Archive for the ‘Currency Trading Strategy’ Category
Buying or Selling/Long or Short, What’s that Mean? | Forex Advice for Beginners
January 29th, 2009
On forex, buying long or selling short or any kind of these terms sounds not familiar for you when you still beginner on forex trading. You must learn about the meaning of these terms because it’s a basic concept for you before entering the forex trading. And here is an explanation about all of these terms,
Short Trading - The ‘Long’ and ‘Short’ of Trading
I wish that people would more readily know that you can make money in the markets despite whether the markets are moving up or down. You can take a traditional, common approach to trading, that being, buy low and sell high. BUT, you can also flip-flop that method of trading and sell high then buy low and make money the same way. Now, you are trading! The market moves up and you collect. The market moves down and you still collect.
Long Trades - Short Trades
The doom and gloom of the economy has people worried especially those that actively trade. When I hear people talk about how badly it is performing, I tell them that a lot of people made tons of money on the downward slope it has been taking. They always respond, "yeh, cause now they can get in at a low price and make money on the ride back up". I try to tell them "no, they actually made money on the way down too". That’s when I lose them in the conversation and the subject changes. So let me try to explain this concept.
Long Trading; Buy Low - Sell High
The words "long" and "short" have nothing to do with a time frame when we are talking in this respect. A long position (also stated as ‘going long’ or ‘long on stock xyz’) simply means that you are in a trade that you entered into at a low point and want the price to go up to make money. Long means you bought low to sell high. A long position is the traditional way to trade. It is the way most people understand and it is also the way (the only way) most people think that you can trade or make money in the stock market. It is less risky than taking a short position due to the fact that the market has a natural propensity to move upwards.
Short Trading; Sell High - Buy Low
Short positions mean just the opposite as a long position but you make money the same way. You enter the trade at what you think is the highest price in anticipation for a downward move. To enter the trade, rather than buying low and selling high like in a long position, you enter the trade with a ’sell’. Once the price has moved down to a place where you would like to take your profits, you then exit the position by placing a ‘buy’ order. The buy order takes you out of the trade. Besides the markets’ propensity to move upwards, there is another pitfall to taking a short position. You see, when you trade with a long position and the market moves against you (it moves down), theoretically, it can only go down to zero. On the opposite hand, if you are in a short position and the market moves against you (it moves up), there is no ‘zero’ point. It can move against you to infinity - thus, you can lose all your money plus possibly even owe your broker. So be careful when taking short positions and understand it very well before attempting one.
Summary:
Let’s look at it again to summarize.
Long = Buy low and sell high = make money
Short = Sell high and buy low = make money
Here is a video about learning what long and short position mean on forex trading, just watch it.
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Introducing Forex Brokers : Advice for Better Trader
January 22nd, 2009
Forex broker advice is going to be all about how much money you should invest, why you should consider Forex investing instead of stocks, and Forex broker advice is going to be based on solid business decisions that will help you learn the foreign investing world. Forex trading allows you to consistently predict which direction the market is heading on days when financial news is
announced. Well a forex simulator works in a similar way.
Fortunately, more and more information is surfacing about forex, making it a great time to start doing your research. At the same time, convenience is a key factor, as anyone can trade at any convenient time with a web based trading platform provided free by his forex broker. If you think that only economic issues influence the price of currencies, you are quite uneducated in the workings of the Forex market.
Be careful with the amount of leverage you place in every forex trade you make. Learning to trade Forex is a participation activity. Now the world of forex trading and the large potential profits that can be realized from it are open to all investors if they simply have a home computer and access to the Internet.
In the last article of forex trading tips, I said something about being ambitious yet humble. Start now by reading more about where you can find a Forex systems broker, and then determine which company you want to deal with. Ihave traded for over 23 years and tried just about ever system out there and the fact is:When trading FOREX, simple systems beat complicated ones, as they are more robust in the face of ever changing market conditions.
New Forex traders might be thinking of looking for a reliable Forex signals provider. Forex Day Trading Training Tip, don"t listen to anyone else about Forex day trading unless they are proven to be successful Forex day traders. Following the principle of ‘buy low and sell high’ forex trading allows traders to generate outstanding profits.
These are, among others, the most important factors that influence the success rate of Forex traders. When using a FOREX signal provider, they usually send you their trading signal through charting software, e-mail or SMS. This allows FOREX traders to make huge profits with minimal investment.
Hang out on the same forums you used for determining the broker you chose, ask questions and read through the Forex trading systems and strategies that others have posted. Trading on the forex market has proven preferable for many, for a series of reasons. Forex, as it is today came about in the "70s with the introduction of free exchange rates.
Fortunately, most brokers on the Internet allow you to practice trading with play money so that you can experience what it is like to trade Forex without risking any real money. Forex can make you a lot of money with moderate risk but it will become like a casino and the odds will turn against you if
you play too often.For a great and proven Forex strategy you can visit my website at http:// jerauja.googlepages.com/forexblueprint.
About the Author/Author Bio
My name is Jerau Adderley, you can visit my website at http://jerauja.googlepages.com/forexblueprint
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Tags: forex introducing broker, global forex trader, introducing forex brokers | 
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