So, How Does the Forex Market Stack Up to Stocks?

Ah, stocks. If there’s one thing that investors love to talk about, it’s stocks. That’s because stocks are something that’s discussed even on mainstream financial news points, which means that just about everyone knows what they are.

Stocks also provide a lot of variety. If you want to feel like you’re part of a certain company, you can always invest in the stock of that company. Then you feel like you’ve really got a say in how things really are. In fact, a lot of companies will let you vote in shareholder meetings if you own a certain amount of stock. Isn’t that just too cool for school?

Of course it is. There are nearly 4500 stocks listed on the NYSE, and another 3500 on the NASDAQ. You can do your research and build an amazing stock portfolio.

But if you’re like many investors, you might be growing tired of getting into the stock market game. There are plenty of movies about people that made it big in the stock market. These are pretty important people, and it goes without saying that you might want to be just like them. Yet times are definitely changing, and if you’re thinking about growing past that, then you might want to think about forex. This is actually a good decision, for a few reasons.

First and foremost, spot currency trading is all about the currency pairs. The major investors in forex only focus on four top pairs, and that’s a lot better than trying to figure out nearly 10,000 stocks all of the time. Are you going to be looking at all 10,000? Not at all. However, you will want to still look at the market movements as a whole in order to fine tune your portfolio. If you’re tired of that, you might want to start looking at forex trading in a different way.

As you might realize, you can’t trade stocks all the time. That means that you’re going to have to step out of stocks when the market is closed. Instead of not trading at all, you can build a better trading schedule with forex. This new market is actually a seamless 24 hour one, with trading going all the time. You can hit the U.S, Asian, and European markets with ease. It’s simply up to you to define how you want to trade. Gone are the days where you feel you have to be married to a certain time schedule in order to get things going properly.

The commissions are so much less with forex when compared to stocks. Of course you might wonder how brokers actually make their money. They handle things through the bid/ask spread, which is always transparent. There aren’t any hidden forex fees to be had, which is refreshing.

As much as it’s not mentioned, forex is actually open to everyone. This used to be a market that was limited to huge corporations only, but that’s no longer the case. Anyone can trade in forex, so why not check it out for yourself?

The True Differences Between Long Squeezes and Short Squeezes

Still interested in investing in the markets? All right! As you might have guessed, you have a lot to learn in terms of charts and data, but that’s okay — you can learn everything you need right there!

One term that keeps popping up in a lot of financial outlets is the “squeeze”. If you’re trying to keep up with what’s being said and having a hard time, you might need to actually read up on the concepts behind what’s being discussed. In this case, you need to understand long and short squeezes in order to figure out not only what they are, but how to handle them as they relate to your trading strategies.

Simply put, a squeeze of any kind is the market price temporarily moving against the longer term direction. This is a “squeeze” primarily when the movement is by a larger amount than first imagined. The squeeze will continue to move forward in the direction expected, but it might take a while.

A long squeeze tends to be the worse, because it’s when the market shifts downwards by a huge amount that tends to throw you off. Does it go back up? Yes, in time — you could be caught by a long squeeze for quite some time. This means that instead of being able to stay in a position as you imagine, you might have to use your stop loss function to back out of the trade before it really starts costing you a lot of money.

Avoiding the long squeeze will come in time. As a newcomer to day trading, you might find that you have to back out of positions a lot more often than you would like. However, over time you will get better at seeing when a long squeeze is going to occur. This is also why it’s so important to make sure that you’re actually reading the markets as they stand rather than just going through the motions and assuming everything can be handled by the chars along. Financial news really does make a difference, and press releases from businesses that are within the market sector still matter a great deal as well.

What about short squeezes? This is going to be just like the long squeeze, but a bit shorter. You will need to make sure that you adjust your position and go through your options either way.

And it cannot be stressed enough — you nee dot make sure that you’re actually learning true trading systems rather than just trading gimmicks. These are part of those “tips” that you hear thrown out on TV without proper analysis of the markets themselves. New traders tend to latch onto these in hopes of making fast money. It’s better to actually make sure that you can focus on the bigger picture rather than just sweeping in for profits without having any idea of how to make more profits.

We will cover just about every angle of investing that you can think of so that at the end of the day, you’re going to become an amazing trader!

Automated Systems Have Their Place – But Not Where You Think!

Let’s talk a minute about automated forex “robots”. This is something that comes up a lot amongst new investors, because they really feel that they just can’t trade without them. They will make so much money, they say. They will be able to finally give themselves the financial freedom that they always wanted to have. Is that really the case?

Well — yes, and no. You have to make sure that you understand forex before you invest in software. This really isn’t a push button solution. If you’re going to do any type of automated trading, you have to understand what the machine is trying to replicate. If you don’t understand that, then you’re really not going to have much of a clue when it comes time to start analyzing your trades.

The analysis portion is one of the top ways that forex people make money in the first place. If you’re not starting with that, then what’s the point of being a forex investor at all?

Forex robots are good for very specific purposes. For example, if you already have a strategy and you just need automation, then this is where you can get software involved. On the other hand, if you really don’t have any type of clue of what’s going on in the market, you are better off sticking to manual trading until you get a better grasp of everything going on.

You might be pulled in by the slick advertising that companies pick up. They can promise you a 500 percent return on your deposit every month, but that’s out of the bounds of reality. Challenge the company to let you see a real money forex account where this is happening and verified by a third party monitoring site. They are out there. If a company can’t back up their claims, then you need to steer clear of them.

If you’re doing anything on the MetaTrader platform, you’ll find a lot of Expert Advisors. These are pieces of software that do make your job a lot easier, but you will need to honestly look at everything going on still. They can be programmed to automatically execute trades on a live account. For all of their power, this can be dangerous as well. The software can only do what it is told to do. So if your logic isn’t perfect, the software’s logic isn’t going to be perfect.

There is a human element in forex that should definitely be embraced. Don’t give up — you can learn what it takes to be a successful forex investor!

Can Forex Make You Rich?

There are a lot of us that would like to become rich. It can be a dream to think about all the things that you would be able to buy if you had a lot of spare money or consider what you might invest it in to be able to get a fantastic income for the rest of your life.

There are lots of ways that people become rich, some inherit money, some have a successful business, some gamble, some buy good shares and some invest. Investing money can be a great way of getting more money. If you put your money in to something which does well, then you can increase the value of that money. This means that you can make more than if you put it in a savings account or something like that. There is an element of risk though.

With all types of investment you will risk losing your money. You will use the money to purchase something and that item might reduce in value so much that you get a very little amount of money back. However, there is far more money to be made from investments because you have a greater chance of what you have bought increasing in value as well.

This means that an investment like Forex is risky. You may find that fx trading can make you rich but it can also make you poor. Like anything, you have a better chance of making money if you know more about what you are doing. It is therefore a good idea to do a lot of research in to Forex and find out more about how to play the markets. With these things, there is never a trick as the market is always very difficult to predict. You need to be aware that however much knowledge you get, you will still have some risk. The more you learn, the more you reduce the risk. However, if there was an obvious pattern to investing, all of us would be rich by now.

Therefore the answer to whether Forex can make you rich is yes. However, it can also make you poor and therefore you need to be sensible with the money that you are spending to make sure that you do not lose anything that you cannot afford to lose. Also treat it like a game and never expect to make yourself rich, as you could be disappointed but hopefully will have a nice surprise if you do.

Will 2013 Bring a Good Forex Market?

Many people are hoping that the markets will pick up in 2013. After such a long period of recession all of the world is hoping things will improve. However, it is very difficult to predict what will happen in the future. The markets have looked like they are improving and then not done as well as hoped. What happens this year will depend on expectations and whether people start lending and spending again or not.

Even if things are picking up a bit, there is no guarantee that this will last, but on the other hand, a dip in the market may just be temporary. The market can behave in extremely unpredictable ways and often people behave in the wrong way when it does significantly change.

Some people have spent their whole lives trying to predict what the markets are likely to do. Some of them even invest money in the markets for a living. Some have done very well, but not everyone has. If there was a way to work out what would happen to the markets, someone would have sold the strategy and everyone would be doing very well out of it.

Each year does bring a different market, but until that year ends, no one knows for sure what is going to happen. Predictions will come and go but no one will know what will happen exactly. As you learn more about the market, you may be better able to make a guess about how it may fare in the future, but it will be a guess. You may feel confident enough to stake some money on it, but you need to be aware that you may be incorrect and there is a chance that you will lose that money.

A Closer Look at The New Generation of Forex Options

There’s something very important about forex options that you need to know — they could have a place in your portfolio. You see, the classic reaction of most forex traders is to rush into every single new thing that comes out. The truth is that forex options are fairly old, but the new generation presents both opportunity… and risk.

We would be remiss in just telling you to go out there and snap up forex options like candy. A lot of traders have that type of mentality, but it ends up costing them big in the end. If you don’t know what you’re getting into, you’re bound to make mistakes that really kill your portfolio. Options can be something that’s a game changer, but you do need to practice a bit of caution.

Of course, these are probably all tips that you’ve heard and practiced before. So let’s get to the whole point of this guide: forex options.

What we’re talking about here is actually called binary options, but not everyone calls them that. They can be called fixed return options or even digital options. The point is simple: once you set up a binary option, it has to be executed. In addition, the terms of the trade cannot be changed. So even if you see market data that indicates you might have slid in the wrong direction, you’re bound to still carry out the option order.

There are plenty of brokers out there that you can turn to, but we suggest going with one that truly has a platform that would allow you to engage binary options quickly. Doing your homework on the broker that you choose will ultimately become one of the most important steps that you take. Doing more research on how to work options into your trading pattern would also be wise.

Are there bonuses for choosing a new forex broker? Absolutely! You will need to make sure that you get the right broker anyway? Absolutely! Unfortunately, a lot of traders just end up going where the biggest bonus is, and that’s a mistake. Again, it cannot be stressed enough — doing your homework ahead of time is the best way to get things done. Looking at reviews from traders that have already used a platform w/ a heavy focus on binary forex options is a good thing. Yes, these steps take more time but if you’re looking at long term profits, this is really the only way!