04‏/08‏/2009

How to decide on which currency pair to trade: EUR/USD or GBP/USD

Many times, traders wonder “which pair is the better pick”. I say, let the charts decide it for you and take all of the guess work out of it.

Since both the EUR/USD and GBP/USD have the USD in common, their differences are EUR and GBP. So if we got a “dollar move” they’re both going to be affected some. However, the real difference comes in when you directly compare EUR to GBP and see which is the stronger/weaker currency.

You can do this by looking to the EUR/GBP pair. Right now, EUR/GBP is in an obvious downtrend. This can be seen by the red downtrend line below. It can be seen by the declining 50 day simple moving average (SMA). It can also be seen by the MACD being below the zero line and its lines crossing over to the downside. This can also be seen, most recently from it breaking down out of its upward correction (red circled area
Therefore, CLEARLY right now, the stronger of the two is the GBP/USD. So if you feel that these pairs are headed higher, then go with GBP/USD. Right now, GBP/USD’s daily trend is upward, so that would be my pick.

Now if you felt that the trend was downward or turning downward, then you’d pick the “weaker candidate” to pick on which would be EUR/USD (buy strength/short weakness). However, right now, so far their daily trends are still upward as shown by the 50 period simple moving average on their daily charts.

Notice though, how much EUR/USD is struggling and how GBP/USD is starting to pop up higher right now. That’s due to the advantage of buying the stronger candidate. And right now, that’s GBP/USD when you directly compare the two.

You can do this for any pairs. For instance, now if I wanted to see if GBP or AUD were the strongest, I could look to the GBP/AUD pair. This could give me a bias as to whether I’d be better off buying GBP/USD or AUD/USD, for instance.

Currencies are a “comparative/relative” game. In other words, you always want to “rig the fight” with the absolute strongest candidate vs. the absolute weakest candidate and then “bet on that match” by buying the stronger vs. the weaker.

This, coupled with great risk management, will greatly improve your odds of success in trading. In other words, don’t over-leverage your account. You should probably be trading no more than 1 standard mini lot per $2,000-$3,000 in your account OR 1 micro lot per $200 to $300 in your micro account.

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.
This is why “top and bottom pickers” almost always give up their money to the trend followers. Oh sure, there’s eventually ONE of these that will ultimately be the true “top or bottom” but in between ..there are tons of places that appear to be the top or bottom and are losing trades. So the odds are skewed against them and skewed towards the trend trader.

See a historical example of this here.

Oil rises above $71 from the $62 area just days ago!

Last week we had a huge gain in oil inventories. Now, in theory, that should have held oil lower. However, in reality, the reverse happened.

This tells me that traders are looking to the improvement in GDP numbers lately (particularly that of the U.S.) and how it will effect the demand that’s placed on oil supplies as economies start to actually grow once again (rather than contract).

This has pushed USD/CAD past through what some had thought would be a double bottom. In some of my writings, I’d been cautioning against that thought of a bottom because the fundamentals of many countries have been improving for 3-4 months running now.

So one has to ask themselves…if things are improving and the likelihood for a “return to growth” is around the corner, then what should that do to oil? It should take it higher. Well, that’s bad for the U.S. dollar and at the same time, good for the Canadian dollar since Canada exports tons of oil.

It’s bad for the U.S. dollar because oil is priced in dollars and the two (over time) tend to head in opposite directions. The U.S. Dollar Index has been diving ever since March and its trend is (and has been) downward since then. That trend is unlikely to change.

Therefore, after “dollar rallies” start to fade, they should be shorted (in my opinion) since the main “dollar trend” is downward.

This will likely take USD/CAD back to parity (1.0000) sooner rather than later. It wouldn’t surprise me if we see this reached in the coming weeks to month or two maximum.
Don’t try to “catch a falling knife”. Counter trend traders are the food for trend traders. Don’t get caught up in being a counter trend trader and therefore placing the odds against you. Become a “trend trader” and place the odds in your favor.

How much influence does a government really have over its currency?

I’m often asked…”How much influence does a government really have over its currency?”

I say, it has tons to do with it. A government really “sets the tone” for its currency in many respects.

How so? Here are seven major ways that I believe a government greatly influences its currency.

7 Ways a Government Influences its Currency!

They set the tone by the policies that they set. Ex. Sarbanes-Oxley has driven money away from the U.S. stock markets and IPO market into other markets, thus hurting the long term prospects for the U.S. dollar. Europe has been more favorable to corporations, so money has flowed there and not to America as much due to this.

They set the tone by what they do with their printing presses. If a government resists the temptation to print tons of money, then it will retain its value. If it “waters it down” by printing tons of it, then it erodes the value of it away. Australia is not quick to print money, yet the U.S. is!

If it encourages “money inflows” into its country through making products that the outside world wants, it ensures inflows into its currency. If it is a country that is heavily involved mainly in the services sectors and itself is a net importer of goods, then there’s huge likelihood that they are setting their currency up for a fall. This is exactly what we have in the U.S.! Yet Australia actually mines and exports many of the world’s most needed commodities: Gold, Copper, Wheat, etc.

If a nation stores up monetary surpluses, it provides a better sentiment for investors and causes “inflows” of money very easily. However, if the country has blossoming deficits, it discourages money flows into the country and actually scares some of it away and prevents other “new money” that would like to enter that country from entering due to them being so worried about their ability to repay their debts. Again, a problem of the U.S. Yet China has huge surpluses.

The ability of investors to trust a government is another huge one. There is a ton of potential money that COULD go into Russia but WON’T go into Russia because you never know what they will do next. Their government is so corrupt and has such a bad image from the outside world of being so shady in their dealings with much of the rest of the world (and their own people/corporations) that it hinders some “inflows” into their currency. Yet Canada and Australia’s governments have great track records.

What a country does with their interest rates has a HUGE effect upon inflows and outflows in a currency. If interest rates are high and headed higher, it generally encourages money to it as investors seek higher yields on their money. However, if a country holds their rates unusually low, then they’re encouraging outflows. Examples of this right now are the U.S. and Japan. Rates are unusually low and thus money is starting to flow away from them once again. Australia and New Zealand were two of the only major countries that weren’t inclined to take their rates near zero percent like most of the rest of the industrialized world, and they have been rewarded the most as things have started to snap back for their financial markets and currencies.

Governments that are “tax friendly” to residents and especially to corporations are likely to see more inflows than those who aren’t. This is why so many companies are moving away from the U.S. as Obama pours on the taxes and they run towards places like Dublin, Ireland. This hurts the dollar and helps the euro!

These are seven huge areas that come to mind where a government plays a huge role in influencing their currency, whether they realize it or not…and many times they don’t (because they’re politicians and not savvy investors!

Forex Trading is a Fantastic Way to Earn an Income From Your Computer

Forex trading can be your gateway to financial freedom if you take the time and put in the effort to acquire a firm grounding in the basics. If you go into a trade ill-prepared just because other people are trading, you are bound to lose your shirt.

There is money to be made through forex trading, that is for sure, but you must do your research and be ready for it or you'll lose money and time. You have to account for a lot of factors ahead of trading because there can be a lot of money riding on that position.

Many retail investors have jumped aboard the currency trading boat thanks to it being opened up to the general public thanks to the internet.

According to statistics provided by brokers, a large majority of trader never succeed in forex trading, often losing all of their capital with the lucky ones among them breaking even. Only around the top 5% are able to work the system for consistent and ongoing profits.

This goes to show that making money on the forex market is no easy task. Successful traders have to instill an attitude that enables them to objectively look at the situation of that trading day. If a trader gets cocky and believes he has figured out the market, then that is usually the beginning of the end of his career.

The forex market is an ever-changing, highly volatile and unpredictable environment. You are unable to enter and exit the forex market at the same time. The only way to add any kind of predictability is by utilizing the services of a forex trading robot.

This automated software will give you a fighting chance of forseeing the market's movement over a certain time period. With the feedback from this software, a trader is able to open a position on a currency pair with the robot taking over the monitoring of and if need be the closing of the position.

Not using a stop loss is a cardinal sin in trading and must always be implemented to minimize potential losses. Having this automation in place allows the trader the freedom to leave his computer and do other activities with his time.

Automated trading software will certainly be to your benefit, but be sure to review various ones before purchasing. If you find several that meet your requirements and your budget permits, then get all of them.

Using Currency Trading Charts To Forecast Price Movements

Using Currency Trading Charts To Forecast Price Movements
Currency trading charts and the various indicators that come with them are the tools used by nearly every trader in forex And it can be the skill with which you use these tools that can determine whether you ever get to be successful, so let’s have a quick survey of them . .Before we do, bear in mind that there are only three pieces of information you’re looking for from any indicator or chart You want to know whether the price is going to move more than a few points if so, whether it is likely to move upwards or downwards whether there is likely to be any volatility, or movement in the opposite direction, of more than a limited number of points before your target is reached . . .1 Bollinger Bands . .These are two lines drawn on the chart to show you the volatility of the market Very similar to support and resistance levels, they show you at a glance whether the price has strayed upwards or downwards too much, bearing in mind where it should be according to the normal rules of the marketplace So if the price has broken through one of the lines then it is a sign that it will shortly retrace back into the space between the two The lines themselves can and do move up and down roughly reflecting the actual price movements so this means the retracement may not always be by the same number of points as the original movement . .If the price has stayed between the two lines for a protracted period, then when it does eventually break through one of them it is often a sign of a strong movement in that direction, and so you can often make a successful trade based on that information . .2 Stochastics . .Stochastics uses the moving average principle to determine whether the market is overbought or oversold The theory is that if the moving average lines are above 70 the market is overbought (which means you should buy) and if they are under 30 the market is oversold (so you should sell, or go short) . .3 Parabolic Stop And Reversal (SAR) . .This is more of a long term indicator, and is designed to let you know when there is a reversal in trend It is displayed as a series of dots When the price breaks through this line then it is a sign of a definite movement in that direction that you can trade on . .4 Relative Strength Index (RSI) . .This is similar to Stochastics in that it can tell you if a market is overbought or oversold If you use the two indicators together, and they both agree at some point, then it’s a strong indication that the price will reverse The trouble is that it’s usually difficult to tell when exactly the reversal will take place, so if you trade on such information using a spread betting account then you should use a large stop loss if you can afford it . .5 Simple Moving Average (SMA) . .If, for example, you have a 50 period simple moving average setting then it shows you the average price over the previous 50 accounting periods So if it is an hourly chart, i e where each bar, or “candlestick” represents the price movement of one hour, then the SMA shows the average price of the last 50 hours . .You can tell at a glance from this whether the price has been rising or falling over that period This in turn shows you what the current “trend” is If you trade following the “trend”, as many successful traders do, then the SMA is your guide In fact the SMA is probably the only indicator, apart from the chart itself, that you really need It’s certainly the only one that many successful traders use . .It’s normal to use two SMAs, for example a 5 period and a 30 period, if you’re a short term trader, or a 25 period and a 150 period, if you’re a long term trader You then watch out for the shorter period SMA crossing over the longer period SMA, which is often a signal to go long or short, as the case may be The strongest signal is where the current price goes through both the SMAs at a steep angle .

Currency Trading: Finding Your Niche

Currency Trading: Finding Your Niche
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Currency trading is quite similar to trading stocks on the market. While you may or may not have any familiarity with those options, you should know that trading in this form is quite popular and it keeps gaining in popularity. There are many reasons for that, but in most cases it is popular because it works and is quite straightforward which makes it very well worth your time. Currency trading is a method of trading based on the value of currency. In most cases, the world?s economy is the judge of how much you can and will make. This is different than with stocks which rely heavily on the United State?s economy. In this case, you are dealing with world markets and world currency rates. The basis is very simple. You simply will purchase currency at a time in which it is worth less. For example, the dollar is worth more. You purchase low and then as the economy strengthens in that country, you can sell to make a profit. Basically you turn in your money for dollars again. But, that is quite a simplistic look at it. There are many things that influence currency trading. What makes it attractive to anyone, anywhere is that you can invest pennies or quite a bit of money. Obviously you can make more money, the more you invest, but you still make money either way. Currency trading is a market that many are looking to get into for that very reason. There are many currency trading options available to you to help you as well. You will find that people often have a system in place to help them monitor and make sales. This software is able to be found throughout the web and can be quite beneficial if you want to do the trading yourself. If you do not, you can easily get the help of any of the currency trading advisors out there. It?s a great opportunity!
How to succeed as a newbie FOREX investor.
Many times there is a great deal of beliefs about how to crack into the FOREX markets. Not all information is legit as information is often skewed in the direction of pushing a product or company. Bad tips can hurt you and free recommendations is often just as valuable then what you paid for it — worthless. Therefore that being the case, here are ten success tips for the green FOREX investor. 1. Before actually investing any real funds, start by paper trading. Paper trading is no risk training, just write down the trade you would have invested for real and track the prices. 2. Don’t trade with money you can’t afford to take a loss with. There are some companies that permit you to get started trading for just several bucks or the price of a movie. 3. Forex graphs are one of the most significant things you should learn in order to successfully trade in the FOREX market. Not having this understanding, you are destined to fail in this very liquid market. 4. Learn persistence to trade through the losing sessions. You need endurance to make the big gains. 5. Do not get emotional - emotional traders are tempted to chase bad cash after good, and subject themselves to even greater losses. Greed frequently compels the emotional trader to try to recover every lost nickel. 6. Stay on top of the business news. You can experience the same practice market actions and go through the same process of making decisions based on new information, react to charting patterns, and tracking your performance the same way skilled FOREX traders do. 7. The trend is your friend. Often momentum falls off but the usual trend remains the same therefore the trade still succeeds, it only takes its own time, and the retracements might be big. 8. Stay focused. The accurate questions that we should ask ourselves are why trade and what do we want out of it? 9. Know when to exit out. Adhere to the rules of cutting your losses low and allowing your profits run, because you’re cutting your losses short, those trades are going to last for a smaller amount of time. Learn from your mistakes and regain your spot in the next trade. 10. Create many streams of income. Trading FOREX is just one great wealth creating idea. Other traders earn more income by working part time as a FOREX affiliate earning commissions. Do not delay in getting started learning about Foreign Currency Exchange. It is through education that an investor can become a winning trader.Don Tracer is knowledgeable in FOREX. Mr. Tracer invites you to visit his website for more data relating to Foreign Currency Exchange.
Using Currency Trading Charts To Forecast Price Movements
Currency trading charts and the various indicators that come with them are the tools used by nearly every trader in forex And it can be the skill with which you use these tools that can determine whether you ever get to be successful, so let’s have a quick survey of them . .Before we do, bear in mind that there are only three pieces of information you’re looking for from any indicator or chart You want to know whether the price is going to move more than a few points if so, whether it is likely to move upwards or downwards whether there is likely to be any volatility, or movement in the opposite direction, of more than a limited number of points before your target is reached . . .1 Bollinger Bands . .These are two lines drawn on the chart to show you the volatility of the market Very similar to support and resistance levels, they show you at a glance whether the price has strayed upwards or downwards too much, bearing in mind where it should be according to the normal rules of the marketplace So if the price has broken through one of the lines then it is a sign that it will shortly retrace back into the space between the two The lines themselves can and do move up and down roughly reflecting the actual price movements so this means the retracement may not always be by the same number of points as the original movement . .If the price has stayed between the two lines for a protracted period, then when it does eventually break through one of them it is often a sign of a strong movement in that direction, and so you can often make a successful trade based on that information . .2 Stochastics . .Stochastics uses the moving average principle to determine whether the market is overbought or oversold The theory is that if the moving average lines are above 70 the market is overbought (which means you should buy) and if they are under 30 the market is oversold (so you should sell, or go short) . .3 Parabolic Stop And Reversal (SAR) . .This is more of a long term indicator, and is designed to let you know when there is a reversal in trend It is displayed as a series of dots When the price breaks through this line then it is a sign of a definite movement in that direction that you can trade on . .4 Relative Strength Index (RSI) . .This is similar to Stochastics in that it can tell you if a market is overbought or oversold If you use the two indicators together, and they both agree at some point, then it’s a strong indication that the price will reverse The trouble is that it’s usually difficult to tell when exactly the reversal will take place, so if you trade on such information using a spread betting account then you should use a large stop loss if you can afford it . .5 Simple Moving Average (SMA) . .If, for example, you have a 50 period simple moving average setting then it shows you the average price over the previous 50 accounting periods So if it is an hourly chart, i e where each bar, or “candlestick” represents the price movement of one hour, then the SMA shows the average price of the last 50 hours . .You can tell at a glance from this whether the price has been rising or falling over that period This in turn shows you what the current “trend” is If you trade following the “trend”, as many successful traders do, then the SMA is your guide In fact the SMA is probably the only indicator, apart from the chart itself, that you really need It’s certainly the only one that many successful traders use . .It’s normal to use two SMAs, for example a 5 period and a 30 period, if you’re a short term trader, or a 25 period and a 150 period, if you’re a long term trader You then watch out for the shorter period SMA crossing over the longer period SMA, which is often a signal to go long or short, as the case may be The strongest signal is where the current price goes through both the SMAs at a steep angle .

Using Currency Trading Charts To Forecast Price Movements

Using Currency Trading Charts To Forecast Price Movements
------------------------------------------
Currency trading charts and the various indicators that come with them are the tools used by nearly every trader in forex And it can be the skill with which you use these tools that can determine whether you ever get to be successful, so let’s have a quick survey of them . .Before we do, bear in mind that there are only three pieces of information you’re looking for from any indicator or chart You want to know whether the price is going to move more than a few points if so, whether it is likely to move upwards or downwards whether there is likely to be any volatility, or movement in the opposite direction, of more than a limited number of points before your target is reached . . .1 Bollinger Bands . .These are two lines drawn on the chart to show you the volatility of the market Very similar to support and resistance levels, they show you at a glance whether the price has strayed upwards or downwards too much, bearing in mind where it should be according to the normal rules of the marketplace So if the price has broken through one of the lines then it is a sign that it will shortly retrace back into the space between the two The lines themselves can and do move up and down roughly reflecting the actual price movements so this means the retracement may not always be by the same number of points as the original movement . .If the price has stayed between the two lines for a protracted period, then when it does eventually break through one of them it is often a sign of a strong movement in that direction, and so you can often make a successful trade based on that information . .2 Stochastics . .Stochastics uses the moving average principle to determine whether the market is overbought or oversold The theory is that if the moving average lines are above 70 the market is overbought (which means you should buy) and if they are under 30 the market is oversold (so you should sell, or go short) . .3 Parabolic Stop And Reversal (SAR) . .This is more of a long term indicator, and is designed to let you know when there is a reversal in trend It is displayed as a series of dots When the price breaks through this line then it is a sign of a definite movement in that direction that you can trade on . .4 Relative Strength Index (RSI) . .This is similar to Stochastics in that it can tell you if a market is overbought or oversold If you use the two indicators together, and they both agree at some point, then it’s a strong indication that the price will reverse The trouble is that it’s usually difficult to tell when exactly the reversal will take place, so if you trade on such information using a spread betting account then you should use a large stop loss if you can afford it . .5 Simple Moving Average (SMA) . .If, for example, you have a 50 period simple moving average setting then it shows you the average price over the previous 50 accounting periods So if it is an hourly chart, i e where each bar, or “candlestick” represents the price movement of one hour, then the SMA shows the average price of the last 50 hours . .You can tell at a glance from this whether the price has been rising or falling over that period This in turn shows you what the current “trend” is If you trade following the “trend”, as many successful traders do, then the SMA is your guide In fact the SMA is probably the only indicator, apart from the chart itself, that you really need It’s certainly the only one that many successful traders use . .It’s normal to use two SMAs, for example a 5 period and a 30 period, if you’re a short term trader, or a 25 period and a 150 period, if you’re a long term trader You then watch out for the shorter period SMA crossing over the longer period SMA, which is often a signal to go long or short, as the case may be The strongest signal is where the current price goes through both the SMAs at a steep angle .
Will The Iraqi Dinar Rise Now That The Constitution Is Approved?
The current constitution of Iraq was approved by an October 15, 2005 ratification vote. The proposed constitution was drafted in 2005 by members of the Interim Iraqi Government to replace the Law of Administration for the State of Iraq for the Transitional Period, which had been put in force by the Coalition Provisional Authority after the Iraq War and occupation of Iraq by the United States and Coalition forces. The drafting and adoption of the new constitution was not without controversy, however, as sectarian tensions in Iraq figured heavily in the process. The deadline for the conclusion of drafting was extended on four occasions because of the lack of consensus on religious language. In the end, only three of the 15 Sunni members of the drafting committee attended the signing ceremony, and none of them signed it. Sunni leaders were generally urging the electorate to reject the constitution in the 15 October referendum, but were overwhelmingly rejected by the voters. The text of the proposed constitution was read to the National Assembly on Sunday, 28 August 2005. It describes the state as a “democratic, federal, representative republic” and a “multiethnic, multi-religious and multi-sect country”. Excerpts From The Preamble We the sons of Mesopotamia, the creators of the alphabet, and the cradle of arithmetic: went by the millions for the first time in our history to the ballot box, men and women, young and old, on January 30, 2005, remembering the pains of the despotic band’s sectarian oppression of the majority; inspired by the suffering of Iraq’s martyrs - Sunni and Shiite, Arab, Kurd and Turkomen so we can create a new Iraq of the future, without sectarianism, racial strife, regionalism, discrimination or isolation. Some References To Monetary Concerns From The Body Of The Constitution The Arabic language and Kurdish languages are the two official languages of Iraq. The use of both languages is officially endorsed in any setting enjoined by the principle of equality such as bank notes, passports and stamps. The Central Bank of Iraq is a financially and administratively independent institution and is responsible before the Council of Representatives. The federal government shall have exclusive authorities in the issuing of currency, formulating monetary policy, and establishing and administering a central bank. Now, will the Iraqi Dinar rise? This currency has already gained 25% the past half year. The more stable Iraq gets the more the dinar will rise in my opinion. This is only one of the many steps Iraq has to make but for exceptance by the world bank a big one. Still keep in mind that investing in Iraqi Dinars should be on the most risky side of your investment portfolio. Marcel Heersema is a full-time online investor who is always looking for the best money making opportunities on the net.

Forex Trading Tips

Forex Trading Tips
Forex is traded for three key reasons; countries managing their foreign currency reserves, companies buying and selling good and services in foreign currencies and investors speculating for profit. All traders research the market in different ways. Some prefer analyzing what is called fundamentals such as a country s interest rates, trade balance and the general state of its economy, reflected in measurements of unemployment, GDP, building approvals and business investment. Other traders prefer technical analysis, using charting, such as pivot points, candlestick patters and Fibonacci retracements. The important thing to remember is that the market is subject to both of these styles and as such, it s important for traders to have an understanding of both. Trading Systems Some traders do not have the time or the training to be able to do proper fundamental and technical analysis and prefer to use a robotic trading system. These have generally been developed by successful traders who have a winning formula, which they package up for sale. Choosing the right one can avoid unnecessary losses and subscription fees. A simple way to test a trading system is to open a demo account with a forex broker you like and trade a demo account without real money. Over time, you ll see how profitable it is, or isn t. When you find a system that works for you, you can use your demo information to work out the average profit per trade. If you multiply that by the actual amount that you intent to invest in each trade, you can begin to work out the potential profit of your forex trading. Before getting too carried away with the possibilities, it is important to be realistic about the fact that demo accounts and live trading is a howl different experience and you shall most probably end up with different results altogether, and not for the better. In addition you need to take into account how much time you have to trade, over any given period. Family and work pressure can also limit the amount of trades you can successfully execute. Managing your trading funds As in any business, managing the money in your account is very important. This involves setting a limit of how much you ll invest in each trade, as well as how much you re willing to leverage. Poor money management can result in you quickly losing your initial capital. Speculators are therefore well advised to know their limits in their ability to research and analyze, work out which style fits them best and if necessary, find a trading systems that works for them.
How to succeed as a newbie FOREX investor.
Many times there is a great deal of beliefs about how to crack into the FOREX markets. Not all information is legit as information is often skewed in the direction of pushing a product or company. Bad tips can hurt you and free recommendations is often just as valuable then what you paid for it — worthless. Therefore that being the case, here are ten success tips for the green FOREX investor. 1. Before actually investing any real funds, start by paper trading. Paper trading is no risk training, just write down the trade you would have invested for real and track the prices. 2. Don’t trade with money you can’t afford to take a loss with. There are some companies that permit you to get started trading for just several bucks or the price of a movie. 3. Forex graphs are one of the most significant things you should learn in order to successfully trade in the FOREX market. Not having this understanding, you are destined to fail in this very liquid market. 4. Learn persistence to trade through the losing sessions. You need endurance to make the big gains. 5. Do not get emotional - emotional traders are tempted to chase bad cash after good, and subject themselves to even greater losses. Greed frequently compels the emotional trader to try to recover every lost nickel. 6. Stay on top of the business news. You can experience the same practice market actions and go through the same process of making decisions based on new information, react to charting patterns, and tracking your performance the same way skilled FOREX traders do. 7. The trend is your friend. Often momentum falls off but the usual trend remains the same therefore the trade still succeeds, it only takes its own time, and the retracements might be big. 8. Stay focused. The accurate questions that we should ask ourselves are why trade and what do we want out of it? 9. Know when to exit out. Adhere to the rules of cutting your losses low and allowing your profits run, because you’re cutting your losses short, those trades are going to last for a smaller amount of time. Learn from your mistakes and regain your spot in the next trade. 10. Create many streams of income. Trading FOREX is just one great wealth creating idea. Other traders earn more income by working part time as a FOREX affiliate earning commissions. Do not delay in getting started learning about Foreign Currency Exchange. It is through education that an investor can become a winning trader.Don Tracer is knowledgeable in FOREX. Mr. Tracer invites you to visit his website for more data relating to Foreign Currency Exchange.
How to Become a Professional Forex Trader and make money at the Same Time
If you want to learn how to trade the Foreign Exchange Markets (Forex or FX) has never been as easy as it is today with the spread of the internet. It is quit simple to learn Forex trading online with many fantastic free and commercially available recourses available which are growing each and every day. After becoming educated in the finer methods of trading, the next step is to start the experimentation processes and refine the techniques you have been taught in a customized approach with meets your individualized goals related to realizable profits. Most the people that ask me for advice think that is a long, tedious, expensive and complicated process to become a rich professional Forex trader. WRONG, WRONG, WRONG! Do I need to say it any more times? Do you know that if you played basketball in the NBA and made 50% of your shots you would be considered one of the greatest shooters of all time? When you are trading Forex you are guaranteed to make 50% of your shots, that’s right you will make winning trades 50% of the time even if you just flip a coin when attempting to decide which currency to pick. So how hard can it really be? Not to difficult is the answer! If it is so easy then why do so many novice traders never make it to the next level and become professional traders? This can be answered with one word, GREED. What they don’t understand is your not going to make a million dollars your first week of trading, but they are going to try anyway. The financial killer to most beginning FX traders is the MARGINS offered by the brokerage firms. If there were no margins one would simply need to make more money than the commissions charged by the brokerage firms to make money. After all, you are GUARANTEED to be correct 50% of the time when entering a trade. There are only two paths a currency can go, UP or DOWN. They can’t go any other ways, all though some of us in the profession for a long time sometimes think they do. So where do you learn about controlling your margins? I will first tell you where you don’t and that is the FOREX BROKERAGE FIRMS. Of course it is not in there interest to explain the financial snake pit you are about to enter. To learn Forex trading online and how to RULE margins and NOT let them RULE you then you are going to need to sign up for a commercial available course. If you knew nothing about the Forex markets at all, but you fully understood the concept of margins and how to make them work FOR you as opposed to AGAINST you then you would not be reading this article, but sipping frozen banana and rum drinks under an umbrella on a beach in Tahiti. Just sit back and think about for yourself a little bit, if you are guaranteed to make winning trades 50% of the time exactly how can you not make money at this?Learn how to make money online automatically and successfully by trading on forex

How to succeed as a newbie FOREX investor.

How to succeed as a newbie FOREX investor.
Many times there is a great deal of beliefs about how to crack into the FOREX markets. Not all information is legit as information is often skewed in the direction of pushing a product or company. Bad tips can hurt you and free recommendations is often just as valuable then what you paid for it — worthless. Therefore that being the case, here are ten success tips for the green FOREX investor. 1. Before actually investing any real funds, start by paper trading. Paper trading is no risk training, just write down the trade you would have invested for real and track the prices. 2. Don’t trade with money you can’t afford to take a loss with. There are some companies that permit you to get started trading for just several bucks or the price of a movie. 3. Forex graphs are one of the most significant things you should learn in order to successfully trade in the FOREX market. Not having this understanding, you are destined to fail in this very liquid market. 4. Learn persistence to trade through the losing sessions. You need endurance to make the big gains. 5. Do not get emotional - emotional traders are tempted to chase bad cash after good, and subject themselves to even greater losses. Greed frequently compels the emotional trader to try to recover every lost nickel. 6. Stay on top of the business news. You can experience the same practice market actions and go through the same process of making decisions based on new information, react to charting patterns, and tracking your performance the same way skilled FOREX traders do. 7. The trend is your friend. Often momentum falls off but the usual trend remains the same therefore the trade still succeeds, it only takes its own time, and the retracements might be big. 8. Stay focused. The accurate questions that we should ask ourselves are why trade and what do we want out of it? 9. Know when to exit out. Adhere to the rules of cutting your losses low and allowing your profits run, because you’re cutting your losses short, those trades are going to last for a smaller amount of time. Learn from your mistakes and regain your spot in the next trade. 10. Create many streams of income. Trading FOREX is just one great wealth creating idea. Other traders earn more income by working part time as a FOREX affiliate earning commissions. Do not delay in getting started learning about Foreign Currency Exchange. It is through education that an investor can become a winning trader.Don Tracer is knowledgeable in FOREX. Mr. Tracer invites you to visit his website for more data relating to Foreign Currency Exchange.

A Forex Review Of Forex Megadroid Is Forex Megadroid A Huge Money Maker Or A Scam

A Forex Review Of Forex Megadroid Is Forex Megadroid A Huge Money Maker Or A Scam
The system Forex MegaDroid is one of the most popular and best selling items of its kind ever This Forex review will attempt to explain the reasons behind this tremendous accomplishment This currency trading system is a software product specifically planned and built to help private investors exploit the FX markets for profits . .Due to the achievements it has experienced at exactly this essential factor is the reason behind its explosive growth Today there are well over one hundred Forex trading systems that an individual has to choose from Some of them are very good products, but very few of them are exceptional as is this item at the all important factor of creating income for its users . . .It was developed by Albert Perrie and John Grace with a combination of 38 years of experience as highly lucrative professional currency traders Since a software system is essentially just an extension of the knowledge and experience of the people behind the project it is extremely important that those people are the best of the best in there field Fortunately for all of its clients Albert and John certainly filled there rolls very well . .During testing this product performed excellent That was the only way to put it, since it doubled the first and only funding of my account in approximately fifteen days It was able to do this because of “Reverse Correlated Time And Price Analysis (RCTPA,)” which is a propriety concept that is only available with this product . .The conclusion of this Forex review is that if you don’t have Forex MegaDroid in your weapons arsenal, then you should as soon as possible It is a very powerful income producer for it clients and that is the principle reason for its worldwide success When you have a few minutes
Emini Futures Day Trading : Fundamentals And Simulated Trading System
Fundamental Analysis Fundamental analysis is a methodology for analysis of a company as a viable stock that you want to hold for long term. Fundamental analysis is more widespread in the world of investing since you are going to hold your companies for 10 to 20 years, you do not wish that your companies go bankrupt the next day. Some of the common ratios used are P/E ratios (price earnings ratios) which measures the relative price of the stock to the earnings of the company, the EPS (earnings per share), the debt equity ratio and tons of other ratios. Although I have spent considerable time studying such ratios I discovered that you do not really need such information to be successful in day trading. I repeat, fundamental analysis plays a marginal role in day trading. In fact, most of the time, I don’t follow it at all. If you still have reservations about ignoring fundamental analysis, I recommend trading ETFs (exchange traded funds) such as QQQQ which mirrors the movement of the NASDAQ 100. In essence, you are actually trading the index like a normal stock. Indexes usually have a huge number of stocks in them, making them less susceptible to company specific news. However if you are paranoid, then you might still want to follow the news of the major companies in the index. here is no lack of information and no end to analysis. Knowing the fundamentals might seem cool when you discuss company so and so over a cocktail party, but it will not help you rip money off Wall Street in day trading. Being able to remove fundamental analysis from the decision making process is also one of the reasons why I recommend trading Emini index futures. Paper Trading: Don’t Ever Underestimate it! Paper trading refers to trading with virtual money, you do not use real money. You jot down in your notebook when you bought at what price and why. When you sell, you record in your notebook again why you sold and calculate the profit or loss associated with the trade. If you cannot make money by paper trading, you can forget about making money in real trading. Always test a new trading idea with paper trading first before using real money. Also start with paper trading after a long period of break, to help you get back in touch with trading. Although there is very little difference between paper trading and real trading in Emini, real trading is subjected to slippage and psychological factors come into play when you are using real money. Do not underestimate the impact of psychological factors on your trading. After you have a reasonable method and money management techniques, it is the psychological factors which will determine whether you make a profit or loss. Some traders have created software to paper trade. You hit the buttons like you are doing real trading but only virtual money is involved and no real cash is used. The system will record down the time, price
Using Currency Trading Charts To Forecast Price Movements
Currency trading charts and the various indicators that come with them are the tools used by nearly every trader in forex And it can be the skill with which you use these tools that can determine whether you ever get to be successful, so let’s have a quick survey of them . .Before we do, bear in mind that there are only three pieces of information you’re looking for from any indicator or chart You want to know whether the price is going to move more than a few points if so, whether it is likely to move upwards or downwards whether there is likely to be any volatility, or movement in the opposite direction, of more than a limited number of points before your target is reached . . .1 Bollinger Bands . .These are two lines drawn on the chart to show you the volatility of the market Very similar to support and resistance levels, they show you at a glance whether the price has strayed upwards or downwards too much, bearing in mind where it should be according to the normal rules of the marketplace So if the price has broken through one of the lines then it is a sign that it will shortly retrace back into the space between the two The lines themselves can and do move up and down roughly reflecting the actual price movements so this means the retracement may not always be by the same number of points as the original movement . .If the price has stayed between the two lines for a protracted period, then when it does eventually break through one of them it is often a sign of a strong movement in that direction, and so you can often make a successful trade based on that information . .2 Stochastics . .Stochastics uses the moving average principle to determine whether the market is overbought or oversold The theory is that if the moving average lines are above 70 the market is overbought (which means you should buy) and if they are under 30 the market is oversold (so you should sell, or go short) . .3 Parabolic Stop And Reversal (SAR) . .This is more of a long term indicator, and is designed to let you know when there is a reversal in trend It is displayed as a series of dots When the price breaks through this line then it is a sign of a definite movement in that direction that you can trade on . .4 Relative Strength Index (RSI) . .This is similar to Stochastics in that it can tell you if a market is overbought or oversold If you use the two indicators together, and they both agree at some point, then it’s a strong indication that the price will reverse The trouble is that it’s usually difficult to tell when exactly the reversal will take place, so if you trade on such information using a spread betting account then you should use a large stop loss if you can afford it . .5 Simple Moving Average (SMA) . .If, for example, you have a 50 period simple moving average setting then it shows you the average price over the previous 50 accounting periods So if it is an hourly chart, i e where each bar, or “candlestick” represents the price movement of one hour, then the SMA shows the average price of the last 50 hours . .You can tell at a glance from this whether the price has been rising or falling over that period This in turn shows you what the current “trend” is If you trade following the “trend”, as many successful traders do, then the SMA is your guide In fact the SMA is probably the only indicator, apart from the chart itself, that you really need It’s certainly the only one that many successful traders use . .It’s normal to use two SMAs, for example a 5 period and a 30 period, if you’re a short term trader, or a 25 period and a 150 period, if you’re a long term trader You then watch out for the shorter period SMA crossing over the longer period SMA, which is often a signal to go long or short, as the case may be The strongest signal is where the current price goes through both the SMAs at a steep angle .

How to Become a Professional Forex Trader and make money at the Same Time

How to Become a Professional Forex Trader and make money at the Same Time
If you want to learn how to trade the Foreign Exchange Markets (Forex or FX) has never been as easy as it is today with the spread of the internet. It is quit simple to learn Forex trading online with many fantastic free and commercially available recourses available which are growing each and every day. After becoming educated in the finer methods of trading, the next step is to start the experimentation processes and refine the techniques you have been taught in a customized approach with meets your individualized goals related to realizable profits. Most the people that ask me for advice think that is a long, tedious, expensive and complicated process to become a rich professional Forex trader. WRONG, WRONG, WRONG! Do I need to say it any more times? Do you know that if you played basketball in the NBA and made 50% of your shots you would be considered one of the greatest shooters of all time? When you are trading Forex you are guaranteed to make 50% of your shots, that’s right you will make winning trades 50% of the time even if you just flip a coin when attempting to decide which currency to pick. So how hard can it really be? Not to difficult is the answer! If it is so easy then why do so many novice traders never make it to the next level and become professional traders? This can be answered with one word, GREED. What they don’t understand is your not going to make a million dollars your first week of trading, but they are going to try anyway. The financial killer to most beginning FX traders is the MARGINS offered by the brokerage firms. If there were no margins one would simply need to make more money than the commissions charged by the brokerage firms to make money. After all, you are GUARANTEED to be correct 50% of the time when entering a trade. There are only two paths a currency can go, UP or DOWN. They can’t go any other ways, all though some of us in the profession for a long time sometimes think they do. So where do you learn about controlling your margins? I will first tell you where you don’t and that is the FOREX BROKERAGE FIRMS. Of course it is not in there interest to explain the financial snake pit you are about to enter. To learn Forex trading online and how to RULE margins and NOT let them RULE you then you are going to need to sign up for a commercial available course. If you knew nothing about the Forex markets at all, but you fully understood the concept of margins and how to make them work FOR you as opposed to AGAINST you then you would not be reading this article, but sipping frozen banana and rum drinks under an umbrella on a beach in Tahiti. Just sit back and think about for yourself a little bit, if you are guaranteed to make winning trades 50% of the time exactly how can you not make money at this?Learn how to make money online automatically and successfully by trading on forex

Daily AnalysisTuesday, 4 Aug 2009

- Greenback Touches 2009 Low vs. Currency Basket -
The Dollar fell to its lowest levels this year on Monday after the Institute for Supply Management's index on U.S. manufacturing improved more than expected in July. Along with some better earnings reports from foreign banks, the data supported equity markets and spelled trouble for the U.S. currency because investors no longer desire its safe-haven status.

Economic News
USD - Dollar Tumbles on Optimistic Manufacturing Data

The U.S. Dollar tumbled on Monday after the publication of far better than forecast ISM Manufacturing PMI from the U.S. economy. The reading rose to an 11 month high of 48.9, notably higher than the forecasted figure of 46.4. Construction data in the U.S. also showed some big improvements. This led to a drop in the demand of the USD, as risk appetite grew throughout the day. The greenback tumbled against virtually all of its major currency pairs, as traders feel that the recession is nearly over, and economic growth will soon return to the U.S. economy. As a result, the USD fell to its lowest level in 7 months.

The EUR/USD rose to as high as 1.4444, before closing at 1.4421. This was the USD's weakest rate against the European currency since the middle of December last year. The Dollar fell by about 250 pips vs. the British Pound to 1.6980. This was the Dollar's lowest level vs. the GBP since about the middle of October last year. One of the only currencies that the Dollar gained ground against yesterday was the Yen. The USD/JPY cross increased by about 70 pips to the 95.43 level, as demand for higher yielding assets increased throughout much of Monday's trading.

Looking ahead to today, forex traders can expect much of the same volatility in the market. The Dollar is set to move a lot against its major pairs, such as the GBP, EUR, JPY, and CAD. This is likely to occur, as investors continue to trade on much of yesterday's data. Additionally, the U.S. market is set to be the main market mover again with the with the release of Personal Spending and Personal Income data at 12:30 GMT, and the publication of U.S. Pending Home Sales at 14:00 GMT. In order to take advantage of the very volatile forex market, it's advisable that you open your USD positions now.
EUR - EUR Soars to 7 Month High versus the USD

The European currency soared to a 7 month high versus the USD yesterday, as optimistic global manufacturing data from the Euro-Zone, U.S., Britain and China led to a decline in demand for the safe-haven USD. In addition, the British Pound jumped against the Dollar, as the British economy showed really clear signs that it may rise out of recession by the end of the 3rd quarter. This was following the publication of very positive British manufacturing data, and the much better than expected pre-tax profits of HSBC and Barclays Bank.

The GBP/USD pair rose by over 250 pips in Monday's trading to the 1.6980 level. This may also have been helped as the USD may have come under increasing pressure from the rise in Oil and other commodity prices. The EUR/USD cross climbed by 190 pips to 1.4421, the highest level since December 2008, just weeks after the collapse of Lehman Brothers. Both the EUR and GBP rose against a string of other currencies, such as the JPY, as demand for higher yielding assets rose, along with risk appetite, as yesterday's trading dragged on.

Tuesday's trading is set for another action packed day. The 2 most important releases from Britain will be the Construction PMI at 08:30 GMT and Nationwide Consumer Confidence figures at 23:01 GMT. From the Euro-Zone, we can expect the PPI figures at 09:00 GMT. These releases are expected to help drive market volatility for the EUR and GBP throughout the trading day. Furthermore, it is advisable to follow economic events coming out of other leading economies, such as the U.S. as they are likely to also impact these 2 currencies.
JPY - JPY Falls against All the Major Currencies

The Japanese Yen fell against all of its major currency pairs yesterday, following the release of optimistic manufacturing data from the world's leading economies. This helped push-down demand for lower yielding assets such as the JPY and USD, and push-up demand for high yielding assets such as the GBP and EUR. Also, as the day dragged on, so did risk appetite. This led to the sell-off of the JPY and the buy-up of foreign assets. Analysts said this is trend is likely to continue as the global economy continues to recover.

The JPY fell by 70 pips against the USD to the 95.43 mark. The Japanese currency plummeted to 137.38 from 138.84 on Monday vs. the EUR. Against the British Pound, the Yen dropped nearly 360 pips to the 161.91 level. As a whole, the Yen it still a strong currency. However, if economies such as the U.S., China and Britain start showing growth in the coming months, then we may see the JPY lose lot of the strength that it gained since the start of the current economic crisis.

OIL - Crude Oil Climbs to Over $72 a Barrel

The price of Crude Oil climbed to over $72 a barrel yesterday, before closing at around $71.25. Monday's trading saw Oil at the highest level since July 1st. Yesterday's bullish behavior in Crude can is largely owed to the optimistic manufacturing data that was published by the leading economies, led by the U.S., Britain and China. This is important, as the U.S. and China are 2 of the biggest consumers of Oil, which also played into higher Crude prices yesterday.

The high expectations surrounding the improved global economic sentiment, increased risk appetite, which also led to a fall in demand of the USD. In turn, this helped push-up the price of Crude Oil. The price of Crude was unable to hold above the $72 mark due to a lack of demand. However, if the global economy continues to recover, and positive economic results continue to be published, we may see stronger Oil prices for the foreseeable future.
Technical News
EUR/USD

The pair has been showing a strong and consistent uptrend since the beginning of this week, and the momentum appears that it will continue uninterrupted. The small local correction is slowly losing its energy, and the daily chart is showing that the renewal of the bullish trend is quite imminent. Buying on lows might be a good strategy today.
GBP/USD

On a daily chart the pair is showing consistent bullish momentum for a while now and today is no difference. Although the signal is not strong the pair might have a local target at 1.6990, which might make it feasible for forex traders to go long with tight stops.
USD/JPY

Since the last bearish move, the pair has been consolidating around the 95.10 level for quite a while now. The hourlies provide bearish signals, suggesting that the restoration of the bearish momentum is due. Going short appears to be preferable today.
USD/CHF

The bullish move the pair is going through appears to have diminishing momentum, and lacks the ability to make a significant breach above the 1.0660 level. The hourly studies show mixed signals, and the daily chart's Stochastic Slow is indicating a mild bearish direction. Waiting for a clearer signal on that pair appears to be a good decision today.
The Wild Card
AUD/USD

On the daily chart the moderate bullish price movement continues within the upwards channel which still has yet to be breached. The 4-hour chart is also joining that notion with the Slow Stochastic pointing to the continuation of upwards momentum. Next testing point should be around 0.8510 Forex traders have a good opportunity to enter what appears to be the beginning of a steady rising trend.

04‏/08‏/2009

How to decide on which currency pair to trade: EUR/USD or GBP/USD

Which is more important? Trend direction or Support/Resistance?

Oil rises above $71 from the $62 area just days ago!

How much influence does a government really have over its currency?

Forex Trading is a Fantastic Way to Earn an Income From Your Computer

Using Currency Trading Charts To Forecast Price Movements

Currency Trading: Finding Your Niche

Using Currency Trading Charts To Forecast Price Movements

Forex Trading Tips

How to succeed as a newbie FOREX investor.

A Forex Review Of Forex Megadroid Is Forex Megadroid A Huge Money Maker Or A Scam

How to Become a Professional Forex Trader and make money at the Same Time

Daily AnalysisTuesday, 4 Aug 2009

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