Forex Tips
When it comes to Forex, we've been there, done that, now serving 102 tips in 14 categories ranging from Foreign Exchange Rates to Top Forex Apps.
The 5 Best Forex Apps
There are many forex apps on the market and each has their own pros and cons. Below we take a look at five of the best ones available.
1. MetaTrader on Android or iPhone
This app is available for free and is the most popular forex trading platform. It has the ability to allow traders to place orders and view current quotes, as well as multiple chart types and time frames to help the trader analyze currency pairs.
2. NetDania Forex on Android or iPhone
NetDania Forex is a popular free app that provides currency rates and global stock data. It utilizes sources from multiple news authorities and various indexes on the market. An added benefit is that it allows the trader to set up trend and cost notifications.
3. Trade Interceptor on Android or iPhone
This app is free and available on many devices and allows forex traders to view current quotes. Users can keep track of exactly what is going on in the market at any time and place. The only downfall of this app is that it doesn't allow users to trade within its interface.
4. Trade Optimizer on iPhone
This app currently costs $1.99, but it provides 14 critical trading calculators to aid traders in determining position sizing, managing risk, as well as conducting post-trade studies. Trade Optimizer app can immediately alert forex traders about compounding power or trade expectancy to show them just how rapidly their earnings can increase.
5. FXWare Currency on Android
Allowing you to quickly convert 160+ currencies this free app is a major player among its counterparts. FXWare Currency also includes charts, historical trends, and daily forex rankings. It grants you access to the latest market commentary and news.
With so many to choose from, we wish you luck on your journey of selecting the right one that fits your needs!
Speak Like a Forex Trader
Every discipline has its own lingo, and the craft of Forex trading is no different. Once you understand a few basic terms, you will be able to understand trading guides and speak with other traders like a seasoned professional. If you do not take the time to learn these simple terms, Forex lingo can be confusing.
Ask Price and Bid Price
An ask price is the lowest amount of money that a trader will accept to sell his currency. A bid price is the highest price that a trader is willing to pay in order to buy that currency. The bid price might be driven up over the ask price because of competition from other traders. Alternatively, if bid prices fall below the ask price, no trade might be made until the currency appreciates or the seller adjusts his ask price.
Appreciation vs. Depreciation
Appreciation simply refers to an increase in value of a specific currency. Likewise, depreciation refers to a decline in value. The value of one currency might be stated in terms of a certain amount of another currency. For example, you might read that Euros appreciated .03 against the U.S. dollar.
Currency Pair
Typically, you purchase one currency with another currency. For example, you might purchase Japanese yen with U.S. dollars. You will usually see this currency pair expressed as JPY/USD.
Currency Trading Education Resources
If you have already watched currency trading education videos, experimented with a demo account or asked questions on a traders forum, but still want more information before you commit to the forex market, there are many online resources available to help with currency trading education.
The National Futures Association (NFA) offers Forex Online Learning Program, an interactive currency trading education program meant for individuals interested in learning more about the forex market.
The Investor's Clearing House has a wealth of resources that are verifiable. They offer currency trading education in multiple formats.
The American Savings Education Council (ASEC) offers free public currency trading education regarding financial security for private and public traders.
The Better Investing Community offers information, training, resources and a community-based interface for investors and traders. This currency trading education resource is also recommended by the NFA.
Other sites to check for information include NASD and The National Endowment for Financial Education.
Questions to Ask During Forex Courses
During your forex courses, self-learning or when you watch forex videos, you should be asking yourself the following (and seeking the answers actively) fundamental questions:
-- What are currency pairs, and how does this amplify the structure of the forex market?
--What is a bid/ask price, and how does this impact trading?
--What is the spread, and how does the spread impact the bid/ask price or broker fees?
--What is a pip, and how do brokers use pips for their income?
--In forex, the equity value of all open positions verses the underlying market price is constantly in flux, how can a trader use this to their advantage?
--Forex is an over-the-counter market. Nearly all trades are done electronically, there is no NY Stock Exchange with people yelling and bustling about. How does this differ from the traditional ‘open outcry' stock market, and what are the benefits of trading electronically? More importantly, how can electronic over-the-counter trading help you formulate a trading strategy?
Currency Trading Education
In currency trading education, you should be learning a small amount of trading history, as well as the basic functions of currency trading. This includes knowing the trading instruments, currency pairs and pips. Your currency trading education should include how to use leverage at both high and low ratios to minimize risk and maximize profits. Currency trading education should also inform you of the costs and risks associated with the forex market, especially in regards to money management and overhead. Economic indicators and market indicators, as well as how these impact trade and currency values, should be a strong focus in your currency trading education.
Currency trading education should also focus on how to read technical and fundamental analysis, which will include how these are generated and interpreted. Furthermore, currency trading education cannot ignore how to trade using forex trading platforms, how to perform research and what resources are available. Currency trading education should help you develop a strategy for entering, trading and exiting the forex market.
Currency trading education should really show you what the forex market is, how it works, how to interpret charts and what resources you need to trade in the forex market.
Currency Training Courses
There is a wealth of forex information available online, including online video tutorials, telephone assistance and a trader's forum that will assist you in learning currency trading. For instance, some sites offer interactive learning courses and some are even free. Typically, you need to register as a member. After that, you can start the video presentation.
Some sites let you train to be a pro trader for several days. Check webinars for self-learning in currency trading courses. You can also pay to participate in currency trading courses through several vendors. You can find two-day courses that cover nearly all aspects of currency trading. There are also mini-courses and articles that are available for free.
