A Brief Summary of Forex Trading

No matter how hard trading foreign currency is, there is still a potential to make large amounts of money. Becoming knowledgeable about your investments, cautiously judging the investment purpose and making sure you are familiar with all the risk factors becomes necessary.

Forex trading is not meant for use of money that you would need to pay bills or to live. It is meant for money that you would consider investing in other forms but can risk the loss of the investment.

Forex stands for the Foreign Exchange market and took form in 1971. With the transition from fixed rates to floating rates the creation of the Foreign Exchange allowed for transactions between brokers in the Forex Market to exchange currencies for other currencies at approved rates for a specific time period. This rate is determined by supply and demand just as the local markets price their products by what is selling and the competition. With the increase of foreign trade between countries of the world the need for value rating of currencies to these countries became more popular.

Today you can invest using Online Forex with innovative “live-time” trading over the internet. You can start a basic account or even join Forex training courses to gain knowledge before investing your own money but use of virtual accounts. Do not trust margin trading where you hedge you investment by borrowing against a possible raise in value of another unless you are well aware of the risks.

Online Forex uses cutting edge software and a knowledge base for your trading experience. Never trust a single factor and make sure you are knowledgeable about all the risk factors that will affect your investment. Take time to get the training you need to make wise investment decisions before investing in the Forex market.

 

Although there are many different Forex trading systems, there is none that is best. There are however some very difficult due to the use of complicated mathematical analysis and others that are so simple in perspective that many would think they just won’t work. Success will be dependent on your sill with using the system you choose and knowledge. Join a Forex training course to learn about strategies, margins, charts, symbols and trends. Become armed with the knowledge to spot a possible problem before it occurs. One of the simplest systems to learn is use of market trend systems. This system is very successful, but only if you are aware of current events or other factors that could change the climb of a currency to a down turn in a matter of a few minutes. As with all strategies, you must know what factors can create a large impact whether for the good or the bad. Without this knowledge, you will fail in a Forex market unless you have been blessed by the gods. If using the a trend system and you were investing in a currency that was on a steady rise but you learned that there may be an overthrow to the government while watching the news, you would not hold onto that currency. Yes, if the overthrow never happened, you could be out money, but you would be out less money than if you lost all of your investment due to a collapse of the currency. Even the difficult mathematical systems follow a form of a trend system. They also add things such as the possibility of a raise against a third currency that has been on a downslide and much more. Some consider jobs, unemployment, the people’s willingness to invest and a host of other situations that could lend to a swing in the Forex market. Because of all these factors it is wisest to practice within a Forex trading course before entering the market.

Forex trading is big business. There is a lot of money to be made in Forex Trading. Before you start trading the Forex market, remember, it is a fact that for every dollar someone makes in Forex Trading, someone else has lost that dollar. Which side of the coin do you want to be on? Of course everyone wants to be on the winning side of the coin.

You can not do this without a lot of studying and a lot of research before you start trading. You need to know what all the trading strategies are so you will know when it is in an up market and when it is in a bull market.

Do not go against the grain. To help you learn the trading strategies there are trading courses you can buy or join and do right online. Trading courses will teach you the trading signals, trading strategies, trading platform and swing trading, to name a few.

Not only do you have to learn the trading system of how the market travels you will have to learn why it goes in the direction that it does and what causes it to change. You will also have to condition your mind and ignore the fact that it is money you may lose. Gaining in the market can also work on your mind to the fact that you will get over confident and careless.

Forex trading is nothing to take lightly. Never use money that you use to live or that will cut your family short. Only use money that you can pretend you do not have. Then you can think of it as just money and you don’t care. It becomes more of a game when you can take the emotions out of it.

Think about starting with a mini Forex trade till you work up all your skills and understand exactly what you are doing. Winnings are less but so are the losses.

Becoming Skillful In Forex Trading Systems

Although there are many different Forex trading systems, there is none that is best. There are however some very difficult due to the use of complicated mathematical analysis and others that are so simple in perspective that many would think they just won’t work. Success will be dependent on your sill with using the system you choose and knowledge.

Join a Forex training course to learn about strategies, margins, charts, symbols and trends. Become armed with the knowledge to spot a possible problem before it occurs. One of the simplest systems to learn is use of market trend systems. This system is very successful, but only if you are aware of current events or other factors that could change the climb of a currency to a down turn in a matter of a few minutes.

As with all strategies, you must know what factors can create a large impact whether for the good or the bad. Without this knowledge, you will fail in a Forex market unless you have been blessed by the gods.

If using the a trend system and you were investing in a currency that was on a steady rise but you learned that there may be an overthrow to the government while watching the news, you would not hold onto that currency. Yes, if the overthrow never happened, you could be out money, but you would be out less money than if you lost all of your investment due to a collapse of the currency.

Even the difficult mathematical systems follow a form of a trend system. They also add things such as the possibility of a raise against a third currency that has been on a downslide and much more. Some consider jobs, unemployment, the people’s willingness to invest and a host of other situations that could lend to a swing in the Forex market. Because of all these factors it is wisest to practice within a Forex trading course before entering the market.

Beginning in Forex Trading

When it comes to Forex trading it can be very risky. When trading on the Forex market, a lot can be at stake and the market can change quickly. Money can be lost before you are able to close the trade. Never go into Forex trading with money that you can not afford to lose.

It can take a lot of money to trade Forex or a mini account can be opened with as little as $250.00. A mini account does not mean that you will not lose all your money, just not as much money. Do not do Forex trading if you do not know what you are doing. There are practice accounts to give you the education that you need before you ever open a trade.

With that being said, the Forex market can be very exciting. The money made can be tremendous. With the trading systems out today, it is a lot easier to follow the market. There are grafts with trading signals that are explained in the trading courses.

Forex trading courses allow you to learn by using practice accounts that mock the market so you can see if you would win or lose. Until you can reach a much better than 50% win on the practice accounts, money will be lost. These practice accounts will let you know how much you have won or lost.

You will want to watch the trading signals very close and learn what they mean and how they work. With strategies of today on the market, how to figure out which way the market is going to go, it is easier to figure things out, but no one really knows for sure. No one is 100% right all the time. Always the best is to have someone else who knows the Forex market help you with the decisions about your money.

Simplicity is Key to Attaining Forex Trading Success

Some traders lose without ever attaining Forex trading success due to a lack of discipline. Although this is not the cause of the collapse of the investment, it is a small part of the trouble. It is imperative to remain focused and knowledgeable about the world’s current events and to know the trends, strategies and what margin you are willing to lose with any given investment.

Speculation is not a good bedfellow when choosing a Forex trading system. Speculation leads to recklessness and downfall when investing in a Forex market. A few may get lucky using speculation but those people also took the time to study to be able to follow a market trend. Without this knowledge you will be tempted to invest in a high yield turnover even when the market trend says that it is heading for a downfall.

There are those systems that praise the fact that they can choose market bottoms with correctness. This is not always the case. All things are fallible. Another fallacy is that there is the perfect market trend software. No such thing exists. To gain real success you will have to work smart and do your homework. Without the right tools and knowledge all successes in life are put into a high risk category.

The Forex trading system is to volatile for any one thing to be 100% accurate. Unless you are willing to risk your investment by allowing something else to determine your fate without your own knowledge, you must be able to follow all trends, events that could change the market and the charts and graphs that will help you by “suggesting not guaranteeing” Forex trading success. Market trend software is only meant to be used as a guide to help you make informed decisions.

Mini Account Trading in the Forex Market

Forex Trading is the trading of different types of foreign currencies. It is a 24 hr. market in which many things change the direction of the market. It would be extremely hard for someone to figure out the market if they did not watch and follow the news and current events.

Learning all the things that affect the Forex market and the currencies change directions makes a big difference when trading. You need to know this to know what to keep your eyes open for on the news each day, and listening to other people talking will give you clues of what is going to happen so you can watch the market a little closer when needed. This alone will not make you an expert.

There are many trading strategies. You will need to pick out a trading strategy that you are most comfortable with and stick to it. When you learn something, then using it over and over and over again, will bring it to perfection. Once something works, why change it. Like the old saying “If it ain’t broke, don’t fix it”.

Trading courses and trading charts are a good help. Learn what the charts mean and how to follow the trading signals to the fullest. Trading signals may be the biggest help there is. They follow the past to predict the future. Studying them will help you get a feel of how the market runs under different situations.

Mini markets are Forex trading accounts also, only at a lesser risk level. It does not take as much to open a mini account. There are accounts that are 1/10th the size of a full account. The risk is not the same as with a full account. They are really great though for the beginner or for someone that does not have a lot of extra cash to put into trading in the Forex Market.

Why Trade Forex?

• 24 hour trading

  One of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.

• Superior liquidity

  The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.

• No commissions

  The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
  Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.

• 100:1 Leverage

  Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.

• Profit potential in falling markets

  Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the EURUSD appreciates.

Trading Forex

A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.

Foreign Exchange

This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.

As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.

3 Band Equalizer

Description:

A tone control circuit made with a single op-amp and having three ranges, bass, middle and treble controls.
Notes:
Using a single op-amp this easy to make equalizer offers three ranges, low frequency,mid frequency,and high. With component values shown there is approximately +/-20dB of boost or cut at frequencies of 50Hz, 1kHz and 10kHz. Supply voltage may be anything from 6 to 30 Volts. Maximum boost 20dB is only realized with maximum supply voltage of 18 Volt.

A 2 Watt audio amplifier made from discrete components.

Notes:
This was one of the earliest circuits that I ever designed and built, in Spring 1982. At that time I had only an analogue meter and a calculator to work with. Although not perfect, this amplifier does have a wide frequency response, low harmonic distortion about 3%, and is capable of driving an 8 ohm speaker to output levels of around 5 watts with slightly higher distortion. Any power supply in the range 12 to 18 Volts DC may be used.

Circuit Description
The amplifier operates in Class AB mode; the single 470R preset resistor, PR1 controls the quiescent current flowing through the BD139/140 complimentary output transistors. Adjustment here, is a trade-off between low distortion and low quiescent current. Typically, under quiescent conditions, current is about 15 mA rising to 150 mA with a 50 mV input signal. The frequency response is shown below and is flat from 20Hz to 100kHz:

Bode Blot:

The circuit is DC biased so that the emitters of the BD139 and BD140 are at approximately half supply voltage, to allow for a maximum output voltage swing. R9 and R10 provide a degree of temperature stabilization which works as follows. If the output transistors are warm, the emitter currents will increase. This causes a greater voltage drop across R9 and R10 reducing the available bias current. All four transistors are direct coupled which ensures:-
(i) A good low frequency response
(ii) Temperature and bias change stability.

DC Voltages of Prototype

The following voltage checks were made on my prototype. All voltage are made with respect to (wrt) 0 Volt and shown in the table below.

Q1 Emitter	9.12V
Q1 Base	9.77V
Q1 Collector	14.22V
Q2 Base	14.22V
Q3 Base	7.65V
Q4 Base	5.98V
Junction R9/10	6.82V
Capacitor C3	14.95V

Picture of My Prototype

Finally an image of the original which has stood the test of time. The BD139,140 power transistors can be seen on the left hand side, the preset near top centre, the BC109C centre right and 2N3906 is buried under a miniature screened audio cable, centre bottom.

AUDIO FREQUENCY DIGITAL NOISE GENERATOR

When you need to test an audio circuit with broadband noise, this circuit works great. It uses just three inexpensive C-MOS ICs that generate a series of output pulses whose widths vary randomly. I included a level control pot.

ELECTRIC FIELD DISTURBANCE MONITOR

This schematic is the power supply and front-end sections of the field monitor that is discussed in more detail at Electric Field Disturbance Monitor. (this link is off-site) The system can detect human and animal motion by the electric fields they disturb.

AUDIO AMP + 3KHz FILTER

This circuit is the audio amp section for a complete optical transmitter.   The circuit amplifies and filters the voice audio signals from an electret microphone.  The circuit is described in more detail in the receiver section of Dave Johnson's

Low-pass-3KHz LOW PASS FILTER PLUS AUDIO AMP

This circuit uses a switched capacitor filter IC from National Semiconductor to filter signals with frequencies higher than the 3KHz needed for voice audio. The schematic includes an audio amplifier that is designed to drive a standard audio head phone. The circuit is described in more detail in the receiver section of Dave Johnson's

HIGH PASS ACTIVE FILTER COLLECTION

This is a collection of inverting and non-inverting active high pass filter circuits.  I included one, two three, four and six pole filter circuits.  You can change the component value ratios shown to achieve any frequency cut-off you may need. The circuit does not specify an operational amplifier.  The circuits should be used to select the needed resistor and capacitor components for a particular frequency knee and  slope.

Active Filters: Band Pass-ULTRA PURE 125KHz SINE WAVE SIGNAL SOURCE

For some RFID systems operating at 125KHz, a very low distortion signal source reference is needed.  The circuit shown on this page produces a 10-volt peak-to-peak signal into a 50-ohm load, with a distortion of only 0.01%.

AC to DC Converters / Linear -18v AC to DC Power Supply

This is a classic linear power supply which produces a regulated 18v, rated at about 1 amp.

Run Switching Type AC Power Adapters on DC

I designed this circuit many years ago and have used it several times since.  It uses a single logic IC to indicate the TXD and RXD line activity of a typical RS-232 serial data communications link.  The thresholds are set at plus 3 volts and minus 3 volts.  Two dual color LEDs are used as indicator lights.

Non-isolated Off-line AC to DC Power Supply

This compact efficient circuit can provide up to 100ma of a regulated 5 volts from an AC power source ranging from 20vac to 120vac.

MINIATURE ISOLATED AC/DC POWER SUPPLY

This circuit uses a novel approach to produce a fully isolated and regulated 5 volts @30ma from the 120vac power line. It uses two tiny SCRs that alternately discharge two capacitors through a miniature high frequency transformer. The voltage spikes produced through the transformer are rectified, filtered and regulated. A very common 8 ohm audio impedance matching transformer can be used for the transformer.

LOW POWER 12,000 VOLT POWER SUPPLY

If you need about 12,000 volts DC for an ion generator this circuit might be the ticket. It draws power from the 120vac power line but it uses a small 6KV camera flash trigger coil. The output signal is isolated from the power line. Although the circuit can only deliver about 5uA of current it can produce dangerous shocks, so be careful.

Classic Linear 5v Supply Using 6.3vac Transformer

A classic method for producing a regulated +5v DC supply is shown below.  This circuit consists of an iron core transformer, a bridge rectifier, a filter capacitor and a voltage regulator.  Many people are tempted to use a very popular 6.3v transformer for this +5v supply but they will often discover that there just isn’t enough voltage from the transformer to make the circuit work properly under all but very light load conditions.  Higher transformer voltages will work but at the expense of much more power being dissipated in the voltage regulator.
Most transformers are specified for 120vac inputs.  At 110vac, the output of a 6.3vac transformer may only be 5.8vac.  To insure operation under nearly all reasonable conditions, I will often design a circuit so it would operate properly even with a low 105vac line voltage.  Under that condition, the 6.3vac from the transformer may only be 5.5vac. If a typical bridge rectifier and filter capacitor were used, there would not be enough peak voltage to insure good regulation.  But, all is not lost.  This classic transformer design could still be used but only if you pick the right parts.
For starters, the conventional bridge rectifier can be replaced with four power schottky diodes. A typical bridge rectifier using standard silicon diodes would have a voltage drop of about 2 volts, while a schottky diode bridge would drop only one volt. Although this isn’t a lot, it sure helps.

Next, the main filter capacitor size could be increased, to decrease the ripple voltage across it.  One way to calculate the ripple voltage is with the equation: dv/dt = I/C.  dv/dt is the voltage change across the capacitor.  I is the DC load current and C is the capacitance.  For 60Hz power lines, the dt value would be 0.008 seconds. For 50Hz power lines, use the value of 0.010 seconds. So, if we picked a big 20,000uF capacitor, with a current of 1 amp, then with a 60Hz frequency, the ripple voltage (dv) would be about 0.40v and 0.50v for a 50Hz system.  At 105vac the transformer secondary would be 5.5vac.  The peak voltage would be 1.41 X 5.5v or 7.7v.  Subtract 1 volt for the schottky bridge and 0.40 for the ripple voltage and you are left with 6.3v DC for the input to voltage regulator.  This is only 1.3v above the desired 5 volts but it should be enough if you use a regulator with a low input to output voltage drop.  I suggest using a LP3872ES-5.0 voltage regulator from National Semiconductor.  This device only needs about 5.3v at the input side to maintain 5 volts at the output, with a 1 amp load.  In my design, I suggest using a 6.3vac transformer rated at 2 amps and two big 10,000uF filter capacitors at the bridge output. Although the voltage drop across the regulator will be small, I would suggest mounting the regulator on a heat sink, rated for about 5 watts of dissipation.

Classic Plus and Minus DC Power Supply

This is a classic example of a regulated DC power supply that produces both a positive 15v and a negative 15v from a 20vac wall adapter.

CAPS PROVIDE VOLTAGE BOOST TO SERIES REGULATOR

 

 This circuit adds some capacitors and diodes to a traditional transformer type series regulator circuit to extend the normal operating range. It can insure regulation during low line voltage conditions or it can squeeze a few more watts out of a plug-in-the-wall power adapter power supply.

A-240VAC TO 5VDC POWER SUPPLY

This is simple way to power some 5v logic from a 240vac source.  If a 120vac power adapter is used, the circuit will also work for 120vac power lines.

A-AC to DC Converters -9v Battery Eliminator

9v Battery Eliminator

If you use 9v battery powered devices for long periods of time, you may get tired of constantly changing batteries. The circuit below can be wired into any 9v battery powered device, drawing power from an external AC to DC power adapter.  I designed the circuit around a very common LM317 adjustable voltage regulator. 
The circuit uses any off-the-shelf +12v to +15v power adapter. These are very common and can be purchased from a variety of sources.  I included an illustration showing how to make a 9v battery clip, so the eliminator can just snap onto the electronic device’s battery clip.

 

A-AC to DC Converters -18v AC to DC Power Supply

18v AC to DC Power Supply

 

This is a classic linear power supply which produces a regulated 18v, rated at about 1 amp.

A-AC to AC Converters-ISOLATED AC CURRENT MONITOR

ISOLATED AC CURRENT MONITOR

This circuit uses a small AC current transformer from Magnetek to produce an isolated voltage proportional to the AC current in the primary winding.  The transformer contains a single turn primary with a low 0.001-ohm resistance.  It can easily handle 30 amps of AC current and provides at least 500vac of isolation.  With the components shown, the output AC voltage is scaled so 1 amp of current produces 100mv of AC voltage.

A-AC Power Controls -SOLID STATE RELAY REQUIRES ONLY 50uA DRIVE CURRENT

SOLID STATE RELAY REQUIRES ONLY 50uA DRIVE CURRENT

This circuit demands a control current that is 100 times smaller than that needed by a typical optically isolated solid state relays. It is ideal for battery-powered systems. Using a combination of a high current TRIAC and a very sensitive low current SCR, the circuit can control about 600 watts of power to load while providing full isolation and transient protection. 

 

 

 

A-AC Power Controls -CHARGE COUPLED BI-DIRECTIONAL POWER MOSFET RELAY

CHARGE COUPLED BI-DIRECTIONAL POWER MOSFET RELAY

The circuit uses an inexpensive C-MOS inverter package and a few small capacitors to drive two power MOS transistors from a 12v to 15v supply. Since the coupling capacitor values used to drive the FETs are small, the leakage current from the power line into the control circuit is a tiny 4uA. Only about 1.5mA of DC is needed to turn on and off 400 watts of AC or DC power to a load. 

A-AC Power Controls -AC Line Powered LED Strings

AC Line Powered LED Strings

A while back a guy by the name of Ken Schultz sent me a simple drawing of how he connected a string of 30 LEDs, to make a nice under the counter accent light, powered by 120vac.  He wired the strings in two series sections of 15 LED each, but wired in opposite directions.  He then used just one capacitor to limit the AC current through the two stings.  I looked at the circuit and decided that it seemed quite reasonable.  The only change I decided to make was to add a metal oxide resistor in series with the capacitor, to act as fuse and to limit the peak current, should there be a voltage spike on the AC line.  With the two strings of 15, the current is first pumped through one series string, then as the AC line polarity changes, it flows through the second string.  Since the capacitor acts as a constant current source, you can use other string numbers. The capacitor value shown keeps the current limited to about 20ma for the LEDs. In Europe and Australia, where the line frequency is 50Hz, you may see a noticeable strobing of the LEDs, if there is substantial separation between the two different polarity strings. Soktha from France (admin@lanka-1st.co.cc) sent me his version of this circuit, using two strings of 14, for a total of 28 white LEDs.  He mounted the LEDs onto a wood stick.  When powered up from a 240vac 50Hz source, the devices provided a nice white light.