Guide for Beginner

This area will share basic forex knowledge, trading guide, forex ebooks and my trading experiences. Hope that it is helpful for trader friends.

Support and Resistance

Wednesday, 24 June 2009 16:53

Support and Resistance is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea on how you should measure support and resistance.

Support is determined as a price level at which market seems to having difficulty to go lower.

Resistance is a price level at which market seems to having difficulty to go higher.

Add comment (0)

Introduction To Forex - by 1st Forex Trading Academy

Tuesday, 16 June 2009 23:34

Trading in the Forex market is a challenging opportunity where above average returns are available to educate and experienced investors who are willing to take above average risk. However, before deciding to participate in Forex trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.

There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.

Attachments:
Introduction_To_Forex.zip	539 Kb

Add comment (0)

Buy or Sell ?

Sunday, 14 June 2009 21:13

You believe that the Euro to US Dollar (EURUSD) rate will increase. In your account you have 2000 USD (eGlobal-standard). At a price of 1.2750 you buy 150,000 Euro for 150,000*1.2750 = 191,250 USD.

This is possible because of credit, which allows you to make transactions worth 100 times more than funds you have in your account (in this specific case, the maximum sum available for transactions is 2000*100 = 200,000 USD).

After a period of time, the exchange rate increases. You sell 150,000 Euro at the rate of 1.2850 and get 150,000*1.2850 = 192,750 USD.

Thus, after buying at a low rate and selling at a high rate, the difference 192,750 - 191,250 = 1500 $ is your gain. You have earned 75% of initial funds in your account, while the rate increased by 0.8%.

Add comment (0)

2 Basic Types Of Analysis

Sunday, 14 June 2009 20:36

Fundamental Analysis :

Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand. In other words, you look at whose economy is doing well, and whose economy sucks. The idea behind this type of analysis is that if a country’s economy is doing well, their currency will also be doing well. This is because the better a country’s economy, the more trust other countries have in that currency.
For example, the U.S. dollar has been gaining strength because the U.S. economy is gaining strength. As the economy gets better, interest rates get higher to control inflation and as a result, the value of the dollar continues to increase. In a nutshell, that is basically what fundamental analysis is.

Technical Analysis

Technical analysis is the study of price movement. In one word, technical analysis = charts.The idea is that a person can look at historical price movements, and, based on the price action, can determine at some level where the price will go.

Add comment (1)

More Articles...