Many traders grapple with this all the time. To me it’s clear. The “trend is the trend” because it continues on and blows through supports in a downtrend and resistances in an uptrend.
A current example of this is AUD/USD. Get ready for the AUD/USD to break higher as the “bottom and top pickers” try to short this pair soon (since they are believers that the resistance will hold). The trend traders will get the last laugh, as the top pickers get caught on the wrong side of the market and have to scramble to cover their losing positions which only “fuels the fire” for the trend trader
Thursday 17 September 2009
Sending Signals For Trading In Forex
Forex signals are sent by a forex firm to their subscribers in order to buy and sell currencies. These signals are called entry and exit signals for the forex dealers. The firms, which send this forex signal, do so after tedious and meticulous research and analysis into the currencies that their dealers are trading in. For example a firm may send the entry and exit signals at designated time frames in real time. These will remain valid for a short period only after which they are going to be different.
Let's say that there is a forex trading company say Acme Forex traders who send entry and exit signals to their clients in the following way
The first signal is provided to the trader at 08:30, and this signal is going to remain actual till 12.30 The trader will receive the second signal at 12.30, which would remain actual till 16.30.
The last signal would be sent to the trader at 16.30.
The transactions are given according to GMT. Please adjust for local time changes. The transaction shall be calculated till the signal is actual. The charges would be $300 per month per trader.
Forex dealers and experts provide forex-trading information and data to both institutional clients and individual investors and provide these kind of signals. Investors like to subscribe to credit worthy forex dealers/companies since their information and data would be genuine and more accurate. In fact many forex dealers would kill to get information before the rest of the market gets the same information. As forex dealing is a very competitive business.
These signals or forex indications are given to the forex dealers through the forex trading platform or hub. The signals or forex indicators are the specific entry and exit strategies. Therefore when you enter a currency trade buying currencies at lower price and then selling at higher price, you book a profit. currency pair. For example the forex dealer is trading in GBP/USD. The rate is for GBP/USD is .9800 . If you expect that Euro is likely to go up in the future you would buy the Euros today to sell them off at a later date thereby booking a profit. If you expect the dollars to appreciate, then you would buy the dollars selling them off at a later date to book profits.
Most forex dealers will get the information via email or straight on their computer screens. It is then up to the forex dealers to decide whether they want to sell / buy / hold the currencies till further information is given to them.
Those who contribute in giving the information on currency dealing are hedge managers, foreign exchange dealers located in the major financial markets of the world, professional stock brokers, finance managers and a host of other finance professionals. They make it their business to collect, analyze and disseminate information in such a way, that can be used by forex dealers to buy / sell / hold the forex.
Therefore the companies take extreme care to send the forex signals for the currency dealers.
Let's say that there is a forex trading company say Acme Forex traders who send entry and exit signals to their clients in the following way
The first signal is provided to the trader at 08:30, and this signal is going to remain actual till 12.30 The trader will receive the second signal at 12.30, which would remain actual till 16.30.
The last signal would be sent to the trader at 16.30.
The transactions are given according to GMT. Please adjust for local time changes. The transaction shall be calculated till the signal is actual. The charges would be $300 per month per trader.
Forex dealers and experts provide forex-trading information and data to both institutional clients and individual investors and provide these kind of signals. Investors like to subscribe to credit worthy forex dealers/companies since their information and data would be genuine and more accurate. In fact many forex dealers would kill to get information before the rest of the market gets the same information. As forex dealing is a very competitive business.
These signals or forex indications are given to the forex dealers through the forex trading platform or hub. The signals or forex indicators are the specific entry and exit strategies. Therefore when you enter a currency trade buying currencies at lower price and then selling at higher price, you book a profit. currency pair. For example the forex dealer is trading in GBP/USD. The rate is for GBP/USD is .9800 . If you expect that Euro is likely to go up in the future you would buy the Euros today to sell them off at a later date thereby booking a profit. If you expect the dollars to appreciate, then you would buy the dollars selling them off at a later date to book profits.
Most forex dealers will get the information via email or straight on their computer screens. It is then up to the forex dealers to decide whether they want to sell / buy / hold the currencies till further information is given to them.
Those who contribute in giving the information on currency dealing are hedge managers, foreign exchange dealers located in the major financial markets of the world, professional stock brokers, finance managers and a host of other finance professionals. They make it their business to collect, analyze and disseminate information in such a way, that can be used by forex dealers to buy / sell / hold the forex.
Therefore the companies take extreme care to send the forex signals for the currency dealers.
Sending Signals For Trading In Forex
Forex signals are sent by a forex firm to their subscribers in order to buy and sell currencies. These signals are called entry and exit signals for the forex dealers. The firms, which send this forex signal, do so after tedious and meticulous research and analysis into the currencies that their dealers are trading in. For example a firm may send the entry and exit signals at designated time frames in real time. These will remain valid for a short period only after which they are going to be different.
Let's say that there is a forex trading company say Acme Forex traders who send entry and exit signals to their clients in the following way
The first signal is provided to the trader at 08:30, and this signal is going to remain actual till 12.30 The trader will receive the second signal at 12.30, which would remain actual till 16.30.
The last signal would be sent to the trader at 16.30.
The transactions are given according to GMT. Please adjust for local time changes. The transaction shall be calculated till the signal is actual. The charges would be $300 per month per trader.
Forex dealers and experts provide forex-trading information and data to both institutional clients and individual investors and provide these kind of signals. Investors like to subscribe to credit worthy forex dealers/companies since their information and data would be genuine and more accurate. In fact many forex dealers would kill to get information before the rest of the market gets the same information. As forex dealing is a very competitive business.
These signals or forex indications are given to the forex dealers through the forex trading platform or hub. The signals or forex indicators are the specific entry and exit strategies. Therefore when you enter a currency trade buying currencies at lower price and then selling at higher price, you book a profit. currency pair. For example the forex dealer is trading in GBP/USD. The rate is for GBP/USD is .9800 . If you expect that Euro is likely to go up in the future you would buy the Euros today to sell them off at a later date thereby booking a profit. If you expect the dollars to appreciate, then you would buy the dollars selling them off at a later date to book profits.
Most forex dealers will get the information via email or straight on their computer screens. It is then up to the forex dealers to decide whether they want to sell / buy / hold the currencies till further information is given to them.
Those who contribute in giving the information on currency dealing are hedge managers, foreign exchange dealers located in the major financial markets of the world, professional stock brokers, finance managers and a host of other finance professionals. They make it their business to collect, analyze and disseminate information in such a way, that can be used by forex dealers to buy / sell / hold the forex.
Therefore the companies take extreme care to send the forex signals for the currency dealers.
Let's say that there is a forex trading company say Acme Forex traders who send entry and exit signals to their clients in the following way
The first signal is provided to the trader at 08:30, and this signal is going to remain actual till 12.30 The trader will receive the second signal at 12.30, which would remain actual till 16.30.
The last signal would be sent to the trader at 16.30.
The transactions are given according to GMT. Please adjust for local time changes. The transaction shall be calculated till the signal is actual. The charges would be $300 per month per trader.
Forex dealers and experts provide forex-trading information and data to both institutional clients and individual investors and provide these kind of signals. Investors like to subscribe to credit worthy forex dealers/companies since their information and data would be genuine and more accurate. In fact many forex dealers would kill to get information before the rest of the market gets the same information. As forex dealing is a very competitive business.
These signals or forex indications are given to the forex dealers through the forex trading platform or hub. The signals or forex indicators are the specific entry and exit strategies. Therefore when you enter a currency trade buying currencies at lower price and then selling at higher price, you book a profit. currency pair. For example the forex dealer is trading in GBP/USD. The rate is for GBP/USD is .9800 . If you expect that Euro is likely to go up in the future you would buy the Euros today to sell them off at a later date thereby booking a profit. If you expect the dollars to appreciate, then you would buy the dollars selling them off at a later date to book profits.
Most forex dealers will get the information via email or straight on their computer screens. It is then up to the forex dealers to decide whether they want to sell / buy / hold the currencies till further information is given to them.
Those who contribute in giving the information on currency dealing are hedge managers, foreign exchange dealers located in the major financial markets of the world, professional stock brokers, finance managers and a host of other finance professionals. They make it their business to collect, analyze and disseminate information in such a way, that can be used by forex dealers to buy / sell / hold the forex.
Therefore the companies take extreme care to send the forex signals for the currency dealers.
Which is more important? Trend direction or Support/Resistance?
Many traders grapple with this all the time. To me it’s clear. The “trend is the trend” because it continues on and blows through supports in a downtrend and resistances in an uptrend.
A current example of this is AUD/USD. Get ready for the AUD/USD to break higher as the “bottom and top pickers” try to short this pair soon (since they are believers that the resistance will hold). The trend traders will get the last laugh, as the top pickers get caught on the wrong side of the market and have to scramble to cover their losing positions which only “fuels the fire” for the trend trader
A current example of this is AUD/USD. Get ready for the AUD/USD to break higher as the “bottom and top pickers” try to short this pair soon (since they are believers that the resistance will hold). The trend traders will get the last laugh, as the top pickers get caught on the wrong side of the market and have to scramble to cover their losing positions which only “fuels the fire” for the trend trader
Dollar’s rally is just about to run out of steam!
Even bear markets have rallies. But why would I refer to the dollar’s recent rally as a “bear market rally” and not a rally into a “new trend”? Because there is no technical indication that has surfaced to think otherwise Several things worth noting on that chart of the U.S. Dollar Index:
The pair is still downtrending as shown by it trading below BOTH the 50 and 200 Simple Moving Averages. Also, the MACD lines are below the zero line (red boxed area) and the Slow Stochastics are just about to go into the “overbought” territory once again as the dollar approaches its 50 day SMA resistance area.
There’s an old Wall St. saying….”trade the trend until it ends”. However, do realize that there are rallies in every bear market (downtrend). These are to be expected. After all, they usually can’t go “straight down”. Therefore, upward corrections are involved…much like the pull backs that happen within an uptrend.
Therefore, there’s no reason to see this as any other thing unless this technical picture changes. So far it has not. So I’ll stick with the trend “until it ends”.
That means, it’s probably better to be a buyer of strong currencies as these dollar rallies happen and start to roll over once again. Two of the top “strong currencies” right now are NZD and AUD…so being a buyer of NZD/USD and AUD/USD after these dollar rallies (which cause pull backs in these pairs) is to be favored until such time that there’s an actual re-emergence of a “dollar uptrend” which I think is a long ways off.
The pair is still downtrending as shown by it trading below BOTH the 50 and 200 Simple Moving Averages. Also, the MACD lines are below the zero line (red boxed area) and the Slow Stochastics are just about to go into the “overbought” territory once again as the dollar approaches its 50 day SMA resistance area.
There’s an old Wall St. saying….”trade the trend until it ends”. However, do realize that there are rallies in every bear market (downtrend). These are to be expected. After all, they usually can’t go “straight down”. Therefore, upward corrections are involved…much like the pull backs that happen within an uptrend.
Therefore, there’s no reason to see this as any other thing unless this technical picture changes. So far it has not. So I’ll stick with the trend “until it ends”.
That means, it’s probably better to be a buyer of strong currencies as these dollar rallies happen and start to roll over once again. Two of the top “strong currencies” right now are NZD and AUD…so being a buyer of NZD/USD and AUD/USD after these dollar rallies (which cause pull backs in these pairs) is to be favored until such time that there’s an actual re-emergence of a “dollar uptrend” which I think is a long ways off.
Don’t be fooled by Friday’s “dollar rally
The U.S. dollar got a nice “pop” on Friday as a better-than-expected NFP (employment) report came out. However, I call this a “sucker rally” because the dollar’s broad trend has been downward since March (according to the U.S. Dollar Index chart).
Therefore, since the probabilities lie on the side of the trend, it’s best to short the dollar on rallies upward by buying foreign currencies against it: AUD/USD, GBP/USD and NZD/USD being some of the top candidates in my opinion due to them leading the way in their yearly inflation figures. These are likely the countries to have to raise interest rates first and that will only drive more money away from the buck and into these other foreign currencies (which helps the buyers of these pairs).
Another factor that really doesn’t work in the dollar’s favor is the global recovery that’s underway right now. You see, the dollar only ran up when the “sky was falling”. But now that financial markets are stabilizing, that works against the green back and not for it. It does however, work in the favor of currencies that have higher inflation in their economies (vs. the deflationary numbers in the U.S) and it also works in the favor of the higher yielding currencies.
The deflationary Japanese economy is really causing money to pour out of the yen and into these currencies as well, which bodes well for: AUD/JPY, GBP/JPY and NZD/JPY over time.
So keep these pairs on your radar screen. It doesn’t mean that any moment of any day is the time to buy them…but it does mean that they are “fundamentally supported” the most and therefore should be your “top candidates” to consider as your technical entry set-ups occur.
Therefore, since the probabilities lie on the side of the trend, it’s best to short the dollar on rallies upward by buying foreign currencies against it: AUD/USD, GBP/USD and NZD/USD being some of the top candidates in my opinion due to them leading the way in their yearly inflation figures. These are likely the countries to have to raise interest rates first and that will only drive more money away from the buck and into these other foreign currencies (which helps the buyers of these pairs).
Another factor that really doesn’t work in the dollar’s favor is the global recovery that’s underway right now. You see, the dollar only ran up when the “sky was falling”. But now that financial markets are stabilizing, that works against the green back and not for it. It does however, work in the favor of currencies that have higher inflation in their economies (vs. the deflationary numbers in the U.S) and it also works in the favor of the higher yielding currencies.
The deflationary Japanese economy is really causing money to pour out of the yen and into these currencies as well, which bodes well for: AUD/JPY, GBP/JPY and NZD/JPY over time.
So keep these pairs on your radar screen. It doesn’t mean that any moment of any day is the time to buy them…but it does mean that they are “fundamentally supported” the most and therefore should be your “top candidates” to consider as your technical entry set-ups occur.
Dollar’s rally is just about to run out of steam!
Even bear markets have rallies. But why would I refer to the dollar’s recent rally as a “bear market rally” and not a rally into a “new trend”? Because there is no technical indication that has surfaced to think otherwise Several things worth noting on that chart of the U.S. Dollar Index:
The pair is still downtrending as shown by it trading below BOTH the 50 and 200 Simple Moving Averages. Also, the MACD lines are below the zero line (red boxed area) and the Slow Stochastics are just about to go into the “overbought” territory once again as the dollar approaches its 50 day SMA resistance area.
There’s an old Wall St. saying….”trade the trend until it ends”. However, do realize that there are rallies in every bear market (downtrend). These are to be expected. After all, they usually can’t go “straight down”. Therefore, upward corrections are involved…much like the pull backs that happen within an uptrend.
Therefore, there’s no reason to see this as any other thing unless this technical picture changes. So far it has not. So I’ll stick with the trend “until it ends”.
That means, it’s probably better to be a buyer of strong currencies as these dollar rallies happen and start to roll over once again. Two of the top “strong currencies” right now are NZD and AUD…so being a buyer of NZD/USD and AUD/USD after these dollar rallies (which cause pull backs in these pairs) is to be favored until such time that there’s an actual re-emergence of a “dollar uptrend” which I think is a long ways off.
The pair is still downtrending as shown by it trading below BOTH the 50 and 200 Simple Moving Averages. Also, the MACD lines are below the zero line (red boxed area) and the Slow Stochastics are just about to go into the “overbought” territory once again as the dollar approaches its 50 day SMA resistance area.
There’s an old Wall St. saying….”trade the trend until it ends”. However, do realize that there are rallies in every bear market (downtrend). These are to be expected. After all, they usually can’t go “straight down”. Therefore, upward corrections are involved…much like the pull backs that happen within an uptrend.
Therefore, there’s no reason to see this as any other thing unless this technical picture changes. So far it has not. So I’ll stick with the trend “until it ends”.
That means, it’s probably better to be a buyer of strong currencies as these dollar rallies happen and start to roll over once again. Two of the top “strong currencies” right now are NZD and AUD…so being a buyer of NZD/USD and AUD/USD after these dollar rallies (which cause pull backs in these pairs) is to be favored until such time that there’s an actual re-emergence of a “dollar uptrend” which I think is a long ways off.
Don’t be fooled by Friday’s “dollar rally
The U.S. dollar got a nice “pop” on Friday as a better-than-expected NFP (employment) report came out. However, I call this a “sucker rally” because the dollar’s broad trend has been downward since March (according to the U.S. Dollar Index chart).
Therefore, since the probabilities lie on the side of the trend, it’s best to short the dollar on rallies upward by buying foreign currencies against it: AUD/USD, GBP/USD and NZD/USD being some of the top candidates in my opinion due to them leading the way in their yearly inflation figures. These are likely the countries to have to raise interest rates first and that will only drive more money away from the buck and into these other foreign currencies (which helps the buyers of these pairs).
Another factor that really doesn’t work in the dollar’s favor is the global recovery that’s underway right now. You see, the dollar only ran up when the “sky was falling”. But now that financial markets are stabilizing, that works against the green back and not for it. It does however, work in the favor of currencies that have higher inflation in their economies (vs. the deflationary numbers in the U.S) and it also works in the favor of the higher yielding currencies.
The deflationary Japanese economy is really causing money to pour out of the yen and into these currencies as well, which bodes well for: AUD/JPY, GBP/JPY and NZD/JPY over time.
So keep these pairs on your radar screen. It doesn’t mean that any moment of any day is the time to buy them…but it does mean that they are “fundamentally supported” the most and therefore should be your “top candidates” to consider as your technical entry set-ups occur.
Therefore, since the probabilities lie on the side of the trend, it’s best to short the dollar on rallies upward by buying foreign currencies against it: AUD/USD, GBP/USD and NZD/USD being some of the top candidates in my opinion due to them leading the way in their yearly inflation figures. These are likely the countries to have to raise interest rates first and that will only drive more money away from the buck and into these other foreign currencies (which helps the buyers of these pairs).
Another factor that really doesn’t work in the dollar’s favor is the global recovery that’s underway right now. You see, the dollar only ran up when the “sky was falling”. But now that financial markets are stabilizing, that works against the green back and not for it. It does however, work in the favor of currencies that have higher inflation in their economies (vs. the deflationary numbers in the U.S) and it also works in the favor of the higher yielding currencies.
The deflationary Japanese economy is really causing money to pour out of the yen and into these currencies as well, which bodes well for: AUD/JPY, GBP/JPY and NZD/JPY over time.
So keep these pairs on your radar screen. It doesn’t mean that any moment of any day is the time to buy them…but it does mean that they are “fundamentally supported” the most and therefore should be your “top candidates” to consider as your technical entry set-ups occur.
Forex Traders: Taking Responsibility
All good traders understand that every trading decision and action made, is his own responsibility. You’ll never meet a successful trader who blames someone or something else for the consequences of his trading results.
You see, it’s only when you begin to accept full responsibility for your results, that you’ll rule out the convenient possibility of using excuses. After all, it’s much easier to TALK about why it’s not your fault when you make a losing trade. It’s easier to say "hey, I didn’t know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they’re not going to help you trade better at all. Once you finally realize that the only way you’ll make money in Forex trading is to look out for yourself, you’ll never be a successful trader. I’m sorry for being so blunt, but it’s the truth.
No one’s going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you’ll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you’re not already a consistently profitable trader, you’re going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading… there’s no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
You see, it’s only when you begin to accept full responsibility for your results, that you’ll rule out the convenient possibility of using excuses. After all, it’s much easier to TALK about why it’s not your fault when you make a losing trade. It’s easier to say "hey, I didn’t know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they’re not going to help you trade better at all. Once you finally realize that the only way you’ll make money in Forex trading is to look out for yourself, you’ll never be a successful trader. I’m sorry for being so blunt, but it’s the truth.
No one’s going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you’ll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you’re not already a consistently profitable trader, you’re going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading… there’s no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
Forex Traders: Taking Responsibility
All good traders understand that every trading decision and action made, is his own responsibility. You’ll never meet a successful trader who blames someone or something else for the consequences of his trading results.
You see, it’s only when you begin to accept full responsibility for your results, that you’ll rule out the convenient possibility of using excuses. After all, it’s much easier to TALK about why it’s not your fault when you make a losing trade. It’s easier to say "hey, I didn’t know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they’re not going to help you trade better at all. Once you finally realize that the only way you’ll make money in Forex trading is to look out for yourself, you’ll never be a successful trader. I’m sorry for being so blunt, but it’s the truth.
No one’s going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you’ll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you’re not already a consistently profitable trader, you’re going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading… there’s no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
You see, it’s only when you begin to accept full responsibility for your results, that you’ll rule out the convenient possibility of using excuses. After all, it’s much easier to TALK about why it’s not your fault when you make a losing trade. It’s easier to say "hey, I didn’t know there was an important economic announcement coming out tonight" rather than to go and check out the actual schedule of economic announcements for the week.
You can just blame bad luck, or even blame it on the weather. But whatever your "reasons" are, they’re not going to help you trade better at all. Once you finally realize that the only way you’ll make money in Forex trading is to look out for yourself, you’ll never be a successful trader. I’m sorry for being so blunt, but it’s the truth.
No one’s going to fight your battles for you. The moment you realize that you are solely responsible for your trading results, you’ll soon start looking into ways to improve it.
Let me ask you: Do you actively monitor your trades using some sort of trading journal or trading log? Do you spend time looking over failed trades and whether they could have been avoided?
If you answered "yes" to both questions, great! If you’re not already a consistently profitable trader, you’re going to be one soon enough.
But if you answered "no" to either question, you might want to think about how serious you are about Forex trading… there’s no middle ground here: You either work hard at it and succeed, or you continue to give "reasons" for losing your trades.
How to know how much a “pip” is worth for any pair!
Many times, newer traders ask me how they can find out how much a “pip” is worth for any pair. Some will refer to these as pip “costs”, others will say pip “values”, etc. but it’s all the same thing.
They all want to know, if my pair moves up one increment or down one increment…how many dollars does that equate to?
Here’s the simple answer. It’s automatically calculated for you on your trading station. You can view this on the “Advanced rates” which is the default setting..OR…you can view it on the Simple rates” tab.
See both of them below.
I’ve circled (in each format) where to find the pip cost/value for a pair. Notice that any pair that ends in USD (ex. EUR/USD, GBP/USD, NZD/USD, etc.) all have pip values of $1.00 per standard mini lot. Had this been a micro account, then the pip value would be 10 times less or .10 (10 cents) per pip of movement (since a micro lot is ten times smaller than a standard mini lot).
Remember, that a standard mini lot = 10,000 units of currency and a micro lot = 1,000 units of currency.
So the pairs that end in something other than USD (ex. EUR/CHF, USD/JPY, EUR/AUD, etc.) will have pip values that change slightly over long periods of time.
However, you can easily see what a “pip” is worth in that pair BEFORE you place your trade since it’s conveniently located on your quote screen.
This is important to note because there’s a big difference in EUR/GBP’s pip value of $1.66 and EUR/AUD’s pip value of .84 (84 cents).
They all want to know, if my pair moves up one increment or down one increment…how many dollars does that equate to?
Here’s the simple answer. It’s automatically calculated for you on your trading station. You can view this on the “Advanced rates” which is the default setting..OR…you can view it on the Simple rates” tab.
See both of them below.
I’ve circled (in each format) where to find the pip cost/value for a pair. Notice that any pair that ends in USD (ex. EUR/USD, GBP/USD, NZD/USD, etc.) all have pip values of $1.00 per standard mini lot. Had this been a micro account, then the pip value would be 10 times less or .10 (10 cents) per pip of movement (since a micro lot is ten times smaller than a standard mini lot).
Remember, that a standard mini lot = 10,000 units of currency and a micro lot = 1,000 units of currency.
So the pairs that end in something other than USD (ex. EUR/CHF, USD/JPY, EUR/AUD, etc.) will have pip values that change slightly over long periods of time.
However, you can easily see what a “pip” is worth in that pair BEFORE you place your trade since it’s conveniently located on your quote screen.
This is important to note because there’s a big difference in EUR/GBP’s pip value of $1.66 and EUR/AUD’s pip value of .84 (84 cents).
Here’s what makes the Carry Trade so great!
Many people don’t really get the “carry trade” strategy and why it’s so great. Their focus is on the daily interest and they don’t see themselves getting rich off of the daily interest. However, that’s only ONE of the reasons why traders get into the carry trade.
Think of a carry trade this way. Let’s say you have two banks in the same town. Bank A will offer you 3% in a savings account while Bank B will only offer you 1/2 of 1% (0.50%). Which one are you going to deposit money into?
Now, if you were a betting man or woman…which bank would you bet on having the most “inflows” of deposits? Of course, Bank A…because people aren’t idiots and want to earn the most they can on their money.
Well while the carry trade isn’t a “savings account” by any means…it works off of a similar principle.
Traders and investors alike want to earn the most that they can on their money. After all, the interest earned is the closest thing to a guarantee as you’ll get. So investors look out in the “investing arena” and look to see who has high interest rates when compared to others.
It’s no surprise that investors from all over the world pile into the same, few high yielding currencies.
Look at the chart below and you will see what investors all over the world are looking at. Now which currencies would you look into first? The U.S., Japan?….or Australia and New Zealand? Of course, the latter. Why? Because your mama didn’t raise a dummy and you want to get the highest interest rate possible on your money.
Think of a carry trade this way. Let’s say you have two banks in the same town. Bank A will offer you 3% in a savings account while Bank B will only offer you 1/2 of 1% (0.50%). Which one are you going to deposit money into?
Now, if you were a betting man or woman…which bank would you bet on having the most “inflows” of deposits? Of course, Bank A…because people aren’t idiots and want to earn the most they can on their money.
Well while the carry trade isn’t a “savings account” by any means…it works off of a similar principle.
Traders and investors alike want to earn the most that they can on their money. After all, the interest earned is the closest thing to a guarantee as you’ll get. So investors look out in the “investing arena” and look to see who has high interest rates when compared to others.
It’s no surprise that investors from all over the world pile into the same, few high yielding currencies.
Look at the chart below and you will see what investors all over the world are looking at. Now which currencies would you look into first? The U.S., Japan?….or Australia and New Zealand? Of course, the latter. Why? Because your mama didn’t raise a dummy and you want to get the highest interest rate possible on your money.
Here’s what makes the Carry Trade so great!
Many people don’t really get the “carry trade” strategy and why it’s so great. Their focus is on the daily interest and they don’t see themselves getting rich off of the daily interest. However, that’s only ONE of the reasons why traders get into the carry trade.
Think of a carry trade this way. Let’s say you have two banks in the same town. Bank A will offer you 3% in a savings account while Bank B will only offer you 1/2 of 1% (0.50%). Which one are you going to deposit money into?
Now, if you were a betting man or woman…which bank would you bet on having the most “inflows” of deposits? Of course, Bank A…because people aren’t idiots and want to earn the most they can on their money.
Well while the carry trade isn’t a “savings account” by any means…it works off of a similar principle.
Traders and investors alike want to earn the most that they can on their money. After all, the interest earned is the closest thing to a guarantee as you’ll get. So investors look out in the “investing arena” and look to see who has high interest rates when compared to others.
It’s no surprise that investors from all over the world pile into the same, few high yielding currencies.
Look at the chart below and you will see what investors all over the world are looking at. Now which currencies would you look into first? The U.S., Japan?….or Australia and New Zealand? Of course, the latter. Why? Because your mama didn’t raise a dummy and you want to get the highest interest rate possible on your money.
Think of a carry trade this way. Let’s say you have two banks in the same town. Bank A will offer you 3% in a savings account while Bank B will only offer you 1/2 of 1% (0.50%). Which one are you going to deposit money into?
Now, if you were a betting man or woman…which bank would you bet on having the most “inflows” of deposits? Of course, Bank A…because people aren’t idiots and want to earn the most they can on their money.
Well while the carry trade isn’t a “savings account” by any means…it works off of a similar principle.
Traders and investors alike want to earn the most that they can on their money. After all, the interest earned is the closest thing to a guarantee as you’ll get. So investors look out in the “investing arena” and look to see who has high interest rates when compared to others.
It’s no surprise that investors from all over the world pile into the same, few high yielding currencies.
Look at the chart below and you will see what investors all over the world are looking at. Now which currencies would you look into first? The U.S., Japan?….or Australia and New Zealand? Of course, the latter. Why? Because your mama didn’t raise a dummy and you want to get the highest interest rate possible on your money.
How to know how much a “pip” is worth for any pair!
Many times, newer traders ask me how they can find out how much a “pip” is worth for any pair. Some will refer to these as pip “costs”, others will say pip “values”, etc. but it’s all the same thing.
They all want to know, if my pair moves up one increment or down one increment…how many dollars does that equate to?
Here’s the simple answer. It’s automatically calculated for you on your trading station. You can view this on the “Advanced rates” which is the default setting..OR…you can view it on the Simple rates” tab.
See both of them below.
I’ve circled (in each format) where to find the pip cost/value for a pair. Notice that any pair that ends in USD (ex. EUR/USD, GBP/USD, NZD/USD, etc.) all have pip values of $1.00 per standard mini lot. Had this been a micro account, then the pip value would be 10 times less or .10 (10 cents) per pip of movement (since a micro lot is ten times smaller than a standard mini lot).
Remember, that a standard mini lot = 10,000 units of currency and a micro lot = 1,000 units of currency.
So the pairs that end in something other than USD (ex. EUR/CHF, USD/JPY, EUR/AUD, etc.) will have pip values that change slightly over long periods of time.
However, you can easily see what a “pip” is worth in that pair BEFORE you place your trade since it’s conveniently located on your quote screen.
This is important to note because there’s a big difference in EUR/GBP’s pip value of $1.66 and EUR/AUD’s pip value of .84 (84 cents).
They all want to know, if my pair moves up one increment or down one increment…how many dollars does that equate to?
Here’s the simple answer. It’s automatically calculated for you on your trading station. You can view this on the “Advanced rates” which is the default setting..OR…you can view it on the Simple rates” tab.
See both of them below.
I’ve circled (in each format) where to find the pip cost/value for a pair. Notice that any pair that ends in USD (ex. EUR/USD, GBP/USD, NZD/USD, etc.) all have pip values of $1.00 per standard mini lot. Had this been a micro account, then the pip value would be 10 times less or .10 (10 cents) per pip of movement (since a micro lot is ten times smaller than a standard mini lot).
Remember, that a standard mini lot = 10,000 units of currency and a micro lot = 1,000 units of currency.
So the pairs that end in something other than USD (ex. EUR/CHF, USD/JPY, EUR/AUD, etc.) will have pip values that change slightly over long periods of time.
However, you can easily see what a “pip” is worth in that pair BEFORE you place your trade since it’s conveniently located on your quote screen.
This is important to note because there’s a big difference in EUR/GBP’s pip value of $1.66 and EUR/AUD’s pip value of .84 (84 cents).
Trade triggered!
Well it looks like we didn’t have to wait very long for that possible GBP/USD H&S pattern to trigger a short sale. (See below) We are short this pair and looking for a major push down in the next day or two. Our stop is placed just above 1.66 (above the top of the right hand shoulder) and we’ll be trailing the stop. Check back in to see the progress of this trade.
Forex Indicators - Moving Averages
Most successful Forex retail traders use a variation of the moving average indicator. It’s one of the oldest technical indicators in existence, and its widespread popularity is mainly due to its simplicity and effectiveness.
What Is A Moving Average?
A moving average is basically the dynamic average of past market prices. It’s dynamic in the sense that the moving average number will constantly change as time passes.
How Does A Moving Average Work?
To give you a better sense of how moving averages work, here’s a simple example:
5, 7, 6
Above is a sequence of three numbers. The average of these three numbers is 6, right?
Now, let’s say that the next number in the sequence is revealed to us:
5, 7, 6, 2
Because we’re calculating the average of the latest three numbers, we have to drop the first number (i.e. 5), and use the more recent numbers 7, 6, 2 instead. The average is now 5. When the next number in the sequence becomes known, we will have to drop the earliest number of the three-number sequence (i.e. 7), and include the latest number to get a new average.
And this is basically how moving averages work, except that instead of random numbers we use historical market prices instead. You can of course specify the number of past prices to include in your moving average calculation. In a 20-day moving average for example, you would calculate the average based on the prices of the last twenty days.
What’s The Significance Of A Moving Average?
A moving average indicator shows the general trend of the market. It is used to smooth out short-term spikes of price fluctuations. When the market is trading above the moving average, it is considered to be strong. When the market is trading below the moving average, it is considered to be weak. A good understanding of moving averages is essential to help you decide whether to enter or exit a trade.
To learn more, download my free 26-page guide here: "Forex Trading Traps!" Harold Hsu is the owner of http://ForexSystemProfits.com where he provides premium Forex trading information and resources.
What Is A Moving Average?
A moving average is basically the dynamic average of past market prices. It’s dynamic in the sense that the moving average number will constantly change as time passes.
How Does A Moving Average Work?
To give you a better sense of how moving averages work, here’s a simple example:
5, 7, 6
Above is a sequence of three numbers. The average of these three numbers is 6, right?
Now, let’s say that the next number in the sequence is revealed to us:
5, 7, 6, 2
Because we’re calculating the average of the latest three numbers, we have to drop the first number (i.e. 5), and use the more recent numbers 7, 6, 2 instead. The average is now 5. When the next number in the sequence becomes known, we will have to drop the earliest number of the three-number sequence (i.e. 7), and include the latest number to get a new average.
And this is basically how moving averages work, except that instead of random numbers we use historical market prices instead. You can of course specify the number of past prices to include in your moving average calculation. In a 20-day moving average for example, you would calculate the average based on the prices of the last twenty days.
What’s The Significance Of A Moving Average?
A moving average indicator shows the general trend of the market. It is used to smooth out short-term spikes of price fluctuations. When the market is trading above the moving average, it is considered to be strong. When the market is trading below the moving average, it is considered to be weak. A good understanding of moving averages is essential to help you decide whether to enter or exit a trade.
To learn more, download my free 26-page guide here: "Forex Trading Traps!" Harold Hsu is the owner of http://ForexSystemProfits.com where he provides premium Forex trading information and resources.
Forex Indicators - Moving Averages
Most successful Forex retail traders use a variation of the moving average indicator. It’s one of the oldest technical indicators in existence, and its widespread popularity is mainly due to its simplicity and effectiveness.
What Is A Moving Average?
A moving average is basically the dynamic average of past market prices. It’s dynamic in the sense that the moving average number will constantly change as time passes.
How Does A Moving Average Work?
To give you a better sense of how moving averages work, here’s a simple example:
5, 7, 6
Above is a sequence of three numbers. The average of these three numbers is 6, right?
Now, let’s say that the next number in the sequence is revealed to us:
5, 7, 6, 2
Because we’re calculating the average of the latest three numbers, we have to drop the first number (i.e. 5), and use the more recent numbers 7, 6, 2 instead. The average is now 5. When the next number in the sequence becomes known, we will have to drop the earliest number of the three-number sequence (i.e. 7), and include the latest number to get a new average.
And this is basically how moving averages work, except that instead of random numbers we use historical market prices instead. You can of course specify the number of past prices to include in your moving average calculation. In a 20-day moving average for example, you would calculate the average based on the prices of the last twenty days.
What’s The Significance Of A Moving Average?
A moving average indicator shows the general trend of the market. It is used to smooth out short-term spikes of price fluctuations. When the market is trading above the moving average, it is considered to be strong. When the market is trading below the moving average, it is considered to be weak. A good understanding of moving averages is essential to help you decide whether to enter or exit a trade.
To learn more, download my free 26-page guide here: "Forex Trading Traps!" Harold Hsu is the owner of http://ForexSystemProfits.com where he provides premium Forex trading information and resources.
What Is A Moving Average?
A moving average is basically the dynamic average of past market prices. It’s dynamic in the sense that the moving average number will constantly change as time passes.
How Does A Moving Average Work?
To give you a better sense of how moving averages work, here’s a simple example:
5, 7, 6
Above is a sequence of three numbers. The average of these three numbers is 6, right?
Now, let’s say that the next number in the sequence is revealed to us:
5, 7, 6, 2
Because we’re calculating the average of the latest three numbers, we have to drop the first number (i.e. 5), and use the more recent numbers 7, 6, 2 instead. The average is now 5. When the next number in the sequence becomes known, we will have to drop the earliest number of the three-number sequence (i.e. 7), and include the latest number to get a new average.
And this is basically how moving averages work, except that instead of random numbers we use historical market prices instead. You can of course specify the number of past prices to include in your moving average calculation. In a 20-day moving average for example, you would calculate the average based on the prices of the last twenty days.
What’s The Significance Of A Moving Average?
A moving average indicator shows the general trend of the market. It is used to smooth out short-term spikes of price fluctuations. When the market is trading above the moving average, it is considered to be strong. When the market is trading below the moving average, it is considered to be weak. A good understanding of moving averages is essential to help you decide whether to enter or exit a trade.
To learn more, download my free 26-page guide here: "Forex Trading Traps!" Harold Hsu is the owner of http://ForexSystemProfits.com where he provides premium Forex trading information and resources.
Trade triggered!
Well it looks like we didn’t have to wait very long for that possible GBP/USD H&S pattern to trigger a short sale. (See below) We are short this pair and looking for a major push down in the next day or two. Our stop is placed just above 1.66 (above the top of the right hand shoulder) and we’ll be trailing the stop. Check back in to see the progress of this trade.
ECB Comments and Risk Taking!
In a continuation of Friday’s move out of the US dollar as signs of improved economic conditions are improving, EUR/USD is experiencing a nice move to the upside. Positive comments from ECB President Trichet and the notes out of the G-20 meeting are giving investors confidence that recovery is underway and therefore investors are selling dollars.
The top gainers on the morning are the Swiss franc (+1.14%) and the Euro (+1.01%). Look for this uptrend to continue as risk takers seek higher-yielding currencies.
The top gainers on the morning are the Swiss franc (+1.14%) and the Euro (+1.01%). Look for this uptrend to continue as risk takers seek higher-yielding currencies.
ECB Comments and Risk Taking!
In a continuation of Friday’s move out of the US dollar as signs of improved economic conditions are improving, EUR/USD is experiencing a nice move to the upside. Positive comments from ECB President Trichet and the notes out of the G-20 meeting are giving investors confidence that recovery is underway and therefore investors are selling dollars.
The top gainers on the morning are the Swiss franc (+1.14%) and the Euro (+1.01%). Look for this uptrend to continue as risk takers seek higher-yielding currencies.
The top gainers on the morning are the Swiss franc (+1.14%) and the Euro (+1.01%). Look for this uptrend to continue as risk takers seek higher-yielding currencies.
Currency Markets Drinking the Bernanke Kool-Aid!
It is appears as though the currency markets are believing the economic numbers that are coming out of the US, that inflation is tame at .4% so that there is no chance that Bernanke and the Fed will even consider raising rates anytime soon.
Also, yesterday Bernanke suggested that the recession in the US may have ended. While this “technically” may be correct, I would be a little more cautious before breaking out the pizza and ice cream just yet.
Nevertheless, the currency markets are acting predictably, with the risk trade back on. As a result, NZD and AUD are the big winners so far today, and USD and JPY the losers. NZD/USD (+1.14%) and NZD/JPY (+1.19%) showing good gains for the Kiwi, with Aussie right on its heels AUD/USD (+1.00%) and AUD/JPY (+.98%).
As long as the cheerleading keeps coming and the numbers don’t look too bad, look for these trends to continue. And hope that the party doesn’t end too soon!
Also, yesterday Bernanke suggested that the recession in the US may have ended. While this “technically” may be correct, I would be a little more cautious before breaking out the pizza and ice cream just yet.
Nevertheless, the currency markets are acting predictably, with the risk trade back on. As a result, NZD and AUD are the big winners so far today, and USD and JPY the losers. NZD/USD (+1.14%) and NZD/JPY (+1.19%) showing good gains for the Kiwi, with Aussie right on its heels AUD/USD (+1.00%) and AUD/JPY (+.98%).
As long as the cheerleading keeps coming and the numbers don’t look too bad, look for these trends to continue. And hope that the party doesn’t end too soon!
Nothing Safe About the US Dollar!
A lot is made about the safe-haven status of the US dollar and the inverse correlation it has with stocks and commodities. When the economy is seemingly doing well, risk-takers look to sell dollars and buy higher-yielding, riskier currencies to earn interest. This is more commonly known as a “carry trade” and I described it in an article last week.
The carry trade is a very easy way to make money and it was formerly only available to sophisticated investors. Now, you can participate from the privacy of your own home! The basic premise behind the carry trade is that you want to borrow a low-yielding currency and invest in a higher-yielding currency. You make the difference in interest. Sounds better than putting your cash in a bank savings account, doesn’t it?
The carry trade is a very easy way to make money and it was formerly only available to sophisticated investors. Now, you can participate from the privacy of your own home! The basic premise behind the carry trade is that you want to borrow a low-yielding currency and invest in a higher-yielding currency. You make the difference in interest. Sounds better than putting your cash in a bank savings account, doesn’t it?
Nothing Safe About the US Dollar!
A lot is made about the safe-haven status of the US dollar and the inverse correlation it has with stocks and commodities. When the economy is seemingly doing well, risk-takers look to sell dollars and buy higher-yielding, riskier currencies to earn interest. This is more commonly known as a “carry trade” and I described it in an article last week.
The carry trade is a very easy way to make money and it was formerly only available to sophisticated investors. Now, you can participate from the privacy of your own home! The basic premise behind the carry trade is that you want to borrow a low-yielding currency and invest in a higher-yielding currency. You make the difference in interest. Sounds better than putting your cash in a bank savings account, doesn’t it?
The carry trade is a very easy way to make money and it was formerly only available to sophisticated investors. Now, you can participate from the privacy of your own home! The basic premise behind the carry trade is that you want to borrow a low-yielding currency and invest in a higher-yielding currency. You make the difference in interest. Sounds better than putting your cash in a bank savings account, doesn’t it?
Currency Markets Drinking the Bernanke Kool-Aid!
It is appears as though the currency markets are believing the economic numbers that are coming out of the US, that inflation is tame at .4% so that there is no chance that Bernanke and the Fed will even consider raising rates anytime soon.
Also, yesterday Bernanke suggested that the recession in the US may have ended. While this “technically” may be correct, I would be a little more cautious before breaking out the pizza and ice cream just yet.
Nevertheless, the currency markets are acting predictably, with the risk trade back on. As a result, NZD and AUD are the big winners so far today, and USD and JPY the losers. NZD/USD (+1.14%) and NZD/JPY (+1.19%) showing good gains for the Kiwi, with Aussie right on its heels AUD/USD (+1.00%) and AUD/JPY (+.98%).
As long as the cheerleading keeps coming and the numbers don’t look too bad, look for these trends to continue. And hope that the party doesn’t end too soon!
Also, yesterday Bernanke suggested that the recession in the US may have ended. While this “technically” may be correct, I would be a little more cautious before breaking out the pizza and ice cream just yet.
Nevertheless, the currency markets are acting predictably, with the risk trade back on. As a result, NZD and AUD are the big winners so far today, and USD and JPY the losers. NZD/USD (+1.14%) and NZD/JPY (+1.19%) showing good gains for the Kiwi, with Aussie right on its heels AUD/USD (+1.00%) and AUD/JPY (+.98%).
As long as the cheerleading keeps coming and the numbers don’t look too bad, look for these trends to continue. And hope that the party doesn’t end too soon!
Learn Forex - Is Forex Trading The Ultimate Home
That's true, you can be a trader at home. Forex, or Foreign Exchange Market is by far the largest financial market in the world. About $2 trillion are traded EVERY DAY. The Forex market is the currency market, where a currency is traded against another. Quick example : you buy a dollar and sell euros. Not that easy to understand. But can we do this from home ? Yes, we can. About ten years ago, you would need millions of dollars to start trading. Now you can start with a few hundreds of dollars.
What you need is your computer and an internet connexion. You can trade from the comfort of your home, without having to deal with any boss or clients. You will only deal with money. Then you can start selling dollars and buying euros and make a profit. You have to find a broker, where you will open an account and funding it. You will also have the possibility to get a demo account and practice, with fake money but in the real time market. I strongly recommend you practice a few months before thinking of 'live' trading.
It is not that easy, it is extremely risky if you don't know anything about trading. First rule : don't invest what you can't afford to lose. Forex is not a game, there is a lot of parameters to take in account, and human factor is one of the most important in this business.
You may have already understood it, currencies are traded by pairs. The european Euro versus the US Dollar, The US Dollar versus the Japan Yen, etc. When you buy a currency, you want to sell it later at a higher price. When you sell a currency, you want to buy it later at a lower price. This is how you make profit. Think like you were buying a foreign company share. You always want to buy low, and always want to sell high.
What you are looking to when trading currencies is the exchange rate. This will tell you your next move. Buy or sell. Currencies are part of the economy of each countries. When the value of a currency is increasing, this means the economy is going better as before. The exchange rate can be viewed as the country's economy compared to another economy. This is why economic factors can help you to predict your next move. If you know that a currency will increase, you will buy it and expect to sell it at a higher price, a higher rate.
You can choose the pair you want to trade, but the most people trade the main currencies, Euro, Dollar, British Pound, Japan Yen. And you can only choose to trade one pair only if you want. You are the only person that will make the decision. Hope you are making the good ones, profit can be huge, as well as losses.
Like any business, forex trading has to be taken seriously. Lots of people are trading the forex and some are earning thousands of dollars every day. But it needs a lot of training, education and analysis before reaching such results. It can be the perfect business and actually it is for advanced traders.
What you need is your computer and an internet connexion. You can trade from the comfort of your home, without having to deal with any boss or clients. You will only deal with money. Then you can start selling dollars and buying euros and make a profit. You have to find a broker, where you will open an account and funding it. You will also have the possibility to get a demo account and practice, with fake money but in the real time market. I strongly recommend you practice a few months before thinking of 'live' trading.
It is not that easy, it is extremely risky if you don't know anything about trading. First rule : don't invest what you can't afford to lose. Forex is not a game, there is a lot of parameters to take in account, and human factor is one of the most important in this business.
You may have already understood it, currencies are traded by pairs. The european Euro versus the US Dollar, The US Dollar versus the Japan Yen, etc. When you buy a currency, you want to sell it later at a higher price. When you sell a currency, you want to buy it later at a lower price. This is how you make profit. Think like you were buying a foreign company share. You always want to buy low, and always want to sell high.
What you are looking to when trading currencies is the exchange rate. This will tell you your next move. Buy or sell. Currencies are part of the economy of each countries. When the value of a currency is increasing, this means the economy is going better as before. The exchange rate can be viewed as the country's economy compared to another economy. This is why economic factors can help you to predict your next move. If you know that a currency will increase, you will buy it and expect to sell it at a higher price, a higher rate.
You can choose the pair you want to trade, but the most people trade the main currencies, Euro, Dollar, British Pound, Japan Yen. And you can only choose to trade one pair only if you want. You are the only person that will make the decision. Hope you are making the good ones, profit can be huge, as well as losses.
Like any business, forex trading has to be taken seriously. Lots of people are trading the forex and some are earning thousands of dollars every day. But it needs a lot of training, education and analysis before reaching such results. It can be the perfect business and actually it is for advanced traders.
Learn Forex - Is Forex Trading The Ultimate Home
That's true, you can be a trader at home. Forex, or Foreign Exchange Market is by far the largest financial market in the world. About $2 trillion are traded EVERY DAY. The Forex market is the currency market, where a currency is traded against another. Quick example : you buy a dollar and sell euros. Not that easy to understand. But can we do this from home ? Yes, we can. About ten years ago, you would need millions of dollars to start trading. Now you can start with a few hundreds of dollars.
What you need is your computer and an internet connexion. You can trade from the comfort of your home, without having to deal with any boss or clients. You will only deal with money. Then you can start selling dollars and buying euros and make a profit. You have to find a broker, where you will open an account and funding it. You will also have the possibility to get a demo account and practice, with fake money but in the real time market. I strongly recommend you practice a few months before thinking of 'live' trading.
It is not that easy, it is extremely risky if you don't know anything about trading. First rule : don't invest what you can't afford to lose. Forex is not a game, there is a lot of parameters to take in account, and human factor is one of the most important in this business.
You may have already understood it, currencies are traded by pairs. The european Euro versus the US Dollar, The US Dollar versus the Japan Yen, etc. When you buy a currency, you want to sell it later at a higher price. When you sell a currency, you want to buy it later at a lower price. This is how you make profit. Think like you were buying a foreign company share. You always want to buy low, and always want to sell high.
What you are looking to when trading currencies is the exchange rate. This will tell you your next move. Buy or sell. Currencies are part of the economy of each countries. When the value of a currency is increasing, this means the economy is going better as before. The exchange rate can be viewed as the country's economy compared to another economy. This is why economic factors can help you to predict your next move. If you know that a currency will increase, you will buy it and expect to sell it at a higher price, a higher rate.
You can choose the pair you want to trade, but the most people trade the main currencies, Euro, Dollar, British Pound, Japan Yen. And you can only choose to trade one pair only if you want. You are the only person that will make the decision. Hope you are making the good ones, profit can be huge, as well as losses.
Like any business, forex trading has to be taken seriously. Lots of people are trading the forex and some are earning thousands of dollars every day. But it needs a lot of training, education and analysis before reaching such results. It can be the perfect business and actually it is for advanced traders.
What you need is your computer and an internet connexion. You can trade from the comfort of your home, without having to deal with any boss or clients. You will only deal with money. Then you can start selling dollars and buying euros and make a profit. You have to find a broker, where you will open an account and funding it. You will also have the possibility to get a demo account and practice, with fake money but in the real time market. I strongly recommend you practice a few months before thinking of 'live' trading.
It is not that easy, it is extremely risky if you don't know anything about trading. First rule : don't invest what you can't afford to lose. Forex is not a game, there is a lot of parameters to take in account, and human factor is one of the most important in this business.
You may have already understood it, currencies are traded by pairs. The european Euro versus the US Dollar, The US Dollar versus the Japan Yen, etc. When you buy a currency, you want to sell it later at a higher price. When you sell a currency, you want to buy it later at a lower price. This is how you make profit. Think like you were buying a foreign company share. You always want to buy low, and always want to sell high.
What you are looking to when trading currencies is the exchange rate. This will tell you your next move. Buy or sell. Currencies are part of the economy of each countries. When the value of a currency is increasing, this means the economy is going better as before. The exchange rate can be viewed as the country's economy compared to another economy. This is why economic factors can help you to predict your next move. If you know that a currency will increase, you will buy it and expect to sell it at a higher price, a higher rate.
You can choose the pair you want to trade, but the most people trade the main currencies, Euro, Dollar, British Pound, Japan Yen. And you can only choose to trade one pair only if you want. You are the only person that will make the decision. Hope you are making the good ones, profit can be huge, as well as losses.
Like any business, forex trading has to be taken seriously. Lots of people are trading the forex and some are earning thousands of dollars every day. But it needs a lot of training, education and analysis before reaching such results. It can be the perfect business and actually it is for advanced traders.
Forex Demo Account - What are they really
Forex practice accounts allow you to trade the forex market while not putting your hard earned capital at risk. These accounts are often also called forex demo accounts, these accounts should be free - so if a forex broker is trying to charge you for one ? just say no and look for another broker.
Most forex practice accounts will work for about 30 days, some are longer and some are shorter it all depends based on the broker that you choose to open your practice account with. We have found many forex brokers even let you continue to use the account for longer than the time period that they say it the account is for. However, other brokers will discontinue the account as soon as the time period is up.
Forex brokers offer forex practice accounts to people as a way to get other people interested in their forex trading software and use their forex broker services. As a result - they will collect some basic contact information from you when you create your forex practice account. Depending on the broker, they may call you and see how you are doing with the account and see if they can help you get started in a real money account. Remember brokers get paid a commission only when you are making trades in a live forex account not the forex practice account.
Our advice is to use a forex practice account until you have tested your forex trading strategy and are comfortable trading the forex market. There is nothing worse than making a mistake in a real money account, especially when its something that you should have learned not to do in your practice account. If you aren?t sure yet of how you are going to trade the forex market and you are looking for a simple and easy to use system that will take about 15 minutes to use - you should check out FreedomRocks - it is an effective and easy to use forex trading system.
We have learned a lot using forex practice accounts to test out different strategies and test new theories. Often times we will be running anywhere from 3 to 5 practice accounts at the same time just to try out different forex theories. Some brokers make it easy to have many accounts and other brokers make it hard. The broker we use allows us to create new practice accounts in just a few mouse clicks and they don?t care how many practice accounts you have ? as a result ? it makes it a lot easier to test strategies on their platform as opposed to other forex brokers.
Even after you have been trading the forex market for a many years you will want to experiment and try out new methods of trading and that is what forex practice accounts are great for. Test your new forex style without putting any money at risk in a practice account.
Most forex practice accounts will work for about 30 days, some are longer and some are shorter it all depends based on the broker that you choose to open your practice account with. We have found many forex brokers even let you continue to use the account for longer than the time period that they say it the account is for. However, other brokers will discontinue the account as soon as the time period is up.
Forex brokers offer forex practice accounts to people as a way to get other people interested in their forex trading software and use their forex broker services. As a result - they will collect some basic contact information from you when you create your forex practice account. Depending on the broker, they may call you and see how you are doing with the account and see if they can help you get started in a real money account. Remember brokers get paid a commission only when you are making trades in a live forex account not the forex practice account.
Our advice is to use a forex practice account until you have tested your forex trading strategy and are comfortable trading the forex market. There is nothing worse than making a mistake in a real money account, especially when its something that you should have learned not to do in your practice account. If you aren?t sure yet of how you are going to trade the forex market and you are looking for a simple and easy to use system that will take about 15 minutes to use - you should check out FreedomRocks - it is an effective and easy to use forex trading system.
We have learned a lot using forex practice accounts to test out different strategies and test new theories. Often times we will be running anywhere from 3 to 5 practice accounts at the same time just to try out different forex theories. Some brokers make it easy to have many accounts and other brokers make it hard. The broker we use allows us to create new practice accounts in just a few mouse clicks and they don?t care how many practice accounts you have ? as a result ? it makes it a lot easier to test strategies on their platform as opposed to other forex brokers.
Even after you have been trading the forex market for a many years you will want to experiment and try out new methods of trading and that is what forex practice accounts are great for. Test your new forex style without putting any money at risk in a practice account.
Forex Demo Account - What are they really
Forex practice accounts allow you to trade the forex market while not putting your hard earned capital at risk. These accounts are often also called forex demo accounts, these accounts should be free - so if a forex broker is trying to charge you for one ? just say no and look for another broker.
Most forex practice accounts will work for about 30 days, some are longer and some are shorter it all depends based on the broker that you choose to open your practice account with. We have found many forex brokers even let you continue to use the account for longer than the time period that they say it the account is for. However, other brokers will discontinue the account as soon as the time period is up.
Forex brokers offer forex practice accounts to people as a way to get other people interested in their forex trading software and use their forex broker services. As a result - they will collect some basic contact information from you when you create your forex practice account. Depending on the broker, they may call you and see how you are doing with the account and see if they can help you get started in a real money account. Remember brokers get paid a commission only when you are making trades in a live forex account not the forex practice account.
Our advice is to use a forex practice account until you have tested your forex trading strategy and are comfortable trading the forex market. There is nothing worse than making a mistake in a real money account, especially when its something that you should have learned not to do in your practice account. If you aren?t sure yet of how you are going to trade the forex market and you are looking for a simple and easy to use system that will take about 15 minutes to use - you should check out FreedomRocks - it is an effective and easy to use forex trading system.
We have learned a lot using forex practice accounts to test out different strategies and test new theories. Often times we will be running anywhere from 3 to 5 practice accounts at the same time just to try out different forex theories. Some brokers make it easy to have many accounts and other brokers make it hard. The broker we use allows us to create new practice accounts in just a few mouse clicks and they don?t care how many practice accounts you have ? as a result ? it makes it a lot easier to test strategies on their platform as opposed to other forex brokers.
Even after you have been trading the forex market for a many years you will want to experiment and try out new methods of trading and that is what forex practice accounts are great for. Test your new forex style without putting any money at risk in a practice account.
Most forex practice accounts will work for about 30 days, some are longer and some are shorter it all depends based on the broker that you choose to open your practice account with. We have found many forex brokers even let you continue to use the account for longer than the time period that they say it the account is for. However, other brokers will discontinue the account as soon as the time period is up.
Forex brokers offer forex practice accounts to people as a way to get other people interested in their forex trading software and use their forex broker services. As a result - they will collect some basic contact information from you when you create your forex practice account. Depending on the broker, they may call you and see how you are doing with the account and see if they can help you get started in a real money account. Remember brokers get paid a commission only when you are making trades in a live forex account not the forex practice account.
Our advice is to use a forex practice account until you have tested your forex trading strategy and are comfortable trading the forex market. There is nothing worse than making a mistake in a real money account, especially when its something that you should have learned not to do in your practice account. If you aren?t sure yet of how you are going to trade the forex market and you are looking for a simple and easy to use system that will take about 15 minutes to use - you should check out FreedomRocks - it is an effective and easy to use forex trading system.
We have learned a lot using forex practice accounts to test out different strategies and test new theories. Often times we will be running anywhere from 3 to 5 practice accounts at the same time just to try out different forex theories. Some brokers make it easy to have many accounts and other brokers make it hard. The broker we use allows us to create new practice accounts in just a few mouse clicks and they don?t care how many practice accounts you have ? as a result ? it makes it a lot easier to test strategies on their platform as opposed to other forex brokers.
Even after you have been trading the forex market for a many years you will want to experiment and try out new methods of trading and that is what forex practice accounts are great for. Test your new forex style without putting any money at risk in a practice account.
Forex Seminars In Todays Market
Trading global currencies in a market that reaches a volume of nearly $2.5 trillion every day can’t be done successfully without a thorough understanding of the market. The Forex, with a 24-hour-a-day transaction period 46 times the size of all other futures markets combined, has potential for massive profitability.
The sheer volume of the market is favorable above all others due to its high liquidity, flexibility, and cost-effective transaction amounts. The average investor can trade alongside international bankers from the privacy of his or her personal computer.
In a world where currency trading courses abound, finding the right Forex seminars to fully understand the market are of utmost importance. The right course is the perfect solution for individual traders or institutions set on learning keys to Forex success. The only way to achieve financial stability and profitability on the market is through proper education, and Forex seminars can be the answer.
Forex seminars can be utilized on a variety of levels, from online Webinars to weekend on-site workshops or simple Podcasts. In some cases, a Forex professional trader can even visit institutions interested in a better understanding of the market their traders are investing in.
A comprehensive, educational workshop involves a few basic components: First, a course must teach the basics of the Forex market, from its history to its major growth in recent years. Without a basic understanding of the market investors are trading in, financial success is far from inevitable.
Even the most simple questions must be addressed: How does the Forex market work? What currencies should I trade? What technical indicators should I pay attention to? How do I identify trends? What type of entry and exit strategy should I follow?
For investors new to the market and for those who need a better understanding of where their money is going, the basics, the advantages of trading currencies and the use of leverage to magnify gains and losses is vital.
Second, a mastery of an individual’s online Forex trading platform must be met. For day traders and swing traders, a vague understanding of their platform is the beginning of extensive trading mistakes. The right Forex seminars can hold the keys to this oft-occurring trading error.
Another typical error for new traders is investing in the market without an identified system. The right Forex trading system helps traders understand when buying and selling is necessary and profitable. Trading based solely on feelings or emotions is an easy way to lose money in this industry.
Finally, the ability to understand and analyze Forex charts will always lead to greater profitability. Such charts illustrate everything happening in the market at any specified time. Thus, Forex seminars that apply a technical analysis of analyzing charts is a necessity.
Training Webinars, seminars and workshops should always be done by professional or veteran Forex investors. A one-time-only workshop will be of little help if the student can’t ask questions, refer back to the course at later dates or continue learning from further courses. Upon completion of a proper course, the opening of practice accounts or individual accounts with the investor’s own funds is the next step. With the right training, success on the Forex isn’t far away.
The sheer volume of the market is favorable above all others due to its high liquidity, flexibility, and cost-effective transaction amounts. The average investor can trade alongside international bankers from the privacy of his or her personal computer.
In a world where currency trading courses abound, finding the right Forex seminars to fully understand the market are of utmost importance. The right course is the perfect solution for individual traders or institutions set on learning keys to Forex success. The only way to achieve financial stability and profitability on the market is through proper education, and Forex seminars can be the answer.
Forex seminars can be utilized on a variety of levels, from online Webinars to weekend on-site workshops or simple Podcasts. In some cases, a Forex professional trader can even visit institutions interested in a better understanding of the market their traders are investing in.
A comprehensive, educational workshop involves a few basic components: First, a course must teach the basics of the Forex market, from its history to its major growth in recent years. Without a basic understanding of the market investors are trading in, financial success is far from inevitable.
Even the most simple questions must be addressed: How does the Forex market work? What currencies should I trade? What technical indicators should I pay attention to? How do I identify trends? What type of entry and exit strategy should I follow?
For investors new to the market and for those who need a better understanding of where their money is going, the basics, the advantages of trading currencies and the use of leverage to magnify gains and losses is vital.
Second, a mastery of an individual’s online Forex trading platform must be met. For day traders and swing traders, a vague understanding of their platform is the beginning of extensive trading mistakes. The right Forex seminars can hold the keys to this oft-occurring trading error.
Another typical error for new traders is investing in the market without an identified system. The right Forex trading system helps traders understand when buying and selling is necessary and profitable. Trading based solely on feelings or emotions is an easy way to lose money in this industry.
Finally, the ability to understand and analyze Forex charts will always lead to greater profitability. Such charts illustrate everything happening in the market at any specified time. Thus, Forex seminars that apply a technical analysis of analyzing charts is a necessity.
Training Webinars, seminars and workshops should always be done by professional or veteran Forex investors. A one-time-only workshop will be of little help if the student can’t ask questions, refer back to the course at later dates or continue learning from further courses. Upon completion of a proper course, the opening of practice accounts or individual accounts with the investor’s own funds is the next step. With the right training, success on the Forex isn’t far away.
Forex Seminars In Todays Market
Trading global currencies in a market that reaches a volume of nearly $2.5 trillion every day can’t be done successfully without a thorough understanding of the market. The Forex, with a 24-hour-a-day transaction period 46 times the size of all other futures markets combined, has potential for massive profitability.
The sheer volume of the market is favorable above all others due to its high liquidity, flexibility, and cost-effective transaction amounts. The average investor can trade alongside international bankers from the privacy of his or her personal computer.
In a world where currency trading courses abound, finding the right Forex seminars to fully understand the market are of utmost importance. The right course is the perfect solution for individual traders or institutions set on learning keys to Forex success. The only way to achieve financial stability and profitability on the market is through proper education, and Forex seminars can be the answer.
Forex seminars can be utilized on a variety of levels, from online Webinars to weekend on-site workshops or simple Podcasts. In some cases, a Forex professional trader can even visit institutions interested in a better understanding of the market their traders are investing in.
A comprehensive, educational workshop involves a few basic components: First, a course must teach the basics of the Forex market, from its history to its major growth in recent years. Without a basic understanding of the market investors are trading in, financial success is far from inevitable.
Even the most simple questions must be addressed: How does the Forex market work? What currencies should I trade? What technical indicators should I pay attention to? How do I identify trends? What type of entry and exit strategy should I follow?
For investors new to the market and for those who need a better understanding of where their money is going, the basics, the advantages of trading currencies and the use of leverage to magnify gains and losses is vital.
Second, a mastery of an individual’s online Forex trading platform must be met. For day traders and swing traders, a vague understanding of their platform is the beginning of extensive trading mistakes. The right Forex seminars can hold the keys to this oft-occurring trading error.
Another typical error for new traders is investing in the market without an identified system. The right Forex trading system helps traders understand when buying and selling is necessary and profitable. Trading based solely on feelings or emotions is an easy way to lose money in this industry.
Finally, the ability to understand and analyze Forex charts will always lead to greater profitability. Such charts illustrate everything happening in the market at any specified time. Thus, Forex seminars that apply a technical analysis of analyzing charts is a necessity.
Training Webinars, seminars and workshops should always be done by professional or veteran Forex investors. A one-time-only workshop will be of little help if the student can’t ask questions, refer back to the course at later dates or continue learning from further courses. Upon completion of a proper course, the opening of practice accounts or individual accounts with the investor’s own funds is the next step. With the right training, success on the Forex isn’t far away.
The sheer volume of the market is favorable above all others due to its high liquidity, flexibility, and cost-effective transaction amounts. The average investor can trade alongside international bankers from the privacy of his or her personal computer.
In a world where currency trading courses abound, finding the right Forex seminars to fully understand the market are of utmost importance. The right course is the perfect solution for individual traders or institutions set on learning keys to Forex success. The only way to achieve financial stability and profitability on the market is through proper education, and Forex seminars can be the answer.
Forex seminars can be utilized on a variety of levels, from online Webinars to weekend on-site workshops or simple Podcasts. In some cases, a Forex professional trader can even visit institutions interested in a better understanding of the market their traders are investing in.
A comprehensive, educational workshop involves a few basic components: First, a course must teach the basics of the Forex market, from its history to its major growth in recent years. Without a basic understanding of the market investors are trading in, financial success is far from inevitable.
Even the most simple questions must be addressed: How does the Forex market work? What currencies should I trade? What technical indicators should I pay attention to? How do I identify trends? What type of entry and exit strategy should I follow?
For investors new to the market and for those who need a better understanding of where their money is going, the basics, the advantages of trading currencies and the use of leverage to magnify gains and losses is vital.
Second, a mastery of an individual’s online Forex trading platform must be met. For day traders and swing traders, a vague understanding of their platform is the beginning of extensive trading mistakes. The right Forex seminars can hold the keys to this oft-occurring trading error.
Another typical error for new traders is investing in the market without an identified system. The right Forex trading system helps traders understand when buying and selling is necessary and profitable. Trading based solely on feelings or emotions is an easy way to lose money in this industry.
Finally, the ability to understand and analyze Forex charts will always lead to greater profitability. Such charts illustrate everything happening in the market at any specified time. Thus, Forex seminars that apply a technical analysis of analyzing charts is a necessity.
Training Webinars, seminars and workshops should always be done by professional or veteran Forex investors. A one-time-only workshop will be of little help if the student can’t ask questions, refer back to the course at later dates or continue learning from further courses. Upon completion of a proper course, the opening of practice accounts or individual accounts with the investor’s own funds is the next step. With the right training, success on the Forex isn’t far away.
TAKING THE NEWS TO SERIOUSLY
Reading the financial news papers, listening to all the financial television stations,
studying the economic reports, and visiting all of the chat rooms can be a big challenge.
You can lose prospective of why you are trading in the first place if you get caught up in
to much news. It is a good forex strategy to know some of the major things that are going on but to be a
good trader you do not need an over dose of news.
You need a combination of fundamental and technical. I lean more to the technicals.
Some of the things that I see happen to the traders that over dose on news are: Trying
to pick which way the market will go. Getting hooked on an opinion of what is going
to happen and lose all objectiveness as to what might happen. The market moves in
trends and the news will cause little bumps in the direction of the trend. When the
news dust settles the market returns to the major trend it was on. You can get spike
fever, chase the market movement and get caught from both directions in the market.
Even with all the news research one will not be the first to know what the market will
do based on the news alone. So by the time the trade comes along you are trading
discounted news that has already been factored into the price of the market. So By
using news to trade forex you are taking a gamble on which way the market will go.
The Market can make a positive move with bad news and a negative move with good news.
It is all tied to the sentiment of the market the way people react to the news not what
the news is.
studying the economic reports, and visiting all of the chat rooms can be a big challenge.
You can lose prospective of why you are trading in the first place if you get caught up in
to much news. It is a good forex strategy to know some of the major things that are going on but to be a
good trader you do not need an over dose of news.
You need a combination of fundamental and technical. I lean more to the technicals.
Some of the things that I see happen to the traders that over dose on news are: Trying
to pick which way the market will go. Getting hooked on an opinion of what is going
to happen and lose all objectiveness as to what might happen. The market moves in
trends and the news will cause little bumps in the direction of the trend. When the
news dust settles the market returns to the major trend it was on. You can get spike
fever, chase the market movement and get caught from both directions in the market.
Even with all the news research one will not be the first to know what the market will
do based on the news alone. So by the time the trade comes along you are trading
discounted news that has already been factored into the price of the market. So By
using news to trade forex you are taking a gamble on which way the market will go.
The Market can make a positive move with bad news and a negative move with good news.
It is all tied to the sentiment of the market the way people react to the news not what
the news is.
TAKING THE NEWS TO SERIOUSLY
Reading the financial news papers, listening to all the financial television stations,
studying the economic reports, and visiting all of the chat rooms can be a big challenge.
You can lose prospective of why you are trading in the first place if you get caught up in
to much news. It is a good forex strategy to know some of the major things that are going on but to be a
good trader you do not need an over dose of news.
You need a combination of fundamental and technical. I lean more to the technicals.
Some of the things that I see happen to the traders that over dose on news are: Trying
to pick which way the market will go. Getting hooked on an opinion of what is going
to happen and lose all objectiveness as to what might happen. The market moves in
trends and the news will cause little bumps in the direction of the trend. When the
news dust settles the market returns to the major trend it was on. You can get spike
fever, chase the market movement and get caught from both directions in the market.
Even with all the news research one will not be the first to know what the market will
do based on the news alone. So by the time the trade comes along you are trading
discounted news that has already been factored into the price of the market. So By
using news to trade forex you are taking a gamble on which way the market will go.
The Market can make a positive move with bad news and a negative move with good news.
It is all tied to the sentiment of the market the way people react to the news not what
the news is.
studying the economic reports, and visiting all of the chat rooms can be a big challenge.
You can lose prospective of why you are trading in the first place if you get caught up in
to much news. It is a good forex strategy to know some of the major things that are going on but to be a
good trader you do not need an over dose of news.
You need a combination of fundamental and technical. I lean more to the technicals.
Some of the things that I see happen to the traders that over dose on news are: Trying
to pick which way the market will go. Getting hooked on an opinion of what is going
to happen and lose all objectiveness as to what might happen. The market moves in
trends and the news will cause little bumps in the direction of the trend. When the
news dust settles the market returns to the major trend it was on. You can get spike
fever, chase the market movement and get caught from both directions in the market.
Even with all the news research one will not be the first to know what the market will
do based on the news alone. So by the time the trade comes along you are trading
discounted news that has already been factored into the price of the market. So By
using news to trade forex you are taking a gamble on which way the market will go.
The Market can make a positive move with bad news and a negative move with good news.
It is all tied to the sentiment of the market the way people react to the news not what
the news is.
FOREX, A Trending Market.
The Forex market is widely known by its high liquidity and high volume of transactions occurring during most of its long trading week. These characteristics highly contribute to make the Forex market a very trendy market with few trend-less periods during the whole trading period.
But what does this mean to the Forex trader? Mainly this trendy characteristic of the currency markets means that there will be plenty of opportunities for the trader to find profitable trades during the day.
As you start analyzing forex charts you will realize that the market often display's some very familiar patterns of price movement, this is; trends; and you will notice that once a pattern is established, it becomes the most probable course of future price action until the market changes. Giving you a good forecast of what comes next with the currency prices.
There are two types of markets which will become very important for you to identify and understand; these are: trending and, the less frequent, trend-less markets. Each market type has two specific patterns which you will also notice over time.
A Trending market is defined as a steady, elongated price movements with less than a 45 degree angle with occasional pauses, profit taking, or resting periods.
In a Trending market, you will notice two main and quite evident patterns:
Uptrends - A pattern of higher highs and higher lows.
Downtrends - A pattern of lower lows and lower highs.
There is also the less frequent kind of market, this is a Trend-less market with erratic price movements which are often steep (greater than 45 -degree angle) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they are constantly and rapidly oscillating with the consequence that they often result in very little net price movement over time.
In a Trend-less market, you will find these main patterns:
Choppy - An erratic pattern of higher highs and lower lows.
Sideways - A narrow pattern of lower highs and higher lows.
While up-trend and down-trend periods will offer excellent trading results most of the time, choppy markets often create stop outs, this is they activate your stops by constantly overshooting your projected resistance level but without never really crossing too far from this level; while sideways markets produce for little in either direction making them hard to trade and to make any profit during these periods.
As always in Forex, your main trading objective is to get into profitable trades most of the time and a trending market is the perfect situation to find this profitable trades by riding the trends until you make your target profit objective of the day.
But what does this mean to the Forex trader? Mainly this trendy characteristic of the currency markets means that there will be plenty of opportunities for the trader to find profitable trades during the day.
As you start analyzing forex charts you will realize that the market often display's some very familiar patterns of price movement, this is; trends; and you will notice that once a pattern is established, it becomes the most probable course of future price action until the market changes. Giving you a good forecast of what comes next with the currency prices.
There are two types of markets which will become very important for you to identify and understand; these are: trending and, the less frequent, trend-less markets. Each market type has two specific patterns which you will also notice over time.
A Trending market is defined as a steady, elongated price movements with less than a 45 degree angle with occasional pauses, profit taking, or resting periods.
In a Trending market, you will notice two main and quite evident patterns:
Uptrends - A pattern of higher highs and higher lows.
Downtrends - A pattern of lower lows and lower highs.
There is also the less frequent kind of market, this is a Trend-less market with erratic price movements which are often steep (greater than 45 -degree angle) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they are constantly and rapidly oscillating with the consequence that they often result in very little net price movement over time.
In a Trend-less market, you will find these main patterns:
Choppy - An erratic pattern of higher highs and lower lows.
Sideways - A narrow pattern of lower highs and higher lows.
While up-trend and down-trend periods will offer excellent trading results most of the time, choppy markets often create stop outs, this is they activate your stops by constantly overshooting your projected resistance level but without never really crossing too far from this level; while sideways markets produce for little in either direction making them hard to trade and to make any profit during these periods.
As always in Forex, your main trading objective is to get into profitable trades most of the time and a trending market is the perfect situation to find this profitable trades by riding the trends until you make your target profit objective of the day.
FOREX, A Trending Market.
The Forex market is widely known by its high liquidity and high volume of transactions occurring during most of its long trading week. These characteristics highly contribute to make the Forex market a very trendy market with few trend-less periods during the whole trading period.
But what does this mean to the Forex trader? Mainly this trendy characteristic of the currency markets means that there will be plenty of opportunities for the trader to find profitable trades during the day.
As you start analyzing forex charts you will realize that the market often display's some very familiar patterns of price movement, this is; trends; and you will notice that once a pattern is established, it becomes the most probable course of future price action until the market changes. Giving you a good forecast of what comes next with the currency prices.
There are two types of markets which will become very important for you to identify and understand; these are: trending and, the less frequent, trend-less markets. Each market type has two specific patterns which you will also notice over time.
A Trending market is defined as a steady, elongated price movements with less than a 45 degree angle with occasional pauses, profit taking, or resting periods.
In a Trending market, you will notice two main and quite evident patterns:
Uptrends - A pattern of higher highs and higher lows.
Downtrends - A pattern of lower lows and lower highs.
There is also the less frequent kind of market, this is a Trend-less market with erratic price movements which are often steep (greater than 45 -degree angle) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they are constantly and rapidly oscillating with the consequence that they often result in very little net price movement over time.
In a Trend-less market, you will find these main patterns:
Choppy - An erratic pattern of higher highs and lower lows.
Sideways - A narrow pattern of lower highs and higher lows.
While up-trend and down-trend periods will offer excellent trading results most of the time, choppy markets often create stop outs, this is they activate your stops by constantly overshooting your projected resistance level but without never really crossing too far from this level; while sideways markets produce for little in either direction making them hard to trade and to make any profit during these periods.
As always in Forex, your main trading objective is to get into profitable trades most of the time and a trending market is the perfect situation to find this profitable trades by riding the trends until you make your target profit objective of the day.
But what does this mean to the Forex trader? Mainly this trendy characteristic of the currency markets means that there will be plenty of opportunities for the trader to find profitable trades during the day.
As you start analyzing forex charts you will realize that the market often display's some very familiar patterns of price movement, this is; trends; and you will notice that once a pattern is established, it becomes the most probable course of future price action until the market changes. Giving you a good forecast of what comes next with the currency prices.
There are two types of markets which will become very important for you to identify and understand; these are: trending and, the less frequent, trend-less markets. Each market type has two specific patterns which you will also notice over time.
A Trending market is defined as a steady, elongated price movements with less than a 45 degree angle with occasional pauses, profit taking, or resting periods.
In a Trending market, you will notice two main and quite evident patterns:
Uptrends - A pattern of higher highs and higher lows.
Downtrends - A pattern of lower lows and lower highs.
There is also the less frequent kind of market, this is a Trend-less market with erratic price movements which are often steep (greater than 45 -degree angle) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they are constantly and rapidly oscillating with the consequence that they often result in very little net price movement over time.
In a Trend-less market, you will find these main patterns:
Choppy - An erratic pattern of higher highs and lower lows.
Sideways - A narrow pattern of lower highs and higher lows.
While up-trend and down-trend periods will offer excellent trading results most of the time, choppy markets often create stop outs, this is they activate your stops by constantly overshooting your projected resistance level but without never really crossing too far from this level; while sideways markets produce for little in either direction making them hard to trade and to make any profit during these periods.
As always in Forex, your main trading objective is to get into profitable trades most of the time and a trending market is the perfect situation to find this profitable trades by riding the trends until you make your target profit objective of the day.
World Events and Wise Forex Trading.
Forex trading has the great potential of becoming a profitable and fulfilling career that will let you have a lifestyle that few other lucrative activities in the world can offer to people from many roads in life and without asking any of those men and women for a diploma or some special certification.
But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money.
There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into ?technical? and ?fundamentalists?. Each group devoting themselves to the main tools each kind of analysis gives them.
Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns. Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economical indicators of countries economies. Though, even if divided, both tendencies tend to complement each other to some degree.
In this article I will place myself on the ?fundamentalists? side and focus on one of the situations every forex trader must be aware of and don't let the events involved affect his trading efforts.
This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner. The result of this magnification and rapid diffusion of the news about the series of unfavorable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world. And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.
If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavorable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, or of people as the case of Martha Stewart trial, etc. There is also the example of the terrorist attacks on Sep 11 in New York, March 11 in Spain, etc. Also natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.
In short, every forex trader should be totally sure that his method of trading has built-in safe guards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavorable events I mentioned above ever takes place. And being realistic, many of those events will surely happen in the future.
But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money.
There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into ?technical? and ?fundamentalists?. Each group devoting themselves to the main tools each kind of analysis gives them.
Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns. Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economical indicators of countries economies. Though, even if divided, both tendencies tend to complement each other to some degree.
In this article I will place myself on the ?fundamentalists? side and focus on one of the situations every forex trader must be aware of and don't let the events involved affect his trading efforts.
This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner. The result of this magnification and rapid diffusion of the news about the series of unfavorable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world. And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.
If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavorable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, or of people as the case of Martha Stewart trial, etc. There is also the example of the terrorist attacks on Sep 11 in New York, March 11 in Spain, etc. Also natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.
In short, every forex trader should be totally sure that his method of trading has built-in safe guards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavorable events I mentioned above ever takes place. And being realistic, many of those events will surely happen in the future.
World Events and Wise Forex Trading.
Forex trading has the great potential of becoming a profitable and fulfilling career that will let you have a lifestyle that few other lucrative activities in the world can offer to people from many roads in life and without asking any of those men and women for a diploma or some special certification.
But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money.
There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into ?technical? and ?fundamentalists?. Each group devoting themselves to the main tools each kind of analysis gives them.
Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns. Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economical indicators of countries economies. Though, even if divided, both tendencies tend to complement each other to some degree.
In this article I will place myself on the ?fundamentalists? side and focus on one of the situations every forex trader must be aware of and don't let the events involved affect his trading efforts.
This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner. The result of this magnification and rapid diffusion of the news about the series of unfavorable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world. And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.
If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavorable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, or of people as the case of Martha Stewart trial, etc. There is also the example of the terrorist attacks on Sep 11 in New York, March 11 in Spain, etc. Also natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.
In short, every forex trader should be totally sure that his method of trading has built-in safe guards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavorable events I mentioned above ever takes place. And being realistic, many of those events will surely happen in the future.
But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money.
There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into ?technical? and ?fundamentalists?. Each group devoting themselves to the main tools each kind of analysis gives them.
Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns. Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economical indicators of countries economies. Though, even if divided, both tendencies tend to complement each other to some degree.
In this article I will place myself on the ?fundamentalists? side and focus on one of the situations every forex trader must be aware of and don't let the events involved affect his trading efforts.
This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner. The result of this magnification and rapid diffusion of the news about the series of unfavorable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world. And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.
If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavorable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, or of people as the case of Martha Stewart trial, etc. There is also the example of the terrorist attacks on Sep 11 in New York, March 11 in Spain, etc. Also natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.
In short, every forex trader should be totally sure that his method of trading has built-in safe guards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavorable events I mentioned above ever takes place. And being realistic, many of those events will surely happen in the future.
Interesting Facts About FOREX.
Most experienced traders consider that the best and most profitable of the capital markets is the FOREX market. During many years FOREX trading had been the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the before mentioned institutions that annually and consistently make pretty high profits from trading in the Foreign Exchange market.
Forex is a market that is continually oscillating and in consequence with good trading opportunities during the whole trading day; this behavior is in part due to the increase in global trade and foreign investments during the last two decades that has made the economics of all countries more dependent upon one another. This means that as a country's currency fluctuates as a result of economic activity it affects the currency of other countries. For example; economic factors usually affect a currency by altering the interest rate structure and these will either appreciate or devalue the currency of that particular country and reflect the monetary health of its economy.
It is known that some banks allocate as much as 20-30% of their funds into the FOREX market, making 40-60% of all their profits trading currencies. In fact there are experts that consider that banks will cease their loan transactional business in a few years, and better focus on currency trading as their primary revenue source.
The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the FOREX market.
Forex is a market that is continually oscillating and in consequence with good trading opportunities during the whole trading day; this behavior is in part due to the increase in global trade and foreign investments during the last two decades that has made the economics of all countries more dependent upon one another. This means that as a country's currency fluctuates as a result of economic activity it affects the currency of other countries. For example; economic factors usually affect a currency by altering the interest rate structure and these will either appreciate or devalue the currency of that particular country and reflect the monetary health of its economy.
It is known that some banks allocate as much as 20-30% of their funds into the FOREX market, making 40-60% of all their profits trading currencies. In fact there are experts that consider that banks will cease their loan transactional business in a few years, and better focus on currency trading as their primary revenue source.
The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the FOREX market.
Interesting Facts About FOREX.
Most experienced traders consider that the best and most profitable of the capital markets is the FOREX market. During many years FOREX trading had been the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the before mentioned institutions that annually and consistently make pretty high profits from trading in the Foreign Exchange market.
Forex is a market that is continually oscillating and in consequence with good trading opportunities during the whole trading day; this behavior is in part due to the increase in global trade and foreign investments during the last two decades that has made the economics of all countries more dependent upon one another. This means that as a country's currency fluctuates as a result of economic activity it affects the currency of other countries. For example; economic factors usually affect a currency by altering the interest rate structure and these will either appreciate or devalue the currency of that particular country and reflect the monetary health of its economy.
It is known that some banks allocate as much as 20-30% of their funds into the FOREX market, making 40-60% of all their profits trading currencies. In fact there are experts that consider that banks will cease their loan transactional business in a few years, and better focus on currency trading as their primary revenue source.
The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the FOREX market.
Forex is a market that is continually oscillating and in consequence with good trading opportunities during the whole trading day; this behavior is in part due to the increase in global trade and foreign investments during the last two decades that has made the economics of all countries more dependent upon one another. This means that as a country's currency fluctuates as a result of economic activity it affects the currency of other countries. For example; economic factors usually affect a currency by altering the interest rate structure and these will either appreciate or devalue the currency of that particular country and reflect the monetary health of its economy.
It is known that some banks allocate as much as 20-30% of their funds into the FOREX market, making 40-60% of all their profits trading currencies. In fact there are experts that consider that banks will cease their loan transactional business in a few years, and better focus on currency trading as their primary revenue source.
The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the FOREX market.
Forex Tutorial
The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. Forex prices can change at any moment in response to real-time events, such as political unrest, crude oil prices, inflation, import and export prices, or industrial production.
Currency market players typically use "Forex analysis" as a tool in predicting currency price movements. Forex analysis itself is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basic principles of fundamental and technical analysis.
A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons or causes for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of key U.S. Government economic indicators. Some of these indicators are the Gross Domestic Product (GDP), Foreign Exchange Rates, Import and Export Prices, Industrial Production/Capacity Utilization, the Composite Index of Leading Indicators, Consumer Credit, the Consumer Price Index (CPI), Retail Sales, Housing Starts, the Employment Cost Index, and Consumer Confidence.
All of these Federal economic indicators have a marked effect on both the stock market and Forex. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve Board, the U.S. Bureau of Labor Statistics, the U.S. Department of Agriculture, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.
Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, leading economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.
A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones.
Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store."
For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.
Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.
The technical analyst typically uses charts as a tool for predicting currency price movements. The three most popular kinds of charts are line charts, vertical bar charts, and candlestick charts.
Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. However, the important point to remember here is that no one strategy or combination of strategies is 100% certain.
Currency market players typically use "Forex analysis" as a tool in predicting currency price movements. Forex analysis itself is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basic principles of fundamental and technical analysis.
A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons or causes for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of key U.S. Government economic indicators. Some of these indicators are the Gross Domestic Product (GDP), Foreign Exchange Rates, Import and Export Prices, Industrial Production/Capacity Utilization, the Composite Index of Leading Indicators, Consumer Credit, the Consumer Price Index (CPI), Retail Sales, Housing Starts, the Employment Cost Index, and Consumer Confidence.
All of these Federal economic indicators have a marked effect on both the stock market and Forex. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve Board, the U.S. Bureau of Labor Statistics, the U.S. Department of Agriculture, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.
Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, leading economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.
A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones.
Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store."
For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.
Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.
The technical analyst typically uses charts as a tool for predicting currency price movements. The three most popular kinds of charts are line charts, vertical bar charts, and candlestick charts.
Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. However, the important point to remember here is that no one strategy or combination of strategies is 100% certain.
Forex Tutorial
The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. Forex prices can change at any moment in response to real-time events, such as political unrest, crude oil prices, inflation, import and export prices, or industrial production.
Currency market players typically use "Forex analysis" as a tool in predicting currency price movements. Forex analysis itself is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basic principles of fundamental and technical analysis.
A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons or causes for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of key U.S. Government economic indicators. Some of these indicators are the Gross Domestic Product (GDP), Foreign Exchange Rates, Import and Export Prices, Industrial Production/Capacity Utilization, the Composite Index of Leading Indicators, Consumer Credit, the Consumer Price Index (CPI), Retail Sales, Housing Starts, the Employment Cost Index, and Consumer Confidence.
All of these Federal economic indicators have a marked effect on both the stock market and Forex. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve Board, the U.S. Bureau of Labor Statistics, the U.S. Department of Agriculture, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.
Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, leading economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.
A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones.
Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store."
For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.
Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.
The technical analyst typically uses charts as a tool for predicting currency price movements. The three most popular kinds of charts are line charts, vertical bar charts, and candlestick charts.
Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. However, the important point to remember here is that no one strategy or combination of strategies is 100% certain.
Currency market players typically use "Forex analysis" as a tool in predicting currency price movements. Forex analysis itself is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basic principles of fundamental and technical analysis.
A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons or causes for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of key U.S. Government economic indicators. Some of these indicators are the Gross Domestic Product (GDP), Foreign Exchange Rates, Import and Export Prices, Industrial Production/Capacity Utilization, the Composite Index of Leading Indicators, Consumer Credit, the Consumer Price Index (CPI), Retail Sales, Housing Starts, the Employment Cost Index, and Consumer Confidence.
All of these Federal economic indicators have a marked effect on both the stock market and Forex. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve Board, the U.S. Bureau of Labor Statistics, the U.S. Department of Agriculture, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.
Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, leading economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.
A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones.
Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store."
For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.
Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.
The technical analyst typically uses charts as a tool for predicting currency price movements. The three most popular kinds of charts are line charts, vertical bar charts, and candlestick charts.
Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. However, the important point to remember here is that no one strategy or combination of strategies is 100% certain.
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