What Is An Online Forex Trading System?

By John Eather

First let me give you some basics of online forex trading systems. FX, Forex, and Foreign Exchange are all terms that are used to describe trading world currencies. With trades totaling more than 3 trillion dollars every day, it is the most enormous market for trading. As with all trades, you hope to make a profit and be able to trade online as well.

Always having someone to trade with provides you with superior liquidity. Especially considering that this market is available for trading every day all day and night. You don't have to wait for a ringing bell.

So, what are the does and don'ts that I have learned in regards to forex trading? Pay attention because it could save you some major headaches.

There are automatic trading robots available for you to use. Don't use them. They trade based on previous information which will not help you. If they did work well, then everyone would use them for trading.

Knowing that not every trade is going to be a winner is important. You are going to have some losses. Telling the future is not possible so, make sure the odds are in your favor with every trade you make.

Use your head. Think about the trade before you do it. Don't let a computer tell you when to buy and when to sell. In other words, just because you see a green light or a red light, it doesn't mean that is the best decision.

I don't care what your broker tells about not earning a commission. They do earn one but they call it a spread. It is one and the same only using different terms. Everytime you trade, they earn money.

I was sitting in front of a computer for hours on end is not living. It is also not going to help you. In fact, it could harm you. You will eventually burn out on it or start doubting your decisions. So, spend on average about 20 minutes a day performing your trades. Take the rest of the day and do something you love to do like spending time with friends or family. Things like that.

Don't wait for someone to tell you that the economy is okay before you start trading. This has nothing to do with currency trading or your earning potential with Forex. Becoming a successful trader by following certain rules, you learn that you control the risks you take. When you are in control, the earning potential is there regardless of the market. - 23218

About the Author:

Want to find out more about online forex trading system, then visit John Eather's site on how to choose the best forex trading robot for your needs.

Trading Divergences

By Ahmad Hassam

Price oscillator divergences have long been acknowledged by technical traders as a solid indicator of potential price reversals. But it doesn't mean that divergences will always predict a reversal correctly. However, well defined divergences particularly on the long term charts can be surprisingly accurate in many instances.

Catching a major price reversal at the correct time can be so profitable that only a few accurate divergence signals are needed to offset the inevitable false signals. Price divergence oscillators can be spotted with just two elements on the price charts.

The first element is the price and the second element is an oscillator that runs either above or below a price level. This second element can be Stochastics, RSI, MACD or any similar oscillator.

Many traders use MACD as their sole confirming indicator. The Moving Average Convergence Divergence (MACD) is among the most popular technical indicator or an oscillator invented.

MACD acts as a sign of trend momentum by representing the relationship between two moving averages. MACD is a multifaceted indicator. Some traders also take trading signals exclusively from MACD.

You must have used MACD in your trading. MACD is basically the difference between two moving averages. MACD can be traded by taking signals from the crossovers of two lines, crosses above and below the zero line. Relative Strength Indicator (RSI) is another popular oscillator that provides a measure of price momentum.

RSI is an indicator that gives overbought and oversold signals in ranging markets. RSI may also be used for divergence purposes. However, its usefulness like most other indicators tends to diminish during a trending market. Stochastic indicator may also be used for divergence trading.

Technically speaking what is a divergence? When there is an imbalance between the price element and the oscillator element a divergence occurs. This is the point when the oscillator is providing a strong hint that price may be losing its momentum and a change in price direction may therefore be impending. Both the price action and the oscillator begin to go separate ways and start telling opposite stories.

A bearish divergence is a hint for an impending reversal back down. A bearish divergence occurs when the price hits a higher high while the oscillator hits a lower high.

In case of a bearish divergence, it is an indication that price may soon turn and go back down as the higher high in the price may lose its momentum and begin falling.

A bullish divergence is an exact opposite of the bearish divergence. A bullish divergence occurs when price hits a lower low while the oscillator hits a corresponding higher low. A bullish divergence hints at an impending reversal back up.

When used in conjunction with other trading tools, divergences can be a remarkably effective method for helping to time major market events. Divergences are often used as hints of possible turns and reversals. However, divergences are not frequently used as a full fledged self sufficient trading strategy. - 23218

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try These Cash Printing Forex Signals From Heaven! Learn Fibonacci Retracement

Beginning With Forex Signals

By Tim Kaldo

In my opinion, trading in the forex market is one of the most exciting things in all of trading. Due to the constant changes in such a huge market the possibilities are endless. A lot of money could be made at any instant. After all you are trading money! Forex signals can be the key to helping you achieve your forex goals and get you trading today.

Do you really need to use forex signals? Imagine yourself at your computer analyzing and trying to find the right time to trade. All of a sudden, you get an email that says a trade is approaching. You get prepared, the moment comes, and you make a trade. A little later, you get a second email that says to close the trade out. You were able to score a profit and knowing the market was not necessary. This is what forex signals are and they are very easy to use.

The advantage of forex signals is that they allow you to do your own thing. You aren't locked to the computer monitor anymore. You are free to do additional things until the best time to trade presents itself. You won't need to glue yourself to the computer and gaze at the charts. If a trade is there, you'll be notified.

Think of the freedom that this represents. You can have the forex signals sent to your phone and as long as you're nearby your trading platform, you can go anywhere you want. You can even place the trades from your cell phone if you desire.

One more excellent benefit of forex signals is that you don't have to spend time studying the markets or losing your own money to test out the strategies. You just look at the signal and make the trade. And once you learn how to use your trading platform, you're all set. The know-how that you need now can be learned in one day.

Forex signals should definitely be added to your toolbox, but with the positives there are always some drawbacks. No signal service is perfect and they do not win every time. Finding a service that is feeding you more winning signals than losing is the key. If a majority of your trades are winners then you definitely can make it work.

What most people overlook, even with successful forex signals, is a sound money management strategy. Remember that you could win every trade but one, but if bet the bank on that one trade you can still end up losing money. Use a consistent amount of money on every trade. Usually traders use a small percentage of their account no matter what. This allows you to grow with your money.

Forex signals are one of the best ways available to free yourself up from the computer. You can let veteran trader do all of the analyzing and you go do what you want. When it's time to trade, they will let you know. You then take the trades, profit, and everybody's happy. Could it be any simpler than that? - 23218

About the Author:

A great resource on forex signals is available at http://tradingforexblog.com

Bonds - What Are Bonds?

By Prema De Silva

The bond market is made up of of securities that are in actual fact loans from investors to borrowers. Not limited to just companies and organizations, governments are one of the major bond issuers in the world. The purchasers of these bonds can range from individuals to banks to insurance companies.

The coupon, is how the owner of the bond gets paid. And the coupon is in effect the interest rate paid to the investor over a specific amount of time. Bonds are also well-known as fixed income securities due to the fixed interest rate that is accepted at the start.

So why should we invest in the bond market?. There are some advantages that bonds have over other investments such as the stock market. Investing in bonds imply buying debt rather than equity. Debt-holders always get paid before shareholders should a crisis emerge.

The bond market is more often than not a lot more dependable than other markets are. That is not to say there are no high risk bonds on the market. There always are. Rather, bonds offer a cautious investment opportunity. Bonds offer safety but not the kinds of profits offered by other investments. It is because of the conservative nature of bonds that most people fore-go the opportunity to invest in the bonds market.

The United States od America is by far the chief issuer of bonds in the world. While not as significant as the stock or currency market, the bond market did see as much as 80 trillion trading for the year 2008.

Dabbling in the bonds market does have its downside. Big profits come only to those that purchase large quantities outside the means of most. Secondly, it may not be easy selling your bond should you intend to give it up. The forex market on the other hand enables us to sell with relative ease. Last of all, you cannot trade bonds like you would forex online.

By and large, bonds offer a stable investment prospect to the Malaysian public and should be part of your investment portfolio. Those of you in Malaysia that are on the conservative side should feel comfortable with the bonds market. Profits are on the low side owing to its conservative nature. - 23218

About the Author:

Click here for more reading on Bonds and Finance in the links mentioned. The Author has been investing online for over 7 years. When Prema De Silva is not trading the currency markets, she expands her knowledge on online investing and oversees the operation of a popular mutual Funds trading website.

Find A Lifeline With A Forex Blog

By Bart Icles

A blog is the shortened term for "weblog" and which is a type of website that is maintained by a person who makes regular or daily entries like commentaries and descriptions on certain subjects and events of interest, and supplemented with some form of graphics or videos. The entries are showed in a reverse chronological manner. The word itself can be used as both as a noun and a verb. In this case, we will be discussing a Forex blog.

Forex blogs are very helpful mediums, especially for those new to Forex trading, of which can broaden and impart many useful information of anything relevant in the Foreign exchange community. A Forex blog may contain some very important information that revolves around Forex trading and the Forex market, breaking news updates, current market trends, market analysis, articles, and Forex trading forums, to name some. The Forex blogs that can be found on the Internet differ in scope and coverage. Majority offer some of the best useful information and advices that most find very helpful, and yet one may encounter others that are more than just plain a waste of your precious time and effort.

Aside from this, it can provide some lessons not found in a Forex trading course or tutorial that can widen anyone's knowledge on the currency market. The good quality Forex blogs are a great ally when it comes to teaching someone lacking the skills and knowledge needed to operate the market correctly and safely. The most popular and most visited sites are being run by those who have an unquestionable understanding - the actual and experienced traders - who all have been in the business for many years already and knows how the market works forward and back.

When searching for a Forex blog, some things to watch out for is if the site is maintained by a legitimate Forex expert or Forex trader who has a lot of experience trading the market for quite some time already. Also, it should have information and data on the market that is current, offers some insights and advices regarding past and present trade transactions.

As a business investor, the ability to survive and go on to become a success depends on being able to acquire the latest and most relevant events in real time. With the Forex market being a very volatile investment market, fluctuations and changes happen by the minute, so having the most updated market trends and other essential information can really mean the difference between profiting big time or to losing it all in one day. - 23218

About the Author:

Succeeding as a forex market maker takes a desire to learn and a drive to become a great trader. Furthermore the currency forex market take dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.