What is Forex and How to make money with Forex 5
Forex strategies - is it possible to make a lot of money with forex?
This is one of the last few forex articles here on Ideas on How to Become Rich about forex - one of the last few articles associated all things associated with forex and how to make money trading currencies. I must say here that all the other forex articles were researched and developed as this is an ideas on making money blog, and I am definitely not an expert in forex and not an expert in foreign currencies. I am rather good at investment and making money on the stock exchange for penny stocks and for standard blue chips, but that is about the extent of my knowledge and all other information here on my make money site here is to share ideas on how people can make money and the various approaches taken to various markets. My background is in Economics (Honours) and investment is my major theme here on this site. I am writing this honest preface to my article because today I am going to talk about what I have gleaned from my research on forex - and today's topic here is forex strategies. There are no guarantees in any article in the world and no guarantees for anything in this world that will tell you that you can definitely make money, but here are some key forex strategies that you may wish to consider:
1. Learn fundamental analysis and technical analysis cold, and either:
- choose either one of them and stick with it for your forex strategy and investment paradigm, or
- combined both approaches, which makes more sense; meaning that for a forex strategy you will research both on the general macroeconomy and market perspectives of fundamentals, as well as the technical, day to day movements of the price.
2. For technical analysis, and indeed forex in particular, you will need some kind of knowledge of mathematics and some tracking software for the latest information. There are two key ideas here:
a) you will need to know some mathematics, and in particular, Fibonacci numbers and the Fibonacci method for forex because apparently there is some major link between making money and your knowledge of this key information
b) for technical analysis and for forex you will need a constant stream of real, life data for currencies and this is not easily available unless you have the right connections, the right software and the right websites.
Therefore, the forex strategies here are: immediately find some contacts who have live and good experiences in forex strategies and forex trading, then get some software, preferably free, but if that is not possible, then get some that require some money and some sort of fees, and then start building up a whole list of websites that you need. Some websites might be educational, like Ideas on How to Become Rich, and some others might be educational and more advanced, and yet others might be data mining and currency news sites, and even others may be links to governments and to brokerages worldwide.
3. Perhaps for the most important of forex strategies is to get a winning approach for forex - for instance, be international, where you trade every currency that is major and that can make you money, regardless of whether or not you believe in the currency or the country, for that matter; choose not to be a speculator but a real investor, but then again, that is only my opinion, and of course your forex strategies can revolve around day trading and being totally technical analysis and data based rather than long term or anything like that. The key is that you make your own winning approach to forex strategy.
For example, you can have some successful trading strategies involving only simple moving averages, where you use an algorithm. The key is still to make sure that your upside is more likely than your downside. You can also use support and resistance levels, and that might be a good strategy to use, successful and simple and algorithm based, or commonsense based, if you like.
4. Research and continue to upgrade, both in terms of education and in terms of information regarding forex and forex news. At any early stage, this site proves invaluable and educational, but as time goes on, you move on and go to other more important educational sites and also to try your hands at some simulations and also some real money. Forex is reputedly good for making money, if you know how, so do try your very best and all the best for making money!
Hope you make lots of money with forex strategies and forex, good luck and all the best in your money making ventures!
What is Forex and How to make money with Forex 5
What is Forex and How to make money with Forex 4
What is Forex and How to make money with Forex 4
Forex fundamental analysis and forex technical analysis
In my earlier posts here on Ideas on How to Become Rich, I covered fundamental analysis and technical analysis. It is interesting and important to note that fundamental analysis and technical analysis are important to forex trading and making money using currency exchange as well. What is fundamental analysis and technical analysis in the context of forex?
Fundamental analysis in the context of forex means that someone looks at the macroeconomy of a country and the target currency; looks at the political situation of the country; national unemployment; tax policies and all the stuff like that in order to find out and measure the effects that these events and policies and situations will have upon currency values. In other words, the forex trader who uses fundamental analysis is using the same concepts and ideas to make money as the investor who invests in the stock market from the investment paradigm of fundamental analysis as well. The fundamentals of a company will affect the stock price ultimately; the fundamentals of a country will affect the currency values, ultimately, and that is what the forex trader is looking and watching out for in order to make money. At the same time, it is important to note that a currency does not just reflect the fundamentals, and there is an important role played by perceptions, ideas, rumours and anticipations and expectations of market participants.
Many other forex traders use technical analysis instead, which looks at values and movements of the currencies, and ignores the fundamentals of the country's economics and indicators that fundamental analysts take so seriously. The investor assumes that the movement of the currencies considers most of the factors inside it; movements of prices have causes and effects; history repeats itself. The main thing is that the technical analyst makes no forecasts way in advance but looks at the trends and prices, just like a technical analyst for stocks does his business, in order to make money.
Perhaps a cross comparison might help budding forex traders or forex beginners seeking to improve their knowledge, so do visit
technical analysis on Ideas on How to Become Rich
and
fundamental analysis on Ideas on How to Become Rich
to build up your investment and technical knowledge. More to come here in future posts on forex and how to make money with forex! Stay tuned here.
What is Forex and How to make money with Forex 3
Why utilise the forex market to make money? Why should I choose forex trading over other investments?
In this series I am talking about forex. I will now give reasons for picking forex trading over other investments or financial instruments.
The forex market is basically the market where currency is traded, and it is the largest financial market in the world. Until the 1990s only major players and big institutions could play this game, but now with the rise of the Internet even the small guy next door can play this game. Information, knowledge, an internet connection, and voila, one can join in the forex market and do currency trading.
Some of the popular, major currencies being traded worldwide:
USD
United States
Dollar
Buck
EUR
Euro members
Euro
Fiber
JPY
Japan
Yen
Yen
GBP
Great Britain
Pound
Cable
CHF
Switzerland
Franc
Swissy
CAD
Canada
Dollar
Loonie
AUD
Australia
Dollar
Aussie
There are many benefits to trading foreign currencies in the forex market. These are the major and most important reasons:
There are no commissions, no middlemen, no fixed lot size when trading, low transaction costs, a 24 hour market, no one can corner the market, leverage, high liquidity, free demo trading accounts, and even better mini and micro trading options are available.
There are no commissions: Brokers are compensated by the bid-ask spread, and so there are no commissions.
There are no middlemen: Spot currency trading eliminates the need for middlemen, and so you can trade directly on the market for a particular currency pair.
No fixed lot size: You can determine your own lot size instead of having a predetermined lot size.
Transaction costs are lower: The transaction costs are lower than most other investments.
24/7 forex market: The forex market never sleeps, unlike your local stock exchange.
No one can corner the forex market: The forex market is huge and hence no one can ever corner it and control it for extended periods of time, even countries and their central banks cannot corner it.
Liquidity in forex is high: You will also never be stuck in a trade because liquidity is very high.
You can have free demo trading accounts: In addition, you can train and practise your skills in forex before you go on to do a real life transaction and real life forex moves.
Minis and micros? Also, if you don’t have much money, you can do the mini and micro trading accounts, which allow people who have little money to start out in forex markets doing currency trading.
You will need some basic capital (your money) and a high speed Internet connection if you wish to get started in forex trading. Good luck and all the best! More to come on this site about forex, forex markets, forex strategies and tips and much more on becoming rich and making money.
What is Forex and How to make money with Forex 2
What is Forex and How to make money with Forex 2
In Ideas on How to Become Rich, we have now explored a new fields, called foreign exchange, and we will be looking into forex for ideas on how to make money and become rich.
Forex is basically the trading of currencies, and the trick is to make use of the discrepancies in currency values and prices in order to make money. Conceptually, that's easy enough for using forex to become rich, but there are of course many complicated technical details.
This section may get a little boring because it does not dive into forex right away but deals with terms and words associated with forex. All research is mine and I utilised the following resources on forex because I knew little about forex before researching into it on a major scale. Education is key to understanding forex as it is indeed a viable way to make money and might be the key to your financial success. The best educational resources for forex, and for beginners to forex, are:
articles on ezinearticles.com , of which one of the contributors to other financial and investment articles apart from forex, is myself (yours truly) and http://www.babypips.com/school/the_skinny_on_forex.html for complete beginners.
I do the research and the writing and the synthesis to save you time and effort, and then you can access the information and resources to make money and ideas all here on my website. My advice for beginners to forex is that the ezinearticles are only worth reading once you have learnt and mastered the basics, because most of them are actually advertisements for online programmes and other types of software that help you make money doing forex. That is to say: know what forex is first, learn all you can about forex, and learn strategies and moves for success in forex, and then currency trading will be a money spinner and money earner for you. Then read ezinearticles.
Definitions and terms associated with forex
long = buy
short = sell
These two key terms are the basics of forex that you definitely need to know.
the bid = the price at which you will sell
the ask = the price at which you will buy
the spread = the difference between the big and the ask
rollover = this depends and varies from firm to firm, but the main thing is: there is a rollover interest rate that a trader either pays or earns
demo trading = doing trading using a fake account that simulates a real account for forex
pip = the most common increment of currencies, the last decimal place of a quotation - don't worry, all forex brokers will do this calculation for you, and besides my brother doesn't know what a pip is either!
lots = forex is traded in lots, where a lot is $100,000 normally - you might have to confirm this as it may vary from country to country
margin = also known as the account margin, this is a minimum forex account size
margin call = the broker will call you when your account falls below margin requirements, so that you have to put up the difference
market order = order to buy and sell at the market price
limit order = order to buy and sell at a certain price
stop-loss order = is a limit order linked to an open trade to prevent additional losses
GTC = good till cancelled order - active in the market till you cancel it
GFD = good for the day order - active till the end of the trading day for forex
OCO = order cancels other order - a mixture of limit or stop loss orders
More to come on forex and how to make money with forex in future posts here on Ideas on how to become rich.
What is Forex and How to make money with Forex
What is Forex and How to make money with Forex - basics and introduction
In Ideas on how to become rich, we have covered all sorts of money, finance and investment topics ranging from investment basics, to fundamental analysis and technical analysis, CDs, mutual funds, savings and bonds, making money online and getting a good, high paying job, all as ideas on how to become rich by making money.
In the next few posts, I will be dealing with a topic on foreign exchange (forex) and how to make money with forex, and ideas and concepts related to forex. This will get a bit technical, just as it did with the technical analysis part of my writing (no pun intended).
In this post I will be dealing with the basics: what is forex?
In the forex market, what we are doing this time is buying and selling currencies. The goal is still to make money, just the same as investment in stocks and shares and all other financial devices and financial instruments. The object of forex trading is to make money by the buying and selling of currencies, so the key idea is that first you have to exchange one currency for another currency, and then later convert the second currency back into the first, so as to make yourself a profit.
This is because currencies fluctuate, due to many factors, such as economic factors (macroeconomic factors such as balance of payments, inflation, economic growth and others), political conditions, and basic human psychology (the same factors here that affect the stock market and capital gains and losses).
I would say that if you know how to invest in the stock market, picking up forex will be rather easy and a smooth ride for you because there are many similarities between stocks and forex. You will be happy to know that the fundamental analysis and technical analysis skills and concepts that you have learnt or can review in my earlier posts will come in really handy, because there are also two main approaches to trading currencies, and they are, yes you guessed it: technical and fundamental analysis.
However, of course, there are fundamental differences and dissimilarities in technical aspects of forex, which will be dealt with in the course of this Ideas on how to become rich blog.
The reason why I personally think that forex is a bad idea is that it requires monitoring and there are many variables to consider. Monitoring is that you need to have access to data and information, and despite the fact that economics says there is perfect information, there really is no such thing as perfect information. In addition, there are many variables to consider, and many are out of your hands. That is why I strongly prefer stocks and shares to forex. However, if you are good at analysis, and like numbers and math, forex will be very good for you because forex is just the kind of thing that might make you a lot of money. Information and research are key, and if you like doing tracking and investigation, as well as monitoring and evaluating data and prices, forex might turn out to be the correct idea to make you very rich.
More to come on forex on Ideas on how to become rich. Stay tuned!
How to become rich? Skills for getting a job part 7
How to become rich? Skills for getting a job part 7
In this series here on Ideas on How to Become Rich, I am covering a series on how to get a high paying job in order to make money. The aim of this website is of course on ideas on making money, and one of the best ways is to get a good job. The articles covered so far on "How to become rich - Skills for getting a job" have been on articles one to five in this series so far:
1. What job do you really want?
2. Interview skills, tactics and advice for getting that high-paying job
3. How to write an excellent CV that will earn you that good and highly paid job
4. How to get further education which will help you become rich eventually
5. Mentality and attitude for the job and for becoming rich
6. Negotiation tips and tactics
This post will deal with negotiation tips and tactics.
Why do we need to negotiate in order to become rich? Donald Trump and many other rich and powerful businessmen know the answer, and that is because negotiation helps you get what you want. If you want to become rich, and convince other people to give you what you want, then you need to learn the skills and ideas of negotiation to make money, promotion opportunities and more. If you negotiate with your boss for a pay rise cogently, you can make more money and be happier with yourself for the successful negotiation. If you can negotiate well, you will be paid more for your value and contributions to your company, as you can win and earn more contracts for your company.
Nido Qubein's ideas and advice on persuasion can be summed up and analysed as:
Ten Secrets of Persuasion
(1) Be positive. (2) Prospect. (3) Prepare. (4) Perform. (5) Be perceptive. (6) Probe. (7) Personalize. (8) Please (make them happy). (9) Prove. (10) Persist.
Nido Qubein's ideas and advice on persuasion are good, but can be improved by looking at the key elements of other general resources on negotiation skills and techniques.
1. Try to think win win and let both sides have what they want - this approach is always better than thinking in terms of losers and winners. For instance, when negotiating for a higher salary, always justify why you need to earn more money with the value, services, responsibilities and additional benefits you bring to the company that justifies you being paid more money.
2. Always try to have some sweetener to the deal, if it a bad one. For instance, tie one issue that is weaker with another issue that you can give, and that will make the other side happier (at no cost or little cost to yourself).
3. Negotiate with confidence and strength, and not from a position of inferiority - if in such a bad situation, try to make things to your advantage and turn the issues into one of your strengths. For instance, always make the deal in your favour and advantage, so that you can use your confidence and strengths.
4. Sometimes be prepared to walk away from a deal so that you can get either the deal that you want (they come running after you to offer you money or that pay raise) or you can get some better offer elsewhere (if the negotiations don't work out, at least have a plan B).
5. Research and read up more on negotiation skills and tactics. More ideas on deals and deal making can be found in Donald Trump's books, as I have read his Art of the Deal (1987) and his How to Get Rich (2004). Donald Trump seems to be the expert and boss in this area of negotiation and persuasion. Do read his works and judge for yourselves.
This concludes the series on "How to become rich - skills for getting a job". May you get a good job that pays well, and maintain it and keep it so that you can make money via salary increases, promotional opportunities and ever expanding job opportunities and benefits. Take care. Cheers!
How to become rich? Skills for getting a job part 6
How to become rich? Skills for getting a job part 6
Mentality and attitude
To become rich, one must not just have the right paying job, which is of course important, but also have the right mentality towards the job and life and making money. This post on Ideas on How to Become Rich is about the right mentality and attitude towards the job, promotions, career opportunities, and making money. I have a earlier post on attitude and more by Nido Qubein (click here to go to Nido Qubein) in Ideas on How to Become Rich, where I wrote about persuasion and success strategies. This is after all an ideas blog, so it is full of various ideas on making money, from finance to investment to making money online. In this series, to recapitulate, we are talking about how to get a high paying job in order to become rich.
Making money and becoming rich is also partly a mindset, rather than merely getting a good job. This post is therefore about having the right mindset. I am going to discuss a few elements: have confidence, be assertive, think positively, and continuously improve yourself.
Have confidence. After you get the job and work at it for a while, when it comes to asking for more pay and getting a higher salary, be confident and go for it. Have confidence in your behaviour and your mind and don't shy away from difficult tasks, difficult decisions and difficult questions. If you have to ask for higher pay, then ask for your deserved higher pay.
Be assertive and firm, but not pushy. There is a fine line between being pushy and being assertive. Being assertive is part of being confident. Why should you deserve a higher pay and more money than your colleagues? Why should you make more money than your colleagues? You need to justify yourself. Your mentality should be: I am worth more than X dollars and I should get paid more because of my talents and skills - I can do this and that, etc, and I have the right attitude and mentality. You may not think so, but having confidence and the assertiveness that goes along with it will enable you to make more money and get promoted faster, or get better tasks and jobs in your department.
Think positively. There is little point looking confident and looking assertive, if you don't think you will get that pay raise or that increase in your salary. Ask for more money with the correct mindset and think that you will get it and believe in it. Making money is partly based on this key aspect of your attitude... if you think you can make more money and actively do it, you will; if you think you cannot make more money, and actively or subconsciously seek to avoid making more money, then you will never improve in your job, because you're afraid of being promoted and getting more responsibilities. The pay in a job is not commensurate with your workload, but with your responsibilities and decision making levels. To make more money, get more responsibilities, and to get that, you need to think positive and have confidence and self assurance. (Some people think that NLP might help you in becoming more self confident. If you're interested in NLP, so look around and find out more about it. It might work for you.)
Get self-improvement books or self-improvement strategies to help you improve yourself. This just means lifelong learning is important... have the right attitude towards learning and always improve yourself. You can always improve your mind and your attitude. You can even improve your money making skills and strategies. However, it's not all about making money. There is sometimes more to life than just making money, so self-improvement is just for yourself. And your successful career. Cheers!
The final post on this series will be about negotiation skills and tactics. Some of the ideas will be from Nido Qubein and others will be from research I have done on ideas on how to become rich.
How to become rich? Skills for getting a job part 5
How to become rich? Skills for getting a job part 5
Here on Ideas on how to become rich, we are covering a series on how to get a high paying job in order to become rich. The articles covered so far have been:
1. What job do you really want? High pay or good job or both?
2. Interview skills for getting that high-paying job.
3. How to write an excellent CV that will earn and land you that high paying job.
4. How to get further education which will help you become rich.
5. Mentality and attitude for the job and for becoming rich.
6. Negotiation tips and tactics.
For your convenience of navigation, here are the links here to the other articles before this post on How to get further education online to become rich eventually.
How to become rich? Skills for getting a job
How to become rich? Skills for getting a job part 2
How to become rich? Skills for getting a job part 3
How to become rich? Skills for getting a job part 4
OK, why is it important to get education and become more educated if you want higher pay and make more money? It is very simple.
1. Educational qualifications are needed for occupational promotion - you will need a masters at least for reaching some managerial positions.
2. In addition, additional educational qualifications can help you make money not just by promotion, but also because certain jobs command more money. Finance, money and banking, investment, and economics are all apparently boring subjects, but they help you make more money because they can get you jobs that pay more.
3. Educational qualifications have been historically proven to be commensurate with salary and pay, which means that the higher your education, the higher your salary and the higher your pay. It's that simple.
How do you get better education, and especially if you do not want to go back to a physical campus? The current solutions to that are distance learning and online learning. Distance learning is when you study at your own time partly at home and partly in an educational institution. Online learning is when you learn entirely at home and from the Internet. This is my Get Your University Online link, if you wish to have a look and compare universities and courses.
As an example, my mother has an MBA. She started out working as a teacher, but the moment she received her MBA from a distance learning school (in Singapore it's called SIM - Singapore Institute of Management, I think), she later became promoted to head of Cambridge International. This shows clearly that further education is good for promotion opportunities, which helps you make more money, while enjoying and loving your job and what you do. You get paid more and you get to enjoy a high paying job.
By the time you have chosen and decided for yourself if you prefer making money or having a less well paying job that is more interesting; have done an excellent CV / resume; have finished your interview with a flourish and with great skill, you should be ready to maintain your job not just with a better education, but also improve on your mentality and attitude to keep that job and to keep on making more and more money, and also know some negotiation skills and tactics. The mentality and attitude aspect will be explored in my next post, and the negotiation skills in the following post after that, so stay tuned! Cheers!
