" A smooth sea never made a skillful mariner!" - Quote by an Addicted forex Trader The forex, also designated the foreign trade market is the largest and greatest liquid exchange market in the planet. Unlike the stock exchange, the forex does not suffer a specified trading location or termination period. Instead, over $2 trillion are traded and sold every day. The forex never closes and exchange takes place twenty-four hours a day along the business week. There are currently six significant currency pairs that are utilized and traded each day on the forex. These six pairs explain for up to 90 percent of the selling bustle each and every day. These embrace the euro and the US dollar (EUR/USD), the Japanese yen and the US dollar (JPY/USD), the US dollar and the Swiss Franc (USD/CHF), the Australian dollar and the US dollar (AUD/USD), the British pound and the US dollar (GBP/USD) and the US dollar and the Canadian dollar (USD/CAD). Each of these currencies operates a bit differently in the forex and fluctuates a little on a regular basis. The Euro is extremely vital in the foreign exchange currency. It does not simply stand for one country, but a sum of twelve countries in Europe. The countries that are members of the European Union and identify the Euro as currency are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and Sweden. Out of the fifteen members of the European Union, just two do not respect the euro as the authorized currency. These are Denmark and the United Kingdom. Sweden began using the euro in 2005. Currently the euro is comparative to the US dollar and is worth around 86-87 cents to the dollar. In 1999, all of the European countries locked the cost of their own currencies in reference to the euro. This implies that all of the currencies were valued round the same as the euro. These countries before long began using the euro as their money so that the currency could be utilized across the region and utilized immune from the demand for obtaining variant forms of currency. This change helped bloster the euro and become a more accepted form of currency. The use of a unified currency across myriad countries has both advantages and disadvantages in connection to the forex. One of the notable advantage of the euro is that the barter rate is lowered, thereby making investment across environs easier. There are risks in the changes in the cost of the currency. This implies that companies see it risky to import or export beyond their currency domain and that yield could be lowered. Using a broad form of currency eliminates this worry. It creates an additional gamble free import and export room, which once relies thoroughly on intra-European exports. Additional advantage of numerous countries using the euro is that it eliminates the demand for adjusting fees. When a individual or corporation has the requirement to exchange money, there is a fee desired. Many financial institutions levy assorted manner of percentage for adjustment and while it is a relative small amount, it adds up. Multiple changes add up all across Europe. Dropping these fees saves the economy in the long run. When evaluating at the forex and the way the euro performs, it is crucial to recall that using one form of currency creates a deeper monetary market. This implies that the European markets are much more liquid than in the past. The idea that it will create a deeper financial market implies it will act upon the way the consumers expend the currency all across the region. This will in turn, prompt to increased amounts of money that is played out on the stock market. Now that the euro has become one of the biggest currencies in the planet, trading for it and with it will increase on the forex. The forex is customarily bedevilled by the US dollar, but the euro is forcing a hefty stand. The use of this currency all about the European countries is delightful in numerous ways and it is thoroughly established all over the globe. Both businesses and individuals gain from the use of the euro in these countries, free of the fret of having to switch the money as much as in the past. Note: This information by Yee Kok Siong a forex investor is a culmination from many different places and resources. You should never just believe one resource and you should study a subject from a few different perspectives.
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By far the best time to trade the currency market is when it is the most active and therefore has the biggest volume of trades. A fast currency market means more opportunity for price moves either up or down. A slow market generally means you are wasting your time — turn off your computer and go fishing!
The greatest volume of currency transactions go through during London time, followed by New York and then Tokyo hours. London time therefore is the centre of the currency trading universe. What does this mean to us the average forex trader and is there a best time to trade our chosen currency pair? Yes! First of all we must look at overlapping trading times. The forex market starts with Japanese traders between 8:00 pm to 4:00 am EST. At 3:00 am EST London traders start their day and finish at 11:00 am EST. New York traders open at 8:00 am and finish at 4:00 pm EST. If we are trading EUR/USD, USD/GPB currency pairs we must look at when the trading time for these pairs overlaps. Therefore, the best time to trade the currency pair: EUR/USD and USD/GPB is between 7:00 am and 11:00 am EST when the two markets for these currencies are most active. (ie. when they are overlapping) Forex trading is a zero sum game and we as traders must try to do everything possible to get that extra advantage over our competition and swing the odds in our favour. Choosing the best time to trade the currency pair we have selected is one of the things under our control that can easily be done. Another thing forex day traders should be aware of related to the best time to trade is that Mondays and Fridays are generally poor days to trade. Why is this? Empirical research suggests that Monday trading is usually tentative as the market is trying to make careful steps to confirm or establish a trend. Fridays are also poor days due to the huge amount of closing trades on that day. CONCLUSION: Yee Kok Siong says that the best time to trade the currency pair of your choice is when trading in that particular currency is most active. The best days to trade the currency market is more likely between Tuesday and Thursday. Good luck with your trading! There are different reasons why many people are trading in the forex. It includes free demo on real time, leverage of 400:1, or simply getting into the action of trading. However, even if traders performed practices on real time trading by testing its services and strategies, they sometimes fail. The trading demo is not enough unless the trader know what he is doing. Yee Kok Siong a forex investor says that there are different important factors that traders should do in order for them to succeed. Remember, forex trading involves practice, reinforcement, and repetition. This process requires refined strategies and skills. So, traders should incorporate forex simulators to help them save money and never start as a loser. Compared to forex demo that provides real time functions, forex simulators helps the traders to upload, review, and view historical data any time. It tests the traders' understanding if they could recognize trading signals and patterns which can be fast forwarded and rewound. In this manner, the traders can retests their forex trading knowledge and find out what are the things to improve and change to stay in the pace of the forex market conditions. Forex simulators are very essential to traders because they can be trained for months even within a few days of working. It is because the traders can rewind, pause, or fast forward whatever knowledge they have learned. A five-minute timeframe can be set-up to whatever chosen area. The traders can also get trade snapshots, use the indicators that they like, or keep journal trades to refine strategies. Forex simulators are compared to PC games. The player has a mission to accomplish and repeating the games so many times can lead to perfection. The forex simulators also works this way, it requires a lot of practice, repetition, and reinforcement to be a good trader. The traders are more prepared before they try opening a live account on forex trading. Forex simulators are serious tools for traders who wanted to learn how to trade before investing their real money on it. Keep in mind that there are thousands of forex traders in the forex markets. So, how will the traders invest their money successfully if they don’t understand the basics? If forex simulators are clearly defined and practiced then a trader’s success is always possible. The first thing that traders should avoid is forex trading pitfalls so that they could really make money out of their investments. 1) Forex simulators are helpful guides to forex traders so that they could successfully trade forex in the forex markets. It teaches the traders on how to trade in pairs instead of currencies. The traders learn the relationship of one currency from the other and its impacts. Take note, the failure or success of trading forex depends on the right combination of currencies. 2) The market conditions are also important when trading forex. Forex stimulators help the traders in understanding the basics of forex trading markets to the best of the trader’s advantage. It also updates the traders about economic events and news affecting the market conditions. Most novice traders can be shocked by market fluctuation brought about by these phenomena. So, they missed the opportunity to trade because they wait for the market to calm down before trading. Remember, the potential market condition lies in its volatility and not in tranquility. 3) Traders also study the advantages of short-term and long-term trading. They can obtain helpful techniques to gain profits by being an ambitious trader. The bid and ask price should be understood well in making profits especially when making either a small or large trades. 4) Forex stimulators enable the traders to weigh the effects of trading with too much caution. The incremental profit on small scales does not make any difference. Placing stop losses that are too tight can increase the risks of trading failures. 5) The traders can choose whether to become an independent trader or with an aid of a broker. The risks are clearly explained as well as the outcome of trades. In any way, the traders should analyze it by themselves or seek advice from different reputable sources to prevent committing trade mistakes. Forex trading simulators can help the traders develop helpful strategies before starting their forex trading business. Simulated forex trading is worth it because it starts with a plan, proper knowledge, and skills to achieve success in trading forex. Also read: Trading the FOREX Market offers you Huge Leverage on Your Time and Money Forex trading, a lot of people may already have heard of it, but not all know what it is all about. One may often think that it is for the 'big' ones, big businesses and organizations. But that is not so, in fact, there are a lot of ordinary individuals who are into forex trading.
Different countries or nations have different currencies. But not all currencies are traded in the FX market. There are seven major currencies traded in the market. Forex trading is the buying and selling of currencies in pair. You can possibly do the trade without a currency pair. A typical example is the US dollars/Japanese Yen. The basic of forex trading is to buy a currency at a lower price and sell it at a much higher price. But sometimes, having this knowledge is not enough. Forex trading involves a lot of different things that not all individuals have a proper knowledge on. Forex trading takes place twenty four hours a day, so even when you're sleeping, the trade goes on. The FX market is by far the largest financial market in the whole world. That is why a lot of organizations and individuals are attracted to do the trade. Before, large speculators, banks and currency traders ruled the FX market, but that is no longer true these days. There are now brokers who can help individuals and small companies by breaking down inter-bank units. If you're interested in forex trading, you can do it alone, Yee Kok Siong suggests to attend a forex class first, or practice as an apprentice. The forex market is volatile, and new traders may find it hard because of the risks that it involves. The last two options are much better especially if you are new in the FX market. This way, you can benefit a lot from having well-experienced instructors. You are to have a real time experience which you can use later on when you do your trade. You have to understand the process of forex trading first. Remember that the FX market has no boundaries or barriers. So before jumping into the market, you have to know the right entry points. Charting and mapping are also important aspects in forex trading. Charting software are readily available, you can secure one so that you can learn about it; as well as learning how to properly map it. Through this, you can see how the market moves. And you can now make good decisions whether to buy or sell a currency, and earn profits in return. Another important thing according to Yee Kok Siong to learn is forex trading psychology. You should know how to properly deal with all your losses, of course you can't expect to gain at all times. If for a short period you have made a lot of losses, perhaps its time to stop just for sometime. Don’t be carried away in doing the trade, otherwise you may incur a lot of losses. New starters who instantly gain a lot of profits may think that they know too much. But it helps to know that it is not the same all throughout. Good profits oftentimes encourage more people to trading so much, without thinking of the risks. Discipline is one trait that you should practice and learn. Starters, who go through forex trading on their own, without any help, are likely not to succeed in this kind of trade, not unless he or she is 'gifted'. Although they may enjoy a certain amount of profit, time will come when won't be able to keep up with the trade without knowledge of forex trading and its technical aspects. As a trader, you alone can decide which option is best for you. Learning forex trading requires dedication, if you can pull it off on your own, good for you. But if you think that you need a little help, you are free to choose from the many forex trading classes offered; or you can be a broker's apprentice. Anyway you choose, you can learn so much about forex trading. And all your learning experiences can be of great importance once you do your actual trade. There is no substitute to proper learning. It gives you a good grip about the trade, and you can be confident that you're making good decisions. These would reflect a lot from the profits that you are about to gain. |
About Mr SiongAn arbitrageur and an investor and in the eyes of banker an HNI. Mr. Siong is a self-motivated entrepreneur who believes that no market is perfect and it is up-to an individual to understand that imperfect gap and business opportunity and make the most out of i Archives
December 2018
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