Candlestick patterns are the oldest Forex analyzing tools, developed by Japanese in the eighteenth century with the object to follow the rice sell.
They used to draw the bars representing the trade of each day, mentioning the opening, highs, lows and closing rice trades.
They color the distance between the opening and closing of trade in a rectangle shape, so that each trading bar would look like a candle that is how it got the name candlestick patterns as we call it today.
With this idea, an image might have formed in your mind somewhat resembling the candles. The technique is still valuable after centuries and move toward to the western world at the start of the 20th century.
Now, it has reached to a point where most of the trading systems offer candlestick chart patterns for examining Forex trends.
To note, each candlestick bar that has the final price greater than the opening price is colored with lighter color to make the difference while the dark color candles symbolize bars where the opening trade is higher than the closing trade represented by the red color.
Now a-days, the Forex trading systems provides the color customization facility so that you can change color of the candlestick charts as per your likings.
The candlestick pattern is the oldest Forex analysis tool that has gained the attention of several traders and widely implemented tool in today's Forex trading environment.
source:http://www.forexarticlecollection.com/forex-beginner/forex-candlestick-learning.html
Saturday, November 7, 2009
FOREX Brokers - How to Choose the Right One
Forex trading is one of the most lucrative segments in the business industry. It is not a wonder why people swarm to do commerce in forex market. One of the essential steps to take by potential traders is choosing their forex brokers. Broker can act on your behalf to carry out trading transactions however in certain cases there will limitations according to what has been agreed during your application.
It is important to choose the right forex brokers as they carry the potential risk of your investment while it incurs cost to your trading expense. There are few helpful criteria to consider in choosing your forex brokers.
In the past, some traders were victims of non-refunded accounts when many forex brokers went unsuccessful with their business operation. Hence, they started to implement strict laws in US and UK that governs the forex brokers. It is important to note that your preferred forex brokers should be regulated either by the CFTC or NFA in the US and FSA in the UK. These will ensure that you are dealing with legitimate brokers.
Know the trading platforms of the forex brokers. A recommended trading platform should show actual prices that you are able to trade. Avoid platforms that offer only indicative prices. As this will also contribute to your trade execution, it is therefore necessary to opt for platforms that you are comfortable to use with. Always prefer a platform that matches your particular needs.
There is a term commonly used in the forex arena known as spread. It refers to the difference between the amount you buy or sell a certain currencies at a specific point of time. As there is not central exchange market in forex, the spread will proportionally vary depending on your preferred forex brokers. Spread can be stretched into two amounts which is dependent if either it is daytime or nighttime. Spread can also vary accordingly to the level of trade. Ideal forex brokers should have a fixed spread.
It is also important to test the execution ability of the forex brokers. Know the speed of the broker’s order execution and there is an automatic execution offer. Know also the loyalty of the brokers. Are they dealing with clients or do they trade also against their clients? The ideal scheme to know all answers is to set up a dummy account.
Ask about the leverage options of your forex brokers. Leverage, which is presented in ratio, will tell you the proportion between the total capital available for trading versus your actual capital. Remember that leverage plays a vital role in the forex trading as the price deviations are set in fractions of a cent. Aim for a forex brokers with flexibility in their leverage margin so as to allow you to opt the leverage that is suitable for you.
Choosing the right forex brokers is very crucial. They play an important role in determining the success of your forex venture or potential loss all your investments. So don’t be a in rush and consider all the possible criteria when choosing your forex brokers.
Forex Trading Made Easy With A Forex Trading Course
The Forex trading market is undeniably one of the biggest and most promising investment market in existence today, with its potential to generate very large amount of profits in a very realistic and achievable manner, and in the shortest time possible to the player who plays his cards right. Everyone engaged in it - even the most experienced and well-trained traders have incurred losses at some point in their trading, especially when they fail to follow up on the set guidelines and principles essential to Forex success. So, before anyone commits one’s self and one’s money to the market, one must first learn how to play the game correctly in order not to get wiped out on the first day of trading by way of a Forex Trading Course.
A Forex Trading Course simply works by instilling within the student/trader all the needed information regarding currency trading, what rules and methods apply for certain trade transactions, and to know the many different strategies to use to help reach favorable trade decisions that ultimately will lead to certain profits. Doing the needed research to help any new trader enter the market easily is fairly easy to do and within anyone’s reach as information and many technical data on the investment market has already been done for many years now.
With a good Forex trading course as your guide, one can progress through the entire process of learning easily and confidently as your growth and development expands and improves with each passing day. It will greatly sharpen your mind and trading skills to the point of making your capabilities as a trader more rounded. You will also be introduced to some of the markets trading software programs that will be essential to your trading activities, and to let you operate the market with ease and confidence.
There are many types of Forex trading softwares online, with some of them being offered for free by some providers, that let you test and practice your new-found skills. Others may offer home training programs that help ease your transition into the real world of Forex trading as simply and easily as can be.
It is vital for those new to Forex trading to get a good education regarding the market and the principles of Forex currency trading, and to know to it by heart, if they want to succeed in it. Once the book learning phase has been duly accomplished, the trader can and should by now know and able to do basic trade analysis of currency fluctuations, make a fair conclusion based on the learned and act on it accordingly. A Forex Trading Course will also provide the trader the know-how on how to manage one’s funds effectively, risk management and many other skill-enhancing plans and strategies to apply in the road to becoming a good, if not, an excellent trader.
Investment in forex starts with a desire to learn and a drive to become a great trader. Learning forex trading signal software takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
Forex Investing Tips To Help You Make More Money
The forex market is the largest money market in world with trillions of dollars in trading daily. The opportunity to make money is great as long as you know what you are doing. There are many benefits to trading forex such as the fact that it can be done from almost anywhere as long as you have a computer with an internet connection. Being a successful forex investor can offer you a lifestyle of great freedom and financial rewards.
It is important to remember that when investing in the forex market, always play with money you can afford to lose. Think of it as a game, so do not invest money that was supposed to be used to put food on the table or pay the rent. Many new investors start by trading small margins and making small profits on each trade. The problem with this approach is that it is not sustainable long term and it does not really work as far as making you the big money.
A better approach is to trade with higher margins and larger amounts per trade. This way you can make more money per trade even after paying broker fees. An important tip to keep in mind is to trade during peak hours since this is when most investors are trading thus the currency fluctuations are more stable and predictable. If you trade during off hours then the biggest investors like the banks can influence price movements and make things very unpredictable and volatile.
In order to succeed at forex trading you need to be able to identify patterns regarding currency movements. There are many software systems out there that can analyze various currency pairs for you and identify possible successful trade opportunities. These kinds of software programs can work well however the best ones will cost you a fair bit of money but the return on investment can make it worth the cost.
There is no miracle shortcut to becoming a top forex investor. Your success will be based on your level of commitment to learning the forex system. Do not get discouraged if your first few trades are not profitable, instead use them as learning experiences that will bring you closer to becoming successful. Finding a good forex broker is also important. Visit online forex forums and read or ask about any worthy brokers. This can be a good strategy to locate quality brokers since these kinds of sites are generally unbiased and offer reliable advice.
There are two kinds of software you can use when getting started with forex investing online. They are web based and client side programs. The web based forex trading platform will require that you register at a specific website and then log in to perform your trading activities. With the client side platform you will need to download and install a program on your computer in order to gain access to the forex markets. Trading forex is a proven way to make money as long as you are willing to learn the game and stick with it.
When Choosing A Forex Signal Provider, Should You Look At Win Percentage?
Are the better traders closer to 100% winning trades, or is that just the way it seems? In contrast, the closer the traders are to 0%; it would seem that they are worse. There is more to trading than winning the most possible trades, even though that seems peculiar. This article will hopefully help fill you in on why I would argue that a 95% win rate is infinitely worse than a 65% win rate.
First we’ll take a look at traders with a low win rate. We will classify 0% to ~40% as low. If a trader fits into this range, then the closer they are to zero probably means the worse they are. Most traders in this lower range are losing traders. You will occasionally find a trader who attempts to catch very large moves with very tight stops. This type of trader may have an extremely low win % and still be a very successful trader.
Next, let us look at the 40% - 70% range. Most of your winning traders will fall somewhere in here. They win not because the majority of their trades are winners with few losers. It is quite possible that have more losing trades than winning ones. Their success comes from their ability to correctly manage their trades once opened. They take advantage of stops that will then be executed more often than not. This looks for all the world like a losing trade, and it is, but a small loser. The traders that can manage their trades effectively most often are the ones that are able to cut their losses and allow their winners to take off. There are very few traders out there who have the discipline to take advantage of this simple concept.
Our final grouping is in the very high range of a percentage of 70 and above. Most people want to fall on the bandwagon of a trader who is close to 100%. Most people are making a mistake; they should actually align themselves with the trader of a much more modest % win rate. Why is that, you may ask? The reason for the high win percentage of these traders is that they are most of the time taking profits off the table as they appear. A working plan if they also cut their losses in the same way. Any trader, though with a 95 % plus win rate is not following this plan. They do not accept small losses and go forward with their trading day. Oh no, they allow a loser to run rampant for all eternity and may even add to that position in some circumstances. You can see that this in time will wipe out many months of winning trades in one blow and the results are disastrous. For every 500 pip winners obtained one at a time, one 500 pip loser negates them all. And yet, this trader falls into our “winning” range of over 99% winning trades and is in reality a big loser.
Do not think for one minute that the reason for this article is to convince you that no trader outside the specified ranges is automatically a losing trader. I’m quite sure that there are traders that are successful with a win percent falling outside of the above ranges. The point of this article is to lead you to thoroughly investigate the trader with the 95% win rate as he could implode upon himself (and you) at any minute.
To learn more about Automated Forex Trading visit Automated Forex Trading Systems.
Myths about Forex Day Trading
To successfully day trade forex, one must have a strategy in mind. Regardless of whether you decide on trading manually or automated the process, you just can’t jump in without a parachute. You need to find something that gives you an advantage over your competitors but also manages your money. Most traders are now turning to expert advisors to diversify their trading strategy and finding a winning robot is crucial. One of the most popular robots out there is Fapturbo.
Fapturbo is a forex robot for the Metatrader 4 platform. It was promgrammed by three experts in the forex industry. They took the already victorious FAPS system and revamped it to make it even superior. After a long period of testing and actually using real cash, they came up with Fapturbo and released it to the general public.
Fapturbo is an asset to both the short-term and long-term trader. The scalping section of the robot is the key element of this package. It is the part that nearly everyone uses. It utilizes four different currency pairs that you can trade. Consisting of the EUR/CHF, EUR/GBP, GBP/CHF, and USD/CAD pairs.
Fapturbo is one of the easiest robots to get into. You simply buy, install, and begin. Not much more to it than that. Besides the fact that you have complete control to fine-tune the settings as you see fit. You can totally customize the trading if you want or run it with the right off the shelf settings. If you really plan to day trade forex, you may want to play around with it to get it really dialed in.
Before you start to successfully day trade forex with Fapturbo, you should absolutely try it out first on demo. There are many brokers out there who have taken a stand against Fapturbo. It is important that you figure out whether this will be of value for you or not on a demo account first. You always want to test out your strategies on a demo account before you go live with real money.
Fapturbo has a built in money management system which can be very beneficial. In the settings you can fine-tune the money management as you see appropriate. If you don’t want to risk much, leave the value small. If you want to risk a larger portion of your account, bump up the value fittingly. This will help you manage your cash based on a percentage of your account. This is a great way to stick to a cash management strategy as your account grows.
Built into Fapturbo is a long-term trading approach as well that will permit you to day trade forex with a different method. This isn’t really the most rewarding strategy according to most traders and must be used with carefulness. It has a very high 500 pip stoploss, so it requires a big account to work on.
Overall, Fapturbo has been one of the most successful expert advisors in the industry. It has allowed quite a few traders to day trade forex full time from their kitchen. With Fapturbo, you can simplify the trading process entirely.
Looking to day trade forex yourself? Make sure you look into http://tradingforexblog.com
Should I Be Using FOREX Signals-Important question for Day Traders
Placing trades in the forex market has to be one of the most electrifying things that you can do in the world of trading. Unlike every other method of trading, foreign exchange trading has massive opportunity within it. Any trade could net you a huge amount of profit. With how dynamic the market is, there is the potential to score an amazing trade at any second. If you can get excellent forex signals, you can make a great living all from your bedroom.
Do you really need to use forex signals? Imagine yourself at your computer analyzing and trying to find the right time to trade. All of a sudden, you get an email that says a trade is approaching. You get prepared, the moment comes, and you make a trade. A little later, you get a second email that says to close the trade out. You were able to score a profit and knowing the market was not necessary. This is what forex signals are and they are very easy to use.
Forex signals lets you take your time back. You no longer have to sit and analyze the markets. You can do whatever you want. Even take a walk. When the time comes you will be notified when to make the trade. Best of all you still have the choice of whether or not you want to. It is not automatically trading for you.
Imagine the freedom forex signals can give you. Having them texted to you phone means that you can go anywhere you want. As long as your close to a trading platform you can trade anywhere. Even from your cell phone if your broker has the feature.
Another huge advantage of forex signals is that you can start right away without researching the markets or losing your personal money to trying out different strategies. Get the signal and place the trade. The only real thing you need to learn is how to use your trading platform. You can get going in less than a day.
Even with the apparent potential of forex signals, you must still be cautious. Forex signals are only great if they win you trades. Despite the fact that your signals may not be perfect, you need to have a good winning percentage. If you’re winning more trades than you are losing, you can make it succeed.
What most people overlook, even with successful forex signals, is a sound money management strategy. Remember that you could win every trade but one, but if bet the bank on that one trade you can still end up losing money. Use a consistent amount of money on every trade. Usually traders use a small percentage of their account no matter what. This allows you to grow with your money.
Forex signals are a must have for any trading toolbox. You are able to take advantage of what the experts know and make a decision to trade yourself based on that information. You can use it as a learning tool or just to make some profit. The choice is yours and it doesn’t get much better than that.
Jim Sullivan has tons of info at http://tradingforexblog.com
Wednesday, October 7, 2009
Forex-The complete information
The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or "FX" or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stocks and futures markets combined! Forex rocks...
Saturday, October 3, 2009
Dollar Carry Trade in “Eight Inning”
The performance of virtually every currency against the Dollar (with the lone, major exception being the British Pound) in the last quarter has been downright impressive. Put another way, the performance of the Dollar has been downright pathetic.
The Dollar’s under-performance is no mystery. While some critics have pointed to long-term weaknesses such as the trade and budget deficits, most of the current impetus continues to come from low US interest rates. As I have reported recently, US short-term rates (based on the 3-month LIBOR rate for Dollars) is already the lowest in the world, and is still moving lower.
As a result, investors have been able to comfortably borrow in Dollars, and invest the proceeds in (comparatively) risky assets, predominantly outside the US. “Low rates have weighed on the dollar as equities have rallied over the summer, leading risk-based traders to buy the higher-yielding euro and commodity-based currencies, such as the Australian dollar, over the safe-haven greenback,” summarized the WSJ.
For most of the last 20 years, such a carry trade strategy would have been most profitable if funded using Yen or Swiss Francs. Since the stock market rally in May, however, buying a basket of emerging market currencies using the Dollar as a funding currency would yield the highest returns, as much as 10% higher than if the same trade had been funded using Yen. Moreover, the Sharpe-ration for such a trade (which seeks to measure the invariability of returns) is the highest when shorting the Dollar, implying that not only is this strategy lucrative, but also comparatively stable.
For a few reasons, however, analysts are beginning to wonder whether the Dollar carry trade has (temporarily) run its course. Technical indicators, for example, suggest that the Dollar may have appreciated too far, too fast. “The U.S. currency rose…after the 14-day relative strength index on the euro- dollar exchange rate climbed yesterday to 74, the highest level since March. A reading of 70 may indicate a rally is approaching an extreme and a reversal is imminent.” Stochastic indicators yield similar interpretations. “Traders have placed an unusually high volume of bearish bets against the U.S. dollar in recent weeks and may want to lock in profits by reversing those trades.” Besides, anecdotal evidence implies that anti-Dollar sentiment may be reaching irrational levels, as every other investors now seems to be betting against the Dollar.
From a rates perspective, the Dollar carry trade may soon become less viable. The markets (as reflected in futures prices) largely expect the Fed to be the first major Central Bank to hike rates, perhaps as soon as 2010 Q2. The ECB, by comparison, is not expected to hike until at least two quarters later, while the Bank of Japan is nowhere even near close to tightening monetary policy. The Fed is also beginning to contemplate possible exit strategies for its quantitative easing programs, which suggests that it is becoming concerned about inflation. One analyst connects this to a decline in the carry trade: “There might be a little bit of nervousness going into the FOMC if they start signaling any potential unwind of quantitative easing. There is a bit of risk over the next couple of days of the dollar starting to recover a little bit of ground.”
Finally, there are concerns that another crisis could trigger a pickup in risk aversion, in which case investors would likely return to the Dollar en masse. Recall that in 2007, when the Japanese Yen carry trade was in vogue, the main concern was volatility. Traders weren’t ever afraid that the BOJ would hike rates. Rather, they feared that some kind of event would inject uncertainty into the markets, making their returns (via the Yen) erratic. If investors suddenly got nervous about the ongoing stock markets rally, then the Dollar could conceivably become more volatile, which would make carry traders think twice.
At the same time, emerging market currencies will continue to offer much higher interest rates than the Dollar. While the Dollar, then, could conceivably become more attractive relative to the Yen, for example, it will remain extremely unattractive compared to high-yielding currencies. The yield differentials are currently so enormous that even if the Fed raised rates tomorrow, it would still be immensely profitable to short the Dollar relative to the Brazilian Real or South African Rand. While the Dollar slump may be reaching an endpoint, a Dollar rally will not necessarily follow. Brace yourself for sideways trading.
Candlestick Chart Analysis
Learn Candlestick Charting. Know these Candlestick Patterns. Get your 82 page free Candlestick Guide now!Candlesticks have become popular in the Western trading community especially the United States in the past decade. However, candlestick charting methods had been developed by Japanese rice traders hundreds of years back.
The advent of internet has leveled the playing field for traders whether they trade stocks, futures, options, commodities, precious metals or currencies. Access to the market is now only one mouse click away.
Market information is now in most cases freely available online. Internet has made commission rates dramatically lower. The result is that a whole generation of new traders and investors want to try their luck beating the market.
I am a great fan of candlesticks charting and I have seen many traders both new and professionals becoming die hard fans of candlestick charting. Why? Because candlestick charting is the best tool available. Can you beat the market? It depends if you are using the right tools.
There are many forms of charting techniques that have been developed over time. Why candlestick charting is superior to other forms of charting like the line charts, bar charts or point and figure charts? One of the best features of candlestick charting is its visual appeal and readability. You can glance at a candlestick chart and quickly gain an understanding of what’s going on with the price action in the market.
Opening and closing price levels can be a very important area of support and resistance from day to day. You can easily spot and opening and closing price of a security or currency on a candlestick chart.
There are certain specific candlestick patterns that can help you identify when is the best time to buy, sell or wait on a trade or investment. This information can be extremely useful for short term traders like day traders and swing traders.
Now in order to trade and invest effectively using candlestick charts you need to understand these candlestick patterns. These candlestick patterns can be a real boon to your trading and you can combine them with other technical indicators for even more reliable results.
Many different types of candlestick patterns can tell you what may lie ahead in the market. Patterns appear on the candlestick charts as simple, single stick occurrences or complex multi stick formations.
You may use the information provided by candlestick patterns to decide when to get into a trade, when to get out of a trade or even when to hang unto a trade you are already in. This information can be highly valuable in knowing that the prevailing trend might reverse or continue.
Download your 82 page candlestick guide here complete with strategy flash cards all free. This is the best candlestick guide in the market and you don’t need to waste your money on buying a guide because this candlestick guide is a complementary gift for you from the Options University.
Metatrader EA Enhances – New US Forex Regulations Go Into Affect
Metatrader Indicator Updates – New US Forex Regulations Implemented
Qualification: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
Have you reviewed the new forex regulations taking affect in the USA that will change the way you are doing trading?
If you are at any Metatrader Broker based in the US at InterbankFX, FXDD you ought to get in touch with them and find out how this will affect your trading. If you desire to continue to do limit orders, hedging and other trading methods, you’ll want to consider shifting to another brokerage.
The Time Is Right Now To Turn To A Different Metatrader Forex Broker
On the whole persons want to maintain with what they’re doing and not have to be bothered about learning a total new set of rules concerning entering orders. The good news summary is you can still do this. Here’s a record of the very best places to go on with your trading via the identical EA’s and same trading tools you are used to.
Metatrader Forex Broker – Best Trading Platform for Forex
What is a Metatrader EA? It is a forex broker that uses our software as its trading platform.
Here’s a list and you can accept the best Metatrader Forex Broker which are using the Metatrader Brokers 4 or 5. The list we are showing below meet all of our criteria for regulation, security of funds and trade execution.
FXCM
http://www.bestmt4brokers.com/fxcm-open-account.htm
This firm is one of the world’s largest and most well renowned Metatrader Brokers and they offer the Forex Metatrader as well as other platforms. You can do hedging with them and the stop and limit orders too as they have a UK division.
Gain Capital.
http://bestmt4brokers.com/gain-open-account.htm
Gain Capital also know as Forex.com is a USA Metatrader EA that has a UK branch as well. They are a well known Metatrader Forex Brokers that does a lot of Television advertising and has a big client base. You can do hedging with them and the discontinue and limit orders too.
Alpari U.K.
http://www.bestmt4brokers.com/alpari-open-account.htm
Alpari U.K has been around the longest and is a Metatrader Broker and which has a good status for having immediate execution. They can only open up accounts for non-USA customers.
FxPro
http://www.bestmt4brokers.com/fxpro-open-account.htm
FxPro has achieved great popularity with their low spread and good execution. They are a well known Metatrader Expert Advisor and can open accounts for nearly any country’s residents.
All of the brokers mentioned have a UK branch as well as their USA branch so it is easy to relocate. For example FXCM and Forex.com have a UK branch that has the Metatrader Indicator 4 available. If you are using one of these brokers you will still need to open a new account at their UK branch and reassign your funds over to it. Relocate your account and open one with Metatrader Broker 4.
www.bestmt4brokers.com website shows many examples of the best Metatrader Indicator for forex trading.
Dax Futures Forex Signals
Learn Futures Trading.Dax Futures is, like, the place to be (if you’re looking for lucrative markets, that is). In case you didn’t know, the Dax market offers impressive liquidity AND is estimated to have a daily volume of about 200,000 contracts. It’s traded from 8:00AM to 10:00PM in Europe, which is 2:00AM to 4:00PM Eastern in the United States – but not to worry, with NetPicks’ Dax Live Signal Service, you’ll only trade during the best hours. Know Dow Futures.
And talk about volatility, for the well-trained trader (or in your case, the well-LEAD trader) there are literally dozens of profit seeking opportunities within a single session. And with the Dax daily price range around 80 points, even day traders can pick up a good 30 to 50 points in ONE move.
Like Netpicks Forex and eMini Futures Live Signal Services, Netpicks offer clear and reliable analysis from the get-go. Netpicks Head Traders actually trade our tried-and-true Universal Market Trader Strategy that focuses on sound principles to keep your profit potential soaring while keeping a watchful eye on risk management. Try Netpicks Forex Signals free for two weeks.
And just check out our results…
*500+ DAX Futures Profit Points in 2 ½ Month (Equals $12,500.00 EUR per contract traded!)
*Over 72% of all trades called live are profitable
*88% of our Trading Sessions have ended profitable
The beauty of the Dax Signal Service is that you’ll have the chance to seriously benefit from the UMT Strategy (retailing for upwards of $1,995.00) without the time-commitment of learning and mastering the system from the very beginning. So the Dax Signal Service is PERFECT for novice trader or traders that want to get into those markets but can’t commit to the time involved in learning a new system.
With the Dax Signal Service, Netpicks promise you the ultimate in convenience! Like,
*EXACT Entries and Exits given for ALL trades
*Only trading during the best and potentially most lucrative times
*A no-stress trading experience – because Netpicks will do all the heavy-lifting for you
Netpicks mantra is, “Get in, get out, get done.” Who has time to be trading from opening bell to closing bell? Certainly not us! Netpicks have got a bigger-picture perspective and encourage all of our traders to trade with a purpose… see your wins and quit while you’re ahead so you can spend time on your life, your family, your friends and hobbies.
And to top it all off, Netpicks wants to give you the exclusive opportunity to try out the Dax Signal Service for two full weeks… at no charge or obligation to continue on with them.
There are alot of Signal Services out there, but not every service is a great fit for you. But with a 2-week test drive, you’ll be able to determine if Netpicks worth the effort (which is minimal at best!).
Nothing is off limits with your 2-week trial – you get full access to everything. Plus, there’s no obligation (because we’re not fans of the evil ‘o’ word). So start your trial today… who knows, the Dax might just be your winning market!
FOREX Bling review
Know forex bling.There are very few times that there is a true match in the forex niche…What do I mean by a “true match”? Well, quite simple…a really good performing forex bot developed by a real KNOWN professional, spitting money on a daily basis WITH live real money proof! I will expand on each of the above elements in a bit but here are some stats that I am sure will warm you up a bit:
-> Over 200 trades in the past 2 months
-> Over 98% accuracy rate on a LIVE real money account.
-> REAL account-doubling proof
-> Very small losers (forget about those robots with a high accuracy rate but the first loser = game over!)
Go to this webpage, scroll down a bit and you will see solid proof of what true, “daily basis” forex income looks like. This thing is truly unbelievable! Discover a revolutionary new forex robot.
NOTE: not only is this real money, but the account statement is hosted with an independent party called MT4LIVE. This is the REAL DEAL. And by the way, the live account details refresh every 5 minutes! This is a real Forex traders dream:
Income on a daily basis…
No waiting, no drawdowns….
As you can see from the live account running on the independent hosting service… real money – day in and day out! Meet Yohanes R. Gagahlin – Real Forex Professional . It was about time that some professionalism came into this niche…Enough of all the B.S. hyped up worthless robots and products that are so common and popular in this niche. Try Netpicks forex signal service free for two weeks.
Yohanes R. Gagahlin, the owner and developer of this spectacular automatic forex solution, is a real professional when it comes to forex. This guy has actually run a successful fund management company called Switch Capital Management since 2006. Not just that, he regularly appears at very important and key forex seminars around the world. You can read more about Yohanes and his level of professionalism by going on the website.
It has been a very, VERY long time since a product designed by a real professional, with real live proof was launched into the market.
Multi-Strategy Robot = Impressive Performance!
If you haven’t seen the live account statement on Johanes’ website, trust me that once you see it you’ll understand the following very well…You do not achieve those kinds of results by just employing a robot with a normal, common-or-garden strategy… No way! Outstanding results like these can only be achieved by outstanding ideas and concepts and that’s where this gets so interesting to be honest!
Johanes has built an automatic trading solution that focuses on extremely well developed strategies that are not limited to a single market behavior/condition. I am talking about an automatic trading solution that captures the absolute best trading opportunities when it comes to scalping, trend and breakout trading… all being done simultaneously. Everything is explained on Johanes’s website.
Thursday, October 1, 2009
Tracking the Forex Signals Easily
Earning profit in the foreign exchange looks daunting to a lot of investors. It seems like a world with worldwide business community who has Swiss bank accounts and move dozens of money with the push of a button. Nevertheless, these traders force out to make good revenue with just a bit of capital investment by knowing how to capitalize on the highs and lows of the market. You are able to acquire how to do the same matter, so don't be afraid.
The internet has revolutionized the forex market. Traders in the market utilize the internet to help them know when and where they should trade. Most beginners think that forex traders are constantly monitoring the market to watch the fluctuation and get in at the exact right moment. Actually, many successful forex traders spend their time with other business ventures. They understand the market because of their experience. That experience tells them when to trade in. Then they use the automatic forex signal alert system to let them know when to trade. This system will utilize modern communication to let traders know when to buy, sell or hold.
The automatic forex signal alert system is a signal system that informs traders of certain changes they should be aware of. A trader can act with confidence because they will know about market changes and be able to take advantage of those changes. There is also the benefit of being able to make real time buys and sells. It will send you messages over email, an interface on your desktop, text on your mobile, or through Short Messaging Service. There is no need for your constant monitoring of the exchange.
Even if you use the forex signals, you must also analyze the data. The signals will simply give you data about lowest points and highest points. You need to analyze this data to understand the best spot to buy and the best to sell. This is just information for the investor. It saves research time. Time is valuable in the market. The data should provide traders with enough knowledge to pick up trends. Making the investment is still up to the individual. Some people make the mistake of thinking technology will do the work for them. Not true. Technology makes it easier to study relevant information. It cuts down the workload and gives you the gems. You still need to do the work to polish those gems. The Forex account signal will help give you the gems; the elbow grease is up to you.
Learn the advanced forex pips spread trading strategies easily at http://www.forextradinginnercircle.com/forex-options-trading-secrets-revealed.
Article Source: http://EzineArticles.com/?expert=Sean_Jr_Miller
Automated Forex System Trading - 3 Things an Automated Forex System Trading Tool Must Have
If you want to be a successful in the Forex market, you may want to find an automated Forex system trading program. There are various software packages available that offer trading advice and make selections for you.
How do you determine which tool is right for you? An automated Forex trading system should offer the following:
- How to Read Candlestick Charts - This is one of the most important aspects of this type of software program. It is imperative that the tool shows you how to read and interpret candlestick charts.
- Assessing Market Direction - Another important aspect of this type of tool is to help you analyze the data and make a determination as to the direction the market is likely to move in. Ideally, you would want the software to offer an opinion as to whether the market that you are trading in will continue in its current direction, reverse its current direction, or if it is just experiencing a temporary, short-term correction.
- Market Timing - The way to make money in the Forex market, or in any market for that matter, is to know when to enter and when to exit trades. It is important that the software that you purchase has indicators that show good entry and exit points.
Find the right automated Forex system trading, and you will be well on your way to making money trading in the Forex market.
Click here to find more information about Automated Forex System Trading
Article Source: http://EzineArticles.com/?expert=Lane_Wright
How to Read Candlestick Charts
If you want to trade in the forex market (or any other market), you need to know how to read candlestick charts. Successful traders, both professionals and amateurs alike, use these charts to improve their trading results.
The chart is essentially a bar chart. Each bar shows the: the opening price, the closing price, the high price and the low price, over a predetermined time period. This time span can be adjusted to show any period. It can show long periods, such as days, weeks, months, or even years. It can also show very shorter time periods, such as partial days, hours, or even minutes.
So how can you use this chart to improve your trading performance? The candlestick chart is a great tool for identifying market direction, which can help you to identify the market's direction. This will help you to know when to enter and just as importantly, when to exit your trades. Knowing when to get in and when to get out of trades is how you can maximize your profits.
The candlestick chart is among most effective ways in which to determine how other traders feel about the market. Traders in all sorts of markets have used it, literally, for centuries. This charting method remains an important and frequently used tool today. The chart is easy to understand, once you know what you are looking at.
This is just a brief overview of how to read candlestick charts. Before trading in the forex, or any other market, you should gain a deeper understanding of how to better use this tool. Once you do, you will see your trading results improve.
Click here for more information about How to Read Candlestick Charts
Article Source: http://EzineArticles.com/?expert=Lane_Wright
A Forex Review Of Forex Megadroid Is Forex Megadroid A Huge Money Maker Or A Scam
A Forex Review Of Forex Megadroid Is Forex Megadroid A Huge Money Maker Or A Scam
The system Forex MegaDroid is one of the most popular and best selling items of its kind ever This Forex review will attempt to explain the reasons behind this tremendous accomplishment This currency trading system is a software product specifically planned and built to help private investors exploit the FX markets for profits . .Due to the achievements it has experienced at exactly this essential factor is the reason behind its explosive growth Today there are well over one hundred Forex trading systems that an individual has to choose from Some of them are very good products, but very few of them are exceptional as is this item at the all important factor of creating income for its users . . .It was developed by Albert Perrie and John Grace with a combination of 38 years of experience as highly lucrative professional currency traders Since a software system is essentially just an extension of the knowledge and experience of the people behind the project it is extremely important that those people are the best of the best in there field Fortunately for all of its clients Albert and John certainly filled there rolls very well . .During testing this product performed excellent That was the only way to put it, since it doubled the first and only funding of my account in approximately fifteen days It was able to do this because of “Reverse Correlated Time And Price Analysis (RCTPA,)” which is a propriety concept that is only available with this product . .The conclusion of this Forex review is that if you don’t have Forex MegaDroid in your weapons arsenal, then you should as soon as possible It is a very powerful income producer for it clients and that is the principle reason for its worldwide success When you have a few minutes, why not check out its website and see for yourself its capabilities?.
Source: www.rsstnx.com
Forex Robots - Can Small Forex Investors Utilize Automatic Forex Trading Robots Efficiently?
The foreign currency exchange market is unpopular to small investors but it is currently the largest and also a very lucrative area of trade and exchange. About three trillion dollars a day is being traded in foreign currency. Foreign exchange, or Forex, usually involves great risk, but with the right timing, tools and data, one can hit it well in a single trade. There are many traders who have lost a lot of deals in the challenging currency exchange market. But advances in technology and breakthroughs in highly technical programs and software have changed how the market is played. The emergence of Forex robots have made it easier for Forex traders to make more money at a shorter period of time.
How is that possible? The Forex robot does all the work from deciding to trading. Foreign exchange consists of complicated mathematical data and involves trading twenty four hours a day with international currency markets all over the world. Political, economic and business factors may influence the currency situation of each country, and the trader should always be aware of such events that may affect the outcome of trading. It is not possible to win in a random foreign exchange trade without a thorough understanding of the currency market situation, not to mention all the Forex rules and strategies. These are some reasons why an ordinary investor hesitates to go into the trading world. The knowledge and information required, plus the time and effort that one should put in it should be substantial for a successful financial trade. The Forex robot can do all these for a small investor and even for beginners in the trading field.
The Forex robot does all the thinking, analysis of recent algorithms and market behavior, and then trades according to the data it has gathered. It does this at a very fast continuous rate, faster and more accurate than a human could do. Forex robots have totally changed how foreign exchange is traded. These robots were developed by experts in this field and replaced all human intervention in the whole foreign exchange process.
There are various Forex robots available and it is up to you to do a research on which one works best for you. It usually installs in the computer in a few minutes and with very simple instructions. With the right Forex robot, foreign exchange is made simpler and less complicated. A small investor can definitely win and easily increase his profits with these simple tools.
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Forex MegaDroid Indisputably Proves A Robot Can Trade With 95.82% Accuracy In EVERY SINGLE Market Condition And At Least Quadruple Every Single Dollar You Deposit. 38 years of combined Forex trading experience delivers Megadroid RCTPA Technology.
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Article Source: http://EzineArticles.com/?expert=Eric_B._Jose
Wednesday, September 30, 2009
Forex Income Engine Is Now Live…
Forex Income Engine, the brand new forex day trading course from Bill Poulos, has just been released onto the market. This course provides you with a full trading system that you can use to trade the forex markets on an intraday basis.
Forex Income Engine is not cheap by any means but as with all of Bill Poulos' other products, it promises to be a top quality product. Bill has been trading the markets for over 30 years and is an expert trader so any products he produces are usually really high quality and a result of a lot of extensive testing and research.
So if you want to learn about a detailed forex trading method you can use every single trading day in order to become a profitable forex day trader, you may like to check out this brand new course. It's designed both for people who want to trade the forex markets all day, and for those people who maybe only have 20-30 minutes a day in which they can trade.
Forex Income Engine has generated quite a lot of excitement with 77,000 people watching the promotional videos of this course. However only 250 copies are being made available so I suggest that you check it out as soon as possible if you think you may be interested in buying this course because it's bound to sell out very quickly.
What Is The Best Time Frame To Trade Forex?
Every trader has their own favourite trading methods and therefore will be drawn to particular time frames. So today I thought I'd discuss which time frame I consider to be the best one, ie the most profitable.
It all depends on your trading strategy of course, but in my experience the best time frame to use is the 4 hour chart.
There are several reasons for this. The first reason is simply because my main trading strategy (see right for more details), which I have been perfecting over the years, generates consistent profits on this particular time frame (with the help of the daily chart for determining the overall trend).
Secondly trading the 4 hour time frame gives you the best of both worlds in that it enables you to generate the kind of profits that a lot of short-term traders are able to generate every single day, whilst ensuring that you don't necessarily have to be sitting at your computer all day long because you only need to be alert when a good set-up looks like presenting itself.
This brings me on to my next point which is that trading the 4 hour charts is a very relaxing way to trade the markets. You can analyze various different currency pairs and really take your time planning your trades. This is certainly not the case with short-term trading where you have little time to think and have to be very quick on the button to realize any gains, or minimize any of your losing trades.
This time frame is just about ideal in my opinion because you can generate winning trades of say 100-200 pips in a single day or you can let them run for a few days to capture 300-500 pips in some instances. Just one of these trades per week can give you an excellent full-time income and I think you would agree that it's much better to spend your week looking for one or two high probability set-ups on this time frame rather than trading lots and lots of positions on the shorter time frames which may only give you 10-20 pips per trade.
Also because each trade doesn't necessarily last that long (often no more than a few days at most) you avoid much of the boredom that arises when you trade the daily or weekly charts, for example. Some people like to trade the daily charts but you do need a great deal of patience. You also need to use fairly large stop losses to ensure that the price ultimately moves in your favour without being stopped out prematurely.
So as I say I personally think the 4 hour time frame is by far and away the best time frame to trade, although different time frames obviously suit different strategies.
Weekly Trading Update - 21-25 September 2009
Well this week could have been a spectacular one but it was sadly a case of missed opportunities. I've been talking about the GBP/USD entering a new downward trend for a few weeks now but when it did finally break downwards this week, it left me behind. I was waiting for a slight pull-back yesterday morning after the initial breakout so I could get a good entry point, but sadly there wasn't one. It was a similar story on the EUR/GBP and GBP/JPY pairs as well, so in the end I only ended up trading two positions.
The first trade was on the EUR/USD pair early Tuesday morning. The daily Supertrend was green, ie bullish, so I was still looking for long positions on the 4 hour chart, and I went long after an upwards EMA crossover at 1.4710. I then closed half the position for 50 points and let the other half run, moving my stop loss to break-even. Sadly my target price of 1.4850 didn't quite get triggered, and worse still the price then fell back to take me out at break-even.
(There was another upwards EMA crossover on this pair but I didn't trade this one as I thought the upward trend was starting to run out of momentum).
The second trade was slightly more profitable. It was on the USD/JPY later that day. I went short after a downwards EMA crossover at 91.41 and then closed half the position for 40 points and the second half of the position for a further 40 points at 90.61.
So it was still a profitable week but as I say it could have been a hugely profitable week if I could have got a few good entry points on some of the big movers.
(If you would like to find out more about my main 4 hour trading strategy, you can access it for free when you subscribe to my newsletter. Simply fill in the short form above).
source:http://theforexarticles.com/2009/09/25/weekly-trading-update-21-25-september-2009/
Monday, September 28, 2009
Forex Trading - Support And Resistance
The concepts of support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as one of the most important concepts in Forex trading. These terms are used by traders to refer to price levels on charts that tend to act as barriers from preventing the price of an asset from getting pushed in a certain direction. At first the explanation and idea behind identifying these levels seems easy, but as you'll find out, support and resistance can come in various forms and it is much more difficult to master than it first appears.
What is Support?
A support level is a price level where the price tends to find support as it is going down. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely to continue dropping until it finds another support level. Support does not always hold and a break below support signals that the bears have won out over the bulls. A decline below support indicates a new willingness to sell and/or a lack of incentive to buy. Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices. In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once support is broken, another support level will have to be established at a lower level.
What is Resistance?
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds another resistance level. Resistance does not always hold and a break above resistance signals that the bulls have won out over the bears. A break above resistance shows a new willingness to buy and/or a lack of incentive to sell. Resistance breaks and new highs indicate buyers have increased their expectations and are willing to buy at even higher prices. In addition, sellers could not be coerced into selling until prices rose above resistance or above the previous high. Once resistance is broken, another resistance level will have to be established at a higher level.
Testing the Levels
One thing you should remember is that levels of support and resistance are not always accurate figures. You will often see a support or resistance level that seems to be broken, but soon you will realize that the market was only testing it. On candlestick charts those tests are marked with shadows as you can see on the picture below. It seemed as if the market will pass the resistance level, but later it was obvious that it was just a test. There is no easy way of knowing if the resistance or support will be broken through.
Support Equals Resistance
Another principle of technical analysis stipulates that support can turn into resistance and vice versa. Once the price breaks below a support level, the broken support level can turn into resistance. The break of support signals that the forces of supply have overcome the forces of demand. Therefore, if the price returns to this level, there is likely to be an increase in supply, and hence resistance.
The other turn of the coin is resistance turning into support. As the price advances above resistance, it signals changes in supply and demand. The breakout above resistance proves that the forces of demand have overwhelmed the forces of supply. If the price returns to this level, there is likely to be an increase in demand and support will be found.
Trading Range
Trading ranges can play an important role in determining support and resistance as turning points or as continuation patterns. A trading range is a period of time when prices move within a relatively tight range. This signals that the forces of supply and demand are evenly balanced. When the price breaks out of the trading range, above or below, it signals that a winner has emerged. A break above is a victory for the bulls (demand) and a break below is a victory for the bears (supply).
Support and Resistance Zones
Because technical analysis is not an exact science, it is useful to create support and resistance zones. Each security has its own characteristics, and analysis should reflect the intricacies of the security. Sometimes, exact support and resistance levels are best, and, sometimes, zones work better. Generally, the tighter the range, the more exact the level. If the trading range spans less than 2 months and the price range is relatively tight, then more exact support and resistance levels are best suited. If a trading range spans many months and the price range is relatively large, then it is best to use support and resistance zones. These are only meant as general guidelines, and each trading range should be judged on its own merits.
Trend Lines
Trend lines are probably the most common form of technical analysis that is used today, but they are also one of the least-used. A trend line is formed when you can draw a diagonal line between two or more price pivot points. They are commonly used to judge entry and exit investment timing when trading securities.
A trend line is a bounding line for the price movement of a security. A support trend line is formed when a securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot points. Similarly a resistance trend line is formed when a securities price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points.
If they are drawn accurately, trend lines can be a very useful and precise technical analysis method. Unfortunately, most of the Forex traders don’t draw them correctly or try to draw a line in a way that the lines correspond to the market, instead of making it the other way around.
The support or resistance of an identified level, whether discovered with a trend line or through any other method, is deemed to be stronger the more times that the price has historically been unable to move beyond it. Many technical traders will use their identified support and resistance levels to choose strategic entry or exit prices because these areas often represent the prices that are the most influential to an asset's direction. Most traders are confident at these levels in the underlying value of the asset so the volume generally increases more than usual, making it much more difficult for traders to continue driving the price higher or lower.
Round Numbers
Another common characteristic of support or resistance is that an asset's price may have a difficult time moving beyond a round price level. Most inexperienced traders tend to buy or sell assets when the price is at a whole number because they are more likely to feel that a stock is fairly valued at such levels. Most target prices or stop orders set by either retail investors or large investment banks are placed at round price levels. Because so many orders are placed at the same level, these round numbers tend to act as strong price barriers. If all the clients of an investment bank put in sell orders at a suggested target of , it would take an extreme number of purchases to absorb these sales and, therefore, a level of resistance would be created.
Conclusion
Determining future levels of support can drastically improve the returns of a short-term investing strategy because it gives traders an accurate picture of what price levels should prop up the price of a given security in the event of a correction. Conversely, foreseeing a level of resistance can be advantageous because this is a price level that could potentially harm a long position because it signifies an area where investors have a high willingness to sell the security. As mentioned above, there are several different methods to choose when looking to identify support or resistance, but regardless of the method, the interpretation remains the same - it prevents the price of an underlying from moving in a certain direction.
What is Support?
A support level is a price level where the price tends to find support as it is going down. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely to continue dropping until it finds another support level. Support does not always hold and a break below support signals that the bears have won out over the bulls. A decline below support indicates a new willingness to sell and/or a lack of incentive to buy. Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices. In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once support is broken, another support level will have to be established at a lower level.
What is Resistance?
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds another resistance level. Resistance does not always hold and a break above resistance signals that the bulls have won out over the bears. A break above resistance shows a new willingness to buy and/or a lack of incentive to sell. Resistance breaks and new highs indicate buyers have increased their expectations and are willing to buy at even higher prices. In addition, sellers could not be coerced into selling until prices rose above resistance or above the previous high. Once resistance is broken, another resistance level will have to be established at a higher level.
Testing the Levels
One thing you should remember is that levels of support and resistance are not always accurate figures. You will often see a support or resistance level that seems to be broken, but soon you will realize that the market was only testing it. On candlestick charts those tests are marked with shadows as you can see on the picture below. It seemed as if the market will pass the resistance level, but later it was obvious that it was just a test. There is no easy way of knowing if the resistance or support will be broken through.
Support Equals Resistance
Another principle of technical analysis stipulates that support can turn into resistance and vice versa. Once the price breaks below a support level, the broken support level can turn into resistance. The break of support signals that the forces of supply have overcome the forces of demand. Therefore, if the price returns to this level, there is likely to be an increase in supply, and hence resistance.
The other turn of the coin is resistance turning into support. As the price advances above resistance, it signals changes in supply and demand. The breakout above resistance proves that the forces of demand have overwhelmed the forces of supply. If the price returns to this level, there is likely to be an increase in demand and support will be found.
Trading Range
Trading ranges can play an important role in determining support and resistance as turning points or as continuation patterns. A trading range is a period of time when prices move within a relatively tight range. This signals that the forces of supply and demand are evenly balanced. When the price breaks out of the trading range, above or below, it signals that a winner has emerged. A break above is a victory for the bulls (demand) and a break below is a victory for the bears (supply).
Support and Resistance Zones
Because technical analysis is not an exact science, it is useful to create support and resistance zones. Each security has its own characteristics, and analysis should reflect the intricacies of the security. Sometimes, exact support and resistance levels are best, and, sometimes, zones work better. Generally, the tighter the range, the more exact the level. If the trading range spans less than 2 months and the price range is relatively tight, then more exact support and resistance levels are best suited. If a trading range spans many months and the price range is relatively large, then it is best to use support and resistance zones. These are only meant as general guidelines, and each trading range should be judged on its own merits.
Trend Lines
Trend lines are probably the most common form of technical analysis that is used today, but they are also one of the least-used. A trend line is formed when you can draw a diagonal line between two or more price pivot points. They are commonly used to judge entry and exit investment timing when trading securities.
A trend line is a bounding line for the price movement of a security. A support trend line is formed when a securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot points. Similarly a resistance trend line is formed when a securities price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points.
If they are drawn accurately, trend lines can be a very useful and precise technical analysis method. Unfortunately, most of the Forex traders don’t draw them correctly or try to draw a line in a way that the lines correspond to the market, instead of making it the other way around.
The support or resistance of an identified level, whether discovered with a trend line or through any other method, is deemed to be stronger the more times that the price has historically been unable to move beyond it. Many technical traders will use their identified support and resistance levels to choose strategic entry or exit prices because these areas often represent the prices that are the most influential to an asset's direction. Most traders are confident at these levels in the underlying value of the asset so the volume generally increases more than usual, making it much more difficult for traders to continue driving the price higher or lower.
Round Numbers
Another common characteristic of support or resistance is that an asset's price may have a difficult time moving beyond a round price level. Most inexperienced traders tend to buy or sell assets when the price is at a whole number because they are more likely to feel that a stock is fairly valued at such levels. Most target prices or stop orders set by either retail investors or large investment banks are placed at round price levels. Because so many orders are placed at the same level, these round numbers tend to act as strong price barriers. If all the clients of an investment bank put in sell orders at a suggested target of , it would take an extreme number of purchases to absorb these sales and, therefore, a level of resistance would be created.
Conclusion
Determining future levels of support can drastically improve the returns of a short-term investing strategy because it gives traders an accurate picture of what price levels should prop up the price of a given security in the event of a correction. Conversely, foreseeing a level of resistance can be advantageous because this is a price level that could potentially harm a long position because it signifies an area where investors have a high willingness to sell the security. As mentioned above, there are several different methods to choose when looking to identify support or resistance, but regardless of the method, the interpretation remains the same - it prevents the price of an underlying from moving in a certain direction.
Japan's Currency Hits a 7 Month High
The Yen rose to a 7 month high versus the Dollar as Japan's new government reiterated its opposition to pursuing deliberate currency devaluation strategy. The Sterling dropped to a 3 month low versus the Dollar last week after Bank of England Governor Mervyn King was quoted as saying the Pound's weakness is aiding in stabilizing the U.K.'s economy. Today's trading day will likely experience the markets reaction to the G20 leaders' decisions, mainly their pledge to continue supporting the stimulus efforts.
USD - USD Falls below 90.00 Yen
The Dollar weakened on Friday after a set of mixed U.S economic reports as well as reports that the G20 leaders will continue to provide support for the global economy. The Dollar index fell to 76.774 Friday, down from 76.901 late Thursday. The Dollar remained down more than 1% versus the Japanese Yen after statements by Japan's Finance Minister Hirohisa Fujii that he opposes intervening in the currency markets to curb the rise in the Yen.
Orders of durable goods unexpectedly fell 2.4% in August. Sales of new homes rose 0.7% to a 429,000 pace in August, much slower than the expected 442,000. On the other hand, the Reuters-University of Michigan consumer sentiment index was revised to 73.5 in September, compared to a previous estimate of 70.2 and 65.7 in August, beating analysts expectations.
No news events are expected today form the U.S; therefore, it is likely that Dollar sentiment will be determined by investors' reactions to the G20 concluding statements.
EUR - Sterling Trades at a 3 Month Low vs. USD
The Sterling dropped to a 3 month low below $1.60 last week after Bank of England (BOE) Governor Mervyn King was quoted stating the Pound's weakness is aiding in the recovery of the U.K economy. The EUR traded at $1.4665, up 0.2% from Thursday.
The Sterling slid 2.1% versus the Dollar last week following very dovish announcements by BOE Governor Mervyn King, calling the Pound's recent drop “very helpful.” The Pound fell Friday to $1.5918, the lowest level since June 8, and depreciated to 91.19 per ERU, the weakest level since April 1.
While a rather slow news day is expected today, ECB president Trichet's speech at 2:30 GMT is likely to provide volatility to the EUR as interest rate targets and exit strategies are likely to be discussed.
JPY - Yen at a 7 Month high versus the Dollar
The Yen registered sharp gains Friday, breaching the significant Y90.00 barrier against the Dollar and reaching the highest levels versus the greenback in over 7 months. Japan's currency benefited from supportive comments from Japan's finance minister Hirohisa Fujii who said that he opposes intentional devaluation of the Yen.
The JPY advanced 1.8% this week to 89.64 per Dollar from 91.29 on Sept. 18, briefly touching 89.51 Friday, the strongest level since Feb. 5. The currency also gained 2% to 131.70 per ERU, from 134.33.
Crude Oil - Crude Prices up Slightly on Mixed Data
At the end of a very volatile trading day Friday, Crude Oil futures rose slightly, for the first session in 3, following the release of mixed economic data from the U.S as well as on increased odds of broad based sanctions against Iran, the world's 4th largest Oil producer. Crude for November delivery rose 13 cents, or 0.2%, to end at $66.20 a barrel on the New York Mercantile Exchange, after dropping as low as $65.05, the lowest level since July 30. Overall futures tumbled more than 8% this week, the biggest weekly loss in more than two months.
The unexpected jump in the Reuters/UoM Consumer Sentiment Index to 73.5 in September helped push up Oil prices; however, concerns over weak demand dampened Friday's gains. Furthermore, several worse than expected economic data from the U.S stemmed further Oil's Gains.
With last Wednesday's report by the Energy Information Administration (EIA) stating that inventories of Crude Oil, gasoline and other petroleum products all rose last week and a lack of any significant economic news today, Oil prices will likely continue to stay subdued throughout today's trading day.
Article Source - Japan's Currency Hits a 7 Month High
USD - USD Falls below 90.00 Yen
The Dollar weakened on Friday after a set of mixed U.S economic reports as well as reports that the G20 leaders will continue to provide support for the global economy. The Dollar index fell to 76.774 Friday, down from 76.901 late Thursday. The Dollar remained down more than 1% versus the Japanese Yen after statements by Japan's Finance Minister Hirohisa Fujii that he opposes intervening in the currency markets to curb the rise in the Yen.
Orders of durable goods unexpectedly fell 2.4% in August. Sales of new homes rose 0.7% to a 429,000 pace in August, much slower than the expected 442,000. On the other hand, the Reuters-University of Michigan consumer sentiment index was revised to 73.5 in September, compared to a previous estimate of 70.2 and 65.7 in August, beating analysts expectations.
No news events are expected today form the U.S; therefore, it is likely that Dollar sentiment will be determined by investors' reactions to the G20 concluding statements.
EUR - Sterling Trades at a 3 Month Low vs. USD
The Sterling dropped to a 3 month low below $1.60 last week after Bank of England (BOE) Governor Mervyn King was quoted stating the Pound's weakness is aiding in the recovery of the U.K economy. The EUR traded at $1.4665, up 0.2% from Thursday.
The Sterling slid 2.1% versus the Dollar last week following very dovish announcements by BOE Governor Mervyn King, calling the Pound's recent drop “very helpful.” The Pound fell Friday to $1.5918, the lowest level since June 8, and depreciated to 91.19 per ERU, the weakest level since April 1.
While a rather slow news day is expected today, ECB president Trichet's speech at 2:30 GMT is likely to provide volatility to the EUR as interest rate targets and exit strategies are likely to be discussed.
JPY - Yen at a 7 Month high versus the Dollar
The Yen registered sharp gains Friday, breaching the significant Y90.00 barrier against the Dollar and reaching the highest levels versus the greenback in over 7 months. Japan's currency benefited from supportive comments from Japan's finance minister Hirohisa Fujii who said that he opposes intentional devaluation of the Yen.
The JPY advanced 1.8% this week to 89.64 per Dollar from 91.29 on Sept. 18, briefly touching 89.51 Friday, the strongest level since Feb. 5. The currency also gained 2% to 131.70 per ERU, from 134.33.
Crude Oil - Crude Prices up Slightly on Mixed Data
At the end of a very volatile trading day Friday, Crude Oil futures rose slightly, for the first session in 3, following the release of mixed economic data from the U.S as well as on increased odds of broad based sanctions against Iran, the world's 4th largest Oil producer. Crude for November delivery rose 13 cents, or 0.2%, to end at $66.20 a barrel on the New York Mercantile Exchange, after dropping as low as $65.05, the lowest level since July 30. Overall futures tumbled more than 8% this week, the biggest weekly loss in more than two months.
The unexpected jump in the Reuters/UoM Consumer Sentiment Index to 73.5 in September helped push up Oil prices; however, concerns over weak demand dampened Friday's gains. Furthermore, several worse than expected economic data from the U.S stemmed further Oil's Gains.
With last Wednesday's report by the Energy Information Administration (EIA) stating that inventories of Crude Oil, gasoline and other petroleum products all rose last week and a lack of any significant economic news today, Oil prices will likely continue to stay subdued throughout today's trading day.
Article Source - Japan's Currency Hits a 7 Month High
Wednesday, August 12, 2009
Make money fast using Forex
This is all about making a fortune with Forex. Most traders just go with the flow and make average gains, with this article you will learn what makes some traders stand out and a lot richer than others!
We are going to assume that you know how to trade, and has quite an experience in trading.
With simple changes in your trade selection, money and risk management, and mindset, you can change that average gains into larger ones!
Fast money is in Forex, it is a lifestyle. here is it how its done.
Tip 1 . Embrace Changeability and Risk With a Smile
Forex systems have instability.
If you cannot manage and calculate your risk, then don't ever think about trading in Forex. Many traders back away from forex because of this ( why do you even traded in the first place?). But taking manageable risks has its rewards.
It's just simple, you know what your losing if ever it doesn't work out, yet what you gain is unpredictable but sure is high! That is what I call excitement, my friend.
To a well-educated Forex trader, this is something you shouldn't be afraid of, might as well embrace it.
Tip 2. Trade Less, gain more
Most traders think that if they don't trade, another door has closed, or miss some move. The tendency, they trade frequently. Most of the trades that come big come a few times in a year. Focus on the trades that make the really big gains. Be alert, and informed.
Tip 3. Diversify is a no-no
Most Investors accept the fact that diversification can make money fast - in reality it does exactly the opposite.
Tip 4. Money and Risk Management
This article has been concentrating on the Big gains, because this is your money, so every penny should be controlled, this is where money management kicks in.
Control your risks, but increase your chances of success:
- Give yourself staying power by buying options at or in the money, this prevents you from getting stopped out. Many traders lose not by the market direction, but because they were stopped out by a instable move, and options will give you staying power.
- Keep your stop in its original position - until the move is well in profit, before moving it up.
- Trading fast and selectively - have the courage to trade when you feel it is good. and enjoy the cash.
Tip 5. Compound growth has its benefits
The way to make money fast in forex, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over a million dollars, in under 10 years.
Break the norm, and gain more. Follow some of these tips and make your way into the big gains!
Thursday, August 6, 2009
Asian Markets reach 5 month high
Current Futures: Dow +25.00, S&P +2.40, NASDAQ +3.25
Every major Asian stock market advanced on Thursday, following the strong positive momentum seen during the U.S. trading hours. The strongest gains were seen in the Hong Kong’s Hang Seng index, which advanced 1.90%, after Datang International Power Generation reported better than expected results.
Helped by the strong gains seen during the last few weeks, the MSCI Asia Pacific index, which tracks the performance of the most developed 14 countries in the Asia Pacific region, reached a five-month high. At the same time, the Japanese index Nikkei is trading at the highest value it has touched over the previous 10 months, despite another round of weak macroeconomic data.
During the Asian session, a report showed that the Japanese unemployment rate reached 5.4% in June, the highest rate seen over the last six years. In Japan as well, the CPI report showed that prices declined 1.7% in June from one year earlier, the strongest pace ever recorded. For years, the Japanese central bank has tried to fight deflation, but until now, it has never really succeeded. Nowadays, the BoJ infuses massive amounts of liquidity into the inter-banking system, but still has had little effect on the real economy. Some economists argue that the Japanese economy had has run into a liquidity trap, since the economy cannot absorb any more liquidity.
Overnight, the Japanese Nikkei added 139.69 points (1.37%) to 10,304.90. The Australian S&P/Asx advanced 46.70 points (1.11%) to 4,237.10
Crude oil for August delivery was recently trading at $67.40 per barrel, up by $0.40.
Gold for August delivery was recently trading higher by $2.40 to $939.70.
TeamLFB provides forex related market analysis and trade signals
Every major Asian stock market advanced on Thursday, following the strong positive momentum seen during the U.S. trading hours. The strongest gains were seen in the Hong Kong’s Hang Seng index, which advanced 1.90%, after Datang International Power Generation reported better than expected results.
Helped by the strong gains seen during the last few weeks, the MSCI Asia Pacific index, which tracks the performance of the most developed 14 countries in the Asia Pacific region, reached a five-month high. At the same time, the Japanese index Nikkei is trading at the highest value it has touched over the previous 10 months, despite another round of weak macroeconomic data.
During the Asian session, a report showed that the Japanese unemployment rate reached 5.4% in June, the highest rate seen over the last six years. In Japan as well, the CPI report showed that prices declined 1.7% in June from one year earlier, the strongest pace ever recorded. For years, the Japanese central bank has tried to fight deflation, but until now, it has never really succeeded. Nowadays, the BoJ infuses massive amounts of liquidity into the inter-banking system, but still has had little effect on the real economy. Some economists argue that the Japanese economy had has run into a liquidity trap, since the economy cannot absorb any more liquidity.
Overnight, the Japanese Nikkei added 139.69 points (1.37%) to 10,304.90. The Australian S&P/Asx advanced 46.70 points (1.11%) to 4,237.10
Crude oil for August delivery was recently trading at $67.40 per barrel, up by $0.40.
Gold for August delivery was recently trading higher by $2.40 to $939.70.
TeamLFB provides forex related market analysis and trade signals
(from forexpros.com News)
Economic Indicators
Economic indicators are those signals that are all around that will show you which direction the market is currently heading. It is vital to your success as a Forex trader that you keep one ear on the ground to know what is happening in a wide range of economic areas so as to stay aware of what is happening, locally and internationally. This will enable you to make the best decisions possible regarding the investments you have already made and helping you know which ones you should be making.
Some of the indicators to watch out for are:
While these are just a few of the economic indicators that you, the Forex trader, should be aware of, it is important to recognize that there are many, many more indicators to watch out for. Forex Justice can help you in knowing what is happening economically around the world. It’s just that simple to sign up and have the very best help and expertise available!
Some of the indicators to watch out for are:
- Retail Sales: By way of definition, retail sales, as indicated by their name, is simply a projected estimate of what sales will be by retail shops in the US. These are usually released monthly in advance and are usually not adjust for inflation. In order for this report to be generated, a sampling of receipts from participating retailers is compiled. The importance of this in relation to Forex trading is that it is a valuable indicator of which industries and more specifically, which companies are worth investing your money into.
- Existing Home Sales: Existing homes are homes that have been standing for a while, while the rest are newly constructed. The rate at which homes are being sold can provide you, the trader, with important clues into the economic situation. For example, some sellers might sell one home to make a profit and use that profit to buy new furniture for their new homes. That could be an indication that the furniture industry will be booming very soon. Interest rates are also influential to the Forex trading industry and also affect existing home sales. These are all things to look out for when you get into Forex trading.
- Leading Indicators: Traders use these types of indicators to forecast upcoming changes in the market. Because leading indicators might change before the market actually changes, these are important principles to pay attention to in order to invest wisely. It is important to realize and understand that leading indicators are only indicators and cannot precisely foretell where the market is heading: they are only predictors.
- Trade Balance: Trade balance compares a country’s economical imports to its exports. If the country is experiencing a trade surplus, then the exports going out are more than the imports coming in. Opposite of this is when a country is experiencing trade deficit – the trade balance is in the negative with more goods being imported the exported. This aspect is foundational to successful Forex trading because the trade balance relies on the exchange rates between two particular countries. Trade balance will also be a source of important information regarding the exchange of those two countries’ currencies.
While these are just a few of the economic indicators that you, the Forex trader, should be aware of, it is important to recognize that there are many, many more indicators to watch out for. Forex Justice can help you in knowing what is happening economically around the world. It’s just that simple to sign up and have the very best help and expertise available!
Forex Quotes
Understanding Forex Quotes
Reading a foreign exchange quote is simple if you remember two things:
When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.
Majors not based on the US dollar
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). For these pairs, where USD is not the base currency, a rising quote means the US dollar is weakening and buys less of the other currency than before.
In other words, if a currency quote goes higher, the base currency is getting stronger. A lower quote means the base currency is weakening.
Cross currencies
Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same.
Bids, asks and the spread
Just like other markets, forex quotes consist of two sides, the bid and the ask:
The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency.
What's a pip?
Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%.
For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies.
Reading a foreign exchange quote is simple if you remember two things:
- The first currency listed is the base currency
- The value of the base currency is always 1.
When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.
Majors not based on the US dollar
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). For these pairs, where USD is not the base currency, a rising quote means the US dollar is weakening and buys less of the other currency than before.
In other words, if a currency quote goes higher, the base currency is getting stronger. A lower quote means the base currency is weakening.
Cross currencies
Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same.
Bids, asks and the spread
Just like other markets, forex quotes consist of two sides, the bid and the ask:
The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency.
What's a pip?
Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%.
For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies.
Forex Brokers
The traditional definition of a forex broker is one who puts buyers and sellers together for a commission or fee. Many forex brokers make their money by charging you a spread, the difference between the buying and selling prices for a currency pair.
Spreads greatly impact your forex returns and vary depending on the type of account you open. As buying low and transacting high is the trader’s goal, a wider spread means you have to pay more when you buy and wind up with less when you sell. In some cases, your broker gets the difference, which is added onto the price of the trade. Spreads often narrow or widen depending on market liquidity and other factors. You can learn a lot by watching the video tutorial on spreads located on our forex guide page.
Pips (Percentage in Points) are the smallest price unit of a forex currency, which is quoted to the fourth decimal point. Spreads, one of the primary costs of your forex trading, are measured in pips and the slightest variances can make a big difference. The Forex Justice reviewswill help you determine which forex brokers offer the best spreads and pips.
I have worked with many different types of forex brokers and have witnessed the haphazard ways in which clients’ investments were distributed. In many cases, the trading transaction would go into a ‘bucket’, and never actually execute. My heart would go out to the scores of clients who had quit their day jobs, anticipating income from trading forex, only to learn their profits had disappeared due to some alleged violation. In reality, there was no profit to deliver since the buy/sell trade never happened and the broker had to come up with an excuse. These types of brokers operate in what’s commonly known in the forex industry as a “bucket shop.”
From Electronic Communication Networks (ECNs) to retail forex companies, the type of forex broker chosen is a factor in the timeliness and return on your investment. ECNs do not trade against you and act as an Interbank broker in the free market by connecting the major banks and brokerages with individual forex traders. The spreads may be smaller but you know upfront what you’re paying for the service – either a flat fee or commission.
Retail forex companies are glorified bucket shops and are often referred to as market makers, since they essentially create their own trading markets. Spreads are arbitrarily decided, trades are made against you, and profits are distributed at the broker’s discretion. Retail forex companies are attractive to newcomers and those short on cash because they don’t require large investments. If you don’t mind running the risk of having your profits disappear on a whim, then retail forex companies are a good place to learn the ins and outs of forex trading. They allow you to demo trade on their platforms until you know what you’re doing and give you unusually high leverage.
Of the two types of brokers, a forex ECN broker is the more legitimate. They provide a place where banks, traders, and multiple market makers can enter competing bids and offers around the spread amount. Unlike a dealing desk, bank quotes are consolidated and orders are matched to the best bid/offer price on which traders are permitted to trade. Although minimum trade requirements are often higher and leverage is lower, prices are not manipulated, profits can be more stable, and trades are passed to a real trader, the Interbank.
When honestly executed, forex spreads can be a valid indicator of what’s happening with your trade. After years of mistakes and believing everything I was told, I now know to look for the red flags, such as reverse pips, rejected transactions, tight spreads, and delayed executions. These are common strategies used to deceive many forex traders.
The best advice I can give you when selecting a forex broker is to read forex reviews . Learn what others are saying about forex brokers before you make a decision.
Spreads greatly impact your forex returns and vary depending on the type of account you open. As buying low and transacting high is the trader’s goal, a wider spread means you have to pay more when you buy and wind up with less when you sell. In some cases, your broker gets the difference, which is added onto the price of the trade. Spreads often narrow or widen depending on market liquidity and other factors. You can learn a lot by watching the video tutorial on spreads located on our forex guide page. Pips (Percentage in Points) are the smallest price unit of a forex currency, which is quoted to the fourth decimal point. Spreads, one of the primary costs of your forex trading, are measured in pips and the slightest variances can make a big difference. The Forex Justice reviewswill help you determine which forex brokers offer the best spreads and pips.
I have worked with many different types of forex brokers and have witnessed the haphazard ways in which clients’ investments were distributed. In many cases, the trading transaction would go into a ‘bucket’, and never actually execute. My heart would go out to the scores of clients who had quit their day jobs, anticipating income from trading forex, only to learn their profits had disappeared due to some alleged violation. In reality, there was no profit to deliver since the buy/sell trade never happened and the broker had to come up with an excuse. These types of brokers operate in what’s commonly known in the forex industry as a “bucket shop.”
From Electronic Communication Networks (ECNs) to retail forex companies, the type of forex broker chosen is a factor in the timeliness and return on your investment. ECNs do not trade against you and act as an Interbank broker in the free market by connecting the major banks and brokerages with individual forex traders. The spreads may be smaller but you know upfront what you’re paying for the service – either a flat fee or commission.
Retail forex companies are glorified bucket shops and are often referred to as market makers, since they essentially create their own trading markets. Spreads are arbitrarily decided, trades are made against you, and profits are distributed at the broker’s discretion. Retail forex companies are attractive to newcomers and those short on cash because they don’t require large investments. If you don’t mind running the risk of having your profits disappear on a whim, then retail forex companies are a good place to learn the ins and outs of forex trading. They allow you to demo trade on their platforms until you know what you’re doing and give you unusually high leverage.
Of the two types of brokers, a forex ECN broker is the more legitimate. They provide a place where banks, traders, and multiple market makers can enter competing bids and offers around the spread amount. Unlike a dealing desk, bank quotes are consolidated and orders are matched to the best bid/offer price on which traders are permitted to trade. Although minimum trade requirements are often higher and leverage is lower, prices are not manipulated, profits can be more stable, and trades are passed to a real trader, the Interbank.
When honestly executed, forex spreads can be a valid indicator of what’s happening with your trade. After years of mistakes and believing everything I was told, I now know to look for the red flags, such as reverse pips, rejected transactions, tight spreads, and delayed executions. These are common strategies used to deceive many forex traders.
The best advice I can give you when selecting a forex broker is to read forex reviews . Learn what others are saying about forex brokers before you make a decision.
Latest Market Dollar Rates
LONDON, Aug 3 (Reuters) - Following are the middle exchange rates for leading currencies against the dollar:
CURRENT HIGH LOW Euro 1.4244 1.4308 1.4231 Japanese Yen 94.64 94.85 94.63 British Pound 1.6724 1.6776 1.67 Swiss Franc 1.0706 1.0723 1.066 Danish Crown 5.2268 5.2323 5.2051 Norwegian Crown 6.1159 6.1274 6.095 Swedish Crown 7.1985 7.2182 7.158 Australian Dollar 0.8372 0.8393 0.8341 Brazilian Real 1.8642 1.8642 1.8647 Canadian Dollar 1.0777 1.0788 1.0753 Hong Kong Dollar 7.7499 7.7501 7.7501 Mexican Peso 13.205 13.205 13.209 Russian Rouble 31.224 31.4935 31.228 Singapore Dollar 1.4366 1.4395 1.4365 South African Rand 7.715 7.781 7.7307
(source:http://www.forexpros.com/news/forex-news/market-dollar-rates-at-0600-gmt---aug-3-75827)
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