Most people who try to learn forex online fail. but thats because they dont go about it in the correct way.

If you are going to learn forex online from home, you have to have a plan, otherwise you will lose money and you will have a bad time. therefore I propose the following 5 point plan.

1.Understand exactly what forex is, how it works, how you can make money from it and how you can lose money from it.
this includes not just a rough overview, but having a decent understanding of margins or leverage, pip spreads, commisions, everything

2.Know what makes a good trading platform
Find a few and try them out, because whilst some things that make a platform good are universal, such as low commisions and pip spreads, other things come down to personal taste, such as the layout of the software

3.Know how to use your choosen platform well.
Opening trades and setting stop points are an absolute minimum, in fact i say thats not enough, really you should be able to overlay and read several charts at different time intervals, integrate signals and know your way around.

4.Be able to emulate or develop different strategies, and test them on a demo account first
If you arent testing different strategies on play money, you may as well go to the casino

5.Be conservative
Once youve got real money on the table, you should only be risking it when conditions are just right. If you are making more than a couple of trades a week to begin with, your probably being to gun-ho and could be heading for a rude shock in the form of lost money(note some strategies call for many trades, but even if you adopt such a strategy, be ultra cautious when starting out)

So there you have, a simple plan if your just starting out, surely better than risking money up front and losing the lot!

A fool is easily parted with his money

If you are diving into the world of forex, its important to learn as much as you can. Learn forex online is a place where you can read news and info that has been carefully selected for you, a newcomer to the world of forex.

Trading Forex provides a great oppurtunity, but it is not a get rich scheme. Yes, some people make a living trading forex, and maybe one day you can to, but you can also think of forex as a wealth builder, like an investment only with potentially much higher rates of return(and the corresponding risk involved) than putting your money in the bank or shares(did I say higher risk than shares? the last year may dissprove this).

In light of this, learning as much as you can is a wise move, because whilst forex involves skill, if you dont arm yourself with knowledge it can be just like gambling, and no-one likes to lose money. Sure its possible to rush straight into trading real money, but the potential to lose money is high if you dont know what you are doing, and the reason most new traders fail is because they dont spend enough time learning. Even the best traders in the world are constantly learning and searching for new ways to improve, to get an edge, and you should to.

So please look around, the information here is constantly updated with the newest tools and news about the online forex industry,and if you like what you see subscribe to keep up-to-date with the forex world.

What is a scalping strategy?

A scalping stretegy is a short term forex strategy. Bascially what it entails is making very short term forex trades, often keeping trades open for only a matter of minute. The goal of this method is to make lots of very small profits, often in the region of only a handful of pips.

As you can imagine, if you are only going to make a few pips profit per trade, then you are going to have to have a significant amount of money on the line in order to turn any sort of reasonable profit, and this is where the danger of a scalping strategy comes into play.

If you’re trading forex at home and want to implement a scalping strategy, you are going to have to trade with a large margin. The larger the margin you have, the more capital you will need in your account to cover the trade if it moves in the wrong direction. If you dont have enough capital, your trade could be automatically closed and you could lose your entire account. not good.

For this reason, scalping strategies are not really recomended to people who have only just begun to learn forex. If you are just starting out, why not try our ultimate guide to forex, which offers a quick overview of how forex markets work.

Developed by Welles Wilder, it is otherwise known as
Wilder’s RSI. The common or suggested setting for this
study is 14 periods. However, I use 2 periods.

The RSI compares the relative strength of the present
price action to the n number of periods that you have
chosen. In a 14 period RSI, the current position of the
RSI will be how strong this period is compared to the
last 14 periods.

So if you were trading on a 1 hr chart, it will compare the
strength of this hour to the last 14 hrs of price action and
give you a number. This will be your current RSI.

Wilder selected 70 and 30 percent levels as overbought
and oversold areas.

When the RSI shows a 70% reading or above, the market
is considered overbought. Expect a reversal to the
downside.

And when RSI reaches 30% or below, the market is
considered oversold. Expect a reversal to the upside.

In my optimized setting, I have settled on the 2 period RSI.
I have back-tested this extensively and this is what I trade
with.

The 2 period RSI is very sensitive to price change but not
jittery. I have compensated for this by devising my own
overbought and oversold levels.

When my 2 period RSI reaches 95%, it is considered
overbought to the upside. You then consider a trade to
the downside.

When it reaches 5% to the downside, it is considered
oversold. You then consider a trade to the upside.

I mark these levels on my chart with a horizontal line
across these levels on the study.

Below is a comparison of the two settings; the suggested
14 period and my optimized 2 period RSI. (Chart available thru email attachment)

This is a 4 hr chart of the GBP/USD. The RSI 2 period is in
green and the 14 period in red.

The 2 period RSI produced 10 signals for profitable
trades while I could only stake my money on 1 for the 14
period RSI.

On the left of the chart where I marked the 14 period RSI
with a blue horizontal arrow, notice how the 14 period RSI
stayed overbought for an extended period while the 2
period RSI was able to give at least 3 profitable signals in
the same time frame.

Also look closely at the chart and see if you can find the
9th and 10th signals from the 2 period RSI.

Can you find them?…….

If you can’t find them, it’s because I have not discussed
the other use that I employ the RSI for.

Please Take The Following Action Steps

• Pull up a chart of a forex pair you will like to trade
• Plot both my RSI 2 periods and the 14 period RSI, one on top of the other.
• Set the levels as you learned in the forex lesson and compare the two signals.

Forex is actually the beginning of the words Foreign Exchange joined together. In effect when someone says forex, they are refering to the Foreign Exchange Market.

So what is the Foreign Exchange Market then?

The Foreign Exchange Market is the largest market in the world, it is where all international currencies are traded over the entire planet, so as you can imagine it is huge. How big? Well try over $3 trillion every day, that’s $3000000000000 every single day. The reason this is so ridiculously large is that a lot of money can go into the market then come back out again several times a day as large companies make many trades to try to maximise their profits.

Foreign Exchange? Like a bureau de change?

Kinda, when you go on holidays, you have to get local currency from a change office. When you trade forex you dont actually get any cash in whichever currency you have bought, instead when you trade currency you open what is called a position which remains open for as long as you wish to ‘hold on’ to whichever currency you have bought. When you want to sell that foreign currency you must ‘close’ your position and any profit you have made shows up as your home currency in your account. If you’ve used these change offices before you may have noticed that they have two prices for each currency, these are a buy price and a sell price, which will be examined more closely in the next section of this guide.

So how do you make money off it?

The best bit! with Forex markets, it is always possible to make money. Unlike stock markets, housing markets and all the other markets that can, as we have recently seen, crash, on Forex markets if one currency is going down against another, you can be making profit. The entire market cant crash, because is based on what currencies are worth compared to other currencies, so when one is going down, its the same as another going up.

How does that work?

Well, lets say you had 100 US dollars(US$100) and you thought the dollar was going to go down against the euro, so you bought euros with your dollars. If the exchange rate between dollars and euros was 0.75 you would get 75 euro cents per dollar. So now you have €75. Now just say you were right! The dollar went down! This would mean the the exchange rate would go down, lets say to .65, meaning one dollar was worth 65 euro cents. This is great news for you, because you bought euros, so if you swapped back your €75 to US dollars you would now have US$115.38. All you have done is move your money from one currency to another and back, and you have made a profit.

Thats it? sounds easy

It literally is that easy, there are a few things to take into account, such as commission you must pay to your broker(choose your broker carefully!) and something called “pip spread” which will be explained in the next edition of this guide, but there you have the basics of forex.In the next part, as well as talking about pip spreads, I’ll introduce you to the tool which can really crank up your profits on forex markets, margins. Margins are what make forex trading the exciting money making venture that it is, so stay tuned!

What the hell is a Forex pip?

Well, when you look at forex charts, you see that each currency pair has two sets of numbers, a pip is the last digit of each number, so if a price changes from 0.870 to 0.873 it has moved 3 pips. The pip spread is the gap between each number, for example 0.910/0.915 has a 5 pip spread. This is important stuff, because what you want is lower pips, the lower pip, the easier it is for you to profit.

Why is that?

Well, when you start a trade, you always open at the ‘worse’ position and therefore you must cover the pip spread before you start making profit. If the pip spread is too large its hard to profit even if you get the direction of the trade right, so always look for a broker with good spreads.

Ok, so maybe i can make a little profit, but i dont have enough money to make any serious cash

This situation may seem familiar, its that old adage(or is it myth?) that it takes money to make money. In forex there is a little twist to this, you can use someone elses money but keep all the profits. Nothing illegal or bad, its called margins, and essentially what works is you use your money to cover the margin of a trade. As an example, if you had $100 and traded with a margin of 50:1, you would be able to open trades worth $5000. if you did this and the pair you were trading improved by 1%, you would be $50 up(before commision), but then your next trade you can open $7500, another 1% and thats $75 for you. If you are good at picking what will happen between a currency pair, you can quickly build your capital trading like this, however there is a catch, this is the real world and money can be lost. When trading margins your risks go up with your rewards so always be careful that your not risking to much, becasue just as you can make fast profits with margin trading, you can also lose it carefully.

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What is the best way to learn forex trading?

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Which forex broker is the best for beginner trader,minimum deposit,micro account?

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What are the best lessions to take in other to beginning forex trading?

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What Broker to use for trading Forex?

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Which is the best Forex broker for trading purposes offering good terms?

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I want to Learn about Forex Market?

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What are the basic requirements for forex trading?

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I need to know about forex (any web for free course)?

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Forex or foreign exchange : Exchange of foreign currency in the forex market is called Foreign exchange/Forex.

Foreign exchange market : The financial market that never sleeps. It runs 24X7. Most of the transactions in forex market is carried on phone or on the internet.

Spot market : Where currency is bought and sold at the on going market rate.

Exchange rate : The term used when mentioning the difference between two currencies. For example if USD/CAD is 1.077 then that means 1 American dollar is equal to 1.077 Canadian dollars.

Base Currency : The very first currency of the two currencies is called the base currency.

Counter Currency : The second currency of the two currencies in the pair is known as counter currency.

Spread : It is the difference between bid price and ask price. Lower spread is beneficial for the trader party because it can make bigger profits for him.

PIPs : Pip is short for Percentage in point. It is the most common increment of a currency – “The smallest of price value change in a currency”. For example if the USD/CAD moves from 1.0077 to 1.0078, then that equals to 1 PIP. How ? Because A pip is actually the difference in final decimal place in the quotation.

Swing trading : This means Forex trading where you gain quickly from short term swings in trend.

Auto trading : Where no human is involved whatsoever. With use of sophesticated forex software the trading is done automatically.

Scalping : Strategy for trading where you wanna gain quick buck with a small price change in a matter of minutes. Forex traders who use this technique are called scalpers.

More Forex How to , Faqs and terms continued next week…

While dealing in forex you have to remeber that there are some currencies which are considered major which are considered to be most liquid. These currencies are :

Ofcourse there are other currencies but they are not so liquid in the market. The best thing about the forex market is that it is a 24hr market except for weekend.

Some points you should not forget while learning forex :

Best way to learn forex is by starting your virtual account. First lessons teaches you to trade currencies in pairs like :

Australian dollar vs. U.S. dollar (AUD/USD)
Euro vs. U.S. dollar (EUR/USD)
New Zealand dollar vs. U.S. dollar (NZD/USD)
Pound vs. U.S. dollar (GBP/USD).
U.S. dollar vs. Swiss franc (USD/CHF)
U.S. dollar vs. Japanese yen (USD/JPY)
U.S. dollar vs. Canadian dollar (USD/CAD)

It is that simple

After you have done setting up your Virtual account make sure to keep the below points in mind :

1. Choosing the currency pair which is best suited to our needs is very important because some pairs can be very volatile whereas others might not show any movement.
2. Make a proper time schedule. You wish to spend few minutes or few hours or the whole time in the forex market? You will have to decide yourself the time frame you wish to keep.
3. Remember forex trading is like any other business. You need to take some risks to have the big gains. If you are new then better to take calculated risks
4. Understand the market conditions properly and make a proper forex analysis before you carry out your deals…

Happy learning forex…

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What is the best way to learn forex trading?

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How can I learn Forex trading withoput spending a ton of money on a program?

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http://en.wikipedia.org/wiki/Forex_scams

Where can I learn more about Forex?

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http://www.babypips.com/

http://www.fxstreet.com/

http://www.forexfactory.com/

I want to Learn about Forex Market?

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What’s the best way to learn forex trade?

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The forex market can be a daunting arena for new traders; and for some, simply not knowing simple concepts means huge losses. So it is important to learn forex concepts that are important in trading successfully. As you learn these forex concepts you may find some concepts familiar while others foreign. All it takes is a bit of effort and determination to master a few basic fundamental concepts of forex trading.

This is just a short intro i copied and pasted. There are around 15+ helpful articles for beginners in the links below.

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I need to know about forex (any web for free course)?

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Forex Course in Melbourne, Australia?

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Is there any body in coimbatore to coach forex trading?

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What are the best lessions to take in other to beginning forex trading?

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What is forex management, & how companies(import and export ) handling forex management with banks?

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Is there any training institute in chennai to teach forex trading?

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Any RBI directives with regards to Reg.7 of Foreign Exchange Management(Borrowing&Lending in Rupees)Regulation

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What is the role of banks in forex management?

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