Money Making Lounge Dedicated content for serious investors. News, articles, commentaries and reviews about Forex Trading and other Money Making opportunities. Statistics Unique Visitors: Total Unique Visitors: Outgoing: Total Outgoing: 8 0 0 569

Articles from Money Making Lounge

Forex Glossary 2008-02-09 23:06:41 • Appreciation: An increase in the value of a currency.• Ask: The price requested by the trader. This usually indicates the lowest price a seller will accept.• Base currency: The currency that the investor buys or sells (i.e. EUR in EURUSD).• Bear: Someone who believes prices are heading down. A bear market is one in which there has been a sustained fall in prices and which does not look like it will recover quickly.• Bid: The price offered by the trader. This usually indicates the highest price a purchaser will pay.• Bid/Ask: The Bid rate is the rate at which you can sell. The Ask (or offer) rate is the rate at which you can buy.• Bull: Someone who is optimistic about the market. A bull market is characterised by enthusiastic and sustained buying.• Cross: When trading with currencies, the investor buys one currency with another. These two currencies form the cross: for example, EURUSD.• Cross rate: An exchange rate that is calculated from two other exchange rates.• ...

Important Forex Trading Terms 2008-02-09 22:55:04 Essential terms in the Forex business, understand what they mean.SpreadThe spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.PipsA pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”. On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, ...

Why Trade Forex? 2008-02-09 22:50:22 Forex Market presents incredible earnings for every dedicaded trader, profits in this arean climbs year by year, all you have to do is get news, be active and make the right choice.See some advantages of Forex Market:24 hour tradingOne of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.Superior liquidityThe Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.No commissionsThe fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on ...

Trade on Margin Strategy 2008-02-09 22:44:35 See how you can trade buying and selling more than amount of capital you have in your account.Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with relatively small margin deposits. This is useful since it permits investors to exploit currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have USD 10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or “gearing”). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. ...

Trading is Simple: Buy & Sell 2008-02-09 22:37:24 In any busines you can take advantage if you buy cheaper than price you sell, right? In the Forex Market it couldn't be different.A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days. ...

Overview on Forex 2008-02-09 22:34:16 Take a read and understand what is Forex Market and what's waiting for you in this business.Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market. ...

Learning to Trade Forex Keeping It Simple 2008-02-09 20:47:47 The main cause of failure for any trader is taking a simple process and by sheer force of will power making it complicated. Trading is a VERY simple business. The path to success is to STOP trying to rule base this on singular components. Example: A high volume flag means nothing. A wide bar means nothing. A historic Belief level means nothing, and so the INDIVIDUAL list goes on. What DOES mean something is to keep your analysis WIDE, that is take a global view, then play a “What if” game. Take all the components you can and then make a decision with a 51% edge NEVER tell yourself that this WILL go up or down. Telling yourself this will cause commitment to ONE side. It will build a BELIEF in you that your belief WILL work out. ...

Forex Goal 2008-02-09 20:35:39 The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free in ...

Swing Trading For Profit a Live Example 2007-05-25 13:07:09 Swing trading is one of the best ways to make money in forex trading, it's also a lot easier psychologically than trend following.It's therefore a great way to trade for novice traders. Over the last few weeks we have looked at some live examples:Banked 4 profits, scratched one trade at break even and have one open. Let's look at it and another potential opportunity.First why is swing trading an easy way to trade?When we say is easy, we mean psychologically.You get in quick with low pre defined risk and you're normally out in 2 - 5 days with a good profit.This is much easier than long term trend following, in that you do not have to wait for months and see dips eat into your open profit.Long term trend following is highly profitable but requires a lot more discipline.We personally mix the two ways of trading to gain some diversification of style and smooth the equity curve.Swing trading basicsWe normally look for important chart support and resistance and trade contrary to it.We wa ...

Forex Trading 2007-05-25 13:06:45 Forex trading, or foreign exchange current exchange trading, is a global phenomenon. This is the single largest market in the world. There are many different market sectors that are involved with Forex trading. These include, but are not limited to;" Banks" Corporations" Governments" IndividualsWhat is Forex trading you ask? At its simplest, Forex trading is currency being traded for another currency. However, Forex trading is anything but simple. The market has massive trade volume and is very fluid. Not to mention the hundreds of different currencies being traded and their ever changing value.Forex trading is a very focused area of trading, but the amount of time andenergy most people and companies spend getting trained and educated on Forex trading and its inner workings and pitfalls, is at least as much time as it takes to learn the stock market.Because of the complexity, Forex Trading is not your typical overnight success operation. There are many large corporations, such as GCI F ...