By: Jason Fielder
There's far more Forex jargon than can be covered in just one article, but this article will also help to fill in more of the most common Forex jargon for beginners. No matter what the group (doctors, astronomers, basketball players, poker players, etc.) each group has its own distinctive lingo. The Forex is no exception, and the sooner you learn some of the lingo, the easier it will be to follow tutorials, learn how to trade, and start holding your own in conversations with other professional traders. So without any further delay:
"Lots." This is more than lingo, and not a word referring to a lot of something. Lots are specifically the bulk amounts of currency required for trading in the Forex market, most currencies are priced in lots of $100,000.
"Margin." This is the minimum amount of money needed to put up to place a trade with a broker. As long as you have this minimum amount in your account you can trade. When your account falls below that margin amount, all your open positions in the Forex market are closed out.
"Margin Call." A margin call is made when, due to losses, your account falls below the allowed minimum for a broker account. When this happens the broker makes a margin call, which will close out all your open positions in the Forex market.
"Limit Order." This is an order to execute a trade only if it hits a specific price or better.
"Carry Trade." Depending on what Forex traders you hang around with, you could hear this one a lot. A carry trade is a trade where you choose a currency pair in which you go interest positive, meaning that you are earning daily interest on your trade because of the difference in interest rates between the two nations.
"Counter-Trend." Many people think this means trending downward, but that is NOT correct. A counter trend market is a market that is not trending either way, meaning all movements are basically staying within the same channeled area.
"GTC Order." Good Till Cancelled Order. This is an order placed for a currency pair that will remain in play until the trader shuts that position down.
"OCO Order." One Cancel Other. A type of trade using two orders that are set up by trigger values. When a currency pair hits a trigger, that trade goes into effect while the other is automatically cancelled.
Article Source: http://www.tradeforex2000.info/forexarticledirectory
And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: www.foreximpact.com/reports/89percent/ From Jason Fielder: Founder, ForexImpact.com
Showing posts with label Learn Forex TRading System. Show all posts
Showing posts with label Learn Forex TRading System. Show all posts
Monday, January 12, 2009
Thursday, October 9, 2008
Practical Forex Trading Rules
You can develop into a better and more profitable trader by applying some of the more important forex currency trading rules consistently with a suitable amount of discipline. The following are a few principles that can help improve your chances of success if they are understood, practiced, and implemented in your trading on a regular basis.
These rules have been learned in the trenches, mostly through testing and observing the common mistakes nearly every trader makes when starting out in the forex currency trading business.
Set Up and Implement Specific Goals/Objectives
Very few things are more important to your trading success than setting specific goals and objectives for what you are trying to achieve. The majority of forex traders who often find themselves on the losing end of a trade make the same common and recurring mistakes. Many of the missteps, by and large, are not directly related to the mechanics of trading.
As a matter of fact, most forex traders don't have a clear direction, never take the time to develop a sound business plan and lack a formal written strategy for putting a well thought out plan in place.
In order for any business to be successful it must have measurable goals that are both realistic and attainable. In forex currency trading, the primary goal is obviously to make money, but it's important to have goals that are not strictly money related as well.
Never lose sight of the fact that risk and reward are part-and-parcel to forex currency trading and high returns come with a price so don't expect them without the willingness to plan for minor draw-downs in trading capital.
Your personal objectives and goals should be very specific to you, but they should also include the following characteristics if they are going to be useful. They must be measurable, assigned to a specific time frame and provide an ample return on the time investment made.
As an example, here is a quick outline of a few specific goals.
1. Develop and test 2 new trading systems every year.
2. Plan to reduce the error rate installing the trading systems by 37% each year.
3. Achieve a 177% maximum return on capital in 12 month period.
4. During the year take 3 weeks off from trading.
Having a definite idea of what you want to accomplish in your trading and the exact time frame you want to achieve it, make your efforts more focused. In return you will have greater success.
In order to establish a track record of winning trades, you need to develop discipline and a personal forex currency trading system that makes sense for you.
About the Author
These rules have been learned in the trenches, mostly through testing and observing the common mistakes nearly every trader makes when starting out in the forex currency trading business.
Set Up and Implement Specific Goals/Objectives
Very few things are more important to your trading success than setting specific goals and objectives for what you are trying to achieve. The majority of forex traders who often find themselves on the losing end of a trade make the same common and recurring mistakes. Many of the missteps, by and large, are not directly related to the mechanics of trading.
As a matter of fact, most forex traders don't have a clear direction, never take the time to develop a sound business plan and lack a formal written strategy for putting a well thought out plan in place.
In order for any business to be successful it must have measurable goals that are both realistic and attainable. In forex currency trading, the primary goal is obviously to make money, but it's important to have goals that are not strictly money related as well.
Never lose sight of the fact that risk and reward are part-and-parcel to forex currency trading and high returns come with a price so don't expect them without the willingness to plan for minor draw-downs in trading capital.
Your personal objectives and goals should be very specific to you, but they should also include the following characteristics if they are going to be useful. They must be measurable, assigned to a specific time frame and provide an ample return on the time investment made.
As an example, here is a quick outline of a few specific goals.
1. Develop and test 2 new trading systems every year.
2. Plan to reduce the error rate installing the trading systems by 37% each year.
3. Achieve a 177% maximum return on capital in 12 month period.
4. During the year take 3 weeks off from trading.
Having a definite idea of what you want to accomplish in your trading and the exact time frame you want to achieve it, make your efforts more focused. In return you will have greater success.
In order to establish a track record of winning trades, you need to develop discipline and a personal forex currency trading system that makes sense for you.
About the Author
LearnForexSystemTradingDirectory.com
© 2006 Roosevelt Jones Publishing
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