Archive for May, 2015

Traders diary

Friday, May 29th, 2015

Is it possible to evaluate your trading system objectively? Is there any sense to write a traders diary? Or you need to create a special program to monitor statistics? What results and output we can get? How can we use results and statistics? Should we be consistent and write completely everything or better not to be involved in details and just jot down only the most important data?

The way to success in trading is usually difficult, and moreover goes through a nasty area that probably no one likes – a bureaucracy, a lot of papers, statistics evaluation and investigation. In short, logging trading or traders diary. But this is an absolutely necessary condition to create a good trading system and most importantly to have a good feedback.

Trading Diary is a mirror of your personality and your trading strategy.

Can you imagine that you are using your trading system for about a year and do not have trading diary? If so, then you have only a single summary – if you are in profit or in loss. At best, you can calculate the profit or loss and their percentage.

If you want to know the level of a trader, look at his trading diary. Of course if he trust you so much that will show you his diary. If he does, his diary will show you a lot.

What can you find out from the well written diary:

– The number of deals during a given period
– The success of trading sнstem in percentage
– Nominal estimate of profit or loss
– Percentage estimate of profit or loss
– The success of individual currency pairs in %
– Average grade of profits and losses
– The percentage of drawdown
– The success of long and short positions
– The average value of stop loss
– The size of the operated position
– Conditions of entry and exit
– Psychology of entry and exit
– Other notes on individual deals

In other words, you will find out everything you need for further improving and customize your trading system.
Consistency, attention and patience are the necessary conditions for the proper conduct of the trade diary. Although it is very tedious and laborious work, but only it can fully show where you make mistakes, which currency pairs are not suitable for your strategy, if you need to calculate the size of the stop loss differently etc.

There is not necessary to use any complicated software. Everything you need can be written to Excel, or even on paper (for conservative traders).

At the initial stage, you need to consider what statistics are needed for the future optimization of your trading system. Every system has its own specifics and every trader has his own preferences. In addition, a lot will depend on what time periods you are trading. Of course data and conclusions 5 minute period will be materially different from one hour frame. Analyzing and recorded data depend on your goals at the moment. For example, if you want to improve the ratio profit/risk, then you need to keep track of the average profit and average loss and possibility to increase level of take profit and reduce stop loss. And analysis will help you to understand how the number of deals will reduce, if you increase take profit for example on 10 points.
At the same time, how it will affect profitability in total.
When you know which data you want to analyze, all you neeв to determine what parameters to track. Ideal to issue it as a table. At the base will always be the date, the currency pair, the size of the position, the time period, the time of entry, exit, etc.

trading diary
The table prepared in this way can always be changed and supplemented in order to have all the necessary data for control and correction of your trading system.

Try to discard superfluous information, not to lose a lot of time filling the table. On the other hand seek to find all the necessary information. Do not underestimate the importance of statistics. Discover all the advantages of this boring science, and use it for your benefit. Keep control of all that you can control in your work.

How to reduce stress trading forex

Tuesday, May 26th, 2015

no stress

How to get rid of stress while trading forex?

Have you concentrated on trading so much, that in the final it had a negative impact on the results? This is a classic example of stress, so called “productive” stress. Nervousness usually occurs when you check every detail so carefully that every action expose total criticism.
This behavior is also characteristic of the athletes, students and people of art, has a negative impact on performance as a whole, because in the pursuit of the ideal, a person often stops to see the obvious things and losing the ability to think sensibly. Being traders, we are constantly exposed to the pressure of “pursuit of profit”. As a result we often forget about the need to follow the plan, or the importance of risk management.

Lets consider a few things that can help to deal with stress and nervousness increased during trading.

Forget about the “perfect deal”

Most psychologists who study trading have come to the conclusion that the most common source of stress is perfectionism. Traders obsessed with that the need to find the perfect moment to open and close the deal, maximize profits by controlling the size of the deal and never have unprofitable positions.
Such commitment to the ideal, always end with deep frustrations in yourself. Because in reality, it is impossible to achieve all of these moments.
Instead of looking for “perfect deal” and trying to avoid losses completely, remind yourself that there is nothing unusual in the fact that the market does not always go in the direction you want. Controlled loss or a situation when you have earned a few points less than was possible – is not the end of your career as a trader. This is a common situation.

Focus on the process, not on profit

For someone can be very difficult to forget about the “perfect deal”, because it is wrongly interpreted as a lack of ambition. If you are in such situation, it is better for you to set goals based on adherence to the process and not on the achievement of profit.

For example plan that you will stick to your investment plan, limit the losses and increase profits. At the end of each trading day, you can ask yourself the following questions: did I have entered the market as required by my trading system? Did I do all necessary modifications of my positions? Do I retain appropriate control of risk? If all the questions you answered yes, you are going right. If you want to be perfect, focus on good trading and management activities and processes.

Increases the risk slowly

Next cause of nervousness in trading is an inordinate increase the risk, instead of gradual increase. This usually
happens when a trader after a series of successful deals, starts to be too confident and during the following deals risk unnecessarily.
Without relevant changes in the psyche, this can contribute mental pressure, even if you continue to trade in the same manner. To visualize this, imagine yourself a professional football player who is going to hit a penalty in the final minute of the unresolved match. Are you going to do something that you have done a lot of time. But the mental pressure in attempt to get the winning goal is much larger than typically. In such situation, even the most experienced players lose their composure. So there is nothing surprising in the fact that traders can avoid much more mistakes when they realize the risk.
To avoid this, you can increase the risk gradually, in any case not to double or triple your position in a moment.
Also, what can help you, to remind yourself that the only thing that has changed – the amount of risk, and the rest are working as usual and you stick to the same plan as always.

Reduce for some time the amount of the trading capital.

Another way is to reduce positions and capital. We strongly recommend you to work with such a sum to the possible loss (your Stop-loss order) that can be mentally and financially acceptable for you. Thus your trading will become emotionless and stress-less. For everyone this amount can be different. Everybody has hiss own financial resources. Someone will work with standard lots, and someone with a mini or micro lots.
For example, if you are currently trading on a real FOREX account with 10 000$, but when you open a position, you start to get nervous and tracking on virtually every pip and you are afraid every loss (even if it is 2% of the capital), then reduce your capital for example to $5000. And at the same time work with half of your usual position (lot). After that your trading would have to be less emotional.
Once when you gain confidence in your system and again start to make a profit without stress, you can gradually increase the capital to initial $10 000.

Move away from the monitor in time

Excessive work also causes nervousness and stress. There is nothing surprising. The inner desire to earn sometimes overshadows rational thinking. Instead of following trading system, we allow emotions to win. And when succumb to the urge to return what we lost, we can be in a situation where we open a deal after a deal. And before you get yourself, you lose a large number of money.
The most reasonable in this situation is to move away from the monitor as soon as we incur the maximum acceptable loss.
Sometimes week pause can help. This means that you should completely forget about trading for a week and divert thought with something else. Remember nothing will not run away from you, the financial markets will exist for a long time.

Starting to use longer time period, helped a lot of traders. For example in stead of using 15-minute charts start to use hour or four-hour charts. You will trade less, but you have better signals and more time.

Liberalize

It is well known that we have the greatest fear when we are faced with something unfamiliar.
Another way of getting rid of stress is constant development (new trading systems or ideas for improving existing ones). But here, you need to keep a sense of proportion and carefully select the information being taken. Only qualitative information, which will be held through a filtr of common intelligence, can benefit.
Read books, search information in internet, visit several webinars. It is also useful to visit good workshop with an experienced lecturer. The experience gained from the person who if successful in forex trading and ready to share his knowledge is really immeasurable. This will not only help you to improve your professionalism, but also increase your motivation to work and further education.

Trading is also complicated by the fact that for every decision you must take full responsibility. Sure it is nice to have someone with whom you can consult about each deal. But again, you need to choose carefully with whom to turn to for advice.

Live a full life

When your world revolves only around the forex and the market is not moving in the direction you want, you can feel that everything collapses. If trading is the only thing that feeds you and no more exists for you, you are very vulnerable. And you can easy fall into a deep depression. As teaches old wisdom – “do not put all eggs in one basket.” If you do not adhere this rule, it is easy to get to the very unpleasant situation.
For distraction from thinking about forex for the time when the market moves against you, you should get something else to direct your activity on. It does not matter whether it is a soothing activity, or on the contrary extreme sport, the main thing is to change activity.

Output

The main thing is to worry if sometimes you were too nervous and this has led you to more stress. If you feel that it begins again, get away from the monitor, remind yourself that perfect performance and perfect traders exist only in a perfect world. They do not exist in reality.
Go back to your real expectations, and you’ll be surprised how easy following the plan and realistic goals will change your trading.

How to become a trader

Thursday, May 21st, 2015

start

What you need to do to become a trader?

When a person decides to become a trader, he is interested in a lot of questions: how to do it, how much time he have to spend in order to achieve his goals, what difficult can appear, and so on?
Lets try to describe what you need to do to become a trader.
Should warn in advance – every trader selects a set of action on his own. That means that it is impossible to describe the exact necessary algorithm.

I offer a general scheme, which can take advantage of a novice. So, consider the 8 steps that you must follow in order to become a successful trader.

1. Go from talking to action!

If you decide to start learning forex trading, you must immediately begin to act. To do this, find the original information: who are called traders, what forex is and how it function. The more information – the better. Try to learn everything related to the subject of finance. Further examine in details, what deal is: how they open, who buys and who sells, which profit or loss they can bring, the best programs for traders.

There are other ways – take a course or talk on the discussion forums.

2. When all terms become clear, and the word “graphics”, “trading strategy”, “platform”, “quotes” and others from this sphere will no longer be strange for you, you can proceed to the opening a demo account. This virtual account is perfect for studying, because it does not require real money. At the same time try to combine your theoretical knowledge with the practice will be useful.

3. After you pass the first two stages, the fun begins. Let’s try to learn how to earn by trading. This part of the training is complex, so it may take some time.
On average, to learn how to earn by trading, may take a few years (2-3). Of course there are other cases when people do it much faster. But you should not hurry. The trader is a profession, not just a way to earn easy money.

4. You can understand how to create your strategy, studying the thematic literature. Today there are many books about forex trading. You can see and learn other people trading strategies, styles and approaches to trading. After trying a few of them you can understand what is suitable for you.

Also useful would be to study the materials on money management and learn how to manage your capital.

5. This step follows from previous. All knowledge is required to apply in practice. For example, after reading about the graphical analysis, and going into a graphics program, it is necessary to look yourself shapes in the chart. And seeing a certain method of money management, try to apply it in your trading.
So everything you learn, you should try on practice. Only such way will let you find your own approach.

6. After you pass all the previous steps and determine your approach to trading, another difficult stage begins: creation of a strategy that will be profitable.

7. Open a real account. It is important not to invest large sums at once, but try your technique during several months. Results will show if your technique successful or not. If yes – excellent, go on. If no, do not worry, just analyze your mistakes and correct them.

8. And the last point: psychology. All traders risk, and thus the emotions of some of them may just rolls over. It is important to learn to control and suppress emotions. Because if your emotions lead you, you have no chance for success.

Pass each step in order and you will certainly be able to become a successful trader. But it is necessary to note once again that this plan is just approximate.

So you can see that you have to learn trading by yourself. Yes, you cannot study this profession in university. But, fortunately, there is the opportunity to learn from successful traders.

Remember,  all depends on your desire.

I wish you success!

Create your own forex trading system

Monday, May 18th, 2015

forex chart

If you try to find forex trading system, you will see that there are hundreds of offers in the Internet. They offer you a super forex trading system and promise make you a millionaire overnight for a very moderate price.

The proposal is often accompanied by graphics that clearly show the exceptional performance of the system. And you may get an idea that several hundred dollars not too much for a miracle system. And you are sure that the magic system will return invested money after just a few deals. However, the reality is not so easy.
The proposed forex trading systems may be workable. The problem is that traders have bought the system and often suffer losses simply because of a lack of discipline. They just not adhere to all rules, required by the system.

Perhaps instead of paying hundreds or even thousands of dollars for trading system, which you do not understand, better spend time and create your own system.

It is not so difficult to create your own trading system. And it will be your system. System that is sharpened especially for you. But here the decisive factor also is discipline and compliance with rules.

Objectives of the forex trading system

Besides the natural goal – getting good profit, you need to have other goals that will help you become successful at  forex.
There are two purposes – to recognize the trend as soon as possible and protect you against quick changes of trend.
If you manage to achieve both objectives in one system, then you will have a good chance to become a successful trader.
However, to achieve both objectives in single system is not very easy, because they are essentially opposed. If the system allows to identify a trend in the very beginning, it will often give false signals. But if your system protects you from false vibrations trend, the more likely it will also “protect” you from most lucrative deals. Therefore it is important to find a compromise solution that will make both goals to be achieved.

Testing trading system

After you create your system, you need to try it. There are special programs to test the system on the history. However, better to test the system manually. Thus the psychological factor will be used, and you control discipline. In any case this can not be done in a hurry.
It is better for a long time to create, test, and improve the system than lose money. When you are enough confident in your system, start to test it on demo account. Let it take several months before you start to work on real money.

The first point that needs to be taken into account is what type of trader you are. Do you prefer quick results or you are ready to wait a few weeks or even months? Do you want to monitor the charts every day, or once a week is enough? These questions will help you determine the time period which you should operate.

Find indicators that show the emergence of a new trend. It is directly related to the purpose – to identify the emergence of a new trend as early as possible.
For this purpose usually used the moving average, or its combinations with different time periods.

You also need to find an indicator that confirms the trend. This problem is related with our second goal – to protect us from false market fluctuations.
For this you can analyze several time periods, as well as channels and trend lines.

Further moment is risk management. Determine the allowable amount of damages per one deal. As it is unpleasant, but losses also should be planned.
Then, planning opening  and closing the position. And the most important is the closing. Plan where your goal is – point of closing.
Write down your system on paper and strictly follow it. This is a crucial moment in the creation of the system. Write down the rules of your system, and always adhere them whatever happens. Once again, the discipline provides a large part of the success. And if you not follow the rules, the entire value of the system is reduced to zero.

Automated Forex trading system

Tuesday, May 12th, 2015

fxrobot

Automated forex trading system or Forex robot trading.
Many people dream to create a mechanism, which brings profit automatically without the need for constant active participation. The same applies to forex trading.
But is it realistic? Is automated forex trading system or a so-called adviser  able to trade consistently and successfully? What principles does it work?
How easy is it to create? What types of adviser exist? Which of them are worthy of attention?

So what is the automated forex trading system (AFTS)?
AFTS or forex robot – a system that works without your participation, completely independently. It does not require for your mind to open the position, but nevertheless working according to the rules that you had established. Therefore there is no need to sit for hours in front of the monitor, waiting for the right signal. Automated trading system do it for you.
In essence automated forex trading system – a program that has a set of rules governing the opening and closing of the transaction and independently establish the order on the trading platform.
The principle of operation of the robot can be based on anything, such as a crossing of the moving averages.
What traders think about automated forex trading systems? All traders can be divided into two unequal groups.
Most of them do not even believe in the existence of such systems, and especially in their effectiveness. A minority believes that such systems exist and may even be profitable.

All existing robots can be divided to automatic and semi-automatic.

Automatic after installation do not need any your further action. The system automatically opens a transaction, calculates and sets order stop loss and take profit, and then closes the deal.

Semi-automatic system analyzes the situation on the market and just indicates suitable conditions for the deal. And the trader has to opens a deal manually.

So it it possibly to create a really automated forex trading system that works successfully and completely automatically? The most common trading platform is Metatrader, which allows programming and creation of various trading systems. Therefore if you have a working trading system, it is possible to write a program,
which will work by your system. But your system must be really profitable. In addition, to create and configure the program for automatically trading is quite a serious matter, so better charge this a professional. In any case, automated forex trading system must be tested on a demo account at least 3 months before you let it deal with real money.

And of course you should not to sit in front of the computer and staring how the robot works. First because you lose precious time, and in fact a robot created for saving your time. Secondly you will always be tempted to intervene in the operation of the robot. Of course periodically, at least once a day, you need to check the results of automated trading. And if the results are acceptable, then that’s enough. This is just one of those cases where the best strategy is – “Works – do not touch!”

The two main advantages of the robot – Forex robot is never tired and has no emotions. At the same time, the robots have their drawbacks, which often exceed their dignity. Therefore, the creation and use of robots is allowed only by experienced traders. For automated forex trading system is necessary a special program, which must be setted according to your preferences. For correct work of robot the computer must be turned on and connected to the Internet nonstop. It is necessary that the robot has its own computer.

That means that the computer is not used for any other purposes, and that no one had access to it. Any failures in the system, reboot, loss of Internet connection or even children playing at the computer can lead to the risk.
Protect yourself from these risks by using the virtual server or VPS (Virtual Private Server). VPS – this is a server belonging to a specialized company that provides remote access to it through the Internet. The advantage of such a server is reliable trouble-free operation.
If for some reason you do not want to use a virtual server, at least minimize the risk of using your computer. For this purpose as mentioned select a single computer to the robot, which will not have access anyone except you, provide reliable computer and internet connection source and uninterruptible power supply.
Create a robot can programmer on the basis of your trading system. Although not every trading system will work automatically.
Another option is to buy a ready forex robot. The market offers a great variety of them. Prices vary as well as the quality. Therefore, before buying visit specialized forums to gather maximum information. Next, test the forex robot on a demo account, experiment with the settings. And only when you’re sure that the program is working as it should, you can let it work with real money.
And whether is it necessary to trust your money the robot?
Doubtless advantages of the robot are time saving, lack of emotion and fatigue. You do not have to sit for hours in front of the monitor, waiting for the right signals, the psychological factors do not affect on your trade. On the other hand, the person adapts to market conditions change better than a robot. Having money under personal control is better, and indeed, any automatic system may sooner or later stop working.
Therefore, the best solution would be to use the robot as an additional assistant. And let it trade a small amount of money, periodically monitor its work and turn it off while waiting for important news on the market.

How to start Forex trading

Monday, May 11th, 2015

career process
How to start Forex trader career?

Probably everyone who is interested in Forex, ask questions, how to start trading Forex? what you need to learn?

Answer all of these questions is not easy. Start definitely need a theory (general concepts, the price movement, indicators, trading system, money management, psychology), gradually adding practice. As they say, a theory without practice is dead, but the practice without theory is stupid.

Brett Steenbarger recommends the following sequence  to start Forex trading

1) Learn to understand the market – understand the supply, demand, trends, levels of consolidation, how the market determines the price, time periods, price, volume of transactions formating prices. There are the basics you need to know about the financial markets. Very often, many novice traders in the early stages of learning in detail study specific technical moments instead to first figure out how markets function.

2) Start with the observation – I say this so often that everyone is tired. But it is really very important to protect your capital and psyche during the learning process.
Plunge headlong without proper training to the market, which is full of experienced traders (sharks of trading) – a sure way to lose capital and get unsuccessful impression of the financial markets. When I started my study, I print all the daily charts, which I carefully monitored and studied. Today there are kept piles of these graphs in my office. Daily analysis of these charts helped me to see the movements of the market all the important points, breakouts, confirmed and unconfirmed forecasts. Train your eyes, before you risk your capital. Learn on one or two models and use them. Quality sites dedicated to trading and books are good source of information, start with them. Do not hurry to make trading your main occupation and the only source of income. It’s not as easy as people think. This is a serious job, a huge burden on the psyche, and the majority people simply do not survive.

3) Start with a demo forex account – certainly trade on paper or demo account is not the same as a real trade.
But it’s a good start. After all, chess players practice before championship. Demo account allows you to make mistakes and analyze them before risking real money.

It is also very important that the first training session took place without any commitment to make money anyway. If you cannot make money on demo account, the chance to earn at a real account even less. Trading in the demo is a kind of intermediary between the dry theory and the real practice, so you need to give it enough time. Many trading platforms such as MT4, offer a free demo account. These programs help to acquire the necessary experience and track changes in your trading.

4) Start thinking like a trader – that means to understand what traders focus in the analysis of markets, economic indicators and stock news. Sign up for financial news, read blogs devoted to trading, visit forums where traders communicate. Observe and, if possible, communicate with successful traders, listen to their advice.

Psychology and risk

Monday, May 11th, 2015

risk

One of the most important components of successful Forex trading is the psychological preparation to risk and the ability to make decisions and act under stress.

The meaning of selective thinking is the ability to separate your thoughts and predictions about the situation on market of existing positions. If you look at market through the lens of your open positions, the psyche trying to see what you`d like, not what is really happening.

It often happens that a demo account trader shows excellent results, but as soon as it comes to real money, there is going something strange with the psyche.
Trader stop to think rationally, loses self-control and trading results are much worse. Therefore, the ability to selective thinking determines the level of success.

The next problem of most beginner traders – the inability to establish the permissible amount of losses. Not a problem to close the deal at a profit lower than had planned.
But if the position is losing, even if the loss is not yet significant, then there is the a problem to close the deal and fix the lost. They are waiting and hoping that the situation change and the market will turn to the right direction. But often it does not happen. On the contrary, the situation is further deteriorating, and finally when the trader decides to close unprofitable position, the size of losses simply unacceptable. This can be avoided by closing
loss-making position immediately before the loss is not yet large. Generally, this should be planned before opening the position. Immediately after the opening, set stop loss. But the mind of inexperienced traders does not let them to do it. It persuades them that everything will be fine, it’s just a correction or even false breakouts and situation will normalize very soon. But as a rule it is self-deception.

The ability to be not affected is the ability to make decisions without taking into account the crowd sentiment, analysts, or colleagues. The trader must be able to separate the important information from unnecessary noise and do not be influenced by the environment.

We can say that the lack of discipline and endurance cause 80% of traders bankruptcy. On the other hand the presence of these qualities makes the remaining 20% successful and wealthy. And this is not surprising, but 80% of traders will continue to underestimate the psychological aspect of trading and live the dream of an ideal trade system that will always clearly indicate the direction of the market. But the problem is that such a system can not exist in principle. Each system has its own strengths and weaknesses. But none of them will indicate the direction of the trend always at the right time.

Therefore, the only solution is to use two components of successful trading: trading system and discipline.

 

What Forex is

Thursday, May 7th, 2015

coins

Forex or foreign exchange, also known as the international currency market is exchange (trade) of foreign currency.
Forex is a global network that is connected by the most modern communications. It is a system that connects banks, insurance companies, investment funds, as well as brokerage firms and private investors. Their common feature is the use of mechanisms that allow to increase the capital, due to the movement of the main product of Forex – currency. Forex trader – is a businessman who has decided to make money on the movement of certain currencies,
or exchange between currencies.

History of Forex

If we look at the history of money, we can see that almost every currency in the past was due to a real commodity. The most widely used were metals, especially gold and silver, of which the were made coins that are known, from books and historical films, ” pay by gold”, “pay in silver”.
In Europe, till the end of the nineteenth century, most of coins were made from silver. Gold was used much less only on large payments.
How different currencies were exchanged? There were no exchangers like today’s banks or exchange offices.
The exchange rate between gold and silver, was mostly given to the will of the market, only occasionally it was adjusted by state. If there is certain rate, then inevitably there appear bimetallic system, and Mint was ready to exchange gold or silver for a certain number of coins of certain nominal and specified weight. Such way of exchange existed till the 19th century.

The nineteenth century – a new form of money

In the seventies of the 19th century is all around the world, including the United States, was transition to gold mono metallic standard, it means that law regulates only the price of gold. Gold is thus becoming a major precious metal, which is used to determine the value of individual currencies, and also as reference point for the exchange of currencies. The importance of relation between gold and money, significantly waned after World War I, due to the so-called gold standard, in which the government had obligation to exchange their money to gold or the foreign currency that can be exchanged for gold. At this moment, currency exchange took new form – there was no need to exchange currency for gold directly, it was possible to exchange one currency for another, if that currency was easily changed to gold. This was a major step in the exchange rates, in addition, as we know it today.
Further reduction of the role of gold in exchange rates comes at the end of the World War II, by Bretton Woods Agreement and the establishment of the International Monetary Fund. This agreement requires fix the price of the currency to gold only for U.S.A and only for external payments. In accordance with original Articles of Agreement, the international monetary system was based on a relatively fixed parities of currencies of different countries participants, and the guarantor of the system as a whole, was the U.S. dollar, secured by its gold content. It was a further important step in the mutual exchange of national currencies, as we know it today. The agreement put the end of British pounds domination and started the leadership of dollar. Later, in December of 1945, the Bretton Woods agreement was signed by the governments of 29 countries.

Last relation between gold and the currency was completely broken by President Richard Nixon.
In August 15, 1971 (for Forex really historic day) President Nixon refused the American obligation to sell gold for $35 per ounce. Then every county took “paper” standard as a constant system. It was the start of currency exchange system that exist today.

Start of FOREX

Forex or International Interbank Foreign Exchange (Worldwide Interbank Currency Exchange) was founded in 1971 and began function on the basis of fixed exchange rates of various currencies.
The first market participants (traders of foreign currency) were the central banks, multinational banks and large investment companies. However, in spite of everything, the world is still trust the U.S. dollar. This attitude led to the financial irresponsibility of individual countries, in particular Switzerland and Germany, were crowded huge amounts of U.S. dollars. The first in March 1973, the market was officially closed because of huge amount dollar sale offer, by agreement between the major market participants. Fixed exchange rate system simply collapsed. And a new era of international currency market (Forex) began.

Until recently past, the international foreign exchange market was not available to the masses of investors and traders, and private persons.
Minimum funding requirements (the most liquid standard lot is equal to U.S. $ 100 000) were too high for usual investors. But since then the situation has completely changed. Global political and economic changes have made possible to work on the market almost for everyone. Daily Forex turnover is about $ 1.5 trillion, and on some days it is more than 2.2 trillion dollars.

The path to the currency exchange market, in the form in which we know it today was not easy, it took a long development of currencies and the way they exchange. Today, however, the market of world currencies, is the most liquid market in the world and has more and more attention and popularity.

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