Trading principles

Trading principles

Some of the most successful investors are wrong in their market opinion more often than they are right. The most important thing is when they are wrong, they accept losses quickly and willingly. But when they are right, they let their profit run and pyramid their profitable trading position(s) by increasing their open position(s).
Rules: Do not over trade. Always keep sufficient capital and hold some funds in reserve.

Why Should You Invest In FOREX?

The following are some of the more popular and conventional investment tools available in the market today. The illustrations below are based on an investment amount or $1,000,000.

*	Real Estate Brokerage Fee of 2% = $20,000
*	Stocks & Shares Brokerage Fee of 0.75% + 1.25% ( Buy + Sell ) $20,000
*	FOREX Only on Trading = US $ 200 per roundturn

Upon careful scrutiny of the above options, it is evident that FOREX is indeed the most cost effective investment tool available today. In addition, regardless of how good or how bad the different economies are, FOREX presents ample opportunities for capital maximization.

*	The FOREX Market is never saturated, and it's provides opportunities to profit from buying at a low price and selling at a higher price or selling at a high price and then buying back at a lower price depending on whether the currency market is moving in an upward or downward trend.
*	Next to cash itself, it is the Best Form of Liquidity.
*	As illustrated above, it has the Lowest Transaction Cost
*	It is a Highly Flexible Investment tool.

There is the ability to Cut-loss and reduce loss at anytime.
The Forex Market is also the largest financial market in the world with average daily transaction estimated at US$ 3.2 Trillion. It has been shown that no single person or any central bank or any one country can affect the market. The Forex Market is governed by its own rules

 Differences Between Stock And Forex

 FOREX

*	Two-way trading market
*	Twenty hour market
*	Only 0.5%-1% of the total amount traded is required as a margin deposit, to begin trading.
*	Dealing in an international market where buyers and sellers are ever present.
*	Contracts can be closed/ liquidated on same or on any other day of one's choice.
*	Interest is paid daily based on number of days the position is held in trade. Brokerage fee is based on a fixed amount per lot traded.
*	Open trading-International Market place.
*	Locking is available.

Forex is better than Unit Trust

 What is FOREX?ore

If all countries in the world use a common currency, they will be no need to understand foreign exchange! In reality, however, every country has its own currency. The foreign exchange market has emerged because of existence of different national currencies national currencies and of the need for the international transaction such as trade, investment etc. Given the large volume of international transaction, banks and trading companies need mechanism to facilitate the exchange of currencies.

There are 2 type of Forex Market

* SPOT FOREX
* FUTURE FOREX

Traders in FOREX are described collectively as the FOREX. There is however, no corresponding market place. The FOREX market is not located in a single place like stock exchanges (e.g. NYSE) or the futures market (e.g. CBOT); THAT IS, TRADING DOES NOT OCCUR ON A "FLOOR". Instead transactions are carried out by telephone, internet or telex from many separate locations, often in different cities and countries.

Many outsider think of FOREX trading as requiring arcane skills and great sophistication and this view is reinforced by the jargon used by FOREX dealer. In fact, these technical terms actually cloak some rather straight forward meanings.

We at EDGAR International Company Limited, strive to overcome the most seemingly tedious issue by highlighting the relevant elements needed in a successful FOREX transaction. Essentially, our concentration lies on 4 major currencies which are all traded against or with the U.S dollar. They are :

* British Pound Sterling
* Japanese Yen
* Swiss Franc
* Euro currencies

Why FOREX has become a popular investment nowadays?

The purpose of engaging in foreign exchange is to anticipate price fluctuation for monetary gain. For this one must be willing to assume risk in exchange for profit. Many investors choose to enter the foreign exchange trading business for the following reasons:

*	There is worldwide coverage of Social, Political and Economic news that influence exchange rates.
*	The market offers 20 hours non-stop entry and exit opportunities.
*	There is no ruling body. I.e., the market cannot be monopolized by any government, central bank or organization.
*	There is no time limit to hold position(s).
*	Instant execution of entry and exit orders. I.e., buy/sell can be done.
*	immediately upon happening of any important incident that may affect the exchange rate and this help to maximize profits or minimize losses.
*	Numerous strategies are available to protect position(s) against sudden adverse price fluctuations. eg, locking.
*	The leverage facility allows investors to earn interest on the full contract value while using a relatively small deposit.