The Forex Trading Blog » what is forex trading

Whether FOREX TRADING is legal in India?If so then which company is safe to do a trade from an online?

admin — Wed, 23 Nov 2011 08:18:05 +0000

Can any one suggest about doing Forex trading from online from India is legal and also which method of depositing and withdrawal is good to do with Forex trading company which is for a safety purpose and also to cut the taxes?What is the RBI standing for a Forex Trading by Individual in India at now?

RBI guidelines keep on changing. Every system has loopholes.

You need to evaluate many points:

1) What is the standing of the broker as per the rgulations- regulated or now?
2) Do they have any necessary approvals required for remittances?
and many more:

Suggest to check the RBI gidelines and look for the finer points there:

1) http://www.rbi.org.in/Scripts/FAQView.aspx?Id=66
2) http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

These are covered in the following post:
http://www.forexabode.com/forum/viewtopic.php?f=5&t=52

What kind of news should I start reading in order to make decisions about forex trading?

admin — Fri, 04 Nov 2011 04:57:43 +0000

I got a check in the mail for $40 from my forex account. I blindly put money into eur/usd. So now that I know this is real and one can make money off of it, what kind of news should I start paying attention too? What section of the newspaper should I start reading and things of that nature

Do we do any business blindly? I think a big "No" for that. While Forex trading can earn you good money, it can also make you big losses and hence please never take it as an easy way to make money.

In case you are very serious about it then you should keep and eye on fundamentals (economic releases) as well as technical indicators/analysis. As I always say that fundamental analysis is the canvas and technical analysis is the color on it to make the art. You get an overall picture by fundamental analysis and then use technical analysis to make your trades. You may find the details of important economic releases and some more details at http://www.forexabode.com/fundamental-analysis and for technical analysis please check http://www.forexabode.com/technical-analysis.

For the sake of repetition, please know that Forex trading needs to be taken as a serious business and not as a gamble and hence some real hard work is required.

Best regards

How should i start forex trading?

admin — Fri, 14 Oct 2011 01:30:47 +0000

I am 28 yrs.old,from imphal.today i like to know more about in trading.Recenty i opened a demo account in one of the leading company hantecfx.com.but after opening a demo account,what next?in this they shown me a graph but i don’t know what this thing is and how it used?after investment what cud be my next step and how it be used?plz.explain me clearly.

To be honest what you mentioned suggests that you think that Forex may be a way to make money overnight. It is not. Forex trading is a business and needs to be treated as a business. And any business needs in-depth understanding of the concepts, pros and cons. Don’t jump into it and I would even say don’t even jump iinto it with even a demo account. Demo accounts can be two way swords. Early success and early failure may taint our decision makings when we are faced with the real thing with real money. The reason is simple that during demo, we do not face one of the most important aspects of trading and that is psychological aspect. Study, study and study first. read a lot.

what is the best indian hour for forex trading?

admin — Tue, 21 Jun 2011 14:58:28 +0000

http://comefollowme.zulutrade.com/Performance.aspx

What is a good forex trading broker?

admin — Sun, 19 Jun 2011 03:56:15 +0000

I have been researching and learning about forex for about 6 years now. I really have not traded on a live platform, but have always used the "trial practice" ones. I always hear about how it is much easier to make money in practice mode (no glitches like the live versions etc) and that some brokers may cheat you on some trades??? It may just be angry customers? Just looking for a good broker out there to start off trading. Good overall is what I am looking for. Let me know what you guys use! And your experiences! Thanks

I recommend to you FinFx and FxPro!
I’m using those brokers for a long time and it’s good for me!

What do you think about forex trading, is it really profitable?

admin — Mon, 23 May 2011 01:26:13 +0000

I want to try forex trading, I don’t know how to start, I want somebody who experienced it to share with me his/her experience

Forex trading is profitable if you are able to abide by three simple rules:

1) Stick to one or two strategies that work year in, year out.
2) Apply good money management techniques. This means you should never expose more than 3-5% of your account to the market at any given time. This way, a losing trade will not damage your account irreparably.
3) Aim for a reasonable profit margin of at least 40% monthly. Some people say that aiming for up to 40% is suicidal. My experience has shown that if you have a good strategy (and I have seen a blog where there are more than 30 strategies to choose from), some of them can deliver up to 100 pips over 2 days of trading, if the trader makes the correct entry and follows the rules.

For me, I do not trade every day. This is my 6th year in the market. I have learnt that good strategies, applied with good money management, is what makes the difference between success and failure.

You need to get access to strategies, and use them. One of my favorites is using crude oil to trade currency pairs involving the USD, JPY and CAD. When you understand such relationships, you understand why things happen in the forex market.

When you understand why a credit rating downgrade in a Eurozone country causes the EURUSD to drop in value, you are already on your way to knowing how to trade forex profitably.

When you understand that the CHF is a safe haven currency and that when bad things are happening economically in Europe, a SELL position on the EURCHF can rake in 1000 pips (as happened in Nov 2010 because of the Irish debt problem), then you are on your way to trading profitably.

Forex trading is profitable. Just like a door has a key which locks and unlocks it, so also forex trading has keys. You need the keys to be able to unlock them.

what is the difference between commodity trading and forex trading ?

admin — Tue, 10 May 2011 23:41:16 +0000

is it the methods of margin trading and leverage? and which is better.
i mean in forex u can trade few commodities as gold for example, but u can trade also commodities through the futures exchange like CBOT And COMEX, so whats the difference?

Forex Trading is the direct buying and selling of currencies in the market. Its trading at the spot price.

The Commodity trading of Currencies involves the Futures trading market. There, its all about buying and selling of contracts with a price tag for what its worth at a date/time in the future.

For example, in the Forex market, you might want to sell USD for a CAD. At that moment in time, you will pay whatever the spot price is. In the Futures pits, you’ll be buying a contract for 100,000 Canadian dollars at a price they might be trading at in July. So as the spot market price changes, your futures contract’s value changes.

Either way is good, but I’d say the Futures Market is better because you get more leverage and protection in trading than on the spot market.

What is FOREX trading? How to make profit from it?

admin — Tue, 22 Mar 2011 22:03:43 +0000

Anybody here has experience with Forex traiding? Does it matter which country you are from or anybody can participate on online Forex traiding sites(Im an EU national)? Do you requiere a broker for this kind of currency trading? Is it worth it? Thank you!

Forex trading is forex exchange trading which involves buying and selling currencies. Traders normally buy or sell a currency hoping that the currency increase or decrease in it’s value and benefit from those differences. I will explain you with a simple example.

You want to trade on the currency pair EURUSD and buy it hoping that it increases in its value. That means you are buying Euros selling USD. Lets say one EUR is 1.5000 USD. For buying 1000EUR you need to spend $1500. The currency increased in its value as you expected and it became 1.5100. That means you made a profit of 100 pips.(In forex it is measured in terms of pips). Lets say you have a standard account with a leverage of 1:100. Then this 100 pips means $1000.

Does it matter which country you are from or anybody can participate on online Forex traiding sites(Im an EU national)?

You need to have a broker to participate in forex trading and it depends on the broker when they are offering their services in your country. For EU most of the brokers are offering their services. Check

http://www.fxcm.com

http://www.alpari.com

http://www.forex.com

Do you require a broker for this kind of currency trading?
Yes. You need a broker for participating in forex. Check the above resources.

Is it worth it?
It really depends on how much experience you have in forex. You need to know a lot of common terms in forex. If you are a beginner I recommend you to trade on a demo account first. Check the following resources that helps you.

What is spread?

http://www.forexbees.com/what-is-spread-in-forex-market/

What is leverage?

http://www.forexbees.com/leverage-in-forex-trading/

What is pip in forex trading?

http://www.forexbees.com/what-is-a-pip-in-forex-trading/

How to open an account in forex?

http://www.forexbees.com/how-to-open-an-account-in-forex/

Hope this information is useful to you.

tips for starting forex trading, Most efficiant way to deposit/withdraw ?

admin — Sat, 19 Mar 2011 04:19:14 +0000

hey, I have decided to start trading forex and picked a broker(SmartTradeFX). Now I would like to know what is the most economic way in general to deposit or withdraw , is it Paypal?

It depends on the amount. Paypal is good since it is universal. However the time transaction of paypal is too long. When you deposit, it will be verified 2 days after. But generally, it is secured. You can go for payoneer too but its more expensive. Good thing is it’s fast.

what is Forex trading? Is it safe to trust forex traders who advertize online like iForex?

admin — Fri, 18 Mar 2011 03:39:19 +0000

I need to know the pros an cons of Forex Trading. Pls help

http://myfavoriteinterests.com/forex/