Identifying Qualitu Forex Markets

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By: Terry Allen
If you are trying to detect a new trade that possesses a good profit potential, then you have to understand that your selection process must satisfy certain criteria. For instance, your new potential trade must have both a high profit potential and low degree of risk.
You are well-advised to evaluate these requirements before you even consider opening any new positions. You will discover that the more effort and attention that you apply to assessing the potential quality of each of your new trades, the better chances you will have of attaining both success and profits.
As such, you need to acquire a good understanding of your selection criteria. You must as a top priority seek new trading opportunities with low levels of risk. Your own psychology will partly determine the amount of risk that you are prepared to take. In fact, there are two main factors that you will need to consider. They are the size of your account balance and your ability to deal with uncertainty. You should utilize a good money management strategy to help you determine the best solution for controlling risk.

Always remember that you must never risk money that you can ill-afford to lose. You must concentrate your efforts on assessing this risk factor in the most professional manner as possible before even considering opening new positions.

As you become more experienced at Forex trading, you will find that the best trading opportunities will always provide you with the optimum reward to risk ratio. However, how do you locate them? You can achieve this objective by painstakingly researching into the performance of your trading strategy using extensive demo testing.
If you do not possess a trading strategy, then you are well-advised to design or acquire one. At the end of each sequence of testing you must evaluate the performance of your strategy by determining its reward:risk ratio and expectancy value.
You will then have a professional means of determining how well your strategy is at identifying the best trading opportunities. After you have successfully achieved this goal, you will be in a much better position of capturing trades that exhibit both high profitability and affordable levels of risk.
Another major factor that will contribute to your risk levels is the amount of time that you can afford to monitor your Forex trading. For instance, if you do not have a great deal of time at your disposal, then this will certainly affect the quality of your Forex trading decisions. Under such circumstances, you should definitely not consider intraday trading in any shape or form because you will only lose money.

You should also realize that if you risk more than you can afford to lose, then you will subject yourself to undesirable amounts of tension that can directly influence the quality of your trading decisions. You must always remember that if you do not fully comprehend all the features of a new trade, then you are well-advised to reject it and seek other opportunities.

Ready to trade with a top tier Forex broker? Learn about AvaFX in a comprehensive AvaFX review, or FXCM in our detailed FXCM review, to see if these Forex brokers are right for you..

Forex Trading IFX Markets

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IFX Markets offers 24-hr Foreign Exchange trading to hedge funds, money managers and self-traders. The company is headquartered in Boston, Mass., with other locations in China and London.

IFX Markets offers a wide-ranging trading experience. Traders can trade among 27 currency pairs, with 2 point spreads on both EUR/USD and USD/JPY, and 3 point spreads in other major currencies (GBP/USD, USD/CHF).

Sign-up is easy and efficient, with quick (within a minute) email confirmation. You can use one of 10 currencies to fund your account, but must start with at least $500, which is much less than some other popular FOREX sites. You may use a bank check, but it may take up to five business days for some checks to clear.  For deposits above $15,000, you must use a wire transaction. Unlike other sites, there was no clear information on using credit cards to complete transactions.

A minimum transaction size is 1 lot, or 10,000 of the base currency. An account with a margin deposit of 1 percent would open a US$10,000 position and would require an initial margin deposit of US$100.

With IFX Markets, you have the latest trading information at your fingertips. Through the online platform, you can execute trades directly from real-time streaming bid/ask quotes. Live prices are continuously updated via a trading software and you can at any time click on the current bid or offer and instantaneously execute a trade.

IFX Markets does a good job making its information accessible to everyone:  The platform is available in 14 languages, and the website itself in eight.

You can practice trading with a free demo account which is available in windows or java.  If you have additional questions or concerns, you can access the site’s user manual that walks you, step by step, through making transactions and reading the site. The manual uses both narrative and illustrations to clearly demonstrate how the site works.

The site also includes a comprehensive economic calendar to help you make your trading decisions. It lists events such as reports on U.S. existing home sales, retail sales, etc.

Executing a deal via the Internet is a simple, two-step process. Simply enter the number of lots and then click on the bid (buy) or offer (sell) for the currency pair you wish to trade - your deal is automatically executed. The dealing software automatically calculates the initial margin requirement based upon the notional amount of the deal, and if sufficient funds are available in your account, will accept the transaction. Deals are confirmed online, normally within one second, and the system instantaneously updates both your open position and calculates your current floating profit and loss.

The dealing platform provides sophisticated order entry and tracking. Orders may be entered at any rate - inside or outside the existing spread - using the following orders types:
• Market Order
An order based on a current market price.
• Limit orders
An order with restrictions on the maximum price to be paid or the minimum price to be received.
• Stop Loss orders
Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.
You can also place orders via telephone:
To get an idea of where your account stands, you can access your account statements at any time.

To withdraw funds or close an account at any time, fill out and sign the Withdrawal Form. Requests to withdraw funds will be processed in two business days.  For withdrawals of more than $25,000, IFX Markets deals with wire transfers only.

Learn to Listen to the Forex Market

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You should find that most of the technical features of Forex trading are straightforward, if not simple. All you need to do is analyze a few charts, select an open position and click your mouse. You should be able to learn most of the relevant functions of Forex relatively quickly and with ease.

If the fundamentals are relatively simple to understand, then what is causing so many traders so much difficulty? The answer is the way that you interpret and act on the data placed before you. In other words, you may well be experiencing problems, like so many others, formulating the correct trading and money management plans. You may find it hard choosing the right decisions if you have not developed the correct blend of patience, knowledge and confidence to enable you to do so.

Many experts will inform you that 90% of the actions contributing to successful trading are centered about your mindset. This is because you are constantly battling with your inner thoughts in order to select a consistent set of high quality trading decisions. If you are not able to control your emotions, then your chances of trading successfully will be severely reduced.

You will need to develop a type of mental nirvana that is free of disturbing sentiments that can constantly derail your train of thought. The three major negative influences are considered to be fear, greed and your ego.

If you have ever experienced the debilitating fear associated with enduring strings of consecutive losses, then you will know how hard it is to pick yourself back off the floor and match on. Afterwards, you become frightened that no matter what you do Forex is here waiting patiently to pounce on you. Some traders claimed that under such circumstances, they become paranoid believing that Forex is persistently stalking them. Fear can be a heavy weight to carry on your back.

Greed is another powerful emotion that you must keep in check. The problem is that you will no doubt have access to extensive leverage that can be as high as 400:1. Such a facility allows you to open positions of consider worth with just a small deposit. Consequently, many traders become overwhelmed with the thoughts of substantial profits that they can achieve if they can just make a couple of big wins.

However, this mentality is badly flawed because if you adopt such an approach, then you are overlooking the considerable downside risks. You could then start over-trading placing your own equity in considerable danger. Always remember that novices think of profits first whilst experts analyze risks first.

You cannot afford to possess any ego when you are trading Forex. You cannot out-think this market and you must not let any preconceived ideas influence your trading decisions. Keep in mind that the colossal Forex daily turnover is the summation of all the transactions performed by its enormous number of trading participants. In comparison, you are just a feather in a hurricane. Let the market speak to you and not the other way around.

This content brought to you by Dailyforex, an online Forex trading portal.

Leading Forex Indicators

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There are two types of indicators. There are lagging indicators and there are leading Forex indicators. When you want to know the likelihood of the direction of a market one or two bars ahead of time, you are going to have to rely on leading Forex indicators.

Being a step ahead of the game is an advantage any Forex trader would enjoy. It is not just about jumping into a trend and riding it out. As has been said many times, nothing in the Forex market goes straight up and nothing goes straight down. Getting a jump on leading Forex indicators will give you an idea as to when a market is likely to turn. It's always best to get in on the start of a reversal than to try to catch up. If at all possible, you want to avoid leaving money on the table.

Basic types

When dealing with leading Forex indicators, you will hear talk of basically three different types. There is the Relative Strength Index; Stochastic; and Parabolic SAR. If you do a fair amount of research you'll be able to find others as well, but these are the most common and the ones you'll come across most often.
The stochastic and Relative Strength Index are built to determine if and when a market has been overbought or oversold. When these things happen in any market you can expect a reversal. Much of this has to do with simple profit taking. Particularly with the big banks and financial institutions, once they start to sell off (or buy back) in order to secure profits, you can expect many in the retail trade to do the same. This is naturally going to determine a change in direction of the market.
This may not cause an all out reversal. It may just cause a minor retracement, but nontheless, more often than not it could trigger off a move you don't want to get caught in if you're on the wrong side. Being aware of the leading Forex indicators may not get you into a trade, but it could protect you by getting you out of a trade, which can be equally important.
As for the parabolic SAR, it will not be showing you whether the market is overbought or oversold. It is designed to signal to you whether the market has changed its trend by placing a dot below or above the candles. This is an important warning signal in itself. In essence, the Forex trader doesn't care why a market is doing what it's doing; he just wants to know ahead of time what it's going to do.

The down side

If these methods were fool-proof, everyone would have them and everyone would be following them. What continues to make the Forex market remain interesting is the unknown. There are times when the leading Forex indicators can be misleading. If there is some fundamental news coming out, or a news flash, or any number of things that can happen during the day, the indicators may put out a false signal, and when followed blindly, can cost the Forex trader some money.
Be careful. Like everything else from your technical charts to your fundamental news, the leading Forex indicators should be used as just one tool. Your ever present stop loss order is there to safeguard even the most tested method of trading.

Need a new Forex broker? For a fun, social trading experience, check out eToro by reading our eToro review, or for a Forex broker with helpful conversion tools, try Oanda and its unique Oanda currency converter. Let us help you find a broker that offers the services you need!

FXCLUB Review

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Forex Club is a Forex broker that impressed me on almost all fronts. The first impression one gets from Forex Club is of course their website. The site is as clear and easy to use as any Forex website I have ever encountered. Any and all information a Forex trader needs from his/her broker is immediately accessible from the Forex Club home page in a clear and simple fashion.

However, as the saying goes “Never judge a book by its cover”, so I didn't. I delved into the depths of the Forex Club offering and they have all their bases covered. The registration and deposit process could not be easier with support for credit card, online checks, bank wire, and money order. OK, maybe it could have been a tad easier had they supported Paypal, but given all their other advantages, I am willing to overlook this.

Forex Club claims to primarily target novice traders based on the content of their home page, as well as what I was told by the broker themselves. However, their advanced platform and trading tools should not go unmentioned. As I stated above, they covered all their bases with a downloadable platform for Forex beginners, an additional downloadable platform for Forex experts, a Web based platform, as well as a mobile platform for both Windows based phones as well as PDAs.

In terms of the actual trading, Forex Club offers an unlimited demo account, as well as a mini account, which enables you to start trading with as little as a $10 initial deposit. They also offer no spread trading for non profitable trades, something I have not seen with other brokers.

Forex Club is NFA regulated, which means you can sleep much better at night knowing you are dealing with a legitimate broker. When it comes to the beginner, Forex Club offers any and all tools to turn the novice trader into a Forex expert. This includes extensive resources for educating the trader such as videos, forums, articles, and Forex tutorials.

However, no broker is perfect and some of the issues I have with Forex Club include deposit, withdrawal, and rollover fees. They also do not offer as high of a leverage as other brokers, with Forex Club's maximum leverage of 100:1.

Like I said, no broker is perfect, and if I was unable to find any disadvantages with Forex Club, it would just indicate to me that they must be hiding something.

Other advantages include Dow Jones news integration in their trading platform, on site webinars, as well as full courses. Another impressive characteristic of Forex Club is their social presence. They maintain an updated and relevant Twitter account for which they have accumulated a nice following. This is of course praise worthy on so many levels, but just the fact that they do not spam the social networks like other brokers do, is worth a mention.

Forex Club offers various promotions through contests and other trading incentives. In terms of their platforms, they include all the standard tools such as Stop Loss, Take Profit, and many others. In conclusion, Forex Club definitely did a good job separating themselves from the large number of Forex brokers. Between their regulation, their state of the art trading platforms, and their top notch Forex features, Forex Club would be a good choice for any Forex broker, beginner or expert