Instantaneous trade execution and confirmation

Timing is everything in the fast-paced Forex market. On-line trades are executed and confirmed within seconds, which ensures that traders do not miss market opportunities. Even the incremental extra time it takes to complete a transaction over the phone can mean a big difference in profit potential.

Lower transaction costs

Executing trades electronically reduces manual effort, thereby lowering the costs of doing business. On-line brokers are then able to pass along the savings to their client base.

Real-time profit and loss analysis

The fast-paced nature of the Forex market compels traders to execute multiple trades each day. It is vital for each client to have real-time information about their current position in order to make well-informed trading decisions.

Full access to market information

Access to timely and relevant information is critical. Professional traders pay thousands of dollars each month for access to major information providers. However, the very nature of the Internet affords users free access to reliable market information from a variety of sources, including real-time price quotes, international news, government-issued economic indicators and reports, as well as subjective information such as expert commentary and analysis, trader chat forums etc.

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.

WHAT IS FOREX BROKER

Forex broker:

A foreign exchange broker is a financial intermediary that facilitates currency trading in the foreign exchange (forex) market for retail traders and institutional clients. They act as a bridge between individual traders and the larger forex market, giving them access to a variety of currency pairs and enabling them to execute trades.

The major functions of a forex broker include:

Providing Trading Platforms: Forex brokers provide online trading platforms that allow traders to access the Forex market, view real-time price quotes, analyze charts, and execute buy or sell orders.

Currency Pairs Offered: Forex brokers offer a wide range of currency pairs for trading, including major pairs (for example, EUR/USD, GBP/USD), minor pairs and exotic pairs. These pairs represent the exchange rates between two different currencies.

Every successful Forex trader knows that choosing a Forex broker is not only important, but a crucial part of your success. As forex trading became more popular, many Forex Brokers were revealed for the methods they use to "protect" their profits. By reading and sharing your experiences, you'll help the community to identify which are the good/bad brokers.

Consumer sentiment ''forex''

The pattern in consumer attitudes and spending is often the foremost influence on various markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.

Consumer spending accounts for more than two-thirds of the economy, so the markets are always dying to know what consumers are up to and how they might behave in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. With this in mind, it's easy to see how this index of consumer attitudes gives insight to the direction of the economy. Just note that changes in consumer confidence and retail sales don't move in tandem month by month.

First step of ''FOREX TRADING''

Open a free demo account with interactive investor or if you are confident, open a live account with minimum amount.

1.Currency pair

The nature of forex trading is to exchange the value of one currency for another. In other words, you will always buy one currency while selling another at the same time. Because of this, you will always trade a pair of currencies.

Most new traders start out by trading the most commonly offered pairs of major currencies, but you can trade any currency pair you want, as long as you have enough money in your account. For this walkthrough, we'll look at the EUR/USD,JPY/USD etc.

2. Read the quote

Dealers will often list a price with two different numbers. For example, when you look up the EUR/USD , you'll see the forex quote is listed as:

Base currency

Quote or terms currency

Price

Sell price

Buy price                                                           

Sell

Buy

EUR/USD

3. Analyse the market

 Analysis should be the foundation for your trading endeavors. Without these, you're operating largely on emotion.When you first start researching, you'll find a wide wealth of forex resources  which may seem overwhelming at first. But as you research a particular currency, you'll find valuable resources that stand out from the rest.

You should regularly look at current and historical charts, monitor the news for economic announcements, consult indicators and perform other analysis activities. 

4. Pick your position

Forex trading is a little different to other  traded stocks, bonds or other financial products. Because you are buying one currency while selling another at the same time, you can speculate on up AND down movement in the market.

With a buy position, you believe that the value of the base currency will rise compared to the quote currency. If you're buying the EUR/USD, you believe the price of the euro will strengthen against the dollar. In other words, you believe the euro is bullish (and that the US dollar is bearish).

Benefits of Online Investing''FOREX''

Online trading has caused a major paradigm shift in investing. At the turn of the millennium, there are over 6 million online investment accounts, up from 1.5 million . As a result, start-up firms now compete directly with financial institutions to serve investors in the new Economy, and the clear winner is the customer. The competition between the brick and mortar institutions and the Internet-based companies has dramatically lowered the costs of investing, and empowered the individual investor to take control of their own investment strategy.

online trading will revolutionize the currency markets by making it accessible to the small and medium sized investor. For the first time, these investors have the ability to execute transactions of between $100,000 and $10,000,000 at the same prices the Interbank market offers for deals well over $10,000,000. This benefits both those who wish to speculate on the direction of the currency markets for profit, as well as the money manager or corporate treasurer looking to hedge against unwanted exposure to future price fluctuations in the currency markets.

Forex Trading ''The Secret Of Market Success''

“For surely we are not … no simply contending in order that my view or that yours may prevail, but I presume that we ought both of us to be fighting for the truth.”

By..Socrates

The aim of any investor is to make money by correctly identifying and acting upon the truth. The truth, however, is elusive, as there is no scientific method to get us to the truth. The truth is difficult to see as it can be totally different to what your emotions and natural instincts are telling you. Furthermore, the fact that the majority of people agree or disagree with you has no relevance in the pursuit of the truth.

To succeed in trading you need to understand that there are no certainties, only probabilities, and to seek the truth you need to have a deep understanding of yourself and the market you operate in, and how you relate to it. You need to stand-alone and, from your perception of what is going on around you, decide what the truth is.
Trading is a reflection of life. This is why there are so many contradictory ideas and shades of grey instead of black and white answers. Just like life, trading is unpredictable; people who believe that there is a scientific law to investing that can predict commodity price movements are missing the point.

 It is effectively the ability to see an event before it is definitely known, that is the key. It is really the intuitive ability to see and then to act. Relying on both right and left hemispheres of the brain to process and analyse information, this is the key to identifying and acting upon the truth. Once you have brought your thoughts to bear on the facts of a situation, then you need to let go. This is the incubation stage where you are letting your thoughts go where they may, without the influence of anyone else. When you learn to think and act in this manner, you will be surprised how you see many situations the crowd will never see.