Forex basket trading, otherwise known as carry trading, relies on obtaining a basket of currencies that when combined provide a solid hedge while producing an income from the carry interest. Sound complex? It really isn’t. The Basics of the Basket To create a forex basket, investors seek out reliable trading pairs that are predictable and [...] Read more »

Backtesting has both fans and dissenters, but it remains a popular way to test the merits of an algorithmic strategy. A forex backtester might say, “if the system or algorithmic trade worked in the past, why wouldn’t it work today?” Backtesting a forex trading system isn’t particularly hard. With the advent of online trading, and [...] Read more »

Ever entered a trade and watched it go down? Did you then think “Man, if I liked this at X price, why wouldn’t I like this at X minus a few bucks?” If you did, you were thinking about averaging down on a position. That is, buying more of a trade after your first order [...] Read more »

There is no other market in the world with the same buying power, or leverage possibilities, as that of the foreign exchange market. But the reason the foreign exchange market is so leveraged has nothing to do with the extreme risks traders take. No, it has everything to do with how relatively boring the forex [...] Read more »

There is plenty of discussion by both strategists and brokerages about appropriate account sizes. While forex is considered highly unregulated compared to other financial markets, most brokers are reasonable and considerate about the proper role of capital in a trading account. Nearly all brokers have a minimum account balance, and only one (that I know [...] Read more »

  “Look dad, no hands!” Foreign exchange trading is probably the most technical of any type of trading. From stocks to bonds to options and futures, no market has as much participation from technical analysts than the forex market. However, just because the majority are technical traders doesn’t mean there isn’t plenty of room for [...] Read more »

Forex scalping, or taking quick profits on short term trades, is one of the most popular forms of forex trading. This approach is highly profitable and rewarding, and many people make enough to generate as much as their previous career. Yep, some people really do make a living scalping forex. Forex Scalping Techniques There are [...] Read more »

So you want to trade forex for a living? Who doesn’t? There are literally hundreds of thousands of people that trade forex for living and you can too! Making a Living with forex Making a living with forex may seem to be just a pipe dream, but many, many people are using the foreign exchange [...] Read more »

Virtually every single forex broker or brokerage offers a free forex trading simulator that will teach you how to trade, and how to use the trading software, without risking real money. There is no better way to learn the foreign exchange market than to use a free forex trading simulator, as they do not require [...] Read more »

Just how stocks, bonds, and other investments are well represented by hedge funds, so are currency pairs that trade on the foreign exchange market. Though there are not many forex hedge funds, nor forex hedge fund managers, there exists plenty of opportunity for growth in this industry. Forex Hedge Funds Because the foreign-exchange market (forex) [...] Read more »