First, it may be necessary to explain what forex trading is. Forex trading, also called currency trading, FX trading, Foreign Exchange trading and forex currency trading refers to the largest financial investment market in the world. Forex trading is fully electronic and has an average daily capital turnover amount in the area of $1.5 trillion. This amount of capital changing hands dwarfs the stock and commodity markets. Forex trading is the simultaneous buying of one particular currency and the simultaneous selling of another particular currency. If a forex investor believed that the Euro Currency would weaken versus the US Dollar they would Sell EUR/USD. In forex trading the strongest currency is listed first in the pair. Currently the European Currency (EUR), the Australian Dollar (AUD) and the British Pound (GBP) are the only 3 currencies valued higher than the US Dollar (USD).
The #1 reason forex trading is so popular is the ease and accuracy of trading at the forex traders convenience. Forex trading follows the sun around the world which enables investors to trade on their schedule 24 hours a day from the comfort of their own computer. Most forex trading platforms offer free real time quotes, charts and news to facilitate forex trading efficiency. Many also offer free practice forex trading accounts so investors can learn forex trading without any risk. Visit www.tkfutures.com/forex.htm and open an educational forex trading demo practice account. These typically offer the forex trader $50,000 in virtual equity and 30 days to practice forex trading with.
The #2 reason forex trading is so popular is the inexpensive trading costs. Many forex trading companies charge no commissions. The forex trading company and the introducing broker are compensated by the pip spread. For instance, a EUR/USD pip spread may be 3 pips which are equal to $30. The investor is leveraging $100,000 of EUR/USD with a total transaction cost of $30.
The #3 reason forex trading is so popular is the limited risk of capital loss. Many but not all forex trading platforms do not allow trading once the forex account equity amount falls below the required margin level. The forex trading platforms that offer this service will automatically liquidate the currency positions before the account can go negative. There are no margin calls in forex trading for the investor to worry about. Forex trading does offer extreme leverage of up to 100 times the value of the trading account which can cause significant losses in a short period of time. Visit www.tkfutures.com/forex.htm to learn more.
The author has over 13 years of currency investment experience and is familiar with both currency futures trading and forex trading. Visit http://www.tkfutures.com/education.htm to learn about currency futures trading. Currency futures and forex trading are both dynamic and fast paced investments and the author wanted to educate currency future traders and forex traders before they risk any real money to the markets. Forex trading carries with it a high level of risk and may not be suitable for some investors.
Thursday, November 20, 2008
Small Capital, Lower Risk and Possible Income Potential
Mini Forex Trading - Small Capital, Lower Risk and Possible Income Potential
If you are desirous of entering the field of forex trading but are held back because of the fear of inadequate capital and insufficient knowledge, mini forex trading accounts may be a possible answer to your pressing need.
As a statistical fact, only about 10% of the traders are consistently profitable in trading. How then can you increases the chances of your being successful as a profitable trader, seeing that you are facing difficulties of capitalisation and skill?
Firstly, you only need a very low capital to trade in forex using a mini forex trading account. In a mini forex trading account, forex brokers are willing to give you a very high margin. The leverage is as high as 200:1. In other words, in the mini forex account, there is a small margin deposit required fixed at $50 for per lot traded. This amounts to a stunning leverage of 200 to 1 (10,000/50 = 200).
By trading mini lots like this, your risk is reduced. Your potential loss is substantially less because of the small capital involved when compared to the normal full trading account.
Secondly, I am sure you have heard the sorrowful tales of those who lost their money trading in forex or stocks and shares or futures and commodities. As only about 10% of forex traders consistently make money, the next question is how can you increase the chances of your success as a mini forex trader?
In trading, APPLIED knowledge is the key to wealth creation.
So your task is to acquire that important knowledge and learn to trade profitably. With the advent of technology and the high speed desktop computers, it is now possible to shorten the learning curve. By finding a mentor who is experienced and successful, you can very quickly clone yourself into the mould of your mentor, following his most profitable trading techniques.
You can now gain years of trading experience by spending weeks on a trade simulator, practising your best selected forex trading strategy under the guidance of your mentor. If that is not enough, you can still reduce the risk further by using a demo account before you start trading.
Coupled with the use of a mini forex trading account, the risk is substantially reduced in trading.
Once you are consistently profitable in your simulated trades and your profitable trades are substantially more than your losing trades, then it is time for you to apply that knowledge and enter the real world of forex trading using a mini forex trading account.
By adopting a proven trading technique from a successful mentor, acquiring the necessary trading experience and skills with a trade simulator and practising on a demo account, you will have the best opportunities to start creating wealth from day one of your trading career as a forex trader.
Be aware of the downside risks as well because like all trading, mini forex trading do carry some risk. Follow the risk management principles in your trading methodology and keep to your safety stops. You can be on the way to become a profitable and successful trader with mini forex if you follow this proven method of learning and education.
Article Source: http://EzineArticles.com/?expert=Peter_Lim
If you are desirous of entering the field of forex trading but are held back because of the fear of inadequate capital and insufficient knowledge, mini forex trading accounts may be a possible answer to your pressing need.
As a statistical fact, only about 10% of the traders are consistently profitable in trading. How then can you increases the chances of your being successful as a profitable trader, seeing that you are facing difficulties of capitalisation and skill?
Firstly, you only need a very low capital to trade in forex using a mini forex trading account. In a mini forex trading account, forex brokers are willing to give you a very high margin. The leverage is as high as 200:1. In other words, in the mini forex account, there is a small margin deposit required fixed at $50 for per lot traded. This amounts to a stunning leverage of 200 to 1 (10,000/50 = 200).
By trading mini lots like this, your risk is reduced. Your potential loss is substantially less because of the small capital involved when compared to the normal full trading account.
Secondly, I am sure you have heard the sorrowful tales of those who lost their money trading in forex or stocks and shares or futures and commodities. As only about 10% of forex traders consistently make money, the next question is how can you increase the chances of your success as a mini forex trader?
In trading, APPLIED knowledge is the key to wealth creation.
So your task is to acquire that important knowledge and learn to trade profitably. With the advent of technology and the high speed desktop computers, it is now possible to shorten the learning curve. By finding a mentor who is experienced and successful, you can very quickly clone yourself into the mould of your mentor, following his most profitable trading techniques.
You can now gain years of trading experience by spending weeks on a trade simulator, practising your best selected forex trading strategy under the guidance of your mentor. If that is not enough, you can still reduce the risk further by using a demo account before you start trading.
Coupled with the use of a mini forex trading account, the risk is substantially reduced in trading.
Once you are consistently profitable in your simulated trades and your profitable trades are substantially more than your losing trades, then it is time for you to apply that knowledge and enter the real world of forex trading using a mini forex trading account.
By adopting a proven trading technique from a successful mentor, acquiring the necessary trading experience and skills with a trade simulator and practising on a demo account, you will have the best opportunities to start creating wealth from day one of your trading career as a forex trader.
Be aware of the downside risks as well because like all trading, mini forex trading do carry some risk. Follow the risk management principles in your trading methodology and keep to your safety stops. You can be on the way to become a profitable and successful trader with mini forex if you follow this proven method of learning and education.
Article Source: http://EzineArticles.com/?expert=Peter_Lim
An Introduction to Mini Forex Trading
The Mini FX account could be useful in assisting traders for developing a disciplined, balanced forex trading strategy with no focusing extremely on profits and losses. Relatively forex traders with small balances tend to grip on their equity fluctuations and base trading decisions on moving reactions to these fluctuations sometimes particularly when trading 100,000 currency unit lots in a standard account.
Many forex traders refuse to agree to closing-out failed trades at a loss, as they expect that the foreign exchange market would go round in their favor. Many of them would also have a tendency to take profits directly when the forex market moves in the wanted direction, other than maximizing their gains by permitting profits to run. However with less capital at bet in a Mini FX account, you could simply grow a disciplined trading methodology along with the self-assurance wanted to be a winning currency trader without the anxiety and distractions, which come with large P&L swings.
Money Forex Mini account was planned for those who are fresh to the forex account. Mini Forex account trades in lesser deal sizes of ten thousand units that is 1/10th the size of the typical trading account. The smaller trade size gives forex traders the chance to trade live with less actual risk to the forex market. This Mini account assists traders to know well about the Money FX and to get familiar with them.
Mini accounts are peaceful for traders who are knowledgeable in trading with a demo account, and would like to earn more knowledge before opening a standard GFT trading account. Without taking the risk of capital in huge amounts, mini accounts allow traders can turn into more familiar and satisfied trading with award-winning software. Due to the smaller lot sizes, lesser minimum account deposit needs and the capability to use higher leverage, mini accounts permit beginner forex traders to develop trading strategies and build self-assurance in the FX market. With obtainable leverage of up to 400:1, you could trade more capably by getting one of the highest leverage ratios in the forex trading market through GFT.
Uma is a Copywriter of online forex trading . She written many articles in various topics such as forex day trading,forex trading system.For more information : contact her at 1worldforex1@gmail.com
Many forex traders refuse to agree to closing-out failed trades at a loss, as they expect that the foreign exchange market would go round in their favor. Many of them would also have a tendency to take profits directly when the forex market moves in the wanted direction, other than maximizing their gains by permitting profits to run. However with less capital at bet in a Mini FX account, you could simply grow a disciplined trading methodology along with the self-assurance wanted to be a winning currency trader without the anxiety and distractions, which come with large P&L swings.
Money Forex Mini account was planned for those who are fresh to the forex account. Mini Forex account trades in lesser deal sizes of ten thousand units that is 1/10th the size of the typical trading account. The smaller trade size gives forex traders the chance to trade live with less actual risk to the forex market. This Mini account assists traders to know well about the Money FX and to get familiar with them.
Mini accounts are peaceful for traders who are knowledgeable in trading with a demo account, and would like to earn more knowledge before opening a standard GFT trading account. Without taking the risk of capital in huge amounts, mini accounts allow traders can turn into more familiar and satisfied trading with award-winning software. Due to the smaller lot sizes, lesser minimum account deposit needs and the capability to use higher leverage, mini accounts permit beginner forex traders to develop trading strategies and build self-assurance in the FX market. With obtainable leverage of up to 400:1, you could trade more capably by getting one of the highest leverage ratios in the forex trading market through GFT.
Uma is a Copywriter of online forex trading . She written many articles in various topics such as forex day trading,forex trading system.For more information : contact her at 1worldforex1@gmail.com
Benefits of Mini FOREX Trading Accounts
Mini Forex accounts are an excellent way for traders, new to the Forex market, to open an account and start trading with much less required capital than a regular Forex account. A Forex mini account can often be opened with as little as $250, whereas a regular Forex account usually needs to be opened with upwards of $2,500. With a mini account, you can enjoy many of the same benefits offered by a regular Forex account, with out having to risk a large amount of money. Forex mini accounts are with out a doubt the best way to learn Forex trading!
Mini Forex accounts are an excellent way for traders, new to the Forex market, to open an account and start trading with much less required capital than a regular Forex account. A Forex mini account can often be opened with as little as $250, whereas a regular Forex account usually needs to be opened with upwards of $2,500. With a mini account, you can enjoy many of the same benefits offered by a regular Forex account, with out having to risk a large amount of money. Forex mini accounts are with out a doubt the best way to learn Forex trading!
Mini account does not necessarily translate into 'mini profits'. One of the best features of trading the FX market is leverage. Leverage allows you to trade more of any currency pair than you have money in your account, this is possible because of the liquidity of the foreign exchange market. The Forex market allows traders to use leverage of up to 200 to 1, or more. This means that with an account balance of $250, you would be able to trade up to $50,000 worth of mini lots. This presents an excellent opportunity to make huge profits from very small changes in the Forex market. However, trading with such high leverage may not always be appropriate, though having the option available provides traders with an increased amount of flexibility with their Forex trading.
Trading with a mini FX account can be a great way for traders to develop disciplined, rational Forex trading strategies, while avoiding excessive focusing on profits and losses. Greed is one of your biggest enemies when it comes to trading any commodity on any market. When trading in a standard Forex account, some traders with relatively small account balances may tend to fixate on their equity and sometimes base trading decisions on emotional reactions to balance fluctuations. When you have less capital at stake with a FX mini account, however, you can develop a disciplined trading method and build up your confidence without the anxiety and distractions associated with larger equity fluctuations.
When you are ready to choose a mini Forex broker, be sure to do your homework and research a large number of brokers. Read feedback from other traders who have used the Forex brokers you are interested in. What commissions do they charge, and is your capital fully insured and secure with the broker in question.
Choosing the mini Forex trading account that is right for you may take some time and research, but it will be well worth it in the long run. Be sure to educate yourself as much as possible on the Forex market and currency trading, this will lead to better decisions in all aspects of your trading. A great place to start is http://investing4dummies.googlepages.com an excellent FOREX investment resource with lots of valuable information on the FX market and more!
Mini Forex accounts are an excellent way for traders, new to the Forex market, to open an account and start trading with much less required capital than a regular Forex account. A Forex mini account can often be opened with as little as $250, whereas a regular Forex account usually needs to be opened with upwards of $2,500. With a mini account, you can enjoy many of the same benefits offered by a regular Forex account, with out having to risk a large amount of money. Forex mini accounts are with out a doubt the best way to learn Forex trading!
Mini account does not necessarily translate into 'mini profits'. One of the best features of trading the FX market is leverage. Leverage allows you to trade more of any currency pair than you have money in your account, this is possible because of the liquidity of the foreign exchange market. The Forex market allows traders to use leverage of up to 200 to 1, or more. This means that with an account balance of $250, you would be able to trade up to $50,000 worth of mini lots. This presents an excellent opportunity to make huge profits from very small changes in the Forex market. However, trading with such high leverage may not always be appropriate, though having the option available provides traders with an increased amount of flexibility with their Forex trading.
Trading with a mini FX account can be a great way for traders to develop disciplined, rational Forex trading strategies, while avoiding excessive focusing on profits and losses. Greed is one of your biggest enemies when it comes to trading any commodity on any market. When trading in a standard Forex account, some traders with relatively small account balances may tend to fixate on their equity and sometimes base trading decisions on emotional reactions to balance fluctuations. When you have less capital at stake with a FX mini account, however, you can develop a disciplined trading method and build up your confidence without the anxiety and distractions associated with larger equity fluctuations.
When you are ready to choose a mini Forex broker, be sure to do your homework and research a large number of brokers. Read feedback from other traders who have used the Forex brokers you are interested in. What commissions do they charge, and is your capital fully insured and secure with the broker in question.
Choosing the mini Forex trading account that is right for you may take some time and research, but it will be well worth it in the long run. Be sure to educate yourself as much as possible on the Forex market and currency trading, this will lead to better decisions in all aspects of your trading. A great place to start is http://investing4dummies.googlepages.com an excellent FOREX investment resource with lots of valuable information on the FX market and more!
Profiting From Forex Trading Without A Lot of Cash
Mini forex trading is a way for people without a lot of money to trade the forex. It's also ideal for fthose brand new to forex trading.
Mini forex trading allows those new to forex trading to get a feel for it wihtout risking the amount of capital you would normally use when trading the forex.
So how can mini forex trading help you to make trading profits?
The reason for the 'mini' is obvious. The forex trading contracts are much smaller than the typical forex trading contracts. Mini contracts are about one tenth the size of a typical forex trading contract.
Mini forex trading is an advisable way to start trading the forex if you are staring with a small sum of money. You can test various forex trading systems without a lot o risk, keep good records on your trades and the result, and refine your trading techniques.
Then, as your trading improves and you build your portfolio, you can graduate from mini forex trading to larger, more typical forex trading contracts with confidence that you have a profitable trading system in place.
You can open a mini forex trading account with a lot less money, usually around $300 instead of the thousands required for a typical forex account. The high leverage available to forex traders still applies but you are obviously risking a lot less money in a mini forex account.
Keep in mind, your money is just as much at risk in a mini forex trading account as it is in a regular account. You just don't have as much at risk to lose. But you can still lose it all, and then some, due to the leverage options available.
This means that you need a trading system in place and you must adhere to that system with iron fisted discipline and not let emotion get in the way and cause you more problems and headaches.
Even in a mini forex account, you still need to know what you are doing and be familiar with various forex trading ideas and systems such as trade signals, proper chart points, targets, stop-loss and more.
With the right strategies in place, mini forex trading can be quite profitable but you need to do your homework before risking your money.
Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading
Mini forex trading allows those new to forex trading to get a feel for it wihtout risking the amount of capital you would normally use when trading the forex.
So how can mini forex trading help you to make trading profits?
The reason for the 'mini' is obvious. The forex trading contracts are much smaller than the typical forex trading contracts. Mini contracts are about one tenth the size of a typical forex trading contract.
Mini forex trading is an advisable way to start trading the forex if you are staring with a small sum of money. You can test various forex trading systems without a lot o risk, keep good records on your trades and the result, and refine your trading techniques.
Then, as your trading improves and you build your portfolio, you can graduate from mini forex trading to larger, more typical forex trading contracts with confidence that you have a profitable trading system in place.
You can open a mini forex trading account with a lot less money, usually around $300 instead of the thousands required for a typical forex account. The high leverage available to forex traders still applies but you are obviously risking a lot less money in a mini forex account.
Keep in mind, your money is just as much at risk in a mini forex trading account as it is in a regular account. You just don't have as much at risk to lose. But you can still lose it all, and then some, due to the leverage options available.
This means that you need a trading system in place and you must adhere to that system with iron fisted discipline and not let emotion get in the way and cause you more problems and headaches.
Even in a mini forex account, you still need to know what you are doing and be familiar with various forex trading ideas and systems such as trade signals, proper chart points, targets, stop-loss and more.
With the right strategies in place, mini forex trading can be quite profitable but you need to do your homework before risking your money.
Learn more about forex trading tips and tactics for more profitable currency trades at http://www.forextradingtactics.com where Richard Pfaeltzer, an investor and freelance investing and success writer, contributes articles on forex and currency trading
The Best Way to Learn Forex
With approximately $1 trillion begin exchanged every day, it's clear why so many newcomers are interested and eager to learn forex trade. While there is no substitute for experience when it comes to trading currency, there are a number of shortcuts which one can take to give themselves a generous jump start in the market.
The best way to get started and learn forex trading is through picking up some first hand experience which you gain from a forex demo account. As you might guess from the name, a forex demo account affords you the unique and risk free opportunity of trading within the real market under real market conditions without investing any real money. Instead you'll be trading with fake or "virtual" money to track your losses and gains with.
This is a great way to learn forex because you'll be trading as I said under real market conditions. The bonus is that you'll be willing to make the learning mistakes that you wouldn't normally risk if you were trading with real money.
The best way to go about securing a forex demo account comes through forex trading programs which typically include one. If you're new to or unsure of what a forex trading program entails, think of it as a handicap to give yourself which even forex experts utilize on a daily basis. But how do forex programs benefit you?
Forex trading programs enable you to trade both more efficiently and more accurately, two areas in the forex market which measure success. In efficiency, trading programs keep a 24/7 watch over the market and most are sophisticated enough to trade on your behalf and in your best interest around the clock, as well, so that you don't have to.
If you want to know how this works for you, let's say for example that you are invested in a profitable trade, but the market suddenly shifts out of your favor. If left unattended, you could stand to lose a great deal of money. Unless you are able to recognize this change and act on it within minutes, as unlikely as that is, you will lose money. Forex trading programs were designed in part for this very reason. At the earliest indication that your investment is about to go bad, your trading program recognizes this and trades away the now bad investment, thus shielding you from losses.
Forex trading programs also allow you to trade more accurately as many come with trend indicators. These indicators take the information which they gain from watching over the market and recognize the beginnings and ends of profitable trends. You can utilize this information to trade ahead of the curve, early, and confidently, and get out before it goes south.
The best of these programs are tested for months or years in advance to ensure their accuracy, and continue to be updated for free and for life from their publishers. If you want the most accurate information affecting your trades, there is no substitute for forex trading programs and their trend indicators.
Don't wait any longer, begin generating some reliable and guaranteed income and start your path to financial independence today. Visit http://www.forexautotradingreviewed.com for in depth reviews on the leading forex trading programs available today.
The best way to get started and learn forex trading is through picking up some first hand experience which you gain from a forex demo account. As you might guess from the name, a forex demo account affords you the unique and risk free opportunity of trading within the real market under real market conditions without investing any real money. Instead you'll be trading with fake or "virtual" money to track your losses and gains with.
This is a great way to learn forex because you'll be trading as I said under real market conditions. The bonus is that you'll be willing to make the learning mistakes that you wouldn't normally risk if you were trading with real money.
The best way to go about securing a forex demo account comes through forex trading programs which typically include one. If you're new to or unsure of what a forex trading program entails, think of it as a handicap to give yourself which even forex experts utilize on a daily basis. But how do forex programs benefit you?
Forex trading programs enable you to trade both more efficiently and more accurately, two areas in the forex market which measure success. In efficiency, trading programs keep a 24/7 watch over the market and most are sophisticated enough to trade on your behalf and in your best interest around the clock, as well, so that you don't have to.
If you want to know how this works for you, let's say for example that you are invested in a profitable trade, but the market suddenly shifts out of your favor. If left unattended, you could stand to lose a great deal of money. Unless you are able to recognize this change and act on it within minutes, as unlikely as that is, you will lose money. Forex trading programs were designed in part for this very reason. At the earliest indication that your investment is about to go bad, your trading program recognizes this and trades away the now bad investment, thus shielding you from losses.
Forex trading programs also allow you to trade more accurately as many come with trend indicators. These indicators take the information which they gain from watching over the market and recognize the beginnings and ends of profitable trends. You can utilize this information to trade ahead of the curve, early, and confidently, and get out before it goes south.
The best of these programs are tested for months or years in advance to ensure their accuracy, and continue to be updated for free and for life from their publishers. If you want the most accurate information affecting your trades, there is no substitute for forex trading programs and their trend indicators.
Don't wait any longer, begin generating some reliable and guaranteed income and start your path to financial independence today. Visit http://www.forexautotradingreviewed.com for in depth reviews on the leading forex trading programs available today.
Advantages of Managed Forex Account
Forex market
attracts many people due to high liquidity, 24 hour trading, rather low startup costs, and a number of other attractive and lucrative reasons. However, some traders are unable to sufficiently learn or trade currency due to a full time job or other reasons. Also, many investors like to supplement their existing portfolio without having to learn a completely new market. This is where the "managed Forex account" comes in. A managed Forex account is an established live Forex account funded by the investor, and traded by a company or professional. This allows the investor a reasonable rate of return on an account he does not necessarily have to trade himself, and the opportunity to be a part of the largest currency exchange market in the world.
There are obviously many up sides to a managed Forex account. The investor is able to achieve a steady rate of growth without having to spend all the necessary time and effort to trade the money himself. The Forex market is a very liquid market as well, giving the investor a much more flexible means of withdrawing funds from the managed Forex account. Also, trading currency allows profit potential in both rising and falling markets, giving the experienced money manager more opportunities to grow the investor's account.
Two of the main types of managed Forex accounts are those traded manually, and those traded by an automated Forex trading software. Automated Forex trading software automatically trades currency based on a hard coded set of rules. A coder will write the system and money management rules into a variety of programming languages to produce software that could provide a more regulated steady rate of return for the managed Forex account than the manual trader. This gives the ability of the company or professional offering managed Forex accounts to advertise a set rate of monthly (or yearly) growth.
As a managed Forex account seems like a very lucrative direction to take in the Forex market, some people may still be drawn away from it for a few select reasons. Usually, many commercial brokers and managed Forex trading companies have a minimum for the account to be traded. These minimums are usually around $5,000 - $10,000, and prove a hefty starting cost to the average trader. Also, many of these companies can (and usually do) promise high returns. In spite of these statements, the majority of companies charge a monthly management fee to your managed Forex account. If your monthly return is less than the standard monthly charge, your managed Forex account will be in the negative even though before the fee, you were positive.
Managed Forex trading accounts can be an excellent way to grow a large account, or provide a steady rate of growth over a long period of time without the hassles and emotional swings of trading currency yourself. If an investor has both the capital and a reputable investment company or professional, a managed Forex account could prove to be a wonderful investment opportunity.
Article Source: ABC Article Directory
PanaMoney Technologies, Inc. is a legally registered managed Forex trading company offering managed Forex accounts with up to 2.8% daily profit. Fully transparent: watch Forex trading sessions REAL TIME! Bank transfers and other payment methods are accepted. The minimum amount for investing is as low as 30 USD. Managed Forex accounts with PanaMoney Technologies, Inc.: www.PanaMoney.net
attracts many people due to high liquidity, 24 hour trading, rather low startup costs, and a number of other attractive and lucrative reasons. However, some traders are unable to sufficiently learn or trade currency due to a full time job or other reasons. Also, many investors like to supplement their existing portfolio without having to learn a completely new market. This is where the "managed Forex account" comes in. A managed Forex account is an established live Forex account funded by the investor, and traded by a company or professional. This allows the investor a reasonable rate of return on an account he does not necessarily have to trade himself, and the opportunity to be a part of the largest currency exchange market in the world.
There are obviously many up sides to a managed Forex account. The investor is able to achieve a steady rate of growth without having to spend all the necessary time and effort to trade the money himself. The Forex market is a very liquid market as well, giving the investor a much more flexible means of withdrawing funds from the managed Forex account. Also, trading currency allows profit potential in both rising and falling markets, giving the experienced money manager more opportunities to grow the investor's account.
Two of the main types of managed Forex accounts are those traded manually, and those traded by an automated Forex trading software. Automated Forex trading software automatically trades currency based on a hard coded set of rules. A coder will write the system and money management rules into a variety of programming languages to produce software that could provide a more regulated steady rate of return for the managed Forex account than the manual trader. This gives the ability of the company or professional offering managed Forex accounts to advertise a set rate of monthly (or yearly) growth.
As a managed Forex account seems like a very lucrative direction to take in the Forex market, some people may still be drawn away from it for a few select reasons. Usually, many commercial brokers and managed Forex trading companies have a minimum for the account to be traded. These minimums are usually around $5,000 - $10,000, and prove a hefty starting cost to the average trader. Also, many of these companies can (and usually do) promise high returns. In spite of these statements, the majority of companies charge a monthly management fee to your managed Forex account. If your monthly return is less than the standard monthly charge, your managed Forex account will be in the negative even though before the fee, you were positive.
Managed Forex trading accounts can be an excellent way to grow a large account, or provide a steady rate of growth over a long period of time without the hassles and emotional swings of trading currency yourself. If an investor has both the capital and a reputable investment company or professional, a managed Forex account could prove to be a wonderful investment opportunity.
Article Source: ABC Article Directory
PanaMoney Technologies, Inc. is a legally registered managed Forex trading company offering managed Forex accounts with up to 2.8% daily profit. Fully transparent: watch Forex trading sessions REAL TIME! Bank transfers and other payment methods are accepted. The minimum amount for investing is as low as 30 USD. Managed Forex accounts with PanaMoney Technologies, Inc.: www.PanaMoney.net
Running Multi-Strategies in a Macro Trading Portfolio
Macro trading is one of the most flexible trading styles in existence. As a macro trader your job is to focus on the best risk to reward opportunities you can find regardless of whether that opportunity is in domestic fertilizer companies or in Namibia government bonds. The idea is that it is important to cast a wide net so that you can find the best opportunity.
This of course brings us to running multiple strategies. This benefits you in several different ways. Using multiple strategies will allow you to better follow and actually find trades in different markets. Running multiple strategies will also allow you to get better diversification.
Anyone that is taking a macro trading approach can benefit from different types of diversification. Macro already looks at different asset classes such as equities, fixed income, commodities, currencies, and real estate. But there are other types of diversification as well. You can diversify across different strategies within each asset class as well as using strategies that work on different time frames.
If you have strategies that look at the next few days, some that look at the next few weeks, the next six months or so, and then strategies that are very long term in nature you will be able to capture alpha everywhere that is presents itself. This will allow you to generate more consistent returns while taking on less risk which is something that we all want.
So what are some of the different strategies that you can run? Here is a list although it is not exhaustive. Relative value fundamental equity, special situations, event driven, distressed, currency arbitrage, long term trend following, convertible arbitrage, options arbitrage, closed end fund arbitrage, fixed income arbitrage, capital structure arbitrage, statistical arbitrage, volatility trading, and reversion to the mean. Using a few of these strategies in addition to plain vanilla directional trading can enable you to capture more alpha then you otherwise could. They also let you find the best risk to reward opportunities no matter what you are trading.
Most traders find that they are better able to follow multiple strategies and multiple markets by building different models. At most global macro funds as well as our service traders use several different software programs as well as a large number of models that are tracked in Excel and we are not alone. Most global macro funds both large and small run multiple model driven strategies. The simple reason is because there is only so much time in the day. Since we only have 24 hours in the day and only have two eyes, by using software we are able to spot far more inefficiencies then we would be able to spot on our own.
Learn more about Systematic Global Macro Trading at The Macro Trader.
http://www.themacrotrader.com/2007/10/31/systematic-investing-and-trading
This of course brings us to running multiple strategies. This benefits you in several different ways. Using multiple strategies will allow you to better follow and actually find trades in different markets. Running multiple strategies will also allow you to get better diversification.
Anyone that is taking a macro trading approach can benefit from different types of diversification. Macro already looks at different asset classes such as equities, fixed income, commodities, currencies, and real estate. But there are other types of diversification as well. You can diversify across different strategies within each asset class as well as using strategies that work on different time frames.
If you have strategies that look at the next few days, some that look at the next few weeks, the next six months or so, and then strategies that are very long term in nature you will be able to capture alpha everywhere that is presents itself. This will allow you to generate more consistent returns while taking on less risk which is something that we all want.
So what are some of the different strategies that you can run? Here is a list although it is not exhaustive. Relative value fundamental equity, special situations, event driven, distressed, currency arbitrage, long term trend following, convertible arbitrage, options arbitrage, closed end fund arbitrage, fixed income arbitrage, capital structure arbitrage, statistical arbitrage, volatility trading, and reversion to the mean. Using a few of these strategies in addition to plain vanilla directional trading can enable you to capture more alpha then you otherwise could. They also let you find the best risk to reward opportunities no matter what you are trading.
Most traders find that they are better able to follow multiple strategies and multiple markets by building different models. At most global macro funds as well as our service traders use several different software programs as well as a large number of models that are tracked in Excel and we are not alone. Most global macro funds both large and small run multiple model driven strategies. The simple reason is because there is only so much time in the day. Since we only have 24 hours in the day and only have two eyes, by using software we are able to spot far more inefficiencies then we would be able to spot on our own.
Learn more about Systematic Global Macro Trading at The Macro Trader.
http://www.themacrotrader.com/2007/10/31/systematic-investing-and-trading
A Great Opportunity for First-Time Investors
One of the best ways to get started in Forex trading is to begin by investing in a Forex mini account. You can open a mini account with as little as $250, and even $100 with some services. In contrast, a normal Forex account usually requires a minimum of $2,500 to open an investment in. And with a mini account, you will still enjoy most of the same privileges of a regular account holder.
In a standard Forex account, the lot or trading contract size amounts to 10,000 units of the base currency--in the case of USD, that would amount to $10,000. A mini Forex account handles only a percentage of a single lot, which specifically means that mini account contract is one-tenth the size of a regular Forex contract. The pip values in mini Forex trading are also one-tenth the normal value.
Getting into mini account trading essentially means that you are engaging in marginal trading. That means that you are leveraging your trades, that is, borrowing money to be able to perform a trade without having to put in the full amount required for a single lot. The money that you do put in from your own pocket is known as a marginal lot. For a mini account, the marginal lot for every $10,000 lot is $50, or a 200 to 1 leverage. When you start a mini account with a minimum of $250, you are trading five mini lots.
You may be concerned that the mini account requires a fairly large degree of leverage, 200 to 1. (In contrast, when day trading on stocks the leverage ratio is only 4 to 1 within a single trading day.) For obvious reasons, it is usually not an ideal proposition to take on a large amount of leverage in your investments. But this is the standard practice in mini Forex trading and is not considered over-leveraging. Also, the investor’s risk on a mini account is actually offset by the lower possible losses one can face in mini trading. The average loss in mini Forex trading is one-tenth the amount that would be lost in an equivalent trade on a regular Forex account. Because of this, it is easier to exercise a more disciplined trading strategy, as an investor generally finds it easier to let go of a small loss, whereas a larger loss may prompt a trader to hold on to a lot longer than one should (a bad trading strategy). Furthermore, because the high leverage in mini Forex trading allows you to trade a number of lots for a correspondingly small amount, the investor has more options and trading strategies available.
Mini Forex accounts are the recommended investment option for someone who wants to invest $10,000 or less in Forex trading. Using a mini account will allow an investor more staying power in the market as well as the ability to engage in multiple trades without over-leveraging.
Learn more about getting into Forex trading. View our latest articles about the Forex market at http://www.faso06.com
Article Source: http://EzineArticles.com/?expert=Joseph_Ducat
In a standard Forex account, the lot or trading contract size amounts to 10,000 units of the base currency--in the case of USD, that would amount to $10,000. A mini Forex account handles only a percentage of a single lot, which specifically means that mini account contract is one-tenth the size of a regular Forex contract. The pip values in mini Forex trading are also one-tenth the normal value.
Getting into mini account trading essentially means that you are engaging in marginal trading. That means that you are leveraging your trades, that is, borrowing money to be able to perform a trade without having to put in the full amount required for a single lot. The money that you do put in from your own pocket is known as a marginal lot. For a mini account, the marginal lot for every $10,000 lot is $50, or a 200 to 1 leverage. When you start a mini account with a minimum of $250, you are trading five mini lots.
You may be concerned that the mini account requires a fairly large degree of leverage, 200 to 1. (In contrast, when day trading on stocks the leverage ratio is only 4 to 1 within a single trading day.) For obvious reasons, it is usually not an ideal proposition to take on a large amount of leverage in your investments. But this is the standard practice in mini Forex trading and is not considered over-leveraging. Also, the investor’s risk on a mini account is actually offset by the lower possible losses one can face in mini trading. The average loss in mini Forex trading is one-tenth the amount that would be lost in an equivalent trade on a regular Forex account. Because of this, it is easier to exercise a more disciplined trading strategy, as an investor generally finds it easier to let go of a small loss, whereas a larger loss may prompt a trader to hold on to a lot longer than one should (a bad trading strategy). Furthermore, because the high leverage in mini Forex trading allows you to trade a number of lots for a correspondingly small amount, the investor has more options and trading strategies available.
Mini Forex accounts are the recommended investment option for someone who wants to invest $10,000 or less in Forex trading. Using a mini account will allow an investor more staying power in the market as well as the ability to engage in multiple trades without over-leveraging.
Learn more about getting into Forex trading. View our latest articles about the Forex market at http://www.faso06.com
Article Source: http://EzineArticles.com/?expert=Joseph_Ducat
Greatest Benefit For Small Investors
Mini forex trades was designed for people who have the willingness to start trading , but are not able to make large investments. Mini forex trading is also advisable for those individuals intending to continue trading on a larger scale and for a longer duration and helps them to get a feel of the market happenings.
It is evident from the word 'mini forex', that this kind of trading involves smaller acconts and contracts and is quite different when compared to the accounts that are normally traded in the market. The normal accounts that are being invested by the bigger players are about ten times the size of the smaller accounts that are being invested in the mini forex markets. However, holding a mini forex account ensures high quality and assurance.
Not all kind of people are advised to invest in a mini forex account. The people who should invest in this are those who are beginners in the trading market and have limited capital for investment. People who have the flair for investment and want to make it big in the stock markets are advised to take up mini forex trading. Also, those wanting to invest on a larger scale in due course are also advised to trade here, as mini forex trading builds confidence and helps in getting familiar with the market.
As mentioned earlier, a mini forex account requires smaller capital and usually from $300 up. As the amount invested is smaller and that it is one-tenth of a standard account, the risks involved with trading in a mini forex account are much lesser than compared to a standard account. However, the leverage is the same when compared to the standard account which is 200 to 1
The purpose of introducing mini forex trading was to lessen the risk taken by the investors. For example, in a mini forex trading account, traders with accounts below $4000 will be more successful than those with more than $12000. There will be times when the forex market will have problems resulting in risky trades.
There are certain strategies that an investor must adopt in mini forex trades. For example, if an investor wants to trade in large quantities in a regular account, he should concentrate completely on strategic decisions. There are times when some traders become careless due to wrong trades and take wrong decisions. Those who get their decisions right, increase their work potential. thereby enabling themselves in becoming major players.
However, in order to become highly successful in trading, every decision made must be
disciplined and strategic. By doing so, a trader will gain experience and know-how of trade signals and chart points. A trader can also improve his focus on strategy and can also come up with more informative ideas that would be helpful in trading without giving more importance to profit gain or losses. Mini forex trading builds confidence. Though loses occur, if a trader remains confident and positive, he will gain an experience that would be worth remembering. Also, mini forex trading is a step to becoming a virtuoso in trading.
As money making is an integral part of our lives, investing in mini forex trading helps in enhancing our decision making and also can be a hobby for those with a flair for investment. Mini forex can be a risk worth taking to gain such an experience if the right strategies are adopted. It acts a learning curve and also as a money making instrument for those involved in trading activities.
Abhishek is an expert at Online Trading and he has got some great Trading Secrets up his sleeves! Download his FREE 81 Pages Ebook, "Online Stock Trading Made Easy!" from his website http://www.Trading-Masters.com/766/index.htm.
It is evident from the word 'mini forex', that this kind of trading involves smaller acconts and contracts and is quite different when compared to the accounts that are normally traded in the market. The normal accounts that are being invested by the bigger players are about ten times the size of the smaller accounts that are being invested in the mini forex markets. However, holding a mini forex account ensures high quality and assurance.
Not all kind of people are advised to invest in a mini forex account. The people who should invest in this are those who are beginners in the trading market and have limited capital for investment. People who have the flair for investment and want to make it big in the stock markets are advised to take up mini forex trading. Also, those wanting to invest on a larger scale in due course are also advised to trade here, as mini forex trading builds confidence and helps in getting familiar with the market.
As mentioned earlier, a mini forex account requires smaller capital and usually from $300 up. As the amount invested is smaller and that it is one-tenth of a standard account, the risks involved with trading in a mini forex account are much lesser than compared to a standard account. However, the leverage is the same when compared to the standard account which is 200 to 1
The purpose of introducing mini forex trading was to lessen the risk taken by the investors. For example, in a mini forex trading account, traders with accounts below $4000 will be more successful than those with more than $12000. There will be times when the forex market will have problems resulting in risky trades.
There are certain strategies that an investor must adopt in mini forex trades. For example, if an investor wants to trade in large quantities in a regular account, he should concentrate completely on strategic decisions. There are times when some traders become careless due to wrong trades and take wrong decisions. Those who get their decisions right, increase their work potential. thereby enabling themselves in becoming major players.
However, in order to become highly successful in trading, every decision made must be
disciplined and strategic. By doing so, a trader will gain experience and know-how of trade signals and chart points. A trader can also improve his focus on strategy and can also come up with more informative ideas that would be helpful in trading without giving more importance to profit gain or losses. Mini forex trading builds confidence. Though loses occur, if a trader remains confident and positive, he will gain an experience that would be worth remembering. Also, mini forex trading is a step to becoming a virtuoso in trading.
As money making is an integral part of our lives, investing in mini forex trading helps in enhancing our decision making and also can be a hobby for those with a flair for investment. Mini forex can be a risk worth taking to gain such an experience if the right strategies are adopted. It acts a learning curve and also as a money making instrument for those involved in trading activities.
Abhishek is an expert at Online Trading and he has got some great Trading Secrets up his sleeves! Download his FREE 81 Pages Ebook, "Online Stock Trading Made Easy!" from his website http://www.Trading-Masters.com/766/index.htm.
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