Month: October 2010

By Daniel Shaw

In order to succeed trading Forex, every trader must create and follow a trading plan that will help him systemize his trading activity:

1. Market’s analysis 2. Making a trading plan 3. Entering the market, opening a trading position 4. Closing a trading position 5. Analysis of the trading results.

Market’s analysis. Your goal is to find a good situation to enter the market. In order to do that you can use either fundamental or technical market’s analysis tools to understand the market and find the entry moment. This stage is very important as the success of your trading depends on your decision and the ability to find an entering moment that has high potential to make profit. To find this moment requires a lot of practice and trading skills.

Creating a trading plan. After you have found a potentially good situation to enter the market, you can proceed to creation of the trading plan. According to the market’s situation you decide on the conditions you open a trading positions, its reasons, and tools that will help you to open and carry a trading position. Levels of stop loss and take profit orders. Risk management for your position that includes the size of transaction, the balance of free margin, leverage, etc. The possible conditions for changes of your trading plan.

Entering the market. The plan you have written will play a role of a direct instruction for actions and will relieve you from stress and emotional pressure while opening a trading position. What you need to do is just to follow your own instructions for opening the trading positions and placing the stop loss and take profit orders.

Closing of a trading position. This is a moment, when you need to close a trading position according to your plan. It may be executed manually by yourself or achieving a take-profit order. Whatever method of closing a trading position you choose, here is a time for the last stage of trading.

Analysis of your trading activity. When transaction is closes and there is no any reason for pressure and stress, it is a time to analyze your action regardless to the results of your trading. Try to pay attention to the following points. Did you include everything to your trading plan? Have you found new circumstances that must be considered in the future? Did you follow the plan? Answering these questions will help you improve your trading strategy and make it more successful.

Now you can understand what a successful Forex trading means. Most of the time trading is a tedious work and not everyone is able to do that. Only for the diligent work you get rewarded, otherwise your funds will be lost. If you don’t afraid of the difficulties, start acting now. For the beginners who don’t have a trading account yet, we recommend to start from choosing a good broker to open a trading account and practice in demo before trading for real money. There are many Forex brokers around that are legitimate and trustful.

About the Author

Liked this article? Visit our website Singapore Forex to find the answers on most of your Forex trading questions and review the most popular Singapore Brokers.

By Daniel Shaw

When working on developing of your own trading strategy, don’t forget to take the volatility of the Forex market into your consideration. Forex in Singapore as well as other parts of the world is open 5 days a week, 24 hours a day, which allows any trader from any part of the word take part in the global Forex trading and not to miss any good opportunity to increase your capital. Every trader must understand and take into his account the timing of various trading sessions since the foreign exchange market at different times of a day may behave differently.

Each currency pair that is traded in Forex market has some volatility where it experiences the biggest movements and price changes. It usually takes place during the certain hours of a day when the country is active and many events happen. Usually every part of the world has biggest influence on its currency, so knowing the time of each trading session may give you a clue which currencies it is better to trade.

London (European) session is the largest forex market and is more volatile than any other sessions. During the London session about 30% of daily transactions are done on forex market. The average price change for all currency paris during the London session is about 80 pips. For example, thedaily range of currency pairs as GBP/CHF and GBP/JPY is about 140 pips. In addition to these pairs, the most traded pairs in Forex market at this time condisdered to be USD/CHF, GBP/USD, USD/CAD and EUR/USD. Understanding of volatility for each traded currency pair allows you to set levels of risk, stop-loss orders and take-profit more correctly.

It is a fact that after the London session is over, many large investors prefer to transfer their investments from the European currencies to the US dollar. As at that time the New York (USA) session starts that is the second largest turnover in the Forex market. Knowing the time of different sessions and their features, can become the basis for the development of the trading system. The New York session is open from 12.00 to 20.00 GMT. The highest volatility during the day is seen in the period from 12.00 till 14.00 when both European and American sessions are open.

After the USA session is over the Tokio session starts, which runs from 0.00 to 8.00 GMT. This session includes all Asia and such big financial centers as Singapore Forex trading and Hong Kong. The greatest attention during this time is paid to the currency pairs GBP/CHF and GBP/JPY at an average daily range of about 100 pips. Forex in Singapore is also focused on AUD, SGD and NZD currencies. Taking into the consideration the preference of different sessions to the specific currency pairs, you can build a trading strategy that takes into account time zones when the appearance of a trend is most likely. Using the time factor of trading sessions and some proven technical indictors is the key to creating a successful trading system.

About the Author

Daniel Shaw is a proud author of many popular materials about Forex trading. Visit his portal Singapore Trader to find more information about Forex Trading in Singapore and Mustafa Forex.

By Cedric Welsch

Before you travel between Europe and the United States, you’re going to need to convert your Euro money to American money. This will make purchasing everything you need much easier while you’re abroad, as opposed to traveler’s checks which are only accepted by a limited number of retailers. If you need some tips on how to convert your money, this article can help.

Monitoring the exchange rates on a regular basis is very important. This is because they are constantly changing. In addition to fluctuating each and every day, they also change several times throughout the day. These rates are affected by many different things, so keep a watchful eye on them regularly to see how they are changing.

Finding out what the most current rates are is very easy. By searching the Web, you can find the rates for the Great British pound, Euro, and US dollar in an instant. Many websites also show the rates as they change in real time, so you can rest assured that you have the latest facts and figures before you decide to exchange your cash.

The best thing you can do before you travel is exchange your Euro money to American money. You don’t want to get caught in a foreign place without any cash. Always travel with the right currency on you, so you can pay for your food and shelter while you’re away from home.

Before exchanging your money, find out how much you will need for your trip. Do a Web search to find out where you’re going to stay and how much it’s going to cost. Also, think about where you’re going to eat and if you plan on buying any gifts and mementos for yourself and for friends and family members. After you’ve figured out what you’re going to spend your money on, all you have to do is add up the numbers. You may want to add a little extra to the final total, however, to account for unexpected costs.

Do not exchange your money until you’ve shopped around for the best deal. It is a common misconception that all businesses will give you the same rate, but this simply isn’t true. Each business will either charge a flat fee or will ask for a percentage based upon how much money you exchange. Some businesses may take a fee and a percentage.

Fortunately, it is easy to find the best deals nowadays. Doing a simple Web search will help you find tons of businesses that exchange money and they will also let you know what their commission rates are. If you put in the time and effort to search for the best rates on converting Euro money to American money, you can rest assured that you’ll have more money for your travels than if you didn’t.

About the Author

Do you want to really make profits with forex? Make sure you get fresh updates ahead of everybody else here: Forex News

Also, you need to know how to read and analyze the trading market well. Learn Currency Trading News

USDCAD breaks above the falling price channel on 4-hour chart, suggesting that lengthier consolidation of downtrend is underway. Further rally towards 1.0232 key resistance is expected in a couple of days. As long as 1.0232 resistance holds, downtrend is expected to resume, and one more fall towards 0.9930 (Apr 21 low) is still possible. However, a break above 1.0232 will indicate that the fall from 1.0672 has completed at 0.9979 already, then the following upward move could bring price to 1.0600 area.

Written by ForexCycle.com

By James McKee

The Obama Administration announced today that it will be lifting the deep water oil drilling moratorium which was put into place after an underwater oil rig exploded on April 20th of this year causing unimaginable damage in terms of lost life, lost wages and, overall damage to the environment near the Gulf Of Mexico. It has been cited as one of the worst ecological disasters in history, and the moratorium was supposed to act as incentive for the oil companies to take extra measures in the future to avoid any further catastrophes. Now that the hole in the well has been plugged and the political storm has settled somewhat the moratorium has been lifted. It is lifted under the assumption that oil companies abide by safety regulations and possess the equipment necessary to prevent further accidents, the return of offshore drilling signals a decrease in US dependence on foreign oil.

Oil is present in every transaction in any economy on any given day, some might be more indirect than others but oil is necessary to provide transportation for goods, parts of goods, to transport employees to manufacture the goods etc… etc… This article is not here to draw attention to the oil crisis but rather the economic impact of cheap oil in the United States. To put it simply it will be a positive impact where the US dollar is concerned, and I believe it is a good idea to keep your eyes on the USD for the next month or so as the oil rigs come back online to see how large of an impact this event will have.

I would say that considering the GBP’s poor performance as of late against a number of other currencies would certainly make the USD|GBP a pair to keep an eye on. Something I would proobably avoid is the USD|CHF in the short term due to the CHF’s recent breakout comparisons to the EUR, the USD, and the GBP. In any event the USD is looking to kick up some dust in the eyes of the other majors and traders should definitely take note of this.

Remember that when dealing with a volatile pair you should always keep an eye on the way your trade is moving along within the currency exchange, forex is always an unpredictable place to carve out a living but in situations like this extra caution is needed. Look for trends, be patient and make sure to keep solid SL/TP limits in place. Happy trading!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. It is vital to remain in the loop where new technologies are concerned, make sure to stay up to date on the latest developments and always make the most of your ability to utilize the best forex exchange rates as much as possible when trading!

By Warren Seah

Most people have an innate drive to achieve their personal best, to develop their abilities to the fullest. This drive, along with the pleasure of the game and the lure of money, propels traders to challenge the markets.

Successful traders keep honing their skulls, trying to reach their personal best is more important to them than making money. The trouble with self- fulfillment that many people have a self-destructive strait. Markets offer unlimited opportunities for self-sabotage, as well as for self-fulfillment.

Traders who are not at peace with themselves often try to fulfill their contradictory wishes in the market. If you do not know where you are going, you will wind up somewhere you never wanted to be.

Fantasy versus Reality

If you hear a beginning trader wanted to replace his working income by his trading profits, it is often a very challenging tasks even for intermediate traders. Firstly, i will assess on how much trading capital the beginning trader intends to put in his trading account. If he can achieve a return of 2 % of his trading equity consistently for the next 3 months, this will bring him to the top tier of all the traders. The fact is 95% of the traders destroyed their first account within the first 6 months of trading.

For a $50,000 account, you may have a small chance to replace your working income. Any amount below $50,000, you are considered under-capitalised (to replace your income in such a short time) and forcing yourself to achieve your goals may mean that you take on more risks, over leveraging and over trading. These will harm your trading equity if not done correctly.

A successful trader is a realist. He knows his abilities and limitations. He sees what is happening in the markets and knows how to react to them. He analyses the markets without cutting corners, observes his own reactions, and makes realistic plans. A professional trader cannot afford illusions. They identify these fantasies and get rid of them.

The Under-Capitalisation Myth

Many people would think that they would have a better chance of success if they could trade with more trading capital. It happens that people get into a bad trade without a proper stop loss. They aren’t willing to close the trade and take the losses. They would often hold on to the bad trade until it more or less wipe out his trading account. At that time, he would be experiencing so much emotional pain when he decided to close the trade. Often, after the amateur is sold out, the market reverses and moves in the direction he expected. This made him think had he survived another day, he might have made a small fortune!

The real problem isn’t about the holding power, it is about controlling losses, getting out of bad trades early and holding on the winners as long as possible. An amateur trader can destroy a big account almost as quickly as a small one.

LEARN FROM CHEAP MISTAKES

It is recommended that as a beginning trader, do not start an account bigger than $20,000, and do not lose more than 2% of your trading equity on any single trade.

A professional traders will achieve the discipline of a strict money management plan, acting fast to cut losses from a bad trade when necessary.

The Autopilot Myths

Traders who believe in the autopilot myth think that the pursuit of wealth can be automated. Some try to develop an automatic trading system, while others buy one from the experts. Often, they are driven by greed and laziness. Some of the systems do work, but it required a trader some work in order to identify the truly profitable ones. In addition, it requires a person to be educated in investment and trading before he has the foresight to identify the good systems out there. This will take time and increase with the number of mistakes you made in your pursuit. Sadly, some would give up after a few times.

Autopilot is not for everyone. An autopilot system used by an amateur trader may still be not profitable. It is because the amateur trader may not have the capacity to handle losses. This will cause him to interfere in the system trading and human intervention into an autopilot system will render its effectiveness.

There are good trading systems out there, but they have to be monitored and adjusted using individual judgement. Knowing what system parameters to adjust upon the changing market conditions will give you the edge to successful trading. Most of the trading systems will need to be adjusted to perform in the changing market conditions.

BOTTOMLINE: If you want to believe in autopilot, do your homework before you find one!

Market Gurus Myth

When all things failed, people turn to gurus in search of the answers to profitable trading. The fact is it’s not the guru’s first priority to make you rich! Their first priority is to make themselves rich first before anything else. You can learn much faster from attending some of these guru’s courses. However, this does not mean you will start profiting from trading the market within the first few months.

A trader requires hard work, discipline and working smart to achieving a consistent returns in the long run. The public wants gurus, and new gurus will come. As an intelligent trader, you must realise that in the long run, no guru is going to make you rich. You have to work on that yourself!

About the Author

Warren Seah

Warren examines commercial trading systems and has researched and analysed systems to uncover systems which bring in consistent profits.

Click Here For More Guides On Auto Forex Systems

http://www.FxEAReview.com

NZD/USD

Weekly graph: http://www.real-forex.com/charts-daily/181010/NZD_WEEKLY_181010.JPG

One Hour graph: http://www.real-forex.com/charts-daily/181010/NZD_1H_181010.JPG

The pair reached an important resistance of 0.7642 after several weeks of a clear uptrend. Once the resistance reached, the pair started to decrease, creating an opportunity for a “Short” transaction.

Potential trade

Our suggestion before entering any transaction is to identify a decreasing configuration on one hour graph. Our analyses suggest the creation of such a configuration once the support level of 0.7534 will be crossed. The best time to order the transaction might be after the identification. Following our analysts’ transaction:

• “Limit” order on “Short” position 10 pips below the mentioned support – 0.7524.
• “Stop Loss” order on the last high occurred – 0.7584
• First destination suggested for a “Take Profit”: 0.7479

According to our analyses, the probability for a long-lasting “Short” is quite high. Anyway, we would limit the profit to the closest support in order to avoid bad surprises.

GBP/USD

Daily graph: http://www.real-forex.com/charts-daily/181010/GBP_DAILY_181010.JPG

One Hour graph: http://www.real-forex.com/charts-daily/181010/GBP_1H_181010.JPG

A second test of the resistance level of 1.6001 happened during the last trading session. This second test confirmed the strength of this resistance, suggesting high probability for a reversing trend. On daily graph, a falling star (10 pips breach of the last low occurred) should confirm the reversal.

We are anticipating a small correction of the trend before the real decrease will start. Therefore, we suggest waiting for the end of the correction, identifying the decreasing configuration on the One Hour graph, and entering the transaction you might want.

Have a profitable day!

Real forex team

By Justin Thomas

Banks, Non-Bank financial institutions and online service providers compete on the global market for money transfers, but companies that are more innovative lead the pack for such services.

Many people believe there are a mere three to four ways to make a currency transfer abroad. True, but if said a decade ago. Ever since, there emerged many online money transfer and foreign exchange companies, which grew as reliable and flexible as to broaden the array of methods and, thus, form a very competitive global market for this type of service. Therefore, research is essential before opting for a method. To start out, here are some of the most popular and convenient ways to send money abroad.

Sending a cheque to a beneficiary is one of the oldest currency transfer methods. While safe, it could be very frustrating due to its time-consuming character. Cheques could travel up to 10 days to reach their destination and it takes some more time to clear the check. Furthermore, they are subject to sizable bank fees.

The wire transfer appears to be a more convenient way to send money abroad, plus there is no requirement for you to be a client of a bank and you can send money in the local currency, which will be automatically converted into the beneficiary”??s home currency or the currency of his/her bank account. Banks usually charge a hefty $30-40 per wire transfer but at the same time exchange rates are good, which makes this method appropriate for sending sums exceeding $3,000 “?” $4,000.

Some companies offer cash transfers, whereby a person living in a particular country deposits money with an intermediary and the beneficiary physically receives the deposited sum from a location elsewhere in the world. These companies usually charge a fixed fee plus percentage of the overall sum. Be aware that while most of these companies are trustworthy they charge relatively high fees to transfer funds and restrictions on the sums sent apply.

Sending a debit card is a method, under which the beneficiary receives a debit card and then he/she can receive money on it. Several non-bank companies offer such worldwide debit cards but they also charge relatively high fees on ATM money withdrawals and can freeze the card if it has zero balance for a certain time period.

Another fast and convenient way to send currency abroad is via one of the numerous online money transfer services. Usually, you must have a bank account in a local bank in order to withdraw money from your online account. These services also perform currency exchange operations, but one should bear in mind that rates of different companies vary a lot and usually the exchange rate is about 2.5% lower than the current market rate.

Sometimes it is hard to find your way and choose the best service provider and the best method to make a currency transfer abroad. Try to conduct thorough research of the service provider and compare different methods before choosing the most appropriate option, which would guarantee a speedy service and the lowest possible costs. You should also keep in mind that you have to possess the correct contact details of the beneficiary i.e. full name and address, bank account number or IBAN, SWIFT code of the bank, etc.

By Justin Thomas

The recipient will be subject to a Currency Transaction Report if he/she is trying to withdraw more than $10,000 in cash

Most developed countries have introduced legislation which poses restrictions on cash deposits or withdrawals or, alternatively, have subject these transactions to some kind of control. In the United States, if a person is trying to conduct such an operation with a financial institution and the sum is larger than $10,000, then the financial institution is obliged by law to report it and to file a Currency Transaction Report (CTR) with the Internal Revenue Service (IRS).

One has to bear in mind that the federal law applies to each deposit, withdrawal, exchange of currency, or other payment or transfer by, through, or to the financial institution, involved in a currency transaction worth more than $10,000. However, there are exceptions which apply to some groups called “exempt persons”. These include: any bank in the United States; departments or agencies that fall under federal, state or local governments; any corporation whose stock is traded on the NYSE, Nasdaq and the American Stock Exchange (excluding stocks listed on the Emerging Company Marketplace and under the Nasdaq Small-Cap Issues heading).

Thus, if you intend to make a currency transfer to the U.S. and your relative or spouse needs to withdraw the money to pay for something in cash, he/she will be subject to CTR. The same rule applies to attempts to conduct a multiple cash transaction exceeding a daily cap of $10,000 (a process called “structuring”). Such structuring aimed at evading CTR reporting is prohibited by the law. Making a cash transaction in excess of $10,000 is not a violation of the law itself. Rather, the person who withdraws money will have to provide a valid ID regardless of his relations with the financial institution, i.e. even if he/she does not have an account in it.

Few are likely to regularly make currency transfers for such a large sum, but if you are among those few, then you must be informed about the existence of SAR. You may conduct multiple currency transfers to your spouse in the U.S. for sums close to but under the $10,000 threshold and he/she can cash them in without any problems. However, these accounts and transactions will be subject to close monitoring by tellers and banks and at some stage they could decide to file a Suspicious Activity Report (SAR).

So if you plan to send a currency transfer exceeding that sum to the United States, inform the recipient about these restrictions because a bank teller is not obliged to tell the customer that a CTR or SAR will be filed unless the client asks the question himself. The same or similar legislation is in force in all member states of the European Union and most European countries. It is important to know that in most cases it is not unlawful to conduct such transactions but a report will be filed with the respective government body.

By Christopher Seiter

With regards to purchasing gold people are often baffled. There are lots of factors that go straight into predicting each time a stock will move way up or alternatively go down. Seeing as how so many people are confused about how to properly invest in gold I decided to write an article on the fundamental principles of gold investing.

Gold is definitely referred to as the anti-dollar. What do I mean when I say that? Easy, the amount of which gold is worth tends to elevate when the United States dollar falls. Since 2001, the U.S. dollar has long been gradually falling in overall value while the price tag of gold is actually progressively improving.

Gold Holds

Throughout time there has been one truth with regards to gold, the provision of gold is limited, which assists it in its quest to hold its value. To state my speculations in simpler terms, the total that gold seemed to be worth back in medieval times will be what it still worth today. Interesting huh?

Golds Alarm

Gold acts as an alarm from a sudden rise in inflation. So, if you get a tip or sudden inkling that we will possibly be experiencing a sudden blow up of inflation then you might like to think about increasing your stock portfolio by adding some gold stocks.

ETF’s And Their Impact

Among the most effective options to purchase gold is via an ETF (Exchange-Traded Fund). A fantastic ETF is often compared to a mutual fund that should be bought and sold like an investment. A couple of of the extremely well known ETF’s are StreetTracks Gold Shares and iShares Comex Gold Trust.

Among the finest reasons for trusting an ETF is the fact that the strain to store physical gold is completely off your shoulders and the heavy load is take up by the ETF. It does not take a renegade to know that when you purchase physical gold you take on a significant risk since it has a chance to be taken by a thief or simply misplaced.

ETF’s And Mining Companies

An extra way to pay for gold is by using an ETF that owns gold mining companies or simple rare metal firms. There are several ETF’s that have one goal: To purchase organizations that strictly mine gold.

Gold Coins

One of the more interesting and fascinating ways in which to purchase gold is going to be through a gold coin. You’ll find that people that like to own personal gold coins also additionally invest in gold coins. If you have got the urge to buy gold coins be sure to shop carefully and buy from a trusted gold coin dealer.

Remember:

If you desire to invest in gold do not ever go overboard seeing as the buying price of gold often fluctuates. Follow the basic guidelines stated above and you should have no problem investing in gold.

About the Author

Before you go anywhere now click here to get the latest gold investing stock tips: Gold Miners