Month: December 2010

Many financial experts and Forex trading gurus consider Forex trading signals the backbone of foreign exchange. These signals are a mixture of several factors which are compiled from many different sources and supplied directly to the trader in a straightforward and easy to digest format.

Prior to the advent of the internet as the most prominent communication channel, Forex day trading signals were subject to numerous difficulties and were primarily transmitted via telephone, print media and radio. These communication channels were very sluggish and difficult to rely on. These days, fresh technology has facilitated superior, more rapid and efficient currency trading considering that communication is affordable, rapid and more reliable.

A wise investor who entirely utilizes Forex trading signals will certainly benefit tremendously from proper timing and strategy. In the absence of these signals, the foreign exchange market would fall considering there would be absolutely no avenue for free data movement, no one would benefit. Foreign exchange trade would be difficult since traders would not be in a position to keep track of market movements and developments.

Investors in the foreign exchange business use trading signals to ascertain precisely what periods are right to enter the currency market and which are best to quit matching their profitability objectives. Essentially, these indicators are the determinants or informers that notify a trader whenever the market conditions favor them or there exists a risk that the trader is going to be disadvantaged by an anticipated movement in the market trend.

If you are a beginner in the foreign exchange trade, day trading signals make the perfect ground to acquire more experience and understanding regarding how to develop sound strategies and trade in the online market. Since every deal heavily relies on one kind of trading indicator or another, a trader ought to use FX signals as a starting position in making virtually any transaction. Making use of these indicators generally means that a trader is perfectly up to date with the current developments in the FX market and that whatever buying and selling activities that take place in the general market will impact the trader’s transactions.

Given that the work of a currency trader has to be swift and flawless, he requires a technique to make his / her job more expedient and efficient. Included in this system must be graphs, maps as well as Forex day trading signals. A few pointers and time guides work well for FX day trading.

Graphs can be extremely useful. The majority of currency day traders tend to favor the 1-5 minute time frame graphs more than the 15 minute types.

Nevertheless, an excellent time frame chart system is to check the 15 minute chart then the 5 minute chart for keying in or closing trades. This is for those who find the one minute chart too fast.

The goal of investors is to have as many successful trades as possible before ending all trades for the day. You can also get losing trades, but the objective is to have more successful trades than loss making ones. This ensures that income is made daily through all winning trades regardless of whether losing trades are present.

An excellent group of trading signals will help traders ensure that a loss making trade is immediately cut off so as to minimize loss. The group of indicators must also allow him to maintain winning trades running. This means even if there are losing trades each day, the day trader can continue to earn revenue by cutting off loss making trades and keep winning trades running.

To obtain the most from Forex day trading signals, an investor ought to sign up for trading signal services that update them through the most convenient means and do so frequently. If you are a full-time trader in online FX, perhaps you may consider Forex trading signals that are updated through currency trading platforms but for traders who are always on the move, short message and e-mail may perhaps be more convenient.

About the Author

Harald Reno is publisher of http://www.ForexWealth4U.com. On his website he provides information on Forex day trading signals. You can also register for FREE Mini-Course on “Forex Trading Tips” to gain rare insight into Forex Trading.

Making money in the foreign exchange marketplace is not as easy as most beginners in FX investment are led to believe. As a matter of fact, most investors’ troubles begin when they enter the trading marketplace with set minds that investing in foreign currencies is easy money or a get rich quick scheme. The truth is that it takes more than having enough money to invest and learning everything there is to know about the trade, Forex trading strategies are essential to make a profit or even to remain in the money market. Without trading strategies, investing in buying and selling currencies is a waste of money because you will never achieve success and will instead lose your money.

Trading strategies are vital no matter how experienced or confident a trader is. A combination of a workable strategy and good knowledge in foreign exchange trading is definitely a winning combination. How can you develop a winning strategy? Here are some tips to guide you in coming up with good Forex trading strategies:

Understand the Fundamentals

FX trading is a complicated business. The foreign exchange investor ought to consider what may be referred to as the “fundamental” aspects of a country’s economy (i.e. the qualitative aspects that may have a bearing on its currency’s exchange rate). So, what are these “fundamental” elements? They include political postures and developments (such as modifications to a nation’s national economic policy) as well as pertinent decisions made by the nation’s central bank.

Additionally they consist of any important bits of economic news affecting the country in question. The Forex trader needs to not only know about this information at an early stage, but to effectively “speculate” how the trading markets will react to it. It would possibly be unwise for traders (even individuals with considerable marketplace experience) to disregard these fundamental elements and to merely base their buying and selling decisions upon technical analysis.

Research Widely Online

There are many websites that offer advice and assistance in developing Forex trading strategies. Although most are free to use, they often require one to be a member through a simple online registration process. When you get advice from such websites, remember that there is no guarantee that the strategies you adopt will work. Besides, a good strategy is not how it is planned; it is how it is executed.

Consult a Foreign Exchange Professional

One of the best options to get assistance when starting out in FX trading is hooking up with a professional or expert. This way, you will get personalized step-by-step instructions on how to develop winning Forex trading strategies. If you find the right mentor to see you through the initial stages of planning, you will gain more knowledge faster and you will be designing your own strategies and implementing them in no time.

Join a Group of Investors with Similar Interests

The cheapest and most practical way to learn how to come up with winning Forex trading strategies is joining groups of traders with similar interests. This way, members are able to research widely and advice each other accordingly.

Developing strategies is not difficult in Forex trading, but there are many factors to consider while doing so. These include expected turnover, current events, market speed and technical Forex analysis. A good strategy means that a trader will trade well and results in a profit. A new investor is advised to learn and practice before investing their money.

About the Author

Harald Reno is publisher of http://www.ForexWealth4U.com. On his website he provides information on Forex trading strategies. You can also register for FREE Mini-Course on “Forex Trading Tips” to gain rare insight into Forex Trading.

The price of gold have been relatively volatile during the past couple of weeks due to the swings in market sentiment. On November 9, gold marked a new all-time high at $1,424.00 per ounce before falling steeply amid the speculation that China will raise its interest rates to place a check on its 4.4% inflation figure for the month of October. A rise in interest rates would likely slow China’s growth and since it is now the number two biggest economy in the world, such would not go reflect in the other countries as well especially its trading partners, hence, boosting the greenback. It’s kind of weird, however, since the price of gold actually rose when the same inflation data in China was released the day before.

In any case, the price of gold rallied back and is actually flirting with its previous all-time high again. Last Friday (December 3), traded strongly when the NFP report in the US only showed that US firms only added 39,000 jobs in November against the 143,000 estimate. The employment report also showed that the country’s jobless rate data has jumped to 9.8% as well. You see, unlike the other economic data nowadays, data on employment tends to be positively correlated with the movement in the greenback. The day before, gold likewise rose not on because of negative data but on news that pending home sales soared by an unprecedented 10.4% during the previous month versus the -0.7% forecast.

As mentioned, the price of gold is once again approaching its previous all-time high. As you can see from its daily chart, its uptrend line is very well intact but given its overbought conditions as indicated by the stochastics, the price of gold could range for awhile between the its high and the uptrend line before making a move higher. A move past the said high could propel it towards $1,525.00.

On the economic front, Australia, Canada, New Zealand, and the UK will all be having their monetary policy decisions this week. None of them, though, are expected to raise their interest rates due to their soft economic conditions. Barring any hawkish outlook, a move to stay as is would be typically bearish for the anti-dollar currencies and of course bullish for the USD. Such would of course weigh on the price of commodities such as gold.

More on LaidTrades.com …

Online Forex Trading is a very complex work. There are many newbie traders that underestimate any tools, instruments and analysis and think that online trading is as simple as playing casino where you have chances 50/50. It is definitely not so! Forex trading is a very complicated system and only its total understanding, knowledge and experience can let you trade Forex successfully.

Though the interest in technical analysis is growing and sometimes it replaces the fundamental analysis, it is still obvious that technical analysis is not enough for a profitable trading in Forex market. The world economy is so dynamic and unpredictable so any news or events can have a big and sudden influence on the market and cannot be predicted by just looking at the graphs.

Financial calendar is a good instrument of the fundamental analysis .You can use it in order to be updated with all economical news and events and be ready to the changes in the market when something important happens in the world. The most influencing the market events usually happen in USA (USD) and Euro zone (Euro). That is the reason why 60% of global trading is done on EUR/USD currency pair. This is the most popular currency pair in Forex as Europe and USA have the biggest economical systems that influence all the world economy.

The monetary policy of Euro zone is regulated by ECB (European Central bank), while decisions are taken by Governing Council that consists of National and Central Bank and the Board (ECB president, vice-president and four other members). The goal of ECB’s policies first of all is the price stability. Their main aims are to increase the Consumer Price Index (make it not less than 2%) and to increase the money aggregate (where annual growth rate must be not less than 4.5%).

The Council meets every month, on Thursday of the second week when the interest rate is announced. During this meeting the members give the average review of euro zone economic development prospects and rates of interest that is the most important aspect to control liquidity.

The similar announcement of the interest rates in USA is also important for the fundamental analysis of USD. Interest rate of both USA and Europe is a good indicator for the currency pair EUR/USD. It is also recommended to watch the cross-currencies that don’t include USD for a better picture of a fundamental analysis. While trading with EUR/USD currency pair there is a good reason to analyze the cross-currencies such as EUR/JPY and EUR/CHF. The Swiss (CHF) economy, for example depends on Euro zone economy. That’s why the fall of EUR/CHF causes the fall in rate of EUR/USD.

There are many traders who focus on both technical and fundamental analysis while trading on Forex market. Though these analysis are very different by approach, they give the broader and detailed view of the market. It is important to be constantly updated in the world political and economical events while trading in Forex market, as any event in one of the country’s economy may cause the chain of movements in Forex market charts.

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.

Forex money management requires educating yourself in varied financial areas. The forex market involves the exchange of currencies, the values of which change frequently. The factors influencing such change include economic stability of a country, inflation, prime rate, consumer price index, GDP, domestic security and foreign relations.

There are six major forex trading exchanges in the world – New York, London, Tokyo, Paris, Zurich, and Frankfurt. Most of the trading globally occurs in these bourses. The total worth of the global forex space is more than $1.4 trillion. Successful money management in the FX market requires an understanding of the bid/ask spread.

Golden Rules of Forex Money Management

1% Risk Rule: The key is to adjust your risk to 1% for every trade. You might even stretch to 3%, but that should be it.

Risk to Reward Ratio: The second rule is never to risk more than what you can eventually make.

Multiple Positions: Your first trade might give you unprecedented profits, but the key is not to open a second position until you see profits from your first trade. This gives you a cushion from your first trade, so you are not faced with a burden from your subsequent trades.

Like most speculative investments, a key component of money management in forex is risk. It is wise to set aside a portion of your wealth and make that count in forex trading. Remember, the forex market is extremely volatile. Staying on top of what is happening in the financial markets and the global economy is always a smart thing to do. Through years of experience, many traders reach a point where they can predict currency changes based on the political or economic state of a country. If you wish to reach that stage, you need to study the market carefully, research a lot, take extra precaution when managing your funds, and invest only what you can afford to risk.

Before commencing trading, be sure to check out different brokers by studying what they offer. You could read broker reviews and make your move. A good forex broker will help you immensely in forex money management and in raising your probability of success. Visit http://www.forex-rateit.com to get the complete picture of potential brokers.

About the Author

The author Kitz is a digital marketing professional and is associated with Veda Informatics. The Author recommends Foerx Rate It!, which helps traders with the forex broker lists, forex broker reviews, forex education, news & articles.

The two principal analyses in forecasting the foreign exchange markets are fundamental analysis and the technical analysis. Both possess their own benefits and constraints. Many traders use each of these together as contributory to one another.

Basis of Technical Analysis

The essential principle driving technical analysis is the fact that the fundamentals get quickly soaked up in the cost of an asset and, therefore, it is adequate to focus merely on the technical. According to believers in this type of analysis, it isn’t at all necessary to ponder about fundamentals of a foreign currency.

It is hard to comprehend and to accurately forecast all the factors impacting the price of the traded currency. Moreover, it might also not be necessary to attempt to pay too much attention to all of the factors behind the prices of currencies. Consequently, it might not be feasible to grasp every one of the fundamental aspects.

We are living in a tremendously informative era. Whenever there is any crucial news, it spreads rapidly and every one of the players adjusts their trade positions appropriately and swiftly. There are little or no lags. Almost all their actions are instantly reflected in the price of an asset. Consequently, price is definitely the primary measure in the movement of FX. That’s the spirit behind technical analysis.

Significance of Technical Analysis vs. Fundamental Analysis

Technical analysis is mainly utilized by equity and foreign exchange markets. This is a superb guide in figuring out the price of the Forex unit and couples its marketplace movement. Using this, a trader may disregard all the news and basically focus on price information over a given time period.

Technical analysis indicates how traders can take care of the fundamentals and the emotions of market players.

In any case, technical analysis is not a precise science and there is certainly no evidence to sustain it. Its principal importance is that it reduces risk and boosts profits.

Elements of Technical Analysis

One of the most important components of this technique of analyzing the prices of currencies are maps, charts as well as graphs.

Novice Investors

Technical Analysis may be simple to work with for any fresh investor in that he need not invest a great deal of time in understanding the fundamentals of the business. This offers an easy technique of evaluating the suitability of an investment.

New traders must nonetheless, realize that that is just one of several tools. This method is more relevant to professionals and experienced Forex traders.

In order to be successful with this, it is essential that a trader pinpoints the areas of support and resistance. That might not be an effortless task.

The general market movement is mainly based on human impulse. There are lots of reasons pertaining to selling and holding and they behave diversely at various points of time.

The other important principle in this really, is that the reaction time has to be extremely fast. You will find frequent ups and downs in price movements. All this demands a high level of concentration and activity. This could be stressful even for experienced Forex traders, not to mention the new ones.

The other major element to think about is the fact that outcome on past trends of currency could be in question.

The Best Technique

It will be ideal for any newbie investor first to understand the fundamentals of the currency. A trader ought to understand what is happening behind a currency price. Solely following one method of analysis without understanding the factors involved in the movement of a security may completely undervalue the relevance as well as utility associated with technical analysis.

About the Author

Harald Reno is publisher of http://www.ForexWealth4U.com. On his website he provides information on technical vs. fundamental analysis. You can also register for FREE Mini-Course on “Forex Trading Tips” to gain rare insight into Forex Trading.

By Paul Bryan – Those who like to deal in the international market Forex trading is an attractive option to them but before you start on it you must know how to do it. It is always advisable to the beginners to learn to trade Forex as it will give them the knowledge to do what is right.

For a beginner what is most important is to know what Forex is. Putting it most simply, it constitutes exchanging one currency for the other at a higher rate. It is a form of business where you will sell currency of one country to obtain currency of another and make a profit. It is the profit motive for which people all over the world indulge in Forex trading. It is important to notice that here you will be dealing with two sets of currencies. The one you will be selling is the base currency. The one you purchase is called the counter.

Buying and selling currencies may sound simple but it is not so and learning Forex is required when you enter the market. The market has its ups and downs and trading too constitutes some complicated deals in long and short term trading and analysis. The stakes and the players are important part of the market which you need to understand. To learn to trade Forex you should have an idea of the value of the currency you are dealing with and corresponding trends of the market. The most important thing is to know the strategies involved in trading.

To have a go at learning Forex you may take up a course in it from one of the online sites or from any land based institutes. Your aim for learning Forex would be know how to chart or predict movement of the market and the purchase and selling of foreign exchange. The psychological aspect of the Forex trading cannot be overlooked. As a beginner you have to learn to withstand stress or challenge which market tends to give as a Forex trader. Also the terminologies of the trade are important to learn.

There is a list of things to learn to trade Forex. This includes leverage, order, software, terminologies and margins. Technical and fundamental analysis is also essential to know along with the tools.

The ideal situation to learn Forex trading would be to create situations where the students will do actual market dealings for practice without the fear of losses. This should give practical experience which is extremely valuable and nothing can replace it. Moreover you should also learn to take stress, be disciplined in your actions and have patience.

With Internet coming in our life in a big way, it is not difficult to find a suitable site to do a course to learn to trade Forex. You will have the advantage of not moving out of your house to do the course. These courses tend to teach you all the aspects of Forex trading like money management, analysis of the market, strategies, tools and strategies.

About the Author

Paul Bryan operates Learning Forex Trading – A site dedicated to providing currency trading information and tutorials for free to new and struggling traders.

By Paul Bryan – Forex or Foreign Exchange is all about exchange of currencies of one country to the others’. It is about investing money in foreign currencies to gain profit by selling it at a higher price. Till few years back, currency trading was limited to large banks and financial institutions and they had access to the tools and methods to trade Forex.

However, because of the recent development of efficient online platforms and communication technology, individual traders can trade or invest in Forex. Forex brokers, conventional and online, works as the useful link between the investor and the market.

In this internet era, forex foreign exchange brokers are 24-hour online service providers who offer a secure online trading experience for you either in exchange of a small subscription or a percentage of commission. Forex brokers are individuals or group of professionals and market experts who can help you in making profits in forex trading.

You can open a mini account with a small sum to learn the basic principles of the market and then can graduate to a standard account. Your foreign exchange broker must help you in understanding the market, what are the advantages and risk factors involved with the trading.

Your forex broker should be registered to Futures Commission Merchant regulated by the Commodity Futures Trading Commission or should be a member of the National Futures Association.

You will find many online directories on the net that offer information on forex foreign exchange brokers and professionals and their services. These directories will help you in finding the right forex broker with accurate information about their past record and performance.

A typical forex foreign exchange broker may offer you 2 pips spread on EUR/USD and USD/JPY and 3 pips for all other major currency pairs. The spread should be low as lower pips means lower costs and thus a higher return on every execution.

The online trading platform offered by the forex broker should guarantee execution prices on every order type available without any slippage. The forex broker must provide a fully executable streaming price feed. The trading platform should be user friendly and easy to operate.

These days the forex brokers offer their services through mobile networks. It is a beautiful combination of portability and functionality. You can operate your forex trading through your mobile sets/PDA. With advanced technologies, it takes less memory space, offers increased stability, and robust security methods.

An ideal forex foreign exchange broker should offer

· low Pips spread on all major currencies
· instant execution even for large accounts
· zero slippages and no requotes
· constant margin requirements, even in volatile market situation
· free real-time charts that are rich in functionality
· stable and reliable dealing software
· no or low commissions
· extended technical analysis packages for free
· free foreign currency exchange news and economic fundamental calendar
· no negative balances – limited risk.

Before choosing the forex foreign exchange broker, do a proper research. Take help of the online sites offering comparison charts with pros and cons of the brokers and their services. Find out the spread they are offering is really the one you are getting while making actual trades. Ask for the past performances and enquire about the additional services they offer.

About the Author

To start trading currencies with the right online platform visit Forex Foreign Exchange Brokers

By Justin Thomas

Companies with expertise in currency trading can help you make a cheaper currency transfer using currency options.

Being under the wrong impression that the price of a currency transfer depends only on commission and fees, one might wonder why different companies offer different exchange rates for currency transfers or currency transactions in all. Currency transfer specialists and Forex brokers do not. Knowing the origin and extent of exchange rate volatility, they rather work to minimise the risk fluctuations might incur through the so-called “??currency options”?? or “??FX options.”?? They are a financial tool that allows hedging against unfavourable fluctuations in exchange rates. Using such derivatives is a perfect example of lowering risks and costs in currency transfers and transactions of all kinds.

In general, the currency option is a contract that grants the broker or individual to buy or sell a particular currency at a fixed exchange rate during a particular time period. The contract holder is not bound to execute the option but for this right he pays a premium to the other contractor. The two types of currency options are called “??put”?? and “??call”?? options, depending on the broker”??s intention to sell or buy a particular currency, respectively. Not surprisingly, the market for FX options is the most liquid and developed financial market in today”??s globalised world. It is primarily an OTC (Over-the-counter) market but currency options are also traded on the floor of the Chicago Mercantile Exchange and Nasdaq. Just recently, Deutsche Bank AG launched an electronic trading system for foreign exchange options.

Although the basic principles of currency options are simple and easy to understand, it is not recommended to enter this market on one”??s own. There are various fundamentals that influence the currency exchange rates and movements and you”??d better consult an expert for advice on currency options”?? use. However, currency transfer companies conduct such transactions and research every day, so they benefit from currency fluctuations and are able to provide you with reasonable advice about your planned currency transfer.

Currency options are available for practically all major world currencies. On the floor of Nasdaq are traded U.S. dollar-settled options on the Australian dollar, British pound, Canadian dollar, Euro, Japanese yen, Mexican peso, New Zealand dollar, Norwegian krone, South African rand, Swedish krona and Swiss franc, for instance.

Until recently currency options were traded via a phone call because the implementation of electronic trading was hard due to currency options”?? extreme complexity. On the other hand, the currency options market is a huge one and stands at $207 billion a day, according to data by the Bank for International Settlements.

Such enormous daily volumes allow you currency transfer operator to leverage its long and short currency position; hence, you get a more favourable exchange rate for your personal or business transaction. Brokers utilise at least several models to forecast exchange rate movements and in the majority of cases no more is required to offer you an advantageous rate against a particular currency. The most popular currency pairs include USD/EUR, USD/GBP, USD/JPY, EUR/JPY, EUR/CHF, USD/CHF and EUR/GBP but many more are quoted on the floor of various stock exchanges and OTC markets.

Forex is all about trading in currencies in an international market that works 24 hours a day and 5 days a week. But have you ever wondered how it is always possible to find a trader willing to trade in your currency pairs? And how is every trade made in forex completed in seconds? The answer to both questions lies in the workings of the Forex Market Makers.

Such market makers create a virtual trading floor for traders to trade on. They stand ready with their own bid and offer price for every currency pair. Every transaction of the trader is carried out by the market makers indirectly, without any fear of profit or loss. In forex, the list of market makers comprises investment banks, central banks, commercial banks and big brokerage firms. Forex market makers provide their services in both rising and falling market conditions.

How Do Market Makers Generate Profits?

Every service provider in the world has a means of generating profits. The same is true for forex market makers. They make money by:

1. Buying currencies at a price lower than the selling price.
2. Selling currencies at a higher price than the buying price.

Money generation here depends on the difference between the bid and offer price. This is commonly referred to as the bid/offer spread. Its value depends upon the liquidity of the market and the transaction cost.

Why are Forex Market Makers Important?

Market makers ensure that the market is always functional. They provide up to date information about every currency pair by refreshing their records every 30 seconds. This solves two purposes. Firstly, it provides an accurate view of the market before the trader trades in it; and secondly, it ensures market liquidity and efficiency of currency pairs. It is this form of marketing solution that has ensured the 24-hour trading system in forex.

Forex market makers have opened the way for several small time players to enter the trade floor. Large multinational companies and registered money brokers have now started providing such services. Some of the most famous Forex Market Makers are CMS Forex, Forex Capital Markets and Gain Capital. These are all regulated and managed by the Commodity Futures Trading Commission of USA.

For more in depth analysis of Forex Market Makers and for user reviews, visit Forex-RateIt. Here you will find a glossary of terms, the latest news and trends, amongst many other things associated with forex.

About the Author

The author Kitz is a digital marketing professional and is associated with Veda Informatics. The Author recommends Foerx Rate It!, which helps traders with the forex broker lists, forex broker reviews, forex education, news & articles.