Forex Cow - Litrally a Cow to Earn Dollers!

Forex Market is termed as the biggest money market of the world with roughly 3 trillion dollars daily turnover! The Forex Trading is based on somewhat barter systems, prevailed just a few centuries back: Exchange one commodity (to buy) against the another commodity (to sell). In this sort of exchange one bartered one currency lot (buy) against the another currency lot (sell).A “Trade” is made in a Currency Pair, like USDJPY or GBPUSD or EURUSD or so, when Ask (Buy) or Bid (Sell) order is executed. Of the three trading formats, “Spot”, “Future” and “Option”, being the “Spot” more in traders’ advantage, be restricted to “Spot” Trading.

To start Forex trading you would need a "trading account" with a Forex broker company (, please put maximum efforts to select one to your entire satisfaction)! After finishing all the documentation, (usually application form, Agreement, commission tariff, etc.), you should receive your verified approved copies. You would then be required to deposit opening amounts (, it starts from US$ 100 or more, depends on the broker company). Usually within minutes your funds are acknowledged if deposited by Credit Cards, and you are allowed to start trading. Stop!

The Forex trading is done in two ways: one, through placing order through your agent (deputes by the broker), second, through on-line system! If you have reliable and high speed Internet connection you should take this facility to your advantage. As most of our discussion will be restricted to on-line Forex trading, please think of only on-line applications (programs), provided by broker’s company, to be friendly and understandable to you! Applications should be downloaded first to test the simulation / dummy trading. You should practice at-least two to three full dummy sessions involving hit-and-try approach and understanding the trading fully on two to three currency pairs. The dummy practice sessions will help you remove some misnomers and clear miss-concepts very much existed in new traders. The excitement will be tamed down, and traders will now be having over-exaggerative impression about Forex trading— a child-work! Stop!

Now you are almost ready and feel anxious to start trading. Aren't you? No, you hardly moved a few yards up! Don’t take live trading risk, if you still confuse basic terms and trading procedures. Go for some Forex Training Course, with interactive trading instructions. The trading tool which you would mostly need is Currency Pair Chart. The movement of the Currency is drawn between the two co-ordinates: Time (on x-axis, a horizontal ordinate) and Currency Bid/Ask Price (on y-axis, a vertical ordinate). The Time difference creates cursor to move along x-axis, and Price difference creates cursor to move along (y-axis). The combine cursors move gives out direction of the Currency Pair. Refer to the Chart drawn between USD and JPY.Unlike the terms bullish and bearish, commonly use in stock exchanges, the Forex Market is said always Bullish? The reason being, trade is done in both directions of the Forex Currency pair (when weak we sell, otherwise buy, in relation to other Currency). The one way Trade (say “Long” when buy) creates an “Open Position”, which is closed only when another way Trade (say “Short” when sell) is executed. Until a Trade is open, its difference with current price, results in Profit / Loss to the Trading Account’s Equity. To book Profit / Loss an “Open” is nullified with “Close” or vice versa (said Trade Squared).The Forex trading needs very sophisticated discipline, to be advantageous! In my research, there are Two main habits to be disciplined: “Greed” and “Trade Execution Time.” Your Greed will tempt you hold bigger (over leveraged) “Open Position” for more Profits and “Trade Execution Time” is trapped by the temptating movements – alluring bait by Market-Makers! So, never increase leverage over 50%. Should the Trade be ordering (“Open”), wait patiently for the Currency Price reaching close to its Previous low or high value? A Chart will quickly show the position. Near double-low or double-high would be the best time for Trade Execution (, sell at High and Buy at Low, leverage should not exceed 50% of the equity!) for normal condition. Keep before always risk to reward ratios and stick to it. To have Open Position, strictly under Risk-Control, a “Stop-Loss” order with “Trailing-Stop” with 2-10 “Trailing-Steps” should be placed. The Stop-Loss’s distance should be in place according to your Risk-Capacity! Say you can bear $100, so you should place Stop-Loss near that difference. Should Price Oscillation is big, then the risk-capacity, then wait for the market to slow-down? Don’t try to trade more than one currency pair at a time and avoid Trading in volatile conditions as it can easily mop-up your entire equity!Having given you some basic information and disclose the research out-come: Two glaring disciplines, which if never compromised in any condition, always put you on the list of those fortunate Traders who turned the huge Forex Market potential into their favor! Don't forget there is always no substitute of new techniques and further training! Good Luck!

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Disclaimer: This article is based on a sort of commercial research. It does give some valuable tips but no guarantee in whatsoever manner a profitable Trading, in all situations.

This is under work.