Currency Trading With Forex Futures

By Mark Alison

The foreign currency exchange market - usually abbreviated to "forex" or just "FX" - is the largest marketplace in the world, with over 1 trillion dollars traded on it everyday. The forex futures market is a derivative of the global FX market.

Foreign currency traders thinking about trading in forex futures can find all the information they need on the internet. Every day, thousands of people are exploring the forex global marketplace and learning to trade.

The idea of trading currencies has an almost mystical symbolism to many people. The forex global marketplace is extremely fast paced, and trades must be initiated and called quickly. You can indeed learn as you go, but it is a far better idea to be as well prepared as possible before you venture forth.

Forex futures are contracts traded on the exchanges to buy or sell a specified amount of a particular currency at a predetermined price, and on a set date. Futures contracts are always written to have a specific termination date, at which time delivery of the currency must take place, or an offsetting trade is made on the initial position.

When you are trading forex futures, you have to have a good sense of current trends and how to read them. Forex futures contracts can be purchased and either held, or they can be traded right away. A trader who understands how and when to hold or trade will consistently make a lot of money. This is what separates the "winners" from the "losers".

For those to whom true speculation is most appealing, trading in forex futures can be the ultimate outlet. A significant portion of the more than 4 trillion in daily foreign currency trades are in the form of futures contracts. Understanding how these trades are structured is crucial. One of the best ways to learn is from experienced traders.

Forex futures operate in the same way as other futures contracts. This means that a shift of even a fraction of a point can spell the difference between being in the profit or loss column. Because forex trading is affected instantly by world economic news, brokers and traders must stay aware and on top of the world economy. - 23223

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Forex Trading- Secret Trading rules

By fx

Forex Trading is financially the most rewarding strategy for Traders. With more than $2 trillion dollars turned over daily is also the most liquid trading market available. However in order to be a successful Forex Trader the simple most important thing that any trader either trading in the Forex market or looking to trade Forex can do is to educate themselves to become better Forex Traders. Today we will look at some key educational lessons to help you become a better Forex Trader.

This article focuses on building up solid forex profits using proven long term trading strategies. If you look at any forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit - present we will outline a simple method to get them.

Breakouts- Trading on Confirmation of Break outs

By far the best way of catching the serious moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is broken.

It's a fact that most leading moves start from new highs or lows. Right this an sit it next to your computer so that you don't forget it.

While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur. So you will the boat and therefore profits.

Most traders don't buy or sell breakouts and that's exactly why it's such a powerful method.

The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the greater the spacing between the tests the more valid the level is.

Confirmation- Don't Guess it, Confirm IT

Of course not every breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your dealing signal.

These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We don't have time to discuss them here (simply look up our other articles) but two of the greatest are - the stochastic and Relative Strength Index RSI

Stops and Targets

Stop points are easy with breakouts - Simply behind the breakout point.

If you have a serious trend then you need to be careful but you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don't know when the trend is going to end, so don't predict it.

It's ok to give a little bit back, as that's the nature of trading forex. Keep in mind if you got 50% of all leading trend you would be very rich. When you are long-term term trend following you have accept giving a bit back and taking dips in open equity as the trend develops - this is noise and does not affect the long term trend.

The above is a simple way to trade forex and catch the high odds moves that yield the serious profit. If you are learning forex dealing and want a simple method that is robust and will help you get every major move, then you should base your dealing on the above method.

Now that you have all the winning strategies, you now need to have a winning broker, recently the CFD FX REPORT has reviewed these brokers and have come up with Best Forex Broker

Any trader serious about gaining extra knowledge and becoming a better trader should continue to educate themselves as great place for Free education lessons is the CFD FX REPORT they offer as host of great education lessons. You can also join there forum and chat to traders around the world, or visit there broker section and see who the expert recommend. This site is a must for anyone serious about trading. - 23223

About the Author:

The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.

Becoming a CTA Takes Time and a Savings Nest Egg

By Bill Johnson

Money controls every function of the world, and commodities trading advisors play a key role in that exchange. The National Futures Association defines a CTA as an individual or firm that directly or indirectly advises clients on the selling and buying of futures or options contracts. As professional money managers, CTAs are required to be registered with the Commodities Futures Trading Commission.

To become a CTA, there's no formal education process. Although its advisable to first work at a trading firm prior to starting a CTA career, it doesn't guarantee your success, nor is previous work with a firm required in becoming a CTA. Plenty of CTAs have no formal trading education and still have proven themselves successfully capable in this business However, first trying your hand with a trading firm can help determine whether you have a natural talent for the work.

While there's no formal training that's required, you still need to have the credentials. Before applying to the National Futures Association, you must first pass the Series 3 exam- a 120-question, 2.5-hour test that measures your understanding of the makeup and regulations of the futures market.

Many planning to take the Series 3 test first practice with online study packages that provide sample tests as well as test-taking strategies. Having an idea of what to expect can keep you from being blindsided on test day.

First, you must determine if you are ready to become a CTA. How much success have you had playing the stock market over a long period time? A certain amount of success may be fleeting and simply a luck of the market. Real talent can sustain such success over an extended period of time through a variety of market conditions.

You should also take finances and personal circumstances into consideration. Beginning any business can be tricky, especially commodities trading. Unless your firm has a substantial amount of work already under management, you should count on never seeing a paycheck for the first year or two. Consider that a $1,000,000 account with a 2 percent management fee only earns $20,000 a year, just barely $1,600 a month.

Plus, you'll also face trading costs, rent, technology costs and fees for traditional support. Establishing a successful CTA career takes time. Be sure you have money in the bank before you begin.

However, if you have the natural talent to invest, a successful career may await you. Even in rocky times such as these, CTAs play a valuable role in the marketplace. Learning to spot market trends early can lead to a sustainable career in the exchange of managed futures. - 23223

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If you would like to learn more about the profession and want to become a CTA the author recommends going here to learn more.

Learning To Trade Without Indicators

By Peter Thomas

New forex traders may think the indicators on their charting platforms are helping, but in actuality, their trading his being restrained. Most people arent aware of this fact.

It may sound irrational and if some had mentioned this when I first began Forex Trading, I would have thought they were sabotaging my efforts.

When I began as Forex Trader, I utilized every single indicator possible. My goal was to make money in the Forex Market.

I quickly became frustrated because I was so focused on finding the "right" indicator that I didn't learn anything about the market that I was trading. I kept just hoping to find some shortcut to get rich quick. Needless to say I realized that there are no shortcuts when it comes to forex trading.

I treated the indicators as if the numbers where some type of fortuneteller and it did not occur to me to seek out the complete market picture. I never noticed what was happening in the currency markets.

Many new traders make the same mistake when they start trading. They became dazzled by the technology and forget the basics. All the trading information they need can be found on a low-tech bar chart. A concept called Price Action, which has been around almost as long as the stock markets.

Price Action is about the traders understanding of how price movements really work. These price movements then can be used to predict where the future of the price is headed.

It is amazing the information you can find by going low-tech and using a basic bar chart. It will get rid of all the unnecessary filler and lead you to better success while trading. - 23223

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To find out more about trading without indicators, you can visit this about the best education in forex.

Forex Trading- The 9 No's

By fxreport

Forex Trading is financially the most rewarding strategy for Traders. With more than $2 trillion dollars turned over daily is also the most liquid trading market available. However in order to be a successful Forex Trader the simple most important thing that any trader either trading in the Forex market or looking to trade Forex can do is to educate themselves to become better Forex Traders. Today we will look at some key educational lessons to help you become a better Forex Trader.

As a novice Forex Trader you should be aware that there are 9 big No No's when it comes to forex trading. You should make sure that you don't make the same mistakes that 90% of traders make, which is loose there money. These below are the 9 biggest reasons why people end broke from Forex Trading.

1. Scalping or Day Trading Although there are many articles about day trading or scalping as a new trader you should try to avoid it, as it is not a wise decision for a beginner. The reason for this as there is so much to learn about you can make. Forex Trading and learning to day trade first up is the most risky strategy that you can use.

2. Using a Guru There are experts everywhere that are willing to sell advice, but remember 90% of them will end up broke. They will offer to do it only commission, but ultimately it is your money that they will lose.

3. Using Bad Brokers- They are like gurus. Make sure that you research the brokers first and make sure that you check the figures of these brokers before committing. If you are looking for a Great Broker then view the CFD FX REPORTthey have recently researched all the brokers and have come up with some excellent brokers that can help you with your trading future.

4. Practice with demo accounts- for months If you use practice accounts for months, you are only kidding yourself as you don't have the pressure of your money on the line.

5. Habitual trading Some Forex Traders trade just for the sake of it. They think that if they are not in the market they will miss a move. If you trade just for the sake of trading then chances won't be in your favor. Over trading will only make you go broke faster.

6. Mix fundamentals and technical inputs- Just confusing yourself If you are trying to mix both you just confuse yourself and drain your bank account, not an ideal strategy for Forex Trading.

7. Breaking your Rules Patience is the key to forex success. So many traders get the perfect system but fail to wait it and will just trade for the sake of it, breaking there own rules. Have rules and stick to them.

8. All or Nothing- Massive Leverage Too many traders are trying to make it rich from the first trade if that is your plan then you will ultimately end up broke. Today there are many trading platforms that offer massive leverage, such as 400:1 which can be too high. Make sure you use money management skills when using leverage.

9. Using too many inputs Many traders think that complicated systems are the perfect system but with it they are more likely not to succeed. The best rule that you use is simple is best.

So make sure that you get as much as education as possible before starting to trade, as great place to get lots of free quality education lessons is the CFD FX REPORT. Happy Trading - 23223

About the Author:

The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.