocked at the foreign broker).
Some dealers guarantee that you will not lose more than you invest, which includes both the initial deposit and any subsequent deposits to keep the position open. There are two significant differences between buying off-exchange Forex currency options and buying options on futures contracts. First, when you exercise an option on an exchange-traded futures contract, you receive the underlying exchange-traded futures contract. When you exercise an off-exchange Forex currency option, you will probably receive either a cash payment or a position in the underlying currency. Second, NFA’s options brochure only discusses American-style options, which can be exercised at any time before they expire. Many Forex options are European-style options, which can be exercised only on or near the expiration date. You should understand which type of option you are purchasing.
Retail off-exchange Forex currency trades are not guaranteed by a clearing organization and are the most sustainable to fraud and scams. Furthermore, funds that you have deposited to trade Forex currency contracts are not insured and do not receive a priority in bankruptcy. Even customer funds deposited by a dealer in an FDIC-insured bank account are not protected if the dealer goes bankrupt. There is no central marketplace unlike regulated futures exchanges in the retail off-exchange. Forex currency market there is no central marketplace with many buyers and sellers. The Forex currency dealer determines the execution price, so you are relying on the dealer’s integrity for a fair price.
You should ask the dealer how it is regulated and check with the dealer’s regulator about the dealer’s registration status. You should also ask the dealer if its regulator has adopted rules to regulate its retail Forex activities.
Unlike Forex dealers, firms and individuals that solicit retail accounts for Forex currency dealers and manage those accounts do not have to be regulated or affiliated with a regulated firm. Therefore, you should find out if the person’s Forex activities are regulated and by whom.
Warning Signs of Fraud
Watch for the warning signs listed below, and take the following precautions before placing your funds with any currency trading company.
1. Stay Away From Opportunities That Sound Too Good to Be True
2. Avoid Any Company that Predicts or Guarantees Large Profits
3. Stay Away From Companies That Promise Little or No Financial Risk
4. Don't Trade on Margin Unless You Understand What It Means
5. Question Firms That Claim To Trade in the "Interbank Market"
6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise
7. Currency Scams Often Target Members of Ethnic Minorities
8. Be Sure You Get the Company's Performance Track Record
9. Don't Deal With Anyone Who Won't Give You Their Background
10. Warning Signs Of Commodity "Come-Ons"
Most Forex fraud and commodity fraud is committed by either firms located in South Florida (Boca Raton was voted by CNBC the telemarketing fraud capital of the world in 2000), Southern California or outside the United States. Never make a check or bank wire payable to ANYONE other that a FCM registered with the NFA. In the majority of cases Forex fraud is perpetrated by firms located in the United States and the principals and brokers of the firm and were at one time registered with the National Futures Association (800) 621-3570 and have had their licenses revoked.
|
| posted by jaimatadi @ 3:25 AM |
|
|
|
|
|
|
|
| |
Monday, October 8, 2007 |
|
|
|
|
| |
| Investing in Forex |
Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It's very necessary to mention here that a person who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful forex traders and other traders.
A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit. Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor's time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It's easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far. |
| posted by jaimatadi @ 3:46 AM |
|
|
|
|
|
|
|
|
|
|
 |
|