Learn trading systems based on the average Forex crosses




Forex Trading Systems


One of the trading systems most common and used in the world of Forex trading, perhaps on the intersection of moving averages. Trading systems based on the moving average crosses, have proven to be a simple but effective system that after years still in use within the community of traders and investors.

Who at some point has not tested a system that is based on the crossing of averages of 50 to 200 sessions? Sure that somehow or another many of us are still using them.


This type of system based on the average Forex crosses as we said is quite effective especially if operated in highly trend Forex pairs and no matter we extend the time frame.


How to determine if a trading system based on a crossing of half Forex is good?


matlab modeling, the best way to test whether a system based on a crossing of half Forex is really good, is through the work of different fields:

* Evidence of backtest Forex through tools such as Metatrader.


* Evidence of optimization in Forex via also specialized tools that help us to find the best period in our Forex trading system.


* Do paper trading, or that it is trading on a demo account or simulated Forex trading.




Once obtained the work and conclusions of that period is the best for our cross-half Forex system, what we will do is set it up on our trading platform (either Metatrader 4, Metatrader 5, MultiCharts NinjaTrader etc...) We have a wide range of graphics platforms that allow us to configure and design a system based on the intersection of middle Forex.

We return to insist, that the real work and that will give us success with our system is through hours of testing through simulators based for example on the historical Forex pair for 4 years.



There are companies that can provide historical data of a pair of currencies to "tick" this is that would mean that those historical have great quality to be tested for backtest or simulation.


Returning to our cross-half Forex system, we can try to do the same, the number of periods on the basis of the result of testing different configurations and speeds can be adjusted or even different forex pairs (we know that each pair of Forex is different and behaves in a unique way compared to the rest by very correlado that is). The application of theory to practice. Adjusting the results to our Forex pair and our trading platform.







The trading system based on the crossing of averages if only, does not tell us anything, because there is then to apply the settings to a couple of Forex determined, as for example the EUR/USD (Euro dollar) or GBP/USD (pound, dollar), which obviously will yield different results. A good forex trader, must have some practice in the handling and testing of trading systems configuration, given that many of these systems are not effective with the time to be subjected to constant changes of volatility in the markets.

Basic principles to learn how to invest in the stock market-Forex




Learning to invest should be something Basic for anyone, but very few people devotes time to this task. The economic future of a person is determined by:

1.) The money that wins
2.) The percentage saving money that wins
3.) How you invest that money you save


The 3 points are fundamental. But most of the people focuses only on the money that wins, some reach the second step (saving) and only a few take seriously the third step (invest). 3 "legs" are very important for the economic future, but if I had to name one of them as the least important when it comes to accumulating a heritage I think it would be the first; the money earned.


If money is won but spent all cannot create a heritage. However, it is possible to earn little, save a lot, invest well and get a very good result. The time is also very important, accumulate a good heritage with low income in a short time is extremely difficult. But in longer time and discipline make virtually any can significantly raise their standard of living.


The most important investments are:

Bag:

Investing in stock market is much easier than think the majority of people, it is something that anyone can, and should, do, no need to have any prior knowledge or an above-average intelligence. I think that everyone should devote at least part of their money to invest in stock market, as it is shown that long term bag is the most profitable investment that there is. And it is not only the most profitable, but that through dividends, it provides a more stable and increased to real estate income or fixed income. But it is also highly recommended to have a portion of the money in fixed income, and both are equally compatible with the investment in real estate. Properties:
Historically it has been the second most profitable option after the bag. Altogether has been a good investment, but not as good as you think the majority of people. Investment in real estate, in practice, has enough drawbacks that are not usually take into account when speaking of it in theoretical form, as you can see in the above link. The real estate market are pending for a reform that would radically change the valuation of real estate; the liberalisation of the ground. If soil liberalizes realistically the value of real estate will fall significantly.

Fixed income:

It is considered as the safest, but its real return (which takes into account inflation) is very low. You can use temporarily, but it is not a good investment in the long term by their low profitability. Obviously it is preferable to be a time in fixed income to buy overvalued shares. But it is not possible to "live the income" investing in income sets, since at the time where interests are left to reinvest the real value of assets begins to descend almost to disappear in long terms.

Art objects:

It is very difficult for people who are not very expert. Most art objects can even be considered as an investment, since only very high quality deserve this consideration. Falsifications, fashion, etc. make it very difficult this type of investment. They also do not provide an income and the same work can have very different prices at a time depending on the place of purchase, who is the buyer and the seller, etc.

The first thing that should be done is to design the asset management and decide which percentage of the total is to invest in stock market. It can range between 10% and 100%, depending on each inverter.


To invest in stock market, there are 2 options:

Investment funds:

A mutual fund is an intermediary between investors and the market in which to invest. For example, an investor may purchase Spanish actions directly or can invest in a mutual fund that bought Spanish actions. Each option has its advantages and disadvantages, and this makes none of the two options is the best for all the inverores. Each investor must decide if in your case is preferable to direct investment (in fixed income, Spanish, European, emerging stocks, etc.) or the investment through a mutual fund. Both options are compatible, so a same investor could invest directly in the Spanish stock market, because of their greater knowledge of the same, and use the funds to invest in Japan or USA.

Direct investment in bag:

The main advantages of direct investment in actions regarding investment funds are:

(1) periodic income: 

A securities portfolio generates an income the dividend paying stocks that make up the portfolio. This advantage is very important. The money obtained by the payment of dividends be used with flexibility; reinvest in buying more shares, destine it to consumption or to pay basic expenses (electricity, water, owners, etc.), payment of the mortgage on a property (residence, second residence, premises for a business, property to rent, etc.), payment of letters of a vehicle, etc. And all this without having to sell the shares. Throughout the life of the inverter the fate of dividends can go varying with total flexibility depending on your needs and the stage of your life you are. Get a regular income by investing in funds is very difficult because the evolution of dividends is much more stable and predictable than the contributions. To earn an income regular an investment fund must sell shares, and that is to reduce the size of our heritage. Therefore would not be a real income (such as dividends) but a divestiture. Also there is a risk of disinvestment in market falls.


(2) lower commissions:

 the commissions that are paid to maintain a portfolio of values are significantly lower than a mutual fund, and this has a decisive influence on the final profitability. An equity fund may charge a total Commission (management, deposit, etc.) 2,00%-2, 50%. There are people who believes that it is a low Commission because it compared to the total value of the portfolio. The problem is that this Commission is charged every year. The a the IBEX35 index dividend yield is not very far from those numbers, at times can be something higher and others lower. This means that the Fund, approximately, stays with paid dividends for doing his job. To put it in perspective imagine the case of an investor in real estate that engages a Manager you carry your portfolio of properties and to change the Manager stays with all the money obtained by the rentals. The investor would keep real estate but wouldn't get anything from rentals. In addition, investing directly in shares can select stocks that pay high dividends and discard the
you pay lower dividends and those that do not pay them, with what the portfolio dividend yield can be superior to that of the IBEX 35 (or the chosen reference index).


(3) effect "herd" in the Fund managers: 

named to the trend that fund managers have to be very similar to the peer management, differing little from the Administrators group. The consequence is that the vast majority of managers performs a management very passive, with very similar results (almost always lower, as reflected in the studies carried out on the subject) to the index that is used as a reference. In these cases the supposed advantage of professional management on management that an individual can do fades until it is virtually null and void. There are several reasons for this behavior. One of the most important is that managers live on his salary, not of profitability that obtain in the market. Many managers have bonuses, bonuses and so forth, but the mortgage, the light and the schools are paid with salary. If they are separated from the Group and are right you can get a higher bonus, but if they are wrong and get a yield much lower than the average they can be dismissed. It is clear that most would prefer not to risk, not only because of the possibility of being fired but because, even in the case of clearly exceed the group, the tension suffered every day until it can be very high. The individual investor can buy values that they are not in fashion (and therefore have fallen significantly) but have magnificent fundamental and good prospects without worrying about rankings of the next quarter. Following the index managers invest the most money in the larger values, which are not always the best option.


(4) total freedom to invest or not:

 the individual investor has no obligation to be bought at all times or sell if you don't want it. Instead a fund manager not only has to be always in market but it may be the case that receives lots of money to invest (by new contributions of participants) in moments that would prefer not to do so and at other times it may be forced to sell (for massive withdrawals of participants) when his opinion is that it is good time to buy rather than sell.


(5) to enter and exit agility: 

A private investor can enter and exit a value at any time, since their positions are negligible compared with the size of the market. On the other hand a Fund Manager may take several weeks, or even months, in entering or leaving a value for the large volume of money it manages. This can cause the Manager to get worst prices (for the whole of its portfolio) of purchase and sale to the individual investor. The smaller the higher value is the advantage of the individual investor to the Fund Manager.


(6) ability to invest in securities that are not in the rates: 

most of the funds are referenced to an index, so ignore all those companies that do not belong to this index. This leaves out very good companies that do not meet the requirements to be included in the indices due to their size or liquidity. In Spain the cases of CEPSA and Zardoya OTIS, include companies whose profitability of recent decades is among the highest in the Spanish market and which are not yet in the portfolio of many funds because they do not belong to the IBEX 35. Other funds have or have had shares of these companies, but in a percentage very low, taking into account its fundamental, for not being included in such index solidity. On the other hand, sometimes included in rates companies with a large market capitalization and cash but whose fundamental and profitability leave much to be desired. An example of the latter (among many that there has been, is and will be) can be Terra. The vast majority of participants of investment funds in Spain had a portion of your money invested in Terra during the fall of 157 to 2 euros, since almost all funds owned Terra shares purchased in their portfolios. Many of those  funds, however, had no Zardoya or CEPSA shares that had an appreciation well above the average while Terra fell. Indexes are a selection of the most solid and profitable, values but the most liquid and with greater market capitalization. There are very solid values that are very large and liquid but not so in all cases.


(7) the stock indexes do not reflect dividends paid by companies








I think that direct investment is more interesting, but for some investors, it is preferable to invest through mutual funds. But before deciding on the investment via funds think that you should read the articles stock indices do not reflect dividends paid by the companies and how to match (and overcome) to the indexes so that you understand the implications of its decision. 

You must also take into account that direct investment in stock exchange and investment funds are compatible options.
Before you start buying shares we had to choose the strategy that will be used to invest in stock market. You can use more than one strategy, in which case must decide how much money to devote to each strategy be and open a securities account to each of them. The same account should not be used for several strategies, since it hinders the assessment and it could happen that a bad strategy will "eat" the benefits of good strategies of slow and "silently". They must be separated to evaluate them easily and be able to take corrective measures if one strategy is failing.

The choice of the strategy and the acquisition of the skills needed to carry it out are parallel tasks. To do this you can read books or websites like this one, whose contents are completely free. Bag items will be useful.

An initial difficulty is to choose the strategy should have some knowledge, to which you should read books and spend some time. But that initial lack of knowledge does not you can choose which books to read and it is possible to read several books that do not adapt to your needs, what will have been a waste of time and money.


If you don't know what strategy choose or what books to read I recommend a strategy that seems very suitable for the majority of private investors for its combination of profitability and safety long term. It consists in forming a solid portfolio and with good future prospects that have a high profitability by dividend. And what, also those profits and dividends grow long term above inflation. These companies tend to be banks, utilities (electric, gas, water distribution, telecommunications operators), highways, insurance and construction companies. They are not the only ones, but many of them belong to these sectors. All contents of this site prove useful to develop this strategy or other.


Fundamental analysis

 is that tries to determine the value of the companies based on their results and assets (factories, brands, machinery, real estate portfolio of customers, etc.) that has.


Technical analysis only looks on the stock charts. 

Does not pay any attention to the results and assets of the companies, only to the evolution of its listing on stock exchange. On many occasions it is situated fundamental analysis and the technician on two sides opposite and irreconcilable. In my opinion, they are fully compatible. A long-term investor should use fundamental analysis to say 'what' companies purchase and technical analysis to decide "when" to buy them.

You must follow the results presenting companies each quarter. This can be used multiple sources, as the section of results of this website, the websites of the companies themselves or newspapers. Use the most convenient and better understanding. By very good be a company cannot buy it at any price. Pay close attention to the present dividend yield and the prospect that in the future this dividend increase above inflation. 

The majority of businesses in the sectors named above (banks, utilities, highways, insurance and construction companies) meet these characteristics.
If you find a better strategy and you like more, please do not hesitate to use it. But don't start buying shares without knowing why does it nor objectives intended to accomplish with your investment. Each investor must find a strategy that suits your needs, its objectives and its way of being. The strategy must adapt to the investor, not the inverter to the strategy.

Tactics that must have in has in the trade of currencies in Forex



There are many different tactics in Forex currency trading, some are profitable and others simply do not work, the trick is to find they do serve.


Many operators use different tactics in Forex, and are mainly divided into two types: which focuses on long-term operations or used in scenarios for short periods of time; but the basics are usually very similar, and often depend on know how to choose well the levels of support and resistance.

The difference is basically in the time frame that the operator uses to make their analysis and decisions, and in the volume of earnings that hopes to make in a given time.

Forex scalping tactics make reference to how to operate, entering and exiting the market in a matter of minutes, using support and resistance levels to decide whether the operation can continue generating profits or must be closed.

Operators who specialize in the Scalping, seek to take 5 to 10 pips of profit in operation and moving on to the next very quickly. They often perform more than 20 operations per day.



A long-term operator uses longer time, often hours or even days. You are looking for is here, also find levels of resistance as an entry point, and open an operation in favor of the prevailing trend. It is unlikely that a long-term operator used a tactic of bounce, to open an operation against the main trend, when it comes to intermediate support or resistance.

Another tactic used by both types of operators, Forex is the use of moving averages. A moving average is the average price of a currency pair, for a certain period of time and is represented graphically, as a continuous line in operation as Metra Trader 4 platform. Moving averages are used as a tactic in forex to display a change in the trend of a currency pair.

It is also important to remember that there are different tactics in forex that adapt to different personality traits of operators, for example, an impatient person won't go you very well in the trade long term; Likewise, a very patient person may have difficulty remain calm with the rhythm of a tactic of scalping, although it sometimes requires a degree of patience in both types of approach.

Pairs of currencies in Forex-overview



Summary to the earlier publication on Forex operations that take place through the trade in currency pairs.


In Forex, currencies are traded in pairs, i.e., purchased or sold a currency, paying with another, for example, in Colombia, which is known as the price of the dollar, the amount of PESOS paid for one U.S. dollar.

Each currency has an acronym composed of 3 letters, in the case of the Colombian weight is: COP-USD United States dollar, therefore, when we say that the dollar is $1,950 pesos mean that the PAIR USD/COP is worth $1,950.

In general, with a few exceptions, the stronger currency shown left, so the PAIR have always a value greater than 1. Unfortunately the Colombian weight not traded in Forex; follows the main pairs traded on Forex, sorted according to the volume of operations:

EUR/USD: Euro-dollar.

USD/JPY: Dollar-Japanese Yen.

GBP/USD: Pound sterling - dollar.

USD/CHF: Dollar-Swiss franc

USD/CAD: Dollar American - Canadian dollar.



USD/AUD: Dollar American - Australian dollar.

USD/NZD: Dollar American - New Zealand dollar.

With the dollar as the currency of reference, make up the 8 major currencies in Forex as: Majors.

There are also other very traded Forex pairs that combine some of the majors:

EUR/JPY: Euro-Yen.

GBP/JPY: Pound sterling - Yen.

EUR/CHF: Euro-Swiss franc.

EUR/GBP: Euro - pound sterling.


Lee mas sobre este tema en : Knowing the Forex currencypairs

All Forex operations take place through trade in currency pairs.

Currency pairs trading volume chart




Knowing the Forex currency pairs


Since the market Forex is always of measure the value of a currency in concrete facing it to another, all the operations of Forex have place through the trade of pairs of currencies.

Today, we can affirm that are seven pairs of currencies that occupy the 85% of the volume total of operations Forex:


* Euro versus dollar American (EUR / USD) 

* Dollar American versus Yen Japanese (USD / JPY)

* Pound sterling versus dollar American (GBP / USD)

* Australian dollar versus the US dollar (AUD/USD)

* U.S. dollar vs. Swiss franc (USD/CHF)

* U.S. dollar versus the Canadian dollar (USD/CAD)

* Dollar New Zealand versus dollar American (NZD / USD)

If you stop to study this list earlier for a moment, two things can seem clear:

1. One is that the countries shown in this list of currency pairs represent some of the most important economies. For example in countries like Germany, France through the use of the Euro are reflected.

2. The other is that the dollar American is part of all of them seven pairs older reflected in the list, doing that is the dollar, the currency more operated in the world of the trade of coins.

Why this list of seven pairs of currencies and that it does so important?


The currency most operated


Most operated currencies the reason of these seven currency pairs are considered to be the "majors" or "pairs older" is simple: the strength of their economies.


Whereas the contributions that represent each country made a report in 2010 we have the following:




* USD / TRY Lira Turkey

* USD/SEK Swedish krona

* USD/SGD Singapore dollar

* USD / ZAR the rand South African

* USD / MXN weight Mexican.

* USD / HKD dollar Hong Kong

* USD/THB Thai baht


The problem facing any trader who wants to operate this type of currency, is that it can be exposed to moments in which the spread goes off (the distance between "BID" and "ASK") with what can risk trading operation profitability according to that time, these currency pairs agree to be thoroughly studied by the trader in order to avoid surprises.



Them crosses in them pairs of currencies, another form of operate in the Forex 

Finally, there are pairs of badges that not include in any of the operations to the dollar American. The name of currency "cross" is that the operations are cross directly without considering in principle to the US dollar.



Here are some examples of crosses of currency pairs:


Euro vs. pound sterling (EUR / GBP)

Canadian dollar vs. Japanese Yen (CAD/JPY)

Dollar Australian versus franc Swiss (AUD / CHF)

Euro versus Yen Japanese (EUR / JPY)

Pound sterling versus franc Swiss (GBP / CHF)


Franco Swiss versus Yen Japanese (CHF / JPY)

Trend or system of investment in the stock market





As many of us know, a trend-based system, is based mainly in knowing the tendency and, later, to try to always go in favor of the trend, but using the possible corrections of this.


Through different systems and available in technical analysis indicators, we have already seen a way to know the trend, perhaps the most basic and used to identify the trend than the trend investment schemes based on the intersection of two averages.


The trend most basic systems of investment 

criteria in bag set an example fast about the functioning of these systems of investment trends in stock market, say that they are almost always designed with the following criteria:

* If the slow average is crossed by the average rapid, from bottom to top, have bullish trend

* if it is to the contrary, bone, if the slow average is crossed by fast from top to bottom, we have bearish trend.


Clarifications about the Middle mobile in its incorporation and use in the systems of investment trend.


Perhaps one of the great dilemmas when it comes to incorporate moving averages regardless of the nature or how they compute the result), may be periods used for each of these, there is much information on the Internet, but responding to a question concrete of a reader who has launched a consultation through a comment in another article we did whenever we talk about a slow average and a quick will take into consideration the following criteria:

When we refer to the slow moving average, we will try to explain that we are referring to the moving average based on one larger number of periods.

Being fast moving average on a system, which we use to identify in a more immediate way, sudden in the action of the price changes.

For example, if we have an average of 200 and one of 100, the slow will be 200 and the fast of 100.


Some examples of trading systems based on moving average crosses


Although it seems somewhat obvious and simple, can be seen as choosing a good trend asset that fits this kind of systems based on averages crosses, can be highly effective.

Types of trend systems by volatility and momentum for example, according to tests adapted to markets in particular, can see graphics daily and crosses based on 9 and 18 periods mean are really effective, so, so we invite you to do your own "backtest" or "papertrading" tests to see if this type of configuration is adjusted correctly to your system.

Another type of setting, "very common", may be the investment schemes based on a triple junction of averages based on three different periods as they could be:

*50
*100
*200

Therefore, we could use some crossing of these stockings to meet the longer term trend.

In conclusion, although the mean in a set of investment crosses, can identify changing trends in an asset with relative ease, is always convenient that we filter this type of signals through other technical indicator such as an oscillator or an indicator of momentum or even some indicator of volatility.

Techniques and risks that we must have in has to the invest in Forex-Investing in currencies



Investing in currencies, what we must bear in mind

Already some time ago, we talked about the possibility of considering currencies and especially in the Forex market, as a stage on which operate in the medium and long term.

To this day, many traders and investors considered the Forex market as a scenario geared mainly to speculate with currency pairs.


The facility to operate in the short term with a broker of Forex 

If indeed, the Forex market, somehow allows you to operate in different currency pairs that try to reflect the price/currency of a currency of a country or region at a specific time.

But, why is that considered this type of market, a stage mainly short-term? We have the answer in the level of leverage that we will allow to us as customers of a broker online, have a capital to operate higher than that actually have had to perform the opening of account.

This factor that we will allow you to move one larger amount of capital higher than ours is known as level of leverage. Yes, actually, because we can move hundreds of thousands of dollars or euros, unconsciously we will think in the Forex market as a moment of being able to operate in short term, expect a short tour in the price of a pair of currencies, and finally, to close the operation.

The possibilities that open are almost endless to make what is known as Forex trading.


First, know all the techniques and risks

If friends, the idea can be attractive, you open an account online, operas leveraged by moving hundreds of thousands of dollars and close a transaction for the purchase or sale of Euros or dollars in minutes.

The issue occurs when investors or inexperienced traders do not have a proper management of capital and risk, with what must have certain knowledge and experience to finally operate in these kinds of markets that involve a risk that not everyone is prepared to assume.

The opening hours of the Forex market at Christmas




Dates and hours of the forex special

As we are on special dates also I wanted to show in the article the dates that usually close the recruitment in the foreign exchange market

Holiday periods and the FOREX 

Christmas: 

Closed 24 h from 24/12-23:00 to 23:00 25/12-


New Year's Eve:

Closed 24 h from 23:00 31/12 until 23:00 01/01

Perhaps the few days that the currency market a breath is taken before returning to the fray.


An of them thematic more important about the market of Forex (FOREX) is the domain of the time of negotiation and associate it to periods of maximum volume of negotiation. 



Thanks to the knowledge of the schedules of the forex, the trader or investor that act in the market of badges can be more familiar with them changes of volatility of the quote.

Is important for them traders locate these periods of time and find the point height where is produce more contracts of currency through the tracking of the schedules of the forex.

He market of foreign exchange, or forex, is is open and available for which it want to, them 24 hours of the day.

This is why traders can operate at any time, either during the day or night from anywhere in the world.

The best time to trade forex is when the market is more active and when superimposed schedules of major global financial centers.

Therefore it is there when most traders trade at the same time. This is the opportunity to take advantage of them movements in the market of currency and thus generate gains significant.


Definition Of Broker Online Trading





A broker is a person or a company that is dedicated to operate in the financial market, in this case in the FOREX, performing to its customers under the orders of those.


While an agent can work buying and selling currency for your customer or for himself, which can i.e. Act on their own or by how much of others, a broker only works for others running of buy and sell orders and charging a Commission for it.


In addition, the broker offers a brokerage executing orders, and agent lends an added advisory service and a wider knowledge of the market.


However, the terms are often confused, and a broker is identified with an agent. This is because many brokers perform functions of agents recommendation or advice. In Spanish, the term broker is equivalent to broker (financial broker, stock broker, broker FOREX, etc.). Therefore, the broker is the authorized element to mediate between the investor and the foreign exchange market. The latter pay commissions for intermediation services, which correspond to the payment of the know-how or know-how of the broker and its license to operate in the market.

As other financial markets, the Forex only can intervene directly licensed brokers and agents.


14 tips for beginners in forex





The forex is one of the models of more profitable investment that exists, but to make money on it must be familiar, learn new concepts, and have patience, and above all, great control of emotions.


That just knowing the forex, or start on it, can that are something lost or not is aware of the potential that has as an investment. For this reason, we will give some tips for those who are beginning to be interested in the forex market.

1. First, it is necessary to plan taking into account the objectives that you have and the limits which can be reached.

2. Of course, you should never invest money that is not or that is needed, as in any investment (by very safe to be) the things can go wrong and the money lost, and in forex, money very quickly be missed.

3. Before you begin, be studied very well what makes information, learn key concepts, tips, experiences of other people, ask questions that you have, see techniques of investment, etc.

4. Investing at the beginning, when you have much experience to go to gaining knowledge and technique. So less money is lost in the process of learning.

5. You have to find out about international operations, economic information, interest rates, and everything that may affect investment.

6. Think long term since short-term investments tend to be little or no cost-effective and very unstable.

7. Investments no let neither emotions nor by the hunches, but it should be kept cold mind.




8. It should be copied by others, and although it's good to start knowing what do ideally is to gradually develop their own analysis and investment strategy.

9. It is recommended to use forex Trading tools.

10. Better specialize in one or two currencies rather than try to know them and invest in all.

11. Before you begin to invest, although it may seem a waste of time before, it would be great to start with a demo account to test how the market and gain experience without any risk.

12. You have to understand that they can commit errors or losses at the beginning, but also these are a good investment because you learn to know much better what to do later and help improve investments in forex.

13. Choosing a good broker is essential, since a bad decision can be a big mistake. As currency market Forex is not a scam, but there are broker that you are.

14. Patience. It is necessary to keep calm, have patience, let the time pass and not despair.

In Colombia, the Prosecutor's office and the media present investment in forex as something illegal




Investing in Forex is not a crime


In Colombia, the Prosecutor's office and the media present investment in forex as something illegal, as a crime, which is of course not, because forex is nothing more than a huge global currency market where are sold and buy badges, so illegal to buy or sell shares in any of its forms.


What happened in the past, and that is still going on, it is that many people were fooled, but not for the forex market, but by criminals that captured money from people promising to invest in forex and generate high yields but invested in forex but stole it is, but not why the forex market is an illegal market , nor a black-market, although a poorly regulated market.

Who invests in forex without the necessary knowledge, and the temple that it requires, runs a great risk of losing your money, but will lose it because it has made a bad decision, but not because they have stolen it.






The forex market is speculative

Where a person buys or sells a currency with the hope of making money with the variation of the price of that currency, but if the result is contrary to that expected, the money is lost.

It's as simple as who buys an apartment waiting for this is value to sell it at one higher price, but it turns out that instead of winning value, the apartment ends up using less, which implies the loss of money, and that does not make that you purchase and apartment for sale is illegal but a risk investment.

Forex has bad image to the Colombian authorities

Because it has been used by unscrupulous to defraud people without training, naive, prey to greed, and it tends to be used for money laundering, but still in Colombia invest in forex is not a crime, albeit a little prestige and high-risk investment and therefore who invests in forex is not a criminal and the media and the public prosecutor should not present it as such.

Do you invest in the stock market? you have to see the Wolf of Wall Street




The film the Wolf of Wall Street, as its name implies, is a film that moves in the world of the stock exchange, financial markets, and by that only fact is enough so that anyone who is silver investing in stock market should see it, and is also based on a true story.



This film is based on an autobiographical book (entitled precisely the Wolf of Wall Street's Jordan R. Belfort, a stockbroker who was a great success but which then became mired in a criminal trial for fraud for his involvement in the handling of values that led him to be imprisoned for 22 months.


Uncensored, this film shows the life of a broker or stockbroker. You can see what to do to get to the top. It is evident that as stockbroker to sell what is who is in the way that is to earn commissions. The stockbroker's income are commissions for their operations, either buying or selling, and no matter if the operation is a failure or a success for your client (Investor), the Commission is charged. You have to earn commissions without remorse.






This peculiarity makes many runners and even firms and investment banks to feel tempted to manipulate the market in order to achieve maximum benefits regardless of its customers will ruin, or a whole country to be garbled, and the more greedy are not careful to do things properly to not end involved in criminal proceedings as it is the case of the protagonist of the film.

The film shows the reason why the broker is so ambitious. The stock market is a place where you can make much money as a broker and it allows access to luxuries and excesses of all kinds, out of reach of the majority of those who invest there. Quick and easy money give free rein to the worst human conditions imaginable.

This film makes it clear that the broker is no friend of the investor, as it is not the banker. They go by one's own to as result, so that the pensioner, small or medium saver intending to invest their small capital in a stock market, is going to be difficult, as it must pass through the hands of characters as the film.


How do you provide the stock exchange?



OBJECTIVE OF THE STOCK EXCHANGE

In Colombia the stock exchange is a company, shareholders, Board of Directors, Manager (which in President is called and is the Dr Juan Pablo Cordoba) and internal administration.
Has by object provide the service of put in contact to companies that need capital, (demanding of money) with people and companies that have of it, (providers of money) for them first it obtain of them second and these is it delivered in Exchange for receive a retribution represented in it part that les corresponds of them utilities of the company.

Demanding money companies get it suppliers selling them shares representing participation of suppliers purchasers of money on the property of them.
So that a company can sell on the stock exchange shares issued - so you call "station", it must be registered on the stock exchange, which achieved after an exhaustive analysis of the solvency and seriousness that she makes the company.
In practical terms, when a company needs money, for example to finance its expansion plans, it issues shares, i.e. documents of title of property, offering through the stock exchange. Who buy these shares, i.e. owned by a certain percentage, shall be entitled to the same percentage of the utilities of this.
A company's shares offered on the stock can be purchased by a natural person, or by another company.

The utilities that the buyer of shares receives - dividends are called - related to the amount of money invested in acquiring them, generate you some profitability, which can compare with receiving if, for example, invests that money in a PDT from a bank.
A typical example is what has just happened with the "issuance" of actions and implementation for sale of the Group Suramericana, Avianca - Taca, Ecopetrol and other companies. They issued shares and many people and companies acquired them becoming partners or shareholders, and as such, will receive part of the profits which they are suited.


THE MECHANISM OF OPERATION OF THE STOCK MARKET

The negotiation of shares between the seller (plaintiff's money) and the buyer (bidder's money) only can be done through an intermediary company generically called "broker", who must be enrolled in this, for whose registration is subjected to a very detailed scrutiny by the bag. I.e., the seller and the buyer of shares not can negotiate them directly.
The seller selects to a "runner" and you entrusted that offer them actions and the buyer also selects to a "runner" to offer buy them.
The intermediary or runner, that is a society, incurred in expenses to develop your management commercial. Those expenses the covers with income, that are constituted by a Commission that charged to who negotiated them actions.
The bag, which as explained is a company also incurs costs, covering with commissions charged to the runners.
Those costs correspond to them facilities and to the service of registration and administration of the transactions, today completely systematized, that lends to them runners.

The commissions are a proportion of the value of negotiation.





THE PRIMARY AND SECONDARY MARKETS

When a "CA" company issues shares and another company or individual acquire them, said that negotiation was made in the 'primary market'
However in the bag can be also the negotiation between two natural or legal persons, of actions that they have a for buying a company that issued them.
To send us to the example mentioned above, a person X may have bought Avianca - Taca actions when it issued them but now you need money - liquidity - and then also through a broker, offers them in the bag and you can negotiate them with another runner to whom a client and has entrusted it to acquire shares that will allow you to receive profits from the company that issued them.

When between seller and buyer is trading through of their respective runners actions that already have been issued and negotiated previously, is says that this new negotiation is made in the "market secondary"


SHARES OF FOREIGN COMPANIES

Today it is possible that a natural person or legal Colombian buy shares of companies from other countries, like for example Chile or Peru, who are registered on the stock exchange in its country, or that as a result a society or Peruvian natural person or a Chilean bought shares of Colombian companies.
For this negotiation to be possible, must be a formal agreement between the bags of the respective countries, backed in each by the authority which supervises financial operations. In our case, that authority is the Financial Superintendent.



NEGOTIATION OF BONDS

In the stock market is possible, similarly traded stock, negotiate debt bonds issued by companies or the Government.
It is important to remember that bonds are a mechanism used by the companies, that "emit" for raising capital, but which do not represent ownership of these but they are a kind of "receipt" issued by the company whom lends you money, which pays a fixed interest rate.
Her issuance of bonds by a company must be authorized by the Financial Superintendent.


THE "MARKET"

It is something that, for example in economic news from television, respondents are referred to when asked because it went up or down the price of a stock.



THE "INDEX" BAG

The television news report every day on the value of the "index" the Colombia stock exchange and exchanges of other countries, indices that have specific names, such as the NASDAQ.
The indices are simply a numerical indicator, which is calculated in a way that is not the case explain here, representing the proportion that came up or under the weighted average of the prices of the shares traded on that stock exchange.
If the index falls, it is because although the price of some actions had raised, globally and as a whole, the decline in prices is higher, and conversely if the index rises is because although there are low in price in some actions, globally and as a whole the price increase is higher.

Differences between Brokers and agents or brokers of stock exchange





In the world of the finance, the terms "broker" and "agent or runner's bag" are constantly confused.
In principle, them "brokers" are people that operate under the orders of them customers of the company that them hire. The agent of bag, instead, performed functions of advice financial to its customers, besides to work by has own. The terms are confused since many "brokers" also exert an advisory function, which are tasks of the agents.


"brokers" are people who are in charge of the procedures of buying and selling through the stock exchange. His compensation is based on commissions, receiving a certain percentage of the money invested. And always have as a reference tariffs.

"brokers" are the only people who can buy and sell shares. Not just a private person wants to invest its capital in shares. It could not do so because it is not authorized. For this reason, all investors (traders) have to go to the "brokers", who carry out such operations.






The brokers, on the other hand, advise and advise in the purchase of stocks or bonds that are listed on the stock exchange. One can say that they are intermediaries between companies that put their actions to the sale, i.e., sellers, and buyers, who are those who want to make a profit on their membership dues and are always looking for a rapprochement between the parties (seller and buyer) so that it translates into a good negotiation. For this reason, they tend to be sellers seekers to stock brokers, buyers get to make a good business. In addition, made difficult tasks of advising both parties so that everything goes under a legal framework and that both parties leave satisfied and benefit with the negotiation.

"brokers" can perform many functions and act in many different ways. The best-known is the sought-after intermediaries, although they can also search parties, doing a job that is very similar to the of the brokers, with the exception of multiplying its functions since "brokers" have a greater ability to maneuver.

To conclude and to make as clear as possible, we will say that a broker is a person who has extensive knowledge of business and finance, which will be used for consultants to sellers and buyers; and is the "broker" who acts as an intermediary between the business, through the actions, and the market, obeying orders. I.e., one complements the other, and if we want to do good business, we must not lose sight either of the two.

Forex and the role of women in business




Women have better qualities when it comes to doing business

Women have some qualities that make them best traders, although they will need two decades to see the women to take a greater role in the financial world.


Life is a constant change, or rather, a progress. Today women work more and are very comfortable with his new role in society.

Women today are more involved with the business, I think that everything is based on the evolution since they have expanded the level of knowledge in terms of financial investment and the macroeconomic vision of the world.


Women enjoy his new role as entrepreneurs

Women of today grow with two objectives in mind: the first is that, outside which was work that had, the family would always be the priority. The second objective is to work on something that really liked and like to do many different things.





Women and their success in Forex trading

Women's success kept her mind running at high speed. Certainly there is some routine, as is the case in any other work, but changes in the market, the macro developments and the need to stay abreast of what is happening in the world is a challenge that pleasantly assume daily since they have an infinite and contagious energy and are always one step ahead in almost all which also pushes them to be alert 24 hours a day, it seems that they also had a marriage with the foreign exchange market and manage very well to combine work and private life




Example of a woman's success in the Forex market in your everyday life:

 "I wake up around 4 o'clock in the morning and I'm going to my desk to see the graphics, leo news and see the economic calendar. At 7 am I'm aware of what is happening in the day and I have already made my analysis. Then I wake up at my family, I send girls to school and my husband to work, so I have until noon to focus on the market. When you close London, I take a break, pick up the girls and we eat together. At the end of the session for US. UU, again to be in the market for a little more than 3 hours. I work about 11 hours a day, but I don't live to work. I work to live, and that makes a difference in my personal life. I think that when you have your well defined goals in life, you only have to go for them. It is the best way to balance your personal and professional life. Make plans, do not leave things to chance and build my family on solid principles of love and respect makes it easier to have a career without one thing clash with each other. •”




Differences between men and women in the Trading?

Ego: the worst enemy of the operators, for many men lose one operation is much like losing their virility and they have not understood that the fact of losing is not a reason for revenge. You can not take revenge with the market because if you try it, you're doomed to failure.
In the currency market, women tend to be more humble. And they have more easily when it comes to perform different tasks at the same time, which is precisely what requires the market most of the time. Women are also much more persistent when they have clear a goal and do not be discourage as easily as men.




During these years more women have joined the financial world

Although in recent years it has been growing the number of women operating Forex, the proportion it still shows a male majority. Seems to be that it will take a couple of decades see the women to take a greater role in the financial world.

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