Thursday, 2 December 2010

Economic Indicators Turn Postive for the U.S.

U.S. dollar higher in forex trading

Economic indicators are turning positive for the U.S., with hopes for another increase in nonfarm payrolls. Additionally, there has been an increase in consumer confidence, and that is helping matters.
For the most part, a cautious optimism has come to the U.S. market, helped along by holiday sales from the Black Friday weekend. The U.S. dollar is higher in forex trading, but that may just be due to weakness in Europe, and continued weakness shown by gold prices
.
For now, though, it does appear as though there is some hope for the U.S. economy, and that the U.S. economy may be finding its footing.


Euro Catches a Break in Forex Trading

Currency trading with EUR/USD

The euro is catching a break this morning in forex trading on the currency market. The last few days have been somewhat grueling for the euro, as it has been rather weak. Concerns about the state of the euro zone -- thanks to sovereign debt concerns -- have predominated.

Today, though, forex traders have something different to think about. Economic data has been pouring in from around the world, and the result is encouraging. High beta currencies from the pound to the Aussie are gaining along with the euro as the U.S. dollar drops.

With the U.S. dollar no longer needed as a safe haven, and with gains by metals to lend strength, EUR/USD is gaining rather handily in currency trading on the FX market. We will have to see how long this new found optimism lasts, however. More bad news could easily send the euro tumbling again.

Monday, 1 November 2010

U.K. Deficit Decreases, Thanks to Spending Cuts

Sterling heads higher against the U.S. dollar
The U.S. dollar is gaining against most major currencies today as confidence in global economic recovery slips a bit. However, the one major currency that is gaining against the U.S. dollar is the sterling.

U.K. Deficit Retreats

David Cameron's government promised to cut spending and lower the deficit, and it appears that just such a scenario is under way. The U.K. deficit is being reduced, and that is providing forex traders with a currency to be confident in.

While deficits in the U.S. and euro zone grow, Britain is showing that it is possible to cut back. The move now means that the risk of a credit rating downgrade has been significantly reduced, and that Britain is likely to maintain its sterling rating.

Friday, 29 October 2010

U.S. Dollar Slips in Forex Trading



U.S. Dollar Slips in Forex Trading

Gold prices, optimism pressure greenback in currency trading
The U.S. dollar, after enjoying a bit of a rally recently, is now slipping again in forex trading on the currency market. Today's developments are pressuring the greenback a bit in currency trading.
Gold prices are moving higher, and that is putting some pressure on the dollar, which often moves inversely to the precious metal. Additionally, there is some optimism about earnings today, and the direction of the global economic recovery. This sort of optimism precludes the need for the dollar as a safe haven.
Developments in Japan have had little effect on the U.S. dollar. Japan makes its moves to weaken the yen against the greenback, but so far efforts at quantitative easing in Japan have failed to produce the desired results of yen weakness.
The next big market mover for the U.S. dollar in forex trading is likely to be next week's Fed announcement. More quantitative easing is expected, but there is uncertainty about how big the Fed's efforts will be.



Wednesday, 1 September 2010

London dominant in global currency trading

The average daily turnover in the City this year was $1.85 trillion (£1.2 trillion) - or 37pc of global turnover, according to a three-year report into currency dealing by the Bank of International Settlements.
Around $4 trillion changed hands around the world every day in April, up from $3.3 trillion in April 2007.
New York, the second most important currency centre, does about half the amount of trading taking place in London.
The dollar continued to be the most traded currency in the UK market, involved in 85pc of all trades, while the euro and the Japanese yen gained relative to April 2007.
Simon Derrick, the head of currency research at Bank of New York Mellon, said the growth in foreign exchange trading reflects a number of important recent trends in the real economy - including the economic strength of developing countries.

Thursday, 6 May 2010

Larry Williams Trading Rules


  1. It's all about survival.
    No platitudes here, speculating is very dangerous business. It is not about winning or losing, it is about surviving the lows and the highs. If you don't survive, you can't win.
    The first requirement of survival is that you must have a premise to speculate upon. Rumors, tips, full moons and feelings are not a premise. A premise suggests there is an underlying truth to what you are taking action upon. A short-term trader's premise may be different from a long-term player's but they both need to have proven logic and tools. Most investors and traders spend more time figuring out which laptop to buy than they do before plunking down tens of thousands of dollars on a snap decision, or one based upon totally fallacious reasoning.
    There is some rhyme and reason to how, why and when markets move - not enough - but it is there. The problem is that there are more techniques that don't work, than there are techniques that do. I suggest you spend an immense and inordinate amount of time and effort learning these critical elements before entering the foray of financial frolics.
    So, you have money management under control, have a valid system, approach or premise to act upon - you still need control of yourself.
  2. Ultimately this is an emotional game - always has been, always will be.
    Anytime money is involved - your money - blood boils, sweaty hands prevail, and mental processes are shortcircuited by illogical emotions. Just when most traders buy, they should have sold! Or, fear, a major emotion, scares them away from a great trade/investment. Or, their bet is way too big. The money management decision becomes an emotional one, not one of logic.
  3. Greed prevails - proving you are more motivated by greed than fear and understanding the difference.
    The mere fact you are a speculator means you have less fear than a 'normal' person does. You are more motivated by making money. Other people are more motivated by not losing.
    Greed is the trader's Achilles' heel. Greed will keep hopes alive, encourage you to hold on to losing trades and nail down winners too soon. Hope is your worst enemy because it causes you to dream of great profits, to enter an unreal world. Trust me, the world of speculating is very real, people lose all they have, marriages are broken up, families tossed asunder by either enormous gains or losses.
    My approach to this is to not take any of it very seriously; the winnings may be fleeting, always pursued by the taxman, lawyers and nefarious investment schemes.
    How you handle greed is different than I do, so I cannot give an absolute maxim here, but I can tell you this, you must get it in control or you will not survive.
  4. Fear inhibits risk taking - just when you should take risk.
    Fear causes you to not do what you should do. You frighten yourself out of trades that are winners in deference to trades that lose or go nowhere. Succinctly stated, greed causes you to do what we should not do, fear causes us to not do what we should do.
    Fear, psychologists say, causes you to freeze up. Speculators act like a deer caught in the headlights of a car. They can see the car - a losing trade, coming at them - at 120 miles per hour - but they fail to take the action they should.
    Worse yet, they take a pass on the winning trades. Why, I do not know. But I do know this: the more frightened I am of taking a trade the greater the probabilities are it will be a winning trade. Most investors scare themselves out of greatness.
  5. Money management is the creation of wealth.
    Sure, you can make money as a trader or investor, have a good time, and get some great stories to tell. But, the extrapolation of profits will not come as much from your trading and investing skills as how you manage your money.
    I'm probably best known for winning the Robbins World Cup Trading Championship, turning $10,000 into $1,100,000.00 in 12 months. That was real money, real trades, and real time performance. For years people have asked for my trades to figure out how I did it. I gladly oblige them, they will learn little there - what created the gargantuan gain was not great trading ability nearly as much as the very aggressive form of money management I used. The approach was to buy more contracts when I had more equity in my account, cut back when I had less. That's what made the cool million smackers - not some great trading skill. Ten years later my 16-year-old daughter won the same trading contest taking $10,000 to $110,000.00 (The second best performance in the 20-year history of the championship). Did she have any trading secret, any magical chart, line, and formula? No. She simply followed a decent system of trading, backed with a superior form of money management.
  6. Big money does not make big bets.
    You have probably read the stories of what I call the swashbuckler traders, like Jesse Livermore, John 'bet a millions' Gates, Niederhoffer, Frankie Joe and the like. They all ultimately made big bets and lost big time.
    Smart money never bets big. Why should it? You can win big on small bets, see #5 above, but eventually if you bet big you will lose - and you will lose big.
    It's like Russian Roulette. You may well spin the chamber holding the bullet many times and never lose. But spin it often enough and there can be only one result: death. If you make big bets you are destined to be a big loser. Plunging is a loser's game; it can only set you up for failure. I never bet big (I used to - been there and done that and trust me, it is no way to live). I bet a small per cent of my account, bankroll if you will. that way I have controlled loss. There can be no survival without damage control.
  7. God may delay but God does not deny.
    I never know when during a year I will make my money. It may be on the first trade of the year, or the last (though I hope not). Victory is out there to be grasped, but you must be prepared to do battle for a long period of time.
    Additionally, while far from a religious person, I think the belief in a much higher power, God, is critical to success as a trader. It helps puts wins and losses into perspective, enables you to persevere through lots of pain and punishment when you know that ultimately all will be right or rewarded in some fashion. God and the markets is not a fashionable concept - I would never abuse what little connection I have with God to pray for profits. Yet that connection is what keeps people going in times of strife, in fox holes and commodity pits.
  8. I believe the trade I'm in right now will be a loser.
    This is my most powerful belief and asset as a trader. Most would be wannabes are certain they will make a killing on their next trade. These folks have been to some 'Pump 'em up, plastic coat their lives' motivational meeting where they were told to think positive thoughts. They took lessons in affirming their future would be great. They believe their next trade will be a winner.
    Not me! I believe at the bottom of my core it will be a loser. I ask you this question - who will have their stops in and take right action, me or the fellow pumped up on an irrational belief he's figured out the market? Who will plunge, the positive affirmer or me?
    If you have not figured that one out - I'll tell you; I will succeed simply because I am under no delusion that I will win. Accordingly, my action will be that of an impeccable warrior. I will protect myself in all fashion, at all times - I will not become run away with hope and unreality.
  9. Your fortune will come from your focus - focus on one market or one technique.
    A jack of all trades will never become a winning tradee. Why? Because a trader must zero in on the markets, paying attention to the details of trading without allowing his emotions to intervene.
    A moment of distraction is costly in this business. Lack of attention may mean you don't take the trade you should, or neglect a trade that leads to great cost.
    Focus, to me, means not only focusing on the task at hand but also narrowing your scope of trading to either one or two markets or to the specific approach of a trading technique.
    Have you ever tried juggling? It's pretty hard to learn to keep three balls in the area at one time. Most people can learn to watch those 'details' after about 3 hours or practice. Add one ball, one more detail to the mess, and few, very few, people can make it as a juggler. It's precisely that difficult to keep your eyes on just one more 'chunk' of data.
    Looks at the great athletes - they focus on one sport. Artists work on one primary business, musicians don't sing country western and Opera and become stars. The better your focus, in whatever you do, the greater your success will become.
  10. When in doubt, or all else fails - go back to Rule One.
Source: http://www.ireallytrade.com/freetradingtools.htm

Monday, 26 April 2010

Stock Market Tips From The Pros

Below are some stock market tips that can be applied to forex trading and or day trading.  



Do you have sufficient capital?

The worst mistake that any trader could make is to trade with insufficient capital.  Always trade with money you can afford to loose.




Remember...  We All Have Losses

Another important quality that the market masters emphasise is the ability to accept losses and to take them promptly. Perhaps the single greatest downfall of all traders is the inability to take a loss when it should be taken. None of us like loosing, but its a fact and it happens!

DO NOT overtrade

Too many traders feel that they must trade every day. Such traders are addicted to trading. The fact is that some days offer few if any trading opportunities. The trader who wishes to preserve capital and avoid losses should understand that trading is not an everyday event.

Always Be Persistent

This is perhaps the single most important quality a trader can have. Trading requires the ability to continue trading even when results have not been good. Due to the nature of markets and trading systems, good times frequently follow bad times, and bad times frequently follow good times. 

Specialise in an instrument

Successful trading is a time-consuming undertaking that requires close attention. Which is why many market masters specialise in certain markets. In most cases, those trading forex would specialise in a particular currency pair; i.e. GBP USD, EUR USD etc.





Trading News

Do not be a follower of the news; rather 'fade' the news. Use the news to exit positions that you probably established before the news became public knowledge.

Stick to your goals...

Above all, remember that as a trader you have one major goal: to make money. To do so, you must be particularly aware of your net profits at all times.



"...Great traders are created, not born. Those who lack discipline, persistence and self-confidence lose the never-ending challenge of trading profits. But those who survive the battle by using the tools used by the masters enjoy the fruits of consistent success."

Tuesday, 13 April 2010

Forex Backtesting

Forex Backtesting - Beware Of Backtesting!

What is backtesting?


Backtesting is essentially the testing of a trading technique employing historical market prices, to see how top notch that system can be. This testing is usually done providing computer program that runs the trading system within a range of time in the past.


Why should you beware of backtesting?

Many new traders think that good backtesting results will guarantee similar results in the future. This is a big mistake because a system that has worked in the past may not necessarily work in the future. This is because the Forex market is always changing and evolving. The Forex market today can be very different from the market last year. The past does not equal the future... if it did, we'd all be millionaires by now!
What about trading systems with good backtesting results?

Because everyone knows what has happened in the past, it's easy for anyone to create a trading system that can be very profitable during that time (in the past). But remember: we're not trading in the past; we're trading in expectation of the future. Trading systems with good backtesting results may very well fail miserably in the future.


But this fact has not stopped unscrupulous people from selling Forex trading systems based on "excellent" backtesting results. They use impressive hypothetical (i.e. backtested) results as a sales tool. Unfortunately, many traders purchase these systems only to have them fail miserably and causing them to lose thousands of dollars.

What can I do to protect myself?

When looking for a good trading system, ask the system developer whether the results are actual or hypothetical. Many people assume that hypothetical returns are actual returns, but that's just not the case.


Forex Backtesting


Now that you know it's easy to create a system based on backtesting (i.e. hypothetical) results, you'll hopefully be more skeptical about trading systems with little or no actual trading results.

Article Source: http://www.articlesbase.com/ - Forex Backtesting - Beware Of Backtesting!

Thursday, 1 April 2010

Make a killing trading forex

Making A Killing With Forex Day Trading

Forex is an open market for trading foreign exchange where money itself is bought and sold. 'Forex day trading' is in general referred to as simply the normal forex trading. Very less difference can be seen. In general cases a day trader is a person who makes several trades in a day, buying and selling a number of currencies. They are people who try to increase there profits by taking advantage of the small increase in the currency values. A forex day trade is similar to the stock market trades except that in the forex day trade traders trade currencies and not stocks. The major advantage of a forex market over stock market is that instead of traders investing and waiting for many years for there stock values to increase, here they just see there currency values increasing and decreasing over time. This allows them to make several trades within a day.

Forex day trading allows a trader to open an account for themselves for as less as 250$. The amount that is needed to open an account varies from one company to company. There are several agencies that have brokers mediating a firm or an individual to the market. Brokers are people who educate individuals and firms to work there way through the market. The work of a broker is to help traders to get through the market without suffering much loss. Certain forex agencies also provide traders with forex software's. This software's show's the ups and down's of the currency values in the form of graphs, chart diagrams and data flow diagrams. They are very efficient in bringing out the current statistics of the currencies. In a forex day trade currencies are often traded in fixed pairs, the main currencies traded being dollars, pounds, euros and yen. These are normally traded against dollars.

Only after the internet forex trading becoming so popular, was there an opportunity for even commoners to trade. Until then only co-operate firms and large financial institutions was able to trade in the forex market. Forex now has become so simple that certain traders have taken it as a hobby. With the help of the vast number of software's available they are able to predict the changes in the market and make alterations in there trade accordingly. The forex day trading is similar to what is called as the future's market. The advantage here is that the liquidity that is offered here is higher and the risk factor is lower due to the lesser investments. Forex can be a very serious carrier option for those who can invest high amounts and can play the market well. The profits that can be obtained depend on an individual's skill and the experience that they have obtained by being in the market.

Open a FREE trading account here...



Article Source: http://www.articlesbase.com/ - Making A Killing With Forex Day Trading

Wednesday, 24 March 2010

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Monday, 22 March 2010

Dollar extends gains

Dollar extends gains

Posted using ShareThis

Stocks poised for early selloff

Stocks poised for early selloff

Posted using ShareThis

Foreign banks ready for U.S. invasion

Foreign banks ready for U.S. invasion

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Greed and revenge when trading forex

GREED

Most traders in the forex market try to make a zillion dollars on every trade.  They're greedy. This leads them to stay in a good trade, hoping to get more money out of it.  This can lead to disaster — the trade can move
against them and they get creamed. This happens all the time, and it still happens to me from time to
time. It's the single greatest threat in trading. But you can already understand why that's probably
true. But how do you overcome greed when trading?

REVENGE

This is the other big one. A lot of traders flush some pips down the toilet and then want to strike back. So they double their last order and go for broke. It’s like, well … it’s like reaching down into your toilet. That’s gross. And it does not make you any richer.

The impulse to get revenge is natural, and I still deal with this emotion often.  Do not underestimate this emotion. Many traders have not only reached into the toilet of revenge, but have dived into it head-first. Remember: the market is not your friend. The market is so much more powerful than you are. You cannot “get back at” the
market. Trading when angry or vengeful will be a total disaster. If you take a big loss, then stop, take a deep breath, and talk to a mentor or your mirror, or your favorite stuffed animal. Re-read the charts. 

Take a break. Chew on your toe if you have to. Even if you think you see the best opportunity in the
world after you get blasted – make sure you take a deep breath and pause before you do anything.

Source: The Currency Trader’s Handbook by Rob Booker

Trading Diary

Do You Keep A Trading Diary?

One of the first things my trading Mentor taught me was “winners keep score.” Since early in my trading career, I have kept a diary of the daily trades I initiate. There was a time when I thought that diaries were for bookworm-ish men and teenage girls. However, one of the most effective learning tools in my trading arsenal is my extensive trading diary.

Most futures brokerages have a method that will allow you to download your trades every day. Usually, this download comes in a spreadsheet format and is compatible with Excel. Of course, you'll need to check with your broker to determine the methodology your particular brokerage uses. Along with a daily accounting of the trades I'd make I also include a copy of the chart I traded on that particular day. Further, I may make notes about the trading activity that occurred that day. I often note the volume, volatility and in any anomalies that may occur throughout the course of the day.

Why go to all this trouble?

In my trading, I have found my trading diary to be one of the most useful tools for me to improve my trading technique. I generally wait about three months, or until I've forgotten that individual day, to revisit my trades and evaluate both good and poor trading technique. I am often amazed, and sometimes embarrassed, at the trades I initiate. However, reviewing your trading diary allows you to dissect and analyze the trades you made and hopefully learn from your mistakes and reinforce the trades that were executed properly.

The point of keeping a trading diary is to remind me that I've must remain a student of trading at all times. Regardless of whether I've traded 25 years, or 25 months, or 25 minutes it is important to keep the student mentality. In my opinion, this is where many traders fall down. Learning to trade is an ongoing process, and the market has many moods and unique price action. Sometimes it can be months or years before similar situations arise, and it's handy and useful to note these anomalies so that you might be better prepared the next time they occur.

Even more important is to review the charts from past trading days. By looking at the trades and the chart together it is like looking at a chart from yesterday and analyzing the moves you made both, good and bad. This repetitive diary review keeps me in the learning mode and allows me to continue my own personal growth as a futures trader.

As I said, I use an Excel spreadsheet and make notes in the individual daily cells for my trading diary. On the other hand, there are an infinite number of ways to keep the trading diary. You might use Word, or Open Office, or any program that will allow you to keep a record of your activity. It doesn't need to be fancy, it only needs to make sense to you. There are also a number of commercial trading diaries on the market which are very detailed and inclusive. For me though, Excel works just fine. Your choice of recording your trading activity is strictly a personal one, but make sure you keep a diary of some form.

How do I analyze my diary? I would like to think that I use specific criterion for selecting my trades. When I review my trading diary, I can cross check my trade entries to see if my trade selection met the criteria I have established. One of the traders worst enemies is trading on a motion or intuition. So I like to analyze my losing trades and determine which part of my criteria, if any, I violated. As you can see, the psychological aspect of trading is an important component to recheck. I try to identify those trades where emotion was an important component of my investment decision and note the specific chart formation that led me to believe I was entering a profitable trade, when I was not. I have found the only way that I can consistently analyze my past trading activities is through my trading diary. And it is through my past mistakes that I can avoid making similar unwise decisions.

In summary, I encourage you to keep the trading diary and record as much information about your daily trading as possible. It's also important to get into the habit of entering information in your diary every day. Keeping a trading diary helps you, as a trader, state firmly entrenched in the learning mode, as it relates to trading. Reviewing your past trades and the chart formations that cause you to initiate those trades is a superior method to improve your trading technique and trading self-discipline.

Get your FREE forex trading diary template here: http://yourtradingdiary.blogspot.com/2010/02/forex-trading-diary.html


Article Source: http://www.articlesbase.com/ - Do You Keep A Trading Diary?

Wednesday, 17 March 2010

What Is Finanzas Forex?

Finanzas De - the Rise of Forex Trading in Colombia

Finanzas de forex is an opportunity created for investors in the Republic of Panama. Created by a group of financial professionals and experts in the currency trading market, finanzas de forex fascilitates to the general public of the Republic of Panama.

The goal is to help the investors gain access to the Forex market, without having to invest huge sums of money. Itsprimarily a team of local Panama experts teaming up with other well known , global inevestors, in an attempt to spread forex trading to all parts of the globe.

The elements that the Finanzas forex team has put together are:
  • Product
  • Specialized Technicians
  • Earnings Plan
  • Optimum moment
Finanzas forex is basically an opportunity for a group of people to invest as a whole, with the purpose of generating high benefits.

The capital is invested into a platform from a european broker firm, which is where the operations of buying and selling will take place. Using forex, because of its size and capabilities, creates the best possible conditions for construction of network businesses. Its the combined capital, mixed with the lower investments of each investor that creates this unique opportunity. Giving the Republic of Panama investors their chance to get involved with Forex has opened many doors to expert financial entrepreneurs.

Quickly growing into a major , capital driven venture, finanzas forex is soon to be the largest investment group of its kind. Many have anticipated the arrival of Finanzas de for quite some time. The begginning of the program is set up in many different languages for the vast array of exposure that goes into such a company.

The goal of Finanzas forex is to create a safe, durable business , that lasts for years to come.Leaving nothing to chance the committee that makes the groups financial decisions has hired the very best Forex investors from all over the world. Gaining the trust of the small time investors has really been the trademark of the finanzas de forex trade group. They are committed to taking this company to higher levels, and they vow to safeguard invested money with a long term investment plan. Hoping to gain little by little without the huge risks that sometimes have undercut investors in the past.

Article Source: http://www.articlesbase.com/ - Finanzas De- the Rise of Forex Trading in Colombia

Three Reasons to Trade the Foreign Exchange Market

The Foreign Exchange Market offer many opportunities for any individual to make some money trading currencies; in this article I will write about three advantages in the Forex market.

Forex Trading can be started by anyone with a laptop and high speed Internet, very simple and convenient. There are several Forex brokers online that offer real time trading practice and many other resources to get started. Currency trading is a global market that involves billions of dollars everyday, movement in the market can happen in seconds and within that time life investments can be lost or fortunes can be made. It is very important to practice and have risk management in place in order to avoid loses. Most Forex brokers have demo accounts that let a potential Forex broker practice as much as possible to be confident when starting to trade with real money. Very important is to practice, practice, and practice.

The Forex market is the most liquid in the world. It involves about three trillion dollars everyday, so that means there is always movement within a short time. If you stick to a major currency there is rarely any waiting and if you apply risk management and have a strategy in place then winnings can pile up and fortunes can be made.

The Forex Market is open 24 hours per day from Sunday night until Friday night which gives a lot of room to trade currencies for the early riser as well as the late sleepers. There is always a market open around the world during this timeframe. It could be the US market, the Tokyo market, the London Market so there is always the opportunity to trade currencies while everyone is asleep or everyone goes about their daily routine.
These were only a few reasons to trade in the Forex market, there are many more. The Forex market is increasingly becoming popular and it is the right time to get involved in the biggest financial market in the world.


Article Source: http://www.articlesbase.com/ - Three Reasons to Trade in the Foreign Exchange Market

Thursday, 11 March 2010

Forex Statistics

Understanding Forex Statistics

Once you become somewhat familiar with how the forex market works, and you understand to a point what is involved in trading on the Foreign Exchange Market, you would want to start to gauge market trends in order to profit from your business ventures on the open market.

The name of the game is statistics, and the first rule is that you must be aware there is no such thing as a sure thing on the forex market. While you can never be 100% sure at any given time of the next move that will be made on the market as a whole, being able to read statistics and interpret them will place you ahead of the pack in regards to "guessing" what will happen next.

Forex trading is a lot like gambling. If you can keep track of the cards that have already been played, you are more informed, statistically, regarding what is likely to be dealt next, meaning you can place a bet with greater insight than someone who has no clue what has already been played. With the forex market, if you have information as to what has already occurred over the past few days, months, or even years, you are again placed in a better position to more logically conclude what will happen next. You simply learn the pattern and follow it to the end, reaping the financial rewards.

Charts And Chartists

Wait, did you think you were going to have to research and map out the market's past all by yourself? Of course not! There are people who get paid to do that sort of work. They monitor the market hourly, daily, weekly, monthly, and yearly so that they can provide big-time traders with the same knowledge mentioned before. The more a trading company knows about the market, the more money they can make.

The best part of this is that you have access to the same information as these VIP clients. Chartists, who are essentially market analysts that publish their findings in easy to read charts, produce what is referred to as a candlestick charts. These charts are basically a combination of a line graph and a bar graph that show the trend of various stocks, indexes, or other interests over a specified period of time. Therefore, you can easily determine if the currency is on an uptrend or if it is taking a downturn, when the last major change occurred, and how long it is predicted that the currency pair will continue on the current path.

If your broker does not supply you with these charts, then you should easily be able to draw them yourself with the modern day charting software or trading platform that you get from your broker. These software platforms can draw most charts for you by entering a couple of parameters and viewing the result.

It is recommended however that you learn at least the basics of charting and statistics before you start trading live.


Article Source: http://www.articlesbase.com/ - Understanding Forex Statistics

Monday, 8 March 2010

The Best Hours to Trade Forex

What Are The Best Hours to Trade Forex??

Forex trading has become extremely popular with small investors and it is now an easy market to enter with relatively small investment capital. It is also the world's largest and most liquid financial market with trading operating around the clock.

The market offers the opportunity for many small investors to literally quit their day job and make a very comfortable living working from home over the Internet and has indeed made many small traders very rich indeed. However, like most things in life, it is not without its downside and trying to trade without knowing exactly what you are doing is a recipe for disaster.

One question which many novice traders ask is "when is the best time to trade?"

The forex market is a very volatile market and prices can move up and down very quickly and literally from minute to minute, so that every minute you are in the market is an important minute. Choosing just when to trade, as well as having a variety of safeguards in place for every trade, is thus an important consideration. Remember though that you can enter and exit the market as many times as you like during the course of a day and so we are not talking here simply about choosing your working day in the same way that you would choose your hours for a regular day job. You can, for example, enter the market by opening a trade at 10:00 am and exit the market by closing that trade at 10:10 am. You might then decide to stay out of the market for a while and start trading again at 1:25 pm by opening your next position.

There is no 'home' for the forex market and trading takes place across the globe, although there are a number of significant trading centers in each of the three main trading regions of Australasia, Europe and North America. For example, within Europe trading takes place in several cities including London, Frankfurt, Paris and Zurich.

In theory the market is not in fact open 24 hours a day and each trading center will have its own set operating hours. Trading for example starts in Sydney and is followed by trading in Tokyo, London and New York. Because of global time differences however you will find that there is a trading center somewhere in the world which is open at any time of the day or night, seven days a week, and since traders have access to all of these trading centers you can effectively trade around the clock.

As an example, the time is just coming up to eleven o'clock on a Friday morning in Thailand as I write this article, so where can I trade at the moment. Well, the markets in Europe and North America are currently closed, but I could trade if I wished to do so through Sydney or Tokyo. However, if I decide to spend the afternoon on the beach (which is entirely possible) and then to trade later in the day then the markets here in the Far East would be closed but I could trade first through London or Paris and later through New York.

Now this is all very well but the question is not really when can you trade, but when is the best time to trade?

Trading volume is high through the day simply because of the sheer size of the market but this volume will peak whenever the trading hours of two or more of the three main trading areas overlap. This in fact happens at two time periods between 2 am EST and 4 am EST when the Australasian and European markets are operating at the same time and between 8 am EST and 12 pm EST when the European markets and North American markets are both open at the same time.

So, unless your trading strategy involves specific currency pairs being traded in particular markets, the times above are those times when you will see the greatest number of possible trades and thus the times which many traders find to be the most profitable.

Article Source: http://www.articlesbase.com/ - The Best Hours to Trade Forex

Wednesday, 24 February 2010

Forex Trading VS Options

Discover The Difference...

Forex Trading, also known as FX Trading or by many as the Foreign Currency Exchange, is a financial market where a person can trade national currencies in order to try and make a profit. Perhaps one feels the U.S. Dollar will get stronger compared to the British Pound or the Euro. A strategy can be developed to affect this trade and if the research is correct, a good profit can be made.

Options Trading allows you to buy or sell options on large amounts of stock, futures etc. that you feel will either go up or down in price over a certain period of time. As with Forex Trading, you can leverage your buying power to control more stock or futures for instance, than you could have normally. However, there are differences between Forex and Options Trading. Many of the differences are described below.

24 Hour Trading:

An advantage you have with the Forex Currency Trading System (Forex) as compared to Options trading is your ability to trade 24 hours a day, five days a week if you wish. The Forex Market is open longer than any other market. If your goal is to make double digit gains in a market, it is great to have unlimited time each week to make those trades. Whenever some big event happens around the world, you can be one of the first to take advantage of the situation with Forex Trading. You won't have to wait for a market to open in the morning like you would if you were trading Options. You can trade from your computer instantaneously, all hours of the day and night.

Rapid Trade Execution:

When you use the Forex Currency Trading System, you receive immediate trade executions. There is no delay like there can be in Options or for that matter other markets as well. And your order gets filled at the best possible price instead of guessing which price your order might get filled. Your order certainly won't "slip" like it can with Options. In Forex Trading, there is a lot more liquidity to help with "slippage" than there is in Options Trading.

Liquidity:

Forex Trading has the advantage of being more liquid than any other market, including Options Trading. With the average daily volume in the Forex Market reaching close to 2 Trillion, there is no comparison. The liquidity in Foreign Currency Trading (Forex) far surpasses that in the Options Market. This means when it comes time to trade, Forex Trades will be filled much easier than Options trades will. This speed means more potential profit. Couple this with instantaneous trade execution in Forex Trading, and you have the ability to make a lot of trades quickly.

No Commissions:

Forex or FX Trading is Commission Free because it is an inter-bank market which matches buyers with sellers in an instant. There are no middleman brokerage fees as with other markets. There is a spread between the bid and ask price and this is where Forex trading firms make some of their profit. This means you can save money when you trade Forex compared to Options trading where there are commissions since you would be working with a brokerage firm.

Greater Leverage:

Online Forex Trading can give you much greater leverage than playing Options. However, with Options, you can also manage putt and call options in a way to greatly increase your leverage. Leverage can be very important when you know what a currency is going to do. You can achieve 200:1 or greater in Forex Trades compared to less typically in Options, but it can be close. This means with Forex, there can be substantially more potential profit if you make the right move.

Limited Risk is Guaranteed:

Since Forex Traders must have position limits, the risk is limited since the online capabilities of the Forex Trading system automatically initiate a margin call when the margin amount is greater than the value of the account in dollars. This keeps a Forex Trader from losing too much if their position goes the other way. It is a good safety feature that is not always available in other financial markets. And the Forex is different than Options in that with Options, you only have a certain period of time to trade before the options expire.

When considering the differences between Forex Trading and Options, just keep in mind your preferred trading style and the type of risk you are willing to take. There are definite advantages to Forex or FX Trading that may allow you to profit greatly if you develop a good system and stay within your trading limits. If you are ready to go, then begin investigating a good Forex firm with whom to open a Foreign Exchange Trading Account.


Article Source: http://www.articlesbase.com/ - Forex Trading Vs. Options - Discover The Difference

Wednesday, 17 February 2010

How to trade the FTSE 100

Learn How to trade the FTSE 100 UK...

The FTSE 100 is an Index made up of the 100 largest U.K companies by market capitalization listed on the London Stock Exchange.  Market capitalization measures the size of the company and is calculated by multiplying the number of shares in issue by the share price.  The FTSE was first calculated in 1984 with a base value of 1000 and now represents about 81% of the value of all stocks listed on the London Stock Exchange making it an accurate barometer of U.K business prosperity.

What makes it move?

Company Earnings. 

Traders monitor the earning of companies in the FTSE which are normally released on a quarterly basis. There will be a consensus among analysts as to what that number will be and if the actual number is better than the analysts  expected then the price should rise and if it is worse then the price should fall. The earnings for companies that make up a bigger percentage of the FTSE (i.e. the top 10 by market capitalisation) will have a bigger effect on the movement of the FTSE and should be watched closely.

NEWS

All day long traders are glued to their news screens watching for stories that may impact the economy and the markets.

The news that will move the FTSE can vary from company specific news to global news stories and traders are looking for any news that will cause investors to enter or exit the market.
It is essential to have access to live news as often financial markets will have already moved by the time most people read the story in the paper. Through Getdealings twitter market commentary we bring you the live news stories and rumours the professionals are discussing right now.

Interest Rates.


FTSE traders will keep their eyes open for any potential change in Interest rates as this will have an effect on stock market valuations. The general rule is that lower interest rates are good news for the FTSE as not only do the companies in the FTSE have lower debt payments( making them potentially more profitable) the returns the FTSE could offer look more attractive compared to the lower interest rate you will get from bonds

Article Source: http://www.articlesbase.com/ - How to trade the FTSE

Monday, 15 February 2010

Advantages using automated forex trading systems

10 Advantages to Automated Forex Trading Systems

Becoming a forex trader is one of the ways wherein you can earn the profits that will lead you to the financial freedom that you have always been dreaming of. At the same time, forex trading is also very risky, especially if you have not had the right training.  It is a must that before you start trading the forex market, you take time to learn the basics. You also need to employ a careful understanding of its mechanism. By getting yourself a forex robot trading system that will work even without you manning it, you increase your chances of success. Automated forex trading systems also offer important tips and methods that you may use as you deal with the most changing, unpredictable, and unpleasant market conditions.

Forex robots are computer programs that automatically scan the forex market and automatically make trades based on programmed algorithms.  These trades are made with little or no intervention by a human operator.  These robots are numerous and they are taking the market by storm. But what is really in these products that make them worth the buy? Forget about the burden of making complex computations because the forex robot will surely take charge of all the mathematical concerns you have to face. You can trust it to do the calculations up to the last drop of the risk evaluations. Need you know more? Of course! Read on below for the 10 benefits to having automated forex trading software.

1. You will pay no commissions.  People who take part in the equity market will tell you point blank that you have to secure brokers and pay them with their commissions. However, for forex trading software, you are able to keep all your profits to yourself. You need not pay for any brokerage or clearing fees. You only pay the bid/ask spread.

2. There are no middlemen.  This kind of business eliminates the need for any middleman. This means that with the use of the forex robot, you are able to deal with the market maker in an online electronic exchange method.

3. It promotes only a small transaction cost.  With this business, you are only to pay the “ask or bid” spread. Now in terms of the trading that transpires in the forex market, there are two faintly different exchange rates assigned for every currency pair.  That is, the difference in the price between the buy price and the sell price. This is how the broker makes his money because he or she often quotes two different rates for every currency. The broker then earns his profit based on the difference he places in the exchange rates.

4. Better liquidity.  Forex trading means having the transactions immediately executed and with a forex robot in use, the more promising the business can be! After all, it is a market that is flooded with buyers and sellers who do business 24 hours a day, 5 days a week..

5. It utilizes higher leverage. Because of the large amount of leverage granted to forex traders it does not take a lot of capital to make a substantial amount of profit.  Of course one must be cautious using high leverage because the losses can be magnified as well..

6. The market operates 24/5. Trading is done all over the world and the market is open for 24 hours in a day. Even though some of the major regions are closed for a particular business day, the others are open to do business. Through the help of the forex robot, you can continue trading currency pairs even while you sleep.

7. You can access it online. One of the most attractive features of trading forex...you can do it from home! You don’t need to leave the confines of your home because you can access it by using the Internet.

8. You get to profit from both the bull and the bear market. The bull market refers to the market that goes up while the bear market is the one that goes down. With the forex robot, you can earn both ways.

9. It is user-friendly. Forex robotare generally easy to install, access, and use. This means that you don’t have to go through the agony of operating it.

10. There is no need to supervise it. The forex robot doesn’t need human interference. Just keep it updated at least on a regular basis so that it can deliver its best performance. Overall, automated forex trading software is a must in this line of business. Get the hang of it and you will surely succeed and experience that superb financial freedom!


Article Source: http://www.articlesbase.com/ - 10 Advantages to Automated Forex Trading Software

Tuesday, 9 February 2010

Learn How To Trade Currencies


Interested In Learning How To Trade Currencies?

Are you interested in learning how to trade currencies? Especially given the global economic slump, there are ever increasing numbers of people trying to find ways to insulate themselves from the vagaries of the economy by finding new sources of revenue. This makes learning how to trade currencies an especially attractive option. The foreign currency exchange market is an incredibly large and liquid market and trades can be conducted online, making getting involved easy for individual investors. All it takes is an eye for detail and the ability to watch the movements of the market.

When you are thinking about how to trade currencies, you'll discover that you are far from the only person doing it. Some of the people out there who are trading currencies are doing it with something akin to genius, while other people barely know what they are doing.

There are all sorts of people investing in this form of money making, and you'll find that the more information that you can put together, the better. Make sure that you know what information you are going to use and what kind of trading you are looking to doing. What currency pair are you going with, and what can you do when you are looking at a 24 hour market that never sleeps? What tools are going to be the most handy, and which ones are you going to be able to get right away.

A big part of learning how to trade currencies is examining how the different major world currencies have been changing in terms of their value relative to one another. You won't get very far simply trading the same pair of currencies over and over again. Certainly the US dollar is an important currency, but you'll also want to trade in the Euro, the Swiss Franc and other currencies.

All of the world's major currencies offer you opportunities to make profitable trades. You'll want to keep an eye on the market and keep in mind that economic instability can be a currency trader's best friend. Rapidly expanding or contracting markets create opportunities for large profits - of course, there is also the possibility of losses, so traders are well advised to know all the facts before getting involved on a large scale.

There is a wealth of information available which can help you get started in making profitable trades on the Forex market. While the guides aimed specifically at Forex trading are a good place to get started, you'll certainly want to make a habit of following world news, especially business news of you want to be a well informed trader.

A well informed currency trader is a successful currency trader, so keep apprised of the latest political and economic news from all over the world. Cyclical behavior is the norm in economies of all scales - so if you can watch these recurring trends and spot when a currency is on its way up or down in value, you can make some very lucrative trades.

If you're interested in investing in the currency exchange market, remember to get as much information as you possibly can before you get started. Knowing how the markets work is key to being able to identify the trends which govern the fluctuating values of different currencies and enabling you to profit from the ups and downs of the world economy.


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