Forex is short for Foreign Exchange, where money from one country is exchanged for that of another or the simultaneous buying of one currency and selling of another.

When one deals in forex trading the profit or loss, he incurs is the increased or decreased value of an investment caused solely by currency movements. For example, if an investor thought that the US dollar was weak, he might purchase German Mark. The investor's, the real profit or loss could then be in how the Mark moves against the US$.

Being the largest financial market in the world, the Forex market has a volume of more than $1.5 trillion daily. Also the Forex market, unlike other financial markets, has no permanent location, no central exchange and just happens ‘Over the Counter.’ It operates through an electronic network of large banks, central banks, currency speculators, multinational corporations, governments and other financial markets and institutions. Retail traders are individuals who are a small part of this market. They participate indirectly through brokers or banks.

The foreign exchange market is unique because of its trading volume, the extreme liquidity, the large number and variety of traders in the market, its geographical dispersion, its long trading hours i.e. 24 hours a day and a host of factors that affect exchange rates etc.

Currencies are traded against one another. Each pair of currencies are traditionally noted as XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX currency is expressed. For example, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.

73 % of the forex trading is done by 10 top international banks. These large banks continually provide the market with both “bid or buy” and “ask or sell” prices. The difference between the price at which a bank or broker will sell and the price at which a broker will buy from a wholesale customer is called the “spread”. This spread is very less for actively traded pairs of currencies, usually only 1-3 pips. One pip is the smallest unit of price move used in forex trading. For example, if the currency pair EUR/USD is currently trading at 1.4000 and then the exchange rate changes to 1.4010, the pair did a 10 pips move. The pip is the smallest unit regardless of the fractional representation of the currency exchange rate. Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10 For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $1,000,000.

Forex is short for Foreign Exchange, where money from one country is exchanged for that of another or the simultaneous buying of one currency and selling of another.

When one deals in forex trading the profit or loss, he incurs is the increased or decreased value of an investment caused solely by currency movements. For example, if an investor thought that the US dollar was weak, he might purchase German Mark. The investor's, the real profit or loss could then be in how the Mark moves against the US$.

Being the largest financial market in the world, the Forex market has a volume of more than $1.5 trillion daily. Also the Forex market, unlike other financial markets, has no permanent location, no central exchange and just happens ‘Over the Counter.’ It operates through an electronic network of large banks, central banks, currency speculators, multinational corporations, governments and other financial markets and institutions. Retail traders are individuals who are a small part of this market. They participate indirectly through brokers or banks.

The foreign exchange market is unique because of its trading volume, the extreme liquidity, the large number and variety of traders in the market, its geographical dispersion, its long trading hours i.e. 24 hours a day and a host of factors that affect exchange rates etc.

Currencies are traded against one another. Each pair of currencies are traditionally noted as XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX currency is expressed. For example, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.

73 % of the forex trading is done by 10 top international banks. These large banks continually provide the market with both “bid or buy” and “ask or sell” prices. The difference between the price at which a bank or broker will sell and the price at which a broker will buy from a wholesale customer is called the “spread”. This spread is very less for actively traded pairs of currencies, usually only 1-3 pips. One pip is the smallest unit of price move used in forex trading. For example, if the currency pair EUR/USD is currently trading at 1.4000 and then the exchange rate changes to 1.4010, the pair did a 10 pips move. The pip is the smallest unit regardless of the fractional representation of the currency exchange rate. Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10 For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $1,000,000.

As with almost anything concerned with making money, searching the Internet for Forex will give you a wealth of information. Some of this information can be very useful while some of it very dubious in nature. Be sure not to pay over the odds for a training course or trading software. Many sites offer a very convincing case for you to spend several thousand dollars in their trading software that will mean you cannot lose. I would certainly avoid this kind of offer and concentrate on learning everything you can to learn how to trade yourself.

If you are just starting out with Forex you are probably quite excited but be sure not to jump straight in but rather to do some research and find a site that offers the things you need most. The most important consideration is to find a site that has up to date research tools. A site with live streaming, daily commentary along with plenty of charts and graphs can be very useful. They may also offer web courses to help you build up a foundation of knowledge. As I mentioned before though, be aware of paying a lot of money for supposed "gold-dust" information.

Trading the Forex is something that can put you at risk of losing a fair amount of your hard earned money. For this reason, you should strongly consider the costs involved with joining a site. The fee structure of Forex sites usually involves paying a monthly subscription to enable you to use the site's resources. The best sites available will involve you having to pay some amount of money to use them and you should definitely consider doing this. The Forex market is very competitive and all the top investors will be using the best, most up to date information so you need to be using it as well to allow you to be successful.

If you are doing forex trading, then you know the importance of a good forex broker. This is especially true if you are just starting out and do not have a lot of experience. A good forex trader will work with you and provide the information and tips you need to make the best trading.

Even though your forex broker will be offering you tips and advice, they do not make the final decision to buy or sell. You do. Therefore it is important you know what you want and make your own decision. It is ok to ask a lot of newbie forex questions to your broker if you are new to forex trading but make your own mind and accept the results.

As you can see, a good forex broker is important as you will be seeking his/her advice and you certainly want someone who’s the best in the forex business. So how do you go about choosing one? Here are some tips to help you

1. Registered Forex Broker.

It is important that your forex broker is a registered member of a financial institution. Ask for his/her credentials. You want the assurance that he/she will be able to act on your decision and access the funds needed.

Check with the NFA (National Futures Association) if you doubt your forex broker is registered.

2. On-call Broker.

Your forex broker should remain in contact at all times. Whether it be via cell phone, email, instant messaging etc. Your broker should know forex trading is a 24 hour standby job and fluctuations in trading can happen quite quickly. Therefore it is important you can get hold of your forex broker when you need him/her

3. Experienced Broker.

Before you select a forex broker, ask for his/her references. Call those references and ask them about their opinions on the forex trader. By doing this, you can assert whether the forex broker is experienced and whether he/she is able to execute a trade effectively and successfully.

It would be best to contact more than one references to get an accurate feedback on the forex broker.

4. Cost of Broker

Many people when looking for a forex broker are overly concerned about the cost. Usually more experienced forex brokers as well as those with a good track record of successful trades demand a higher price.

My recommendation is to select a few forex brokers that you are comfortable with, have credentials, have a proven good track record. Once you have done that, then you can talk about cost.

Money makes the world go 'round and also affects the bulk of shopping and travel habits across the globe. With all of the different currencies that countries have, whether it is from the Anguilla East Caribbean Dollar (XCD) to the Euro (EUR) in France, all monetary units fall under a system of exchange. Since the world is filled with varying levels of economical statuses, there are some destinations that possess a higher value of currency than others. Understanding the money exchange rates of the world make purchasing foreign products, enjoying vacations and making business trips much easier.

Money exchange rates simply state how much one country's currency is worth in the units pertaining to another country. For example, when traveling from the United States to Africa, you will want to know how much the dollar compares to the South African Rand (ZAR). While some countries will gladly accept the American dollar as payment, often, it is more advantageous for a traveler to exchange their dollars for the currency associated with their vacation destination.

The Affect of Exchange Rates on Foreign Interaction

The currency exchange rates regarding foreign travel and shopping purchases creates a system filled with twists and turns with room for comparison, especially when traveling to a foreign country. Money exchange booths and banks are scattered all over tourist destinations. You should know that exchange rates can be rather mind-boggling and if you don't keep on top of this ever-changing system, you might get duped into paying more for something than you should have.

This is because not all currency exchange locations offer the same rates. For example, large banks often present better rates than independent vendors and small-scale currency exchange booths. Doing a bit of comparison-shopping upon arrival will help you to select the best rates in town.

If you enjoy purchasing goods from the Internet, knowing exchange rates come in handy. This allows you to assess whether or not you will receive a better deal once converting your currency. All of these details regarding a foreign purchase should be ironed out before completion since exchange rates are always fluctuating. Sometimes, currency exchange and foreign transactions are made easy with websites like Ebay, which posts both currency expectations for foreign purchases. For example, if a product costs AU $15.82, Ebay will make note that the final price in American dollars will be approximately US $12.25.

Commodity day trading most commonly refers to the practice of buying and selling stocks during the day. By the end of the day, there has been no net change in position. For every share of stock bought, an equivalent share is sold. A gain or loss is made on the difference between the purchase and sales prices.

Studies have shown that the more money you have to trade in commodity, the better your chances of success. While some vendors (who want to sell you something) suggest you can trade with any amount you may have, most experts agree that with less than $10,000, your success depends on luck. You just don't have enough to diversify and apply proper risk management principles.

Risk is always commensurate with reward. If you are trying to "get rich quick," the high risks you will have to assume will probably break you. Commodity trading is not inherently risky. It is only as risky as you want to make it. Most people lose, because they can't control themselves or the urge to gamble. A disciplined person trading a solid, trend-following system with sufficient capital to diversify can reasonably expect consistent returns of 25 to 50 percent a year, with drawdown of 15 to 30 percent.

You won't find many people who have made a long-term career from commodity day trading. Short-term price data is too random to exploit. This has been demonstrated mathematically. The only way to trade successfully is to follow trends. The trends you follow must be large enough so that the average trade result is greater than the costs of trading. Day trading in commodity does not permit you to do this on a consistent basis. Long-term trading is much easier.

With the help of day trading signals, day traders sell all long positions and cover all short positions at the end of a working, trading day. In day trading, you usually finish the day with cash in hand, to avoid holding any risks. One of the benefits of day trading is that since the positions are closed at the end of the trading day, any sudden news of events doesn't affect the opening prices of trading.

In day trading, different shares are bound to undergo different resistance and support levels. As the name indicates, resistance is basically a price level of a stock or perhaps an average that finds it difficult to break through. The support is a price level where the stock or average tends to hold above. The day trading signals are the signals obtained when stocks bounce off of support levels or sometimes even off resistance, if required.

These day trading signals are created watching the moving averages of shares. These moving averages, have trend lines similar to moving averages. A day trading signal depends on the number of times a stock tends to hit a particular trend line. The more faith there is in the trend line, the better it acts as a support for you. The longer the stock stays at a particular level; the better is the day trading signal of support.

The Internet boasts of many websites having bulletins where day trading signals are broadcast the whole day through. With these continuous day trading signals, it makes it rather easy for the day trader to predict how the share market will move. So day trading signals play an integral part in making profits in the share market and in having an interesting day of trading.

Have you seen an offer for stocks and shares trading software that seems to be too good to be true? Chances are you're absolutely right!

Like most promotions that promise the easy life, with you sitting back after an hour or so at work in your pyjamas while the dollars come rolling in, it's probably another scam. Share trading scams are more common now that so many of us have internet access though many variations have existed prior to the internet. One of the more modern versions would have you spend up big on a special software package that analyzes stock market data. This data is either input by you from a newspaper or is input by the promoter after you connect to their system, the software then analyzes that data and makes recommendations on which buy or sell trades to make for the day.

Often this expensive software package turns out to be little more than a dressed up spreadsheet, which you could probably have put together yourself. Worse, after using the package for a while it dawns on you that you would need to make many thousands of trades, have very deep pockets and also a whole heap of luck in order to make the sort of returns the promoter sold you on. Remember that stock market trading patterns of the past, while often a useful guide, are in no way a prediction of future market movements!

Worse again, you may find that you have been steered to use a 'recommended' broker, who of course benefits from each buy or sell order you might make in the form of the brokerage you must pay. What's that you say? The broker and the promoter are related businesses or are jointly promoting the software? Now there's a surprise!

There are a few variations on the theme such as software for gambling on the outcome of horse races. The software produces a recommended betting strategy based on all the horses recent form. Save yourself the cash and all that data input and just go see what your newspaper says instead. Newspaper tipsters work with the same historical data and are at least as accurate!

As with all work in your pyjamas type scams, the usual warning signs should set the alarm bells ringing in your head. Does it sound too good to be true? Are there lots of glowing testimonials from happy customers, none of whom can actually be identified and contacted?

Stop and think - what are you being charged for software or access to a system? What are the ongoing costs after you opt in? Why is the promoter selling this excellent package? Shouldn't he be lying back on a beach somewhere instead of spending his time marketing

Day trading is a style wherein traders either sell all long positions are sold or cover short positions at the end of the trading day. With day trading, you can be sure of finishing the day in cash and can therefore avoid the risk of holding the shares overnight. There are various websites on the Internet that provide information on various day trading systems.

Day trading systems use earnings guidance as the source for signals. Based on this guidance information, the investor can decide which stock to invest in and which not. The day trading system shows that stocks move strongly only for twenty percent of the time. However, it is rather difficult to tell through the day trading system which and when any security is ready to move. It is for this reason that day trading systems combine earnings guidance with some technical analysis tools.

Most of the day trading systems have about one to three trades each day. According to the day trading system, when there is no good trade opportunity, the day trader makes a pass and stays in cash for that day. Remember, the important point is how much you earn in a month and not on how many times you execute orders. The average holding period for most day trading systems is one day, from the open to the close of the stock market.

Day trading systems use objective and mechanical criteria to select the different trades of the market. It is always better to start with a small position size in day trading, until you get the hang of the system. Follow the day trading system rule by remembering the number of open positions. Be conservative, and do not let the position take control of your account. According to the day trading system, it is necessary to always be aware of the share movement and to not make wild decisions based on a margin call from a broker.

The computer age and the Internet revolution are the foundation for electronic day trading. It is through the Internet that you can have direct communication with the various traders and the stock exchange to facilitate easy day trading. With electronic day trading, it is possible to interact with the service-oriented computer systems that are basically tailored to our specific needs.

Wall Street was the center of most of the stock market and brokerage firms. However, with electronic day trading, investors can trade stocks with people anywhere, anytime thanks to Internet client-server technology. With electronic day trading, the information that was formerly available only to brokers is now available to anyone. In fact, the information available through electronic day trading proves to provide new investment opportunities to investors.

When using electronic day trading, you may need to learn to use new online trading tools that are available in brokerage houses. This is rather easy and only takes little time. Just imagine, with a couple of mouse clicks, it is possible to make thousand-dollar transactions in a matter of seconds. If you are not that comfortable with electronic day trading, you can use the help of some of the brokerage websites. These brokerage websites tend to have an ongoing conflict among themselves, leading to their lowered commission. Commission is not the only point to take in consideration when choosing the right brokerage firm.

In electronic day trading, it is important to consider how frequently you expect to trade and the number of services that you need. The day trading websites are continuously upgraded to attract maximum customers. You are offered company news releases, earning reports, and market commentary from these websites. So, it can be seen that electronic day trading is one of the best means of making money while in the comfort of your own home. All you have to do is to place bids for the stocks, and wait for the results.

Stock market day trading is a great means of making money with a little of gambling. You have to have some strategy to follow when participating in stock market day trading. However, once you enter into stock market day trading, you have to be ready to devote your life to it, as you practically become married to the stock market.

The stock market is a very volatile market that has many ups and downs in a single day. When participating in stock market day trading, it is important to keep a note of all shares and the way they may turn during the day. Each trader has his or her own strategy to maximize earnings. Using the various day trader tools, one can easily learn the secrets of stock market day trading to earn maximum results.

Stock market day trading does not necessary have to be done with computers. While there are many day traders who do their trading using only the computer, there are others who trade using telephone and mobile phones. However, whichever method of stock market day trading you adopt, it is important that you first study the market thoroughly. When trading with the stock market, it is important that you avoid listening to any worthless rumors about companies. It is even worse to make trades based on unconfirmed company reports and tips.

The secret of stock market day trading, or any trading for that matter, is to always buy stocks low to sell high. If you can't make the right judgment in the beginning, over the course of time, you will improve these skills to become a better stock market day trader. One point to remember in stock market day trading is that there is a limit on the gains from a single share. This is the reason for it being better to always buy and change stocks freely and frequently. So when you find that you have reached the limit in stock market day trading, you can just exit from that stock to choose another more feasible stock.

Discount brokers are individuals or companies that carry out trade executions for a variety of trades. In other words, they execute buy and sell orders at a lower commission rate.

Discount brokers can be categorized as discount stock brokers, discount commodity brokers, and discount real estate brokers. Discount stock brokers open endless opportunities for those interested in stock markets. Discount commodity brokers offer the best trading platforms whereas the discount real estate brokers are committed to provide online and offline services for property sales.

Moreover, there are two levels of discount brokers on the basis of commissions. They are standard discounters and deep discounters. The commission charged by a standard discounter is 50% less than full-service brokers. Deep discounters feature the lowest commission structure, which is 60 to 90% lower than full-service brokers.

Discount brokers offer a wide variety of services. They provide 'no-load' mutual funds, at a lower commission (around 0.5%). Most of them offer free mutual fund purchases through some special arrangements. All discount brokers execute stock and option trades. They trade on AMEX, NYSE, or NASDAX. They also offer free 1-page Standard & Poor's Stock reports.

Touch-tone telephone stock quotes, free check-writing privileges, and dividend-reinvestment services are provided 24 hours a day. Some discount brokerage firms provide information on the current price of stock, volume of the day, current dividend and yield as well as earning forecasts free of cost.

To choose a discount broker, one should consider a couple of things. Cost must be the key factor. The fee schedule may vary depending upon the brokerage firm and the quality of shares handled by them. Always read the fine print and look for hidden costs including transaction fee, postage fee, and fees for late payments.

In most cases, discount brokers do not have local branch offices. So it is crucial to check the background and strategy of the discount broker before hiring one. Make sure that the discount broker is properly licensed and experienced. Stock forums and referrals can help the trader find a reliable discount broker.

Today, discount brokers are greatly preferred, as they offer virtually the same service as full-service brokers, at a rock-bottom price. It is highly essential to find the best discount broker, if you are going to invest and manage money on individual stocks.

Typically, a discount broker who can keep your trading cost down is considered the best. These discount brokers offer reliable online trading service. The best discount brokers can help you to achieve full control over financial activities and also make your investing easier. Some even provide free news, research, and analysis tools. TD Waterhouse, Ameritrade, and Questrade are some of the best discount brokers.

Even though discount brokers charge a lower fee, there can be a wide range of price options within them. A good discount broker will not have any hidden fee such as postage or handling fee. Always choose a broker who charges minimum commission.

The execution speed of discount brokers should also be considered, especially when you are a day trader. Most online discount brokers offer Direct Access Trading (DAT) facility to have instant access over the market. They also provide services outside the regular market hours.

Certain factors have to be considered while searching for the best discount brokers. Check whether the brokers are properly licensed. Do a little research on their saving claims, volume discounts and rebates, account protection, and transfer and other fees. You should also know whether they have handled similar situations. Finally, check out the services offered. Some brokers focus only on specific segments of trading. So, always choose the one who suits your trading style.

Reading stock forums also plays a significant role in choosing the best discount brokers. These forums will help you to find out the top brokers. Furthermore, you can get referrals from your friends and relatives.

How to choose a good quality forex broker

After you are confident in the way you will go about trading the forex market, along with the money management rules you will implement, it might be time to find a good forex broker.

There are many brokers out there to choose from so, it is worth while doing some initial research before choosing a forex broker. Some things to look out for when choosing a forex broker include:

Low Spreads

The spread is the main way forex brokers generate their profits. The spread is the difference between the price at which you can buy a currency, and the price at which it can be sold at any particular point in time. When looking for a broker, keep an eye out on their spread costs. The less the spread, the more money you will save and the faster you will be making a profit in a trade.

Quality registered institution

In the United States, forex brokers should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) http://www.cftc.gov. They should also be a member of the National Futures Association. You can verify the brokers CFTC registration and NFA membership status at http://www.nfa.futures.org/basicnet/. If the broker is not backed up by a reliable institution, don’t bother with them it’s not worth the risk.

A wide range of leverage options

Leverage is needed to trade currencies due to the fact that price movements are only fractions of a cent. In general, leverage is expressed as a ratio between the amount of capital you provide to the amount a forex broker will lend you. For example, take the example of the ratio of 200:1. What this means is that the forex broker will lend you 200 times the amount of money you provide. Just keep in mind the more leverage you use, the more risk there is in getting a margin call, however you also have the potential for larger profits and vice-versa. In general, when starting out with a small amount of capital, make sure that the forex broker you are using offers a wide range of leverage options. This will give you more control over the risk exposure you should be prepared to take.

Savvy forex traders often pinpoint the opportunities in forex trading and persist to time the industry so they know precisely when the right time is to trade, or buy. The problem is many traders buy at the wrong time, although they have monitored, explored, and checked the quotes daily. In addition, these people tend to bank on the notion that buying in forex is best when the market is low and the traders are pulling back.

At the entry level in forex, many traders erroneously time forex marketing without realizing how to fittingly, utilize pullback and the level of support.

Forex marketing has a strategy that many traders overlook. The prime strategy, which many forex traders believe is the key to profiting in the forex industry is the buying low and selling high strategy. Unfortunately, these traders are wrong, since it is a key to loosing instead.

Support in forex industry is when chronological value or pricing comes in from traders who “Buy.”

The mission behind buying is to provide support for the forex market exchange, as well as to analyze, examine, experiment, investigate, etc, the markets in forex currencies and exchange. Each time the traders test forex, it authenticates support.

Resistance becomes sizeable in the forex industry only when the levels of “resistance” is charted, i.e. at what time the levels of forex value, or pricing refuses to give in to jumping to a higher listing.

For this reason, at what time forex traders venture on buying low and selling high, they are making a big mistake. Traders who delay in forex trading markets will often recoil, or retract at the time some of the biggest deals transpire in the forex industry.

In short, the trends are what traders want to stay aware to, yet most traders will resist. Why, because the traders often feel uneasy at the times when other traders resisting buying and selling in forex.

Now, if you want to get ahead in forex trading and use strategies to win, I recommend you read the book on emotions, or the keys to success. No, these are not actual titles, yet visit your library to find relating material because what you are going to have to do to win in forex trading, is become friends to your discomfort.

Most people feel discomfort will experience distress, anxiety, and often it is because they fear embarrassment. The disadvantage of this way of thinking is that, most times the fears are exaggerated and the one fearing is the one who looses at the end.

Another big failure in life is that most people feel that if they are not on the normal level of thinking, they are not accepted and are set apart from the world. Read your history because you will find that the vast majority of those who succeeding in life, where different. That is they did not think on the terms of normal society. These people often win also in forex trading, since they set strategies apart from the rest.

In short, fear is the mechanism behind all failures. Now to sum up the best times to buy in forex trading. The best times to buy in trading industries, such as forex is when the market is “high” and traders are not resisting, or pulling back. In summary, when you use strategies in forex trading such as buying “high” and selling “higher,” you are off to a grand start in winning in the forex industry. As well, you have setup forex trading strategies that set you apart from the rest, which means your chances of winning are higher

Many people often get confused by the financial terms such as currency, forex exchange, trading etc. It’s a big complex financial world and one of the new trading concepts is day trading.

Day trading in its simplest term means buying and selling securities, stock and other financial investment within a single trading day. It covers a wide variety of financial products such as stocks, currencies, forex, equity index, futures and commodities. The financial products that are brought are only held with a trading day and must be sold at the end of a trading day

Due to the short time period in which to buy and sell stocks, day trading is considered risky. If you are interested in day trading, be prepared to have sufficient capital. You need to purchase at least 1000 shares of a stock. Be prepared for this capital to be expendable.

Although day trading is risky, it does have big rewards if you know how to play in this game. Many day traders never allow themselves to get emotional with any one stock. They should know when to cut their losses when the need arises as well as able to analyze the current market trend particularly in the short term.

One advantage of day trading is that the intraday margin is 50 to 1. That’s means you are allowed to trade up to 50 times your initial capital.

So what if you do not have the necessary capital to invest in day trading. Thankfully, you could try day trading currencies. Trading currencies requires less capital. You only need a couple of hundred dollars to be able to open a forex mini account.

One major disadvantage of day trading is the stock market is only open for about 8 hours each day. However for currency trading, the forex market is open 24/7. That means you can trade just about any time of the day.

Another advantage of day trading currencies is that most day traders get an intraday margin of 4. That means with the same capital, you can trade up to 4 times your capital. For example, if you have $10,000 as capital, you can trade up to $40,000. This gives you more leverage if you decide to buy higher price currencies.

Day trading currrencies are also easier to monitor and predict compared to stocks as there are less of them and the factors influencing global forex market are lesser

In day trading, you can lose big as well as win big all in a single day so I would not recommend anyone to take up day trading until you have sufficient experience and knowledge in the stock or forex markets

Day trading refers to the buying and selling of financial instruments like currencies, stocks or futures contracts, on the same trading day. This type of stock investment involves a lot of risk. Day traders carry out day trading by purchasing and selling stocks rapidly on the same day.

Securing quick profits through day trading is based on the hope that the value of the stocks will continue to rise or fall in the short period when the stocks are held, before being sold. Some feel the traditional rule of settling the trade before the market closes, may go against the market wisdom of letting the profit run. However, this helps the day traders in avoiding the risk of price gaps. Price gap refers to the difference of price between the last close and the opening next day.

Profit Making Through Day Trading Online

Day trading can be very profitable due to the rapid returns. Traders willing to take high risks generate huge returns with day trading. Earning huge profits takes a couple or minutes or hours. The advancement in technology and electronic communication, especially the Internet, has contributed a lot to its popularity in recent years. Initially, day trading was limited to professional traders of financial firms. It used to be a marginal form of trading stocks for the elite group of private investors. Today, even casual traders indulge in day trading to make a profit. Popularity of the Internet has triggered off the swift flow of information, at a click of the mouse, making day trading all the more easier to execute.

Online Day Trading Strategies for Quick Profit

These are five day trading strategies that every trader should keep in mind:

Follow the trend: Usually, day traders assume that the steady rise in financial instruments will continue to do so and vice versa, in the case of a decline. All trading time frames use ‘trend following’. Trend followers purchase a rising financial instrument or they sell the falling ones, short. This is done with the assumption that the trend will continue.

Range trading: In this strategy, rising as well as falling stocks are brought near to the lowest identified price and sold, once it hits the upper range.

Scalping: This strategy is also referred to as spread trading or quick trade. It involves the settling of trade within a few minutes or even seconds.

Playing news: The playing news strategy is considered to be most popular in the realm of day traders. It involves the purchase of stocks that offer good returns and selling of stocks with bad returns. The implementation of this strategy provides a good opportunity for quick profits.

Despite of the profit making strategies and popularity, day trading is not easy. It involves huge risk factors and according to statistics, 80-90% of day traders lose money in day trading and only 20% gain. It is an expensive and stressful, full time job, but if you are disciplined, a quick decision maker and can maintain good risk and money management, then you have strong chances of earning profit by day trading online

As you enter the New York Stock Exchange, stands a life-sized picture of W D. Gann (1878 - 1955) and this is an indication of the respect he is held in by traders worldwide.

Today, half a century after his death he remains one of the most important traders of all time.

Here we will look at how he made millions from his trading methods and how they can help you seek bigger profits.

W D Gann employed a team draughts men to draw charts of all the stocks on the New York Stock Exchange and a selection of commodities.

His methods are however applicable to any market.

He then used these charts to trade for profit. In fact, his unique methods made him a fortune of over $50 million dollars.

So are his methods still applicable today?

The answer is yes and savvy traders all around the world make profits from his methods

W D Gann Philosophy of trading

W D Gann wrote extensively outlining his thoughts and trading methods in a series of books and courses.

Many of his ideas were empirical studies and others were more mystical in nature. Why Gann’s methods are still valid

Gann’s major contention was that certain laws governed not only the markets, but nature as well, and were universal in scope.

As humans make trades and human nature was constant, he contended that this psychology would show up in repetitive price patterns.

While this is a standard view of technical analysis Gann introduced a unique slant by studying price and time and how they influenced each other

The Influence of Price and Time

Gann believed that crucial price movements and trend changes happened when price and time converged.

These points could then be traded for profits.

If price and time were not in synch, or did not converge, then time held more relevance than price.

Time, was considered by Gann as the ultimate indicator, for trading because all of nature was governed by time.

This view was unique at the time and remains so today.

Gann believed this and the fact that human nature was constant allowed trading opportunities to be seen in advance.

In the "Wall Street Stock Selector" Gann stated.

"Just remember one thing, whatever has happened in the past in the stock market and Wall Street will happen again. Advances in bull markets will come in the future, and panics will come in the future, just as they have in the past. This is the working out of a natural law”

In trading Gann concluded that:

"It is action in one direction, and reaction in the opposite direction. In order to make profits, you must learn to follow the trend, and change when the trend changes.