Tuesday, November 27, 2007

Forex System Trading Formula

If You Would Like The Secret Forex System Trading Formula That Only A Handful Of Trader's Know About, Then Here's Your Shortcut Guide To Forex Trading Success!

Fact: The Forex is by far the largest & most liquid market in the world. With over 1.4 trillion dollars traded & 100:1 leverage…You need to read this article!

If you already know only a little about Forex System Trading click the link above... If you don't know anything about Forex trading, I recommend you first read the article below:Forex, short for foreign exchange, is trading where the commodity is not stocks or shares, but currency.
Not only does this market trade 24 hours, but the daily volume exceeds $1.4 trillion, making it the largest and most liquid market in the world. Unlike other financial markets, the forex market has no physical location or central exchange. It is an over-the-counter market where buyers and sellers including banks, corporations, and private investors conduct business.
Foreign exchange trading takes place in financial trading centers all over the world, including New York, London, and Tokyo creating one cohesive, international market. The huge number and diversity of players involved make it difficult for even governments to control the direction of the market. The unmatched liquidity and around-the-clock global activity make forex the ideal market for active traders.
In the forex market currencies are always priced in pairs; therefore all trades result in the simultaneous buying of one currency and the selling of another. The trick in the black art that is Forex System Trading is accurately forecasting the direction of the fluctuation between two currencies. So how do you make money withForex System Trading?For example, suppose you had $100 and bought Euros when the exchange rate was two Euros to the dollar. You would then have 200 Euros. If the value of Euros against the US dollar increased then you would sell (exchange) your Euros for dollars and have more dollars than you started with. This scenario, simple as it is, is the nub of Forex trading – buying and selling currency when exchange rates move in the right direction.
Now, all this sound fine and dandy,but what are the risks of Forex System Trading? Surprisingly, compared with other money market trades, the sheer scale of the Forex market ensures greater price stability and better leverage. With built-in protection in the form of automatic limits for buying and selling, safety margins and other risk protection measures the likelihood of ending up in the red even when the Forex market is volatile is infinitely reduced. But all Forex traders should note that the market is one of the most liquid around and subject to strong currency trends. While leverage figures of 100:1 are often times quoted, without adequate risk protection in place the pendulum swing between profit and loss can be stark. Even veteran Forex System traders can be caught out and take large hits from time to time. With this type of investor speculation, the golden rule must be: don’t risk what you can’t afford to lose.

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