Welcome to Trading Guide
 |
|
 |
|
 |
Options Trading Article
This is a selection made from among articles on Options Trading. For a permanent link to this article, or to bookmark it for future reading, click here.
Avoiding The Pitfalls Of Forex Currency Trading
from:
Anybody who will tell you that trading foreign exchange currencies is without an iota of risk definitely has a hidden agenda and might be trying to sell you something. Because in truth, forex currency trading comes with risks that are equal in magnitude to the level of gains you are to expect from it.
Dealing with forex currency means trading with a huge sums of money that may or may not operate in your favor at all times. And because gargantuan sums are involved, you have to be extra careful and exercise greater prudence with such transactions.
This does not mean, however, that forex currency trading is the devil's advocate. As said earlier, there, too, a substantials amounts to be gained, if you know how to play the game. Winning in forex trading is not simply a matter of luck, but a matter of intuition, know-how and intelligent forecasting.
You can avoid the pain of losses by trying to minimize the risks involved. There are many tools that you can utilize to help you trade profitably and successfully with the least possible losses.
If you have been reading up on forex currency trading in the newspapers and the Internet, you will notice that it was once ripe with scams and fraudulent acts, sending even the most powerful market movers and businessmen to jail.
While the forex market has sworn that it has cleaned up since, how "clean" it is remains to be proven. Because this market is very vast, we can never really be sure if all the bad apples have been totally eradicated.
Brokering
The first thing you usually do when you decide to do forex currency trading is to sign up with a broker. Having a professional on your side not only will help minimize your risk but will also aid in giving you a better understanding of the industry you're in. And because the forex market trades 24 hours a day, you simply do not have the capacity to monitor currency movements at all times.
However, most unknowing first-time forex traders often get duped by ill-meaning brokers and lose a lot of money even before they get a chance to trade in the real market. Thus, choosing a reliable broker with a good background is necessary. Do not rush into hiring somebody just because he says he's done this or that.
A good broker is usually associated with a large institution that can testify to his reputation and skills. If the person you're talking to has no ample backing from the right people, you'd better sound the alarm and move on to the next person.
In America, licensed brokers have affiliations with either the National Futures Association or the Commodities Futures Trading Commission.
Other factors
You must also realize that the forex currency trading industry is subject to economic conditions. Factors like interest rates, market shifts and political changes all contribute to the performance of a certain currency.
It is wise to educate yourself on these matters so you won't have to rely solely on your broker to make forex decisions for you. Since it's your money on the line, it is most prudent that you also get in-the-know.
Options Trading Specific links
Options Trading News
Citigroup pressured to sell all or portion - Cincinnati.com
CEO Vikram Pandit told managers he opposes breaking up the company, but the bank's board of directors was meeting Friday to discuss whether to do exactly that, the Wall Street Journal reported. Investors are worried that all the risky debt on ...
Read more...Oil price predicted to fall below $40 by February in options trading - Calgary Herald
B. C. - Crude oil traders placed bets Friday that February crude oil will fall below $40 a barrel, as futures touched $48.25 a barrel, the lowest since May 2005. February $40 puts, among the most active options contracts on the New york mercantile ...
Read more...Explaining investment terms to a layman - News Sun
Dear Scott: I've heard the terms "futures trading," "derivatives" and "hedging." Can you explain what those investment terms mean to a layman like me? Does the average person have the ability to do this type of investing? -- N.K., Antioch Dear N.K ...
Read more...Capital Institutional Services (CAPIS) Hires Director of Options ... - Businesswire.com
DALLAS--( BUSINESS WIRE )--Capital Institutional Services, Inc. (CAPIS) one of the industry's top institutional agency brokerages and independent research providers, has announced that Ian Kindler, CFA, has joined the firm as Director of Options ...
Read more...Rockier Than 1929 - Barron's Online
TODAY'S STOCK MARKET IS POISED to surpass 1929's as the most volatile ever. Goldman Sachs derivatives strategists told clients on Friday that Standard & Poor's 500 three-month realized volatility is now 66%, surpassing levels of the 1987 crash and ...
Read more...