The Forex trading is already a very popular kind of the accessible financial trading. It’s now more like a «people financial trading» with many traders treating it as some kind of the «home business» opportunity. The popularity of the on-line Forex trading (and the popularity of the Forex was insignificant before the on-line era) has began rather recently — about 8-9 years ago. Every new year brings us new changes and developments. What will be the future of the Forex market?

It may seem almost impossible but the Forex market will become even more popular than it is now. A lot of people has already heard about the Forex, but know little about it and never tried trading. If the past several years were dedicated to informing people about the Forex, the next few years will be about getting as many people as possible to actually try trading Forex, at least on demo. The increasing popularity will lead to an increased amount if the related information — analysis, trade ideas, systems, strategies, expert advisors, etc. People will start discussing Forex not only at the dedicated forums and chatrooms, but at the unrelated meetings and parties.

The trends will become less distinctive. The large amount of participants will mean a faster and more flexible reaction to the global events — like natural disasters, acts of terrorism, war conflict outbreaks, commercial news and so on. The volatility will rise also because of the wider range of the systems, strategies and the analytical reports.

The stricter regulation will also influence the market participants, attracting more conservative traders. The unregulated Forex brokers will also remain popular though because some traders will value the cheapness and the easiness of trading more than the comfort of being protected by the state’s laws.

Paid systems and strategies will continue to flourish despite the fact that the free similar version will be widely available. The new marketing techniques will do their work enriching all those who decide to create their own paid «get rich with Forex scheme».

If you want to be profitable in Forex it’s vital to know how to trade. But knowing when to trade is also a very important condition to succeed in Forex. The market behaves differently depending on the time of the day and the day of week. It’s well known fact to the experienced Forex traders that it’s better to trade when the market is busy and it moves in the large and predictable waves. But when the trading is slow and the volatility decreases, the market itself becomes unpredictable and it’s easy to lose your money. If you want to trade when the market is the most active then learn these three simple rules:

1. There are several major regional Forex trading sessions — Tokyo (0:00-9:00 GMT), London (8:00-17:00 GMT) and U.S (13:00-22:00 GMT).
2. The market becomes more active when those sessions overlap: Tokyo and London (8:00-9:00 GMT) and London and U.S. (13:00-17:00 GMT).
3. The trading is more active in the middle of the week — particularly Tuesday and Wednesday. Friday is the worst day to trade.
   

So, to trade with the best market conditions available you just need to trade on Tuesday and Wednesday from 8 to 9 AM GMT and from 1 to 5 PM GMT. Of course, not everybody can trade during these time periods. In this case, I’d recommend setting up stop and limit orders to catch the most juicy price movements.

Retail Forex market became very popular after the development of the on-line trading technologies. Millions of new traders are attracted to Forex each year. They try to earn profits trading the currencies, developing the new intraday strategies and gaining on the long-term trends. But why does the retail FX market exist? Is it only a way to earn money for the brokers and some lucky traders? Here is the list of some functions — obvious and not — that are performed by the retail Forex market:

1. Earning opportunity — this is probably the most popular, obvious and important function of the retail Forex market. It provides the earning opportunity to traders, brokers, affiliates, webmasters, marketing companies and a lot of other on-line industries. Without a promise of profits retail Forex market would be limited to a simple exchange of the physical or current-account money.
2. Extra liquidity — this is definitely a positive function of the retail currency market. Although, not many traders use huge amounts of cash on Forex, the total sum of the money provided by the retail customers adds a good chunk of liquidity to the Forex market.
3. Extra volatility — a not very positive function at a first glance. Retail Forex market makes the rate movement less smooth and more volatile as the traders prefer short-term trading, which leads to the sharp reactions on the daily news and technical signals. Excess volatility is bad for the long-term traders, but it can be good for those who know how to benefit from such markets.
4. Social function — many communities were formed around the Forex trading. Traders prefer to get help from other traders and they also like to share the knowledge that is related to Forex.
5. Technical strategy development — popularity of the Forex trading and especially the on-line and automated versions of this trading led to the creation of thousands of the automated trading strategies. Based on technical analysis some of such strategies can be applied not only in Forex trading but in many other industries.

Of course, this list can't be considered as full and complete, but these functions are the main attributes of the contemporary retail Forex market, in my opinion.

How To Increase Forex Profits 100% in 10 Minutes


Hey all,

In this article of mine, I am gonna show you guys how to increase your Forex Profits 100% i.e double.

It works for 99% of the short term FX traders. So if you are the casual amateur investor, read on!


- stop trading too much - widen out your stops - widen out your profit targets - and limit your trading in the direction of the trend indicated by 4 hour chart.

For an article on why to follow this trend check this out.

http://forex-trading4you.blogspot.com/2007/11/practical-course-for-forex-beginners.html

Now, moving to individual ones.


1) Stop trading so much

Yes, there are no commissions at all but the spreads you get are HUGE and believe it or not the spreads are reducing your profits by almost half!! Just follow this simple excercise and you will believe me.

2) Widen out your stops

Initial stop loss should be kept to a minimum of 23 points; I generally limit my use between 23 and 35 point stop losses for short-term trading.

3) Widen out your profit targets

Unless you think a trade can make you atleast100 points or more , dont plunge in the trade.

4) Always trade in the direction of the 4 hour chart

The real $$$ are made in the direction of the trend

Follow this Simple exercise

1) Download all your trades for the past year into an excel spreadsheet (if you don'thave an idea on how to do this, go ask your broker for instructions).

2) Determine the dollar value of the spread for each of the trades.

3) Sum up the total dollar value of all the spreads for all trades and add this value to your current account balance; this gives your spread adjusted account balance.

4) Take this spread adjusted current account balance and divide it by your opening balance at beginning of the year; the result will give you a percentage change.

5) Now, take your actual current account balance and divide it by your opening balance at beginning of year; the result again will give you a percentage change.

6) Subtract your spread adjusted year to date percentage change from your actual year to date percentage change.

7) That number will be 100% or more

8) Take the necessary steps as outlined above (1 to 4) and improve your results 100%

If you liked this article and it worked for you, i would be delighted to know so. Please do leave feed back.


You might like to read other Forex related articles in the Articles section or browse through our huge collection of forex ebooks!