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Knowledge
Needless to say, knowledge is the key to handling your risks well. Before you
get into the Forex market, the best thing you should do is educate yourself. What drives currency price movement?
How to read analysis data? How to read chart indicators? Learn details about how currency price moves and how to
trade foreign currency exchange in order to avoid unnecessary risks. If you wish to learn more
http://www.golearnforex is a good source for Forex beginner education.
Forex
dealer
Choosing the right FX dealer is a way to avoid unnecessary
risks. Forex dealers are not all regulated the same way. Although Forex dealers must be regulated by law, firms and
individuals can solicit retail accounts for Forex dealers and manage those accounts without being regulated. As a
trader you should take up the responsibility of finding out if your Forex dealers are regulated. If they are not,
you may be exposed to additional risks.
Also, beware of dealers with investment schemes that sounds too good to be true. If
you are from the United States, you can always refer to CFTF (at http://www.cftc.gov ) or NFA (at http://www.nfa.org ) for further information.
Forex market is a non-centralized market. There is no common market place for Forex
traders and there is no so-call 'standard' in foreign currency exchange price. Different Forex dealers offer very
different deals to their customers. As an individual FX trader, you depend solely on the dealer to make a
transaction in your trades, thus picking up the right dealer is extremely crucial in your risk.
Stop loss
order
Besides depending on the Forex dealer, a stop loss come in
very handy if you wish to limit your risks. Always trade Forex with a stop loss order as it will assure
you can exit the market at a price where you can handle the losses. As an example, if you purchase
100k of EUR/USD at 1.2050 expecting the EUR/USD to rise in value, and your stop is placed at 1.2020, you are
guaranteed to be filled at your price (except in very volatile market.)
To leverage or
not?
One way to manage your risks well in the Forex market is to trade without
overleveraged. Forex dealers want you to trade with high leverage values as this means more spread income for them.
Also, trading in high leverage may increase your profit or loss. There are high possibilities that you
might lose more money than you can afford in margin trading.
Conclusion
You have come to this article probably because you are new to FOREX and are
doing some research on the Internet. To be frank, Forex can be very profitable but the risk that
lies beneath is equally great. But what else in life does not involve risk? You can be fired from your job,
the factory may malfunction, stock market may collapse, your boss may runaway with your wages, and hey! These are
all risks. Learning risk management is the key to handle your life.
There is a few useful links you can use to get your head
around trading
InvestOpedia (great
resource) - http://www.investopedia.com/
Forex PDF Collection - http://www.savefile.com/projects.php?pid=868431
Forex Basics (short) - http://www.fxsol.com/getting_started/forex_basics.asp
Forex Basics (longer, better) - http://www.goforex.net/forex-basics.htm
MMG Forex for Dummies - http://www.moneymakergroup.com/index.php?showtopic=8775
NY FED Foreign Exchange Site - http://www.ny.frb.org/markets/foreignex.html
ForexTradingWorld - http://www.forextradersworld.com/
News / Analysis
ForexNews - http://www.forexnews.com
DailyFX - http://www.dailyfx.com/calendar/FXCalendar.html
http://www.acetraderfx.com/eng/resources/
http://gm.bankofny.com/Research_Home.asp
http://research.cibcwm.com/res/FEX/FEXResearch.html
http://www.pro-forex.com/en/forexreview.php
http://www.rbsmarkets.com/psp/public/home.aspx
http://www.bbh.com/products/fx_daily.shtml
http://www.gftforex.com/resources/commentary.asp
http://www.fxstreet.com/
http://www.forexcentral.net/forex-forecasts
http://www.mataf.net/en/
http://www.forextelevision.com/FT/index.jsp
http://www.iesm.net/
http://www.fx-charts.com/
http://www.fxcentre.com/
http://fxtrade.oanda.com/resources/4cast/indexi.shtml
http://fxtrade.oanda.com/resources/ubsnews/index.shtml
http://www.mizuho-cb.co.uk/TresInternet/index.htm
http://ozforex.com/cgi-bin/dailycommentary.asp
https://www.rbccm.com/0,,cid-15976_,00.html
http://www.fxtechtrade.com/en/
http://www.scotiafx.com/FXCommentaries.htm
Money Management
TS Research Group (EXCELLENT!) - http://www.tsresearchgroup.com/en/public.php
Specific Techniques
Pivot Points - http://www.tradeology.com/pivotpoints.html
Pivot Point Calculator - http://www.fxstreet.com/conversor/fppc/fppc.asp
Vegas Tunnel Method - http://www.freewebs.com/mswilson/
Research
Free/Pay back data - http://www.forexdata.biz/
Software
MetaTrader4 (free realtime quotes and charting, EXCELLENT) -
http://www.metaquotes.net
TradeStation (many markets in one program) -
http://www.tradestation.com
Lightpatch's MT4 collection - http://www.lightpatch.com/forex/mt_yahoo/
Forums
StrategyBuilderFX (Trading Strategies and MT4 scripts) - http://www.strategybuilderfx.com/forums/
MoneyTec Trader's Community - http://www.moneytec.com/forums/
FX-Review Forum - http://www.createphpbb.com/phpbb/vie...forum=fxreview
AutoForex ($300 signup fee!) - http://autoforex.biz/
Forex TSD (MT4 scripts) - http://www.tsd-forex.com/
MT4 Indicators and EA Yahoo Group -
http://finance.groups.yahoo.com/grou...nd_Indicators/
MT4 script discussion - http://www.metatrader.org/
MoneyMaker Group - http://www.moneymakergroup.com/
FXFisherman - http://www.fxfisherman.com/forums/index.php
Signal Services - 99% of signals are a scam so BE
CAREFUL and always learn the basics first
Collective2 (real time signal monitoring) - http://www.collective2.com/
Forex Trading Service Review - http://www.fx-review.com/
Books
Trading In The Zone, by Mark Douglas (psychological)
Trade Your Way To Financial Freedom, by Van K Tharp (psychological)
Come Into My Trading Room, by Alexander Elder (psychological, processes)
Brokers
Oanda - http://www.oanda.com/
InterBankFX - http://www.interbankfx.com/
FXCM - http://www.fxcm.com/
North Finance - http://www.northfinance.com/
Trade smartly, and gain the maximum out of Forex - good
luck!
Online Trading System or FX Signals System Trading has
potential rewards, but also potential risks. You must be aware of
the risks and be willing to
accept them in order to invest in the FX market. Do not trade signals if you can not afford to
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