Blogger Data http://www.bloggerdata.com Forex Tools, Spells and Alchemy Wed, 10 Mar 2010 22:49:39 +0000 http://backend.userland.com/rss092 en Forex News

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]]> http://www.bloggerdata.com/2010/03/forex-news.html Verify a broker Before making a choice for a broker be careful for few things:

  • Verify where is registered the company (the most companies are registered in off shore zones)
  • Check if you find details about the company, physical contact address (not PO Box)
  • Check if someone answer to a call and what kind of informations is giving
  • Check if is acredited and regulated by a trusted authority (like NFA)
  • When you deposit money to a forex broker, be careful where you deposit money to discover that not reached the right place. Generally prefer wire transfers that do not find that pulling the card more than you paid to cover margin excuse.
  • Better start with a demo account or smaller amount to understand very well how it works and if have bugs or strange things on the platform
  • Research on the forums and searching engines about the details and comment left by others

Be aware that trading scammers are everywhere on the web. They will appear to be a legitimate business. They will be pleasant and well spoken. Their leaflets, emails, letters and order forms will often look professional or official. Scammers are persistent and persuasive and try to rush you into making a decision. They may also target junior employees who may be less aware of the existence of scammers.

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]]> http://www.bloggerdata.com/2010/02/verify-a-broker.html NFA Forex brokers List of few Forex brokers, who are registered with NFA:

ACM USA, Advanced Markets, Alpari (US), ATC Brokers, AVS Carter, Boston Merchant Financial, Capital Market Services - CMS Forex, CitiFX Pro (Citigroup), CFOS FX, Cobra Trading, Easy-Forex, eToroUSA, FastBrokersFX, Forex Club, Forex Systems, LLC, Forex.com - Gain Capital Group, FX Solutions, FXCM, FXDD, GFT - Global Futures & Forex, HotspotFXi, IG Markets, IKON Global Markets, IKON Global - Royal Division, Interactive Brokers, Interbank FX, Lightspeed Financial, MB Trading, MG Forex - MG Financial, OANDA, ODL Securities, PFGBEST, Rosenthal Collins Group, Spot Trader FX, The Traders Guide, thinkorswim, TradersChoiceFX, TradeStation Securities, UFXBank

National Futures Association (NFA) is the industry-wide self-regulatory organization for the U.S. futures industry. NFA’s mission is to provide innovative regulatory programs and services that ensure futures industry integrity, protect market participants and help its Members meet their regulatory responsibilities. NFA’s activities are overseen by the Commodity Futures Trading Commission (CFTC), the government agency responsible for regulating the U.S. futures industry.

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]]> http://www.bloggerdata.com/2010/02/nfa-forex-brokers.html Forex Risk Management By: Nial Fuller

Risk management is a topic that many forex traders do not take seriously enough. In fact, risk management is probably the single biggest factor that is over looked amongst forex traders and this is the biggest reason why 95% of them fail to make money over the long term. The reason that so many traders ignore managing their risk or developing a risk management plan is simply because they don’t feel like they need to. Many forex traders think that their system or their trading method is so accurate that they don’t need to manage their risk because they believe they will win on a very large percentage of their trades. The truth is that this is a false belief and it is simply emotional trading and illogical thinking as a result of fear and or greed. Professional forex traders understand that at best they will win on 60-70% of their trades, they understand they will lose on any where between 30-50% of their trades. If you knew you were going to lose something 50% of the time why would you not manage your risk? The simple answer is because novice forex traders do not understand the concept of position sizing and they are trading based off emotion.

Position sizing is simply adjusting the number of lots or contracts you trade to stay within a pre-defined risk threshold while placing your stop loss at a safe level. Let’s dig into that sentence piece by piece. Many traders make the huge mistake of having a certain dollar amount in their mind that they are willing to risk before they enter a trade. They then buy or sell a number of lots that is equal to or greater than that dollar amount of risk. After that they will arbitrarily put their stop loss in mainly because they have heard you should trade with a stop loss. This is not an effective risk management scheme, in fact it is basically gambling but it is exactly how, or similar to how most forex traders enter a trade.

To effectively utilize the power of position sizing you must first understand that it is absolutely necessary to have a set risk percentage that you are emotionally ok with losing on any one trade. Most traders cannot operate emotion free after losing more than about 3% of their account value on anyone trade. As such, risking 2% or less is the recommended amount for any trader and you will be hard pressed to find any professional short-term or swing forex trader risking more than that on anyone trade, this is because they understand the importance of risk management and have already lost enough money to know they cannot control the market. So now your risk is at 2% of say a $5,000 dollar trading account. This means you can risk $100 on any one trade that meets your criteria for a valid trade setup.

So here is where position sizing, risk threshold and stop loss placement come in. Once you find a trade that meets your trading plan entry criteria you then need to find the safest place for your stop loss, after you find this level you calculate the distance between it and your entry level. Let’s say this distance is 150 pips, this means you can still only risk $100 but you must now adjust your position size down to meet your risk threshold. An advantage to forex trading is that you can trade mini and micro-lots at many brokers which essentially means you have extreme flexibility in position sizing. So to meet your 2% risk threshold and maintain your 150 pip stop loss distance you can only trade 0.66 micro lots, which means you are trading .66 cents per point. .66 x 150 = $99. It’s important to stay just under your risk threshold if it comes down to being slightly under or slightly over; if you traded.67 cents per pip you would be risking .67×150=$100.50, which is over 2% risk, you want to avoid this because it will induce an emotional reaction that will very likely snow ball into a huge emotional roller coaster of trading errors.

About the Author

Nial Fuller is a Respected Trader and Forex Coach. He runs a Forex Training and Education Website, Visit his site here Forex Risk Management

(ArticlesBase SC #1821380)

Article Source: http://www.articlesbase.com/ - Forex Risk Management

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]]> http://www.bloggerdata.com/2010/02/forex-risk-management.html Forex market hours Forex Market Hours shows the ‘market hours’ of the major Foreign EXCHANGE markets. The major markets are London, New York, Tokyo and Sydney. There are some benefits in knowing the ‘trading hours’ of ForeX markets:

1. The first hour after a major market opens is considered very important and often indicates how the session might develop.
2. In periods when market ‘trading hours’ overlap, liquidity tends to increase as more traders participate in the FX market.

NYSE

New York Stock Exchange
Currency: USD

(US Dollar)

London

London Stock Exchange
Currency: GBP

(British Pound)

Tokyo

Tokyo Stock Exchange
Currency Traded: Yen

The Tokyo Stock Exchange is the largest stock exchange in Japan.

Sydney

Australian Stock Exchange

Currency: AUD

(Australian Dollar)
The Australian Stock Exchange, or ASX, is the primary stock exchange in Australia and was formally founded in 1987.

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