Wednesday, September 12, 2007

The Pros And Cons Of Trading Forex

There is not other financial market which compares to the foreign exchange currencies market. Trading Forex can be done around the clock all year long, including weekends. Because of its uninterrupted accessibility, trading the Forex market has made the exchange of currencies the largest money making opportunity in the world.

Even without its uninterrupted accessibility, trading the Forex would still be the most user-friendly investment around. Its generous leverage conditions, which run as high as 100:1, allow even the smallest investors to control a considerable amount of currency. Someone with only $1000 of risk capital, for instance, can actually buy $100,000 of a currency to use for trading.

But even with that kind of leverage, no one should start trading Forex without first studying the currencies market for an extended period. Learning to recognize patterns in currency fluctuations is the only way to develop an instinct for when to enter and exit when you are trading Forex.

The Risks Of Trading Forex
There is risk involved in investing in any of the financial markets. But thousands of investors have learned that if they use discipline when trading Forex, they have a good chance of clearing a nice profit without risking too much of their own money. With trading platforms capable of instantaneously providing fluctuations in the prices of various currencies, those trading Forex can capitalize on small movements in the currencies markets and make surprisingly impressive profits.

Trading the Forex market is much less complicated than trading stocks, simply because there are only a handful of major currencies. Add that to the high leverage available in the Forex markets, and the correspondingly small amount of capital outlay required, and trading Forex seems even more attractive.

Then consider the ability to trade Forex at any hour of the day or night, and the exodus of traders from the stock market to trading Forex is easily understood.

Limit And Stop Loss Orders
For those nervous about the risks involved in trading Forex, both limit orders and stop loss orders are available. And because of the enormous liquidity of the currencies market, even limit orders are filled almost instantaneously. A limit order will allow an investor to specify both a buying and selling price, and will not have to pay more or sell for less as long as there is a buyer or seller who will meet that limit. If no one does, the limit order will expire.

A stop loss means that an investors position in a currency trade will be liquidated as soon as the price of the currency hits that level. A top loss order is a great way to get out of a currency trade which goes bad without losing your shirt.

Trading Forex will also eliminate the commission you have been used to paying your stock broker. That doesnt mean, however, that you can trade for free. Forex brokers charge a spread on each purchase and sale you make. You should learn exactly what that spread will cost you before you start using a particular broker, and also investigate any fees a broker might charge you if you hold a position in you account overnight.

You can also find more info on Trading Forex and e-Forex Trading. is a comprehensive resource to know about e-Forex Trading System.

A + B - N (AMRO) Bank

The investment market is like the dating market; the ugly little duck can turn into a desirable prince(s) after someone has given it some attention. And what happens next, all of a sudden the former duck gets surrounded by a chain of new admirers. They all want her. Or him.

Currently on the scene is ABN AMRO. Not really small, nor exactly ugly but not performing according to the stock exchange standards (what ever they might be). And the bank found a buyer (Barclays) for its shares willing to pay around the 36 euros.

New admirers of the bank include a group of three European banks that are willing to offer 39 euros. Why 39, you may ask. Perhaps because 40 seems psychologically too much or simply that 39 divided by three is exactly 13.

The offer of this consortium (formed by the Spanish bank Santander, the Belgium bank Fortis and the Royal Bank of Scotland) will bring ABN to a demolition stage; each bank acquires a part of the whole. Santander receives the desired Italian branch only recently acquired and Brazil, Fortis the Benelux part and RBS the American operation.

The question whether this split-up would be worse than the original offer from Barclays remains unanswered. Many believe so, I doubt it from a cultural point of view.

In fact the situation in which ABN stranded is one of incomplete acquisition. In the financial world it is to eat or get eaten and ABN ate only half its way. It left the company with a well established market in Europe but insignificant in nearly any other continent. For Santander it makes much more sense to acquire Brazil and an Italian part (something its rival BBVA - could manage so far) and the acquisition of Fortis will make perfectly sense although a larger cultural mismatch. And the oversees (US) activities of RBS seems neither illogical.

Cultural speaking the break up would make more sense, because each three banks would expand with similar cultures. Santander would provide a better fit for the Brazilian branch, although you could question whether this fits also the Italian case.

On the other hand, the consortium offer would also mean a bigger change, because the name ABN AMRO would cease to exist.

2007 Hans Bool

Hans Bool writes articles about management, culture and change. If you are interested to read or experience more about these topics have a look at: Astor White or sign-up for our newsletter.

Why You Should Use the Forex Commodity Trading Systems

Are you searching for a great way to invest in the international foreign exchange market? Then look no further than Forex trading processes. It is one of the easiest ways to trade because you don't need to spend a lot of time learning how the system works. You can access the system anytime Monday through Saturday, twenty-four hours a day. This makes it one of the most convenient methods of investing around.

There are many other advantages of Forex trading processes that you will enjoy. For instance, when you set up the account you can use the practice account to get the feel of how the system works. If you are a little nervous about trading this will help you to relax and feel more at ease, which will help prepare you for the real thing. The Forex trading processes has six major currencies that you can choose from. Other systems have hundreds which makes them much more complicated to use. You have total control over the account and once you use the propriety software to set up the account, it will automatically buy and sell according to the way you choose.

You can then set back and relax. The Forex system will do all the work for you. You dont have to worry about spending long hours taking care of the account, all you need is a few minutes each day to check the account. Forex uses a strategy that really works. They use currencies pairs that are opposites. This means that when one is losing money the other is normally making money. The two pairs will balance out and usually leaves you with a profit. This system has been proven to work very well. It is because of this strategy that Forex is becoming so popular with investors.

Forex is one of the best ways to invest in foreign currency exchange. If investing is something that you are interested in, then you definitely need to take the time to learn all you can about Forex. This way you can see first hand all the advantages that it has to offer. You will see why it is the number one way to invest and be glad that you choose Forex to take care of all your investing needs.

Learn about Forex Commodity Trading and Forex Commodity Trading Process at

Increase Your Chances Of Success In The Forex Market

The learning curve in the forex market is a big one and most traders already lost there first account before they ever get passed this point.

Almost all new forex traders believe they must predict turning points in the forex market in order to make money. Not only is this totally wrong it is also very hard to do.

I always recommend a new trader to follow the herd, trade with the trend. The trend is your best friend in the forex market and you should always be with him, never against him!

When the market is going up you buy.

When the market is going down you sell.

Simple as that, you may want to pick a couple of technical indicators to help you in your trading decisions. I say a couple because I personally believe that any more than 2 and you are just making it harder to define you entry.

For example you may want to use the 50% fib level along with round numbers. These are great tools to use as this is what the large institutions are using.

Cut your losses short and ride you winners as long as you can. Even try adding to then along the way.

Start trying to risk less than half of what you are trying to gain, this ensures that in the long run you have a good chance of success. I always try and shoot for three times what I have risked as this means I only have to be correct 25% of the time to break even.

One of the most important things I can tell you to help you with your trading is protect you account. Remember it is money, hard earned money in your trading account, don't waste it on silly trades. Only plan and take the absolute best trade set ups.

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What Is Active Trading?

Stock market investing is a great way to make money. Buy shares at a low price, and sell at a higher price. What could be easier? Sadly, its not always that easy. However, understanding the markets and the terms used by traders can help to give you an advantage. While I wont cover them all here, below you will find a couple of examples to help you get started trading.

Stock options include what is known as a covered call. Where you purchase a stock and then go back in with a covered call to ensure if the stock goes down you will not lose your money. Short sells involve buying a devalued stock because it is showing that it will increase in the next while to help increase your portfolio. A sell stop is a term for placing a stop on a stock you would like to acquire. This means you will not purchase the stock if it exceeds your set price before you can attain it.

There are what we term day traders. These active traders will buy and sell stocks in the same day. They look for stocks that are volatile, which provides the best trading opportunities for the day trader. They sit in front off their computer and watch the markets, looking for the best chart set up before taking a position. Most day traders will look at the 2 minute charts, which suggests that they wont be in a specific position for long. Unless you have a lot of time, experience and tolerance for risk, day trading wont be for you.

While there are many books out there that say they can teach you how to trade, there is no substitute for experience. The problem is, its a very expensive way to learn. The key is in keeping a stop loss, regardless of the methodology you decide to follow. Successful day traders, swing traders and even value investors use a stop loss to help minimize the amount of downside risk they are exposed to. A stop loss is a set price at which you will automatically exit your position. Its up to the investor to decide if its at a specific percentage of the trade value, a percentage off the share price, or a certain level that is deemed to be support / resistance.

Other options for the beginner trader is to use online services that will teach you how to trade in a simulated market environment. This allows you to gauge not only how good of a trader you are, but also how well you deal with risk.

Stock market investing is a great way of escaping the usual 9-5 grind. Whether you are looking to invest for retirement, or invest so you don't have to work anymore, if you can trade successfully, you will be able to attain your goals. Of course, it is not without risk. With a bit of knowledge and experience, you can improve your chances of making money in the stock market.

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