The Best Custom Forex Indicator For Forex Online Option Trading

If you are looking for the best custom forex indicator for online option trading, you have come to the right place. We have included some of the most common, most simple, yet reliable custom indicator. Currencies can only go up, down, or sideways. Try to remember the old acronym K.I.S.S. when it comes to forex. The simpler the better. After all, keeping it simple is not only easier, it is usually more successful than complicated, cluttering indicator techniques. Forex online option trading can be very profitable but you need to have the best custom indicator to do so. So, without further to do, here is the list of techniques/strategies/custom indicator:

The Probability Approach

A very simplistic (perhaps too much so) approach to forex. It is as simple as counting. The probability approach is based on nothing more than pure chance. When an options premium is priced it is based mostly on probability, or, the likelihood that it will be profitable. Therefore, if a premium is priced at 50% of the value, then an assumption may be made that there is an estimated 50% chance that this option will turn out to be profitable.

Can using this method alone be profitable? Theoretically yes, however due to the virtually unlimited amount of data, it is not known in what order the profitable options will appear. The likelihood of success with online option trading using this custom indicator will be greatly improved upon if you use it in conjunction with the another indicator, such as the one listed below.

Support and Resistance

Support is defined as a level where price tends to stop as it is moving down, and as a result provides support. Resistance is just the opposite of support. It is where price tends to stop while it is moving up, and thus meets resistance. Support and Resistance (S/R) levels give clarity to predictions of future price movement.

When S/R levels are observed price is expected to reverse when these areas are met. When rates break through S/R levels it is expected that new highs and new lows will be reached. Usually S/R occurs when previous levels of support become future levels of resistance and when previous levels of resistance become future levels of support. Following this principle will greatly aid traders in successful predictions.

It is important to remember that the best custom forex indicator for forex online option trading is usually a combination of two indicators. These approaches are tried and true. Do not forget to build your confidence and test your methods through a demo account before you use actual money.

One last thing, if you are looking for real consistent gains try and find a reliable and effective trading platform. If you click on the link below you will find the best in the business.

By : Howard Teel - http://www.fxprofits.info/

Learn Forex Online Without Losing Your Pants

Can you learn forex online and be an effective currency trader working from home? The answer is yes. In the past, only bank and large financial institutions could trade foreign exchange because you needed millions of dollars in order to trade. However, with the advent of the Internet, retail traders like you and me can now trade forex using online trading brokers. You can open a mini trading account with many online broking firms for as little as US $100.

The foreign exchange market is the largest financial market in the world today with a daily trading volume of about US$1.7 trillion a day. It operates nearly 24 hours a day and 6 days a week. Only 5% of that daily turnover is from companies and governments hedging their currency exposure or regulating their countries' currencies. The other 95% is entirely speculation by retail traders and banks! There are many ways of trading forex. You can trade based on news, fundamental and technical analysis, by economic indicators, short term, long term, you name it. However, the key to forex success is education, a simple trading system and trading discipline.

Anyone can open a forex mini trading account, get 50:1 leverage and start trading currencies. These are the ones who quickly find themselves on the losing end when the leverage works against them. The high leverage works both ways, making $1000 work like $50000, giving you better profit potential but also multiplies your losses when the trend turns against you.

Worse still, there are many new traders who buy an off the shelf forex trading system promising easy 123 buy and sell signals to generate thousands of dollars in income day after day. If they were really that good, everybody would be making bucket loads of cash from the forex markets and put all the financial analysts and professional traders out there out of work.

Getting Started

So what are the things you can learn about forex trading online? Well, to start with, here are some areas you can look up on the internet.

1. Forex terminology and how forex trades are done.
2. Forex markets hours, and major currency pairs
3. Factors that move forex rates, economic news, interest rates, economic data
4. Learn how to read charts and patterns, eg. Japanese candlestick, trend lines, support and resistance.
5. Learn technical indicators, eg. moving average, MACD, RSI, stochastic. Bollinger band
6. Learn a handful of proven strategies employing these technical indicators and chart patterns.
7. Sign up for a demo trading account and practice using the software to enter trades (Try out the strategies you learnt earlier)
8. Open a mini trading account and practice strict risk management in your trades. Keep your leverage low during practice.
9. Develop a mental and emotional discipline in your practice trades.

The last two items on the list are perhaps the most overlooked area for new forex traders. Most new traders focus on the mechanics of trading and fail to develop prudent risk management and disciplined trading. Most traders fail not because they don't have a successful trading strategy but because they fail to follow it by letting their emotions rule their head.

So, to be successful in forex trading, invest in a good education. If you cannot learn everything about forex online, take a home study course and find an experienced mentor to guide you. Before you invest in the forex market, invest in yourself first.

By : Christabelle Chiam - http://www.forexsecretweapon.com/

Online Forex Trading Course - The Virtual Traders Class Room

Over the past couple years, Forex has become a large business to many and has grown to be the largest financial markets in the world. Reason being is mainly due to the simplicity the Internet has brought to the trading arena allowing traders to trade right from their very own homes. Due to this, a increasing number of sites have now started offering people the option to learn the forex markets. These online forex trading courses give the traders the education they need to succeed in this lucrative business.

Although many of these sites do offer these courses, not all are free for the trader to participate in. Price tags can sometimes be very high to the average Joe but the most promising and respectable online forex trading courses are usually well in reach to most aspiring forex traders. When you are looking for a online course to take, there are several things you might want to look for.

1. Who is the company that is offering the course?

2. What is their objective to offer you this online course?

3. Are they just looking to offer the course to get you to sign up with their own trading service?

4. When looking at the promotion of the course, do they push their products and service noticeably so that you will end up buying something from them?

When answering the questions above you can usually pick out the companies that want to actually teach you something about the forex markets or the ones that just want to sell you their goods and services.

Also, it would be a smart idea before you actually take the course, if you have to pay, to check with them and see actually what they are going to teach you. Then you could check around to see if you can find this information elsewhere for free before having to pay someone for it. What they offer typically needs to be unique because a lot of information is already available on the net.

Also, if you are rather new to the online forex world, take a day or two and search forex forums. Fore forums are sites where other like minded people (people with interest in forex) come together and post threads and messages with tons of information. Also, people are their to help answer any questions you might have. You may even find somebody that can give you a review on the company that you were thinking of taking the online forex trading course with.

So when looking for a legitimate online forex course, look for something unique that is being offered. If you can find it elsewhere then there is no need to pay for it. The course should answer detailed questions about the forex market because this is a serious business. It is very important to get the best and right information from the beginning or you could be on a path to a blown account in no time. Education is the key.

By : Adam Hefner - http://forextrading101.info/

A Beginners Education in Forex Online Trading

Forex trading is the most lucrative trading in today’s trade world and it seems everyone is ready to jump into the bandwagon of Forex trading. However, it is not as simple as it seems to be. To know how the Forex trade works, you need proper education about Forex and currency trading. Here comes in play the beginners education in Forex trading.

Beginners education in Forex trading is ideal training for those who are new in Forex and currency trading. This education lets you understand the basics of Forex trading, how it works, benefits of trading Forex and how to make profits by selling and buying currency pairs.

If you are a new player, you can do your homework with books available in the market. But the online sites offering beginners’ education in forex trading has an advantage as you can do demo trading in simulated conditions to get the “feel” of the market with out bothering about profit or loss. You will be amazed to find that just after few trades, the complex concepts seem to start making sense and you begin to understand Forex trading.

Your beginners’ education in forex trading site should provide:

Trading Basics
Introduction to Forex
Theories of exchange rate determination
Economic Indicators
Introduction to Technical Analysis

Primarily the beginners education in Forex trading should start with basics of the trading like the procedure, the actual market, definitions of terms used, frequently asked question, a forum and of course an online help desk. In this online help you should be able to ask your questions which will be answered by the professional experts.

See if you can pick up a program in online Forex trading that is being offered by a regulated brokerage firm. They are bound by federal laws to disclose all their transactions. You can find out their performance from Commodity Futures Trading Commission or National Futures Association Home Page.

The beginners’ education in Forex trading service should allow you margin trading -- it is simply the trading with borrowed capital. This lets you open $10,000 or $100,000 positions with as little as $50 or $1,000. You can conduct large transactions, very quickly and cheaply, with a small amount of initial capital.

The education in Forex trading site should be supported with software that can instantly calculate the spread, your sell or buying price etc. The guide should make their predictions based on market trends and not on predictions or speculations.

A good beginner’s education in Forex should offer real-time charts, technical analysis tools, real-time news and data, and software or website support. You should avoid such sites that offer limited information before you open the actual account.

By : Paul Bryan - http://www.investawise.com/

Forex Software - Choosing the Best

When it comes to forex trading the forex software you choose is essential. There are so many forex trading companies all competing for your business that choosing the right forex software can be quite a difficult task. Most of the forex software products available offers live online forex trading platforms but what other components are vital when it comes to your forex software.

Key Elements For Your Forex Software

Before purchasing any forex software there are a few essential items that should be included. The most important is security and your online forex trading software should include a 128 bit SSL encryption which will prevent hackers from accessing any of your personal details and information such as your account balance, transaction history, etc.

Providing the best security for your forex trading will include a company that provides 24 hour technical server support for your forex software, 24 hour maintenance should anything go wrong, daily backups of all information, and a security system that has been designed to prevent any unauthorized access. Along with these security protocols there are also some forex trading companies that use smart cards and fingerprint scanners to ensure that only their employees can have access to their servers.

Another important factor when it comes to choosing your forex software is to check what the company’s downtime is like. When it comes to trading forex and particularly your online forex trading you need to ensure that the forex software you choose is reliable and available 24 hours a day. The forex software you choose for your forex trading should also have technical support available at all times should your session be cut short.

Ensuring that all the above features are listed in the forex software you choose will help to ensure your forex trading success.

By : Oliver Turner - http://www.leandernet.com/

Forex Trading - Why It's NOT Easy To Win - Do You Have What It Takes?

I am an experienced forex trader and have been trading for 25 years and it amazes me the amount of copy I see that tells me it's easy! Its not and you wouldn't expect it to be with the rewards that are on offer. Do you have what it takes to be a successful forex trader? Read on.

The first point to make is:

You Are Responsible!

Yes you! Not the guy who sells you a forex trading system, e-book, or your broker -You are in charge of your own destiny and anyone who wins and makes money in anything accepts this.

If you are the type of person who can't accept responsibility, save your money and do something else forex trading is not for you.

Learning the Right Education

You don't have to work hard to win - you have to work smart and ignore a lot of so called wisdom you will see on the spouted by gurus and self proclaimed experts.

Here are some common forex myths, believe ANY of them and you will lose.

- Day trading makes money.

- A hypothetical simulated track record from a vendor is a good indication of profit potential.

- Markets move to a scientific theory.

- Predicting in advance is good way to make money.

- A complicated trading system has more chance of winning than a simple one.

- The More I trade the greater my chances of success.

- My risk to reward is my profit target - my stop.

- I trade news stories to generate trades.

If you believe ANY of the above statements you will lose.

If you want to win you need to learn the right forex education and that means not just taking charge of your destiny - but developing a simple robust forex trading system you can apply with discipline. This is one you understand the logic of and have the confidence, to apply with discipline.

95% of forex traders lose what makes you think you will win?

This is your trading edge and a trading edge is vital to succeed - you must know what it is and have confidence in it, to take you through inevitable losing periods to long term currency trading success.

Trading is based on not just a sound method but the ability to keep applying it even when you're losing and that's tough.

You will read a lot about how easy forex trading is and if you buy this or that system, you will enjoy success but life's not that simple.

Most of the vendors and trading systems sold are junk and have never been traded and the vendor is not a trader but a marketing person.

They only ever have simulated in hindsight track records, but in the real world you don't have the benefit of hindsight!

Naive and lazy traders think they will make huge profits with them. They don't of course; they simply learn a painful lesson in the reality of life and forex trading.

The Good News!

If you like a challenge, have the desire to succeed and learn forex trading the right way, you can win - anyone can, as everything about forex trading can be specifically learned.

The rewards can be life changing - all you need to do work smart not hard and have an understanding of the markets, your systems logic and the confidence to apply it all with discipline.

If you are up for the challenge, the forex markets will give it to you. Approach them in the right way and you could soon be enjoying currency trading success that could change your life forever.

By : Kelly Price - http://www.learncurrencytradingonline.com/

4 Types Of Technical Indicator You Need When Trading Forex

If you have any experience in using any kind of charting packages to assist you with your forex trading, you will know that there are endless different technical indicators you can use. In this article I'm going to be asking what are all these indicators and which ones do you really need?

As you can guess from the title of this article, there are essentially four different types of technical indicator and they are as follows:

1.Trend indicators.

MACD, Parabolic SAR and the various moving averages are a few examples of trend indicators and they can all be used to identify a trend. It's widely argued that you should only trade with the trend so all of these indicators will help you to take the decision out of your hands, and therefore dictate which way you should be trading. Your only decision now is at what level to enter the trade.

2.Momentum indicators.

These types of indicators are essentially oscillating indicators and are most useful for determining overbought and oversold positions and can be very useful in signalling the start of a new trend. Examples include RSI, Stochastics and CCI.

3.Volume indicators.

As the name suggests, these types of indicators show the volume of trades behind a particualr price movement which can be extremely beneficial because a price movement backed up by high volume is a much stronger signal than a price movement based on low volume. Examples here include Chaikin Money Flow, Force Index, Money Flow Index and Ease Of Movement.

4.Volatility indicators.

Volatility indicators generally use ranges to show the behaviour of the price and the volume behind any movements. This is useful because any dramatic change in behaviour can provide a good entry signal. Common examples include Bollinger Bands, Average True Range and Envelopes.

So there you have the four different types of technical indicators available to you. Which ones you use is entirely up to you, but it's generally advised that you have at least one type of each in order to provide additional confirmation for entering a trade.

Trading forex using technical analysis is all about probabilities in that when you enter a long position, for example, you want all of your chosen signals to be signalling an upwards movement, therefore indicating a high probability of an upwards movement taking place.

If you use a strict stop loss policy and use these different types of indicators to confirm positions, then over time this high probability trading method should provide you with more winners than losers in the long run.

By : James Woolley - http://theforexarticles.com/

Forex Home Trader - Facts You Need To Know About Trading Forex

Forex trading (foreign exchange) become the latest trading activity for beginner traders. Some of them see this as an opportunity to earn a living by trading from home as a Forex Home Trader. The foreign exchange market also known as the "Forex" is the trading between different currencies of different countries. This very liquid market only became available online for trading, to the individual private trader in last couple of years.

Every currency has it own three-letter symbol that will represent that country of the currency that is being traded. For example, the Japanese Jen is the JPY and the United Stated dollar is USD. So you will note that these currencies are always quoted as USD/JPN

These trades are facilitated through a Forex broker, with whom you will sign up, in order to get your own online trading account. It is strongly advised that you first sign up for a "Demo" trading account where you can trade currencies in a simulated environment - so none of your own funds will be used in "real time". This type of account is excellent for developing your own trading strategy and for you to get the feel for the markets; it also prepares you for trading your own funds in a "Live" account. Warning! The degree of discomfort in trading in "Demo" mode varies greatly from "Live" trading as there is quite a difference between trading "cyber money" and trading your own funds "Real time". Sign up for various "Demo" accounts at various brokers and test drive their online trading software or trading platforms - make sure that you start trading with the software you are most comfortable with, it is only in you own interest!

Be very aware of the following: You can lose some or all your funds in trading the Forex market! This market is extremely fast and some times very volatile! - ensure that you complete at least a comprehensive Forex trading course and try to enlist the help of a seasoned Forex trader that you can use as a mentor, before starting to trade actively in the market. To lose a lot of money in a trade when the market goes against you is not easy, you must be mentally strong to absorb you losses and have the drive to learn out of your mistakes!

Ensure that the broker or Forex Company which you decide to trade through is fully authorized to deal in Forex. In the United States, numerous rigid new laws and regulations regarding the trade of Forex for US citizens are being implemented. If you are searching the internet for a Forex broker, ensure that you read the "fine print" on their brochure, proposal or website - make sure that your company or broker is legal.

Before entering any trade make sure that you did your homework, did you do Fundamental analysis of the markets - take a look at your economic calendar, what are the other countries doing? Will there be announcements that will influence the currency you are going to trade? Did you decide where your entry and exit point will be? Do not forget to set your stop loss! Otherwise your trade can be disastrous for you if the market turns against you and you don't get out of your trade in time.

Remember that by preparing yourself well before entering any trade in Forex, can only benefit your own pocket, so be informed and enjoy Forex Trading!

By : Rowan Cole - http://www.forexhometrader.net/

Online Forex Trading And The Fundamentals Of Economy

The Forex market is a global entity that embraces most of the economies of the world and which behavior reflects a number of factors that at the end determine the performance of the countries economies, and being more specific for our Forex purposes, the performance of their national currencies.

When trading Forex you will need to approach the markets with the highest amount of knowledge you can gather so you can understand what the currencies are doing and why the price goes up or down. The are two kind of analysis you can use for this purpose; one is Technical analysis and the other is Fundamental analysis.

Technical analysis is aimed to the study of charts and the behavior of prices from a more mathematical point of view. And it's from this kind of analysis that most indicators derive as Bollinger bands, Moving Averages, Fibonacci levels, etc.

But there is also the Fundamental analysis. This kind of approach is mainly based on the economic performance of a particular country and its currency. It's also based on political events, natural phenomena that affect a country's production capacity, etc. Also as factors that influences the value of a particular currency we could mention the acts of Congress regarding corporate tax structure, labor legislation reforms; of course the amount and direction of military spending, specially in times of global instability. Even the Supreme Court rulings on different issues can have an impact on the value of the currency in the international markets.

Without any doubt the Internal Revenue office will have also an important influence on the forex market with their rulings on corporate or personal tax , also the Commerce Department's forecasts, prices for agricultural products, etc. Almost all important events in a particular country will have an influence on its currency.

As a forex trader you should always have an eye on these events, at least the most important ones so you can have a reliable indication of what course will the forex market take and act accordingly always with the intention of having profitable trades.

By : Adrian Pablo - http://www.1-forex.com/

Online Forex Trading - Is Online Forex Trading Becomming Too Advanced?

Anyone can participate in the lucrative world of the foreign exchange market through online forex trading. The World Wide Web and the internet revolution have caused a dramatic change in the way foreign exchange trading is conducted. Prior to the start of online foreign exchange, forex trading transactions were typically done through the posting of orders to brokers and banks via phone, faxes or in person. Trading was only done during business hours, as with all other activities related to foreign exchange trading such as making deposits and profit taking.

Today, due to the advancement in networking technology, the internet has altered the foreign exchange market drastically, providing for such conveniences as credit cards as well as trading around the clock. Online foreign exchange trading happens in real time with exchange rates changing constantly in intervals of just a few seconds. The quotes shown are only accurate for the specific time they are displayed; and a different rate may be quoted at any given moment. In online forex trading, when a trader executes his transaction after locking in a rate, this transaction is processed at that very same instant, executing the trade instantaneously.

Anyone with an internet connection can participate in online forex trading. To do this, a trader is typically required to register at a trading platform and deposit funds to smooth the progress of trading prior to starting on any transactions.

Requirements for registration vary with every platform; signing up as an individual trader online may oblige you to fill out simple or time consuming forms depending on governmental requirements. Some of these platforms may also require a face to face meeting and hard copies of all the documents needed for registration.

Individuals need to declare that the funds they deposited to facilitate trading did not come as a result of any illegal act such as money laundering. In addition to this initial deposit, some trading platforms may also require a maintenance margin or activity collateral. These are additional amounts are needed to provide an additional guarantee and are usually frozen under the trader's account.

Traders who participate in online transactions may also be required to download and install software applications specifically created for their trading platforms. As a result, the ability to access your online foreign trading account is limited to terminals that have the software installed. There are, however, some trading platforms that are accessible through a web-based interface which may be accessed from anywhere using a web browser. These trading platforms will only require traders to log in using their account details after which they can make deposits or start trading.

By : James C Hardy - http://www.forex-trading-platform.org/