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Main Benefits of Trading ETFs

ETFs, or Exchange Traded Funds, are becoming more and more popular over the past few years. What began with just a handful of funds has become its own niche of investment with hundreds of funds which cover a variety of sectors and indexes.

In this article, I'll share with you some of the main benefits of trading ETFs and why I believe that you should make them an integral part of your investment portfolio.

But first, what is an Exchange Traded Fund?

An ETF is an investment tool that shadows a basket of stocks or bonds. Usually, these stocks or bonds belong to a market index or a business sector. The ETF will usually shadow the price movements of this basket of stocks and bonds. For instance, an S&P 500 ETF will follow the price movements of the actual S&P index. This is done by actually buying shares of the 500 companies in the S&P 500 in direct proportion to their weight in the index.

These 500 stocks change prices and so the price of the ETF changes as well. By investing…

Yin Yang Forex Trading Course vs Forex Nitty Gritty

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Choosing the best Forex course for you to use and profit with is not so easy. You have to take into account how much time you can spend going over the material in the course you get and how much money you can invest to buy the course in the first place.

In this article I want to compare two course, the Yin Yang Forex Trading Course by Scott Shubert, and the Forex Nitty Gritty course by Bill Poulos. Which one of these 2 recommended courses is the right one for you?

Price

Forex Nitty Gritty is marketed as an entry level course and is priced accordingly. The Yin Yang Forex trading course is much more expensive, over 10 times as much in fact so not every trader will be able to afford it. If you don't have a lot of money to invest in your Forex education, your choice has pretty much been made for you in this case.

Are you Advanced

If you're an experienced Forex trader, you don't have a need for Forex Nitty Gritty. It's a course for beginners or intermediate traders. Scott Sh…

How Technology Changes Forex Trading

In this article I want to talk about Forex trading in the 21st century. Specifically, I want to discuss how technology is changing the way in which people trade in the currency market and to speculate about where the market is going with the current trends.

In the past, forex trading was mostly done in order to have foreign currency for travel and commerce. Only later did it evolve into an actual trading arena where people trade different currencies as they would any other commodity or stock or bond.

Naturally, before the Internet was formed, it was very difficult for small time traders to take an active part in the market. They simply had no way of being adequately updated as to changing market prices, trends, shifts, and news. They could trade, but the positions they held were intended to be held for longer periods of time.

With the internet, even private traders could now have all the information they needed at any given time and could trade in a large number of trades.

At first, this …

How to Be a Professional Forex Trader

I'm glad that you want to be a professional Forex trader. It means that you're serious about being the best trader you can be and that you realize that you won't get long term results be being amateurish.

The truth is that to succeed in Forex you need to treat it like a business and this is in fact the first step in becoming a professional trader. Treating Forex as a business is like entering a whole new frame of mind.

A business requires planning, goal setting, systems, accounts, testing, tweaking, and investment. This may seem like a big hassle but it doesn't have to consume too much of your time. However, being orderly and planning ahead is very important to achieve consistent results.

The second step is to acquire the right kind of knowledge. Many traders trade according to hunches or a unfounded belief in their own trading prowess. The truth is that the Forex market is complex, volatile, tricky, but you can do a lot to increase your chances of making good trades a…

The Most Common Currencies Used in the Forex Market

The Forex market is where you trade currencies. You buy one currency by selling another. In essence, what you're always trading are currency pairs, make up of two currencies, in which the price of the pair is the value ration between one currency and the other. For instance, if we take the EUR/USD pair and say its value today is 1.4000, it means that each Euro which is the first currency in the pair is worth 1.4000 US Dollars.

There are dozens of currency pairs in the Forex market as there are many countries in the world. These currency pairs are usually divided into two groups: Forex majors and Forex exotics.

The Forex Majors are a group of 6-7 pairs which make up the bulk of the trading volume in the market. These include the EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, and USD/CAD. As you can see, the currencies of the Eurozone, Britain, US, Canada, Switzerland, Japan, and Australia are represented.

In this small group the 4 earlier pairs in the list are a group among themselves a…

How to Analyze Forex Trading Charts

One of the main things you need to know in order to succeed in currency trading is how to analyze Forex trading charts. Naturally, this is a topic which whole books are written about so this article can only be a partial look at this important and massive topic.

Nevertheless, I will try to give you a broad but useful rundown as to what you need to do to be able to read Forex charts and work with them for your own long term success.

At the top of each Forex chart you will see a few important details you need to know about: the currency pair in question and the timeframe of the chart. There are numerous currency pairs you can rade as you always buy one currnecy with another or sell one for another. Some of the more common currency pairs are EUR/USD, USD/JPY, and GPB/USD. There are dozens of pairs and you need to be aware which is the one the chart you're looking at is dealing with.

On each chart you will see a representation of the prices of this currency pair. On some charts this is r…