4 Ways to Learn Forex Online

Forex (or foreign exchange) trading presents small, independent investors with an exciting opportunity to make money. However, before you dive into this type of investing, it is important to learn as much as you can about currency trading. Fortunately, there are plenty of ways to learn forex online.
Learn the Jargon
As in any specialized area, the [...]

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The Perfect Forex Trading System

Many people search for the best forex trading system. Unfortunately the truth is that no trading system or strategy is perfect. All the best traders in the world have losing trades so their systems can not be perfect. So as the perfect trading system does not exit, we need to make one that is the [...]

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The Best Forex Signals

In this article we look at the best forex signals. The reality is that there are now literally hundreds of individuals and companies offering forex trade signals and forex advisory services. They often claim to have a good history at predicting the forex market.
The reality is that many of these forex predictions are very poor [...]

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Forex Trading Risks

Forex trading must always be considered a high risk way to trade or invest. The risks of forex trading are particulary high because it is traded on a margined basis. Infact some forex brokers offer very high leverage, as much as 500:1.
Forex market risks and volatility are often very high, when this is combined with [...]

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Forex Currency Trading Strategies And Systems

In this article we look at the different types of currency trading strategies and systems the forex trader can choose from before commencing their FX trading journey.
The Best Currency Trading System
There are many many different currency trading systems out there for sale, some even claim to be the best currency trading strategy ever! Unfortunately, these [...]

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Managed Forex Trading Account

Managed forex trading accounts offer an alternative investment that has little or no correlation to the global stock markets. As a result of this it can be great for a further diversifying your investment portfolio. However, it must be placed under high risk alternative investment vehicles.
However, if you have read my other articles, I am [...]

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Is It Easy to Make Money Currency Trading?

Many new traders have the mistaken believe that it is easy to make money currency trading. Unfortunately most new traders will this belief end up losing a big chunk of their live trading account. Many people do make money trading forex but it usually comes after a lot of heartache and hard work.
It is currently [...]

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Forex Scalping Technique

Forex scalping is a trading technique that involves opening an FX position and closing it within a short space of time with the intention of speculating that price will move slightly in favour of your position before closing it, for a small profit.
Typically, forex scalpers make a very large number of trades and it is [...]

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Succeeding in the Forex Affiliate World

Forex affiliate programs can translate into big paychecks for affiliates who know how to navigate the world of Fx trading. While there’s lot of competition from other Forex affiliates, there’s also tons of opportunities and commission plans that can translate into huge paydays for top Forex affiliates. Let’s take a quick tour through the world [...]

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Will Your Forex Broker Go Out of Business?

Retail forex is a fairly new business, having started in 1998, and really only taken off in 2001. Initially, many forex brokers started with little capital. As the market has matured and become more mainstream, the requirements to stay in business have become more rigorous. The NFA (National Futures Association) is increasing [...]

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Profiting From the Fall of the US Dollar

Its a fact that the US dollar is losing value against many benchmark currencies. Every week it seems that we are hearing that the greenback is falling to a new low against the Euro.
There is some bad news for the US dollar:

Trade deficit of US $765 bilion
Current account deficit of US $856 billion
Gross national [...]

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What Are Trends?

Short term FX market movement is essentially random. A Forex Trend is when average prices increase or decrease in the same direction over time, even though there may still be short term random price movement. Trend following is the basis of successful FX trading.
Changes in seasons illustrate the nature of exchange rates trends. When the [...]

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What Moves Forex Prices?

Forex market prices move constantly. This is due to the different expectations of market participants, and the imbalance between buyers and sellers. If buyers and sellers were perfectly balanced, there would be no price movement. Where there are more buyers than sellers, prices move up, and where there are more sellers than buyers, prices move [...]

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Spreadsheet Showing Smoothing Approaches

Here is a simple Excel spreadsheet illustrating the following smoothing approaches:

Simple moving average (20 period)
Simple moving average (50 period)
Median filter
Exponential moving average (20 period)

The chart shows the output for each smoothing approach against the market.
The formulas are all fairly simple, and you can adjust them if you want to experiment.
The main point is that longer [...]

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Forex Trading System Algorithms

A trading system algorithm is a series of steps that shows how the system handles entries, exits at a loss (stop loss) and exits at a profit. Ultimately, these need to be coded into a computer system to automate your trading, but implementation is independent of the actual algorithm.
In this posting, I am going [...]

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Forex Broker Scams

The small, beginner forex trader often finds it difficult to trade profitably through inexperience, or using flaky commercial systems, but some forex brokers make it even harder by helping themselves to your money, often staying within the letter of the law. This posting is to highlight some of their nefarious tricks.
Beware The Bucket Shops
A [...]

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Glossary of FX trading Terms

There are hundreds of forex trading terms that you’ll hear throughout your trading career. The following list defines the most commonly used terms:
American Option – An option that may be exercised at any time prior to its expiration date.
Ask – The price at which a currency pair may be purchased. Also called the offer, ask [...]

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Trading Mindset of Successful Trader 3

This is the final part of a three part lesson on gaining the mindset and thinking patterns of a successful forex trader. Previous sections detailed the importance of avoiding self sabotage and some characteristics of successful traders. This section deals with the actual changing of your way of thinking.
Changing Your Thinking
Now you know [...]

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Trading Mindset of Successful Trader 2

This is the second section on developing the mindset of a successful forex trader.
Taking Responsibility
Successful traders believe that they are the only ones who can influence their trading outcomes. In contrast, the unsuccessful trader believes in luck, or blames the broker or the market when things go wrong.
The successful trader does not base his or [...]

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Trading Mindset of Successful Trader 1

This lesson teaches you how to avoid self-sabotage and attain the winning mental attitude required to become a successful FX trader. This is the first part of a three part lesson. This is a very important part of the fx education.
Traits of Successful and Unsuccessful Traders
Successful traders don’t have access to better information, trading models [...]

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Forex Currency Trading Software

The last lesson discussed what to look for in forex trading software. This lesson goes into a bit more detail on types of software, and then gives some examples of available packages.
There are two basic types of software trading programs. The first type allows you to download market price data to perform technical analysis. [...]

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Ten Essential Forex Backtesting Rules

Here are the ten Forex backtesting points that are essential to your forex backtesting strategy:

Make sure that the historical data goes back far enough to provide accurate testing results under a variety of market conditions. If your data extends back only through the latest bull market, you won’t know how the system will perform in [...]

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