Month: October 2009

By Zachary Storella, CountingPips.com

Today I am excited to bring you a new forex interview with Dave Lemont, the CEO of Currensee.com, a social network for forex traders. Currensee has some really unique characteristics for forex traders, you can build a trading team of friends based on trading styles, currency pairs, etc. and within that team, see the other traders open positions and statistics and talk about positions. I have been lucky enough to be a member of Currensee for a little while now and as of October 20th the platform has opened up to the public in beta mode.

Hi Dave, Thanks for participating in this interview with me. For those out there who have not heard of Currensee, could you give us a little summary of what Currensee is?

Currensee is the first Forex social trading network where traders from around the world collab orate on real trades and strategies in real time. Just the way the TripAdvisor has brought trust and transparency to the travel market, Currensee brings the same trust and transparency to currency trading by sharing real-time trade data on the trades its members are making with the entire network. This is just one of the things that sets it apart from the scores of Forex forums where traders can make unsubstantiated claims about their strategies and trading successes.

Who is the perfect candidate to join Currensee?

Currensee is all about active Forex traders – we welcome both experienced and novice traders. For experienced traders we offer the opportunity to connect with other link-minded traders and share trades, as well as measure your performance. For novice traders we offer the chance to connect with the best in the trade so you can learn real time and be assured that all connections and transactions are authenticated. We offer tools to both experienced and novice traders to help them make their trading decisions faster – like our Econoday calendar, our research dashboard and our Social Indicator widget, the first real-time social sentiment indicator that shows a a real-time long and short position summary of all the traders in the Currensee community

What do you think the biggest benefit will be to those who join Currensee?

Currensee provides the transparency and authenticity that is hard to find in much of the Forex market. Traders can see the real trades, strategies and performance, of other like-minded traders that are their friends from around the world, and they can gain new insights into the market and their trading practices through collaboration and trading together

Talking about the unique feature of seeing other traders’ open positions that are on your Trading Friends team, has there been any apprehension on the part of some traders or on the part of some brokers about sharing this information? Why do you feel it’s important for this information to be shared?

Forex trading is plagued by scammers who thrive off the anonymity of the Internet and the fact that they don’t have to back up the claims they make about their trading prowess. On Currensee’s social trading network, traders put their money where their mouth is. In order to join, members create a Currensee account that connects directly to their brokerage account. Currensee creates a secure connection to the broker, so that trades are recorded as they happen and are shared with the entire Currensee network. We know there are traders who are hesitant to join our platform and link their account to us – we know why they are cautious and we know it will take time to educate that market that we indeed are here to change it for the better – to bring a level of authenticity and transparency that will eventually reduce the scamming and unethical practices still rampant in our business. Currensee is regulated by the NFA and has very strict privacy and security policies

One of the most interesting features of Currensee I find is the social indicator where each currency pair is shown and how many traders are long and short and at what average price. This has to be one of the only places to see this kind of information, have you found that traders are using this information in their trading decisions?

Market Watch, our first-if-its-kind Social Indicator widget, provides traders real-time visibility into the amount of volume long or short on each currency pair along with detailed information about the average entry prices and real-time graphical feedback regarding which side of the trade is winning or losing at that moment for the entire network. These new real-time social insights create exciting new ways to analyze the market and we are seeing more and more traders using this insight – it is one of the most popular and interesting data points that we post about on our Twitter and Facebook account – because of its popularity, we have pulled some of that data on our home page too – we show the number of total trades made by our traders, currently almost 200,000, as well as if the community is long or short on the most commonly traded pairs. Many of our community members are telling us that they have incorporated the social indicators into their daily trading decision making.

On a personal note, reading your bio on Currensee, you have an extensive business background and now you have been participating in some Forex trading as I have seen on Currensee. What has it been like for you to get in there and start Forex trading and is there anything in your business background that you feel has helped you in your trading?

I have gained quite a bit of respect for great Currensee traders. It takes quite bit of work and time to be successful. One of the most important lessons I have learned in business is patience and discipline when waiting for new business strategies to develop. Good Forex traders, I have learned, must exercise extreme discipline on sticking to their strategies to manage their positions and money effectively. We are trying to provide many tools for the trader on the Currensee platform to help traders understand how they are doing relative to their strategies.

Going forward, what can we look forward to from Currensee? Will we get to see more features like the social indicator mentioned previously? That would be great.

We are all about real-time, authenticated data – about helping to facilitate collaboration based on transparency and authenticity. You can expect us to continue to innovate in that direction and offer our traders increasing more sophisticated tools to help them analyze and inform their trading strategies and performance.

Once again, I’d like to thank you for taking the time to participate in the interview, is there anything I missed that you’d like people to know about Currensee?

I want to end on a positive note and ask traders who have not yet experienced our platform to join us and help us impact change in our industry for the better – we are just starting out, but we know we are onto something. We know we have the chance to make Forex fun and reputable – but we can’t do it alone. It is all about trading together, which in fact is our company motto.

Thanks Dave for participating in this forex interview. To find out more about or join this new network, you can visit Currensee.com.

By Adam Hewison – The markets I am referring to are the gold market and euro markets. Readers of this blog will know from our previous videos and examples that we are big fans of Fibonacci retracement lines.

In this super short video (1:49), I will show you the lines we are talking about for the above two markets. I think you’ll find it very illuminating as this example is so fresh. You will also find it very empowering.

Watch the New Fibonacci Video Free here…

As always our videos are free to watch and there is no need to register.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

By Fast Brokers – The EUR/USD is under some selling pressure today after yesterday’s rally fueled by U.S. Prelim GDP data failed to overcome 10/27 highs, let alone our 1st tier downtrend line.  Additionally, yesterday’s buy-side volume came in well below Tuesday’s pop in sell-side activity.  As a result, a negative investor sentiment remains in regards to the performance of riskier investment vehicles.  The AUD/USD, Cable, and gold are also heading south while the USD/JPY trades higher, indicating a broad-based preference for the Dollar.  Although yesterday’s better than expected U.S. Prelim GDP data fueled a risk rally, the bulls were unable to gather enough momentum to overcome topside technical barriers across markets.

Altogether, the last two weeks of econ data has come in negatively mixed, overshadowing the flashes of recovery we’ve seen from Q3 earnings and encouraging EU PMI data.  The EU reported German Retail Sales today, which printed 12 basis points lower than analyst expectations.  Hence, yesterday’s drop in the German Unemployment Change didn’t translate into higher rates of consumption.  Furthermore, U.S. Personal Spending printed a basis point beneath expectations along with declining prices.  Investors should also keep in mind that yesterday’s Unemployment Claims number came in 8k higher than anticipated, yet was overlooked due to the optimism surrounding the GDP data.  In other words, indicators highlighting future economic performance in Western economies are implying a sluggish Q4.  As a result, the fundamental tools aren’t in place for investors to have enough confidence to lock the EUR/USD back into its uptrend just yet.

Technically speaking, this week’s sharp movement below the psychological 1.50 level is a discouraging sign for bulls.  However, there remain several uptrend lines we can form, meaning the EUR/USD has a few technical cushions to rely upon before investors can safely cry bear.  The EUR/USD has four uptrend lines to fall back on along with the psychological 1.45 level should the currency pair take a turn for the worst.  Our 2nd tier uptrend line seems to be a key technical since it runs through October lows and likely represents the support separating the EUR/USD from a retracement towards 1.45.  As for the topside, the EUR/USD now has multiple uptrend lines bearing down on price and the psychological 1.50 level becomes a technical barrier once again.  Overall, although the uptrend remains intact, investors should tread carefully since U.S. equities are facing headwinds.

Present Price: 1.4761

Resistances: 1.4783, 1.4819, 1.4844, 1.4863, 1.4890, 1.4925

Supports: 1.4727, 1.4700, 1.4671, 1.4638, 1.4608, 1.4578

Psychological: 1.50, 1.45

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – A selloff is taking place in the riskier FX pairs and the USD/JPY is following suit, telling us investors prefer the Yen over the Dollar as a safe haven right now.  Today’s strength in the Yen also stems from the BoJ’s decision to end a couple of its bond purchasing programs in an effort to tighten liquidity.  Today’s monetary policy falls in line with the BoJ’s more conservative stance since the DPJ took office.  Furthermore, the BoJ was likely encouraged by the USD/JPY’s recent solid performance above its important 90 threshold.  However, today’s larger than expected decline in both the Tokyo Core CPI and Household Spending tell us the BoJ can’t be too conservative with its monetary policy since deflationary pressures are still bearing down on consumer prices.  Additionally, even though this week’s Industrial Production number printed better than analyst expectations, the 1.4% rate of growth is unsubstantial compared to the huge declines we witnessed during late 2008/early 2009.  Hence, Japan’s economy still faces a long path to recovery.

Meanwhile, investors should keep an eye on the S&P futures and monitor their ability to sustain yesterday’s rally.  The USD/JPY has been behaving in a more consistent, positive correlation with U.S. equities, although it’s uncertain how long this will last.  Therefore, investors can also compare the USD/JPY to the S&P’s stronger correlations, including the EUR/USD, AUD/USD, and gold.  Japanese markets will be closed on Monday for a banking holiday, meaning the Asia session trading could be light.  Techncially speaking, the USD/JPY’s inability to test 10/26 highs yesterday was a bit discouraging as far as a near-term uptrend is concerned.  However, the currency pair does have a couple more uptrend lines to fall back on along with 10/20 lows and the psychological 90 level.  As for the topside, our 2nd and 3rd tier downtrend lines bear overhead along with 10/26 and 9/21 highs.

Present Price: 90.86

Resistances: 91.22, 91.32, 91.44, 91.61, 91.78

Supports:  90.83, 90.68, 90.49, 90.34, 90.21

Psychological: 90

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

In line with growing market demand, we at ForexYard offer Gold spot trading to our clients, through the ForexYard Standard Trading Platform.

How does it work?

Two words: simply and easily. Spot gold trades are executed in much the same way as foreign currency pairs are traded over the ForexYard Trading Platform, with transactions being made against the US Dollar, and as with currencies, we offer our clients highly competitive spreads and margins.

Due to the nature of trading such financial instruments, you will notice a number of small differences such as market hours, denomination, and minimum contract sizes: prices quoted are per troy ounce.

Gold (Au) has a fixed spread of $1.00; a margin requirement of $1,000 per 100 ounces; a required margin of 2.5%; a minimum contract size of 100 ounces; and leverage of 1:40, instead of the 1:200 leverage found on currencies.

What does this mean? It means that when you open your Standard Account, you can choose to trade Gold, and it will only charge you $1,000 of usable margin to open a position of 100 ounces, which is the minimum tradable lot size, and the spread charged is only 100 pips, which is a highly competitive figure for Gold trading.

In addition, traders should note that margin requirements may change without notice due to market and/or price changes within the individual instrument. Traders should also note that leverage and margin are approximations and not exact figures, as margin requirements are standardized. This means that from transaction to transaction, margin requirements will not change while leverage/margin may become more or less favorable.

Still, trading Gold does not require any additional software download, as it is available on the ForexYard Trading Platform; however, due to the minimum lot sizes involved, you must hold a Standard Account to be able to trade this commodity.

If you have any further questions please do not hesitate to contact our dealing desk, which is available 24 hours during market trading days.

By Fast Brokers – The Cable’s rally in reaction to yesterday’s positive U.S. Prelim GDP has hit a wall at our 2nd tier downtrend line.  As with the EUR/USD, the GBP/USD failed to receive any abnormal topside volume yesterday, indicating bulls weren’t fully behind the risk rally.  The lack of topside conviction likely stems from the disappointing U.S. Unemployment Claims number which was overshadowed by optimism surrounding GDP data.  Furthermore, Britain released an HPI number today which printed three basis points below expectations and five lower than its previous release.  The impressive recovery in Britain’s housing market has been at the heart of the nation’s broader economic stability.  Therefore, any week housing data carries a little extra weight in Britain.  Regardless, the Pound continues to enjoy its relative strength, as exhibited by the large pullback in the EUR/GBP.  Despite today’s HPI number and last Friday’s disappointing GDP data, Britain’s forward looking econ data has been printing positive.  Therefore, Sterling investors are taking a wait and see approach to analyze not only what Britain’s Q4 performance looks like, but also how the BoE stands in regards to upcoming monetary policy.

Speaking of British econ data, Britain’s news wire will heat up next week beginning with more HPI data on Monday along with Manufacturing PMI.  However, investors will likely be more focused on Wednesday’s Services PMI data.  Since services comprise nearly 70% of Britain’s GDP, investors will be looking to see if the previous Services PMI release was a sign of more positive things to come.  The U.S. will be releasing some Manufacturing PMI data of its own on Monday to go along with Pending Home Sales.  Therefore, it looks like we’ll have an active kickoff next week.

Technically speaking, the Cable’s inability to test 10/23 highs has dragged the currency pair into a wedge pattern.  Fortunately for bulls, the Cable is finding some strength above 1.65, meaning the psychological level could work in the GBP/USD’s favor.  Furthermore, the Cable as multiple uptrend lines to rely upon.  On the other hand, there’s still a medium-term downtrend at work, meaning the Cable has its work cut out for it to the topside.

Present Price: 1.6507

Resistances: 1.6562, 1.6585, 1.6605, 1.6635, 1.6676, 1.6704

Supports: 1.6506, 1.6468, 1.6431, 1.6397, 1.6356, 1.6326

Psychological: 1.65, 1.60

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – Gold had a nice little pop yesterday as investors exited the Dollar in reaction to stronger than expected U.S. Prelim GDP data.  However, as with the EUR/USD and GBP/USD, gold’s positive momentum fell short of important topside technical barriers, mostly notably $1050/oz and our 3rd tier uptrend line.  Investors are now exiting their risk trades today as optimism wanes in the face of negatively mixed data.  The S&P futures are also trading off by over -1% and crude over -2%.  Gold is following its positive correlations to a tee today and is heading back below our 2nd tier uptrend line.  Hence, markets are showing us that investor uncertainty is outweighing optimism.  The positive Q3 earnings season has been priced in, and investors are now looking towards Q4 fundamental economic performance.

Despite today’s pullback in gold, the precious metal still has our 1st tier uptrend line to fall back on along with 10/27 and 10/28 lows.  As for the topside, gold is facing a newly formed downtrend line along with its psychological $1050/oz level and 10/26 highs.  Meanwhile, investors should monitor the EUR/USD’s ability to hold above its technical cushions along with the S&P’s battle at 1050.  A large technical setback in either could drag gold lower due to their positive correlations.

Present Price: $1039.60/oz

Resistances: $1043.60/oz, $1046.91/oz, $1049.98/oz, $1053.76/oz, $1058.26/oz

Supports: $1036.03/oz, $1032.01/oz, $1029.41/oz, $1024.44/oz, $1018.53/oz

Psychological: $1050/oz, $1000/oz.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Adam Hewison – The five ETFs that we are referring to are going to play a major role in the future and you need to know about them today.

In this short video I show you the overriding trend and potential for each of these markets in the future.

As always our videos are free to watch and there is no need for registration.

Watch the New ETF Video Now…

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Whichever model of the Blackberry you own, you’ll already know about all the fantastic features packed into its modern ergonomic design. The large screen and great quality camera, together with constant connectivity means you’ll never want to put it down! And now there’s another reason to keep your Blackberry close at hand:

FOREXYARD now offers a Mobile Trading Platform for the Blackberry. Wherever you are, you need never miss an opportunity to invest again! Blackberry Forex Trading is available now through FOREXYARD. All the FOREXYARD currencies and commodities are fully tradable 24 hours a day via your Blackberry.

The FOREXYARD Trading Application is a Java-based platform which provides a dependable alternative to traders on the move. Functions you will receive when you begin Blackberry Forex Trading include:

• Viewing live dealing rates
• Viewing open positions
• Placing orders
• Modifying orders
• Removing orders
• Setting Stops and Limits

Mobile Trading is the latest advancement in the World of Forex. Use your Blackberry to maximize your trading opportunities now!

If you already trade with FOREXYARD, login to your Demo, SuperMini, or Standard Account here to download the software and begin mobile trading today!

For most traders, getting into the market is a process that requires seeing an opportunity to enter, or reading about breaking news and jumping on it. This requires opening a position at that time and being physically in front of their computer or on their mobile. What if there was a way to get into the market when you’re away from your trading station?

What if your technical analysis shows the EUR/USD will fall once the pair reaches a specific price level? The ForexYard trading platform has the tools to get you into the market; however, many traders are reluctant to use these options at their disposal.

By using the tools below, a trader can enter the market when a certain price is reached without having to be at their computer to do so.

An Entry Limit Order is used when a trader would like to enter the market at a price below the current market price for a Buy, or above the market price for a Sell order.

In other words, an Entry Limit Order is used when a trader believes the price will reverse its direction once a certain price level is reached.

For example, if a trader believes the EUR/USD is overvalued at the price of 1.5000, and the current market price is 1.4950, he can place an Entry Limit Sell order. When the price hits the 1.5000 mark, his order will be executed.

An Entry Stop Order is used when a trader would like to enter the market at a price above the current market price for a Buy or below the current market price for a Sell.

In other words, an Entry Stop Order is used when a trader believes the price will continue moving in the same direction once a specific price is reached.

For example, if the price of gold is trading at $975 and a trader believes that if gold crosses the psychological price level of $1000, the price will continue to rise. The trade to make is an Entry Stop Buy at, or slightly above $1000.

These tools can be used for a number of reasons; whether you’re away from your trading station because you’re at work, or sleeping, you can always open a position. If through your technical analysis, you believe a currency pair is going to break out when it arrives at a specific price, place an entry order to get into the market!