Demo Forex Account Trading Can Save You a Lot of Money! A demo Forex account trading makes life do much Easier because you can trade without losing an arm and a leg! Here is how... Forex can be risky, there is no doubt about that. However demo Forex account trading is where you can learn how to do currency exchange without the risk of losing money. Why? Demo Forex account trading is exactly like "real" trading, the same spreads, the same rates... everything... except you use "fake" money. Almost all platforms offer practice trading and it is easy to set up. All you do is join a trading platform for free by creating an account and BOOM you now can get some real world Forex experience without having to risk losing real money. You get real trading experience and it is all done trading "fake" money. Most people start out with demo Forex account trading before they jump in the deep waters and start to trade Forex for real money. Here's why... Like with any new skill, currency exchange takes time and a certain level of expertise before you get good at it. Practice Forex account trading will eliminate the risk of making a bad trade and having to mortgage your house. And that's good... right? As a beginner it takes some time to learn how the Forex market works. So demo Forex trading allows you to sample trading platforms before you trade for real, helps you get used to currency analysis, and often when you sign up for a demo account you will get access to free Forex training which will empower to trade forex expertly. There are many advantages for demo Forex account trading and few (if any) disadvantages. So if your new to Forex or just want to try out a new platform demo trading can save you from losing a lot of money! So what are you waiting for?

Forex Trading For Beginners - 4 Facts You Must Understand to Enjoy Currency Trading Success Here we will look at Forex trading for beginners and 4 essential facts about the market you must understand, if you want to avoid the majority of losers and join the elite 5% who make the really big gains and enjoy currency trading success. The first point should be obvious but most traders ignore it and lose and it's this: You need to make an effort to make money just as you do in any other profession but most traders think they can pay a hundred dollars or so to a robot vendor and get an income for life with no effort! Of course these systems don't work and wipe the trader who uses them out - why? Because if they did work and making money was that easy, 95% of traders wouldn't lose money and they do. Now let's look at our next Forex fact. Forex Markets Move to the Odds not Science! You hear lots of people telling you, that markets move to some scientific order but its obvious that if they did, we would all know the price in advance and there would be no market. Theories such as Gann, Elliot Wave and Fibonacci are promoted online heavily and loved by the far out crowd, who then lose money with them and wonder why! Forex trading is an odds market and you are like a good poker player, playing high odds trades and cutting losing trades and passing by ones with low odds. The good news is you only need a simple system to win because, make a system too complicated and it will have to many elements to break. Now we come to our third and final point and every trader, who is successful understands it and its this: Your Mindset is the Key to Your Success Most traders cannot accept losses and run them and they lose - they simply hate being wrong but if you want to be right all the time, don't trade currency markets. You need to have the discipline to take your losses and keep them small and if you do this, the market will reward you - don't do it and try and fight the market and it will destroy you, it really is that simple! If you understand the above facts and learn currency trading the right way, there is nothing to stop you earning a great second income and enjoying currency trading success.

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Online Foreign Currency Trading Jargon For Beginners Before we go into serious online foreign currency trading, let's get ourselves familiar with the jargon that is used in this industry. Amongst the major currency traded in the forex market, the most popular are United States Dollars (USD), Great Britain Pound (GBP), Japanese Yen (JPY), European Dollars (EUR), Canadian Dollars (CAD) and Australian Dollars (AUD). These currencies are mostly traded in pairs e.g. USD/JPY, EUR/USD, USD/JPY, GBP/USD and so on. The currency listed to the left before the slash ("/") is known as the base currency whilst the currency listed to the right after the slash ("/") is known as the quote currency. For example, the rate for this pair USD/JPY = 90.82. This means that you need 90.82 Japanese Yen to buy 1 United States Dollars. To start off, we absolutely must know the term 'pips'. PIPS are an acronym for 'percentage in point'. To put it simply, a pip is the smallest unit of price for a currency. It is the last decimal point in a currency pairs. You will most certainly hear forex traders say 'I earn 44 pips today'. So, what is the value for 1 pip? Let's take a look at the USD/JPY pair at the rate of 90.82. For this particular pair, 1 pip = 0.01. And what is the value for 0.01? Before we go into the value of 0.01, we will talk about Lots. Foreign currency trading, or known as forex, is traded in Lots and the standard size for one lot is 100,000 units. Now we will calculate the value of 0.01. (0.01/90.82)x100,000 = USD 11.01. Therefore, when you hear a trader say she earned 44 pips today; she had earned USD11.01 x 44 pips = USD484.44. Before you place a trade, you have to decide if you want to Buy or Sell. The uniqueness of forex trading is such that not only can you buy low, sell high; you can also sell high, and buy low. Yes, you can Sell first and buy back later. Therefore, if you have decided to buy, you are "going long" or "taking a long position" and if you have decided to sell, you are "going short" or "taking a short position". Next, we will look at the term "bid" and "ask". The "bid" is also known as the broker's selling price and the "ask", the broker's buying price. Therefore the ask price is always higher than the bid price. The difference between these two prices is then known as the "spread".

Forex Trading For Beginners - How Fibonacci Levels Can Make You Money Fibonacci levels - they are very, very important in forex trading. Fibonacci levels, along with support and resistance, trend lines, and maybe pivot points are the most popular, and accordingly, the most potentially profitable of all price levels in the market. If you want to make money in the forex, you had better learn about these levels. They sound complicated, but they are really easy to learn. Let's dive in! Fibonacci Numbers 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. These are the first few numbers. They are derived by adding two adjacent numbers together. For example, 1+1 = 2; 1+2 = 3; 2+3 = 5; 3+5 = 8; etc. Fibonacci Ratios Once you get to a certain level of these numbers, division of the numbers will give you certain ratios. Here are some examples: 55 / 89 = .618 89 / 144 = .618 etc. 34 / 89 = 38.2 55 / 144 = 38.2 etc. As you can see, there are many patterns to these numbers. And these numbers and ratios are not just found in the forex market - they are found throughout nature as well. I don't want to bore you with all of the math, so instead, I am going to list for you the basic ratios we care about in trading. 0.236 0.382 0.500 0.618 0.764 That's it. That's all of the ratios we care about for now. Just about every charting package will have a Fib indicator that will automatically plot these levels for you. To plot these levels, just find a high and low in the market and draw the levels from that high to that low. The indicator will automatically identify the levels for you. Just one hint - use very obvious highs and lows when drawing your levels. Why? Because the more obvious the high and low is, the more people will draw the same levels you drew. This means that more people will be trading the same levels you are trading, so the price will react better to your levels. So the question is "How can you make money with these numbers?" Here's how. The markets respect these levels. When I started writing this article, I tried to get into the reasons why the market respects these levels, but the article just became increasingly complicated. But to summarize - two reasons why the market respects these levels is that 1) humans tend to trade in patterns and 2) a lot of people use Fib levels so the market tends to react around those levels. It sounds kind of silly that the market would respect "arbitrary" price levels that result from Fibonacci ratios. I used to think they were so silly that I did not use them. But eventually I started to realize, "Yeah, these things are pretty cool!" Now I don't leave home without them! So play around with them. Take a little time, open your charts, and draw some Fib levels. You will begin to see pretty quickly why Fibonacci levels should be a vital part of your daily forex trading.

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