FOREX TRADING TO MAKE MONEY $$$- WHAT IT IS ?

SpreadsThe spread, calculated in "pips," is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Because currencies, unlike futures and stocks, are not traded through a central exchange, the spread can be different depending on the broker you use, so it's well worth checking a few out before you open an account. Lower spreads can help you save money!Wide Range of Leverage OptionsForex trading allow you to take positions up to 100 times the value of your account. The leverage available in Forex is one of the main advantages of this market, especially for futures and stock traders.Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 200:1 means your broker would lend you $200 for every $1 of actual capital. Many brokerages offer a flexible margin policy that allows you to choose the leverage that's right for you.Account TypesMany brokers offer two or more types of accounts.Mini account is designed for those new to online currency trading and those with limited investment capital. There is a smaller deposit required to start trade of just $250 or less. The Standard Account is for those investors who are experienced in trading forex. The standard account lets you trade at a variety of different leverages, but it requires a minimum initial capital of $2,500. Finally, premium accounts, which often require significant amounts of capital, let you use different amounts of leverage and often offer additional tools and services.SupportForex is a 24 hour market, so your Forex broker should offer 24 hour support. You might not be trading at 4am, but that could be what time it is in your Forex brokers head office on the other side of the planet, so make sure there will be somebody there to pick up the phone if things go wrong. The best way to test out the support is to call them up or email them a few times before you open an account. Make a nuisance of yourself - if they don't treat you with the respect and attention you deserve before you become a customer, it won't bode well for the future. You'll also want to find out if you can close positions over the phone - essential in case your PC or internet connection go down at a critical moment.

Forex Technical Analysis

Technical analysis is the preferred short-term trading method. Technical traders base their study of the foreign currency market on historical pricing of currencies, using graphs and charts to plot real-time data. Integration of past prices, volume data, and exchange rates are taken and formed into trends that can be followed. Like fundamental analysis, there are several ways to go about using technical analysis to create a strategy for currency trading. It also takes into account the psychological trends of buyers and sellers, which are more apparent in short-term pricing. The driving force of greed and fear of instability are easy indicators of future pricing possibilities of currencies.
Time Horizons
Time horizons for technical trading can be broken down in charts, graphs and studies from as small as a single minute, to as long as a monthly basis. Like most other markets, forex trading places more weight on select types of technical analysis. Among the most popular indicators are Fibonacci Retracement Levels, Oscillators, Candlestick analysis, and Bollinger Bands. Retracement series are based on mathematical ratios, but more specifically, Fibonacci sets are created by summing the two preceding figures in a series of numbers. The interesting features lie within the ratios and means of these series that are constant, which are important since they describe how far a price has moved from its underlying trends. It will then help in hedging against risk for currency price pairs.
Oscillators
Oscillators are moving averages of prices, which are analyzed over a period of time. When using them, it is more useful to take shorter time periods as it will reflect a estimated price that is close to actual present values of currencies then when using long time spans. Oscillators are not utilized as the best way to predict changes in trends, but rather signal appropriate times to buy and sell. When a specific exchange rate moves above its moving average price this should be a trigger to buy, but when it falls below the average, it is a selling indicator. Within moving averages, two types can be identified: Simple moving averages that are basic mathematical calculations dividing closing prices by the number of time periods, and Exponentially Smoothed moving averages that are weighted by taking into account the average of the prior day.
Candlestick Chart
The third type of chart is a candlestick chart that maps the high, low, open and close prices of a currency pair in a single wick. The graph itself is a form of a bar graph, and contains a series of bars (wicks) that depict market fluctuations. The difference between the open and close bid is marked by a change in color, green for close above the open price, red for the opposite.
Bollinger Bands
Finally Bollinger Bands show the volatility of a currency using moving average envelopes in a statistical manner. Standard deviation levels are set and are generally movement in prices contained within 95% of two bands. Technical analysis, though accurate and scientific in nature, it requires an understanding of mathematical theories to best develop trade strategies

Forex Technical Analysis

Technical analysis is the preferred short-term trading method. Technical traders base their study of the foreign currency market on historical pricing of currencies, using graphs and charts to plot real-time data. Integration of past prices, volume data, and exchange rates are taken and formed into trends that can be followed. Like fundamental analysis, there are several ways to go about using technical analysis to create a strategy for currency trading. It also takes into account the psychological trends of buyers and sellers, which are more apparent in short-term pricing. The driving force of greed and fear of instability are easy indicators of future pricing possibilities of currencies.
Time Horizons
Time horizons for technical trading can be broken down in charts, graphs and studies from as small as a single minute, to as long as a monthly basis. Like most other markets, forex trading places more weight on select types of technical analysis. Among the most popular indicators are Fibonacci Retracement Levels, Oscillators, Candlestick analysis, and Bollinger Bands. Retracement series are based on mathematical ratios, but more specifically, Fibonacci sets are created by summing the two preceding figures in a series of numbers. The interesting features lie within the ratios and means of these series that are constant, which are important since they describe how far a price has moved from its underlying trends. It will then help in hedging against risk for currency price pairs.
Oscillators
Oscillators are moving averages of prices, which are analyzed over a period of time. When using them, it is more useful to take shorter time periods as it will reflect a estimated price that is close to actual present values of currencies then when using long time spans. Oscillators are not utilized as the best way to predict changes in trends, but rather signal appropriate times to buy and sell. When a specific exchange rate moves above its moving average price this should be a trigger to buy, but when it falls below the average, it is a selling indicator. Within moving averages, two types can be identified: Simple moving averages that are basic mathematical calculations dividing closing prices by the number of time periods, and Exponentially Smoothed moving averages that are weighted by taking into account the average of the prior day.
Candlestick Chart
The third type of chart is a candlestick chart that maps the high, low, open and close prices of a currency pair in a single wick. The graph itself is a form of a bar graph, and contains a series of bars (wicks) that depict market fluctuations. The difference between the open and close bid is marked by a change in color, green for close above the open price, red for the opposite.
Bollinger Bands
Finally Bollinger Bands show the volatility of a currency using moving average envelopes in a statistical manner. Standard deviation levels are set and are generally movement in prices contained within 95% of two bands. Technical analysis, though accurate and scientific in nature, it requires an understanding of mathematical theories to best develop trade strategies