Forex Trading

Forex Trading - Getting Started

2011-07-11T14:20:00.001-07:00

Forex Trading: a Beginner's Guide

The forex market is the world's largest international currency trading market operating non-stop during the working week. Most forex trading is done by professionals such as bankers. Generally forex trading is done through a forex broker - but there is nothing to stop anyone trading currencies. Forex currency trading allows buyers and sellers to buy the currency they need for their business and sellers who have earned currency to exchange what they have for a more convenient currency. The world's largest banks dominate forex and according to a survey in The Wall Street Journal Europe, the ten most active traders who are engaged in forex trading account for almost 73% of trading volume.

However, a sizeable proportion of the remainder of forex trading is speculative with traders building up an investment which they wish to liquidate at some stage for profit. While a currency may increase or decrease in value relative to a wide range of currencies, all forex trading transactions are based upon currency pairs. So, although the Euro may be 'strong' against a basket of currencies, traders will be trading in just one currency pair and may simply concern themselves with the Euro/US Dollar ( EUR/USD) ratio. Changes in relative values of currencies may be gradual or triggered by specific events such as are unfolding at the time of writing this - the toxic debt crisis.

Because the markets for currencies are global, the volumes traded every day are vast. For the large corporate investors, the great benefits of trading on Forex are:

Enormous liquidity - over $4 trillion per day, that's $4,000,000,000. This means that there's always someone ready to trade with you
Every one of the world's free currencies are traded - this means that you may trade the currency you want at any time
Twenty four - hour trading during the 5-day working week
Operations are global which mean that you can trade with any part of the world at any time

From the point of view of the smaller trader there's lots of benefits too, such as:

A rapidly-changing market - that's one which is always changing and offering the chance to make money
Very well developed mechanisms for controlling risk
Ability to go long or short - this means that you can make money either in rising or falling markets
Leverage trading - meaning that you can benefit from large-volume trading while having a relatively-low capital base
Lots of options for zero-commission trading

How the forex Market Works

As forex is all about foreign exchange, all transactions are made up from a currency pair - say, for instance, the Euro and the US Dollar. The basic tool for trading forex is the exchange rate which is expressed as a ratio between the values of the two currencies such as EUR/USD = 1.4086. This value, which is referred to as the 'forex rate' means that, at that particular time, one Euro would be worth 1.4086 US Dollars. This ratio is always expressed to 4 decimal places which means that you could see a forex rate of EUR/USD = 1.4086 or EUR/USD = 1.4087 but never EUR/USD = 1.40865. The rightmost digit of this ratio is referred to as a 'pip'. So, a change from EUR/USD = 1.4086 to EUR/USD = 1.4088 would be referred to as a change of 2 pips. One pip, therefore is the smallest unit of trade.

With the forex rate at EUR/USD = 1.4086, an investor purchasing 1000 Euros using dollars would pay $1,408.60. If the forex rate then changed to EUR/USD = 1.5020, the investor could sell their 1000 Euros for $1,502.00 and bank the $93.40 as profit. If this doesn't seem to be large amount to you, you have to put the sum into context. With a rising or falling market, the forex rate does not simply change in a uniform way but oscillates and profits can be taken many times per day as a rate oscillates around a trend.

When you're expecting the value EUR/USD to fall, you might trade the other way by selling Euros for dollars and buying then back when the forex rate has changed to your advantage.

Is forex Risky?

When you trade on forex as in any form of currency trading, you're in the business of currency speculation and it is just that - speculation. This means that there is some risk involved in forex currency trading as in any business but you might and should, take steps to minimise this. You can always set a limit to the downside of any trade, that means to define the maximum loss that you are prepared to accept if the market goes against you - and it will on occasions.

The best insurance against losing your shirt on the forex market is to set out to understand what you're doing totally. Search the internet for a good forex trading tutorial and study it in detail- a bit of good forex education can go a long way!. When there's bits you don't understand, look for a good forex trading forum and ask lots and lots of questions. Many of the people who habitually answer your queries on this will have a good forex trading blog and this will probably not only give you answers to your questions but also provide lots of links to good sites. Be vigilant, however, watch out for forex trading scams. Don't be too quick to part with your money and investigate anything very well before you shell out any hard-earned!

The forex Trading Systems

While you may be right in being cautious about any forex trading system that's advertised, there are some good ones around. Most of them either utilise forex charts and by means of these, identify forex trading signals which tell the trader when to buy or sell. These signals will be made up of a particular change in a forex rate or a trend and these will have been devised by a forex trader who has studied long-term trends in the market so as to identify valid signals when they occur. Many of the systems will use forex trading software which identifies such signals from data inputs which are gathered automatically from market information sources. Some utilise automated forex trading software which can trigger trades automatically when the signals tell it to do so. If these sound too good to be true to you, look around for online forex trading systems which will allow you undertake some dummy trading to test them out. by doing this you can get some forex trading training by giving them a spin before you put real money on the table.

How Much do you Need to Start off with?

This is a bit of a 'How long is a piece of string?' question but there are ways for to be beginner to dip a toe into the water without needing a fortune to start with. The minimum trading size for most trades on forex is usually 100,000 units of any currency and this volume is referred to as a standard "lot". However, there are many firms which offer the facility to purchase in dramatically-smaller lots than this and a bit of internet searching will soon locate these. There's many adverts quoting only a couple of hundred dollars to get going! You will often see the term acciones trading forex and this is just a general term which covers the small guy trading forex. Small-scale trading facilities such as these are often called as forex mini trading.

Where do You Start?

The single most obvious answer is of course - on the internet! Online forex trading gives you direct access to the forex market and there's lots and lots of companies out there who are in business just to deal with you online. Be vigilant, do spend the time to get some good forex trading education, again this can be provided online and set up your dummy account to trade before you attempt to go live. If you take care and take your time, there's no reason why you shouldn't be successful in forex trading so, have patience and stick at it!

2009-10-12T10:20:00.000-07:00

Types of Forex Charts

There are several types of the Forex charts that are used by the currency market traders. Perhaps, the most popular among them is the Japanese candlestick chart, which offers a lot of information about the price, which, at the same time, is easily understandable and can be used to analyze the chart patterns. Other chart types include: OHLC bars (which aren’t too different from the candlesticks but aren’t so visually informative), chart lines and point-and-figure charts. Here are the examples of all the four types:
Japanese Candlestick OHLC Bar Line Point-and-Figure
Japanese Candlestick OHLC Bar Line PF

I prefer to trade using the Japanese candlestick charts, sometimes I also look at P&F charts but that happens quite rare. And how about you?

What type of Forex chart do you prefer?

* Japanese Candlesticks
* OHLC Bars
* Lines
* Point-and-Figure
* Raw Quotes

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Forex Technical Analysis for 10/12—10/16 Week

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: buy.
EUR/JPY trend: buy.
Floor Pivot Points
Pair 3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
EUR/USD 1.4223 1.4352 1.4463 1.4591 1.4703 1.4831 1.4943
GBP/USD 1.5411 1.5590 1.5767 1.5946 1.6124 1.6303 1.6480
USD/JPY 86.36 87.29 88.54 89.47 90.72 91.66 92.91
EUR/JPY 126.28 127.66 129.26 130.64 132.24 133.62 135.23

Woodie’s Pivot Points
Pair 2nd Sup 1st Sup Pivot 1st Res 2nd Res
EUR/USD 1.4347 1.4455 1.4587 1.4695 1.4827
GBP/USD 1.5589 1.5767 1.5946 1.6123 1.6302
USD/JPY 87.37 88.70 89.55 90.88 91.74
EUR/JPY 127.71 129.38 130.70 132.36 133.68

Camarilla Pivot Points
Pair 4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
EUR/USD 1.4443 1.4509 1.4531 1.4553 1.4597 1.4619 1.4641 1.4707
GBP/USD 1.5749 1.5847 1.5880 1.5912 1.5978 1.6010 1.6043 1.6141
USD/JPY 88.59 89.19 89.39 89.59 89.99 90.19 90.39 90.99
EUR/JPY 129.23 130.05 130.32 130.60 131.14 131.42 131.69 132.51

Tom DeMark’s Pivot Points
Pair EUR/USD GBP/USD USD/JPY EUR/JPY
Resistance 1.4647 1.6213 91.19 132.93
Support 1.4407 1.5857 89.01 129.95

Fibonacci Retracement Levels
Pairs EUR/USD GBP/USD USD/JPY EUR/JPY
100.0% 1.4720 1.6125 90.41 132.01
61.8% 1.4628 1.5989 89.57 130.87
50.0% 1.4600 1.5947 89.31 130.52
38.2% 1.4571 1.5905 89.06 130.17
23.6% 1.4536 1.5853 88.74 129.73
0.0% 1.4480 1.5769 88.22 129.03

Tags: EUR/JPY, EUR/USD, Fibonacci, GBP/USD, pivot points, technical analysis, USD/JPY

Forex Broker with Simple Trading Platform

10Pips is a new Forex broker that was added to the list on my site today. Its main stated advantage is the simplicity of the trading platform and the overall process of starting Forex trading even for the complete newbies. I don’t know why did they give their broker such a name but, in my opinion, 10 pips is too much for a spread and too low for a profit :-). Of course, their spreads are quite below 10 pips (EUR/USD spread is only 2 pips, which is the current industry’s average). It should also be said that they are not a purely Forex broker since they offer CFD, stocks, commodities and index trading as well. Other features of 10Pips include:

* Multilingual traders’ support
* Real account bonuses
* Deposit via WebMoney, wire transfer or credit cards
* $100 to start trading
* Leverage — up to 1:200

Tags: bonus, CFD, Forex broker, WebMoney
1 Comment »
Forex Strategies Section
October 8th, 2009

I’ve finally added a Forex strategies section to my site today. Currently it only lists only 9 strategies (very simple ones) — that isn’t a lot, but that list can help newbie traders to find their first strategy or to get a model for creating their own trading system. The presented strategies are basically divided into three categories according to their main principle of the entry conditions: strategies based on the technical indicators, strategies based on the bare charts or price action and strategies based on the fundamental indicators. If you know some good interesting Forex strategies and want to share them with other traders, you can send the strategy to me and I will certainly add it to the list on the site. You will even get credited for the strategy, getting a mention on its page.

EUR/USD Met Its Resistance Level

The euro went up against the U.S. dollar today on the Forex market but the latest trading results show that the EUR/USD pair has met its resistance point near 1.4800. The fundamental factors that affect the U.S. dollar look positive, as the macroeconomical statistics from United States is rather good today, while the ECB decision to leave the interest rate unchanged at 1% is quite neutral. EUR/USD is now trading near 1.4733.

Initial jobless claims were reported at 521k for the last week — that’s 33k less than the previous week’s figure. Traders expected a decline to 541k jobless claims.

Wholesale inventories decreased by 1.3% in August, following 1.6% drop in July. According to the analysts’ forecast the inventories should have gone down by 1%. Declining inventories of the wholesalers indicate an elevated consumer demand.

Other important U.S. fundamental releases went out earlier this week:

ISM services index went up from 48.4% to 50.9% in September, which was a bit better than the expected 50% value.

U.S. crude oil inventories decreased by 1 million barrels last week, while the motor gasoline inventories went up 2.9 million barrels.

Consumer credit in United States decreased by $12 billion in August after falling by $19 billion in July. The estimated credit change value for the August was at $10 billion.

Tags: consumer credit, crude oil inventories, initial jobless claims, ISM services, wholesale inventories

Do You Use Forex Trading Strategy?

According to many Forex guides, tutorials and manuals, the trading strategy is the backbone of the successful trading behavior. The most obvious reason to have a well-defined Forex strategy is to stop relying on bare luck and move from the Forex gambling to the actual Forex trading. With a strategy it’s much easier to analyze the trading performance, its rights and wrongs. It also becomes easier to keep a Forex trading journal if you use some system for entering and exiting the market. Unfortunately, it’s not very easy to follow a strategy, especially if it allows some losing periods. Some traders (including me) are prone to the constant changing of a strategy, which is not always upgrading it but often degrades the strategy. And how about you? Is it more simple to trade with a Forex strategy for you?

Do you have a Forex trading strategy?

* Yes, I've developed my own Forex strategy.
* No, I don't have a trading strategy.
* Yes, I use strategies developed by someone else.
* Yes, I use a paid Forex strategy.
* I change my trading strategies constantly.

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Russian Forex Broker with CFD and Futures

EXNESS is a Russian Forex broker that has only recently gone on-line with its website and is offering trading services in the traditional currency pairs and also in CFDs for many global stock markets, as well as in the futures contracts for commodity and index exchanges. Overall it’s a good broker to start with (only $100 minimum and 1:200 leverage), if you aren’t very paranoid about the broker’s regulation because currently there is no institution in Russia that would regulate on-line Forex trading specifically. Other interesting features of this Forex broker are:

* MetaTrader 4 platform
* 11 ways to fund your trading account
* 2 pips average variable spread on EUR/USD
* Trade in gold and crude oil

Forex Technical Analysis for 10/05—10/09 Week

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: buy.
EUR/JPY trend: hold.
Floor Pivot Points
Pair 3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
EUR/USD 1.4223 1.4352 1.4463 1.4591 1.4703 1.4831 1.4943
GBP/USD 1.5411 1.5590 1.5767 1.5946 1.6124 1.6303 1.6480
USD/JPY 86.36 87.29 88.54 89.47 90.72 91.66 92.91
EUR/JPY 126.28 127.66 129.26 130.64 132.24 133.62 135.23

Woodie’s Pivot Points
Pair 2nd Sup 1st Sup Pivot 1st Res 2nd Res
EUR/USD 1.4347 1.4455 1.4587 1.4695 1.4827
GBP/USD 1.5589 1.5767 1.5946 1.6123 1.6302
USD/JPY 87.37 88.70 89.55 90.88 91.74
EUR/JPY 127.71 129.38 130.70 132.36 133.68

Camarilla Pivot Points
Pair 4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
EUR/USD 1.4443 1.4509 1.4531 1.4553 1.4597 1.4619 1.4641 1.4707
GBP/USD 1.5749 1.5847 1.5880 1.5912 1.5978 1.6010 1.6043 1.6141
USD/JPY 88.59 89.19 89.39 89.59 89.99 90.19 90.39 90.99
EUR/JPY 129.23 130.05 130.32 130.60 131.14 131.42 131.69 132.51

Tom DeMark’s Pivot Points
Pair EUR/USD GBP/USD USD/JPY EUR/JPY
Resistance 1.4647 1.6213 91.19 132.93
Support 1.4407 1.5857 89.01 129.95

Fibonacci Retracement Levels
Pairs EUR/USD GBP/USD USD/JPY EUR/JPY
100.0% 1.4720 1.6125 90.41 132.01
61.8% 1.4628 1.5989 89.57 130.87
50.0% 1.4600 1.5947 89.31 130.52
38.2% 1.4571 1.5905 89.06 130.17
23.6% 1.4536 1.5853 88.74 129.73
0.0% 1.4480 1.5769 88.22 129.03

EUR/USD Jumps Up on Deteriorating Economic Conditions

The euro rose against the U.S. dollar today despite the unexpectedly bad values reported on the two important macroeconomic indicators in United States. With each new trading session it looks like the dollar is becoming more and more positively correlated with the U.S. economy, losing when the fundamentals are bad and gaining when they are good. EUR/USD is now trading near 1.4594.

Nonfarm payrolls were reported at -263k for September — that’s worse than -201k reported for July and -175k value of the forecast. Unemployment rate jumped up from 9.7% to 9.8%.

Factory orders decreased by 0.8% in August in U.S., following 1.4% gain in July. The forecast by the analysts showed that this indicator will be reported with 0% change.

USD Gains vs. Euro on Positive Income & Spending

EUR/USD dropped today, going below the yesterday’s positive trading session’s open level. The traders probably react on the improved personal income and spending growth report, betting for the faster U.S. economy’s recovery. On the other hand, a growth of the dollar may be a result of the bad jobless claims report. Currently EUR/USD is trading near 1.4554, it also reached it’s lowest level since September 14th today — 1.4518.

Personal income rose by 0.2% in August in United States. Personal spending increased by 1.3% in that month. Income growth remained the same as in July, while the spending growth accelerated from 0.3%. Forecast for personal income gain was at 0.1% and the forecast for spending was at 1.1%.

Initial jobless claims went up from 534k to 551k last week. That was an unexpected gain as only 535k claims were forecasted for today’s report.

ISM PMI fell from 52.9% to 52.6% in September. This is a signal of stagnation for the U.S. manufacturing industry, but while it’s still above 50% it’s a good signal overall. Traders expected a gain to 54.0% from this report.

Pending home sales index rose by 6.4% in August, following 3.2% gain in July. The market analysts predicted a growth by 1%. At 103.8 pending home sales index is now above the average level of 2001.

Construction spending in U.S. rose by 0.8% in August compared to July. This growth followed 1.1% drop in July. Forecasted change was at -0.1%.

Dollar Slightly Down But Spike Hints Bearish Sentiment
September 30th, 2009

The U.S. dollar dropped against the euro today after some rather good fundamental reports on employment and total economic output. But the upward spike on the EUR/USD chart, which is significantly higher than the daily gain hints that the bearish sentiment among the traders is still quite strong near 1.4670 level. Currently, EUR/USD is trading near 1.4517.

ADP employment change report for September 2009 showed a decline by 254k jobs — that’s better than August’s 298k drop, but is worse than only 200k drop forecasted by the analysts.

U.S. GDP change for the 2nd quarter of 2009 received it final revision report today, which showed a decrease by only 0.7%, compared to 1% drop in the previous report and 1.2% decline forecast.

Chicago PMI fell from 50.0 to 46.1 in September, reflecting the pessimistic expectations of the manufacturing industry managers in the region. The index was expected to rise to 52.0.

U.S. crude oil inventories increased by 2.8 million barrels last week, while the total motor gasoline inventories decreased by 1.6 million barrels during the same period of time.

Tags: ADP employment, Chicago PMI, crude oil inventories, GDP
2 Comments »
EUR/USD Declines Despite Increased House Prices
September 29th, 2009

EUR/USD continued to fall today in the Forex market despite the optimistic stock market conditions and good housing report. It’s either that the euro is losing its attractiveness to the global investors or the greenback is beginning to really benefit from the better prospects for the U.S. economy. EUR/USD is currently trading near 1.4537.

S&P/Case-Shiller Home Price index (seasonally-adjusted) grew for a second month in a row in July 2009. The index went up from 141.42 to 143.05 from the
previous month. It decreased by 13.41% year-over-year, following 15.40% decrease a month earlier. The forecasted year-over-year drop was 14.25%.

Consumer confidence went down from 54.5 to 53.1 in September. It was an unexpected drop as the forecasts hinted a growth to 57.0.

Interview with Azurite Markets

I am always open to interviewing Forex brokers and other interesting Forex companies. I believe that the readers of this blog are very interested in hearing about Forex trading from the people that form the industry as we trade. Last week, a Director and Vice President of Azurite Markets, Adam D. Neal, contacted me asking if I would be willing to do an interview with him. Of course, I agreed and now I can offer you his answers to the questions about the Forex company he represents and the current state of the Forex market industry.

You are a rather new Forex broker compared to many other established companies in this industry. How did you come to a decision to start such a business in an over-saturated market?

Although the market is saturated with Forex Brokers, it is unfortunately not populated with a wealth of very good ones; therefore we think that we can certainly prosper within this industry by ensuring that no matter how much we grow we stay client focused.

Who are the main target audience of Azurite Markets? Who are your current customers — beginning Forex traders or experienced professionals, middle-income casual traders or high-income dedicated traders?

The two main groups our clients fall under are: first, retail clients trading on the financial markets (all levels from beginner to professional) and, second, other FX and CFD providers that wish to hedge some of their exposure with us.

Currently you offer quite an interesting stand-alone platform and a web trading platform but do you plan to add a very popular MetaTrader platform too? Why?

If our clients request further services, inclusive of new platforms then sure we will look to add these services, however the feedback regarding our platform has been very very positive. In some ways our platform is very similar to the MT4, however it does have a number of distinct advantages over the MT4 platform like the net trade tab, such a simple yet exceedingly functional tab for clients.

Do you help your traders somehow? Offer to them free learning courses or e-book? What about some other ways to increase their understanding of the currency market?

Yes, we offer our clients a number or market reviews and previews; we also offer free SMS services for: economic announcements, market prices, notifications when pending orders have been executed and account summaries.

Many Forex brokers seek to offer many e-currencies and other electronic means of withdrawal and deposit to their clients? Why do you offer only wire transfer? Do you plan adding PayPal or Moneybookers?

To begin with our clients weren’t too interested in online payments, however now that they have requested these services we have setup the facility to accept credit card payments and in the near future should be accepting a number of other online payments.

What features of Azurite Markets as a broker attract the traders? What makes you unique among hundreds of other brokers?

We are very client focused, we also backup the promises we make to clients. I’d say that massively differentiates us from other brokerage houses.

What do you think about allowing your customers to open an account and confirm their identity fully on-line, without sending any paper documents? Is possible in the future?

We do have an online process in which clients can upload their information and have their trading account fully approved. However, they then have a two week window to send us their documents. Azurite operates very strict “Know your client” and ”Anti Money Laundering” reviews. Personally, if I was opening an account with a broker I would worry if they did not carry out such stringent KYC and AML as they either do not follow regulatory procedures or the regulatory umbrella they fall under does not take such illegal activities seriously.

Without a proper communication with its traders some Forex brokers often make an impression of some shady fraudulent sites, even if they are regulated by serious financial authority. Does Azurite Markets communicate with its customers? How is it performed? Do you provide some media for your traders to communicate between each other — like a forum or a chat?

Firstly we ensure that our clients fully understand Azurite’s policies, this helps to establish a certain level of trust between us and the client; we also try not to change these policies. As a company we operate very transparently which in turn our clients really appreciate. Due to our regulatory requirements Azurite has to ”Treat Customers Fairly”. If anyone would like to know more about this then they can visit the FSA’s website. We also have a very experienced in-house compliance team that is there to help resolve any client issues if any were to arise.

What would advise to the new Forex trader? How should they begin and how should they learn to become professional traders?

I always recommend a very risk adverse and experienced mentor to new traders. They should also be looking to build their knowledge on some solid foundations rather than a few online forums and a demo account.

You offer a lot of other trading instruments except common currency pairs, including commodities, metals, indexes, etc. Are they popular among your traders? Do you promote these instruments somehow?

Yes CFD products are very popular with our clients, chiefly Crude Oil contracts and Indices. With equity markets rising approximately 50% between March and September of this year and Crude Oil as volatile as ever we have seen clients flooding into these products.

Why did you name your company Azurite Markets? Does the name mean anything?

Azurite is a beautiful, hard wearing and affordably priced gem. So I guess you could say Azurite Markets mirrors that in its affordable yet exceedingly reliable execution of trades.

What’s your point of view on the opinion that Forex trading as a kind of gambling? What are the main differences between trading and gambling, in your opinion?

I think that John Maynard Keynes had a very good perception when he said “It is generally agreed that casinos should, in the public interest, be inaccessible and expensive. And perhaps the same is true of stock exchanges.” Whether someone is gambling or trading within their account, I’d say they were in the best position to know. I’d also pose the question: Do banks gamble or trade?! I think that would prove to be a very heated discussion with the recent happenings within the markets.

What is the Average Forex Trading Account Size?

I’ve always wondered how much other traders are risking with their Forex trading accounts. Personally I come really conservatively to limiting my Forex trading account’s size, I never keep it above $10,000 and I am always withdrawing “extra” profits, because sometimes I am entering really ugly losing streaks. I know traders that never deposited more than $100 and traded with such balance for a year or two. Meanwhile there are very dedicated Forex “spenders” that keep accounts near 40–50 grands and are looking quite happy with that. So, how about you?

What's the size of your average Forex trading account?

* Less than $100.
* Between $100 and $1,000.
* Between $1,000 and $2,000.
* Between $2,000 and $10,000.
* More than $10,000.
* Why should I be telling you this?
* I don't have a Forex trading account.

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English Forex Broker Rich in Trading Instruments

Azurite Markets is a latest addition to the list of the Forex brokers on my site. It’s a company registered in England and Wales and regulated by the Financial Service Authority (FSA). The most notable feature of this broker is that it offers a large variety of the trading instruments, including but not limited to: common Forex pairs, CFD, soft and grain commodities, energy commodities (including oil and gas), metals (including gold and silver), indexes, and Forex futures (like the Dollar Index). The trading for all these instruments is performed from one account, which is very convenient. Other important features of Azurite Markets are:

* $100 effective minimum account size to start trading
* Advanced Forex trading platform
* Web Trader to trade directly from browser
* Muslim-friendly accounts on request
* Mini Forex trading lots
* Deposit/withdrawal only via the wire transfer

Forex Technical Analysis for 09/28—10/02 Week

EUR/USD trend: sell.
GBP/USD trend: hold.
USD/JPY trend: buy.
EUR/JPY trend: buy.
Floor Pivot Points
Pair 3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
EUR/USD 1.4309 1.4412 1.4561 1.4664 1.4813 1.4916 1.5065
GBP/USD 1.5649 1.5939 1.6104 1.6394 1.6559 1.6849 1.7014
USD/JPY 88.87 89.49 90.39 91.01 91.91 92.53 93.43
EUR/JPY 128.65 129.97 132.13 133.45 135.62 136.93 139.10

Woodie’s Pivot Points
Pair 2nd Sup 1st Sup Pivot 1st Res 2nd Res
EUR/USD 1.4424 1.4584 1.4676 1.4836 1.4927
GBP/USD 1.5908 1.6041 1.6363 1.6496 1.6818
USD/JPY 89.56 90.53 91.08 92.05 92.60
EUR/JPY 130.18 132.56 133.66 136.04 137.14

Camarilla Pivot Points
Pair 4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
EUR/USD 1.4572 1.4641 1.4664 1.4687 1.4733 1.4757 1.4780 1.4849
GBP/USD 1.6019 1.6144 1.6185 1.6227 1.6311 1.6352 1.6394 1.6519
USD/JPY 90.45 90.87 91.01 91.15 91.43 91.57 91.71 92.12
EUR/JPY 132.38 133.34 133.66 133.98 134.62 134.94 135.25 136.21

Tom DeMark’s Pivot Points
Pair EUR/USD GBP/USD USD/JPY EUR/JPY
Resistance 1.4865 1.6704 91.46 134.53
Support 1.4613 1.6249 89.94 131.05

Fibonacci Retracement Levels
Pairs EUR/USD GBP/USD USD/JPY EUR/JPY
100.0% 1.4767 1.6684 91.64 134.77
61.8% 1.4670 1.6510 91.05 133.44
50.0% 1.4641 1.6457 90.88 133.03
38.2% 1.4611 1.6403 90.70 132.62
23.6% 1.4574 1.6337 90.47 132.11
0.0% 1.4515 1.6229 90.12 131.29

EUR/USD Grows on Consumer Sentiment, Ignores Housing

EUR/USD went up slightly at the Forex market today as the traders are unsure whether it’s a good idea to go for a full-scale correction after months of growth. The currency pair was in a consolidation during the early trading session but then went into a green zone after the traders began to react on the positive consumer sentiment report, ignoring the worse than expected data on new home sales in United States. EUR/USD is now trading near 1.4705.

Durable goods orders unexpectedly decreased by 2.4% in August after rising by 4.8% in July. The forecast change for this indicator was positive at 0.1%.

Michigan University consumer sentiment index rose from 65.7 to 73.5 in September — the highest level since early 2008. The expected value was at 70.2 for this index.

The new home sales report continued the cause started by the yesterday disappointing existing home sales report. The seasonally adjusted annual rate of the new home sales was at 429k in August — up from 426k in July (revised down from 433k) but below the average forecast of 440k.

Tags: durable goods orders, Michigan Sentiment Index, new home sales
2 Comments »
Euro Catches Up vs. Dollar in Correction
September 24th, 2009

After posting a first major declining day since September 1st yesterday, EUR/USD returned to the growth today. The good employment report from U.S. helped the euro to maintain a rather high intraday levels against the U.S. dollar, but the yesterday’s high wasn’t broken yet. EUR/USD is now trading near 1.4734.

Initial jobless claims hit their medium-term low according to the latest report — they were at 530k last week, following 551k value for a previous week. The forecast for the latest value was at 550k.

Existing home sales unexpectedly declined in August and were reported at a seasonally adjusted annual rate of 5.10 million — down from 5.24 million reported for July. The Forex market participants expected 5.35 million value from today’s report.

Tags: existing home sales, initial jobless claims
1 Comment »
EUR/USD Down After FOMC Claims
September 23rd, 2009

EUR/USD managed to reach its new high level since late September 2008 and then went down below the daily open level today. The FOMC decision played the major role in today’s decline of the euro against the U.S. dollar. Currently EUR/USD is trading near 1.4764 after reaching as high as 1.4842 earlier today.

U.S. Federal Reserve decided to leave the interest rate unchanged between 0% and 0.25% but slowing down the purchase of the mortgage securities and the agency debt. The statement from the Fed also included a claim that the economical output is expected to be very low for an ”extended period”, while the changes in the monetary policy are expected to be made at the end of the first quarter of 2010.

Crude oil inventories increased for the first time in several weeks — by 2.8 million barrels during the week ending September 18. During the same time total motor gasoline inventories went up by 5.4 million barrels. Such a growth of the inventories have put a great pressure on the oil prices globally.

A minor market indicator was released this Monday — Leading Economic Indicators index increased by 0.6% in August, following 0.9% gain in July. The index was expected to rise by 0.7% in August.

E-Global Trade & Finance — Forex Broker with Liberty Reserve

Today I’ve added another Forex broker to the site — E-Global Forex. It’s not a new broker (they’ve been on-line since 2007) and they also have a rather popular IB company working for them — Forex4you (which has some additional features compared to E-Global). Apart from the standard Forex trading accounts that start from $100, E-Global offers cent accounts that have only $20 minimum and allow trading with positions as small as 10 base currency units (0.0001 lots). It’s a broker with MetaTrader 4 platform. Other highlights of this broker include:

* Sharia-compliant accounts on request
* Leverage from 1:10 to 1:500
* Small yearly interest on account balance (applied monthly)
* Regulated on BVI but offices based in Cyprus
* Deposit via Liberty Reserve, credit card and wire transfer
* Forex, CFD, gold and oil trading

Top 100 Forex Resources

2009-10-12T10:17:00.001-07:00

The average daily forex trading volume currently exceeds $1.9 trillion. With so much on the line, we’ve put together a list of our favorite 100 forex resources to help you become a knowledgeable forex trader. The following resources were chosen for the quality of information and training tools offered. Although some of these tools are located on commercial sites, you’ll find value in materials produced by professionals. Other sites were chosen for the resources that they offered for a price (like books), but they’re all geared specifically toward the forex trader. The chosen sites are written in the English language, but some individuals, businesses, and organizations are located in areas other than the United States. All sites are listed in alphabetical order within the following categories:

Topics Covered in this Article

Beginner’s Paradise | Blogs & News | Charts | Currency & Currency Converters | Directories & Portals | Economic Calendars & Indicators | Fibonacci & Candlesticks | Forecasts and Signals | Forums and Communities | Glossaries | Market Reports | Nonprofit Associations | Practice | Real-Time Quotes | Technical Indicators | X-Tras
Beginner’s Paradise

If you’re a forex newbie, the following sites will help you get a grip on the similarities and differences between forex trading and stock exchange trading. Take advantage of free resources before you dedicate any serious cha-ching to training.

1. Tip’d: Investing and Finance Social Media / News — Get the latest forex, commodities, and market news from the largest investing social media site.
2. Currency College
— Currency College delivers a variety of course offerings with classes that are held at the student’s convenience. Each class is followed by homework and tests; each course lasts about six weeks; and each class contains about ten students. Emphasis is given to risk management. This is not free education, but if you bring referrals to Currency College you could earn a scholarship toward your tuition. This site has plenty of free resources, however, like a comparative chart for various trading platforms so you can make an educated choice about trading platforms.
3. CyberTrading University — This site offers free forex training through a two-hour video that includes a brief history, PIP spreads, majors and crosses, economic indicators, fundamental analysis, technical analysis, short-term long-term fundamentals, trading rules, leverage and margin, trading psychology, Fibonacci Retracement Levels, moving averages, oscillators, Candlestick Charts, Bollinger Bands, and more.
4. Forex Charting 101 — A brief and basic overview of forex charts from Pip Trader. You’ll discover that the charts are very similar to those that you might use for securities trading. But, some of the charts may seem more complicated if you’re not a seasoned trader.
5. Forex Realm —
Possibly the most comprehensive and thorough forex education online. Learn about everything from currency codes to exotic trading strategies through articles, graphics, and concise examples.
6. Forex-Training.com
— Fairly comprehensive training with a free demo account. The highlight to this site is their explanations about various charts.
7. FX Home Trader
— Focus on the information about technical analysis, where you can learn more about Fibonacci Trading, Pivot Points, and more. Their Forex Facts also contain some valuable information.
8. FX Power Trading Course — Offered by FXCM, this paid course is one step up from free at the current price. Learn how to time the market, recognize trends, and basics in fundamental and technical analysis through this eight-day course.
9. Investopedia on Forex — An extensive 10-part article on forex investing, from an introduction to a recap that covers everything from benefits and risks to technical analysis. If you can’t get enough of Investopedia’s information, head to a list of their Forex articles, where you can learn more and download their free e-Book entitled, "High Probability Trading Setups for the Currency Market."
10. Law of Charts
— Joe Ross offers advice for traders across the board, but the information contained in his "Law of Charts" offer speaks to forex as well as any other trading strategy. He identifies chart patterns that result from human behaviors and points to entry and exit targets on those charts. You can take advantage of Ross’s other tools as well, including the forum.
11. Learn4X — This is an interesting site simply because it contains several tests that help you determine if you have the ‘guts’ and knowledge to be a trader. They also offer a free online seminar.
12. Market Traders Institute (MTI) — You don’t need to spend a lot of money to train in forex markets. MTI offers many free resources such as videos and lesson plans that will help you get off the ground. If you like what you hear and see, you can invest in materials for the advanced trader down the road.
13. My Forex Trading Tools — A site that contains overviews on everything from fundamentals to options.
14. Online Training Academy — Free basics on FX trading via video, offered by Mike McMahon. You need to register, but you can opt out of contact lists with a click of a box.
15. School of Pipsology
— A lighthearted forex education from Kindergarten to College so the beginner knows exactly where he stands in an attempt to grasp the forex market.

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Blogs & News

The following list provides a variety of news from both professional and single-investor resources.

16. A Forex Loser
— The name of the blog ought to warn you. This blog contains a different perspective on trading, with an emphasis on trading psychology. Some great trading tips.
17. Currency Secrets
— Not updated daily, but plenty of resources in historical entries. The focus is on currency, but you can find plenty of reviews and tips here as well.
18. DailyFX — Sponsored by Forex Capital Markets (FXCM), this site offers a free weekly trading lesson, a forum, economic calendar, and free quarterly outlook reports.
19. Forex News — At-a-glance links to news and analyses.
20. Forex Project — A fascinating blog written by a forex beginner who logs his experiences in a journal, through established goals, and with a full trade history. This blogger currently is under pressure from a fulltime job, and he’s considering a transition from day trading to going long on his investments. Should be an interesting read. Be sure to check out this blogger’s list of references, including a nice beta risk calculator.
21. FX Boot Camp — Wayne McDonell offers his boot camp theories for free at his blog on FXStreet (see next).
22. FXStreet — Breaking news, commentary. Sponsored by Global Forex Trading (GFT).
23. Peter Bain Forex Trading Commentary — Peter Bain’s commentary needs to be good, as it’s a tool to push his training course. You can take advantage of his free podcasts as well.
24. Piptopia —
This is Rob Booker’s blog on forex. He’s a currency trader and trainer and he’s been at this blog for two years, so you’ll find some interesting history here.
25. Grace Cheng’s Forex Blog — "Not long after my graduation, I was introduced to forex trading, and since then, have never looked back." Outside of her blog, Cheng writes for a number of trading and investment magazines.
26. Quantitative Trading — Dr. Ernest Chan’s take on automated, statistical trading strategies.
27. Trader Mike — Michael is a trader, and this blog is a trading journal of sorts. Although he considers himself a swing/position trader, he switched to day trading in 2005. Although this blog doesn’t focus on forex per se, you can learn plenty about trading strategies here.

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Charts

You can’t trade without charts, but the chart that you use is a matter of personal preference. The list below provides a nice pool to pick from:

29. DailyFX Chart — You can manipulate this chart by type, time scale, view, and much more. Java based.
30. Free Forex Charts
— From simple to Premium to System Trading, simply the best choice of charts around.
31. Forex-Market
— This site offers two free, real-time charting applications, one Web-based and the other a stand-alone Java applet.
32. Live Currency Chart — This chart, offered by FXStreet (see Blogs & News above), is also Java based. A nice feature is the Drag&Drop that allows traders to pull indicators out of the Studies window and up into the Chart window.

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Currency & Converters

Currencies can be confusing, especially when you learn that many lots are purchased in pairs. You can learn about specific currencies when you type the names of that currency into a search engine. For instance, you can learn more about the Euro at that currency’s official site. But, if you don’t know what to look for, the information found in the following sites will help you out:

33. ADVFN Forex Symbol Table — Comprehensive list of currencies. When you click on the currency symbol you’ll reach a page where that currency is represented through currency exchange rate tables and historical exchange rate charts.
34. ExchangeRate.com
— Try out the "hot" and "currency info" links that provide information about everything you’d want to know about worldwide currencies for 170 countries. Includes calculators, fun facts, serious facts, and more.
35. Go Currency — Reliable currency converter and money conversion service.
36. List of Currencies — This is an extensive list provided by Wikipedia that covers everything from ancient coinage to the current Yen. As with most Wikipedia lists, you might run across a link or two that doesn’t contain information. But, you can use that information to search elsewhere if needed.
37. Oanda
— Excellent set of currency converter tools from historical currency exchange rates for over 164 currencies to traveler’s cheat sheets to customizable products. Visit their detailed currency converter FAQ page if you have questions.
38. X-Rates — More than a currency list or a converter, this site will bring you up-to-date on every bit of information you’d need to know as a forex trader.
39. XE.com — A basic currency converter backed up by other tools on this site, such as current and historic rate tables and a free email currency update service.

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Directories & Portals

The following resources offer choices beyond the ones listed here. Since forex is a booming individual trader industry, expect to find new sites popping up weekly.

40. Forex Central
— You want it? They have most of it (blogs are missing). Resources aren’t rated.
41. Forex Directory
— This site is a little difficult to slug through, but worth it for the resources provided.
42. Pip Trader — This site contains a forum, live quotes and charts, news, reports, and a "mini-game" that has nothing to do with forex, but that might help you lighten up a bit.
43. Top 100 Forex Sites
— Although these sites are rated by popularity and, therefore, subject to rating scams, you can learn much from the sites that are listed simply from the variety of information that’s offered here. Many sites are brokerage firms, but as I mentioned previously you can find free information on many of these sites such as news, calculators, techniques, and more.

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Economic Calendars & Indicators

Economic calendars and indicators are vital tools for fundamental research. The sites below will give you simple and detailed options.

46. Economic Indicators
— A government site brought to you by the Economics and Statistics Administration at the US Department of Commerce. Their mission is to provide timely access to the daily releases of key economic indicators from the Bureau of Economic Analysis and the US Census Bureau.
47. Forex Economic Calendar
— What better place to find an excellent economic calendar than a site that focuses on this tool?
48. Global Forex Trading (GFT) — A detailed look into the next month’s international monetary future based on GMT.
49. InfoForex
— Brief overviews on various sectors from Auto and Truck Sales to a Monthly Wholesale Trade report based upon the US Census.

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Fibonacci & Candlesticks

Fibonacci and Japanese Candlestick charts may seem difficult, but with the right training you can master both technical strategies.

50. Fibonacci
— This is the home page for Dr. Ron Knott’s multimedia Web site on the Fibonacci numbers, the Golden section and the Golden string hosted by the Mathematics
Department of the University of Surrey, UK. Simple to use, easy to understand, and filled with illustrations to help you learn why some numbers are so important
to nature. These numbers are also of vast interest to many forex investors.
51. Fibonacci Forex Indicators — Forex Planet will begin to show you how to apply Fibs to forex in this easy-to-understand lesson. But, the lesson is short, so you might try the next resource as well.
52. Fibonacci Method in Forex charts — This lesson also applies to forex, and it offers a short tutorial on applications along with a downloadable Fib calculator.
53. Japanese Candlesticks — FX Words offers a simple and succinct explanation for candlesticks, including bullish and bearish patterns.
54. Japanese Candlesticks (Elliott Gann) — A comprehensive tutorial that covers all the basic terminology and explains each term with appropriate graphics, offered by the ElliottGann site.
55. Japanese Candlestick Trading Forum — It costs to become a member, but you can access all the candlestick basics for free on this site.

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Forecasts and Signals

The following resources use a mix of fundamental and technical analyses to formulate their prognoses:

56. AceTrader
— True 24 hours real-time analysis for up-to-the-minute recommendations and analysis.
57. e-Forex — Free trading signals. Dig into their historical records to understand their precision.
58. Forex Predictions
— Currently free daily and weekly high-low signals through the Web site and by email. This site is a division of RDC Bancorp, Inc., a foreign exchange services company.
59. Forex Signals — FinoTek provides signals and trends with charts. Check out their archived signals to determine credibility.
60. Investica Ltd.
— Online information and free e-newsletters filled with signals and forecasts.
61. Open Forex — Daily forecasts in real trade and analytical articles on forex basic currency pairs.

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Forums and Communities

62. Forex Factory
— You’ll find a Forex Beginner Q&A section as well as topics that focus on specific strategies and techniques.
63. Forex TSD — Go ahead and lurk in this forum until you feel comfortable. Then register for free to access the forum and a calendar. The paid "elite" subscription offers detailed statements of currently more than 20 trading systems.
64. Global View Forums
— Another free forum that’s been around since 1996.
65. MoneyTec — With over 33,000 members, this traders’ forum offers a format to discuss trading ideas, share, learn, and build new trading techniques and strategies.

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Fundamental Research

The following list contains comprehensive information about economic fundamentals for your research:

66. Bureau of Economic Analysis
(BEA) — Get the straight stuff from the US Department of Commerce like the pros. Everyone from the White House staff to US Trade Commission employees to trade policy officials who want to negotiate international trade agreements use the measurements contained on the BEA Web site.
67. Consumer Price Index
(CPI) — The US Department of Labor offers a ton of information just on this page alone through their links.
68. Forex Daily Fundamentals — XpressTrade offers a daily focus on forex fundamentals.
69. The Bank for International Settlements (BIS) – An international organization which fosters international monetary and financial cooperation and serves as a bank for central banks. As such, this organization offers valuable information through their publications and research as well as through many other resources offered on this site. They also maintain a list of Central Bank Web sites.
70. The Fundamentals of Forex — Forex TV brings you the lowdown on what type of news would affect forex from a fundamental standpoint. You can use the information on this list to conduct further research.

Glossaries

71. Forex Glossary
— The only drawback to this glossary is that the "A-Z" tab doesn’t include a total listing of all the terms under the single-letter tabs. Comprehensive.
72. Forex.com Glossary
— An at-a-glance glossary contained on one page.
73. Glossary of Forex Terms [PDF] — This printable file, offered by FX International Group, contains all the basics.

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Government Regulation

74. Australian Securities and Investments Commission (ASIC) — The ASIC’s regulatory coverage includes the forex market. Use their search box to learn more about their reach and responsibility.
75. Commodities Futures Trading Commission
(CFTC) — The CFTC operates along the same lines as the SEC
(Securities and Exchange Commission), except this government organization focuses on protecting market users and the public from fraud in the futures and option markets. So keep this site handy to stay on top of any forex scams through their Consumer Advisory on Forex Fraud. You can learn quickly what to avoid in your learning curve through a detailed forex advisory that offers information about other resources as well.
76. Financial Services Authority
(FSA) — An independent non-governmental body located in the UK, given statutory powers by the Financial Services and Markets Act 2000. Use their search box to locate information about the UK forex market and regulations.
77. National Futures Association
(NFA) — The NFA is "the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets," which basically means that this organization regulates any market that depends upon future cash flows. The "investor information" section contains materials about how to find a broker and basic lessons in forex trading. Plus, they publish forex warnings, news, and they offer a place for investor disputes and complaints.

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Market Reports

78. KBC
[PDF] — A Comprehensive "Morning Report" from this Belgian foreign exchange bank (in English).
79. Mellon
— FX Daily report from Mellon Financial Corporation, with links to American and European editions and past issues.
80. SaxoBank
— Daily market update from this foreign exchange service in London.
81. Scotia Capital [PDF] — Daily report with corresponding links for further reading from this Canadian foreign exchange bank.
82. UBS
— Daily summary for forex markets sponsored by this Swiss foreign exchange bank.

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Nonprofit Associations

83. Australian Technical Analysts Association (ATAA) — A non-profit association of both professional technical analysts and anyone who uses technical analysis for private investing, trading or advising.
84. International Compliance Association
(ICA) — The ICA is a professional organization dedicated to the furtherance of best compliance and anti money laundering practice in the financial services sector.
85. The Financial Markets Association (ACI) — ACI has the largest membership of any of the international associations in the wholesale financial markets. The Head Office is based in Paris.

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Practice

Some of the best demonstration tools are owned by forex brokerages. The following were chosen for their reliability and popularity. Be aware that some brokerages will request your permission to be contacted by mail, phone, or email. In some cases you might want this contact, as they will provide support for your training. In all cases you can walk away if their training and trading platforms don’t turn you on.

86. CMS Forex — Customize your practice with unlimited funds on CMS Forex’s VT Trader 1.8.5.1, a program that includes an API so that you can customize your solution. This software offers a point-and-click open and close positions directly on the chart. Access over 100 indicators, Reuters Forex related news and market analytics, and an "autopilot" feature. You can reach their customer support team by phone, live chat, or e-mail.
87. Forex Trading USA — Free 30-day demo with a Mini ($2,000 virtual cash, 200:1 leverage, 10k lot size) or Standard ($25,000 virtual cash, 100:1 leverage, 100k lot size). Their free education is a nice plus.
88. FXSolutions
— Use $10,000 in practice funds with full access to FXSol’s new charting solution, FX AccuCharts. Backed by 24/7 customer service.
89. Global Forex Trading
— Download their DealBook 360 to practice forex trading with live, dealable prices, real-time data, and free real-time breaking world and financial news. The software features forex charts, more than 85 technical indicators (for standard size GFT trading accounts) and the ability to build your own indicators. You have a choice about the amount of beginning funds, from $2,500 to $50,000.

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Real-Time Quotes

90. ACM
— Pick pairs and watch the quotes. ACM includes a manual [PDF] that explains in detail how to manipulate the chart to your liking. Must have Java plugin.
91. Forex Trading Charts
— Real-time forex quotes. This site also contains real-time forex charting tools with editable indicators.
92. FXQuote
— Scroll down the page, as the real-time quotes are located at bottom left. Based upon ET.
93. Live Forex Quotes — You might recognize the GFT logo behind the rates, but don’t let that distract you from the constantly changing figures. If you’re addicted to live feeds, you’ll be mesmerized by the constantly changing currency rates on this chart.
94. SaxoBank
— Scroll down the page a bit, as the quotes are located at the bottom left on this page, based upon GMT.

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Technical Indicators

The following three resources offer the most succinct information about technical overlays and indicators. You can find many more resources at some of the sites previously listed under the Beginner’s section, under many of the Blogs & News resources, and at various brokerages.

95. Forex-Business Technical Indicators — Where the other two sites offer great technical indicator explanations, this site offers 10 charts that illustrate some of those terms.
96. IQ Chart
— This company offers a list of technical overlays and indicators with short and easy-to-understand explanations. Take a look at their chart patterns while at this site, as this company is a provider of stock charting software to individual investors and technical analysts.
97. Technical Indicators — Definitions provided by MetaQuotes Software.

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X-Tras

98. IFXTAG — The International Forex Traders Affinity Group provides individual investors access to products and services that are evaluated by top professionals and their members. IFXTAG is committed to harnessing the potential to make electronic trading work for their global community of subscribers. Membership is free, but the resources are not. Members, however, do receive free trials and discounts to various services.
99. Traders Press, Inc.
— An online bookstore specifically for traders.

Pound, Dollar are ‘Sick’ Currencies

2009-10-12T10:14:00.000-07:00

A theme in forex markets (as well as on the Forex Blog) is that as the Dollar has declined, virtually every other asset/currency has risen. The rationale for this phenomenon is that the global economic recovery is boosting risk appetite, such that investors are now comfortable looking outside the US for yield. However, this market snapshot may have to be tweaked slightly, in accordance with a recent WSJ article (Sterling Looks Ready to Join the Sick List).

According to the report, “Similar to how investors sorted good banks from bad banks earlier this year, foreign-exchange buyers are starting to sort strong currencies from weaker currencies. The pound appears to be joining the dollar in the weak camp. Both countries have near-zero interest-rate targets, an aggressive policy aimed at boosting the economy, and yawning deficits.” In contrast, the article continues, the Yen and the Euro have risen, as have so-called commodity currencies.

Euros

While there’s no question that British economic and forex fundamentals are abysmal, it’s a bit hard to understand why the markets are picking on the Pound now. After all, the Euro, Swiss Franc, and Yen, for example, are plagued by some of the same fundamental problems: growing national debt, sluggish growth, low interest rates, etc. Investors can borrow in Yen nearly as cheaply as they can borrow in Dollars or Pounds, and the Bank of Japan is likely to keep rates low at least as long as the Bank of England (BOE), if not longer. Meanwhile, price inflation remains practically non-existent, which means that any capital that investors stash in the UK should be safe.

Perhaps, then, investors are zeroing in on the BOE’s Quantitative Easing program, which is the point of greatest overlap with the US Dollar. Relative to GDP, both currencies’ Central Banks have spent by far the most of any industrialized countries, in pumping newly printed money into credit markets. The BOE, in particular, is actually thinking about expanding its program. At a recent meeting, Mervyn King, Chairman of the Bank, led the opposition in voting for a 15% expansion, but was voted down by a majority of the bank’s other members. “The ‘next decision point‘ will be the Nov. 5 meeting,” said a former Deputy Governor of the Bank, at which point “Bank of England policy makers will consider expanding their bond purchase plan….on concern the economy’s recovery may be a ‘false dawn.’ ”

BOE Quantitative Easing (QE) Timeline Chart

The government meanwhile has demonstrated a certain ambivalence when it comes to the program. The head of the UK Debt Management Office indirectly encouraged the BOE to continues its purchases of bonds, for fear that stopping doing so could cause yields to skyrocket and make it difficult for the government to fund its activities. “A rapid sell-off could create a downward spiral of gilt prices which would make life harder for both it and the DMO.” On the other hand, one of the leaders of Britain’s conservative party – which is projected to take office after next year’s elections – has criticized the program on the grounds that it will lead to inflation.

From the BOE’s standpoint, it’s a no-win situation. Continue the policy, and you risk inflation and further invoking the ire of politicians. Wind it down, and you could tip the economy back into recession. For better or worse, it seems the BOE will err on the side of the former: “If we stopped supporting the economy now it would crash. Every country in the world and just about every informed commentator is saying the same thing. The job is not finished.” Given that inflation is projected to hover around 0% for the next two years, the BOE still has some breathing room.

As for the charge that the surfeit of cash flowing into markets is weakening the Pound, ‘So be it,’ seems to be the attitude of Mervn King who suggested that, “The weaker pound was ‘helpful’ to efforts to rebalance the British economy toward exports.” While he backtracked afterward, it still stands that the BOE hasn’t made any efforts to stem the decline of the Pound, and is at best indifferent towards it.

Regardless of where the BOE stands, the Pound is not being helped by the weak financial and housing sectors, which during the bubble years, comprised the biggest contribution to UK growth. Exports are weak, and domestic manufacturing activity has yet to stabilize. As a result, “The British economy will contract 4.4 percent this year before expanding 0.9 percent in 2010, the International Monetary Fund predicts.”

Objectively speaking, then, it makes sense to call the Pound sick. Still, many other currencies are just as sick. I guess the perennial lesson is that in forex, everything is relative.
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Posted by Adam Kritzer | in British Pound, Central Banks | No Comments »
October 9th 2009
Interview with Howard Lindzon: “I am Optimistic About Forex”

Today we bring you an interview with hedge fund manager Howard Lindzon, author of The WallSTRiP Edge and co-founder/CEO of StockTwits. Below, Howard discusses his interest in currency trading, as well as his general approach to investing.

Forex Blog: As a forex blogger, I am eager to hear how and why you developed a sudden interest in forex.

It is not a sudden interest in forex. For years, I had money with trend following managers and slowly saw the way people traded currencies. My new fascination comes from all the people on stocktwits talking currencies at odd hours :)

Forex Blog: Does your primary interest lie in currencies, themselves, or rather in the people that trade them? In other words, is it your intention to invest directly in currencies or instead to identify companies that successfully market services to currency traders? Perhaps a combination of both?

I own the Canadian Dollar right now and also gold so my fascination is in the way different things move different markets. Currencies move from macro policies and they seem to trend better. For me, It’s now a combination of both. I am learning to get a feel for currencies as I hear individuals on stocktwits actually talk about them.

Forex Blog: While it’s true that forex remains off the radar screen of many retail investors, I must point out that it’s already by the far the largest market in the world, with an estimated $4 Trillion in daily turnover. In spite of this, it seems you’re still quite optimistic about its prospects for growth?

I am optimistic because of many trends. The online brokers are way behind and must catch up. The forex brokers are way behind and see the retail consumer as a growth market and there seems to be chaos so it should be interesting which new winners emerge.

The world has indeed flattened and shrunk and currencies should be a more exciting topic as governments collide more often.

Forex Blog: Are there specific currencies that you are interested in, and/or that you believe are currently undervalued?

It is really exciting to watch the action in the dollar. I try to see the big picture. We are printing money and our policies are not changing. it seems the us government wants a cheaper dollar which would be fine, but they are also manufacturing it, so I don;t think it will work out well for it. I just don’t have a timeframe.

Forex Blog: As some of your readers pointed out, the forex market is currently saturated with fraud. New regulation is expected to clamp down on unethical business practices, but could also lower the appeal of forex by cutting leverage from 200:1 to levels associated with trading stocks retail. How will changes in regulation factor into your investment approach?

The regulation on our little community comes from the community itself. If I am learning, I think I can get others excited about learning…if not to trade, than to see how the currencies and government policies affect stock prices and other markets. I try not to worry about regulation…my size also keeps me out of the stress of it as I am too small.

Forex Blog: Shifting gears a bit, why did you decide to found/back StockTwits, a self-described “community-powered idea and information service for investments?”

I founded stocktwits to help me better track my ideas from a trusted source of friends. It’s about getting the info i want, when I want it, on any device, from the group I want it from. All that has happened is that thousands of others want info the same way. With the new filters and discovery features of twitter and now stocktwits, the speed to knowledge is faster than ever and its fun.

Forex Blog: How would summarize the growing appeal of StockTwits to its users? In other words, how does StockTwits (intend to) distinguish itself from the hundreds of other popular forums and message boards dedicated to the art of investing?

Community is the real differentiator. Every community is different. Ours just has some pretty cool features in it and i love the context our ticker has and the breadth of knowledge. I also believe in the ‘farm system’ of distributed talent and having an expert pop up out of nowhere and get rushed to the top. It’s like…oh my god…we need a doctor…BOOM, thousands of people are asking around for a doctor and then you get one right away. It’s social leverage at work.

Forex Blog: If StockTwits expanded to the point where user comments/activity influenced asset prices (as happens occasionally with RagingBull and Jim Cramer’s Mad Money), would you view this is as a positive or negative development?

If we move markets, that’s good; it’s an evolution. I doubt we will and if we do, I am hopeful it is for the right reasons and we will do everything within our power to nudge the community in the win/win, do the right thing way. We are going to be wrong all the time too so moving the market is not something people should be worried about.

Forex Blog: Finally, what advice to you have for investors that want to beat the market (any market, really) during the credit crisis?

I have never routinely beat the market. I invest heavily and with a long term time frame when I feel I have an edge. I want to beat the market not daily, weekly or yearly, but over decades. You need to pick the asset classes that jibe with your passion, thinking, energy, risk levels, liquidity needs and then passionately chase the returns.

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Posted by Adam Kritzer | in Interviews | 1 Comment »
October 6th 2009
Dollar’s Role as Reserve Currency in Jeopardy

I concluded my last post by promising to discuss the implications of a change in the status quo, regarding the Dollar’s role as the world’s reserve currency. As it turns out, the last few days have witnessed a few developments on this front.

Global Forex Reserves 1999-2009

First of all, the G7 concluded its latest round of talks. Despite previous indications to the contrary, the organization continued its practice of releasing a communique. in which it noted that global economic balances persist and that policymakers should work together to mitigate them. While seemingly benign and desirable, the proposition couldn’t have come at a worse time for the Dollar.

The only reason why the Dollar hasn’t collapsed completely is because economies largely continue to recycle their surplus wealth and trade surpluses back into Dollar-denominated assets. One columnist connects the dots with regard to the forex implications: “Less Chinese intervention to prevent yuan strength would mean China, slowly over time, would build up fewer dollar reserves.” In other words, economies no longer concerned with pegging their currencies would have very little reason to build up large pools of reserves.

In fact, China is fully on board with this notion. Following the G7 talks, Chinese officials announced that it would support a stronger Yuan as soon as the global economic crisis resolved itself. By its own reckoning, this would facilitate a shift in its economy, from one dependent on exports for growth to one focused around domestic consumption. Still, obstacles remain, and “It is far from clear how China can engineer a shift up for the yuan against the dollar, which analysts note would almost certainly translate into a gain against other currencies as well.”

Speaking of China, it is also among the most vocal of nations laboring for alternatives to the Dollar. Towards this end, it has reportedly formed a secret coalition with the other BRIC countries (Brazil, India, and Russia), as well as Japan. The goal is to end the pricing of oil in Dollars by 2018. That the group has given itself nine years to complete this task speaks to its extraordinary ambition.

The implications for the Dollar cannot be understated. A handful of oil-producing nations in the Middle East hold a combined $2.1 Trillion in Dollars, which are solely a product of selling oil in exchange for Dollars. Already, the government of Iran has mandated that in the future, all of its reserves be held in non-Dollar-denominated assets. Thus far, no other countries have followed suit. China is aware that pushing for further developments could roil the US, which would be unlikely to sit on the sidelines and watch its currency be summarily jettisoned. “Sun Bigan, China’s former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East.”

Robert Zoellick, president of the World Bank, doesn’t harbor any illusions, and announced during a recent speech that the a decline in the role of the Dollar is inevitable. “He said the United States ‘would be mistaken to take for granted the dollar’s place as the world’s predominant currency. Looking forward there will increasingly be other options to the dollar,’ ” such as the Chinese Yuan and the Euro.

Zoellick’s warnings were prescient, when you consider that the IMF just announced that the share of Dollars in global foreign exchange reserves declined significantly in the most recent quarter, perhaps to its lowest share since the Euro was introduced in 1999. [The latter, however, has yet to be confirmed]. “The dollar’s share in global reserves declined to 62.8% from 65.0%…The euro’s share increased to 27.5% from 25.9%.”

Global allocation of Forex Reserves 1999-2009
JP Morgan’s research team has discovered a similar trend- that accumulation of US assets accounts for only half of the global increase in global forex reserves. “Quantifying this trend is always imprecise. But the circumstantial evidence — official buying of U.S. assets runs at only half of the pace of global reserve accumulation — suggests that diversification has accelerated since June.”

So, there you have it. The Dollar’s demise (to borrow a characterization by one of the columnists featured in this post) is no longer theoretical. It may have already begun…

Forex Market Update

2009-10-12T10:08:00.000-07:00

The meltdown of the three FX stooges: USD, JPY and GBP, continues, as equities notch new highs.

Banking Holiday in Canada and United States today - though US equity markets will be open.

MAJOR HEADLINES – PREVIOUS SESSION

New Zealand Sep. QV House Prices fell -1.1% YoY vs. -2.8% in Aug.
Germany Sep. Wholesale Price Index fell -0.2% MoM vs. +0.3% expected
Sweden Sep. AMV Unemployment Rate out at 5.3% vs. 5.4% expected and 5.5% in Aug.

THEMES TO WATCH – UPCOMING SESSION

(All times GMT)

US National Economic Council's Summers to Speak (1615)
US Treasury's Krueger to Speak (1715)
New Zealand Retail Sales (2145)
UK Sep. BRC Retail Sales Monitor (2301)
UK Sep. RICS House Price Balance (2301)
Australia Sep. NAB Business Conditions (0030)

Market Comments:

The USD meltdown continued this week after a brief respite on Friday after Bernanke threw out a snippet of rhetoric suggesting that rate. With equities jumping higher again in the Asian and European sessions today, the greenback and its low yielding fellow travelers, the pound sterling and Japanese Yen, didn't stand a chance, and all three weakened again versus the high flying Loonie especially, which continues to find support from the shockingly strong Canadian employment report from Friday. Crude oil tacking on to recent gains fueled further gains for the currency, and likely also helped NOK notch new highs vs. the Euro in Asia before backing off in the European session today.

Today is one of those odd "half holidays" in the US in which banks - and therefore the treasury market - are closed for the day, while equity markets will be open for business.

Reserve accumulating central banks are the primus motor of the moves in currencies here, as US and UK policies are seeing major banks shun the fiscally hopeless and low yielding currencies and diversifying especially into Euros, and the Yen to a lesser extent. A Bloomberg article this morning cites Barclay's Capital tally of the latest quarter's accumulation of FX reserves at over $400 billion. Barclay's also estimates that 63% of new reserves are being funneled into Euros and Yen. This was for the quarter ending in June, and there is certainly no sign of a change of behavior since then, in fact, the trend only seems to have strengthened. If the Chinese economy is doing so well, we ask again, then why have they not signaled that it is time to allow the renminbi to begin appreciating again? And while Europe has begun to complain about the unfair strengthening of its currency, why have the complaints not been more belligerent?

With the current persistent trends very clear and powerful, we have a look at coincident indicators and any event risks on the horizon that might provide a pivot point in the action. On the former, the strength in the Aussie, to take an example, is outpacing differentials in interest rates and is beginning to feel overdone, particularly as the last leg of Aussie appreciation has shown an acceleration in an already very well established trend. Usually, such aggravated action cannot be sustained for long, so we might expect sideways consolidation at minimum soon. Speculative positioning suggests that long Aussie positions have been crowded for some time, as well. In the case of CAD, the recent data surprise triggered moves in interest rates that fully justify the latest strengthening. And the over-riding theme of high risk appetite feeding the weaker USD will continue as long as equity markets are rallying.

As for upcoming event risks, the most interesting items on the calendar this week are Wednesday's US Advance Retail Sales and US FOMC minutes. The former is very important for measuring the strength of end demand, as our outlook suggests that end demand will not bounce back enough to provide a strong recovery due to private balance sheet deleveraging and weak wage growth. The FOMC minutes could be interesting due to the continued signs of a divided Fed, so we'll look for signs of the split widening or the hawks' impatience growing. Thursday's jobless claims number will be important for showing whether the trend toward fewer jobless claims continues now that we have entered the seasonally most important part of the year for employment. (Still interesting that more claims were filed last week than for the same week last year, just to show how much further we need to go to get real improvement rather than "less badness"). Then on Thursday we have the first two of the regional US manufacturing surveys.

Chart: GBPUSD
GBPUSD managed to stave off new lows today below 1.5800 as GBP, USD and JPY fight for lowest spot on the currency totem pole. Today's low and the 1.6110 area are the two key trigger areas for GBPUSD's next larger move now.

More analysis: Saxo Bank Market News & Analysis

Risk Warnings:

Saxo Bank A/S shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Saxo Bank that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.

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David Karsbøl

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David Karsbøl holds a Master of Science degree (Economics) from the University of Copenhagen and has previously been employed as an insurance analyst. Mr Karsbøl works with fundamental analysis and research and contributes to Saxo Bank's strategy products. He also develops and maintains macroeconomic models and a number of trading models, which are designed to profit from co-variations between the Forex and fixed income markets. Mr Karsbøl is regularly appears on major financial news networks and comments several days a week on the financial markets via Saxo Bank's live Market Call webcast. He is a native Danish speaker and is fluent in English.

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Asset Management, Saxo Bank

John Hardy publishes daily comments on the Forex market. Mr Hardy's analysis attempts to overlay short term technical developments and fundamental event risks with longer term themes and trends in the G-10 currencies. Mr Hardy considers inter-market correlations as paramount in understanding moves in the Forex space, so the analysis draws on a number of models based on other markets and gauges their correlation with Forex markets in an attempt to detect inefficiencies that may provide trading opportunities.

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Economic calendar for week 41 from 11 Oct. 09 to 16 Oct. 09

Date	GMT	Release for	Period	Consensus	Prior
11 Oct. 09	23:00	Fed's Bullard Speaks to Economists Group Meeting in St. Louis (United States of America )	11-Oct
12 Oct. 09	00:00	Construction Works Index (Portugal )	AUG	- -	88.4
12 Oct. 09	00:00	Chinese Vice President Xi Jinping Visits Frankfurt Book Fair (Germany)	OCT 12
12 Oct. 09	00:00	Merkel Speaks at Frankfurt Book Fair (Germany)	OCT 12
12 Oct. 09	00:00	Estonia Monthly Current Account (Estonia )	AUG	- -	1.2B
12 Oct. 09	00:00	Current Account (Turkey )	AUG	-0.2B	0.3B
12 Oct. 09	06:00	Wholesale Price Index (MoM) (Germany)	SEP	- -	0.70%
12 Oct. 09	06:00	Wholesale price Index (YoY) (Germany)	SEP	- -	-8.30%
12 Oct. 09	06:00	Exports (YoY) (Estonia )	AUG P	- -	- -
12 Oct. 09	06:00	Imports (YoY) (Estonia )	AUG P	- -	- -
12 Oct. 09	06:00	Trade Balance (Estonia )	AUG P	- -	- -
12 Oct. 09	06:00	Ahlers Releases Third-Quarter Results (Germany)	OCT 12
12 Oct. 09	06:45	EU's Almunia, Columbia's Stiglitz at Banking-Regulation Forum (European Union)	OCT 12
12 Oct. 09	07:00	Industrial Output (YoY) (Czech Republic )	AUG F	- -	-8.10%
12 Oct. 09	07:00	Construction Output (YoY) (Czech Republic )	AUG	- -	-4.40%
12 Oct. 09	07:00	Trade Balance (Mln Euros) (Romania )	AUG	- -	-487.4
12 Oct. 09	07:00	Consumer Prices (MoM) (Romania )	SEP	0.20%	-0.20%
12 Oct. 09	07:00	Consumer Prices (YoY) (Romania )	SEP	4.90%	5.00%
12 Oct. 09	07:00	Capacity Utilization (Turkey )	SEP	72.30%	69.70%
12 Oct. 09	07:30	CPI (MoM) (Germany)	SEP	- -	0.30%
12 Oct. 09	07:30	CPI (YoY) (Germany)	SEP	- -	1.10%
12 Oct. 09	07:30	CPI - EU Harmonized (MoM) (Germany)	SEP	- -	0.30%
12 Oct. 09	07:30	CPI - EU Harmonized (YoY) (Germany)	SEP	- -	0.70%
12 Oct. 09	07:30	Adisconsum Holds Conference on Idebtedness of Italian Families (Italy )	OCT 12
12 Oct. 09	07:30	EU Court Hears Arguments in Eni, Dow, Shell Appeals of Cartel (European Union)	OCT 12
12 Oct. 09	08:00	AMV Unemployment Rate (Sweden )	SEP	- -	5.40%
12 Oct. 09	08:00	Current Account Monthly (CZK) (Czech Republic )	AUG	-11.00B	-3.06B
12 Oct. 09	08:30	Tiscali Holds Roadshow on Capital Increase (Italy )	OCT 12
12 Oct. 09	10:00	Latvia Current Account (Latvia )	AUG	- -	61.6M
12 Oct. 09	10:00	Trade Balance (Latvia )	AUG	- -	-95.7M
12 Oct. 09	10:15	EU's Ferrero-Waldner Speaks at Think Tank (European Union)	OCT 12
12 Oct. 09	12:00	Unemployment Rate (Iceland )	SEP	- -	7.70%
12 Oct. 09	12:00	Current Account (Euro) (Poland )	AUG	28	-565
12 Oct. 09	12:00	Balance (Euro) (Poland )	AUG	-224	-551
12 Oct. 09	12:00	Exports (Euro) (Poland )	AUG	8020	8209
12 Oct. 09	12:00	Imports (Euro) (Poland )	AUG	8285	8760
12 Oct. 09	12:45	Merkel Meets Chinese Vice President Xi in Berlin (Germany)	OCT 12
12 Oct. 09	16:15	NEC's Summers Speaks to Economists Group Meeting in St. Louis (United States of America )	OCT 12
12 Oct. 09	17:15	Treasury's Krueger Speaks to Economists in St. Louis (United States of America )	OCT 12
12 Oct. 09	23:01	BRC September Retail Sales Monitor (United Kingdom )	OCT 12
12 Oct. 09	23:01	RICS House Price Balance (United Kingdom )	SEP	15.00%	10.70%
12 Oct. 09	23:50	Bank Lending (YoY) (Japan )	SEP	1.70%	1.80%
12 Oct. 09	23:50	Bank Lending Banks YoY (Japan )	SEP	- -	1.90%
12 Oct. 09	23:50	Bank Lending Banks Adjust YoY (Japan )	SEP	- -	2.50%
12 Oct. 09	23:50	Japan Money Stock M2 YoY (Japan )	SEP	2.90%	2.80%
12 Oct. 09	23:50	Japan Money Stock M3 YoY (Japan )	SEP	2.10%	2.00%
13 Oct. 09	00:00	Current Account (EUR)(YTD) (Romania )	AUG	- -	-2717M
13 Oct. 09	00:00	Consumer Price Index (MoM) (Portugal )	SEP	- -	-0.30%
13 Oct. 09	00:00	Consumer Price Index (YoY) (Portugal )	SEP	- -	-1.30%
13 Oct. 09	00:00	CPI - EU Harmonised (MoM) (Portugal )	SEP	- -	-0.20%
13 Oct. 09	00:00	CPI - EU Harmonised (YoY) (Portugal )	SEP	- -	-1.20%
13 Oct. 09	00:00	Bank of Italy Releases Aug. Public Finance Supplement (Italy )	OCT 13
13 Oct. 09	04:00	BoJ Monetary Policy Meeting (Japan )	OCT 13
13 Oct. 09	05:00	Fraport Releases Monthly Traffic Figures (Germany)	OCT 13
13 Oct. 09	06:45	Consumer Price Index (MoM) (France )	SEP	-0.10%	0.50%
13 Oct. 09	06:45	Current Account (EURO) (France )	AUG	- -	-1.2B
13 Oct. 09	06:45	Consumer Price Index (YoY) (France )	SEP	-0.20%	-0.20%
13 Oct. 09	06:45	CPI - EU Harmonised (MoM) (France )	SEP	0.00%	0.60%
13 Oct. 09	06:45	CPI - EU Harmonised (YoY) (France )	SEP	-0.30%	-0.20%
13 Oct. 09	06:45	CPI Ex Tobacco Index (France )	SEP	- -	118.41
13 Oct. 09	07:00	House transactions YoY (Spain )	AUG	- -	-20.30%
13 Oct. 09	07:00	Consumer Prices (MoM) (Hungary )	SEP	0.20%	-0.30%
13 Oct. 09	07:00	Consumer Prices (YoY) (Hungary )	SEP	5.30%	5.00%
13 Oct. 09	07:15	Producer & Import Prices (MoM) (Switzerland )	SEP	0.10%	0.10%
13 Oct. 09	07:15	Producer & Import Prices (YoY) (Switzerland )	SEP	-4.80%	-5.50%
13 Oct. 09	07:30	Industrial Production sa (MoM) (Netherlands )	AUG	0.30%	0.40%
13 Oct. 09	07:30	Trade Balance (Netherlands )	AUG	- -	3.2B
13 Oct. 09	07:30	Industrial Production nsa (YoY) (Netherlands )	AUG	-9.20%	-10.30%
13 Oct. 09	07:30	Industrial Sales nsa (YoY) (Netherlands )	AUG	- -	-24.10%
13 Oct. 09	07:30	CPI - Headline Rate (MoM) (Sweden )	SEP	0.60%	0.20%
13 Oct. 09	07:30	CPI - Headline Rate (YoY) (Sweden )	SEP	-1.30%	-0.80%
13 Oct. 09	07:30	SW CPI - CPIF (MoM) (Sweden )	SEP	- -	0.20%
13 Oct. 09	07:30	SW CPI - CPIF (YoY) (Sweden )	SEP	- -	1.90%
13 Oct. 09	07:30	CPI Level (Sweden )	SEP	- -	299.42
13 Oct. 09	08:30	CPI (MoM) (United Kingdom )	SEP	0.20%	0.40%
13 Oct. 09	08:30	CPI (YoY) (United Kingdom )	SEP	1.30%	1.60%
13 Oct. 09	08:30	Core CPI YOY (United Kingdom )	SEP	1.70%	1.80%
13 Oct. 09	08:30	Retail Price Index (United Kingdom )	SEP	- -	214.4
13 Oct. 09	08:30	RPI (MoM) (United Kingdom )	SEP	0.30%	0.50%
13 Oct. 09	08:30	RPI (YoY) (United Kingdom )	SEP	-1.50%	-1.30%
13 Oct. 09	08:30	RPI Ex Mort Int.Payments (YoY) (United Kingdom )	SEP	1.20%	1.40%
13 Oct. 09	08:30	DCLG UK House Prices (YoY) (United Kingdom )	AUG	- -	-8.30%
13 Oct. 09	08:30	Bank of England's Saporta to Make Speech at BBA Conference (United Kingdom )	OCT 13
13 Oct. 09	09:00	ZEW Survey (Econ. Sentiment) (European Union)	OCT	- -	59.6
13 Oct. 09	09:00	Zew Survey (Current Situation) (Germany)	OCT	-68.3	-74
13 Oct. 09	09:00	ECB's Tumpel-Gugerell Speaks in Brussels (Belgium )	OCT 13
13 Oct. 09	12:30	White House's Romer Speaks to Economists Meeting in St. Louis (United States of America )	13-Oct
13 Oct. 09	12:30	Int'l Merchandise Trade (Canada )	AUG	- -	-1.4B
13 Oct. 09	12:30	New Housing Price Index MoM (Canada )	AUG	0.20%	0.30%
13 Oct. 09	12:30	White House's Romer Speaks to Economists in St. Louis (United States of America )	OCT 13
13 Oct. 09	13:00	Bank of England's Bean to Make Speech (United Kingdom )	OCT 13
13 Oct. 09	14:00	IBD/TIPP Economic Optimism (United States of America )	OCT	- -	52.5
13 Oct. 09	15:45	Audika Publishes Third-Quarter Sales Figures (France )	OCT 13
13 Oct. 09	15:45	MaRS Innovation CEO Raphael Hofstein Speaks in Toronto (Canada )	OCT 13
13 Oct. 09	17:00	Fed's Kohn Speaks to Economists in St. Louis (United States of America )	13-Oct
13 Oct. 09	17:15	New York Fed's Dudley Speaks to International Bankers in NYC (United States of America )	OCT 13
13 Oct. 09	17:45	Fed's Kohn Speaks on Economic Outlook in St. Louis (United States of America )	OCT 13
13 Oct. 09	21:00	ABC Consumer Confidence (United States of America )	OCT 11	- -	-45
13 Oct. 09	23:50	Domestic CGPI (MoM) (Japan )	SEP	0.10%	0.00%
13 Oct. 09	23:50	Domestic CGPI (YoY) (Japan )	SEP	-7.90%	-8.50%
14 Oct. 09	00:00	Money Supply (M0) (Level) (Latvia )	SEP	- -	1573.3M
14 Oct. 09	00:00	Weekly CPI (WoW) (Russian Federation )	OCT 12	- -	0.00%
14 Oct. 09	00:00	Weekly CPI Year-to-Date (Russian Federation )	OCT 12	- -	8.10%
14 Oct. 09	00:00	Westpac Consumer Confidence (Australia )	OCT	- -	5.20%
14 Oct. 09	00:00	BOJ Target Rate (Japan )	OCT 14	0.10%	0.10%
14 Oct. 09	00:00	Trade Balance (USD) (China )	SEP	- -	$15.70B
14 Oct. 09	00:00	Exports YoY% (China )	SEP	- -	-23.40%
14 Oct. 09	00:00	Imports YoY% (China )	SEP	- -	-17.00%
14 Oct. 09	00:00	Unemployment Rate (Monthly) (Greece )	JUL	8.50%	8.60%
14 Oct. 09	04:00	Tokyo Condominium Sales (YoY) (Japan )	SEP	- -	-6.20%
14 Oct. 09	05:00	Consumer Confidence (Japan )	SEP	41.3	40.4
14 Oct. 09	05:00	Consumer Confidence Households (Japan )	SEP	- -	40.1
14 Oct. 09	05:00	Lafarge Shareholders Meeting (France )	OCT 14
14 Oct. 09	06:00	CPI (MoM) (Finland )	SEP	- -	0.30%
14 Oct. 09	06:00	CPI (YoY) (Finland )	SEP	- -	-0.70%
14 Oct. 09	07:00	Consumer Price Index (MoM) (Spain )	SEP	-0.30%	0.30%
14 Oct. 09	07:00	Consumer Price Index (YoY) (Spain )	SEP	-1.00%	-0.80%
14 Oct. 09	07:00	CPI (Core Index) (MoM) (Spain )	SEP	- -	0.10%
14 Oct. 09	07:00	CPI (Core Index) (YoY) (Spain )	SEP	- -	0.40%
14 Oct. 09	07:00	CPI (EU Harmonised) (MoM) (Spain )	SEP	-0.20%	0.40%
14 Oct. 09	07:00	CPI (EU Harmonised) (YoY) (Spain )	SEP F	-1.00%	-1.00%
14 Oct. 09	07:00	Retail Sales (YoY) (Czech Republic )	AUG	-3.10%	-4.90%
14 Oct. 09	07:00	Industrial Output (YoY) (Hungary )	AUG F	- -	-19.90%
14 Oct. 09	07:00	Industrial Output (MoM) (Hungary )	AUG F	- -	-0.70%
14 Oct. 09	07:30	Average House Prices (SEK) (Sweden )	SEP	- -	1.977M
14 Oct. 09	08:00	Existing Homes QoQ (Norway )	3Q	- -	5.30%
14 Oct. 09	08:30	Claimant Count Rate (United Kingdom )	SEP	5.10%	5.00%
14 Oct. 09	08:30	Jobless Claims Change (United Kingdom )	SEP	25.0K	24.4K
14 Oct. 09	08:30	Avg Earnings inc bonus 3M/YoY (United Kingdom )	AUG	1.40%	1.70%
14 Oct. 09	08:30	Avg Earnings ex bonus 3M/YoY (United Kingdom )	AUG	1.90%	2.20%
14 Oct. 09	08:30	ILO Unemployment Rate (3mths) (United Kingdom )	AUG	8.00%	7.90%
14 Oct. 09	08:30	Manu.Unit Wage Cost (3Ms/YoY) (United Kingdom )	AUG	- -	4.30%
14 Oct. 09	08:30	DIHK Industry & Trade Chambers Release Fall Economic Survey (Germany)	OCT 14
14 Oct. 09	09:00	Unemployment Rate (Iceland )	3Q	- -	9.10%
14 Oct. 09	09:00	Euro-Zone Ind. Prod. sa (MoM) (European Union)	AUG	0.80%	-0.30%
14 Oct. 09	09:00	Euro-Zone Ind. Prod. wda (YoY) (European Union)	AUG	-15.80%	-15.90%
14 Oct. 09	10:00	EU Issues Reports on Turkey, Croatia, Other Candidates (European Union)	OCT 14
14 Oct. 09	11:00	Bloomberg Global Confidence (United States of America )	OCT	- -	58.54
14 Oct. 09	11:00	MBA Mortgage Applications (United States of America )	OCT 9	- -	16.40%
14 Oct. 09	12:00	CPI (MoM) (Poland )	SEP	0.20%	-0.40%
14 Oct. 09	12:00	CPI (YoY) (Poland )	SEP	3.50%	3.70%
14 Oct. 09	12:00	Money Supply - M3 (Level) (Poland )	SEP	686450	686191
14 Oct. 09	12:00	Money Supply - M3 (MoM) (Poland )	SEP	-0.20%	-0.50%
14 Oct. 09	12:00	Chancellor Angela Merkel Joins Talks on Forming New Government (Germany)	OCT 14
14 Oct. 09	12:30	Import Price Index (MoM) (United States of America )	SEP	0.20%	2.00%
14 Oct. 09	12:30	Import Price Index (YoY) (United States of America )	SEP	-11.60%	-15.00%
14 Oct. 09	12:30	Advance Retail Sales (United States of America )	SEP	-2.10%	2.70%
14 Oct. 09	12:30	Retail Sales Less Autos (United States of America )	SEP	0.20%	1.10%
14 Oct. 09	12:30	Retail Sales Ex Auto & Gas (United States of America )	SEP	- -	0.60%
14 Oct. 09	12:30	New Motor Vehicle Sales MoM (Canada )	AUG	0.00%	5.30%
14 Oct. 09	13:00	Schaeuble Makes Security Statement in Potsdam (Germany)	OCT 14
14 Oct. 09	13:15	ECB's Bini Smaghi Speaks in Freiburg (Germany)	OCT 14
14 Oct. 09	14:00	Business Inventories (United States of America )	AUG	-0.80%	-1.00%
14 Oct. 09	18:00	Minutes of Sept. 23 FOMC Meeting (United States of America )	OCT 14
14 Oct. 09	18:00	Fed Releases Minutes from Sept. 22-23 FOMC Meeting (United States of America )	OCT 14
14 Oct. 09	18:30	Fed's Tarullo Testifies on Banking Industry at Senate Panel (United States of America )	OCT 14
14 Oct. 09	21:00	Toronto CFA Society Annual Forecast Dinner (Canada )	OCT 14
14 Oct. 09	21:45	Food Prices (MoM) (New Zealand )	SEP	- -	-0.90%
14 Oct. 09	21:45	Consumer Prices (QoQ) (New Zealand )	3Q	- -	0.60%
14 Oct. 09	21:45	Consumer Prices (YoY) (New Zealand )	3Q	- -	1.90%
14 Oct. 09	23:30	RBA Governor Stevens Speaks in Perth (Australia )	14-Oct
15 Oct. 09	00:00	Gold & Forex Reserve USD (Russian Federation )	OCT 9	- -	411.5B
15 Oct. 09	00:00	House Price Index QoQ (Spain )	3Q	- -	-1.90%
15 Oct. 09	00:00	House Price Index YoY (Spain )	3Q	- -	-8.20%
15 Oct. 09	00:00	Bank of Italy Releases Quarterly Economic Bulletin (Italy )	OCT 15
15 Oct. 09	00:00	Berlusconi Visits Bulgaria (Italy )	OCT 15
15 Oct. 09	01:00	Consumer Inflation Expectation (Australia )	OCT	- -	3.50%
15 Oct. 09	01:30	RBA Foreign Exchange Transactn (Australia )	SEP	- -	576M
15 Oct. 09	04:30	Industrial Production (MoM) (Japan )	AUG F	- -	1.80%
15 Oct. 09	04:30	Industrial Production YOY% (Japan )	AUG F	- -	-18.70%
15 Oct. 09	04:30	Capacity Utilization (MoM) (Japan )	AUG F	- -	3.90%
15 Oct. 09	05:00	BOJ Monthly Report (Japan )	OCT 15
15 Oct. 09	05:00	Remy Cointreau Publishes First-Half Sales Figures (France )	OCT 15
15 Oct. 09	05:00	Suedzucker Releases Second-Quarter Earnings (Germany)	OCT 15
15 Oct. 09	06:00	Finland Retail Sales Vo (Finland )	AUG F	- -	-3.90%
15 Oct. 09	06:00	ACEA European Carmakers Association Releases Monthly Sales (France )	OCT 15
15 Oct. 09	06:00	Total Publishes Refining Margins (France )	OCT 15
15 Oct. 09	06:00	ACEA European Carmakers Association Releases Monthly Car Sales (Germany)	OCT 15
15 Oct. 09	06:00	EU 25 New Car Registrations (European Union)	SEP	- -	3.30%
15 Oct. 09	07:00	Finland Current Account (EUR) (Finland )	AUG	- -	0.44B
15 Oct. 09	07:00	PPI (Industrial) (MoM) (Czech Republic )	SEP	-0.20%	0.20%
15 Oct. 09	07:00	PPI (Industrial) (YoY) (Czech Republic )	SEP	-5.20%	-5.10%
15 Oct. 09	07:00	Export Price Index (YoY) (Czech Republic )	AUG	- -	0.50%
15 Oct. 09	07:00	Import Price Index (YoY) (Czech Republic )	AUG	- -	-4.40%
15 Oct. 09	07:00	Unemployment Rate (Turkey )	JUL	13.00%	13.00%
15 Oct. 09	07:00	Rehn Speaks to EU Parliament Panel (European Union)	OCT 15
15 Oct. 09	07:30	Wholesale Prices (MoM) (Germany)	SEP	- -	0.60%
15 Oct. 09	07:30	Wholesale Prices (YoY) (Germany)	SEP	- -	-8.30%
15 Oct. 09	07:30	Retail Sales (YoY) (Netherlands )	AUG	-4.00%	-3.60%
15 Oct. 09	08:00	CPI (NIC incl. tobacco) (MoM) (Italy )	SEP F	-0.20%	-0.20%
15 Oct. 09	08:00	CPI (NIC incl. tobacco) (YoY) (Italy )	SEP F	0.20%	0.20%
15 Oct. 09	08:00	CPI - EU Harmonized (MoM) (Italy )	SEP F	0.60%	0.60%
15 Oct. 09	08:00	CPI - EU Harmonized (YoY) (Italy )	SEP F	0.30%	0.30%
15 Oct. 09	08:00	Consumer Price Index (YoY) (Austria )	SEP	- -	0.30%
15 Oct. 09	08:00	Consumer Price Index (MoM) (Austria )	SEP	- -	0.40%
15 Oct. 09	08:00	ECB Publishes Oct. Monthly Report (Text) (European Union)	OCT 15
15 Oct. 09	08:00	Trade Balance (Krone) (Norway )	SEP	- -	24.9B
15 Oct. 09	09:00	Euro-Zone CPI (MoM) (European Union)	SEP	0.10%	0.30%
15 Oct. 09	09:00	Euro-Zone CPI (YoY) (European Union)	SEP	-0.30%	-0.20%
15 Oct. 09	09:00	Euro-Zone CPI - Core (YoY) (European Union)	SEP	1.20%	1.30%
15 Oct. 09	09:00	ZEW Survey (Expectations) (Switzerland )	OCT	- -	58
15 Oct. 09	09:00	Germany's Leading Economic Institutes Present Joint Outlook (Germany)	OCT 15
15 Oct. 09	10:30	EU's Dimas, Sweden's Carlgren Discuss Climate-Change Policy (European Union)	OCT 15
15 Oct. 09	11:25	ECB's Trichet Speaks on 'Lessons From Crisis', Frankfurt (Germany)	OCT 15
15 Oct. 09	11:25	ECB's Trichet Speaks in Frankfurt (Germany)	OCT 15
15 Oct. 09	11:45	Canadian Oil Sands Trust CEO Marcel Coutu Speaks in Toronto (Canada )	OCT 15
15 Oct. 09	12:30	Manufacturing Sales MoM (Canada )	AUG	1.00%	5.50%
15 Oct. 09	12:30	Consumer Price Index (MoM) (United States of America )	SEP	0.20%	0.40%
15 Oct. 09	12:30	CPI Ex Food & Energy (MoM) (United States of America )	SEP	0.10%	0.10%
15 Oct. 09	12:30	Consumer Price Index (YoY) (United States of America )	SEP	-1.40%	-1.50%
15 Oct. 09	12:30	CPI Ex Food & Energy (YoY) (United States of America )	SEP	1.40%	1.40%
15 Oct. 09	12:30	Initial Jobless Claims (United States of America )	OCT 10	525K	521K
15 Oct. 09	12:30	CPI Core Index SA (United States of America )	SEP	- -	219.692
15 Oct. 09	12:30	Continuing Claims (United States of America )	OCT 3	- -	6040K
15 Oct. 09	12:30	Consumer Price Index NSA (United States of America )	SEP	- -	215.834
15 Oct. 09	12:30	Empire Manufacturing (United States of America )	OCT	18	18.88
15 Oct. 09	13:00	Budget Level (Monthly Total) (Poland )	SEP	- -	-600.9M
15 Oct. 09	13:00	Budget Perf. (Year to date) (Poland )	SEP	- -	57.50%
15 Oct. 09	13:00	Budget Level (Year to date) (Poland )	SEP	- -	-15643.M
15 Oct. 09	13:45	Fed's Bullard Gives Welcoming Remarks at Bank's Conference (United States of America )	OCT 15
15 Oct. 09	14:00	Philadelphia Fed. (United States of America )	OCT	12	14.1
15 Oct. 09	15:30	Merkel, Sarkozy Speak at World Health Summit in Berlin (Germany)	OCT 15
15 Oct. 09	15:30	Imperial Oil Limited CEO Bruce March Speaks in Calgary (Canada )	OCT 15
15 Oct. 09	15:45	Accor Publishes Third-Quarter Sales Figures (France )	OCT 15
15 Oct. 09	15:45	Carrefour Publishes Third-Quarter Sales Figures (France )	OCT 15
15 Oct. 09	16:00	Base Rate (Turkey )	OCT 15	6.75%	7.25%
15 Oct. 09	17:30	Imperial Oil CEO Bruce March Speaks in Calgary (Canada )	OCT 15
16 Oct. 09	00:00	Cabinet Office Monthly Economic Report (Japan )	OCT 16
16 Oct. 09	00:00	Money Supply Narrow Def.RUB (Russian Federation )	OCT 12	- -	4.0B
16 Oct. 09	00:00	Trade Balance (Mln Euros) (Belgium )	AUG	- -	909.7M
16 Oct. 09	05:30	Safran Releases Nine-Month Earnings (France )	OCT 16
16 Oct. 09	06:35	BOJ Governor Masaaki Shirakawa to Speak in Tokyo (Japan )	OCT 16
16 Oct. 09	07:00	Consumer Confidence (Turkey )	SEP	81.8	81.3
16 Oct. 09	07:15	Retail Sales (Real) (YoY) (Switzerland )	AUG	- -	1.00%
16 Oct. 09	08:00	Trade Balance (Total) (Euros) (Italy )	AUG	- -	4107.0M
16 Oct. 09	08:00	Trade Balance Eu (Euros) (Italy )	AUG	- -	2397.0M
16 Oct. 09	08:00	ECB's Bini Smaghi Speaks in Siena (Italy )	OCT 16
16 Oct. 09	09:00	Euro-Zone Trade Balance (European Union)	AUG	- -	12.6B
16 Oct. 09	09:00	Euro-Zone Trade Balance sa (European Union)	AUG	- -	6.8B
16 Oct. 09	09:00	Merkel to Speak at Re-Opening of Berlin's New Museum (Germany)	OCT 16
16 Oct. 09	09:05	Current Account (mlns euro) (Italy )	AUG	- -	3334.0M
16 Oct. 09	10:00	Retail Sales(Volume) (MoM) (Ireland )	AUG	- -	0.20%
16 Oct. 09	10:00	Retail Sales(Volume) (YoY) (Ireland )	AUG	- -	-15.00%
16 Oct. 09	11:00	Consumer Price Index MoM (Canada )	SEP	0.00%	0.00%
16 Oct. 09	11:00	Consumer Price Index YoY (Canada )	SEP	-0.90%	-0.80%
16 Oct. 09	11:00	Bank Canada CPI Core MoM (Canada )	SEP	0.10%	0.10%
16 Oct. 09	11:00	Bank Canada CPI Core YoY (Canada )	SEP	1.30%	1.60%
16 Oct. 09	12:00	Avg Gross Wages (MoM) (Poland )	SEP	0.20%	-2.80%
16 Oct. 09	12:00	Avg Gross Wages (YoY) (Poland )	SEP	3.00%	3.00%
16 Oct. 09	12:00	Employment (MoM) (Poland )	SEP	-0.10%	-0.10%
16 Oct. 09	12:00	Employment (YoY) (Poland )	SEP	-2.40%	-2.20%
16 Oct. 09	13:00	Net Long-term TIC Flows (United States of America )	AUG	- -	$15.3B
16 Oct. 09	13:00	Total Net TIC Flows (United States of America )	AUG	- -	-$97.5B
16 Oct. 09	13:15	Industrial Production (United States of America )	SEP	0.10%	0.80%
16 Oct. 09	13:15	Capacity Utilization (United States of America )	SEP	69.70%	69.60%
16 Oct. 09	14:00	U. of Michigan Confidence (United States of America )	OCT P	73.5	73.5
16 Oct. 09	14:00	ECB's Bini Smaghi Speaks in Florence (Italy )	OCT 16
16 Oct. 09	16:30	Ukraine's Yushchenko Speaks in Brussels (European Union)	OCT 16

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All About Forex Trading Systems

2009-09-21T23:09:00.001-07:00

Many forex traders (particularly novice traders) make the mistake of trying to beat the market by overly relying on Automatic Forex Trading Systems or "Forex Robots".

Well, guess what? You can't beat the system. Particularly if you don't know what you're doing, trading a market you don't understand and relying on an automated computer program to make your decisions for you.

There is a good reason why professionals who have been trading the forex markets for a long time generally make money and novice traders generally lose money. It's because the professionals know what they are doing and use systems (automated or otherwise) that work, whereas novice traders have not yet discovered what works for them and what doesn't.

So what exactly are automatic forex trading systems and how do they work? Can they actually make you any money or are they just a scam?

There are all kinds of forex trading systems on the market, some of which are more effective than others. Ranging from the most simple web-based plug-ins or spreadsheet-based toolkits aimed at the individual trader to highly complex applications requiring massive amounts of computing power developed for the trading desks of international banks, there is definitely something for everyone.

If you set up an forex trading account with a bank or broker for the first time, you are probably going to be given access to a system at the lower end of the scale. Most brokers provide customers with their own proprietary or "white label" software for trading the forex markets. This software is is usually either web-based (i.e. a browser-based plug-in) or a simple application that can be installed on the user's PC. The functionality you get includes some charting and technical analysis, a range of configurable tools you can use to determine buy and sell signals (e.g. weighted moving averages and support/resistance level indicators), and an order entry function, which allows you to place your orders into the market. The orders can be conditional on certain price/timing considerations.

These applications are very useful and are designed to help you trade, not to lose you money (although if you are a poor trader that will happen anyway!)

Commercially available packages that you actually pay for give you the same functionality but in more depth and with more configuration options, so you have more opportunity to "set and forget". Some of these are good, some are complete rubbish, so tread carefully and read objective reviews before you go out and buy one.

Regardless of whether you go with your broker's sysytem or a bought package, most of these systems allow back-testing using historical data, so you can see under what circumstances your trading strategies would have worked in the past before actually embarking on trading with real money.

With all of these Automatic Forex Trading Systems around, it is actually very easy to trade the markets. But our advice is always to make sure you never trade more than you can afford to lose. Happy trading!

Forex Trading Fundamentals - How You Can Grow Your Money

2009-09-21T23:08:00.002-07:00

Currency trading is not so much complicated. In fact, you can say that it is a high-risk activity for which a new trader needs to do a lot of practice and get familiarity about its working. Currency trading is much similar like when you exchange your home currency with the host country's currency. You can understand the currency trading by moving on the same pattern with the addition that here exchange takes place on much larger scale.

In currency trading you are in fact trading money in one currency to another currency. The main thing between such swap is the exchange rate. This trading is done by buying a currency at low rates and sale the same at some high rates afterward. In this way people make a lot of money through this.

The value of dollar is in move as sometimes it goes up and sometimes does down. Most of the people know about how the stock markets work but for the new comers it is necessary to get know how about that before starting trading because the nature of forex and option or stock trading is somehow different.

In Forex trading the main thing is information that has a significant impact on trading. You must have to be up graded with the information and utilize this information in a productive manner at accurate time. The source from where you are getting the information must be very much reliable because in this way you can consider that information trust worthy and can take decisions based upon that. Inside information can be proved very useful for decision making. You need to be very active and concern about what is happening all round because such things can have significant impact on market. In Forex markets certain information may be leaked through certain sources before this is available to the public.

For a new trader it is recommended that he/she must have some basic knowledge and training regarding the technicalities and mechanism of currency trading in the market. This can be done by hiring the services of some experienced mentor who will teach you about the basics of currency trading

There are many brokers available in the market through them you can execute the trading. These brokers charge commission for each trade that you make. The percentage of commissions varies from broker to broker and also depends upon the nature of services that you obtain from brokers either full service broker or broker for assistance. Hence, before starting currency trading, being a new trader you must be equipped yourself with complete knowledge about its working.

Looking For the Best Forex System Trading

2009-09-21T23:08:00.001-07:00

Many investors are joining the forex market due to its ever increasing popularity and potential for bi profits. It is the most dynamic market and so there are good reasons behind its being the most sought after.

Forex trading is a combination of art and science. There are theories, concepts and practice involved in the trading. And also the person has to have an appreciation and precision for the constantly changing trends in the market. You have to choose the best forex system trading to suit yourself.

From early days, people have traded in the forex market mechanically. This is a conventional method which does not make use of any technology and relies heavily up on the basic theories and concepts of forex trading. But nowadays, it may seem very difficult to carry out such a fast paced work without any tools and computers. The work becomes tedious and tiresome. But any people urge on the use of mechanical trading as it is considered the best forex system trading for learning the basic concepts of trading.

After years of mechanical trading, there came the sophisticated forex trading system. The system makes use of latest technology and relies heavily on computer judgment. Special software is designed to observe the market condition, suggest the project with maximum profits and suggest the best place for investment. It can even move on with making transactions on your orders. It makes use of algorithms leaving a very little chance of error. The method is fast hence it saves from missing any good chance of getting a profitable investment.

Another trading system is also available with the two systems combined. With this, the trader does not rely only on the computer program but also applies his knowledge to get the best investment.

The British Pound At An All Time High

2009-06-10T20:57:00.000-07:00

The British pound has recently been enjoying its status in the forex trading system as it reached an all time high in September 2007, hitting $2.03 conversion against the dollar. As the oldest currency used in the world today, the British pound has a valid status that no other currency has, but its strength has cemented its status as one of the most important currencies on the foreign exchange market today. However, financial crises and the rate of inflation looks set to propel it upwards yet again in the near future, or so financial experts are suggesting.

In terms of its availability and importance of the British pound, it is the fourth currency on the most traded list according to forex brokers, who only cite the US dollar, the Euro and the Japanese Yen above it today. However, in terms of the global currency reserves, it is third behind the dollar and the Euro. In other words, the pound is extremely popular within the forex trading system and many individuals follow its progress closely to ascertain when the optimum time to trade is.

The recent all time high superseded the all time high set earlier in 2007, when the British pound initially broke the $2 mark for the first time since 1992 and actually set a new record high, surpassing that set in 1981. This happened in April owing to a variety of factors, including the sub-prime crisis in the United States and a sharp rise in inflation. Although the level of interest rates was only handed over to the Bank of England in 1997, it has experienced its busiest period between late 2006 and September 2007, with the rates effectively going up several times to try and combat inflation, which currently stands at 3.1%. This is one of the major reasons why its value is so high on the foreign exchange market at the moment.

Forex brokers have often noted that the Euro and British pound have often mirrored each other's behaviour on the world stage, moving up and down at virtually the same time. It may therefore come as no surprise that the Euro has also experienced its all time high as of September 2007. Whilst this direct correlation may have made it easier to peg the movements of the currencies, it has led to confusion in the forex markets. With a number of currencies trading at an all time high, it may have put individuals off trading for now. However, as a direct result, the potential is there for investors to cash in if they move when the time is right.

Forex Education - 20 Questions That Will tell You If You Can Win At Forex Trading!

2009-06-08T11:28:00.000-07:00

Forex trading isn't easy and you wouldn't expect it to be with the rewards on offer but its not hard either - if you get the right forex education. If you look at the questions below and answer them correctly yes or no, you are learning forex trading the correct way and likely to be successful.

10 Questions you must answer NO to below:

1. I believe the more knowledge I acquire and the harder I work the more successful I will be.

2. Complicated systems are more likely to successful than simple ones.

3. The more news stories I study and trade the more chance I have of making money.

4. Day trading is a great way to make money.

5. Markets move to a scientific theory because human nature never changes.

6. You never go broke banking a profit.

7. You need to predict markets in advance to win at forex.

8. I can buy an e-book from a guru and just follow it they know best.

9. If I am always in the market the better my chances of success as I wont miss a move.

10. Buy low and sell high is a great way of making money.

If you agree with any of the above statements you will lose money.

They are all common forex myths believed by the 95% of traders who lose money.

If you answered no congratulations - you're learning forex trading the right way.

Now - here are 10 questions you should answer YES to.

1. I know that success comes from within and no one else can give it to me.

2. If I devise my own trading strategy I will acquire confidence and discipline.

3. Simple systems work best as they are more robust than complicated ones.

4. Forex trading is not a game of science it's a game of odds.

5. I need to run the long term trends to make money all short term.

6. All short term daily volatility is random and is un-tradable.

7. I don't predict market moves I simply respond to the reality of price changes.

8. I buy markets when they break to new highs because most big moves start from new market highs NOT market lows.

9. I trade infrequently and only trade high odds set ups.

10. I don't need to acquire lots of knowledge just the right knowledge then I am done.

Did you answer yes to the above questions? - then well done! Your learning the right forex education.

Now if you have got them all right so far, here is one final question to determine if you are likely to be a winner:

My trading edge is ( defined)

If you don't know what your trading edge is - you don't have one!

Your trading edge is the reason you will succeed and the vast majority fail.

Forex trading is all about getting the right forex education, ignoring the myths and focusing on the right information.

You need to build a system you can have confidence in which will give you the discipline to trade for long term success through inevitable losing periods.

The rewards of trading forex are immense and the amount of money you can earn can be life changing and if you get the right forex education you can enjoy long term currency trading success.

If you have the desire to be a winner and can accept you are responsible for your own destiny then the vast rewards of forex trading await you.

Forex - Your First Live Trade

2009-06-05T23:27:00.000-07:00

You have read and read about trading in the foreign exchange (FOREX) market. Ideally, you have even taken a course or two on the subject. As you look at your bank account balance, you are more motivated than ever as you contemplate its present condition versus the potential. Really, though, the only missing piece now is the reality of trading live. You want to jump right in, but instead you pause with cautious optimism as you wonder what to expect at the big moment. Here are some tips to help you cope.

Calm Your Emotions
Fear, indecisiveness, nervousness, uncertainty and loneliness-these are the emotions you want to avoid or, at least, put in the proper perspective. Are they normal? Absolutely! In fact, one or more of these can be viewed in a positive light as types of behavioral moderators. To be sure, a certain type of fear is healthy. For example, having a fear of getting out your account balance wiped out should remind you of the need to utilize proper risk management techniques and tools. Your indecisiveness may be a result of genuine confusion existing between the normal indicators you would rely on to show whether you should take a position or stay out of the market. If there is reasonable doubt, stay out. Overall, you should strive to be the balanced person you are designed to be as a means to being a well-balanced trader. This means that you need to get adequate rest, obtain proper nutrition, exercise and meditate to achieve and maintain the necessary balance and sanity successful trading will demand. A cold shower about 30 minutes prior to your trading activities should also help to soothe your nerves while catalyzing blood flow to your brain for better thought process.

Plan Your Trade
If you have not yet received proper training in trading, you should not be trading at all. It has been stressed over and over again that education is foundational to successful trading. Proper training should have taught you how to plan your trades. This would include demonstrations as to how to derive your entry and exit points; how to set your limits, profit targets and stops; how to identify trends; how to get confirmations from certain indicators; how to avoid over-trading, how to set leverage; how to monitor margin, and, how to determine when and when not to trade. Once you have a solid grasp of these concepts, you are ready for your final step.

Trade Your Plan
The problem with many new traders is that they panic when something unfavorable arises during their trade. This can be avoided by having a sound trading plan prior to opening a position. If this is done, then there is no need to panic, since you have a rehearsed roadmap to guide you. Do not try to change the plan in the middle of the stream. Sometimes, of course, the unexpected does arise forcing you to think on your feet and act quickly. Again, your improvisation should not be overshadowed nor dictated by panic and irrationality. Try to determine exactly what the problem is and apply sound principles to correct it. You should try to cure the loneliness of this turmoil by simply contacting your trainer, mentor or other more experienced trader to help you out of the bind, if time allows. Generally speaking, however, you should try to stick as closely as possible to your initial trading plan for optimal results in the long run. Happy trading!

Best Forex Online Platforms Trading

2008-10-29T22:48:00.000-07:00

The term forex refers to Foreign Exchange. The foreign exchange market deals basically with the trade of a particular currency for another. It is considered to be the world's largest financial market. The forex market includes various levels and forms of trading. It includes the trade carried out between various banks, currency speculators, central banks, governments, multinational corporations, and various other financial markets and institutions.

The main advantage which forex trading has over the conventional New York Stock Exchange and other similar stock exchange markets is that the traders can trade any time of the day. The conventional stock exchange markets limit the trading in the actual trading hours of the market. The best forex online platforms trading is preferred nowadays by most people owing to the fact that it enables forex trading anytime of the day and from anywhere in the world. This is done by giving access to traders of the online community of forex trading through online trading platforms.

The forex market is a great success compared to the other stock markets owing to the fact that the currency exchange market of the world operates around the clock. The prime requisites for a trader thus are time, money, a computer with the Internet facility and a telephone. The traders or the banks just need to log in to their forex trading account to start trading.

The best forex online platforms trading are also highly beneficial owing to the numerous advantages. The forex market is estimated to witness the trade of around one trillion dollars. The primary process can be understood in simple terms. It involves the trading of one country's currency for another country's currency.

The best forex online platforms trading are also the fastest and the most efficient modes of online forex trading. The traders can gain large profits owing to the structure of the market.

A Forex Trading Metatrader - Keep A Simple Set and Forget Strategy

2008-06-26T04:06:00.000-07:00

Forex trading can represent a daunting task for many traders that may have had from bad to horrible first experiences with the currency markets. As one approaches forex the most prominent motivation in our minds is to make money with our trades, this is, to become profitable forex traders. But as new traders we are susceptible of committing huge mistakes and draw false conclusion from our first approaches to this market. As you surely know by now, in order to have any profitability in this market you must have a complete understanding of how things work with currencies and then you should be able to use a number of indicators that will help you decide what kind of trade you should use in your next move into the market.

Now, it has been always a dream for all traders, from the beginning of these kind of markets, to predict what happens next with a currency price. This means, having a system that would tell us what time and at what price to enter our trades in a mechanical way. This is, a simple set and forget system that would take the sweating and worries away from our trading sessions. There is nothing 100 percent accurate among trading systems, that's for sure, but recently the Kiss forex trading system has showed that even without perfection it can make of you a profitable trader.

What's its secret? First, a Metatrader software for auto-trading, this is set and forget; and most importantly, the two basic principles that have worked with the markets since trading was born: market timing and smart money management. With these you will be on your way to be on the money when trading forex.

Forex Day Trading Profits - Who Makes Them and Could You?

2008-01-16T22:22:00.000-08:00

If you are considering forex day trading than this article is for you. On the net you will see more products and forex trading systems sold in day trading than for any form of trading and this article will give you the facts on forex day trading.

The most important fact is it doesn't work long term and you will get wiped out here's why:

Short Term Volatility is random

Millions of trader's trade trillions of dollars each day and to say you can tell what this huge diverse mass of people will do in a few hours or a day is ridiculous.

Humans are un-predictable in short time frames - PERIOD.

All Volatility is random

This is a by-product belief of the above and of course short term volatility is random.

If this is so, then all support and resistance levels are not valid in a daily time frame, as volatility takes prices anywhere in a day and you have no way of trading.

Tools that work in other time frames, simply don't work in intra day trading and never can - that's why a day trader can never get the odds in their favor and his luck will soon run out.

So why is it so popular?

Because it's a good story and internet marketers know this.

They sell ridiculous e-books claiming regular profits and untold riches, all for a few hundred dollars! If they worked, a lot more traders would make money and they don't.

It sounds low risk scalping small profits that build up over time but the reality is a thumping quick loss of equity for the trader.

But I have seen the track record you may say...

Sure you have but you never see a real one - there always hypothetical simulations done knowing the closing prices - how hard is that?

Anyone could do it even a kid could - but life in forex is not like that, you have to trade going forward and not knowing the closing prices and that makes things a little more difficult!

Its a good story and some of the advertising copy is fantastic but it's a story but good stories don't make money. My kids love Harry Potter but they don't think they can fly!

Forex day trading appeals to greedy and naive traders who are looking for a fast buck and in forex markets making money is not easy and nor would you expect it to be - with the rewards on offer.

THE GOOD NEWS IS...

There are far better ways to make money than forex day trading and these methods use longer time spans where you can get the odds in your favor.

Traders can and do make money in forex trading - but the day traders end up in the 95% of losers and if you don't want to do the same, avoid forex day trading.

Get proper sensible forex education and trade the longer term trends for profit.

All About Forex Trading

2007-12-17T21:19:00.000-08:00

Source of Articles is from - Ezinearticles

Forex trading, short for foreign exchange trading, involves the buying and selling of the many currencies of the world. It does not operate via a central exchange site, like traditional stock market trading, and may, thus, fully function a 24-hour basis.

When compared to other exchanges, the trading market is the largest in the world, even beating the New York Stock Exchange (NYSE) by over a hundredfold, in terms of daily trading volume, most of which are conducted by private entities and individuals.

Because of the absence of a central exchange, trading happens between two parties directly. Buyers and sellers communicate and trade via the phone, the Internet or other communications networks worldwide.

In addition, trading forex is also speculative, meaning, they are based on expectations on whether a certain currency would rise or fall, depending on current market conditions. It is risky business, but the returns have often proved themselves worth the risk.

Basic forex trading

Forex trading involves the buying and selling of two currencies at the same time. This combination is often dubbed a cross, because it occurs between two moneys; for instance, the US dollar/Japanese Yen. The highest traded currencies in forex are the US dollar, the euro, the Japanese yen and the UK pound - the "majors".

Trading normally occurs in the spot market, which is the largest because of its volume. Here, trades are made and completed directly and on the spot. You don't have to wait too long to settle.

Advantages of forex trading

1. No 4pm trade closing time.

When you're trading forex, you have 24-hours to do so from Sunday night to Friday night. This opportunity allows you to retract your moves and react immediately when a currency suddenly goes up or down. Breaking news are vital to trading.

2. Very liquid.

It is easy to convert your trades to cash in the market, especially if yours involves one of the majors. The high liquidity helps ensure that spreads are narrow and prices are stable throughout the period.

3. Strong potential for profits

This is particularly true with falling currencies. Because trading involves two currencies, when one rises, the other naturally falls. When a currency depreciates, it could be the perfect time to buy into it so that you can sell it for a hefty profit when it's its turn to appreciate.

4. The higher the currency's liquidity level, the cheaper it is to trade it.

This is why most forex trading patrons opt to trade majors, because they have the highest liquidity. In addition, trading is also more attractive to some money movers because of the absence of a commission. Thus, currencies are actually traded for their real merits and not because they come with misleading incentives.

There's a lot more to learn about trading and the above merely scratches the surface. To be able to further understand what forex trading is and how it can help you grow your coffers, it is advised that you speak to an expert who more likely has all the answers to your questions. Or, yet, ask somebody who's already had experience with forex trading.

Forex Trading Training - 12 Interesting Facts About The Forex Trading Market

2007-12-16T18:57:00.000-08:00

Source of Articles is from - Ezinearticles

Forex is an abbreviated name for "foreign exchange." The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. For many years, the market was dominated by large institutions such as banks and brokerage firms. However, the market has experienced a major change over the past several years, as a growing number of private investors and traders just like you have started to actively participate and trade. The purpose of this article is to reveal 12 interesting facts about the Forex trading market.

1. What is a Forex trading system? According to Howard Abell, "The [Forex] trading system gives the trader the ability to control his or her emotional states rather than allowing them to control him. A [trading] system is a disciplined method for organizing dynamic, ever-changing market phenomena."

2. It is the most liquid market in the world, thus making it easy to trade most currencies.

3. Unlike equities or futures trading, you pay no commissions on the Forex deals that you make.

4. According to the Wall Street Journal Europe, the most commonly traded currencies on the Forex market are the U.S. Dollar (USD), the Japanese Yen (JPY), the Euro (EUR), the British Pound (GPB), the Canadian Dollar (CAD), the Australian Dollar (AUD), and the Swiss Franc (CHF).

5. The most commonly traded currency pairs are the U.S. Dollar and the Japanese Yen, the U.S. Dollar and the Euro, and the U.S. Dollar and the Swiss Franc.

6. The U.S. Dollar is involved in nearly 90% of all Forex transactions.

7. Ten financial institutions account for nearly 73% of the total trading market volume. The Top 10 most active traders include Deutsche Bank (17.0%), UBS (12.5%), Citigroup (7.5%), HSBC (6.4%), Barclays (5.9%), Merrill Lynch (5.7%), J. P. Morgan Chase (5.3%), Goldman Sachs (4.4%), ABN AMRO (4.2%), and Morgan Stanley (3.9%).

8. The five major Forex trading centers are London, New York, Tokyo, Sydney, and Frankfurt.

9. The three major Forex trading countries are the United Kingdom (32.4%), the United States (18.2%), and Japan (7.6%).

10. Currency market players typically use "Forex analysis" as a means of predicting currency price movements. Forex analysis is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors, such as unemployment rates, interest rates, or inflation, as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The technical analyst believes that history repeats itself over and over again.

11. Some traders depend on fundamental analysis while others depend on technical analysis. However, many successful traders use a combination of both strategies. The important point to remember here is that no one strategy or combination of strategies is 100% certain.

12. Margin is referred to as the collateral needed to facilitate the deal. Usually, this is a very small portion of the entire deal, say 1% or 1:100. Please note that margin is a "double-edged sword." Without the proper use of risk management tools (for example, the stop-loss option), you can experience substantial losses as well as gains. We suggest that you take complete advantage of stop-loss and take-profit options in your trading.

Trading Forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.

Currency Trading Success - Learn This Method in a few Hours and Target 100% Gains!

2007-11-27T11:31:00.000-08:00

Currency trading for beginners can seem confusing, so here I am going to give you a system you can learn in a few hours max which can lead you to currency trading success and gains of 100% or more per annum.

I write currency articles but I am not just a writer I am a trader and have been for over 25 years.

I am not a self proclaimed expert who will tell you I win every trade I don't but I do know from experience that this method will help get the odds in your favor and lead you to currency trading success, if you understand how to use it properly.

In 25 years I have tried lots of different trading methods and the one I am outlining here is the simplest method I use and probably one of the most effective.

I call it Fundo-Tech trading and it is as it sounds - a method that focuses both on fundamentals and technical inputs and it's easy to use and apply. You see lots of advertising from vendors how you can predict currency prices with scientific accuracy, all for a few hundred bucks!

Well, the answer most of these guys are writers not traders or they wouldn't make such claims. If you want to enjoy currency trading success ignore them - trading is a game of odds not certainties and Fundo-Tech trading is simply designed to play the odds.

If you do you will make a lot of money, so let's look at this currency trading system.

The fundamentals are for defining strong currencies, the technicals are used for timing entry.

Currencies move to the long term fundamentals and that's a fact - that's why the long term trends last for months or years but the problem is:

Their hard to trade, as humans we all see the facts, but myself, you and millions of others, draw our own conclusions from what we see and we don't all see the facts in the same way.

An equation for market movement is:

Fundamentals + Human Perception = Price direction.

So it's the fundamentals that drive long term trends and humans in between move prices to far in either direction as they are influenced by greed and fear and cause prices to be overbought and oversold - these levels can be seen on price charts and allow you to time your entry.

So its pick currencies with great fundamentals and use forex charts to time entry.

Now let's take economies with strong currencies.

Currencies that rise in value tend to have good interest rate earnings, strong economies, and budget surpluses and export more than they import.

Let's take the US dollar

The American economy has a huge debt (and so are its people) and the budget deficit is huge and finally, it is a net importer of raw materials ( with oil being major one) that are rising in price.

Now let's take a strong currency:

The Canadian Dollar.

Canada is rich in commodities including oil it sells, has a huge budget surplus and has good interest rate earnings.

The Canadian dollar therefore has stronger fundamentals and should rise against the US Dollar and it has. In fact if you check out my other articles I stated this months ago and the currency has soared.

Picking the direction is easy, entering the trade with good risk reward is a different matter and is the hard part for most traders.

Let's look at how to enter correctly to get the odds in your favor this is the technical bit.

When resistance forms it simply means supply and demand are in equilibrium below the level and when prices break to a new high supply and demand are out of synch.

The key is to buy breaks of resistance on rising momentum in strong currencies - were not looking to buy lows! This is called breakout trading and it's a fact that most of the biggest moves come from new highs NOT market lows.

Forget all the buy low sell high is a great way to trade - it's not as you will miss the best moves - waiting for pullbacks that never come - when prices break they accelerate away from the breakout point quickly and the odds are in your favor, if you go with the break.

They key is to use momentum indicators to confirm the break so you know price momentum is accelerating.

Does this method sound simple?

Well it is - but that doesn't mean it doesn't make money it does and you can see it graphically in a trade such as the Canadian Dollar.

The best currency trading systems are simple as they are robust in the face of ever changing brutal market conditions and have fewer elements to break than complicated ones.

Another key to currency trading success is understanding the logic of your currency trading strategy so you can have confidence in it and this one is easy to understand and apply.

You can learn it in a few hours and you should be able to apply it in around 30 minutes a day. No intra day monitoring is needed.

So if you want a simple way to make money and enjoy currency trading success, try the above blend of fundamentals and technical's, and get on the road to bigger FX profits.

Common Sense Trading

2007-11-19T08:31:00.000-08:00

Percentage of accuracy is an obsession of novice traders. But it is not a very important criterion for judging a trading indicator. Some highly effective models are wrong more often than right. While some marginal models are right more often than they are wrong. The best advice "keep it simple" . Nothing is a better indicator than a price chart. When looking for a trading program you need to first establish realistic objectives that are right for you. Remember a trading system designed for a well- capitalized long-term investor wanting to ride long- term trends will not work for an undercapitalized speculator looking for quick profits with minimal risk.

The big investor can handle large draw downs (negative positions) that always occur when trend trading.

The trader with limited capital needs to find profit in the smaller price movements that occur on short- term time frames. This individual needs a sensitive, accurate program that can offer consistent profitability. Smaller gains. But more frequent.

Both traders need to manage their capital accordingly. The big trader will trade less frequently. The smaller trader will trade more frequently but must cut losses immediately. Trend trading is easy. Anyone with a good long-term chart and a decent book can trade a trend. Short term trading requires the individual to develop the ability to learn how to understand and interpret price activity.

If you want to be successful you must study and learn. You cannot simply buy someone else's technology and blindly rely on it.

Short-term traders need to first adopt a specific set of rules that are learned and then internalized. This builds confidence. Which then develops quality experiences. Then the ability to utilize technology comes into play.

A short-term trader needs to first develop the ability to trade a stand-alone pricing chart consistently before considering moving forward and adding on additional analytical tools. Unfortunately most individuals do not take this path. Most pursue a program that is typically trend based and try and make it work with less capital on a smaller time frame only to end up wasting valuable time and money.

All short-term traders need to develop the ability to trade based on price action then evolve into more sophisticated processes.

Business With Forex

2007-11-14T21:46:00.000-08:00

As stated Forex Trading is the exchange of currencies for profit, and it offers unmatched potential for profitable trading in any market condition or stage of the business cycle. Usually, investors are speculating on daily currency fluctuations and this is a constant profit source; this Forex business profit mechanism. Independent Financial Advisers, Successful Forex Traders, Banks Insurance companies, Advertising companies, Organizers of financial seminars, Estate agents, Sales Executives with interested client base. Any business professional with interested clients. How do you know if your contacts are interested in the Forex markets?

Or if you don't like to trade; focus on your other business but at the same time wish to profit from the very lucrative exchange market. Since the majority of Forex business is based on credit, the partnership with financial institution is crucial to offers their clients better in an investment. If you look at online Forex trading as a business, you probably can't find another business you can start for less.

Getting started as an Introducing Broker. Make sure that the Forex broker you choose to become an Introducing Broker for provides all the assistance you require to grow your new business. Trading is very appealing for interested business people, because you can engage in transactions 24-hours a day from Monday to Friday. Earlier, a minimum transaction size was required to conduct business with the Forex.

If you lose money early in your trading career it's extremely hard to gain it back; the ploy is not to go off half-cocked; study the Forex business before you start to trade. So your first step to move into Forex trading, or shares trading and investment or futures and commodities trading is to get the correct training in terms of strategy, and learning to trade professionally as a business. So if you are an internet marketer, and you have a good cash flow from your internet marketing business, it is never too late to start right now to transit and also move into investing in the financial markets such as Forex, stocks and shares or futures and commodities to start creating the assets flow - to own more liquid assets to your name.

Wealth And Power

2007-11-12T18:08:00.000-08:00

If an individual happens to be an online forex broker then the likelihood is that he or she will have experienced an upsurge in custom in the recent past. Many people still think of stocks and shares when trading on the markets is mentioned. However, more and more people are investing in the forex exchange market instead. There are a good many reasons behind that because the forex trading system has distinct advantages.

The forex market does give an individual the chance to make much in terms of wealth, which obviously brings power along with it, but the very nature of forex gives any individual trader power anyway. That power comes with flexibility because the forex market is literally open 24 hours a day. Any individual can trade as and when desired, regardless of the time. If you do have a day job then it does not mean that you have to miss out. Instead, simply wait until the evening! The forex trading system is designed specifically to open the door to every potential investor.

The online forex broker also plays his role in the advantageous nature of forex. In stock and shares, brokers charge commission, but forex brokers do not. They make their money from the trade itself and not from the profits of the successful trader. The lack of transaction fee, plus the free account available to every individual that trades forex, keeps costs low and makes it economically sensible!

Despite the fact that the forex trading system has such advantages, it can only bring wealth and power as and when you successfully trade and make a profit. This is much harder than it sounds. A forex trading education can take months to complete simply because there is so much to learn and it can really confuse an individual that happens to lose concentration for just a moment. There is always a currency on the move, but if you wait to late then the chances are that you will suffer financially as a result.

Believe it or not, there is a certain amount of studying involved to perfect the art of trading at the best possible times. Most of the currencies that can be traded on the forex market actually have distinct historical patterns and, as a result, they are perhaps the best currencies to learn with. However, others are unpredictable. However, any individual starting to learn forex now will have a major problem in terms of predicting where the unstable global economy will take him or her today in relation to profit and loss. After a comprehensive forex trading education, you will know exactly what signs to look for, and this will most definitely aid your quest for wealth and power.

The British Pound At An All Time High

2007-11-10T21:56:00.000-08:00

In terms of its availability and importance of the British pound, it is the fourth currency on the most traded list according to forex brokers, who only cite the US dollar, the Euro and the Japanese Yen above it today. However, in terms of the global currency reserves, it is third behind the dollar and the Euro. In other words, the pound is extremely popular within the forex trading system and many individuals follow its progress closely to ascertain when the optimum time to trade is.

The recent all time high superseded the all time high set earlier in 2007, when the British pound initially broke the $2 mark for the first time since 1992 and actually set a new record high, surpassing that set in 1981. This happened in April owing to a variety of factors, including the sub-prime crisis in the United States and a sharp rise in inflation. Although the level of interest rates was only handed over to the Bank of England in 1997, it has experienced its busiest period between late 2006 and September 2007, with the rates effectively going up several times to try and combat inflation, which currently stands at 3.1%. This is one of the major reasons why its value is so high on the foreign exchange market at the moment.

Forex brokers have often noted that the Euro and British pound have often mirrored each other's behaviour on the world stage, moving up and down at virtually the same time. It may therefore come as no surprise that the Euro has also experienced its all time high as of September 2007. Whilst this direct correlation may have made it easier to peg the movements of the currencies, it has led to confusion in the forex markets. With a number of currencies trading at an all time high, it may have put individuals off trading for now. However, as a direct result, the potential is there for investors to cash in if they move when the time is right.

The Euro At An All Time High

2007-11-09T08:43:00.000-08:00

Having been launched in 1999 and in general circulation since 2002, the Euro is one of the most prominent currencies in the world at the moment. With over 360 million people using it across Europe, the Euro is one of the best-known currencies and, as such, plays a large part in the forex trading system. At the moment, owing to several factors and events that have effected world currencies on the whole, the Euro is at an all time high, thus throwing many individuals' currency trading strategies into disarray!

The Euro is at an all time high largely because of the sub-prime crisis in the USA. The dollar has considerably weakened, and the Euro and US dollar have always been inextricably linked. This has often led to strong fluctuations of the Euro in the past, with the currency jumping up or down in the region of two points in several of the years of its existence. However, its current level of around 1.4113 against the dollar is much higher than its previous December 28, 2004 all time high of 1.3633. As you can see, the Euro's history has been one of great fluctuation, thus cementing its status as one of the major players in the forex trading system as a result!

Many individuals that have invested in the Euro via fx currency trading have amassed a good return as a result of shrewd currency trading strategies. By watching the Euro's fluctuations during its short history, many individuals have been able to identify the signs of its relative strengths or weaknesses affecting its price in advance. For example, the European Central Bank has recently voted against raising interest rates, despite the fact that the manufacturing industry is currently weak and the financial industry within Europe has remained unstable, but if they have to make the decision to raise interest rates again then the likelihood is that the Euro will again fluctuate.

Just as the US Dollar and global events have contributed to its current all time high, both factors have indeed played a part in its historical highs and lows too. However, the unstable global financial climate at the minute means that more fluctuations are likely in the future. As a result, fx currency trading can indeed be used to make a lot of money at the moment if an individual makes the right decisions. Although the European economy may not benefit as a result of the recent high, the skilled forex trader certainly will!

Forex Home Trader – Facts You Need To Know About Trading Forex

2007-11-06T01:06:00.000-08:00

Forex trading (foreign exchange) become the latest trading activity for beginner traders. Some of them see this as an opportunity to earn a living by trading from home as a Forex Home Trader. The foreign exchange market also known as the "Forex" is the trading between different currencies of different countries. This very liquid market only became available online for trading, to the individual private trader in last couple of years.

Every currency has it own three-letter symbol that will represent that country of the currency that is being traded. For example, the Japanese Jen is the JPY and the United Stated dollar is USD. So you will note that these currencies are always quoted as USD/JPN

These trades are facilitated through a Forex broker, with whom you will sign up, in order to get your own online trading account. It is strongly advised that you first sign up for a "Demo" trading account where you can trade currencies in a simulated environment - so none of your own funds will be used in "real time". This type of account is excellent for developing your own trading strategy and for you to get the feel for the markets; it also prepares you for trading your own funds in a "Live" account. Warning! The degree of discomfort in trading in "Demo" mode varies greatly from "Live" trading as there is quite a difference between trading "cyber money" and trading your own funds "Real time". Sign up for various "Demo" accounts at various brokers and test drive their online trading software or trading platforms - make sure that you start trading with the software you are most comfortable with, it is only in you own interest!

Be very aware of the following: You can lose some or all your funds in trading the Forex market! This market is extremely fast and some times very volatile! - ensure that you complete at least a comprehensive Forex trading course and try to enlist the help of a seasoned Forex trader that you can use as a mentor, before starting to trade actively in the market. To lose a lot of money in a trade when the market goes against you is not easy, you must be mentally strong to absorb you losses and have the drive to learn out of your mistakes!

Ensure that the broker or Forex Company which you decide to trade through is fully authorized to deal in Forex. In the United States, numerous rigid new laws and regulations regarding the trade of Forex for US citizens are being implemented. If you are searching the internet for a Forex broker, ensure that you read the "fine print" on their brochure, proposal or website - make sure that your company or broker is legal.

Before entering any trade make sure that you did your homework, did you do Fundamental analysis of the markets - take a look at your economic calendar, what are the other countries doing? Will there be announcements that will influence the currency you are going to trade? Did you decide where your entry and exit point will be? Do not forget to set your stop loss! Otherwise your trade can be disastrous for you if the market turns against you and you don't get out of your trade in time.

Remember that by preparing yourself well before entering any trade in Forex, can only benefit your own pocket, so be informed and enjoy Forex Trading!

Forex Day Trading

2007-11-06T01:00:00.000-08:00

More novice traders try forex day trading than any other method and while you will hear people telling you it makes money and see gurus selling courses, the fact is you never see a real track record of profits - Why? Because - it doesn't work.

The Illusion

Forex day trading doesn't work in the real world - because all daily volatility is random.

The net result is that support and resistance levels (and any technical tool you try) have no chance of working, therefore you have no chance of winning.

Millions of traders, trade trillions of dollars and to say that you can tell what this huge mass all driven by different motivations, experience and emotion will do in a few hours is laughable.

The illusion day trading makes money is just that - an illusion.

Traders back test data and bend their systems to make them fit the data.

Of course, when these systems are traded the data never replicates itself EXACTLY the same way again and they lose.

This is known as "curve fitting" i.e. bending the system to fit the data.

One trader I know likened this to shooting at a barn door and then afterwards drawing a circle around everyone, to show it as a bulls-eye.

If we all knew tomorrow's price today, we would all be rich - shame it's not that easy in forex trading - we have to trade not knowing the prices!

Vendors feed on this naivety and greed, by making up track records based upon hypothetical simulations done knowing the closing data, put a disclaimer on and forex traders think it will work in the real world.

They don't - ask for a real time track record and you simply won't get one.

The vendor makes a guaranteed profit from selling the myth and the trader gets the reality of a loss.

The Reality Is..

If you can't trade with the odds in your favour, you're going to lose and we have already told you why.

Another reality is that forex trading involves risk.

Day traders think their restricting risk and will have small losses - sure they do but over time they get a lot of them!

Of course one of the well known phrases of trading is "cut your losses and let your profits run" this totally alien to forex day traders - what do they do when they get a profit?

They snatch it!

So they have lots of small losses and a few marginal profits (even day traders get lucky ) and the result is the demise of their account equity - PERIOD.

If you want to win at forex trading - forget forex day trading and either try forex swing trading or long term trend following, where support and resistance levels can be used to generate high odds trades.

Today, most traders are looking for an easy buck and forex trading is not easy, they buy day trading systems with the illusion of low risk, regular profits and that's all it is an illusion.

The reality is a wipe out of equity.

Avoid forex day trading, if you want to win at FX Trading.

Forex Chart Mistakes 6 Common Ones That Will See You Lose!

2007-11-06T00:55:00.000-08:00

Forex charts are an excellent way to make money yet most traders have no idea on how to use them correctly and 90% of traders lose. Here we will outline 6 common mistakes traders make with forex technical analysis and if you make ANY of them you will lose to.

1. Using Science

Many novice traders make the mistake of thinking that forex prices move to scientific law - stand up the devotees of Gann, Elliot and Fibonacci - but of course they don't. If they did then we would all know the price in advance and there would be no market - period.

These traders are naive or lazy - what they need to understand is trading is a game of odds not certainties.

Leave the scientific theories to the far out investment crowd and dreamers and concentrate on the reality of making money - and that means trading the odds.

2. Trying to Predict

Even traders who don't use scientific forex trading strategies try and predict.

For example, they see prices dip toward support and buy - but this is hoping and guessing and they are going to get a lesson.

If you want to win you wait for the test of support and pfirs to move away from the level supported by momentum.

If you don't know what momentum oscillators are now is the time to learn and make them an essential part of your forex education - if you don't trade with price momentum, you are simply guaranteed to lose.

Look up our other articles for further details - you must trade with momentum indicators to get the odds in your favour.

3. Using invalid data

Day traders! All volatility is random in daily time frames and prices can and do go anywhere so you can't get the odds in your favour and you will lose.

More novice forex traders use forex day trading systems than any other method and it's the best way to lose money - Don't try it.

4. Using Indicators The Wrong Way

How many times have I seen people buy dips to a moving average? Loads of times and it's a guaranteed way to lose money - it's a lagging indicator!

Another great one is - traders using outer Bollinger bands to set stops - that's not what it should be used for, it's a gauge of volatility.

These are just two examples - but there are many more - always use indicators for what they are supposed to be used for.

5. Being To Complicated

Many traders think the more the better and try and use loads of indicators and complicated equations in their currency trading system.

Their wrong!

Simple systems using support, resistance and a few momentum indicators are all you need to succeed.

Why?

Because - simple systems are more robust and less likely to break in the brutal world of trading.

You don't get paid for being clever in forex trading; you get paid for being right - so keep it simple.

6. Being too Subjective

The more objective you're trading, the more likely you are to stay disciplined and keep your emotions out of trading.

Avoid using indicators that are subjective such as, cycles etc and stick with objective rules.

Finally...

Using forex charts is easy and quick and you can soon be enjoying currency trading success, so long as you use them the right way.

When you use forex charts you are a bit like a ships captain - you can use them to navigate correctly but if you don't, then just like the captain at sea who makes errors the market will drown you and your equity.

Source of All Articles is From: - www.ezinearticles.com

Forex – Your First Live Trade

2007-11-06T00:50:00.000-08:00

Calm Your Emotions

Fear, indecisiveness, nervousness, uncertainty and loneliness-these are the emotions you want to avoid or, at least, put in the proper perspective. Are they normal? Absolutely! In fact, one or more of these can be viewed in a positive light as types of behavioral moderators. To be sure, a certain type of fear is healthy. For example, having a fear of getting out your account balance wiped out should remind you of the need to utilize proper risk management techniques and tools. Your indecisiveness may be a result of genuine confusion existing between the normal indicators you would rely on to show whether you should take a position or stay out of the market. If there is reasonable doubt, stay out. Overall, you should strive to be the balanced person you are designed to be as a means to being a well-balanced trader. This means that you need to get adequate rest, obtain proper nutrition, exercise and meditate to achieve and maintain the necessary balance and sanity successful trading will demand. A cold shower about 30 minutes prior to your trading activities should also help to soothe your nerves while catalyzing blood flow to your brain for better thought process.

Plan Your Trade

If you have not yet received proper training in trading, you should not be trading at all. It has been stressed over and over again that education is foundational to successful trading. Proper training should have taught you how to plan your trades. This would include demonstrations as to how to derive your entry and exit points; how to set your limits, profit targets and stops; how to identify trends; how to get confirmations from certain indicators; how to avoid over-trading, how to set leverage; how to monitor margin, and, how to determine when and when not to trade. Once you have a solid grasp of these concepts, you are ready for your final step.

Trade Your Plan

The problem with many new traders is that they panic when something unfavorable arises during their trade. This can be avoided by having a sound trading plan prior to opening a position. If this is done, then there is no need to panic, since you have a rehearsed roadmap to guide you. Do not try to change the plan in the middle of the stream. Sometimes, of course, the unexpected does arise forcing you to think on your feet and act quickly. Again, your improvisation should not be overshadowed nor dictated by panic and irrationality. Try to determine exactly what the problem is and apply sound principles to correct it. You should try to cure the loneliness of this turmoil by simply contacting your trainer, mentor or other more experienced trader to help you out of the bind, if time allows. Generally speaking, however, you should try to stick as closely as possible to your initial trading plan for optimal results in the long run.

Forex - Getting Started

2007-11-06T00:41:00.000-08:00

A computer with Internet access, a funded account with foreign currency exchange broker, and a trading system should be sufficient to get things started. The Crucial Key For Internet Marketers Moving Into Trading: It is crucial that you get this understanding at the very onset, if you are an Internet marketer wishing to move into Forex trading, shares or commodities trading. On the Internet, you can come across numerous games and simulations while learning the techniques involved in Forex trading.

You can undertake Forex trading while sitting at home, in an Internet cafe - or on beach. Forex Trading Online: You can use the internet to do your FX currency trading, and there are plenty of software programs available that give you alerts concerning prices, market condition, whether you should buy or sell, etc. The market is open 24 hours, can be accessed anywhere in the world with an Internet connection, and can be the ultimate tool for building wealth.

So if you are an internet marketer, and you have a good cash flow from your internet marketing business, it is never too late to start right now to transit and also move into investing in the financial markets such as Forex, stocks and shares or futures and commodities to start creating the assets flow - to own more liquid assets to your name. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market. In the Forex world, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine.

There are also many courses on the Internet, just be careful when choosing which ones to purchase. The Forex market does not have one specific place of trade like many of the other markets do, for this reason alone is why Internet, fax, or telephone performs most of the trade.

A Forex Strategy for Winning 25 Percent on Your Money Weekly

2007-11-05T09:37:00.002-08:00

Wealth System Solutions is a company that researches companies with low-cost programs for trading the forex to see if they are profitable or not. The forex, or foreign currency exchange market, is the largest financial market in the world. In fact, the daily trading volume of the forex is now over two trillion dollars. The most recent program Wealth System Solutions has tested is the Forex-Kiss system.

Only banks and large institutions used to be allowed to trade the forex. Clients used to have to provide a million dollars to have their funds traded in this market and the managed account was charged 30% just to have it managed by a certified, professional trader. Some companies have made profits only because of their earnings in this, the world's largest financial market.

In the past decade, the small investor has been allowed to enter the forex market and brokers will allow a trader to enter the market with as little as $250. However, this is a dangerous practice for the trader, especially the forex currency trading beginner.

The low account is open to swings in the market and vulnerable to losses and the novice trader ends up losing his or her funds and not being able to trade. Large traders count on this and when there are winning trades in the market, there also have to be losing trades. Even so, an individual can safely open a mini forex account with as little as $1,000 and feel comfortable as a beginning trader.

95% of new traders lose their accounts. With proven, profitable and inexpensive systems, the forex trader can be part of the elite 5% who actually earn money in this lucrative market. The Forex-Kiss system is based on an automated system developed for trading the forex market using robots to trade using the Meta Trader 4 trading platform (a platform is the software where you make and manage your trades).

One of the nice aspects of trading a forex system is that forex brokers allow you to sign up for a free, practice trading account. They generally give you anywhere from $10,000 to $100,000 in "play money" enabling the trader to try a system and feel comfortable with it before they enter the market with real money in a live account.

In a recent, private conversation, an expert trader using the Forex-Kiss system let slip that the trader was earning 25% per week using that particular system. As Wealth System Solutions has tested this forex system, we cannot dispute these findings. A trader can indeed double their money monthly using this automated trading system.

In summary, the Forex-Kiss trading system is a recommended forex trading strategy because of its low cost, automation, and profitability. It was recently rated as the number one recommendation at Forex Money Online.

7 Forex Trading Principles

2007-11-05T09:33:00.000-08:00

Over my past few years of Forex trading, and reading books written by various market wizards, I've found certain principles to be true. Understanding and using these basic principles provides an anchorage of sanity when trading in an insane market. I always pull out these 7 basic trading principles and review them, whenever I am stress or getting "whipped-saw" in the market.

1) Nobody knows where the market is going

It has really taken me quite some time to realize that no one knows where the market is going.

I have been to seminars in which the presenter made it seem as if he or she had some holy grail in trading to predict where the markets were going. Either they were insane or they were just plain good actors.

2) The Market Experts aren't David Copperfield

The market experts aren't magician. Some of these experts or gurus that try to predict the markets actually profited from it. The reasons for them profiting in the market is not because they predicted the market correctly. They make money because they traded the market correctly.

3) Don't Try to Predict the Future

I used to think that there were gurus and experts out there who knew what was going to happen in the markets. I thought that these gurus and experts were extremely successful because they had the magic formula on how to predict the future of the markets. Of course, the question is that if they were such geniuses, and if they knew where the market was going, why were they still conducting trading courses, posting newsletters... etc? Why weren't they driving to the seminars on their Lamborghinis? Why aren't they the richest man in the country?

4) Discipline, Discipline, and more Discipline

In the world of trading without fixed rules and regulations on how you open your trade, close your position....etc. Discipline, Discipline, and more Discipline is the real rules of trading-without it; it will be just a question of time, before we are doomed!

This is not an easy behavioral trait to master, I know but nevertheless an essential element and a key to any successful trading.

5) Aligned yourself with the Market

We make money trading when we are in harmony with the market. We are long when the market is going up, and short (or out of) the market when it is going down. If we bring an opinion with us while trading, we will end up fighting the market. We keep trying to go long as the market is declining, or we keep shorting a market that it is in a bull phase.

6) Read the market, manages your emotions.

To remove your personal biases and let the market tell you what to do is to give up control, to give up the notion that you are actually in charge of how much money you make. For profitable trading, you need to move into the mental state of letting the market determine the profits, not you. It won't be whether you predict the market correctly that determines the profits, but whether your strategy is in a profitable mode or drawdown mode as determined by the market. So, let the market tell you what to do based on your strategy. Let it get you long and put you short. Let the market determine how much money you are going to make. Trade your strategy and let the market do the rest. And know that the market gives money and the market takes away money. Your goal should be to develop a strategy that gives you more money than it takes away.

7) Accept losses as a cost of doing business

Most successful traders will tell you that the most difficult thing about trading is accepting the losing trade. We all have the desire to be right, to be correct all the time. For novice traders, the losing trade means that something is not working and that you have somehow made a mistake. For experienced traders, losses are just a cost of doing business.

Some of the best traders in the world lose money on more than half of their trades. If you look at the performance results of the best traders and money managers, you will see that they all have a large percentage of losing trades. If you trade, I guarantee you that you will have losing trades. Learn to love losing trades. They should be your friend because you will be spending a lot of time with them.

5 Things a Forex Course Should Teach

2007-11-05T09:30:00.000-08:00

While many people have experienced success in Forex trading, an estimated 50% of traders lose money in the market. Nonetheless, plenty of people still jump into the Forex market, trade foolishly and lose their money, day in and day out. Until now, it's shocking to see traders keep risking their money into the Forex market without mastering techniques and studying their trading strategies.

Whether you are an experienced broker or a beginner struggling to make it in the market, there are certain things you should do to manage risk and increase possibilities of making big bucks. The first and most important thing to do is to learn all the basics of Forex trading before implementing any technique. The best thing anyone could do is grab a copy of a Forex course and absorb everything it has to teach you. However, this Forex course should teach you these five essential things:

• Brain food - Whether you wish to learn using video tutorials or books, through workshops, seminars or online learning, a Forex course should be your guide in building up trading skills and knowledge, straight from the professionals' experiences and advices. Your chosen Forex course should include information about implementing technical charting into your trades and learning to use indicators in determining the right time to enter or exit the market. Some lessons even offer you with an online demo account as a way to brush up your Forex experience.

• Trading system - It is important to choose a well-designed trading system. A good Forex course should recommend trading tools, such as automated charting and auto trading, to reduce your work dramatically and lessen the chances of "emotional trading".

• Forex trading plan - You should never take risks with your money. As such, an effective Forex course should give you enough information so you could determine trade objectives, profit expectations, investment assessments, when to enter and exit the market, stop-loss order execution and affordable risk. Once you still fail and lose money, review your trading plan and modify your mistakes.

• Good money management - If you learn to manage your money, you are able to control risks using protective stops. You also increase your potential for profit. Make sure you are always aware of your personal expenses, trading money and savings. This way, you will always have money when you face a good investment opportunity.

• Discipline - Not only should a Forex course teach you the terminologies, strategies and tips for a success in the Forex market, it should teach you how to trade Forex with discipline. Without discipline, everything you learned from the Forex course is useless because even if you had a successful trade today, greed will catch up and you will lose money eventually.

A Forex course that teaches you the basics of the market, choosing effective trading systems, creating a solid trading plan, learning proper money management and trading with discipline is a must-have book, video tutorial, workshop or online session. Become a successful investor by learning how the big boys of the Forex market became how they are now.

4 Types Of Technical Indicator You Need When Trading Forex

2007-11-05T09:28:00.002-08:00

If you have any experience in using any kind of charting packages to assist you with your forex trading, you will know that there are endless different technical indicators you can use. In this article I'm going to be asking what are all these indicators and which ones do you really need?

As you can guess from the title of this article, there are essentially four different types of technical indicator and they are as follows:

1.Trend indicators.

MACD, Parabolic SAR and the various moving averages are a few examples of trend indicators and they can all be used to identify a trend. It's widely argued that you should only trade with the trend so all of these indicators will help you to take the decision out of your hands, and therefore dictate which way you should be trading. Your only decision now is at what level to enter the trade.

2.Momentum indicators.

These types of indicators are essentially oscillating indicators and are most useful for determining overbought and oversold positions and can be very useful in signalling the start of a new trend. Examples include RSI, Stochastics and CCI.

3.Volume indicators.

As the name suggests, these types of indicators show the volume of trades behind a particualr price movement which can be extremely beneficial because a price movement backed up by high volume is a much stronger signal than a price movement based on low volume. Examples here include Chaikin Money Flow, Force Index, Money Flow Index and Ease Of Movement.

4.Volatility indicators.

Volatility indicators generally use ranges to show the behaviour of the price and the volume behind any movements. This is useful because any dramatic change in behaviour can provide a good entry signal. Common examples include Bollinger Bands, Average True Range and Envelopes.

So there you have the four different types of technical indicators available to you. Which ones you use is entirely up to you, but it's generally advised that you have at least one type of each in order to provide additional confirmation for entering a trade.

Trading forex using technical analysis is all about probabilities in that when you enter a long position, for example, you want all of your chosen signals to be signalling an upwards movement, therefore indicating a high probability of an upwards movement taking place.If you use a strict stop loss policy and use these different types of indicators to confirm positions, then over time this high probability trading method should provide you with more winners than losers in the long run.

4 Common Sins in Forex Trading

2007-11-05T09:22:00.000-08:00

1) Traders become long term Investors

How often have you heard of people saying, that they are still straddling on to their losing position in Forex trading, while hoping that the market will make a U-turn in their direction? This happened to most Forex amateurs who may find it too painful to cut small losses and get out of their trades. They are either holding on a position too large or having a large ego to admit that they are wrong. Eventually they will grow tired of watching the prices go too much against them, that they just leave their position hanging there.

Many amateur traders deny their loses, just like an alcoholics deny their drinking problems. There is a stark of parallel between an alcoholic and a trader whose account is being demolished by losses. They nurse the fantasy of being able to control their losses, however, nothing will ever change with their self-denial nature.

2) Cheap become Cheaper

This is a very common mistake, and those who commit it do so by comparing the current price with the 52-week high of the currency. Many people using this gauge assume that a fallen share price represents a good buy. But the fact that the currency price happened to be at a highest price of the decade. That's why it pays to analyze why the currency has fallen.

Deteriorating fundamentals and increased interest rates are all possible reasons for the weakening of currency - but they are also provide good reasons to suspect that the currency might not increase anytime soon. It is important always to have a critical eye since a weakening currency might be a false buy signal, avoid buying currency that simply look like a bargain. In many instances, there is a strong fundamental reason for a price decline. Do your homework and analyze the currency's outlook before you invest in it.

3) Picking High and Low

Many started trading Forex without knowing the nature of the market. Unlike the stock market, Forex is very trendy financial instrument and the trend may continues for over a period of few years.

Most traders like to be the first one to pick either the high or the low of the market, and they may describe to you the thrill they get from being right are equivalent to flying a plane. However in the Forex market, it favours more on continuation rather than reversal. To be truly profitable in the Forex market, extra cautious need to be taken for initiating a reversal trade.

4) Presuming or Predicting

Many amateur traders gambled on hunches and use it to make their trading decisions. Or you may hear your relatives or friends talking about a currency that they heard will get a bull rush, because the economy of that particular country is good. Even if these things are true, they do not necessarily mean that that currency is "the next big thing" and you should run to the nearest phone to call your broker.

Other unfounded tips come from trading professionals on internet who often tout a specific pair of currency as though it's a must-buy but really is nothing more than the flavor of the day. These currency tips often don't pan out and go straight down after you buy them. Remember, buying on media tips is often founded on nothing more than a speculative gamble.

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