As many people know, there are foreign exchange currency pairs, the most popular ones are: EUR/USD, GBP/USD, USD/JPY, USD/CHF, EUR/JPY, USD/CHF, EUR/GBP. EUR=Euro, USD=US Dollar, GBP=Great Britain Poundsterling, JPY=Japan Yen, CHF=Swiss Franc. Volatility of each forex pairs are different, some pairs are more volatile than others. Forex pairs that are more volatile than others are better to use in trades, because traders make profit from the up and down movement of the currencies.
Normally, forex traders trade currencies of the major role players in the world economy because that players (countries) affect global economy. Other reason is the spread of forex pairs of major role players is much lower than less popular pairs. What is spread? spread is the difference between asking and bid price, that's why when you involve in forex trading there will be difference between currency actual rate and what you pay for getting it. That's the way forex broker get their profit. For example actual currency rate of 1 EUR is 1.275 USD, and the spread of EUR/USD is 2 pips, then you can buy 1 EUR for 1.277 USD. So, you must win 2 pips before you get break even :). If you choose less popular pairs then you must win lot more pips before you get break even, for example the spread of EUR/ZAR is 270 pips, then you must win 270 pips before you get break even, it's difficult aye :).
Showing posts with label Forex. Show all posts
Showing posts with label Forex. Show all posts
Thursday, April 30, 2009
Sunday, April 12, 2009
Forex Trading (2): Some Success Stories
In this game there are a lot of losers and winners. Only some of those winners are regarded as greatest forex traders because they have made enormous profits. I write success stories of those greatest forex traders here to motivate all forex traders .
The first and i assume the greatest forex trader of all time is George Soros. Even though he is accused by some of government leaders as a person who likes to ruin the economy of many countries. Some other observers said that Soros encourages many nations to become open societies, not only freedom in its commerce but also tolerances to new ideas, behaviors, and thoughts. His biggest success story is known as Black Wednesday event. On September 16, 1992 George Soros did short-selling more than 10 billions Poundsterlings and profited approx. US$ 1.1 billions because of UK's reluctance to raise its interest rate levels or to float its currency.
Another success forex trader is Joe Lewis. In 1979 He became multimillionaire after selling its family catering business and then relocated to Bahamas. Then he reinvented himself as currency trader although he is just a high school drop out!!. He also participated in Black Wednesday event and taking lots of profits. Three years later he gained profit against Mexican peso. Those jackpots brought him to become one of the greatest forex traders. His net worth is approx. US$ 2.5 billions.
Bruce Kovner also amongst those success forex traders. From 1979 to 1989 He realized 87% averaged annual compounded return from his investments in commodities and foreign exchange. His trading methodology is based on analyzing worldwide political and economic events. He always set up alternative scenarios about what this world would be in the future based on current worldwide events. He also gets gurus report daily: Preichter, Zweig, and etc. He made money by holding a position with a conviction that is based on his worldwide events analysis, his predetermined stop decision, and etc. His net worth is approx. 11 billions US Dollar. In 2001 he made 500 millions US Dollar personally!!.
There are also Bill Lipschutz and Paul Rotter. Paul Rotter was nicknamed "the Flipper". Those two also considered amongst greatest forex traders. Paul Rotter, 32 years old German has made 65 to 78 millions US Dollar per year for 10 years (1994 to 2004). A lot of traders don't like him because he often changes his position so quickly. Bill Lipschutz is a trader who in 1985 pulled in 300 millions US Dollars per year for Salomon Brothers.
The first and i assume the greatest forex trader of all time is George Soros. Even though he is accused by some of government leaders as a person who likes to ruin the economy of many countries. Some other observers said that Soros encourages many nations to become open societies, not only freedom in its commerce but also tolerances to new ideas, behaviors, and thoughts. His biggest success story is known as Black Wednesday event. On September 16, 1992 George Soros did short-selling more than 10 billions Poundsterlings and profited approx. US$ 1.1 billions because of UK's reluctance to raise its interest rate levels or to float its currency.
Another success forex trader is Joe Lewis. In 1979 He became multimillionaire after selling its family catering business and then relocated to Bahamas. Then he reinvented himself as currency trader although he is just a high school drop out!!. He also participated in Black Wednesday event and taking lots of profits. Three years later he gained profit against Mexican peso. Those jackpots brought him to become one of the greatest forex traders. His net worth is approx. US$ 2.5 billions.
Bruce Kovner also amongst those success forex traders. From 1979 to 1989 He realized 87% averaged annual compounded return from his investments in commodities and foreign exchange. His trading methodology is based on analyzing worldwide political and economic events. He always set up alternative scenarios about what this world would be in the future based on current worldwide events. He also gets gurus report daily: Preichter, Zweig, and etc. He made money by holding a position with a conviction that is based on his worldwide events analysis, his predetermined stop decision, and etc. His net worth is approx. 11 billions US Dollar. In 2001 he made 500 millions US Dollar personally!!.
There are also Bill Lipschutz and Paul Rotter. Paul Rotter was nicknamed "the Flipper". Those two also considered amongst greatest forex traders. Paul Rotter, 32 years old German has made 65 to 78 millions US Dollar per year for 10 years (1994 to 2004). A lot of traders don't like him because he often changes his position so quickly. Bill Lipschutz is a trader who in 1985 pulled in 300 millions US Dollars per year for Salomon Brothers.
Forex Trading (1)
All topics about how to increase wealth are interesting to me. One of those topics that i would like to discuss and share with is Forex Trading. Hmm, do you know Foreign Exchange? it is an international term for exchanging currencies amongst countries in this world. Forex itself is an abbreviation for Foreign Exchange. So, Forex Trading market is simply a market where each parties trading foreign currencies. Many years ago currency trading had high barrier to entry, only large institutional firms had access to participate in Forex Trading games because there were strict financial requirements and massive transaction size that had to be complied. Recently Internet becomes a stimulus for Foreign Exchange Brokers (FX Brokers) to appear. Anyone interested in becoming an investor in this game can open account and buy and sell in many quantities through those FX Brokers, because those FX Brokers have hundreds to thousands of investors investing and trading through them so they able to comply minimum transaction size by buying large blocks of currencies and distributing those currencies among investors that trust their funds in FX Brokers. What are those currencies that traded in Forex Trading market? there are four pair of currencies that dominate the Forex Trading market: Euro vs US Dollar, US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, and US Dollar vs British Poundsterling. When you are buying and selling in the foreign exchange currency trading system market your target is to hold a currency that appreciates in value in relation to other currency, so don't hold a currency that its value is depreciating. A simple example is: if you bought 50 Euros for 70 USD then held it for a week, during that time the value of Euro was appreciating, then in the end of that time your 50 Euros are equal to 85 USD. The daily volume of Forex currency trading in this world is approximately US$ 1 to 1.2 trillion and there is no organization that acts as middleman, supervisors, or regulators. Currencies trading or forex trading revolves between banking centers around the world. One thing that you must know, the Forex trade system market is opened for 24 hours, because it's always noon somewhere else in Earth, so it's always business hours in some regions in Earth. So, prepare your body in healthy condition if you want to be an investor that actively buys and sells currencies in forex trading system market :).
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