BENEFITS OF FOREX TRADING

Benefits of Trading on the Internet:

• Deal directly from live price quotes

• Instantaneous trade execution and confirmation
• Fast and efficient execution of deals
• Lower transaction costs
• Real-time profit and loss analysis
• Full access to market information

Deal directly from live price quotes 

Very few online brokers are able to offer their clients real-time bid/ask quotes, which facilitates instantaneous deal execution - no missed market opportunities. Real-time prices also allow investors to compare an on-line broker’s dealing spread with that of other pricing services, to ensure they are receiving the best possible price on all their Forex transactions.Many on-line Forex brokers require their clients to request a price before dealing.This is disadvantageous for a number of reasons, primarily because it significantly lengthens the execution process from just a few seconds to possibly as long as a minute. In a fast paced market, this could make a significant difference in an investor’s profit potential. Also, some of the more unscrupulous brokers may use the opportunity to look at an investor’s current position. Once they have determined whether the investor is a buyer or a seller, they ‘shade’ the price to increase their own profit on the transaction.

LIVE FOREX SPREADS

Assume The Worst - Money Management:

Many traders only think of the prots they can make from a trade, but never consider the worst eventuality. They are blinded by greed. The fact is that all the

top traders tend to know their downside as soon as they enter a trade, and decide whether the risk of the trade is worth taking. Money management is essential for trading success, and by always assuming the worst, you can decide if the risk reward of the trade is right for you. As a broker once said to me about trading, “Always assume the worst and you wont be disappointed. Things can only get better.”

No system makes money all of the time and no top trader does either, so it is important in these losing periods to have strict money management criteria in place to help you preserve your equity as best you can. Money management is, perhaps, more important than your trading method itself. You may have a successful system, but if it loses all your money quickly and recovers when you have lost your stake, it is of little use. You need to reserve your equity so you can stay in the game longer term. Always decide if you can take the prospect of the worst eventuality in relation to your trading capital.

BEST FOREX TRADING HOURS

Forex Market Hours and The 3 Major Trading Sessions:

The Foreign exchange is a 24 hours market; it opens on Sunday night (5 PM EST) and closes on Friday afternoon (4PM EST) - open 5 and a half days a week.

However, even though the Foreign exchange market is open 24 hours a day, as a trader you need to realize that certain times of day are more suitable for trading than others in order to devise an effective and time-efficient Currency trading strategy.

To maximize the number of trading opportunities during these Forex Trading sessions, it is important to be aware of the times when the market is busiest. This is the time that most currency transaction activity occurs.

Even though there is no official open and close time during the week, it can be broken up into 3 major trading sessions - Tokyo, London and New York sessions.

However, although it seems not to be very important at the beginning, the right time to trade is one of the most crucial points required to be a successful Forex trader.

The best time to trade is when the market is most active and therefore has the biggest volume of trades. A more active market creates a good chance to trade and make some profit while a calm and slow market is literally a waste of time.

Not all the times are suitable for trading Forex, that's because the volatility changes too much during the 24 hours. Below is a table outlining the schedule of Forex Market Hours. The time used is GMT 0

Forex trading sessions :

1. Asian Session Hours( Tokyo ): 00:00 - 9:00 GMT
2. European Session Hours ( London ): 7:00 - 17:00 GMT
3. U.S. Session Hours( New York ): 13:00 - 22:00 GMT

WHAT ARE THE MAIN FUNCTIONS OF THE FOREIGN EXCHANGE MARKET

FOREIGN EXCHANGE MARKET:

The Foreign exchange market is the place where one currency is bought or sold for another currency.