Forex Trading Guidance - Learn, Trade and Win in the Foreign Exchange Market

Over $3 trillion changes hands each day in the global Foreign Exchange Market - more than all the Stocks, Options and Futures markets combined - and all at your fingertips online.

Unlike stock exchanges, the Forex market is open 24 hours a day from Sunday night to Friday 4pm (US Eastern time). So if you have a day job you can trade live after hours. You can start as small as you want but still have virtually limitless growth opportunities.

Trading Foreign Exchange is highly leveraged - a small shift in the exchange rate generates a large change in your active trade. This leverage is typically set to generate a $100 gain on one "lot", for each cent change in your favor, in the exchange rate. Of course you lose at the same rate which is why you need to understand how to stack the odds in your favor. Trading is not gambling, it is a game of probability. If you know how to weigh up the trends you can stack trades in your favor.

There are a myriad of sources of classes from basic to advanced and many of them are free. However you go about learning, make sure you go through relatively formal exercise - it will save a lot of wasted time, effort and money if you aren't structured in your approach. Ninety percent of those who dabble will lose enough to give up relatively soon. But for those of you who make the effort, a decent percentage can be successful traders.

While Forex traders usually rely heavily on reading charts, it is important to understand the key fundamentals affecting the value of currencies. News, business climate and interest rates are some of the main influences of exchange rates. Learn the interaction of these factors - don't just rely on charts - and you will become a much better trader.

Our web site at http://www.bluenilefx.com provides information on what to learn and where to get top quality training for beginners through professional traders, mentoring and live trade alerts.

To Learn Forex Trading, Understand the Market

There's nothing wrong with wanting a little more extra money in order to live more comfortably. If you have some cash asset aside, there's no better way of getting something out of it than by investing it in the forex market. The currency market with at least a trillion dollars getting traded everyday happens to the biggest and most liquid of all financial markets. It offers the best opportunity of getting some earnings for your savings.

Though the opportunity to earn big is excellent, you must know that you can lose big as well. But you can work to turn the odds in your favor. You just have to learn all about the forex market. When you say forex, it means foreign exchange. You will be dealing here with foreign currencies. It's a bit complicated than stocks or bonds but it's not so complicated as to defy mastery. A lot of people have done well for themselves trading forex.

Forex trading entails trading currencies in pairs. When you buy a certain currency you sell another currency at the same time. There are four currency pairs most frequently traded in the forex market. These are the USD/JPY, USD/GBP, USD/CHF, and GBP/USD. These currency pairs are the ones most likely to earn profits.

Trading forex is actually simple. Its follows the buy and sell formula. You buy low and sell high. The problem is that you cannot always tell when the price of the currency pains you bought will rise. You cannot hold on to your purchases indefinitely waiting for the price to rise because if the value of your currency pair goes down significantly you can get wiped out. In the same manner increases in values can earn you healthy profits. The first thing you have to learn when you participate in the forex market is forex analysis which refers to predicting where currency values are going and when.

Another thing that you must learn is forex leverage. It's a system devised by brokers which allows you to control bigger trades than your money would normally allow. There such as a thing as high leverage and low leverage. A 400:1 leverage is considered high as it permits you to control trades 400 times the amount of your money. This provides you big chances of earning big with minimal investment but the chances of getting wiped-out are just as big.

You learn forex trading by taking time studying how the market works. There's no profit in rushing. You can get disappointed and poorer by not doing your homework.

How to Learn to Trade the Forex Market - Where Most People Go Wrong

It's obvious that many people want to find out how to learn to trade the forex market. If this is you, you are going to have to make a decision. Are you going to have to use technical analysis and fundamental analysis? Most good traders have a decent comprehension of at least one of them. If you don't use one at least one of them, you are going to have a very difficult making a living in the forex market.

Sadly, most traders really don't take the time to properly learn at least one form of analysis. We live in a time where traders prefer to trade based on what their gut feeling is telling them. That's just simply not going to get it done.

Most traders don't really have a clue about fundamental analysis. I'm not talking about being as knowledgeable as an economist or analyst. That would be unfair to make that comparison. But many traders don't even know the basics, such as the importance of Non-farm payroll numbers, and how it affects currency price. You've got plenty of traders that don't have any idea how interest rate decisions affect currency prices.

This really wouldn't be that big of a deal if more traders understood technical analysis. When most traders think of technical analysis, they think that all they need to know is when their stochastics tell them to buy or sell. THIS IS NOT TECHNICAL ANALYSIS.

Stochastics or any other lagging indicator cannot give you any insight into technical analysis. All you need is your eyes and a simple bar chart.

Forex Live Rates - Monitoring the Market

There are many ways that one can read the Forex market and one of the ways and information that you can use is Forex live rates - a great way to monitor the market and make some investment decisions. Falling under the technical analysis umbrella, Forex live rates gives you real time readings and information based upon market movements and this is called one of the by products of the Forex influence. If we look more deeply in the area of Forex live rates and the influence factor of the market, we can actually track most of these sort of movements down to the existence of Central Banks in and around the market.

They are at the center of the financial system of any nation state and they are the ones who are in the demand and supply of the country's very own currency. Where they came from was actually in the 17th century, where the first central bank was based in Sweden and slowly but surely, the U.S Federal Reserve reared its head about two hundred years later, starting the growing trend of central banks and currency control in countries. The roles of the central bank is actually to monitor the market and the one in Europe does this quite well, ensuring price stability of the Euro and keeping a check on inflation rates in the continent. The Federal reserve of the U.S.A has four main responsibilities, which stretch from anywhere to influencing the monetary and credit conditions in the local economy, supervising bank activity, maintaining the stability of the financial system that providing a whole host of financial services to many of the business and institutions that form the coalition of American private and public business.

The Forex live rates come from most of their intervention. Interest rates are the most important lever that these banks can have control over and they are viewed as the very value of the currency. Because they have so much capital in reserve, they can often plunge enough commodities into the market to control the price and fluctuations of the rates; sometimes even going against the market to ensure that a movement does not gain so much momentum. This is often decided in boardroom meetings by carious chief financial officers who then pour over market data and decide there and then how best to regulate the live rates that will be of course reflected in the FX market.

One way to monitor the market is to get a good idea on the activities of the central banks that have a direct influence on the currency pairs that you are dealing with and this will give you some good technical analysis information to make some good decisions on the market. Forex live rates are a great way for anyone to monitor the market, combined with sound fundamental analysis and hard work on observing market psychology - to make some decent money. But of course this is just a small part of Forex you need to know about to effectively master it.