Forex trading is a global phenomenon.

          Forex trading, or foreign exchange current exchange trading, is a global phenomenon. This is the single largest market in the world. There are many different market sectors that are involved with Forex trading. 

These include, but are not limited to; " Banks" Corporations" Governments" Individuals What is Forex trading you ask? At its simplest, Forex trading is currency being traded for another currency. 

         However, Forex trading is anything but simple. The market has massive trade volume and is very fluid. Not to mention the hundreds of different currencies being traded and their ever changing value.

Forex trading is a very focused area of trading, but the amount of time and energy most people and companies spend getting trained and educated on Forex trading and its inner workings and pitfalls, is at least as much time as it takes to learn the stock market.Because of the complexity, Forex Trading is not your typical overnight success operation. 

There are many large corporations, such as GCI Financial which is a market leader in this space.Forex trading is unique in that everyone does not have access to all of the same information and prices at the same time, as they do with the stock market. I won't get into specifics here, but basically there is a tiered level whereby different levels of access are given to the Forex traders and Forex firms.

The other main thing to remember about Forex trading is, until such time that the world adopts a single currency, Forex Trading will be around for a very long time.

Swing trading is one of the best ways to make money in forex

       Swing trading is one of the best ways to make money in forex trading, it's also a lot easier psychologically than trend following.It's therefore a great way to trade for novice traders. Over the last few weeks we have looked at some live examples:

Banked 4 profits, scratched one trade at break even and have one open. Let's look at it and another potential opportunity.First why is swing trading an easy way to trade?When we say is easy, we mean psychologically.You get in quick with low pre defined risk and you're normally out in 2 - 5 days with a good profit. 

This is much easier than long term trend following, in that you do not have to wait for months and see dips eat into your open profit.Long term trend following is highly profitable but requires a lot more discipline.We personally mix the two ways of trading to gain some diversification of style and smooth the equity curve.

Swing trading basics We normally look for important chart support and resistance and trade contrary to it.We wait for prices to test these areas and watch for stochastic momentum to fall against resistance or rise against support.Then we know the level has held and trade off it.We also use RSI and Bollinger bands to define targets and that's it.Nice and simple, but can be very profitable you can read more about this method in our other articles.

British Pound We are short at recent nearby highs and would look for a pop to the downside to Fridays low or near the middle of the Bollinger band.Stochastic is weak at present and odds favor a bit more to the downside.With swing trading you don't want to hang around to long, get out on specific target and that's very close now.Another opportunity Lets look at another potential opportunity that's could be shaping up. 

The euro is trading near its highs and the spike high on the chart is resistance. Stochastic momentum is waning and a cross with bearish divergence will put the odds in favor of the bears.The important point is to wait for confirmation of the crossover - the target is then Fridays low just above the middle of the center of the Bollinger band.

Finally The tools used swing trade are simple and easy to use, but that doesn't mean they can't make profits as we have shown.Importantly, for novice traders the discipline needed to trade this way is a lot easier.If you practice a bit and learn to spot the set ups you will soon be able to spot some great low risk high reward trades.

Firms on the Forex Market

        In the last article we showed you how foreign exchange participants do not place trades on a centralized market. Instead, each individual person and entity is essentially a little piece of a larger market. 

Well, now we’re going to explain the different firms that make up the currency market, and how you can get a bird’s eye view of how traders are moving their money around. Seeing how these traders engage in the foreign exchange market is as easy as watching the Commitment of Traders report.

Firms in Forex

 Traders in the COT report are broken into three major classifications:
 
Commercial – The traders in the commercial breakdown are the businesses (large, multi-national corporations) which use currency futures to hedge out their earnings in currencies different from their home country. By buying and selling futures, commercial traders can insulate their businesses from changes in the currency markets.
Non-Commercial Speculators – Non-commercial interest is made up of large individual investors and traders, banks, hedge funds, and other financial institutions. These traders are looking not to buy and sell to hedge out their foreign business profits, but to make a profit by correctly predicting the changes in the foreign exchange market. They’re in it for the money—these are the traders to watch!
Non-reportables – Non-reportable interest is made up of small investors who do not trade in large enough quantities to have to report their positions to the futures regulator, the Commodity Futures Trading Commission. This segment of the report is dedicated to smaller, retail investors, who make up only a small portion of total volume on the foreign exchange market.

Major Forex Players

Knowing how the major market players are placing their positions is a great way to see the foreign exchange market from a eagle’s eye view. Almost all traders and speculators should evaluate the Commitment of Traders report because it is, in essence, the best way to see how the major movers are playing foreign exchange.

The COT is also important because it solidifies the earlier portions of this guide—it shows the three major divisions in the foreign exchange market, and also how these players interface with currency trading. 

In knowing that this report exists, you are empowered with the ability to see how major market investors and traders are influencing the current prices.

Forex Training Program should include .....!!

         Should new Forex traders take Forex courses or join a Forex training program? Definitely yes; by now you have probably heard that only 5% of traders achieve consistent profitable results when trading the Forex market. The main reason for this is the lack of Forex education. Don’t get me wrong here, taking a Forex training program or a Forex trading course won’t guarantee profitable results, nothing can, but choosing the right Forex training program or Forex trading course will definitely put the odds in your favor.
Before spending any amount of money on any Forex trading course or Forex training program there are some important aspects you need to take in consideration. There are many training programs available, but not every one of them suits the needs of every trader.

The first thing you should be looking in a Forex training program is the content of the material. Unfortunately, most courses or training programs focus or spend most of the time on basic concepts. Though these basic concepts are important, spending most of the course on them won’t help the trader to make consistent results.
The following subjects are what I consider the most important aspects of trading and every training program or trading course should address:

Forex trading basics - Review basic concepts such as: margin, type of orders, a little background, bid/ask, rollover, etc. You need to make sure you understand every single concept to perfection.

Main drawbacks of Forex traders - Being aware of the common mistakes made by Forex traders and knowing how to handle them will prevent new traders from making those mistakes.

Technical and fundamental analysis - These are the two main approaches adopted by Forex traders. Knowing how to properly apply each concept will definitely put the odds in your favor.

The three pillars of Forex trading. I consider that these three subjects have the most impact on every trader trading account.

Forex trading system development - Having the right system is a must if you want to have consistent profitable results. Having a system that doesn’t fit you will cause a series of problems that will make your trading account vanish away (second guessing the system, not following your system, etc.)

Money management - This is considered by many successful traders to be the most important single aspect of trading. Money management helps to increase your profits geometrically and at the same time limit your losses (i.e. a good risk reward ratio of about 2:1 will make you money in a Forex trading system that is right only 38% of the time.)

Trading psychology - Being aware and knowing hot to handle the psychological barriers that affect every trader decision will put the odds in your favor.

Other important aspects every training program should include are:
Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking our trading as a business, risk and trade management.

Another important aspect you should take into consideration when choosing a Forex training program is the mechanics of it, getting to know how the training program works.

A good Forex course will have the following:

A live conference room, to apply everything learned under live market conditions.

One-on-one coaching, every trader has different needs and requires special attention. For instance a trader wanting to improve the system and requires individual feedback from the instructor about it.

Online trading course, a course that could be accessible through internet. A plus is a course where you are able to access the course at the convenient time for you, so you don’t have to change your lifestyle.

A forum, where members can talk just about everything related to the Forex market and the Forex training program.

Trading the Forex market is no easy task. It requires a lot of hard work. Making the right decision will definitely put the odds in your favor. Take your time when doing your diligence because it is a big and important step in a trader’s trading career.