Forex market?
vlady88 asked:
Iv been studying the stock market for a few months.And now i want to learn a little about the forex market.I know that like when trading stocks you can use techinical analysis and fundemental and so on.But in forex what do you use or do to know when to open,close a position or how do u even get around?Anyhelp would be nice
youcan reach me at anna5990@yahoo.com
Question posted courtesy of: Caffeinated Content - Members-Only Content for WordPress
Iv been studying the stock market for a few months.And now i want to learn a little about the forex market.I know that like when trading stocks you can use techinical analysis and fundemental and so on.But in forex what do you use or do to know when to open,close a position or how do u even get around?Anyhelp would be nice
youcan reach me at anna5990@yahoo.com
Question posted courtesy of: Caffeinated Content - Members-Only Content for WordPress
Comment by Eric Gondek
March 12, 2008 @ 10:46 am
You can use technical and fundamental analysis in forex too. The main difference between forex and the stock market is leverage. In the forex market you can get leverage up to 400:1 that makes small investments make big dollars, here’s an example.
Let’s say you have 5,000 and you want to trade in the forex market. You take and invest about 10% of that at 400:1 or $500. At 400:1 you can open up a position worth $200,000 USD. A 1/100 of $0.01 or $0.0001 move will make you $15-20 depending on what currencies you’re trading.
Now about the trading system I use…we don’t care which direction the market moves, we use negative correlating currency pairs to “hedge” our trades, when one goes up the other goes down. When one/both hit a buy or sell point, we buy or sell about 2% or so of the position. This is constantly lowering our basis in each position. It’s really a revolutionary concept, there is no analysis, no charts, no anything. The system tells you how much to allocate to each position and then gives you the buy/sell points that you plug into your account. The trades are executed automatically and you are notified by text/email.
That is why I trade on the FreedomRocks system. It takes all of the guess work out of trading, and I don’t have to sit up and watch the charts on the overnight markets. you can get more information at or by emailing or instantmessaging me.
Best of Luck,
Eric Gondek
Comment by Oliver T
March 13, 2008 @ 5:09 am
Go to and download their free realtime charting software. Unlike stocks, Forex is decentralised and so unfortunately there are no ‘true’ currency prices, at least at the retail level that you’ll be wanting to try your hand at. In other words if you opened a trading account at Oanda and a second one at FXCM, their prices would be slightly different. The brokers themselves are in effect the market makers and so you have to be very careful how you play the game. Also, one of the most important points that nobody ever talks about is leverage. People seem so keen on 100:1 or more (like our friend Mr Gondek above here), but that is fine when they tell you how much you can WIN, but remember it works the opposite way should a position go against you. My advice would be to find a broker that goes no higher than 50:1. You DO NOT ever want to get a margin call and so do not be lulled into a false sense of security by people who talk about 400:1 leverage. I am a professional currency trader; it’s what I do for a living and I can tell you now that I know of no-one who is successful that would dream about using such insane amount of leverage.
Because Forex is unregulated, technical analysis is not as effective as it would be trading stocks or commodities. It can still be used, but most traditional technical indicators need to be adapted. One of my friends in Florida uses T.A. to scalp, but I would not say it’s a good bet for a beginner. The best way that I have found is trading fundamentally. I won’t say anymore than that. You can do some work of your own.
Apart from that, heed all the usual advice and keep your stakes low to begin with or you could be regretting ever having heard the term. Good luck in any case, you have stumbled on the greatest job and greatest game in the world.
P.S.
One more warning and it MAY (or may not) apply to our friendly advertiser above, be careful of these websites promising you untold riches. They are for the most part the snake oil salesmen of the 21st century. If they really had systems that were so perfect then they’d be using them themselves solely, rather than having to set up a business and crappy sites to market them to poor unsuspecting fools off the street. Mr Gondek’s system may be wonderful, but having been at this game for quite some time, I know that most systems built on correlations - i.e. when EUR/USD goes up, USD/CAD goes down - have gone past their sell by date; especially when they are what’s known as ‘black box’ systems and from the sound of Mr Gondek, that’s what he’s offering. A black box system is one where you buy or rent software and it tells you when to trade. You are not allowed (by law!) to try and figure out what algorithms it uses. In other words, you are letting something else do the work for you. This is appealing when the websites make out they have such a high success rate. It takes out the fear factor, but it also takes out the BRAIN factor and the truth of the matter is that Forex is a thinking game. You NEED to participate and adapt to changing circumstances. Believe me, your opponents will. Just because you can’t see them, doesn’t mean they won’t. Remember that at the retail level, you are up against the brokers primarily and their little interbank network. They have people employed to try and figure out what people are doing if they are winning consistently and as they can contrive the prices, your magical system can quite easily be rendered useless.
It’s your money, invest it carefully.
Comment by Paul
March 13, 2008 @ 1:06 pm
Check the website below where the top forex trading programs have been reviewed. I feel it will definitely help you in learning more on Forex market analysis.
Hope it helps
Comment by Smart Forex Investor
March 14, 2008 @ 6:45 am
Hi Anna,
I want to warn you that 95% of people that invest in the Forex end up loosing all there money within the first 60 days. With that said if your looking for a simple and easy system that is perfect for beginners and takes the guesswork out of trading on the Forex check out my profile and feel free to contact me if you have any questions. I would suggest that you do not waste your time trying to study charts and read graphs and you definitely don’t want to spend thousands on some program that promises your going to get rich quick in the Forex. If you would like to see real results I have them and would be more than happy to share them with you. I wish you the best and I’ll look forward to speaking with you soon!
Comment by Paul U
March 15, 2008 @ 1:33 am
It is interesting that a lot of people comment on the trading strategies of FreedomRocks. I heard quite a bit of input both positive and negative so I decided to check it out myself. I knew that it was probably just a bunch of hype and I was skeptical because they have an optional business element that looked like MLM.
Well, I took them up on a 15 day trial with a couple of my forex trading partners to prove that it was bunk.
Unfortunately (or fortunately for me) it not only worked but it worked extremely well. I have been trading the FreedomRocks strategy for over three months now and I am blown away.
Don’t take my word or anyone elses. The only thing to do is check it out yourself and make your own decision. Whether it works for you or not you will learn quite a bit about the forex market and the best part is you will learn it for free.
If you have any questions just drop me a line. You can also hook up with a team of new traders at
Good luck .
paul
Comment by Charlie Mike
March 16, 2008 @ 11:38 pm
Look at a Forex Demo here :
scroll to the end