Month: January 2010

Source: ForexYard

Crude Oil fell for a second straight session Thursday and ended 2% lower, to trade near $76 a barrel despite a drop in U.S. crude supplies as concerns over Chinese growth dampened appetite for riskier currencies and commodities.

Economic News

USD – USD Declines over Proposed Bank Regulations

The Dollar dropped sharply against the Yen Thursday as concerns intensified regarding the state of the global economic recovery with concerns of a possible slowing of Chinese growth as well as continued unease over Greek sovereign debt. The Dollar was also hit over proposed U.S. banking regulations by President Obama. The Dollar Index was at 78.395 from 78.369. It earlier hit 78.814, its highest level since Sept. 2.

The Dollar rose to its highest level against the EUR since July during Thursday’s early trading; however, the greenback retreated from its high to currently trade at a similar level to Wednesday after the announcement of the bank regulations proposed by the Obama administration. The bank regulation plan would force institutions to choose between commercial banking and proprietary trading for their own profit, while seeking to limit the size of mega banks. The Dow Jones Industrial Average sank after the release of the proposed regulation, losing more than 2% by late afternoon, further sapping risk appetite from the markets.

With no news releases today from the U.S, the Dollar movements will likely be determined by releases from Europe as well as movements in the equity markets.

EUR – EUR Falls over Continued Concerns of Greek Financial Crisis

The EUR fell for a sixth day versus the greenback, hitting a low of to $1.4029, its lowest level since July 30 as a slew of negative news came out of the Euro-Zone throughout the day and continued concerns over Greek sovereign debt. Despite the EUR afternoon rebound against the dollar, it remained sharply lower against the yen, losing more than 1%. The EUR is currently at $1.4129 from $1.4097 late Thursday in New York. The EUR was at Y127.27 from Y128.69. The U.K. Pound is currently at $1.6212 from $1.6195 yesterday.

Growth sensitive currencies like the EUR were under pressure today amid concerns Greece will fail to contain its budget deficit and the possibility of sagging Chinese growth. The continued Greek budget crisis seems to have a continued negative affect on the common currency.

While a slow news day is expected today, the release of the Industrial New Orders at 10:00 GMT might provide some support for the EUR with a better than expected result. Also the release of the British Retail Sales at 9:30 GMT should provide volatility to the Pound.

JPY – Yen Gains Broadly on Risk Aversion

The Yen rose to a 9 month high versus the EUR as President Obama’s proposal to restrict risk trading at financial institutions discouraged demand for higher yielding assets. The Japanese currency was set for a second straight weekly gain versus the EUR and advance to a 3 week high against the Dollar on declines in global equities and concerns over Chinese growth.

The Yen advanced to 126.89 per EUR from 127.37 in New York yesterday. The Japanese currency reached 126.56, the strongest level since April 28. It gained to 89.93 per dollar from 90.43 yesterday after reaching 89.87, the highest level since Dec. 18.

OIL – Crude Prices down over 2%

Crude Oil for March delivery finished down $1.66, or 2.1%, at $76.08 a barrel on the New York Mercantile Exchange Thursday. Currently Oil is trading at $75.84 a barrel.

Oil prices declined despite a reported drop in crude oil inventories of 500K barrels last week, as refiners reduced imports. The small drop was not enough to push Oil prices up as supplies remain high with refineries reducing their operating rate as U.S. Oil demand is showing little signs of a recovery. A recovery in Oil demand from the world’s biggest consumer of crude is seen as essential, however, despite several months of encouraging economic data, U.S. demand remains weak.

Pressure on Oil intensified following a broad sell off in U.S. stocks following the announcement of President Obama’s proposed banking reforms and renewed concerns about China’s tightening of monetary policy.

Technical News

EUR/USD

The 4-hour chart shows us the pair has been unable to break the 20-day moving average on its Bollinger Bands since the previous week. This indicates a strong bearish trend is occurring. Traders who want to trade with the trend may find a good entry point when the price reaches middle line and enter into the market short.

GBP/USD

The daily chart displays the potential for further downward movement. Yesterday’s close below the 10-day moving average indicates one reason to sell the pair. The MACD histogram is also trending down, indicating future price declines. The MACD lines are also in the process of forming a potential bearish cross which could indicate another price move lower. Traders may want go short on this pair today.

USD/JPY

The long term bearish trend of this pair remains in full stride. The weekly chart shows the pair has crossed the middle line on its Bollinger Bands. This indicates the potential for the pair to fall to its lower limit of the Bollinger Bands. Traders may see an opportunity to go short with a limit order set at the level of 87.20.

USD/CHF

The daily chart shows a bearish cross has formed on the pair’s Slow Stochastic Oscillator, indicating the potential for a downward price movement. The chart’s 7-day Relative Strength indicator also shows a double top formation may be occurring in the oversold region. This may indicate a potential drop in the price. Traders may want to wait for a break of the middle trough and then open a market entry sell position.

The Wild Card

Oil

Oil prices are once again dropping, and are currently being traded around $76.10 per barrel. However, the daily chart’s RSI is floating in an oversold territory suggesting that a recent downwards trend is loosing steam and a bullish correction is impending. This might be a good opportunity for forex traders to enter the trend at a very early stage.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Spot crude oil prices were trending higher during the morning hours of the European trading session today. That was despite poor data from the Department of Energy. Driving the prices higher today so far was a weaker dollar.

Spot crude oil is up $0.30, trading near the $76.12 price level after opening the day at $75.82, a monthly low for the commodity. The EUR/USD has climbed higher today as well, trading up at 1.4144 from an opening day price of 1.4122. Typically spot crude oil prices rise with a falling dollar

Yesterday’s data release by the U.S. Department of Energy showed refinery output plummeted to a historic low. The reduced crude oil output produced by refineries is a response to low demand on the part of consumers. It is expected that crude oil demand will not recover in the next few weeks, which may lead to further price declines in the price of spot crude oil.

While demand is seen as weakening, an appreciating dollar has also been a drag on spot crude oil prices as well. From January 11th, spot crude oil prices have fallen 8.7% while the EUR/USD is down 2.4%. The trend of falling crude prices with a rising dollar retains a relatively strong negative correlation. Traders should always be following the dollar when trading spot crude oil.

By David Adams – You have a responsibility to be prepared mentally each day you choose to day trade. Many traders shun the emotional realities of trading, and this aspect of trading is among the most important. Recent findings in scientific studies reveal, unequivocally, that a traders emotional state during a trading session may be the single most important factor in determining whether a trader has a successful day or loses money.

In my experience the best way to quiet a group of chatting traders is to ask them about their emotional preparation to trading. For a variety of reasons, traders are reluctant to discuss how they feel, at the emotional level, during their trading. Whether the root cause of the this phenomena is vanity, inability or reluctance to share emotional tendencies, or a societal norm for traders to be mentally “tough” is unclear. What is clear, however, is the incontrovertible evidence that states that your mental and emotional state has a profound effect on your ability to trade.

In a past article I discussed outside factors like television, radio, and music that effect our emotional state, and in this article I will discuss internal emotional considerations each trader must conquer. There is a feeling that some traders are gifted, that they are natural born traders. It is my opinion that some traders have an emotional profile that makes them successful, as oppose to a technical style. As a chaos theory trader, I am convinced the market is, at the macro level, random and difficult to predict. At the micro level, certain patterns occur over and over. That being said, most of the successful trading systems share some common characteristics and very little has occurred in the past ten years that we could consider revolutionary breakthroughs in trading technique. To be sure, no trading style has in any way pulled ahead of the pack of mainstream traders. Sure, we have new styles of trading, but the ultimate judge of trading successfully is profits and losses, and the new styles have done anything but disproved the long standing tenets of trading with their profits and losses.

So what kind of emotional situations hinder a trader?

Emotional attachments to a trading position are among the toughest to recognize and rectify. For a variety of reasons, traders invest their emotions into a particular trade in the belief they are right, despite overwhelming evidence to the contrary. For example, a trader may decide the market is going to go in a certain direction for a certain period of time and positions his trade to capitalize on this perceived winning trade. Before long, the market begins to move counter to the trader’s theory, but the emotionally invested trader does not take corrective action because he is convinced he is right. Despite his indicators telling him he wrong, despite the market price action that is telling him he is wrong, the trader has invested himself so deeply in his conviction he is right he rides a trade straight into his stops. (if he has stops) When I think I know what the market is going to do, especially if it is contrary to what my chart is telling me, I know it is time to stop for the day.

What causes this phenomena?

The need to be right, basically. The literature on this topic suggests there are more than one factor that contributes to emotional attachment to a given trade. Losing trades are a part of day trading, and how you handle a trade at the emotional level will determine whether or not you can trade successfully. You are not going to always be right, and an individuals ability to accept that he/she was wrong and move on to a new trade is essential. It sounds very easy, but it’s not. Many traders are unable to adjust if they are in a losing trade, it unnerves and rattles them. I have watched many traders battle this problem and most are unable to conquer emotional investment in a trading position. For some, their need to be right simply overwhelms the intellect they possess. While emotional investment in trading positions is not necessarily the end of a traders career, it takes a considerable amount of work to overcome.

Another serious emotional issue with traders is overconfidence, especially on a day with many winning trades. This is a tough issue to deal with. As you make good trades throughout the day, you become convinced that any trade you make will be a winner. It’s a great way to give back all you have earned, which is not uncommon. This usually occurs on a trending day when nearly all your trades will be profitable if you stay in the trend. Of course, the next day may well be a trend in the opposite direction, or a consolidating market, and your overconfidence becomes a distinct liability. You must be nimble in your trading, and not lock in on ideas to the point where you are not able to properly focus on the market. Overconfidence is terminal to a trading account. You must stay a student of the markets, not the master. There are few masters of the market, just observant and nimble traders.

In summary, we have looked at the effects emotions have upon trading futures. Many traders tend to become emotionally involved in the positions fail to adjust to the trading situation. They have an intense need to be right. Other traders become confident, which is a great attribute to have if you are in a sporting contest with another opponent. On the other hand, the market is inanimate and overconfidence is poorly deployed in the trading environment. Your ability to recognize the emotional demands of trading will, more or less, be a major contributor to your success.

About the Author

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By CountingPips.com

U.S. economic news releases out of the U.S. today showed that the U.S. Leading Indicators Index published by the Conference Board today increased for the ninth straight month in December. The Leading Indicator Index, which measures future economic activity, rose by 1.1 percent in December following a revised increase of 1.0 percent in November and a 0.3 percent gain in October. December’s advance surpassed the market forecasts which were predicting a gain of 0.7 percent for the month.

The coincident index, which is viewed as a measure of the current economic activity, increased by 0.1 percent in December while the lagging index edged down by 0.2 percent after declining by 0.5 percent in November.

An economist at the Conference Board, Ken Goldstein commented on the report saying, “The indicators point to an economy in early recovery. The coincident economic index shows slow expansion of economic activity through December. The leading economic index suggests that the pace of improvement could pick up this spring.”

Philly Fed Business Survey falls but still positive

The Philadelphia Manufacturing Business Index released today by the Philadelphia Federal Reserve Bank showed that its survey decreased in January but has stayed in positive territory for the fifth straight month. The Philly general business diffusion index decreased to 15.2 in January after December’s revised score of 22.5. A positive score is consider growth in that business sector while a negative score is considered a contraction. Continuing to show positive levels this month in the business survey were the indexes for general activity, new orders, shipments and number of employees.

Jobless Claims rise

A release by the U.S. Labor Department showed that weekly U.S. jobless claims increased in the week that ended on January 16th. New jobless claims grew to a total of 482,000 unemployed workers, an increase over the prior week by 36,000 workers. A 4-week moving average of unemployed workers rose by 7,000 workers from the prior week to a total of 448,250.

Meanwhile, workers seeking continuing claims for unemployment benefits for the week ending January 9th decreased by 18,000 workers to a total of 4,599,000 unemployed workers. A four week moving average of continuing claims declined by 109,750 to 4,750,500.

US Dollar mixed as Stock Markets fall

The U.S. Dollar has been mixed in the forex markets today following two days of strong gains while the U.S. stock markets have had their largest declining day of the new year. The dollar has advanced versus the British pound, Australian dollar, New Zealand dollar and the Canadian dollar while declining against the Japanese yen and the Swiss franc in forex trading as of 1:44 pm EST in the afternoon of the US trading session. The euro, which has been fallen substantially versus the dollar the past two days, is trading virtually unchanged against the American currency around the 1.4115 exchange rate.

The U.S. stock markets, meanwhile, are having a brutal session today with the Dow falling around 200 points, the Nasdaq decreasing by over 20 points while the S&P 500 is declining by roughly 17 points.  Oil has traded lower to $76.61 while gold has fallen by $14.20 to trading around the $1,089.80 per ounce level.

Compensates top Forex traders for superior trading performance

Boston, MA – January 20, 2009 – Today, Currensee (www.currensee.com), the first Forex trading social network that connects traders from around the world based on real-time trades, announced an open call for successful Forex traders to become Currensee Trade Leaders. As Currensee Trade Leaders, experienced Forex traders can attract and acquire trade “followers” from the fast growing Currensee trader network and be compensated for trading without the tedious effort of recruiting customers, managing money and reporting results.

“The call for Trade Leaders is being met with overwhelming excitement by top Forex traders from around the world,” said Dave Lemont, CEO of Currensee. “Whether they are successful retail traders who have been doing this for a few years or professional traders who are managing money, traders want to be able to spend more time doing what they do best, and that’s trading. The Trade Leader program is a great fit for traders who are confident in their success, open to the transparency of real trade performance and looking for a way to be compensated for trading successfully without all of the administration and effort. It’s a win for the Trade Leader and a win for our Forex trading social network.”

Currensee is in the selection process for Trade Leaders and invites successful Forex traders to join the program at www.currensee.com/tradeleaders. Trade Leaders are currently being reviewed against selection criteria and must establish a track record on Currensee based on real performance, which provides full transparency. Trade Leaders have the opportunity to realize a new revenue stream and will be compensated based on the success of their trading.

“I am excited about the opportunity to be a Trade Leader on Currensee,” said Alex Kazmarck, Currency Strategist at SpotEuro. “I have been trading for years and am always looking for new business opportunities that let me do what I love and help others. Currensee gives me the chance to focus on my trading and generate income based on successful trades, while helping Forex traders at the same time. The best part is they handle all the administration and headaches. Any great Forex trader should want to participate.”

About Currensee:

Currensee brings trust and transparency to retail Forex trading.  The Currensee social trading network connects retail Forex traders from around the world, so they can share and collaborate on actual trading information in real-time.  The unique Currensee social indicators aggregate the wisdom of the network and provide a new approach to Forex market analysis and trade decision-making.  Currensee supports over 100 Forex brokers and education partners and is a member of the National Futures Association. Currensee is funded by North Bridge Venture Partners and the company is headquartered in Boston, Massachusetts. For more information, visit us at www.currensee.com.   Follow us on Facebook (www.facebook.com/currensee) and Twitter (www.twitter.com/currensee)

By Fast Brokers – Gold is undergoing a hefty selloff right now as the S&P futures drop through key technical supports in reaction to weaker than expected weekly Unemployment Claims and Philly Manufacturing data.  Today’s negative data set tipped the scale considering the rally the Dollar has been on lately.  The Dollar initially rallied during the Asia trading session after China’s pricing data printed hotter than analyst expectations, extending gains in the Dollar against all major pairs as investors headed for safety in fear of tighter liquidity from China.  Gold followed the Dollar’s lead, declining to its psychological $1100/oz level before bouncing off our 1st tier uptrend line.  However, gold has since dropped below our 1st tier and we notice a similar pullback in the S&P futures.  Hence, we could be entering a more extensive decline for both gold and the S&P futures over the near-term.  Our 1st tier uptrend line carries added weight since it runs through December 09 lows, or the psychological $1075/oz area.  Meanwhile, investors should keep an eye on the S&P futures and monitor their ability to stabilize for such an occurrence could allow gold to set a temporary bottom.

Present Price: $1095.20/oz

Resistances: $1097.02, $1102.62/oz, $1106.04/oz, $1110.08/oz, $1114.47/oz, $1117.85/oz

Supports: $1093.29/oz, $1089.87/oz, $1085.52/oz, $1082.10/oz, $1079.30/oz, $1074.95/oz

Psychological: $1075/oz, $1100/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 Fast Brokers – The USD/JPY continued to strengthen today, driving north towards 1/14 highs as the Dollar strengthened across the board.  Investors exited the risk trade in a hurry after China’s CPI and PPI data printed hotter than analyst expectations, indicating China’s central bank may need to tighten liquidity to temper inflation.  A more hawkish monetary policy stance from China could have ramifications for the global economy as a whole since China has been an engine driving the recovery.  Investors reacted by heading to the Dollar for safety, a positive development for the USD/JPY considering the BoJ is intent on countering deflation.  However, the USD/JPY seems to be topping out at our 1st tier downtrend line, just below 1/14 highs, after U.S. economic data printed weaker than expected.  Both weekly Unemployment Claims and the Philly Index disappointed, implying the Fed could refrain from tightening liquidity.  The Dollar has weakened in reaction and this development has stalled the USD/JPY’s advance.  Meanwhile, investors are awaiting Obama’s proposal for future financial reform.  The U.S. and Japan will be quiet on the data wire tomorrow.

Technically speaking, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday and 1/19 lows and the highly psychological 90 level should it be tested.  As for the topside, the USD/JPY faces multiple downtrend lines along with 1/14 and 1/12 highs.

Present Price: 91.76

Resistances: 91.46, 91.63, 91.84, 92.04, 92.25, 92.46

Supports: 91.12, 90.91, 90.75, 90.54, 90.37, 90.24

Psychological: 90, January highs and lows

(click to enlarge)

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 – The Cable has bounced off of our 3rd tier uptrend line after experiencing a large leg down during the Asia trading session.  The Cable finally participated in the broad-based Dollar strength taking place over the last couple days after pricing data from China printed hotter than anticipated.  The rise in China’s CPI and PPI indicates there could be further tightening down the road since the government doesn’t want the economy to overheat.  Tighter liquidity in China could have a noticeable impact on the performance of the global economy since China has been an engine driving the recovery from the nadir of the recession.  In addition to the news from China, the UK released M4 Money Supply data which was shockingly low (-1.1%).  This is the largest decline in the money supply since the beginning of the recession and could have placed further downward pressure on the Cable today.  Meanwhile, investors are awaiting the Philly Index from the U.S. followed by Obama’s proposal for new financial regulation.  Should the Philly print weak and investors take Obama’s proposal as a negative for the U.S. economy, we could witness further weakness in the Dollar as confidence surrounding America’s recovery wanes.  Speaking of which, the primary reason behind the Greenback’s weakness over the past hour or so is the much higher than expected weekly Unemployment Claims figure.  Higher unemployment could discourage the Fed from tightening liquidity any time soon, a Dollar negative.  The UK will release Retail Sales tomorrow and investors are expecting growth of 1.3%, which would be the largest growth rate since January of this year.

Technically speaking, as we mentioned the Cable has held up very well considering the plight of the EUR/USD.  The Cable has held strong above our 4th tier uptrend line and still has multiple uptrend lines serving as technical cushions along with 1/15 and 1/13 lows.  As for the topside, the Cable faces multiple downtrend lines along with 1/15 and 1/19 highs.  Furthermore, the psychological 1.645 area could prove to be a technical barrier should it be tested.

Present Price: 1.6315

Supports: 1.6262, 1.6238, 1.6214, 1.6184, 1.6161, 1.6137

Resistances: 1.6303, 1.6318, 1.6340, 1.6360, 1.6379, 1.6407

Psychological: 1.60, 1.65, January highs and lows

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 – The EUR/USD added onto yesterday’s losses after the Dollar appreciated across the board in reaction to stronger than expected CPI and PPI data from China.  Inflationary data in China indicates its central bank may be enticed to tighten liquidity further should prices continue to rise.  The concept that China may press down on the breaks has raised concern recording global economic growth since China has been the engine behind the recovery.  In addition to the data set from China, EU PMI data printed negatively mixed.  Although Manufacturing came in line with analyst estimates, Services shrugged a couple points below estimates.  More discouraging economic data from the EU gave investors ammo to sell off the EUR/USD despite the extent of the past few days.  However, the EUR/USD is attempting to bottom right now as gold pops and the Dollar weakens across the board in reaction weekly U.S. Unemployment Claims coming in much higher than analyst expectations.  The rise in claims has tempered enthusiasm surrounding America’s economic recovery, leading to speculation that liquidity will remain loose in the U.S., a Dollar negative.  Meanwhile, markets could get political today with President Obama set to announce his proposal for new financial reforms.  Should investors view the new reforms as a negative for banks this could lead investors to sell the Dollar.  The EU will keep the data train rolling tomorrow with the release of Industrial New Orders and the Belgium NBB Business Climate.  A positive data set could prove helpful in the EUR/USD setting a new bottom.

Technically speaking, the EUR/USD understandably face multiple downtrend lines considering the extent of its.  However, our downtrend lines have quite a bit of space between them, meaning the Euro could gain back some ground should the Dollar experience broad-based weakness.  As for the downside, we’ve placed a new 1st tier uptrend line running through intraday lows.  Additionally, the EUR/USD does have the psychological 1.40 level serving as a technical cushion.  The 1.40 area alone could prove to be enough of a psychological influence to allow the EUR/USD to calm and bottom out.

Present Price: 1.4104

Resistances: 1.4117, 1.4146, 1.4165, 1.4191, 1.4224, 1.4247

Supports:  1.4080, 1.4065, 1.4045, 1.4015, 1.3981, 1.3950

Psychological: 1.40

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 Anton Eljwizat – Yesterday’ bullish movement of the GBP/NZD cross hasn’t received much support as of late. Below, I will demonstrate that the GBP/NZD pair has already commenced a downward trend for today, and the cross may tumble another 40-110 pips in the coming 2 days. Traders are strongly advised to take advantage of the trend at an early stage. Therefore, why not open short positions at an excellent price?

• The technical indicators that are used are the Williams Percent Ranges, Relative Strength Index (RSI), and Stochastic Slow.

• Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.

• Point 2: : The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The Williams Percent Ranges signals further bearishness for the pair, which in turn indicates further downward pressure to occur anytime soon.

GBP/NZD Daily Chart

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.