Why Good Poker Players Make Great Forex Traders

Investing and Gambling Similar

Many have compared investing to gambling and in many ways they may be correct. Playing poker and investing have many similarities. Some kinds of day trading involve considerable risk and the forex market is extremely risky and volatile much like a game of poker. Poker is probably the most popular game of skill and it comes as no surprise to find that many poker players also trade on forex exchanges. Poker tournaments are routinely broadcast on ESPN and many poker players have become household names in the US.
Discipline and Adaptability

Poker playing and forex trading require very similar skill sets. For example poker players must be very disciplined with nerves of steel. This characteristic is also the hallmark of a successful forex trader. Poker players and forex traders are methodical and not given to emotional responses to adverse situations. Poker players and forex traders are amenable to change and the forex market is constantly changing much like the cards in a game of Texas Hold ‘Em. Both must have the ability to adapt to sudden changes and the sudden rate changes of the Fed can have the same effect as a newly dealt card.
Logic and Reason

Poker players and successful forex traders have the ability to make quick decisions based on logic and reason. Typically emotion does not play a part in the decision making process. Both must be able to withstand losses without emotional reaction. Just as poker players do not win every hand forex traders may experience sudden losses due to rapidly changing market conditions. Forex traders and poker players are resilient and have the ability to bounce back after sudden losses.
Long Term Results

Forex traders and poker players focus on long term results. Just as chips accumulate so do pips. Poker players and forex traders are usually confident people. Forex trading can easily be as volatile and ever changing as a game of poker and both require a high degree of confidence. Given these similar characteristics it would not be surprising to learn that many top poker players also trade forex!

FOREX CURRENCY TRADING

FX, Forex or Foreign Exchange, is all about exchange of currencies from one hand to another at an ongoing price in the market. Forex is all about investing money in foreign currencies, just gain profit by selling at a higher price, the one you hold, just to buy another one at a lower price. Earlier, not many traders were clear about the Forex trading and that Forex is just short for "foreign exchange", as it did not get much publicity through media.

Foreign Exchange market is the biggest financial market in the world, with a potential of fast and great gains and a sizable number of investors. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors.

About a decade ago, currency trading was only limited to large banks and financial firms because they were the only ones to have access to the tools and methods required to trade Forex market. However recently, due to up and coming efficient online platforms, technology has advanced to the point of being accessible to any and every individual trader who wishes to trade or invest in Forex. Marketforex.net being one of finest online trading platforms is easily accessible by all who are interested in investing in Forex.

Asian markets advance on U.S. economic recovery; Euro and Pound at higher levels

Fri, Oct 30 2009, 07:12 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - Asian markets are going through a bid session on Friday after three consecutive days win negative, on improved optimism after U.S. GDP showed that the world's main economy is coming out of a year-long crisis. Euro and Pound consolidate at higher levels.

Japanese Nikkei Index advances 1.4%, while Hong Kong's Hang Seng Index soars 3%, and South Korean Kospi Index adds 0.5%. Markets in China and Australia print advances beyond 1%.

Markets are buoyant on U.S. GDP, which advanced at a 3.5% on the third quarter, according to the U.S. Commerce Department, due to a sharp increase on private consumption. The world' largest economy seems to have tackled economic slowdown after a year-long recession period although analysts advice a cautious approach to U.S. data, as government stimulus might have had too influence on economic recovery.

Euro and Pound bounce up

EUR/USD decline from 1.5060 year to date high, bottomed on Thursday at 1.4680 and the Euro rallied during the day, getting bak some of the ground lost during the previous days of the week to find resistance at 1.4850 area and consolidate during Asian session from 1.4820 to 1.4850/55.

GBP/USD rallied on Thursday from 1.6335 low during Asian session to break above previous week high at 1.6465 on the back of U.S. GDP data and reach a fresh high at 1.6600. During Asian session, the Pound has consolidated between 1.6525 and 1.6600.

USD/JPY has been going up and down; Dollar decline from 91.30 week high bottomed at 90.25 on Thursday, and the pair soared during European and U.S. sessions up to 91.60 to turn down and decline during Asian session reaching levels below 91.00 at the moment of writing.

Forex and Currency News

et breaking forex and currency news - updated continually through our multi-source technology. Access currency analysis and forecasts, live foreign exchange rates, central bank interest rates, and currency trading strategies from experienced fx traders.
UPDATE 1-S.Korea Sept factory output jumps, beats forecasts

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South Korean industrial output rebounded by more than expected in September, with factories at their busiest in 18 months, backing views the economy is recovering and the central bank will lift rates next year.

GLOBAL MARKETS-Asia stocks rebound from slide, earnings a boost

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XE Forex Rates at 2009-10-30 07:00 UTC

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XE hourly rates at 2009-10-30 07:00 UTC

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Currency Trading and Forex Tips

Currency trading is when you buy and sell currency on the foreign exchange (or "Forex") market with the intent to make money.

How Forex Works

The currency exchange rate is the rate at which one currency can be exchanged for another. It is always quoted in pairs like the EUR/USD (the Euro and the US Dollar). Exchange rates fluctuate based on economic factors like inflation, industrial production and geopolitical events. These factors will influence whether you buy or sell a currency pair.

Example of a Forex Trade:
The EUR/USD rate represents the number of US Dollars one Euro can purchase. If you believe that the Euro will increase in value against the US Dollar, you will buy Euros with US Dollars. If the exchange rate rises, you will sell the Euros back, making a profit. Please keep in mind that forex trading involves a high risk of loss.

Why Trade Currencies?

Forex is the world's largest market. With about 3.2 trillion US dollars in daily volume and 24-hour market action, we believe it is a true "step above" the equities market for the serious trader. Some key differences are:

• Many firms don't charge commissions – you pay only the bid/ask spreads.
• There's 24 hour trading – you dictate when to trade and how to trade.
• You can trade on leverage, but this can magnify potential gains and losses.
• You can focus on picking from a few currencies rather then from 5000 stocks.
• Forex is accessible – you don’t need a lot of money to get started.

Forex Market Participants

The main participants in the forex market are central banks, commercial and investment banks, hedge funds, pension funds, corporations and private speculators. An estimated 95% of the daily trading volume in the is done by speculators and investors - ranging from the individual trader to the leading banks of the world.
The remaining 5% is traded by companies and governments who need to convert profits made in the course of doing business into their domestic currency.
The advent of online trading has made the forex market more accessible than ever before - opening up the opportunity to individual speculators in a less expensive and more efficient manner.

Understanding Forex Quotes

Reading a foreign exchange quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.
The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.
When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.
In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.
In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.
Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.
When trading forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).