Indian stock markets ended the day on a positive note following the Railway Budget. The stock markets welcomed the initiatives in the Railway Budget including plans to improve infrastructure.
The stock index trimmed all its losses and climbed up into the positive amid volatility. Banking, capital goods and power stocks remained in limelight all-through the day.
Saturday, July 4, 2009
Stock Markets
Forex Update
GBP/USD Sinks after Negative Data Stream
The Cable is reacting negatively to the negative unemployment data points from both the U. S. and EU. Additionally, Britain's construction PMI contracted from its previously release, coming in below analyst expectations.
The positive sentiment the Pound has garnered over the past couple months has been dented by the disappointing GDP and current account data released earlier this week. Additionally, we've recently seen key British data points, such as today's construction PMI number, take a step back from their recovery uptrend.
Forex reserve up $932 mn
Owing to revaluation of currencies, India’s foreign exchange reserves went up by $932 million to $264.58 billion during the week ended June 26, according to the Reserve Bank of India data. Gold and special drawings rights remained unchanged while the reserve position in the International Monetary Fund went up $8 million to $1.25 billion.
Tuesday, June 30, 2009
Choosing a Forex Trading Robot part II
Deciding for an automated Forex trading system, best known as FX Robots, is all about two important things:
1. Costumer trading needs.
2. Robot’s compatibility with desired Broker.
What do I mean by costumer trading needs? when I talk about this I refer to the robot’s capabilities or specifications: Is this robot able to trade with this currency pair?, Am I able to configure “x” parameter to what I need?
When someone decides to go into this market he already has some ideas around which he would like to make his movements. Finding a robot that’s around this ideas also is the best thing to do. For example, a trader wants to start trading with an specific currency pair, EUR/USD, so he will be searching for a robot like Forex Megadroid to do so, why?, because like everything on this planet, when we want to do something in specific, like fixing a car, we look for someone or something that’s specialized on that thing, we don’t call an Engineer to fix a car, we call a Mechanic. Engineers can know about cars, but Mechanics will surely know what’s going on with the car. And that’s exactly what happens with robots.
It’s clear that people can use whichever robot they want to do a trade, but when they encounter with a situation in which they want to trade with an specific parameter, like timeframe or a currency pair (continuing with the example of EUR/USD), they shouldn’t be looking for an all-around robot like FAPTurbo, they should go for a more specific one, in this case, Forex Megadroid. And this apply all the way around if diversifying is what the trader is looking for.
The other key piece of the puzzle is the “Robot’s compatibility with desired Broker”, what is this? people that is into this market know that choosing a broker is one of the most important steps of Forex Trading. What would happen if the broker you chose isn’t compatible with the robot you’re using? It would be terrible. You wouldn’t be able to start an account with the amount of money you wanted, you wouldn’t have access to the leverage you needed and, even more dramatic, you couldn’t trade with the pip spread you expected.
The are to possible options in this situation, the first one is kinda obvious: find another robot. The second one is a little more interesting: knowing that you won’t be able to find a robot that works with the broker of your choice, you can always find a nice robot and put it to work in any broker, and instead of using the robot as your primary trader, you could use the robot as a role model and repeat the actions it took on the broker you like, only if you’re agree with them. In this way you’ll win, you’ll have the assistance of an FX Robot and all the advantages of your chosen broker.
So my recommendation is to have these tips in mind when the time has come to choose a Forex Trading Robot and know that even if you’re planning to use bots as primary income you can never enter to this market blindfolded, knowing what to do, even if it’s not you who’s doing it, is the key to your success.
Reasons why invest in the Forex Market
In recent years, investors of all categories and all countries have dramatically increased their participation in the currency markets. Why? Here’s a summary of the 8, plus an additional, reasons why investors are so attracted to the Forex market:
Reason #1: The world’s most liquid market
The Forex market can absorb such huge transaction volumes that the ability of any other financial market is negligible when compared with this market. In other markets like the stock market, low liquidity of some actions causes investors often have to liquidate their positions at an unwanted price. On the contrary, in the Forex market exists such high liquidity that investors have the possibility to open or close orders any time they want at whichever price they want.
Reason #2: Transparent market
Given the multimillion-dollar negotiation that takes place every day in the currency markets, it is virtually impossible to manipulate the market. This makes Forex a secure market for professional racers.
Reason #3: Continued negotiation market
Something that’s fascinating to participants in the Forex market is its 24 hours nature. There’s no schedule for opening or closing; Investors can operate during a run time of 24/5.
Reason #4: Market without forced deadlines
Participants from other financial markets are constrained by having to adhere to a particular horizon in time. In the Forex market, however, a position can remain open as long as the investor deems necessary.
Reason #5: Market without implementation costs
Historically, the Forex market has not received commissions for services, except for a natural difference between the buying and selling (spread rate).
Reason #6: Market identifiable trends
For various historical periods, currencies have shown substantial and identifiable trends. The fact that each individual currency offers a historical pattern of well-defined trend, facilitates the establishment of strategies for profitable capital.
Reason #7: Market of dual direction
Unlike other financial markets, the Forex market is one of two directions. That is, investors can earn either when the market rises or fall.
Reason #8: Leveraged Market
This allow Forex participants to control much larger amounts of capital with just a little investment. The leverage regularly offered is of 1:100.
Additional Reason: Automated Trading Software (FX Robots)
FX Robots are automated trading systems that facilitate the job for people that uses them. They just need to be configured and they’ll start trading based on market trends analysis, statistics and mathematics. FX Robots are extremely accurate and they can be used as primary income (mostly for newcomers to the Forex market) or as models to follow or to check decisions.
Common mistakes made when investing in the Forex Market
Learn how to make an investment in Forex is not enough to succeed. Just knowing how to invest and which are the most common currencies of investment, as the U.S. Dollar, Euro, etc. are just the basics of investing. Knowing when to invest and what to invest in are two of the most essentials things to success in FX trading. But, why people that knows all these stuff still lose money? Here are some of the most common errors people make when trading in the Forex Market:
Know nothing about the market in which people is investing
Anyone who wants to invest in Forex should know that the market is influenced by external factors such as political movements, speculation, interest rates, economic policies like increasing exports of a significant product, news global influence on the value of a currency, and so on. All these are essential facts of reality that influence the price of a currency. Along with this, it is extremely important to learn about the stories of behavior of the currencies and the factors that influence them.
Many people face the market without knowing anything about its past and behavior, just having in mind the basics of trading getting stalled on just numbers and trends. Believe Forex Market goes beyond that line.
Risking too much on the transactions
The desire of wanting to achieve very high profits in operations leads many of the investors to risk more than they should. Be careful with the capital being negotiated, because greed can lead to run out of anything. Once more diversified operations is most advisable to avoid risking all at once.
Not taking risks at all
Contrary to the previous mistake, not taking risks at all is also a huge mistake made by many investors. Invest carefully is probably the safest choice to make, but this could also lead to nothing. Taking calculated risks is the best way to operate in this market, and by calculated I mean: follow trends, do some math, read about the market in question, and know always where the risk taken can lead if everything goes wrong.
Not taking into account the possibilities
It must be realized that in this market if someone buys, someone else is selling what he just bought. Who sells is because he think prices will go down and who buys is because he is convinced they will rise. Not only the gain that can be obtained at each operation must be taken into account but also the loss.
Lack of knowledge and experience
Most of the time people enter to this market, like I said before, knowing nothing but the basics. This is definitely NOT enough. There’s a lot of research that needs to be done: read articles published by experienced investors, books, etc. It is also a great help to follow an experienced investor’s journey, there are many of them who create blogs about their journey in this market; but most important of all, find someone to advice you and keep in mind that great traders aren’t created from one day to another.
Copying strategies
A big mistake is to copy the strategies of someone with much experience. Why? Yes, it’s true that if they have so much experience they should be incredibly successful, but it is also true that their strategies are unique and probably impossible to completely copy, and trying to do so will lead to nothing since it has to be taken into account each person goals, objectives and the capital in negotiation.
Not having a Forex Trading System (Forex Robot)
Forex Trading Systems have become extremely popular among traders, this robots can be used in two different ways: the first one is to use them as primary income makers, which could also be a mistake if the investor trusts the software too much. And the second way is to have the robot to compare thoughts, create more ideas on how to move in the market, use it as trend and numbers analyzer and also use it to trade when you can’t. This is the best way to use a Forex trading software, people get all the benefits, filtering all the flaws.
Investing in Forex is an art, and like all arts it needs patience, knowledge of the instruments, commitment, study, learn and do business with a right attitude. It is a really tricky market and just knowing how to trade won’t do it. There’s plenty of things to learn and you have to have it in mind, like I said before, great traders aren’t created from one day to another, there’s a lot of hard work, wins and losses in the way. And speaking of wins, here are some tools for you to avoid making the mistakes other people make and start winning:
WhereTo Trade
Today one of the most attractive markets for speculative trades is Foreign Exchange Currency Market - FOREX. It is the largest market in the world with the daily turnover of $1.5 trillion. This is more than the daily turnover of the world’s largest exchanges.
Forex is not located on a single exchange: it is functioning through the electronic net, connecting large banks, numerous financial funds, international corporations, and brokerage houses.
All the day round Forex handles the exchange of different world currencies.
In the past Forex market used to be available only for those who were able of spending hundreds of thousands US dollars.
But the swift development of Internet technologies gave a chance for individual investors with small capital to trade on Forex directly from their own computers.
A trader with small capital can easily get the necessary informational feed on the same level with all the largest participants of this market.
As the daylight wakes the cities of Tokyo, Hong Kong, Singapore, Bombay, Frankfurt, Zurich, London, New York, the financial centers of New Zealand and Australia; they all start the great global rush for the profits on Forex.
forex trading system
24 hours a day.
forex trading
5 days a week.
forex
Daily turnover of $1,5 trillion.
forex market
Superliquidity.
forex trading strategy
The usage of leverage trading.
forex broker
Make profits on «bullish» and «bearish» markets.
All This Is Forex!
No other market in the world gives you such a great variety of possibilities as Forex.
The answer to “Where to trade?” is evident.
We recommend Forex for reaching the highest level of success in speculative trades.
Forex Market - The Best Place To Make Big Money From Trading.
Use navigation links in the left column of this web site to access all sections of Web Trading System.
Best Times To Trade Currencies
Forex is a 24 hour market and there will be good setups for profitable trades in the Asian, European and US sessions. It pays to look at historical price data on forex charts to see what time of the day you could be watching the market and what time you could be doing something else. The aim is to trade when the average trading range is worthwhile and stay out of the market when price is in a narrow sideways range.
There are good online and downloadable tools at forex market hours
The market opens on Monday morning in Wellington New Zealand .8 am Wellington time is 8pm GMT,9pm BST,4pm EDT (Sunday evening New York time)
MARKET OPEN TIMES
(Summer Northern Hemisphere)
GMT Sydney Tokyo Frankfurt London New York
2200 1800
2300 1900
0000 2000
0100 2100
0200 2200
0300 2300
0400 0000
0500 0100
0600 0200
0700 0300
0800 0400
0900 0500
1000 0600
1100 0700
1200 0800
1300 0900
1400 1000
1500 1100
1600 1200
1700 1300
1800 1400
1900 1500
2000 1600
2100 1700
The market closes for the week at 4pm EDT on Friday.
where BST is British Summer time ,EDT is Eastern Daylight Time USA.Check your local time at http://forex.timezoneconverter.com
The most active pairs during the London session are EURUSD with 39% of the trading volume, GBPUSD with 23%, USDJPY with 17%, USDCHF with 6% and USDCAD with 5%.
New York is the second largest forex market place. The busiest time is 8am to noon EST. News releases can result in a volatile market.
Sometimes volatility is low in the Tokyo session and sometimes good moves occur. The USDJPY is the most active pair with 78% of the volume followed by EURUSD with 15% and EURJPY with 5%.
Destiny features: New! DestinyNN 3.32
Destiny features: New! DestinyNN 3.32
Trades on 5 currency pairs available on Metatrader 4
100% free
Factors in Economic News which moves the market
Fully automated trade execution
Detailed data analysis
Reliable and accurate strategy execution
Full control over strategy execution
Uses a self-adapting neural network that analyzes the market
Adjustable risk level for individual tolerance for risk
Ability to "chase the price" keeping you in trades longer
Destiny is constantly updated in real time so you have the latest trading software
Make money with no prior training
Tremendous growth potential unlike any other trading method
Automatically compounds your profits as account grows
Designed to run unattended. Just turn it on and let it trade.
No charts or graphs to read
Use on any time frame
Extremely simple to setup. Start trading in minutes.
Sunday, June 7, 2009
Practice Forex Trading
The selling was sparked in Asian trade overnight after reports yesterday that the Korean central bank plans to diversify its reserves away from the US dollar. A spokesman for the Bank of Korea was quoted as saying in a report to parliament that as foreign exchange reserves increase, the central bank "will expand its investment into non-government papers, which carry relatively high yields, and diversify the currencies in which it invests"
How to trust your forex setup?
For a successful start at forex, you have to trust and feel confident about yourself because you alone will be the cause of your success or failure in this business. No one has to go to college to know the ins and outs of trading. Everything needs practice including forex.
However, getting in this business with a lot of money and very little knowledge will lead you to a downfall, even if you try to recover in a few months after your first failure. On wrong move could be following a demo account. This type of “practice tool” can’t really be reliable especially for big players who use millions in trading.
The only reason for this is that you can only learn about the basics of forex trading. Unless you get a “hands-on” about forex and get on the “real” thing, then that is where you’ll learn more about trading.
On the other hand, the best benefit that you can get for forex demo accounts is that you can try them with small amount of real money and less fee to pay for education. You just have to have a lot of patience to take time to learn from setting your trade up and the more you repeat the process, the more you’ll learn from the trading business.
When going to real money account, be disciplined and follow rules you build when trading in demo account… Remember - greed and fear are natural, therefore think over every and any decision you did not plan before going into position.
http://forex-trading-on.net/2008/11/11/how-to-trust-your-forex-setup/
How does the interest rate trend affect the Forex market?
Last week the Forex market is affected by both U.S bonds auction and interest rate. Because the auction market is not vulgar, in addition with the decrease of the U.S bond rate, it will reduce the possibility of the increase of interest rate and loan, it will increase the value of the U.S dollar against other currencies. The Forex market will be affected by the retails sale, the manufacturing industry and the laborer data. According to the result announced by the Federal Reserve Department, the interest rate is to maintain unchanged which is expected by the market. Due to the close relationship of the interest rate and the Forex market, according to the INTEREST RATE PARITY (IRP), once the country increases the interest rate, its currency value will be increased. The reason is such, if the U.S deposit interest rate rises but the Japanese interest rate is invariable (but interest rate rise certainly does not affect stock market or any investment project repayment), the Forex traders know that the saving interest in U.S is much higher than the Japan saving interest, then the fund will be able to transfer from Japan pours into US, US dollar demand will increase but Japanese Yen demand will fall, therefore, US dollar will increase in value but the Japanese Yen will be relatively soft.
The increase of interest rate will often increase the currency value but the IRP limit is such, its assumes that investor will only focused on the bank deposit and the interest rate fluctuation will not affect other investment project repayments. Let's give an example, suppose that US FED increased its interest rate suddenly, according to will uncover the interest rate inevitably to follow the rise, this will increase the cost of investment for the investors to invest in the real estate, the investment demand will drop, the demand for U.S dollar and the Forex market will drop. Deduces, the enterprise financing interest rate rise, the company cost increases, the repayment drops, invests fund of and the exchange rate the U.S dollar will fall.
The Seven Most Traded Currencies in FOREX
Currencies are traded in dollar amounts called “lots”. One lot is equal to $1,000, which controls $100,000 in currency. This is what is known as the "margin". You can control $100,000 worth of currency for only 1,000 dollars. This is what is called “High Leverage”.
Here are some of the common symbols used in the Forex:
USD - The US Dollar EUR - The currency of the European Union "EURO" GBP - The British Pound JPN - The Japanese Yen CHF - The Swiss Franc AUD - The Australian Dollar CAD - The Canadian Dollar
Some of the common PAIRS are:
EUR/USD Euro / US Dollar "Euro"
USD/JPY US Dollar / Japanese Yen "Dollar Yen"
GBP/USD British Pound / US Dollar "Cable"
USD/CAD US Dollar / Canadian Dollar "Dollar Canada"
AUD/USD Australian Dollar/US Dollar "Aussie Dollar"
USD/CHF US Dollar / Swiss Franc "Swissy"
EUR/JPY Euro / Japanese Yen "Euro Yen"
Using the Bullish-Bearish Indicator to Spot a Potential Market Bottom or Top
There are several Psychological Market Indicators investors can use to help them determine when a Market Bottom or Top is nearing. One of the more important ones is the Bullish-Bearish Indicator which shows the % of Bullish and Bearish Investment Advisors. This data is available from Investors Intelligence and is also published by Investors Business Daily as well.
Generally when there is a large difference ( >30%) between the % of Bullish and Bearish Investment Advisors there is an excessive amount of Bullishness in the market which usually is indicative of a nearing top. The chart below compares the S&P 500 versus the % difference between the Bullish and Bearish Investment Advisors since 1998. As you can see when the % difference between the Bullish and Bearish Investment Advisors is >30% the S&P 500 has generally made a top and then reversed strongly to the downside. Some examples include last Summer (point A), the early part of 2001 (point B), the Spring of 2000 (point C), the early part of 2000 (point D), the Summer of 1999 (point E) and even further back in the Summer of 1998 (point F). Recently the % difference between the % of Bullish and Bearish Advisors reached near 30% again in January (point G) which was a warning sign that the S&P 500 was likely nearing a top after rallying strongly for three months.
http://www.forex-articles.net/article-74.html
Forex Signal Trading Gives the Traders One More Analytical Tool
Forex signal trading has emerged as an important support service for forex traders. This service is run either by forex brokers or by independent analysts who monitor and analyze the forex market. These analysts identify forex trends using several indicators. Based on this analysis, they suggest profitable entry and exit points to forex traders for a fee.
Most analysts offer signals for only the most popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF. However, there are some specialty services also that offer signals for the lesser-traded pairs.
The charges for these services vary from analyst to analyst, and depend upon the range of services bought by the trader. For instance, a basic subscription service offers email alerts of entry/exit opportunities to traders while a more comprehensive service provides this information through SMS, cell phone or pager alerts also.
Some signal trading services also provide live charts for the traders to make their judgment. Irrespective of the level of service, a trader should be prepared to pay a minimum subscription fee of $100 a month.
http://www.forex-articles.net/article-79.html
Trading System Scams
If you have a look for trading systems on the Internet, there are plenty of them for sale - all promising to make you millions.
When something seems too good to be true, it usually is. Many of the trading systems for sale are unprofitable. As well as wasting your money, you could lose your trading capital.
Check these points when looking at a trading system to avoid becoming another victim:
Accuracy
Most trading millionaires use systems that are 50-60% accurate. It is virtually impossible in the real world to get 90% accuracy, but that is what some system vendors claim. As soon as you see that, you know that the figure is not realistic, and may be based on a very limited set of test trades.
Real life performance
It is possible to tweak a trading system to get fabulous results on the right set of test data. You simply adjust it to maximise profit. However it is one thing to do that, and another for it to work in real life. Always check to see whether test results are hypothetical, or whether they have been achieved in actual trading.
A good system should have average losses smaller than average profits.
Disclosure of approach
An undisclosed approach is called a "black box" system. You need a lot of faith to use a system that doesn't state how it works. It is preferable to go for a system that provides some information on the approach used
Longevity
A system that has been around for a while, and has been reviewed and checked out by a number of people (who are not selling it) is preferable to the new kid on the block. Many trading systems spring up, and then quietly disappear once word gets around that they don't work.
Exotic or secret technologies
Innovation is a good thing, but beware of a system vendor who states that their system has some new secret trading approach or includes secret, proprietary approaches used by a hedge fund or investment bank, not previously available.
Iif the system cost millions of dollars for a hedge fund to develop and was truly profitable, would it be for sale for $79.95?
Amount of capital
If the trading system needs $50,000 and you have $1,000, then it is a non starter for you.
Drawdowns
Drawdowns are the maximum negative movement of a trading account. If the system has drawdowns of (say) 30%, you are in for a wild ride, and will need a lot of risk capital. You should be comfortable with the risk factor of the system in real life trading, and this includes the drawdowns.
Practicality
Does the system make hundreds of trades a week, and rely on split second timing? If so, it may not be practical to trade, unless you have some sort of automation to handle the trades. It may not be possible to execute your trades on time if the system relies on very short term movements.
Take care when selecting a trading system - there are a lot of scams out there.
MANAGED FOREX ACCOUNTS
Discover the returns possible in the world's largest financial market,ithe off-exchange foreign currency market (Forex). Forex is where banks, corporations, and whole countries make investments. It is just over the past few years that private investors, such as yourself, have been getting more involved with these opportunities. A managed Forex account gives an investor who cannot watch the market 24 hours a day the chance to participate in the world's largest market - Forex. These accounts are an ideal consideration for those who prefer to have their capital managed by professionals. Studies of professionally managed Forex accounts have often shown high returns not related to the performance of the stock market. Consequently, allocating a portion of an investment portfolio to a Forex managed account can be a great way to enhance the overall performance of your portfolio, independently of what the stock markets are doing.
NAWKY
Do you see the potential to profit from trading currencies, but learning to trade just seems too intimidating? Have you watched enthusiastically to the recent crash of the dollar, but simply do not know how to go about trading?
Personal Finance
If you are constantly surfing the net for the right Forex strategy and do not know which training course to attend to get the best hands-down knowledge abut this business, you are reading the right article for finding the right answers. The first step to get started with Forex trading is to decide on the amount of investing money and then decide on the most cost-effective training program to help you get
LONG TERM TRADE
Last nite jump was expected but GBPUSD never made it big. Only EURUSD and AUDUSD manage to jump big enough. EURUSD was screaming long from early morning yesterday while AUDUSD make the last minute move.
From a long term perspective. AUDUSD is in a good position for a short position. This is a long term strategy and may require you to have high tolerence toward -ve pips.
So the signal is to short AUDUSD and AUDJPY at the best position as humanly possible. This trade may run up to weeks if not months. So prepare your account for long term holding of post.
CURRENCY TRADING BASİCS: 10 Mistakes You Must Avoid to Win at Fore
Here we are going to give you some currency basics and this involves 10 essential tips you must do and 10 tips on common mistakes which you must avoid to enjoy long term currency trading success.
Let's start with 10 common errors you just avoid.
1. Don't Day Trade
It doesn't work because short term volatility is random and prices can and do vary anywhere in a day and you have the odds firmly against you and will lose longer term.
Ever seen a day trader with a long term track record of success? No neither have I, so avoid it and trade longer term trends where you can get the odds on your side.
2. Don't Try and Predict
Predicting is simply hoping and guessing and won't get you far - trade the reality of price change. No one knows the future and your predictions will end up as accurate as your horoscope!
3. Don't use Science
Don't believe anyone who tells you markets move to a scientific formula they don't - if they did we would all know the price in advance and there would be no market.
Trading is a game of odds - not certainties, but you can win if you know and trade the odds. You won't win every trade but over the longer term you can pile up huge FX profits.
4. Don't Trade Scared Money
If you can't afford to lose stay away, forex markets are extremely risky and if you are worried about losing your discipline will break down and you will lose
5. Don't follow a guru blindly
To follow a forex trading system you must have confidence in it and know how it works or you won't be able to follow it with discipline - if you can't follow it with discipline you have no system at all.
6. Don't believe experts
News stories are convincing - but that's all they are stories from journalists and they are normally dead wrong about every major market turning point. Don't believe everything you read!
7. Don't buy low and sell high
Great theory - doesn't work, it means you must predict again where highs or lows will form.
The fact is most major market moves start from new market highs NOT market lows. Learn to buy these breaks as the odds are in your favor and you normally see huge trends develop if, the breakout is from a valid resistance level.
8. Don't complicate your trading system
Simple systems work best, as they are more robust in the face of brutal market conditions - over-complicate your forex trading system and it will have too many inputs - which will break.
9. Acquire Knowledge for the sake of it
You will often hear people say "the more knowledge you have, the better" - but in forex trading you need just the right knowledge.
You don't get paid for work rate you get paid for being right and that's it.
10. Don't overtrade
Most novice traders simply over trade and lose.
They think the more often they trade with their forex trading system, the more chance they have of winning or if they are in the market they are bound to catch a major move - dead wrong.
You don't get a reward for trading often, so don't - only trade high odds set ups, be patient and wait for them.
If you want to learn forex trading correctly and get the right forex education, to enjoy forex success these are all errors to avoid. When developing your forex trading strategy keep the above points firmly in mind, these are the basic errors of currency trading and must be avoided if you want to get on the road to regular profits.
Margin FX
If you are interested in foreign exchange margin trading, we suggest contacting CMC Markets for FX Contracts for Difference (CFDs).
FX CFD trading is the simultaneous buying of one currency and selling of another. FX CFDs are traded on margin, which means that you only allocate a small proportion of the value of the position but gain full exposure to the market - increasing your profit (and loss) potential.
CMC Markets offer tight dealing spreads over Spot and Forward FX CFDs.
Visit CMC Markets to find out more about their services or to open an account.
Open a CMC Markets account
OzForex does not provide any form of margin trading facilities and cannot offer any advice or information in relation to foreign exchange margin trading.
Disclosure of Referral Commission Payments: OzForex has a referral agreement with CMC pursuant to which OzForex is paid a referral fee by CMC in relation to clients referred by OzForex. The amount of the referral commission will depend on the type of contract entered into. In the case of a foreign exchange CFD, for example, if a client entered into an AUD/GBP spot transaction for AUD$100,000 OzForex would be paid a commission of GBP1.25. (ie: 100,000 * 0.25 pips = GBP 1.25).
Forex Resources
This list of Forex resources contains URLs to other useful Forex sites - Forexforums, general Forex information resources, Forex signals providers and our partners. If you find a broken link, or wish to exchange links with us - please, contact me via the link exchange form.
Forex market news
FXstreet — Many useful articles, constantly added expert commentaries and forecasts
DailyFX — Everything happening in Forex world is covered here
ForexCenter.net — The complete Forex portal offering live forex rates, forex charts, forex news, forex trading forecasts, technical analysis, currency converter, forex books & educational material
Forex charts and technical analysis
Incredible Charts — A very good resource to learn everything about charts
Inspectd.com — practice your technical analysis skills.
Metatrader Expert Advisors and Metatrader Indicators, MQL4 Coding Service
BollingerBandsForex — Features charts with Bollinger Bands and a wide array of indicators. Lists of trades of currency pairs based on Bollinger Band trading systems.
Forex brokers
MasterForex — offers a wide variety of trade instruments (Forex, CFD, Futures), an easy and user-friendly trading platform (MT4), terminal for PDAs and Smartphones. 24/5 customer support is always online. Minimum deposit is 1$. We also have Islamic accounts. Spreads begin from 2 pips. Leverage can be up to 1:500. We have the best conditions for partners!
Forex signals and market forecasts
Profit Guide Forex — reliable Precise Trading System with free software that can generate your own signal.
Open Forex — Foreign Exchange Trading, Forex Analysis and Forecasts
Forex Training - Work at Home Business Opportunity — Offers forex training - internet home based business opportunity. Work from home job.
AceTrader - FX signal provider — Provides 24-hrs Intraday and Daily FX trading commentaries & signals. Services started on Reuters since 1989, on Internet since 2000.
Forex forums and community sites
ForexFactory — a popular Forex discussion forum
MoneyTec — Forex related Forum dedicated to technical analysis.
Forex trading information
TradeJuice — The largest selection of FREE day trading articles in the world
Investopedia.com — a large educational Internet resource about investing and trading.
Forex Glossary — Terms and terminology used in Forex Trading. Index of financial and investment terms.
Forex trading — Forex technical and fundamental analysis, forex charts and brokers.
Forex Training with Peter Bain's Forex Currency Day Trading Course — Forex training course and forex services by professional forex traders.
Online Trading Class — Once a Month Trading provides an online trading class which focuses on teaching you important investment principles, on giving you access to market professionals, and on providing a system that will outperform the market.
Online Forex Trading — We talk about currency exchange using online platform, forex softwares and trading systems.
Forex system and MT4 indicator — Free download forex system and MT4 indicators.
Forex directories
Forex Directory — Whole Forex in one place
Forex Web Directory — link to forex related sites and more business information.
Business Web Directory — a large resource of all kind of financial information.
Forex Supersite Directory — a directory of forex and currency trading sites online.
Most Visited Forex Websites — Ranking the most visited forex websites based on alexa and compete statistics. Includes website reviews and historical ranking information.
Moneybookers
Moneybookers is a British electronic payment, storage and money transfer system that is operated by Moneybookers Ltd., which is owned by Investcorp Technology Partners. Moneybookers was founded in 2001 and by its functionality is a competitor of other popular payment system PayPal. Like PayPal, Moneybookers doesn't offer any electronic currency, but the account balance can be uploaded and is measured in the common currency units.
Moneybookers requires mandatory account owner verification, which can be done via confirming the credit card, the bank account or the physical address. All three methods can be used together to increase the transfer limits that are active for all customers.
Moneybookers charges fees for sending the funds, which is usually quite convenient for the sellers and providers of the various paid on-line services.
Moneybookers is less popular in the world than PayPal or WebMoney, but is a convenient electronic payment system to use with the Forex brokers. It's a secure payment system that isn't anonymous and complies with the British anti-fraud laws. Unlike PayPal, Moneybookers is fully available to the residents of almost all countries in the world, making it potentially more widespread system.
Here is the short list of the Forex brokers that accept Moneybookers:
* LiteForex
* AvaFX
* InstaForex
To open account with Moneybookers, please go tohttp://www.moneybookers.com.
Forex Trading Indicators and the Ever Changing Market Conditions
Once you enter the Forex trading world you will immediately notice the need of using technical analysis in order to find trends when looking at the forex charts and also the importance of being aware of when they first develop so you can ride the trend until it ends. The foreign exchange market is a very strong trending market, lots of ups and downs in short periods of time, and it's, therefore, a place where technical analysis can be very effective.
But you should always remember that the indicators are only giving you a high probability behavior the markets may show when you are trading, but will never tell you the behavior of the currency prices with total certainty.
If you want to become a profitable forex trader you will need to use as many technical indicators as you can, or create a personalized trading strategy based on a combination of these indicators, to recognize with the best accuracy possible the trend. In other words, a professional forex trader will try to identify the major trend, the intermediate trend, and the short-term trend and then construct his trades in that direction based on how long their rules allow him to hold a position.
The forex markets are always changing, that's why you should always have an open criterion when using your technical indicators. Markets will be changing and different combinations of indicators may be required with time in order to have the most accurate, highest probability, prediction of future currency price behaviors.
If the action of the market shows your judgment to be correct, then you must consider staying with the market' and look for the maximum profit on each trade, according to your risk-to-reward/equity management rules. If you happen to be in a bad day and the market goes against you, the smart trader will take profits and get out of that trade. In a narrow market, when prices are not going anywhere, but move within a narrow range, there is no sense in trying to anticipate when the next big movement is going to be.
So, you must always be alert and open to use as many and as different indicators in order to stay tuned with the market and become a profitable trader at the end of the day.
Forex Trading For Beginners - 10 Essential Tips For Forex Trading Success
If you are new to Forex trading you understand need to understand that 95% of trades lose. If you want to win you can but you need to follow these essential trading tips. Here are your ten tips and there in no particular order of importance, there all important!1. Don't Use a cheap Forex Robot or Expert Advisor If you think you are going to get rich by paying out two hundred dollars or less for a cheap software package think again you won't, all these systems lose money. If Forex trading were as simple as paying a few hundred dollars for a lifelong income, 95% of traders wouldn't lose money. 2. Accept Responsibility Leading on from the above point, it should be pretty obvious that you need to accept responsibility for your actions, learn skills and get a decent Forex education. 3. Work Smart Not Hard You don't need to Work hard just get the right Forex information and that should only take you a couple of weeks at most and your all set. 4. Keep Your Strategy Simple Simple trading strategies work best as they are more robust than complex ones, with fewer elements to break, so keep your system simple. 5. Use Technical analysis This is simply the most time efficient way to trade and all you need to do is learn the right chart formations, to spot profitable chart set ups and that's a learned skill. 6. Be PatientDon't trade to often, once or twice a month is enough to make big gains and is the best way to trade, as you will be focusing on the high odds trades which offer the biggest profits.7. Use tight Money Management You are going to get losses, so make sure you keep them small and always place a stop before you start to trade, so you are not tempted to run losses and hope they turn around - most times they don't!8. Use Sensible Leverage You can get 200: 1 leverage with any Forex broker online but this is far too much and you will eventually destroy your account. 10- 20:1 is plenty for most traders. 9. Learn Discipline You will here this word a lot and it's the key to Forex trading success. You must follow your system with discipline and keep your losses small. If you can't follow your system with discipline you don't have one!10. Be RealisticDon't be afraid to make mistakes or take losses, all traders do and you will too. Forget perfection and focus on making money; if you can make 50 - 100% in your first year of trading you are up there with the best and can be very proud of yourself. These are 10 very simple tips for novice Forex traders and if you follow them you could be on the road to Forex trading success and a great second or even life changing income.
The Forex Currency Pairs
Foreign Exchange trading is in general the trading of many currencies of the world. It is emerging as the largest and least regulated market providing the greatest liquidity to investors.
This trading is always done in pairs – Currency Pairs, one currency is bought and the other is sold. Together, they make up what is known as the "exchange rate".
For example, you may buy Euros with Dollars, anticipating that the Euro to increase in value relative to the Dollar. If the Euro rises relative to the Dollar, you sell the position and can earn a profit.
Most commonly traded currencies or the “majors” are:
US Dollar (USD)
Japanese Yen (JPY)
Euro (EUR)
British Pound (GBP)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)
Most commonly traded currency pairs are:
US Dollar and the Japanese Yen (USD/JPY)
Euro and US Dollar (EUR/USD)
US Dollar and Swiss franc (USD/CHF)
British Pound and US Dollar (GBP/USD)
While quoting currency pairs, the first currency is referred to as the base currency and the second as the counter or quote currency. The base currency is always equal to 1 monetary unit of exchange, for example, 1 Dollar, 1 Pound, 1 Euro.
Why Odds and Edge?
Anyone that has ever been to Las Vegas can see the money that the casinos spend to lure the gambler into their casino. The casinos make their money, an enormous amount of money, by maintaining their edge. In the collection of all games that a casino runs, they still maintain around 4.5% edge. That means that out of every dollar that is brought in to the casino, 4.5 cents stay there. Some people hit the jack pots, some people lose everything they have, but the casino, on average, makes 4.5%. For the casinos, it is not gambling, it is a game of odds, probabilities and they know their edge. The more gamblers come in, the more money they bring with them, the more the casino makes, as long as they maintain their edge.
In trading, the trader runs their own casino. If a trader wins 80% of the time, makes $200.00 every time he wins and loses $100.00 every time he loses, on average the trader makes $140.00 per trade. As long as the trader maintains his ratios, his edge, he will make, on average, $140.00 every time he executes a trade.
This is a very important statistic for a trader. Being aware of these numbers allows traders to weather draw downs, stick to their system, eliminating hesitation and managing their trading correctly.
Odds and Edge Probabilities in Day Trading
The whole concept of odds and probabilities is a subject that most beginner traders avoid, but is absolutely one of every professional trader’s secrets for success. Trading the financial markets is all about managing risk, nothing is 100% accurate or works 100% of the time. There is always a certain chance, certain odds, certain probability that a trade will work or wont work. Even if a trading system generates 99% chance of success, there is still that 1% chance of failure. Nothing in trading is black or white, everything is somewhere in the gray. It is the job of the trader to determine how gray the trade is, what are odds of success. The trader can then adjust their trading based on the probability of the specific trade and the probability of the trading system that he uses. By figuring out exact odds of success, the trader can figure out his edge and maintain it.
Advantages of the Forex Market
What are the advantages of the Forex Market over other types of investments?
When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.
The Forex market is also very liquid. When trading Forex you have full control of your capital.
Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control
Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.
The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.
Learn Currency Trade — Intro to The FOREX Market
The Foreign Exchange Market — better known as Forex — is a world wide market for buying and selling currencies.
It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily exchanges are worth approximately $1.5 trillion (US dollars). In comparison, the United States Treasury Bond market averages $300 billion a day and American stock markets exchange about $100 billion a day.
The Foreign Exchange Market was established in 1971 with the abolishment of fixed currency exchanges. Currencies became valued at 'floating' rates determined by supply and demand. The Forex grew steadily throughout the 1970's, but with the technological advances of the 80's Forex grew from trading levels of $70 billion a day to the current level of $1.5 trillion.
FOREX 101
The Foreign Exchange Market, or Forex market is a worldwide market where buying and selling of currencies takes place. These transactions take place 5 days a week, 24 hours a day and daily are worth approximately 1.5 trillion dollars (US). The Forex market opened in 1971 when the fixed currency exchanges market was closed. Thanks to the technology now available this market has grown from trading 70 billion dollars (US) a day to the current level.
There are approximately 5,000 institutions in Forex. Some are banks, some commercial companies and some foreign currency brokers. The largest Forex trading centers are located in New York, London, Tokyo, Hong Kong, Paris, Frankfurt, Singapore and Paris.
As mentioned above, technology has produced a boom in the Forex market. With the advent of online investing even small investors can take advantage of the Forex market. Over the years many regulations have changed allowing smaller transactions to take place. There are no longer minimum transaction sizes.
Forex Trading Psychology
While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex traders, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being a professional Forex trader:
Your greed
Overtrading
Lack of discipline
Lack of confidence
Blind following others' forecasts
Forex Trading Information
FOREX — the foreign exchange (currency or forex, or FX) market is the and the most liquid financial market with the daily volume of more than $3.2 trillion. Trading on this market involves buying and selling world currencies taking the profit from the exchange rates difference. Forex trading can yield high profits, but it is also very risky. Everyone can participate in Forex trading via the Forex brokers.
Don’t forget to check and bookmark my Forex blog to get the latest updates about Forex market and this site’s content. You can also join a friendly Forex traders community at the Forex Forum.
usa forex curransy rates
FXCM's (www.fxcm.com) No Dealing Desk trading platform recently added an additional bank
as a price provider, bringing the total to seven global banks that compete to provide pricing
for FXCM's Trading Station. Over the last three months, typical spreads have already tightened.
Watch closely for lower spreads in the following currency pairs:
Currency Pair Typical Spread As Low As
EUR/USD 2.3 0.9
USD/JPY 2.9 0.5
GBP/USD 3.7 0.8
USD/CHF 3.8 1
EUR/CHF 2 0.1
AUD/USD 3.7 1
USD/CAD 4.8 1
NZD/USD 4 0.8
EUR/GBP 2.4 0.6
EUR/JPY 3.9 0.6
GBP/JPY 5.3 3
CHF/JPY 3.5 1
When Will the Gold Bubble Burst?
The gold seems to be becoming the favorite investment around as the traders are afraid of the crisis and the fiat currencies seem to be in a great danger when all those anti-crisis measures will induct a massive wave of inflation, reducing the money’s buying power. In such an environment gold looks like a good investment to save one’s assets and to multiply them if you trade with a considerable leverage. Forex traders may also decide to capitalize the expected upward gold trend as many Forex brokers provide the gold vs. dollar or gold vs. euro pairs.
http://www.earnforex.com/blog/
Submit Your Articles Where Tens of Thousands of Content-Hungry Ezine Publishers Feed!
Having your articles in EzineArticles.com allows them to pre-sell your ideal target prospects without you having to make any cold calls or face-to-face sales appointments to sell your products or services. It's not so much about making sales directly as it is qualified lead generation. We get the pre-qualified visitor to your website and then it's up to you to convert or monetize those visitors.
http://ezinearticles.com/benefits/
Track Record
There is no "holy grail" in trading, not in any market; in other words, there is no such thing as a trading system or strategy that wins 100% of the time. However, before you start trading someone else's system, you do want to have some idea of how successful they have been in the past. As all those investment fund ads say, past performance is no guarantee of future success, but at the same time if someone is trying to sell you signals and they have been losing money every month since they set up in business, you will probably want to avoid them! All services will have some sort of track record published on their website, and the more detailed the better. You at least want to be able to see a breakdown of profit by currency pair, as their total figures are likely to include more pairs than you are going to be trading in one go.
http://www.forexheaven.com/forex-advisory-services.html
Using The Forex Charts
If you want to change the symbol being charted, or any of the other chart options, click once on the chart to open the Parameters window. From this windows, you may select the symbol you want to view, the timeframe, chart type (Candle, Bar, Line, or Point and Figure), as well as add a study of your choice.You can also detach and resize the chart - move your mouse over it and then click the Detach button in the top right hand corner when it appears - the chart will open in a new window of its own which you can move and size as you require.
http://www.forexheaven.com/free-charts.html
Using the Forex Order Types for Your Benefit
There is a lot of money to be made trading currencies using Forex trading, and many people consider this option as an easy way to get rich, or to supplement income. When you start this career you link up with a broker who buys and sells currency pairs in your name. If you are going to be doing this over the internet that broker will provide you with free software that enables you to make orders to buy and sell, which he will receive almost instantaneously.
When the orders to buy or sell are received the broker goes ahead and makes that purchase, or that sale, on your behalf. It is a good idea for you to learn all about the software and how it works so that you can make the most out of it, and hopefully use it to make some money.
http://www.heroworld.com.cn/factory-forex.htm
ForexGen trading strategies
While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities provides you with real-world strategies and a rare sense of clarity about the specific mechanics of currency trading. Leading trading educator Ed Ponsi will explain the driving forces in the currency markets and will provide strategies to enter, exit, and manage successful trades. Dozens of chart examples and explanations will guide you each step of the way and allow the reader to "look over the shoulder" of a professional trader hard at work at his craft. This book provides traders with step-by-step methodologies that are based on real market tendencies.
Thursday, May 28, 2009
ForexGen trading strategies
While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities provides you with real-world strategies and a rare sense of clarity about the specific mechanics of currency trading. Leading trading educator Ed Ponsi will explain the driving forces in the currency markets and will provide strategies to enter, exit, and manage successful trades. Dozens of chart examples and explanations will guide you each step of the way and allow the reader to "look over the shoulder" of a professional trader hard at work at his craft. This book provides traders with step-by-step methodologies that are based on real market tendencies.
Friday, May 15, 2009
New Forex Trader
However, what the sad statistics bear out is that over half of all new Forex traders lose their money within a year. The foreign exchange market is seeing a lot of hype right now, and too many people are signing on in the hopes of making a quick buck. Forex is simply not that easy, though, and it is certainly not a get rich quick scheme for the average person.
How to Learn Forex
The technical trader is concerned with studying patterns of price movement on the chart in order to predict the direction of current and future trends in the Forex market. The decision to buy, sell, or hedge a current position – or to stay out of the market entirely – is made upon this analysis. Identify recurring patterns and make educated assessments to guide your decisions; should you initiate a trade at the current price, or set your system to open a position at a future price? The goal of the technical analyst is simple: to make profitable Forex trades by identifying past patterns that have historically led to a predictable outcome. However, the potential risk should always be considered. A recurring pattern is not precise and does not guarantee a desirable or expected price movement. Using various chart types and technical indicators, more accurate predictions can be made from better analysis of the Forex market. Technical indicators can be utilized to help you track specific, identified patterns. Once a pattern is recognized (not all are apparent), the Forex trader can decide whether to place a trade, or wait and monitor the price to see if the predictions were accurate. Additional drawing tools can be used to identify common trend qualities.
Forex Maestro SPECIAL DISCOUNT TODAY!
Here's the deal:ONLY during this official launch, I'm going to offer you a chance at AUTOMATIC wealth and a lifetime of happiness for a tiny fraction of its value... The Forex Maestro robot will be YOURS for the amazingly low ONE-TIME investment of only $397! (Or even LESS if you order TODAY on this visit: see details below)
What things do you need to start doing trading forex ?
A Personal Computer (and PDA, optional and preferable)
Stable and high speed internet connection
Limited equity (for example $1000)
Reliable, reputable and trusted online forex broker
You dont need an office, otherwise you can start your business from home or anywhere else. Even when you are travelling, you still can make money. As simple as that !
Employ a sound money management strategy
In our opinion, money management is the single most important aspect of any trading system and is badly neglected by forex beginners. It enables the trader to fully utilise their capital to grow their money as fast as possible while protecting them from excessive losses and final account blow out.
Reactions:
Speeches and policy decisions
When Alan Greenspan, the Chief Banker of the United States, is expected to talk the currencies normally range within a tight range until his speech commences during which time they can move quite substantially, depending on the topic and content of his speech. Other speakers in the USA who can move the market include: Ben Bernake, John Snow and Janet Yellen.
Policy decisions such as those made at G11 meetings tend to initiate a trend in the currency market which may last a few days or weeks.
Forex Currency Trading Strategies and Systems
In this article we look at the different types of currency trading strategies and systems the forex trader can choose from before commencing their FX trading journey.
The Best Currency Trading System
There are many many different currency trading systems out there for sale, some even claim to be the best currency trading strategy ever! Unfortunately, these systems sold online rarely (if ever) live up to this bold claim. And the reality is, if these forex strategies were really any good, it is unlikely they would be for sale. The owner of the system would be using it to make money currency trading, instead of spending his time and possibly money marketing the strategy.
Don't put your faith in the expert's recommendations and comments
There are literally hundreds of forex companies providing trading signals, daily commentary and trading recommendations. While it may be useful to read some of these to get an outside opinion, it can just be information overload for newcomers to the forex market, creating indecision and stress! Believe in your system and trade accordingly.
The influence of geopolitical events
Geopolitical events do not generally move the currency market as much as important economic events do. However, major occurances such as September the 11th do cause extreme moves. It is therefore necessary to always trade with a stop loss to protect your capital against such unexpected, large movements.
Summary of the important economic announcements.
Generally, announcements relating to the economy of the USA are most important. The top three market moving figure releases are:
Interest rates
Trade balance, budget and treasury budget
Employment situation
The following figures are less important but can be market movers if the figure comes in very different from what was predicted by economists:
Retail sales
Durable goods
GDP (usually the most stable figure)
Forex Trading Styles
There are two main Forex trading styles that are used by a majority of Forex traders:
Technical Trading
Fundamental Trading
Each of these has its differences, so let’s look into them in some more detail.
Technical Forex trading is primarily based on one of two tools. Charting tools are, as the name suggests, charts of past currency movements. As with any chart, you can add in trend lines to help smooth out the minor fluctuations and allow you to see the bigger picture. Of course, charting is a lot more complicated than mere trend lines but there are software programs out there that will help with your chart analysis. Once you get deeper into charts, the other main technical Forex trading method is the use of Quantitative Trading Models. These use math to analyze the markets and identify opportunites for trading. Technical trading uses past data to endeavor to predict future movements in the market.
Fundamental Forex trading involves the analysis of things such as key economic data. This includes reports from governments, current event news coverage and any other data that the fundamental analyst considers useful. Fundamentalists consider that currency movements are mainly affected by economic and political conditions and events. Whilst central banks have been known to get involved in the currency markets, this has become less common in recent years. Fundamentalist Forex trading looks at interest rates, inflation figures, balance of trade figures, Gross Domestic Product, retail price indexes, producer price indexes amongst other factors.
You need to decide which of these two trading styles fits best with your own personal style as well as the amount of time you have available for analysis and any help that you can get from computer programs.
Forexyard is the leader in online currency trading. It provides real-time deal execution, free Forex charts and quotes together with 24 hour commission free Forex trading.
Technical Trading
Fundamental Trading
Each of these has its differences, so let’s look into them in some more detail.
Technical Forex trading is primarily based on one of two tools. Charting tools are, as the name suggests, charts of past currency movements. As with any chart, you can add in trend lines to help smooth out the minor fluctuations and allow you to see the bigger picture. Of course, charting is a lot more complicated than mere trend lines but there are software programs out there that will help with your chart analysis. Once you get deeper into charts, the other main technical Forex trading method is the use of Quantitative Trading Models. These use math to analyze the markets and identify opportunites for trading. Technical trading uses past data to endeavor to predict future movements in the market.
Fundamental Forex trading involves the analysis of things such as key economic data. This includes reports from governments, current event news coverage and any other data that the fundamental analyst considers useful. Fundamentalists consider that currency movements are mainly affected by economic and political conditions and events. Whilst central banks have been known to get involved in the currency markets, this has become less common in recent years. Fundamentalist Forex trading looks at interest rates, inflation figures, balance of trade figures, Gross Domestic Product, retail price indexes, producer price indexes amongst other factors.
You need to decide which of these two trading styles fits best with your own personal style as well as the amount of time you have available for analysis and any help that you can get from computer programs.
Forexyard is the leader in online currency trading. It provides real-time deal execution, free Forex charts and quotes together with 24 hour commission free Forex trading.
Forex Earning Potential
Forex currency exchange trading is one of the fastest growing trade markets in the world. It is also the biggest with an estimated 1.8 trillion dollars being exchanged every single day.With these stats to it's name it should come as no surprise that one of the major reasons for this exponential growth is the fact that Forex trading offers incredible earning potential.
This is also why large multi-national corporations have been investing in foreign exchange for years and more and more individuals are utilizing currency trading to supplement their incomes and some are even living purely off the profits they make.
Trade Forex For a Living
If you want to enjoy currency trading success you can, but you need to be aware of one key point. 95% of traders lose money and that’s a lot of people! Don’t think you can’t do it, you can and this article will show you how.
The Forex markets remain the final frontier of the free market economy it’s the world’s biggest business and the most lucrative and is one of the few businesses you can start with small stakes and build real wealth. You can earn huge profits due to leverage, which allows you deposit 1,000 dollars and leverage it up 200 times to trade $100,000! If you can use leverage the right way, you can make huge profits let’s take a look at how to do this.
Forex trading is a learned skill and anyone can learn a simple Forex trading strategy for success; in Forex trading simple systems work best, because they have fewer elements to break than complicated ones. You only need a simple strategy to succeed but that’s not enough, you need the right mindset and that’s why most traders lose they don’t understand the next key point!
Despite what a lot of so called experts or Forex robot advisors will tell you, you can’t predict what Forex markets will do in advance and this means you will have losing periods. These losing periods, can last for weeks but that’s ok, so long as you cut your losses and run your profits. If you are trading with leverage you can lose 70% of the time (if you keep your losses small) and win just 30% of the time (if you run your winners) and still make triple digit gains!
The key to Forex is simply trading with discipline; forget your ego, learn to lose keep losses small, have faith in your system and the courage to run your winners and you can enjoy currency trading success.
New Forex traders think geeks and mathematicians, make the best traders but they don’t - Why?
Because they think being clever and building complicated trading systems, is the way to make money but as we have seen, simple trading systems always work best. Clever traders also come with egos, they simply hate losing and let their losses run and with leverage that leads to disaster. The best traders tend to be humble, highly disciplined and simply focus on what needs to be done and that’s, keeping losses small and running profitable trades for as long as they can.
Most traders don’t lose because they can’t learn to win, they lose because they don’t adopt the right mindset to succeed. Anyone can learn a method and anyone can adopt the right mindset, if they really want to and you can too.
Automated forex trading
We are constantly researching new trading concepts. When a newer and better trading method is found, the Destiny members get it sent to them automatically.
The forex market is dynamic and always changing so it is necessary to modify a trading strategy over time. We want you to have the best possible trading results. Destiny will give you a realistic chance for success. You can withdraw your funds at any time as you are the one who is in control of them. Just contact your broker and they will wire your funds to you. Or you can keep the money you made in your forex trading account and let the Destiny select the highest probability trades and execute them automatically.. The choice is yours. Enter your name and email above and you will receive updates on how to trade using Destiny.
Access To Better Spreads
To give you access to better spreads, we introduced No Dealing Desk*execution. As one of the largest Forex Dealer Members** with strong liquidity relationships with the world's leading banks, we constantly press them to supply the most favorable prices to us.Using Technical Analysis
Technical analysis is probably the most popular form of financial market analysis, since it can be applied to literally any market from currencies to stocks to commodities. It has to do with examining charts, price data, and using different mathematical indicators to try and come up with accurate trading signals.
The different technical methods that this article will cover are support and resistance, fibonacci retracements and profit targets, momentum oscillators such as the Relative Strength Index (RSI), and moving averages. While this is by no means a comprehensive guide to forex technical analysis, it will introduce you to some of the most popular trading tools and allow you to acquaint yourself with the notion of analyzing price charts.
In a sentence, technical analysis is the study of historical price movements to try and predict future results. While this is not always 100% accurate, it is based on the simple premise that all market movements are caused by real people, and human psychology and investment behavior tend to remain consistent. And because technical analysis is widely practiced by so many traders, with many of them even following the exact same indicators such as support and resistance lines, there is an element of self-fulfillment involved.
How to Trade Forex
Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.
FUNDAMENTAL ANALYSIS
What is fundamental analysis?Fundamental analysis in forex broadly investigates how various governments' economic policies influence the currency market. This study is generally more appropriate to the longer time frame.
For the daytrader, daily economic announcements are the only significant fundamental events that could influence your trades. These announcements comprise economic figure releases and speeches by prominent people.
10 Tips for your success in Forex trading
1. Implement a trading plan.
“If you fail to plan, you plan to fail”. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation.
Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.
2. Trade within your means
If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings.
Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.
3. Avoid emotion trading
If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.
4. Ride on a win and cut your losses
Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.
5. Love the trends
Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.
6. Stop looking for leading indicators
There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
7. Avoid trading in a thin market
Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.
8. Avoid trading in too many markets
Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.
9. Implement a proper trading system
There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.
10. Keep learning
The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.
“If you fail to plan, you plan to fail”. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation.
Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.
2. Trade within your means
If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings.
Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.
3. Avoid emotion trading
If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.
4. Ride on a win and cut your losses
Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.
5. Love the trends
Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.
6. Stop looking for leading indicators
There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
7. Avoid trading in a thin market
Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.
8. Avoid trading in too many markets
Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.
9. Implement a proper trading system
There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.
10. Keep learning
The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.
Spot and forward trading
When you trade foreign exchange you are normally quoted a spot price. This means that if you take no further steps, your trade will be settled after two business days. This ensures that your trades are undertaken subject to supervision by regulatory authorities for your own protection and security. If you are a commercial customer, you may need to convert the currencies for international payments. If you are an investor, you will normally want to swap your trade forward to a later date. This can be undertaken on a daily basis or for a longer period at a time. Often investors will swap their trades forward anywhere from a week or two up to several months depending on the time frame of the investment.
Although a forward trade is for a future date, the position can be closed out at any time - the closing part of the position is then swapped forward to the same future value date.
Although a forward trade is for a future date, the position can be closed out at any time - the closing part of the position is then swapped forward to the same future value date.
What are the most powerful figures that move Forex market?
Interest rate
Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.
Employment situation
Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency.
Trade balance, budget and treasury budget
A country that has a significant Trade Balance deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.
Gross Domestic Product (GDP)
GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity.
A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.
Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.
Employment situation
Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency.
Trade balance, budget and treasury budget
A country that has a significant Trade Balance deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.
Gross Domestic Product (GDP)
GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity.
A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.
Combining Mutual Funds With Forex Trading
In every financial market, the forex market included, there are certain gaps that can lead to decreased profits and decreased opportunities for profitable trading. Investing and trading in mutual funds can be a good way to earn money from both a short-term and a long-term perspective, but there are still certain gaps in this market where the inadequacies of trading opportunities become apparent.
While investing and trading in mutual funds can be an excellent way to profit from the stock market, one of the biggest problems with trading in mutual funds is that you typically cannot open or close positions until the market closes for the day and reopens.
Foreign Exchange Trading Intermarket Analysis
In our global financial system all of the major world financial markets are interconnected, yet the most popular form of forex market analysis, technical analysis, concentrates only on one market at a time. Most traders that implement technical analysis-based trading strategies may use tools such as candlestick formations or moving averages, but they will only focus on one chart or one market at a time.
Technical analysis can still be very useful to a forex trader. After all, the vast majority of all daily forex trading volume is speculative in nature, and all of those masses of traders working at their computers are likely following the same handful of indicators and oscillators, as well as focusing on the same levels of support and resistance. If enough traders are following a 14-day Relative Strength Index indicatorthen making successful trades based on that indicator becomes self-fulfilling in nature.
In fact, it is possible for you to completely ignore all other financial markets and only focus on one currency pair's chart, and you could still have a profitable trading strategy. However, the stock and commodity markets (with oil and precious metals playing a large role) of a given country will inevitably affect the value of that country's currency, so it would be wise for any astute currency trader to stay aware of the goings-on of other related financial markets.
An interesting development that comes with the widespread proliferation of forex trading is that there is a relative lack of intermarket analysis compared to most stock or equity markets. If you have even a brief knowledge of stock-picking strategies, then you should be familiar with the concept of diversification (spreading your stock picks across different sectors) as well as using a general index of stocks to rank a specific sector's performance.
Forex Trading Philosophy
Many beginning FOREX traders are captivated by the allure of easy money. FOREX websites offer 'risk-free' trading, 'high returns' 'low investment' – these claims have a grain of truth in them, but the reality of FOREX is a bit more complex.
There are two common mistakes that many beginner traders make – trading without a strategy and letting emotions rule their decisions. After opening a FOREX account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover.
This kind of undisciplined approach to FOREX is guaranteed to lose you money. FOREX traders need to have a rational trading strategy and not allow emotions to rule their trading decisions.
To make rational trading decisions the FOREX trader must be well-educated in market movements. He must be able to apply technical studies to charts and plot out entry and exit points. He must take advantage of the various types of orders to minimize his risk and maximize his profit.
The first step in becoming a successful FOREX trader is to understand the market and the forces behind it. Who trades FOREX and why? Who is successful and why are they successful? This knowledge will allow you to identify successful trading strategies and use them as models for your own.
There are 5 major groups of investors who participate in FOREX – Governments, Banks, Corporations, Investment Funds, and traders. Each group has varying objectives, but the one thing that all the groups (except traders) have in common is external control. Every organization has rules and guidelines for trading currencies and can be held accountable for their trading decisions. Individual traders, on the other hand, are accountable only to themselves.
This means that the trader who lacks rules and guidelines is playing a losing game. Large organizations and educated traders approach the FOREX with strategies, and if you hope to succeed as a FOREX trader you must play by the same rules.
Subscribe to:
Posts (Atom)
