Now, let me introduce you to another trading technique of making it big in the Forex market and walk away with mega profits within the shortest trading time. Believe me that I have tested this technique and also want to let you know that 75% traders in Nigeria are scalpers. I really celebrated the New Year thanking God for giving me the courage to develop more on scalping as a trading strategy.
What is Scalping? Many traders don't really understand that simple word. Some even pronounced it wrongly, and if you don't understand the meaning now, you can not benefit from the mega returns that the strategy is generating in the world's largest financial market.
Scalping is a focused technique that involves making a minuscule trade to generate profit within a short period of time. This method of trading the FX market is of high probability trades with extremely small risk stops and predefined profit objectives, it is also a means of taking a million trades to make a million dollars.
There are different types of traders; "Position Traders" "Intraday Traders" and "Scalpers" A position trader could engage in trades that are intended to last for multiple days or months with huge pips target of hundreds to thousands. An Intraday trade could typically engages in trades that might last for less than a day aiming for targets of 20 to 100pips while A Scalper engages in trades that might last for few minutes and the minimum target could be 5+ pips. Pick your calculator now and calculate 5pips on a 2.00 standard lots of 5 trades per day for 20 trading days (5pips x 5 trades x 20 dollars x 20 trading days = $10,000 monthly) If all the scalping techniques are adhered to. Are you saying it's not possible! Just demo trade this for a month and see what I am saying.
A scalper normally trade higher lots size or volume depending on your account size and risk acceptance. For the fact that this technique requires a maximum Stop Loss of 20pips, you must also maintain a good equity management principle. If you could just sincerely follow the rules that I will be teaching you on this technique, you could rake in more profits to your bank account without stress compared to day or position traders.
Let me sound this warning that if your account can not accommodate the risk involved scalping with higher lots or contract value, please don't trade higher lots. Simple! Because scalping is more emotional and advanced in nature in the aspect of making a very quick decision and trade execution. Don't trade without setting your stop loss when scalping. Trading without stop loss could wipe off your account with this strategy. P-L-E-A-S-E, just follow the simple trading rules that I will be sharing with you.
Scalpers often engage in multiple trades per day. Some traders execute several trades and make profits with ease. Don't worry, I will teach you the technical know-how of scalping the market. Scalps are executed in the direction of the current trend of the Forex market. You can't run away from the fact that the "trend is your friend" if you don't know the trend of the market, don't place any order.
You could also take larger profits as this lesson is getting more technical by applying trailing stop. What is Trailing Stop? Stop Loss is intended for reducing losses where the symbol or currency pair price moves in an unprofitable direction. If the position becomes profitable, stop loss can be manually shifted to a break-even level. To automate this process, Trailing Stop was created. This tool is especially useful when price changes strongly in the same direction or when it is impossible to watch the market continuously for some reason.
The beauty of scalping is that, it allows traders to trade even when other techniques would make you sit with your PC for long without trading. Scalping is best used in conjunction with or as a supplement to other trading techniques - so keep trading your normal strategy that you are used to and add scalping to your trading toolbox.
TYPES OF SCALPING
There are three methods of scalping the Forex market which I will be teaching in this article: You could apply the EMA 4/12/63 to 15 minutes chart of your trading platform and scalp with the strategy. Alternatively, apply the one I will be sharing basically for this technique.
1. Time-sensitive trades: This comes in 2 forms: Firstly, in opening range breakouts, where a quick scalp is taken minutes before the open, in the direction of any market thrust. I revealed an important secret in the previous edition of SDE on the best trading time for the EMA 4/12/63. Meanwhile, if care is not taken, the bull back preceding the breakout of the 7:45am Nigeria time might strike your stop loss. But you can perfectly study the market; and scalp to make profits before the main breakout. And I will advise you always use your Bollinger Bands, preferably on a separate 15mins chart.
Secondly, trading to capitalize on the regular market turnaround time of the New York opening session. Infact, scalping is the best strategy to apply because something must happen. Keep your eyes also on 15 to 30 minutes to the FA release. I bet you that you would have made your target before the news. Then if the news is worth trading, trade and make more profits. Always tie this law on your neck and do not let it depart from you "make 20 or 30pips per day and every other pips shall be added unto thee"
2. Countertrend trades: Scalping when the market is silent or consolidating during the trading day. It could be the Asia session too.
3. Trend continuation trades: These methods focus on entering the market in the direction of a trend AFTER the trend has gone underway. They are also classified as retracement trades.
One of the most liquid, active and electronically accessible market is Online Forex Trading and I feel the scalping method represents the best known chances for picking consistent profits as a trader/scalper.
Oh! Getting interesting? Then I expect you to contribute, so that I can show you more ways of scalping the market soon.
Scalping is a very good trading strategy but I will like to encourage you that this strategy is not for all traders because of the emotion and risk involved. It is an advanced trading method that needs to be mastered before committing your live account. The scalping trading strategy that I will be sharing involves simple indicators; MACD and MOVING AVARAGE(s).
The MACD is an acronym for Moving Average Convergence/Divergence. It is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD default is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average, called the signal or trigger line is plotted on top of the MACD to show buy/sell opportunities.
MACD's can be used as an oscillator, does that sound too technical? No! Oscillators indicates that the asset will revert back to its mean valuation OR a Momentum indicator; indicates that the trend is strong and will continue. Parameters: The MACD line is the difference between the 12 and 26 day EMA. The signal line is the 9 day EMA of the MACD. Visually, the MACD consists of three elements, like the MACD, it is a line plotted on the bottom of the chart. The MACD line. This is simply the difference between the 12 and 26 day EMA. It is a line plotted on the chart. The Histogram. The MACD histogram is simply a bar chart located at the bottom/top of the chart, where the MACD and signal lines are plotted. The histogram is simply a visual representation of the difference between the MACD and the signal line. The "zero" point of the histogram - meaning the point where the bars cross above and below - is referred to as the centerline.
A Trade Signal is received when the MACD crosses the signal line. Traders can enter positions following the direction of the MACD Overbought/Oversold. No specific numbers indicate whether it is overbought or oversold, but if it is relatively far from its mean compared to its recent history, this may suggest that it is due for a decline. Divergence occurs when the pair makes new highs/lows but the MACD does not, this suggests divergence, and that the trend may in fact be weakening with a reversal in store. The MACD crossover is a straight-forward indicator that provides precise timing for entry points. The one drawback of this indicator is that it is sometimes too slow to provide a signal. Sometimes it signals an entry several candles after the ideal entry point. The price has already moved far enough that the trade no longer has a favorable risk: reward ratio. Always consider support/resistance when entering a trade regardless of the crossovers.
MACD is truly a trend following indicator - sacrificing early signals in exchange for keeping you on the right side of the market. When a significant trend developed, the MACD would alert you on how to capture majority of the move. Moreover, MACD proves most effective in wide-swinging trading markets and there are three popular ways to use the MACD: Crossovers, Overbought/Oversold Conditions, and Divergences.
CROSSOVERS: The basic MACD trading rule is to sell when the MACD falls below its signal line. While a buy signal occurs when the MACD rises above its signal line. It is also popular to buy or sell when the MACD goes above or below zero line.
OVERBOUGHT OR OVERSOLD CONDITIONS: The MACD is also useful as an overbought or oversold indicator. When the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions exist vary from security to security.
DIVERGENCES: This is an indication that an end to the current trend may soon change when the MACD diverges from the security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought or oversold areas.
Now, for the Scalping Trading Strategy, you will modify the MACD default by 2 deviations. And you must follow the trading rule strictly, work on your trading plan and target per trade. Preferably, 5 to 10pips is attainable with this system but once you make your target, PLEASE close your trading platform to avoid over trading, agreed and losses. Does it sound funny? You can not exempt yourself from the fact that emotions can't rule your trading strategy and plan when you over trade.
To set up MACD for scalping, subtract 2 from the default parameters i.e. Fast EMA = 12 to 10, Slow EMA = 26 to 24, MACD SMA = 9 to 7, Apply to Close. Select the Color Tab and change the color to your favorite, you could also increase the line style. Click the Levels Tab - Add the Zero line and also change the color. You could also double-click the Description space opposite the zero value and type "Center Signal" and increase the line style too. Under the Visualization Tab, deselect the "All Timeframes" and select M15 only because this trading strategy work best on 15 minutes chart and you could also try it on 5 minutes. But I recommend 15 minutes because of how emotional and noisy the 5 minutes chart is.
Add EMA 4 (yellow), LMA 10 (DarkTurquoise), LMA 120 (white), LMA 40 - 90 (red) to your trading chart.
HOW TO INTERPRET THE MOVING AVERAGES: Exponential Moving Average (EMA) 4 is the fast EMA, Linear Weighted Moving Average (LMA) 10 is the slow LMA, LMA 120 is the Trend line while LMA 40 to 90 signifies how stronger or weaker the trend of the market is. Let me quickly state here that; do not trade when the market is trendless/sideways or consolidating because the opportunity of trading is always indecisive. I believe you know that there are three types of market trend; and you should not trade against the trend because the probability of trading along the trend is more than trading against it.
BASIC SYSTEM RULES:
Buy Signal
Notice the confirming indicators: EMA 4 crossed LMA 10 upward on up trend is advisable and realistic of achieving your target daily i.e. both moving averages crossed LMA 120, then set your Stop Loss 10pips below the LMA 120 or look for the swing low. Also confirm you signal when the MACD histogram is above the 0 line; signaling upward momentum.
Sell Signal
The chart is an example of SELL signal. Notice how MACD Histogram went from positive to negative, and how the moving averages confirmed the sell signal. The EMA 4 crossed LMA 10 down. Set your Stop Loss 10pips above the LMA 120.
When LMA 40 - 90 are above the LMA 120, it implies that the market is in up trend while below LMA 120 signifies down trend. You should also watch for overbought and over sold. Do not join the traders with mentality of "it will soon reverse" at losses. Get the trend as early as possible and follow the trend to maximize your profits.
Using 15 minutes chart, 10 to 20 pips is a realistic initial profit target, especially if you are trading EUR/USD, GBP/USD, USD/JPY. Even the other major currency pairs should yield this much on a properly measured signal.
TRADING PERIOD FOR THIS STRATEGY: Always watch out for good trading opportunity between 7:45 am NG time to 11:45 am for morning trading session, while 1.00 pm NG time to 3.45 pm is advisable for afternoon session.
TARGET: The purpose of scalping is making small profits while exposing a trading account to a very limited risk, which is due to a quick open/close trading method. I will advise you go for 10 pips plus spread per trade and demo trade this strategy for a month before going live with it. You could even go for 5 pips if you notice that the market is almost at it peak.
HIDDEN SECRETS: An additional advantage for traders technically is when there is no major news affecting the market. You will always see a clear trend for the day. When trading using technical indicators, make sure you know when the news is going to be released so that you can position yourself. i.e. close your trade 10 to 15 minutes before the (FA) news. Then 15 minutes after the (FA) news, you could trade.
You are already at the top!
Taiwo Balogun
http://www.fxlebconcepts.com

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?
This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.
Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.
Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments. The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.
Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.
Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.
Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.
Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.
No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.
Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.
The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.
Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.
Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.
Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.
Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.
Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.
Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.
Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.
Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.
The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.
Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.
Focus - Fantasising about possible profits and then "spending" them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.
Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.
Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.
Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.
The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.
Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.
Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.
Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.
Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.
Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.
Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.
Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.
Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).
One cross is all that counts - EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EURUSD looks good to you, then just buy EURUSD.
Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.
Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.
Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.By John Gaines
John GainesA veteran of online trading, John Gaines offers the financial services industry his perspectives and expertise on a variety of trading systems and financial instruments, ...

As a new currency trader, one of the questions you might have when you start looking at this market is ' what am I actually buying or selling?' The short answer to this question is nothing! The retail FX (FX =Forex= foreign exchange=currency) market is a purely speculative one and no physical exchange of currencies ever takes place.
exchange=currency) market is a purely speculative one and no physical exchange of currencies ever takes place. All trades exist simply as computer entries and are netted out depending on market prices. The reason the market is in existence is to allow large companies and financial institutions to trade huge amounts of currency easily. These constitute approximately 20% of transactions. The remainder is speculators like you and I simply trading on rate movements! You must also appreciate that the market is unregulated - it regulates itself!
The leverage that is offered in the currency markets is extremely high for the simple reason that if you traded with real money, most traders would not have enough cash to allow sensible trades to be made. The smallest movement is a 'pip' and on an amount of 1000 US dollars, a 1 pip movement would yield 10cents profit (or loss). Now bear in mind that a 100 pip movement in a day is a reasonable size move, so you could stand to make 10$ on the day. This hardly sets the pulses racing!
In order to overcome this problem the currency brokers offer leverage to allow you to trade at meaningful levels. These vary from 1:50 up to a suicidal 1:400 which means that for 1000 USD in your account you could trade 400,000 USD in the market (this is equivalent to $40 per pip movement) so for a 100 pip movement in the wrong direction, you would have lost 4,000 USD. With only 1000 USD in your account you would have received a margin call or been closed out by the broker - not bad for one day's trading!! This is why currency trading is such high risk and only for experienced traders.
One of the unique aspects of the currency market, is that we do not have any volume to assist us in our chart reading, so your candlestick analysis has to be excellent, as you will need to forecast price movement purely from the candles themselves.
Now - a quick lesson in currencies. All major currencies are traded as a pair such as GBP/USD or EUR/GBP. Each currency pair has its own chart and as you would expect there is a spread between the two currencies. This varies from broker to broker, as does the leverage. Another unique aspect of currency trading is there is no commission! Suppose you think the GBP/USD pair is moving up in price (the dollar is weakening against the pound), then you might decide to go long the UK pound. In buying the pound you are automatically selling the dollar. Every pair has a 'pip' quoted price - this is normally 2, 3 or four decimal places depending on the currency. For each pip movement you would gain or lose 1USD. If you wanted to sell(or short ) the GBP/USD you would sell one contract instead. It really is this simple. Naturally there are other aspects to consider such as fundamental data, etc. but in essence that is really it.
Unfortunately, this simplicity belies the risks and dangers involved thanks to the leverage required to make a meaningful trade size. Just as in online poker, it is very easy to open an account and to start. The typical cycle goes something like this - new trader rushes in full of confidence and optimism with small amount of money - opens large position with huge leverage and is wiped out very quickly. Having learnt lesson one, they then return some time later, with a larger fund and trade much smaller size lots ( contract sizes ) until they have built up experience. They may or may not succeed. I did much the same myself, but was lucky. I rushed in and opened six positions all of 10 contract size. I was therefore trading 600,000 USD in a world market running to trillions, with no previous experience and no plan. In a few hours I was 2,500 dollars negative. I sat up all night and watched the positions move ever lower through Asian trading. Quite why I sat up all night I have no idea - I probably thought I could influence the direction by the power of positive thought! To cut a long story short I managed to close out at a profit of a few hundred dollars the following day. I was lucky - you will probably not be so fortunate. If and when you come to this market, please learn from the above. The main reason most people fail at currency trading is from under-funding. Because you can start with a very small amount of money( and trade large quantities) this is what most people do - they quickly lose their money. The only reason I survived was because I had over 10,000 dollars in my account. In my opinion the minimum you should start with is $5,000 dollars and preferably $10,000
All brokers offer a demo account for you to practice your trading skills. However, I do not believe they add any value whatsoever. It is only when you start trading with real money, no matter how small, that you start to learn and develop your trading style.
About the Author
Anna Coulling is a full time currency trader and investor, who specifically helps women to understand the financial markets. All the information on her web site is free. .For further information and details please click on the following link : http://www.making-bread.co.uk

How can you ensure you are selecting a forex trading platform that can best meet your needs, bearing in mind that an unsuitable trading platform can be disastrous to the way you trade and in fact to the eventual trading outcome- whether you are profitable or losing money in the trades?
Irregardless of whether you are just beginning to trade and are looking around for a suitable forex trading platform, or whether you are already trading, but would like to review the suitability of the trading platform, here are 6 selection criteria that can be used to determine the suitability of the forex trading platform.
1. Timeliness - Is the forex trading platform a high-edge system that employs the established but highly sophisticated technologies in order to provide you the real time, up-to-date quotes? This is very important, as a real time streaming quote platform will allow you to check your account and positions in real time, and more importantly 24 hours a day, as forex trading never ceases. With real-time information via the trading platform, you as a trader can be in full control of your funds whenever you wish.
Some brokers also slow the execution of the orders. This is really a big issue as this will impact negatively on your trades because the rate of the currency pair would change during this period of time, causing you to enter the market at a different rate than the rate you wanted.
2.Easy to Use software- Preferably, no software download. Look for a platform that enables users to start deals immediately, without the need to download proprietary software, or to spend weeks to learn how to use an unwieldly possibly outdated system.You should not have to install any software on your own computer, and you should be able to log in from any computer that has an internet connection. There are also desktop solutions or trading platforms, but unless they allow you real time information and the ability to be in control of your trades, they are not desirable.3.Trading Rates - Some preferred trading platforms have a freeze and trade system involving a "freeze-the-rate you see" for buying and selling for a few seconds, irrespective of rates movement. This means that the rate you see and freeze is the rate you get, and there is no lag that can cause you to lose out due to fluctuations and lapse of even a few seconds.
4.Easy Money Deposits - Are there easy mechanisms for payment of money deposits into your account and are these immediately reflected in your trading account? Some preferred trading platforms allow you the possibility to make money deposits for margins and pay premiums using credit card, so that you are not hindered from making physical deposits, or have to attend to make deposits at your local bank.This is a real time saver and allows you to trade immediately without delay after a deposit or payment has been made.
5. Competitive Spreads: Currencies, unlike futures and stocks, are not traded through a central exchange. Thus, the spread can be different depending on the broker. Some brokers adopt a variable spread, which might appear to be nice and small when the market is quiet, but when things get busy they can widen the spread which means the market must move more in your favor before you start to make a profit.This makes it harder for you to be in profits. So always check this out before selecting such a trading platform and broker. Fixed spreads built into the trading platform is good for you especially if you are using stop loss in your trading strategy because if the broker changes the spread according to prevailing market conditions, you may find your trades hitting their stop levels where they should not!
6. Technical Support- The forex market is a 24 hours market, and your broker should provide 24 hours support for the use of their trading platform. Ask questions about their support because some brokers may not give equal support to retail clients as compared to institutional clients.
As you go over this checklist of criteria, always bear in mind the broker and the trading platform should assist you to eliminate or reduce risk of trading while allowing you to maintain control over your funds in real time. Spend time to check your trading platform to be used, and you will not regret it later.
About the Author
Need help to reverse those difficult losses that are bleeding your trading account dry? Discover powerful tips, trading techniques and lesser known secrets - including the best forex trading platform - from the author's blog http://1forex-trading.blogspot.com

Home-based businesses are gradually gaining popularity and the best reasons behind it are simple: you can set your own hours, do what you love and still earn a substantial income. Among the many home-based businesses today, the majority are focusing on online business activity. The most popular are affiliate marketing, IT and web services, selling on ebay, and blogging. While these activities require a lot of time and effort, there's one excellent home-based business that many seem to shun because it's commonly believed to involve a lot of mathematical skills. This amazingly profitable business is forex trading.
Forex trading is the specialised field in which you buy one currency and sell another. Whether it's referred to as forex, foreign exchange or just FX, it all means the same thing. The global foreign exchange market is worth over 3 trillion US dollars and is extremely large in comparison to the combined world markets of stocks and bond trading. The forex trading market is based on speculation, rather than actual commercial requirements.
The huge growth in today's foreign exchange trade is because of the internet. With the internet's growth, instant communication has reached new levels and this is very helpful for the forex trader. Exchanging currency values depend a lot on the 'spot market', which means you fix a value immediately and arrange for the trade then and there, based on the current market potential. With instant, real-time communication, online trading has become the next generation standards of forex trading. This is, perhaps, the most sound reason for starting a home-based business in forex trading.
Since online trading is perfectly acceptable and all current traders favour immediate trading activity, your forex trading home-based business will flourish quickly. If you are unfamiliar with forex trading, there are many free online tutorials to teach you the basics. Once you've mastered the techniques and learnt all the nooks and crannies, you'll be unstoppable. Also, there are many robot trading software applications, which take on the hard work on your behalf. These online trading software monitor the market and does analytical speculations for you, saving you lots of time and effort. As a home-based business, online trading is a profitable market and combining this with the immense potential of forex trading gives you a limitless earning possibility.
There are three excellent reasons to consider forex trading as your home-based business.
Convenience - There's great convenience in the forex trading business, because you can set your own times for sitting down and conducting a few trades. As mentioned earlier, online trading robot software can take care of all the monitoring and speculating on your behalf. The main operative points are in New York, London, Frankfurt, Syndey and Tokyo, which means the market is open 24-hours.
High Liquidity - The currency trading market is not governed by a central exchange, unlike stock trading. So, forex trading is considered as an interbank market, which simply means the trading is done within a few hours and is based on over-the-counter rate tendencies.
Low Operative Costs - Probably the best reason to make forex trading your home-bases business, it costs very little to make a single transaction.By Andre Maier

I'm going to share with you some tips for trading forex the smart way. This is a great market place to get involved in because you are in the potential of making great sums of profit all from home. That's not to say it's easy, but you're given an opportunity to build your own wealth and not rely on your "boss" for it.
Demos: A lot of experts don't recommend this, but they have forgotten what it was like when they were new. As an expert trader making huge sums of money already, a demo account really isn't going to help you. If you're new or someone that isn't make that much profit a demo account can really help you get your head straight. The first thing it does is allow you to properly learn your trading platform for optimum use. Secondly, it allows you to develop those routines that lead up to trading. These routines are the things that make you the profits. Lastly, it allows you to test strategies out without the fear of losing your money.
Emotion: Emotion is your enemy in this business. You have to recognize what emotion is meant for. It is designed from primitive human caveman. Your emotions came out as a way of protecting you. You felt fear and anxiety as away of allowing yourself to survive. Those emotions aren't going to help you when you're trading.
Software: All the big trading firms and banks have software, so you should too. It can make the process of trading a lot easier and allow you to do more important work.By Tyler Ziggler

A trader can enter into a forex market only through an electronic communications network referred to as forex brokers. An account should be created with a registered broker to get access to the marketplace in which currency trading take place. The reliability and reputation of a forex broker causes the dangers of forex trading. The currency trader should check the reliability and reputation of the brokers before they get in trade with their assistance. The unpredictable and volatile nature of the market makes it more complex to avoid risks even if you choose a genuine broker.
There are many dangers of forex trading that can be directly traced from the market pulse. The fluctuations in the rate of currencies over a trading period can result in substantial loss for a trader. The changes in rate of interest of two countries in a currency pair can result in serious variation from the expected calculations. Another type risk that occurs commonly is known as credit risk, when one party in a transaction not honoring their debt when a deal is closed. Credit risk can be avoided by verifying the credit worthiness of the other party before a transaction is closed. Governments associated with foreign market may sometimes limit the flow of currency due economic factors of that country. Holders of such country's currency will be affected adversely.
Forex market offers leverage or margin trading by which a trader is not required to put up the full value of the position. Dangers of forex trading show that an increased leverage will increase your risk. A forex trader approaching the market aggressively uses many different methods and strategies to earn more profit. The traders gets overloaded with contrasting information making it tough to decide when you know enough to enter or exit the market with confidence.
A professional trader with all the technical or fundamental skill also faces the dangers of forex trading. Forex market has to centralized management system and has many aspects that are out of the control of the trader. There are millions of traders in the forex market, playing small to big games. But no one has the monopoly of the market and cannot be controlled even by the governments.By Arturo Ronzon

Learning to trade forex seems simple ands easy on the surface, but all the successful people who have spent time learning to trade forex properly will tell you that there's much more to it than meets the eye. They are only partly right.While you are learning to trade forex, bear in mind that you are embarking on an activity that has a daily turnover on average of between $1.5 trillion to $2.5 trillion. That's a lot of money! One billion is one thousand million, and a trillion is one thousand times that again. There's a lot of money to be made, so learning to trade forex is certainly a good skill to have.Forex is an acronym for foreign exchange. Forex trading continues day and night without a break; as one market closes, others open and this keeps going on and on all over the planet.Trading is done on the differences between currencies and is always done in pairs. You can trade the American dollar against the British pound, or the Japanese yen against the European euro, or any of the other world currencies.Learning to trade forex properly does not mean jumping in and trying your hand. You will probably lose everything with a method as poorly thought out as that. There are three attributes that you must learn to employ to have any chance of being successful: patience, discipline and simplicity.Trading in forex has risks, big risks sometimes. For this reason the online forex companies offer you the chance to trade with a demo account. This is exactly the same as the real thing, but no real money is involved.This kind of training is invaluable. This cannot be stressed enough. Practice on demo accounts for as long as it takes for you to consistently make profitable trades. There will be some losses of course, but you must get to the stage where you are profiting more often than losing. Then, and only then, consider trying to trade for real.If you keep it simple, discipline yourself to only trade a low percentage of your overall trading amount, and have the patience to see slow but steady profits, then you will have gone past the learning to trade forex stage and have entered the realm of the sensible and usually successful trader.The foreign exchange market, also known as the forex or FX market, in the form that we know it was established as recently as 1971. Prior to that there were the fixed currency exchanges.Trading in foreign exchange is conducted on a twenty-four basis for five days of the week, every week. It is a global currency market, though the big three of the US dollar, the Japanese yen and the European euro tend to dominate. Learning to trade forex is therefore something that's not limited to certain times. The market is active constantly during the working week.Currencies are traded in pairs and are identified by three letters. The first two letters usually identify the country involved, and the third letter identifies the currency of that country. For example, USD is the American dollar, JPY is the Japanese yen, and GBP is the British pound. Learning to trade forex is not difficult if you don't let it be so.Copyright (c) 2008 Steven Magill

If you are not making as much money as you would like from your forex trading or want to get a great tip before you start, learn this simple rule and make it part of your forex trading strategy for bigger profits...
The rule is the 80 / 20 rule and it applies in many areas of life and that includes forex trading. This simple rule states that 80% of your income comes from 20% of your efforts.
Its used in business for example, where 20 % of clients very often give 80% of the income - so how does it apply to forex trading?
Simple - cut your trading frequency to high odds trades only!
Many traders take to many trading signals - but there is no correlation between how much you trade and your profits. Your judged on the accuracy of your trading signal and that's it.
The fact is the big forex trends and high odds trades don't come around that often.
For example, I know traders who trade less than 12 times a year yet make over 100% annualized gains.
These guys are not looking for 20 0r 30 pips there after 1,000s.
FACT
The big profits come from the big trends, that last weeks, months or years and if you want to make money, focus on these not the low odds trades.
If you consider how many people day trade and try forex scalping you will understand what I mean.
These are lots of low odds trades and day traders and scalpers lose. They try hard and lose, sad but true. On the other hand the patient trader who hits high odds trades spends less time on his or her trading - but makes a lot of money.
Never confuse how frequently you trade with how much profit you will make.
Take high odds trades only, show patient and you will have higher profits, with less stress and spend less time on your trading.
Long term trend following is the way to make money don't trade often but aim to make a lot when you do, understand this and you can enjoy currency trading success.By Monica Hendrix

Effective forex trading is an important skill in the currency markets. Many new traders have failed in forex trading because of many reasons. They failed to see that forex trading needs you to learn the basics first before you try your luck at the market. Others, because of greed and excitement over their luck and winnings they experienced during their early trades, begun to get careless in their trades that resulted to bigger losses for them. Others, who would want to just play it safe and earn little profits, succumbed to their deposits being eaten away little by little until they realized that they already have zero balances. Beginners should be well advised to study first effective forex trading before doing their actual trading.
In as much as many of you would want to know how to trade effectively in forex as beginners, here are some pointers that you can make use of.
1) Believe in your own self that you can do it
Do not waste your money buying sure fire forex money making tutorials. You have to ask yourself before buying them why will they sell it if they have discovered the formula to make them rich in forex trading for a measly sum of 49 dollars? Surely, they are not doing this to make everybody rich. What you should do is study the market in your own and observe the trend. Trade very little at first and do it cautiously. Observe your trading and list them down carefully.
2) Find a system that works
Through your observation, you can develop some systems for your trades for a more effective forex trading. Implement your system and try to adjust if there are some flaws that you can notice. Once it will be working to your advantage, stick with it. Do not try to device some other methods when what you have is perfectly working for your advantage.
3) Do not go overboard with your leverage
This is the usual pitfalls of new traders - they over leverage themselves out. As a beginner, you have to limit your leverage to just enough amounts to cover small trades. You are just in the process of testing the waters, so don't rush it, because you might drown. The usual problems with beginners are that they would want to win big immediately, not realizing that they can also lose big in the process. So, take it slow when it comes to leverage.
4) Use Stops. They were designed for your protection
Don't ever think that stops are not for you because you are winning. Use them according to your strategy. Let logic be your guide and not your emotion. You can push your luck but only to a limit. Trading with stops can make you relax. Using stops is another way of effective forex trading
5) Doing your trading the simple way, is the best way
Effective forex trading is not a complicated thing, as others would think. It is simply a matter of correctly ascertaining a certain combination of currencies to buy or sell. There are traders who think otherwise and end up paying for a number of technical mumbo jumbo reading materials only to end up as losers. Many successful forex traders simply do their trading through currency movement observation and basing their trades on their past experiences.
6) Restrain your excitement in winning and don't be emotional in losing
A trader should not let his excitement over his winning and emotion on his losing get the best of him. To have an effective forex trading, a trader should know how to calm himself. Otherwise, his focus and logical reasoning might not work to his advantage. You can be hurt both ways if you do not restrain yourself. Excitement over your winning might lead you to aspire for a bigger target that could wipe you out if you lose. Being emotional on your loss, might tend to make you crave to go on to recover your losses only to find out that your deposit has been wiped out.
7) Learn the basics, observe, play it simple and be calm
To be successful in forex trading, you have to learn the fundamentals first. Effective forex trading would involve learning the basics like the many terminologies used and methods of trading. You have to immerse yourself thoroughly on this. Observation of movements and its causes from your previous trades will enable you to create your own strategy for your trade. Do not mind or buy others stuff that promises instant success in your trading. And play it simple. Finally, your attitude in trading will make or break your future as a forex trader. If you want to succeed, trade logically. If you want to fail, trade with emotion.
Peter Flemming is a professional Forex Trader and is a staff writer for TradingProfits.org a website about learning forex trading and trading education. Download a copy of informative and free forex ebook today!By Peter Flemming