It's a fact that forex trading became a highly preferable investment method in the last decade. Combined with the internet as a global 24/7 network forex is reachable to everyone. I'll not give you about the basic explanation of forex trading in this article. I'm sure that i don't have to tell what forex trading is. People which familiar or have an interest in an investment know forex already. Don't they?
Forex trading is basically just an investment
As any other investment, there are always benefits and risks beyond forex trading. Many people/organization, especially forex brokers, its affiliate and those who earn their income by providing some forex related services says that forex trading have so much advantages compared to other investments; Forex is easy, with its non-stop 24 hours market, its wide range adjustable leverage, its automated trading platform, its offered better opportunity for income resource, and many more -- you name it as much as you want to...
Blinded by its 'beautiful dream imagination', many small/personal traders, especially for the new ones forgot that forex trading is basically still an investment program. Traders should never have a thought that forex trading is an income resource.
Common Beginner Traders Scenario
Beginner forex traders are usually follow the trend of forex trading without preparing and providing them self with an adequate understanding about what's inside forex trading. Their common scenarios are:
1. Know about forex trading
2. Have an interest in forex trading
3. Looking for an easy and profitable forex services
(Usually by looking for some services with less margin, high leverage, automated trading platform, and less risk? - which is too good to be true)
4. Start gambling with their trades
5. Unable to achieve profits as what their imagination
6. Repeating scenarios 3, 4 and 5
7. Repeating scenarios 3, 4 and 5 again... and again...
8. Realizing that they are loosing too much or that their imagination along these days/weeks/months is wrong (i doubt that it would reach years)
9. Give up and quit their trading for good.
Where did they do wrong in above scenario? Is that wrong to always searching for a better service to back up our trade? In my point of view, there are no mistakes in that scenario at all. But it's just incomplete, and that's the most dangerous mistakes made by most beginner traders.
How to Overcome Traders Mistakes and Begin to Make Some Profits in Forex
The facts are, there are just 5% of forex traders which successes with their trading. To become as they are, we should insert step 2.5 in scenario above. This step will simplify above scenarios by eliminating the fourth and eighth and changing ninth step became TRADERS GOAL ACHIEVED.
2.5 Preparing yourself with a solid basic knowledge of forex trading
- Know about the fundamental of forex trading
- Learn about what and how forex market really is
- Train yourself to getting familiar with the technical analysis in forex trading
- Learn how psychological factor affecting in the trading and define our best trading personality
- Be aware in our risk and money management
- Develop your most effective unique trading system based on your knowledge.
We should keep in mind deeply that forex trading is an investment. There is no way that we could be a master in some investment that we've just dive in to for days or weeks. We have to do it by the right way, and don't forget to eliminate your rush in the goal achievement. You will surely find your best trading system that suits you, I guarantee that. But it would cost you some time for several trial and error system testing while you developing your experience in forex trading.
By using an analogical approach as a computer, forex broker is the application programs and operating system. We do need them to make sure that all we need its done, served and executed properly. But, how good the computerization execution speed and its performance are depends on the basic computer specification, which analogically as you.
How to Get Yourself Completely Forex Prepared
Learning and education materials are world widely spreading around us.
1. The first and the most value added a resource of forex trading is through book reading. Forex and investing categorized books are availabe in countless numbers in many bookstore and online bookstore. You should pick some of them to educate yourself with valuable knowledge of the theory beyond forex trading.
2. Try to get into some traders forum to know more about forex trading and the markets. Forex forum also a place to give you an information for forecasting the crowd psychological factor to forecast the currency price movement by examining on how do other traders react in some financial forex related world events.
3. Get a forex course. An expert forex traders or forex broker are offering this kind of forex educational method. The course are usually about the basic knowledge of forex, technical analysis technique usage and its tools, an expert trading advice or maybe in how to develop a particular tested forex trading system which profitable (if done right and backed by your forex basic knowledge).
4. Forex magazine subscription. Some forex magazines are published weekly, monthly and others might be yearly. These materials usually give you information about the updated forex market behavior overview and analysis which can be use for the input of the fundamental analysis of your forex trading.
Octa is a private investor, an online writer and the owner of a forex trading blog [http://forexocta.blogspot.com]. She owns an online bookstore with a numerous collection of investment related books. Octa also a contributor in some finance categorized blogs.
Wednesday, April 18, 2012
Tuesday, April 17, 2012
Forex Secrets - Delusion No1 - Forex Currency Rate And Economic Factors Impact On Exchange Rate
The delusion conceptually propounds that intraweek and intraday FOREX currency quotes movement is governed by either improvement or by deterioration of the state's economic situation. But in reality, even in case the actual Forex news is superior to the estimated one, the FOREX quotes up/down movement is of 50/50 probability.
This statement is thoroughly important. Once the job of Forex trader is gambling on FOREX exchange rates differential (FOREX pairs up/down movement), the following is to be realized to obtain faultless profit:
FOREX pairs pricing mechanism (say at point X where you are completing the market analysis)
Factors imparting growth/decline to FOREX rates (up/down from point X).
Thus, having understood the FOREX rates factors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of whether to buy or to sell the given currency pair.
So, what are these factors?
FOREX student suggest unambiguous interpretation of factors responsible for the price formation and the fluctuations there of:
Forex rate constitutes a demand-supply balance for a given goods (currency).
Any violation of this balance, (for instance, in case where the estimated news is in disagreement with the issued official one), results in the FOREX rates reciprocation in chase of a new demand-supply balance. Poor demand brings about decline in a certain currency rate, with a high demand leading to the growth of the latter. The situation continues as long as the currency buy/sell demand comes to balance at another level or at another point.
Referring to the B. Williams ("Trading Chaos 2" Chapter 1 "The market is what you are thinking of it"):
Each world market is dedicated to distribute or share limited amount of something... among those desirous to obtain it most of all. The market affects it by way of finding out and identifying the exact price? Underlying the buyer'/sellers' power absolute equilibrium point.
The above point is readily established by stock, futures, bonds, FOREX and options markets, be it either via an open auction or by virtue of a computerized facility. Markets spot this point prior to any misbalance being detectable by you or by me or even by traders at the exchange floor.
With this scenario holding true - and it really does - we are in position to jump at certain simple yet important conclusions as regards the information being circulated through the market and enjoying doubtless acceptance".
Thomas Demark was more laconic in "Technical analysis - an emerging science":
"Price movement is governed by demand and supply. Should demand exceed supply, there's a price rally and if visa versa, there's a price decline. All economists do share these underlying principles".
Hence, the role of fundamental analysis for FOREX market is readily apparent.
In scholar fiction one will discover roughly the following explanation, persistently wandering from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country's economic fundamental data, viz. by tracking the factors reflective of the country's economy condition as below:
State economy condition dynamics indicators (GDP, trade & payments balance, current account, industrial production, etc. It is knowledge, that the higher the above indicators - the faster the economic and the currency price growth);
Stock indices, via average arithmetic index of the country's securities market condition and dynamics. E.g.: 0.3% daily DJI growth in the USA means that this certain day the shares of 30 leading US companies, being pictured by DJU, went 0.3% more expensive. By similarity, DAX30 is the major German index, incorporating the price of shares of the country's 30 leading companies.
The country's interest rate, since the higher the rate, the greater number of investors is eager to invest into the country's economy and hence into national currency strength.
Rate of inflation (the higher the rate, the quicker the National Bank will hike the interest rate). With this assumption, the CPI constitutes a key factor.
Money supply growth in domestic market, which fact brings about the inflation, leading to the interest rate hike.
The country's gold and currency reserve assets.
Variation dynamics correlation of: balances of payment, trade balance, state budget, gross domestic product (GDP), etc.
Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)
Construction statistics (construction spending, new home sales, housing under construction, building permits, etc.)
Labor statistics (unemployment rate, new jobs, etc.)
Society investigations (consumer confidence, consumer sentiment, purchase managers and service managers sentiment, etc.)
To be considered additionally are the country's political stability and tranquility (clearly, any political, natural and other cataclysms are sure to turn investors nervous making them withdraw the investments from the country, thus weakening its national currency). And with the currency being the national economy derivative, changes in economic data will inevitably result in the above currency rate movement.
Conclusions:
Progress in economy results in the currency exchange rate rally.
Decrease in economic indicators leads to the national currency rate decline.
To sum it up, critical economic and political news (whose calendar is issued in advance and is familiar to any trader) constitute a standing factor giving rise to misbalance and causing the currency rate fluctuations.
In anticipation of important economic and political news FOREX pair crawl to the rates as inspired by the estimates ("rumored trade"), whereas upon actual news there occurs a pulse motion of FOREX pairs in accordance with the scheme below;
Forex rate grows if actual news are better than the estimated one;
Forex rate declines if actual news are worse than the estimated one.
ARE YOU FAMILIAR WITH THESE ABC BASICS OF STUDYING FOREX?
Do you accept that one can earn money by way of using these basics, known to every trader?
Then why, having absorbed these economic axioms, 90% of Forex traders in the world are losers rather than winners.
Where is the delusion of the above ABC truth, nudging traders towards losses? Let us perform sort of point-by-point analysis.
The currency exchange FOREX market is a book-makers one. It is gambling on rates difference without direct money delivery to the exchange market, except for hedging of traders' funds by Forex brokers, via buy-sell difference especially during strong trends). Then, http://www.forexite.com reads: "Trading is performed without actual currencies supply, which fact cuts overheads and enables Forexite to go long and short on the currency" http://www.forexite.com/forexite_advantages/forex_advantages.html.
Comment: Have you ever met any book-makers;
- whose logics was coincident with that of THEIR clients (traders),
- whose stakes were being made in accordance with THEIR technical analysts forecasts, economic laws and common sense?
And what extent of doubt and skepticism should be attached to THEIR free "recommendations", "advice", "surveys" and "forecasts", laid out at THEIR sites through THEIR analysts?
As a regular result, over 90% of the world traders are still loosing their deposits at FOREX each time they follow Thomas Demark stereotype that "All the economists share these underlying principles".
Comment No.1. In as much as the above underlying principles are 90% contradictory to practice, it gives rise to the following question. Might these "underlying principles, shared by all economists including Thomas Demark" have possibly turned into dogma, alien to life and practice?
Comment No.2. What should a trader lean on: practice or dogma even if supported by great names, provided that the trader is purported at earning money?
FOREX analysts issuing their daily bulky market reviews are not FOREX traders in the overwhelming majority (see detailed discussion below). And on bringing together pairs 1, 2 and 3 there appears certain regularity.
Please, think over A. Elder words, that: "FOREX rates and the fundamental analysis are tied together with a mile-long rope. The fundamental analysis is ultimately decisive. But anything is likely to happen prior to this eventuality". Another, yet no less renowned trader and analyst, Bill Williams underlines the same mental regularity of an experienced professional trader (level 3 of his trader's skill rating as per "Trading Chaos 2"): "On attaining level 3 you emerge as a self-provided pro trader. You are always familiar with the market's basic, usually invisible structure. You no longer need to refer to others' opinions. You needn't read "Wall Street Journal", watch market-oriented TV programs, and subscribe to information bulletins, waste money on information channels".
Comment: Logically, there is a counter-implication, that if You are eager to become a successful trader, You are to restrict the influence of various surveys and recommendations on yourself even in case they originate from the world famous "Wall Street Journal", to say nothing of crude gurus in analyst skins who use to know ahead of time where currencies will go.
Forex news is a scheduled issue of fundamental data, which as a rule impairs FOREX rates a sharp pulse of motion. But then, why the currency rates movement vector is only 50% coincident with the ABC truism logics as to where the rate should rush in case of actual news being much better or worse than the estimate. And, please, make an attempt to answer the following question, stirring for every trader: why with the new being worse than expected (say, on US economy), the USD currency would initially fall by 40 pips (news work-off) but in 5 to 10 minutes it would swivel back and would display a 200-point rally, with no account to either the issued news or to common sense.
Below are some examples:
Fig. 1. GBPUSD chart as of April 1, 2005 after the news, positive for the GBP and negative for the US economy.
See Note below
In March the CIPS manufacturing index amounted to 52.0 (with the previous data revised from 51.8 to 51.6). Oil price in NYC has grown by USD 2.40 up to USD57.70 per bbl (new record of the latest 21 years). Non-farm payrolls in the USA was minimum since last July (previous data revised towards lower values). There has been a decline in the Michigan sentiment index to 92.6 (median estimate was 92.9, with 92.9 previously).
All the US indices faced a fall down. DJI at NYSE has fallen by 99.46 pips (-0.95%) towards closing at 10404.30. NASDAQ declined by 14.42 pips (-0.72%) to 1984.81. S&P500 slipped by 7.67 pips (-0.65%) to 1172.92. 30-yr US Bonds yielded 4.729 (0.037 lower as compared to the previous close). By contrary, FTSE100 has grown by 19.60 pips (+0.40%) to 4914.00.
Now, the question is to certified economists: what will happen to the GBPUSD within one day or even several hours upon publication of these data? You are right, USD should not simply fall down, it should collapse. Powerfully, swiftly. Well, well...
And this time, the same question to experienced traders. By FOREX news headlines You might have guessed that the events are taking place at the Friday American session. Correct. Initially, anyway, the GBPUSD chart will go up by 100 pips (news wok-off), followed by a pullback. Then Forex chart starts a new rally.
It is now to be tracked whether the GBP will breach the latest rally high or not. If affirmative, it will rush up by approximately 160 pips (Elliott wave 1 was 100 pips, while EW 3 is 60% longer). But if the high is not breached? The GBP currency quote will in no way come to a standstill, moreover on Friday afternoon. Hence, - down, to the starting point! And, if breached, similar situation takes shape but the counting is performed in a "down" direction (EW1, being the same 100 pips plus 187 pips from 1.8826 to 1.8759 being EW 3).
The FOREX day trading tactics will be given scrutiny in a separate chapter. A still separate chapter will be dedicated to Friday trade at American session due to its inherent specifics and to strong seemingly inappropriate movement. The movement is, of course, appropriate. To say nothing of Friday. But it will be touched upon later.
Now, getting back to the currency chart. As apparent, the GBPUSD pair movement on Friday, April, 01, 2005 is in no way in conjunction with the US economy fundamental data. Each forex trader can provide from tens to hundreds of similar instances, where the news are of a certain vector, whereas, after a fraudulent rush along the news vector, a currency applies reverse thrust.
Thereafter, the next day, in daily currency surveys, certified economists are sure to explain all to us by way of inventing another undisguised nonsense, like: "in spite of certain data, traders decided that the currency has already worked-off this side". But! How could this occur on Apr, 01, 2005, provided that the currency has been staying flat in a narrow range in the course of the whole of the European session?
Otherwise, another explanation may emerge, that forex traders were expecting still more inferior news on the US economy... But! By how much more inferior, if according to DJ, the US non-farm payrolls MA was equivalent to 180K, with actual being +110K, estimate being +225K and prior being +243K? And in what manner do these economists count up world traders: by capita, by countries or by the funds, lost by those, who continued staying long in a holy belief in renowned academic scholars postulate of FOREX rates being tied up to countries' economy statistics.
I wonder if I'll ever chance to witness legal procedures to be instituted against any of those famous scholars, so that no one would dare claim that fundamental data trigger rate spikes.
The same pertains to economists, writing about the way, hundreds of thousands traders throughout the globe have conspired to conclude that it is time to reverse the trends with absolutely no grounds. Is it really feasible?
Such reading-matter is, but hammering a single question into one's head: is it lie or is it stupidity of those cooking daily reports for taking traders for a ride, fooling them up and keeping them from the truth, which might be of great avail to them in daily trading. Traders are not a decisive factor, thus rates movement is in no way dependent on their will. Practically in no way.
Wanna check? Negotiate with tens of traders of the trading floor and arrange for a simultaneous entry long on some exotic FOREX pair. In so doing, try to push up either the NZDHKD, or the NZDCAD, or the HKDCAD. No need? I think so. You'll certainly suffer failure with the above, to say nothing of the EUR, GBP, CHF.
Another example:
Fig.2. GBPUSD movement as of May 13, 2005.
See Note below
This is an M15 chart of the American session, where the USD pair has grown by over 100 pips from 1.8583 to 1.8481 against the news, negative for the US economy:
Most indices have dropped down: DJI at NYSE - by 49.36 pips (-0.48%) to close at 10140.12; S&P500 - by 5.31 pips (-0.46%) to 1154.05. NASDAQ has grown by 12.92 pips (+0.66%) to1976.80. 30yr US Bonds yielded 4.484 (0.047 drop from previous close)
There is a fall in Michigan sentiment index. In May UMich was 85.3 with med est 90.0 and prior 87.7. So it was worse than the estimate, reaching the low since March, 2003. The index decline was being observed for the fifth month.
The April US export price index was +0.6% with prior of +0.7%.
Below are other similar examples of that same day.
Fig. 3. EURUSD chart as of May 13, 2005.
See Note below
Hundreds of examples may be offered, where the Forex news vector is opposite to that of the currency movement. Practically, actual news may happen to be superior or inferior to the estimate. FOREX quotes up/down movement is also of 50/50 probability irrespective of the above.
Why does it happen and what is the way for a trader to pinpoint entries and exits? This is going to be discussed in ensuing chapters of this book.
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
This statement is thoroughly important. Once the job of Forex trader is gambling on FOREX exchange rates differential (FOREX pairs up/down movement), the following is to be realized to obtain faultless profit:
FOREX pairs pricing mechanism (say at point X where you are completing the market analysis)
Factors imparting growth/decline to FOREX rates (up/down from point X).
Thus, having understood the FOREX rates factors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of whether to buy or to sell the given currency pair.
So, what are these factors?
FOREX student suggest unambiguous interpretation of factors responsible for the price formation and the fluctuations there of:
Forex rate constitutes a demand-supply balance for a given goods (currency).
Any violation of this balance, (for instance, in case where the estimated news is in disagreement with the issued official one), results in the FOREX rates reciprocation in chase of a new demand-supply balance. Poor demand brings about decline in a certain currency rate, with a high demand leading to the growth of the latter. The situation continues as long as the currency buy/sell demand comes to balance at another level or at another point.
Referring to the B. Williams ("Trading Chaos 2" Chapter 1 "The market is what you are thinking of it"):
Each world market is dedicated to distribute or share limited amount of something... among those desirous to obtain it most of all. The market affects it by way of finding out and identifying the exact price? Underlying the buyer'/sellers' power absolute equilibrium point.
The above point is readily established by stock, futures, bonds, FOREX and options markets, be it either via an open auction or by virtue of a computerized facility. Markets spot this point prior to any misbalance being detectable by you or by me or even by traders at the exchange floor.
With this scenario holding true - and it really does - we are in position to jump at certain simple yet important conclusions as regards the information being circulated through the market and enjoying doubtless acceptance".
Thomas Demark was more laconic in "Technical analysis - an emerging science":
"Price movement is governed by demand and supply. Should demand exceed supply, there's a price rally and if visa versa, there's a price decline. All economists do share these underlying principles".
Hence, the role of fundamental analysis for FOREX market is readily apparent.
In scholar fiction one will discover roughly the following explanation, persistently wandering from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country's economic fundamental data, viz. by tracking the factors reflective of the country's economy condition as below:
State economy condition dynamics indicators (GDP, trade & payments balance, current account, industrial production, etc. It is knowledge, that the higher the above indicators - the faster the economic and the currency price growth);
Stock indices, via average arithmetic index of the country's securities market condition and dynamics. E.g.: 0.3% daily DJI growth in the USA means that this certain day the shares of 30 leading US companies, being pictured by DJU, went 0.3% more expensive. By similarity, DAX30 is the major German index, incorporating the price of shares of the country's 30 leading companies.
The country's interest rate, since the higher the rate, the greater number of investors is eager to invest into the country's economy and hence into national currency strength.
Rate of inflation (the higher the rate, the quicker the National Bank will hike the interest rate). With this assumption, the CPI constitutes a key factor.
Money supply growth in domestic market, which fact brings about the inflation, leading to the interest rate hike.
The country's gold and currency reserve assets.
Variation dynamics correlation of: balances of payment, trade balance, state budget, gross domestic product (GDP), etc.
Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)
Construction statistics (construction spending, new home sales, housing under construction, building permits, etc.)
Labor statistics (unemployment rate, new jobs, etc.)
Society investigations (consumer confidence, consumer sentiment, purchase managers and service managers sentiment, etc.)
To be considered additionally are the country's political stability and tranquility (clearly, any political, natural and other cataclysms are sure to turn investors nervous making them withdraw the investments from the country, thus weakening its national currency). And with the currency being the national economy derivative, changes in economic data will inevitably result in the above currency rate movement.
Conclusions:
Progress in economy results in the currency exchange rate rally.
Decrease in economic indicators leads to the national currency rate decline.
To sum it up, critical economic and political news (whose calendar is issued in advance and is familiar to any trader) constitute a standing factor giving rise to misbalance and causing the currency rate fluctuations.
In anticipation of important economic and political news FOREX pair crawl to the rates as inspired by the estimates ("rumored trade"), whereas upon actual news there occurs a pulse motion of FOREX pairs in accordance with the scheme below;
Forex rate grows if actual news are better than the estimated one;
Forex rate declines if actual news are worse than the estimated one.
ARE YOU FAMILIAR WITH THESE ABC BASICS OF STUDYING FOREX?
Do you accept that one can earn money by way of using these basics, known to every trader?
Then why, having absorbed these economic axioms, 90% of Forex traders in the world are losers rather than winners.
Where is the delusion of the above ABC truth, nudging traders towards losses? Let us perform sort of point-by-point analysis.
The currency exchange FOREX market is a book-makers one. It is gambling on rates difference without direct money delivery to the exchange market, except for hedging of traders' funds by Forex brokers, via buy-sell difference especially during strong trends). Then, http://www.forexite.com reads: "Trading is performed without actual currencies supply, which fact cuts overheads and enables Forexite to go long and short on the currency" http://www.forexite.com/forexite_advantages/forex_advantages.html.
Comment: Have you ever met any book-makers;
- whose logics was coincident with that of THEIR clients (traders),
- whose stakes were being made in accordance with THEIR technical analysts forecasts, economic laws and common sense?
And what extent of doubt and skepticism should be attached to THEIR free "recommendations", "advice", "surveys" and "forecasts", laid out at THEIR sites through THEIR analysts?
As a regular result, over 90% of the world traders are still loosing their deposits at FOREX each time they follow Thomas Demark stereotype that "All the economists share these underlying principles".
Comment No.1. In as much as the above underlying principles are 90% contradictory to practice, it gives rise to the following question. Might these "underlying principles, shared by all economists including Thomas Demark" have possibly turned into dogma, alien to life and practice?
Comment No.2. What should a trader lean on: practice or dogma even if supported by great names, provided that the trader is purported at earning money?
FOREX analysts issuing their daily bulky market reviews are not FOREX traders in the overwhelming majority (see detailed discussion below). And on bringing together pairs 1, 2 and 3 there appears certain regularity.
Please, think over A. Elder words, that: "FOREX rates and the fundamental analysis are tied together with a mile-long rope. The fundamental analysis is ultimately decisive. But anything is likely to happen prior to this eventuality". Another, yet no less renowned trader and analyst, Bill Williams underlines the same mental regularity of an experienced professional trader (level 3 of his trader's skill rating as per "Trading Chaos 2"): "On attaining level 3 you emerge as a self-provided pro trader. You are always familiar with the market's basic, usually invisible structure. You no longer need to refer to others' opinions. You needn't read "Wall Street Journal", watch market-oriented TV programs, and subscribe to information bulletins, waste money on information channels".
Comment: Logically, there is a counter-implication, that if You are eager to become a successful trader, You are to restrict the influence of various surveys and recommendations on yourself even in case they originate from the world famous "Wall Street Journal", to say nothing of crude gurus in analyst skins who use to know ahead of time where currencies will go.
Forex news is a scheduled issue of fundamental data, which as a rule impairs FOREX rates a sharp pulse of motion. But then, why the currency rates movement vector is only 50% coincident with the ABC truism logics as to where the rate should rush in case of actual news being much better or worse than the estimate. And, please, make an attempt to answer the following question, stirring for every trader: why with the new being worse than expected (say, on US economy), the USD currency would initially fall by 40 pips (news work-off) but in 5 to 10 minutes it would swivel back and would display a 200-point rally, with no account to either the issued news or to common sense.
Below are some examples:
Fig. 1. GBPUSD chart as of April 1, 2005 after the news, positive for the GBP and negative for the US economy.
See Note below
In March the CIPS manufacturing index amounted to 52.0 (with the previous data revised from 51.8 to 51.6). Oil price in NYC has grown by USD 2.40 up to USD57.70 per bbl (new record of the latest 21 years). Non-farm payrolls in the USA was minimum since last July (previous data revised towards lower values). There has been a decline in the Michigan sentiment index to 92.6 (median estimate was 92.9, with 92.9 previously).
All the US indices faced a fall down. DJI at NYSE has fallen by 99.46 pips (-0.95%) towards closing at 10404.30. NASDAQ declined by 14.42 pips (-0.72%) to 1984.81. S&P500 slipped by 7.67 pips (-0.65%) to 1172.92. 30-yr US Bonds yielded 4.729 (0.037 lower as compared to the previous close). By contrary, FTSE100 has grown by 19.60 pips (+0.40%) to 4914.00.
Now, the question is to certified economists: what will happen to the GBPUSD within one day or even several hours upon publication of these data? You are right, USD should not simply fall down, it should collapse. Powerfully, swiftly. Well, well...
And this time, the same question to experienced traders. By FOREX news headlines You might have guessed that the events are taking place at the Friday American session. Correct. Initially, anyway, the GBPUSD chart will go up by 100 pips (news wok-off), followed by a pullback. Then Forex chart starts a new rally.
It is now to be tracked whether the GBP will breach the latest rally high or not. If affirmative, it will rush up by approximately 160 pips (Elliott wave 1 was 100 pips, while EW 3 is 60% longer). But if the high is not breached? The GBP currency quote will in no way come to a standstill, moreover on Friday afternoon. Hence, - down, to the starting point! And, if breached, similar situation takes shape but the counting is performed in a "down" direction (EW1, being the same 100 pips plus 187 pips from 1.8826 to 1.8759 being EW 3).
The FOREX day trading tactics will be given scrutiny in a separate chapter. A still separate chapter will be dedicated to Friday trade at American session due to its inherent specifics and to strong seemingly inappropriate movement. The movement is, of course, appropriate. To say nothing of Friday. But it will be touched upon later.
Now, getting back to the currency chart. As apparent, the GBPUSD pair movement on Friday, April, 01, 2005 is in no way in conjunction with the US economy fundamental data. Each forex trader can provide from tens to hundreds of similar instances, where the news are of a certain vector, whereas, after a fraudulent rush along the news vector, a currency applies reverse thrust.
Thereafter, the next day, in daily currency surveys, certified economists are sure to explain all to us by way of inventing another undisguised nonsense, like: "in spite of certain data, traders decided that the currency has already worked-off this side". But! How could this occur on Apr, 01, 2005, provided that the currency has been staying flat in a narrow range in the course of the whole of the European session?
Otherwise, another explanation may emerge, that forex traders were expecting still more inferior news on the US economy... But! By how much more inferior, if according to DJ, the US non-farm payrolls MA was equivalent to 180K, with actual being +110K, estimate being +225K and prior being +243K? And in what manner do these economists count up world traders: by capita, by countries or by the funds, lost by those, who continued staying long in a holy belief in renowned academic scholars postulate of FOREX rates being tied up to countries' economy statistics.
I wonder if I'll ever chance to witness legal procedures to be instituted against any of those famous scholars, so that no one would dare claim that fundamental data trigger rate spikes.
The same pertains to economists, writing about the way, hundreds of thousands traders throughout the globe have conspired to conclude that it is time to reverse the trends with absolutely no grounds. Is it really feasible?
Such reading-matter is, but hammering a single question into one's head: is it lie or is it stupidity of those cooking daily reports for taking traders for a ride, fooling them up and keeping them from the truth, which might be of great avail to them in daily trading. Traders are not a decisive factor, thus rates movement is in no way dependent on their will. Practically in no way.
Wanna check? Negotiate with tens of traders of the trading floor and arrange for a simultaneous entry long on some exotic FOREX pair. In so doing, try to push up either the NZDHKD, or the NZDCAD, or the HKDCAD. No need? I think so. You'll certainly suffer failure with the above, to say nothing of the EUR, GBP, CHF.
Another example:
Fig.2. GBPUSD movement as of May 13, 2005.
See Note below
This is an M15 chart of the American session, where the USD pair has grown by over 100 pips from 1.8583 to 1.8481 against the news, negative for the US economy:
Most indices have dropped down: DJI at NYSE - by 49.36 pips (-0.48%) to close at 10140.12; S&P500 - by 5.31 pips (-0.46%) to 1154.05. NASDAQ has grown by 12.92 pips (+0.66%) to1976.80. 30yr US Bonds yielded 4.484 (0.047 drop from previous close)
There is a fall in Michigan sentiment index. In May UMich was 85.3 with med est 90.0 and prior 87.7. So it was worse than the estimate, reaching the low since March, 2003. The index decline was being observed for the fifth month.
The April US export price index was +0.6% with prior of +0.7%.
Below are other similar examples of that same day.
Fig. 3. EURUSD chart as of May 13, 2005.
See Note below
Hundreds of examples may be offered, where the Forex news vector is opposite to that of the currency movement. Practically, actual news may happen to be superior or inferior to the estimate. FOREX quotes up/down movement is also of 50/50 probability irrespective of the above.
Why does it happen and what is the way for a trader to pinpoint entries and exits? This is going to be discussed in ensuing chapters of this book.
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
Monday, April 16, 2012
Forex Nitty Gritty - Finally, a Forex Trading Course For Beginners!
Forex trading in the trading and investing world has become what Texas Holdem is to the poker world. It has exploded, with over $3.5 trillion being traded every day. Forex is a zero sum market. That means there are winners, and an equal number of losers. Generally, retail Forex traders like you and I are on the losing side. But educated investors CAN and ARE on the winning side.
The truth is, 95% of retail traders lose money in the Forex market. They get frustrated, try system after system, and still lose money. The market is full of gimmicks and "unbeatable" robots that will trade for you making you thousands overnight while you sleep. To be successful in Forex Trading, we have to become independent traders. We can't depend on some forex robot to trade our money for us in the hopes that we make thousands of dollars. We can't depend on other people to trade our money for us, like managed broker accounts. They get paid on the number of trades they make, not whether we are profitable or not. Bottom line is that nobody cares about our forex trading success and our financial well being as much as we do ourselves. Become an educated investor and trader, and you will be more successful.
THE TRUTH ABOUT FOREX
People are flocking to Forex trading with the dream of the old California gold rush. Billions of dollars can be made, all you need to do is get your hands on some of it, right? But if it is so easy, and you can plug in a robot, or give somebody your money to trade for you, how come you are the only one to keep losing your money? You're not. Forex trading has become an industry for predators in search of prey. They sell you on gimmicks and get rich quick schemes. It all sounds great, especially for the low price of $97 - $247 on average. And you don't even have to work at it, or educate yourself, or spend any time at all on trading forex! Woooo hoooo!
One of the latest crazes to hit the Forex Market lately are these so called Forex Robots, or Automated Trading Systems. In a nutshell, you buy this program, install it, turn it on, and it makes you money without you having to know anything about forex trading at all. You can "double your account in 30 days" even while you sleep. No education. No work. You don't even need to know what Forex IS, much less how to trade it. Just buy this or that robot that will trade for you and make you thousands of dollars every month. A dream come true.
Well, robots don't work. If they did, those top banks and financial institutions certainly would be using them and not have fallen to financial woes. Beyond that, just so we can say this with authority, we have tested one of the biggest money making robots on the market today, FAP Turbo. It makes a LOT of money... for the guys selling it, not for the people buying it. Sure, some people make money with it. A blind horse is bound to find water ONCE in a WHILE, right?
However, if you want to do a little work, and educate yourself a little bit, and learn the proper way to trade Forex, then there is a new course on the market just for you. Forex Nitty Gritty is just that course.
30+ Year Trading Expert and Mentor Bill Poulos Creates Forex Nitty Gritty
Bill Poulos is a veteran trader with over 30 years of practical experience. He has helped and mentored thousands of investors make even more money in the market by teaching solid methods based on sound fundamental trading principles and methods.
All of his courses cost several hundred to several thousands of dollars, and WELL WORTH every penny. I myself have used his Forex Profit Accelerator course and obtained returns of 58% per month on average for the past 7 months. Yes, I can show you the actual broker trade data and prove it.
But he wants to help the beginning traders now. And he is mentoring Forex Nitty Gritty for only $97 at the time of this writing. In a personal phone discussion with him, he did tell me that one of the reasons was so that he can help teach people that are new to forex, or that haven't succeeded in forex, because he wanted to later sell them the more expensive advanced courses. (Hows that for honesty?). But I'll be honest here, his main goal is to keep people from making the basic mistakes that wipe out their trading account. Bill Poulos is passionate about helping people to learn and understand the Forex market, and to be able to trade it successfully. Yes, he likes the money his students give him. But he really doesn't need it. He has made a great deal of money trading, and mentoring people, and really has no need for more. He could retire this minute, very well off and never look back. But he WANTS to help people learn to trade successfully. So why does he charge so much for his courses? Because it gives the people learning them value and desire to learn. If he mentored people for free, those people just wouldn't care to learn as much. It's a fact. Scientifically proven. Not to mention that his time IS valuable, and he deserves a little something for giving 30+ years of knowledge to his students.
But Forex Nitty Gritty is different. It is an entry level course for new forex traders, or people that have been in the forex market and not been successful. People that have gotten ripped off by the gimmicks and robots and the unscrupulous "trainers" that really have no business taking peoples money. Bill knows exactly what causes failure in the markets, and he is teaching people that, and much more.
HOW TO SUCCEED IN FOREX TRADING WITH FOREX NITTY GRITTY AND BILL POULOS
There are many things you must do, and many more you must avoid, in order to succeed in Forex trading. Bill Poulos teaches you them in Forex Nitty Gritty.
One of them is that you must focus on high probability, low-risk trades. Nothing more. This means you only take the trades that have the highest probability of being profitable, and the lowest risk of losing your trading account value. Generally this will cause you to have fewer trades, but they will be quality trades and generally more profitable. You will stop trading the less desirable trades that have a higher degree of moving against you. And that means you will win trades with higher profits than the losses you sustain. And yes, you will have losses. But the wins more than make up for that, making you profitable.
With Forex Nitty Gritty, you will only have to spend about 20 minutes a day trading. You will identify any new trades, and manage current trades. You will set entry prices, stop losses, and take profit orders. You will practise good money management rules that will increase your potential profit and lower your overall risk. And yes, it will only take you about 20 minutes a night.
Forex Nitty Gritty also includes optional daily videos that show various trade setups, to help you learn the market the right way. And videos teaching you the basics of forex, and forex trading. The Forex Nitty Gritty Insiders website has a lot of core information and training to help the new traders, or those of us that want to learn how to be more profitable.
Like I said, we tested FAP Turbo, and several other robots as well. And what we found out through our testing is that it doesn't work. Go ahead and review our testing of Fap Turbo, but don't buy it or any other robot unless you want to risk losing your account balance. Forex Nitty Gritty is not some lame automated trading system. It is a solid course with a great trading method that will help you learn Forex trading and be potentially profitable.
FOREX NITTY GRITTY SUMMARY
If you are new to trading in the Forex Market, or you've had problems being profitable, or you've ever had your account wiped out by those "Holy Grail" forex robots and automated trading systems, then Forex Nitty Gritty is for YOU. Learn Forex Nitty Gritty and you too can potentially generate consistent profits while learning how to be among the 5% of retail forex traders that are successful.
Happy Trading!
The truth is, 95% of retail traders lose money in the Forex market. They get frustrated, try system after system, and still lose money. The market is full of gimmicks and "unbeatable" robots that will trade for you making you thousands overnight while you sleep. To be successful in Forex Trading, we have to become independent traders. We can't depend on some forex robot to trade our money for us in the hopes that we make thousands of dollars. We can't depend on other people to trade our money for us, like managed broker accounts. They get paid on the number of trades they make, not whether we are profitable or not. Bottom line is that nobody cares about our forex trading success and our financial well being as much as we do ourselves. Become an educated investor and trader, and you will be more successful.
THE TRUTH ABOUT FOREX
People are flocking to Forex trading with the dream of the old California gold rush. Billions of dollars can be made, all you need to do is get your hands on some of it, right? But if it is so easy, and you can plug in a robot, or give somebody your money to trade for you, how come you are the only one to keep losing your money? You're not. Forex trading has become an industry for predators in search of prey. They sell you on gimmicks and get rich quick schemes. It all sounds great, especially for the low price of $97 - $247 on average. And you don't even have to work at it, or educate yourself, or spend any time at all on trading forex! Woooo hoooo!
One of the latest crazes to hit the Forex Market lately are these so called Forex Robots, or Automated Trading Systems. In a nutshell, you buy this program, install it, turn it on, and it makes you money without you having to know anything about forex trading at all. You can "double your account in 30 days" even while you sleep. No education. No work. You don't even need to know what Forex IS, much less how to trade it. Just buy this or that robot that will trade for you and make you thousands of dollars every month. A dream come true.
Well, robots don't work. If they did, those top banks and financial institutions certainly would be using them and not have fallen to financial woes. Beyond that, just so we can say this with authority, we have tested one of the biggest money making robots on the market today, FAP Turbo. It makes a LOT of money... for the guys selling it, not for the people buying it. Sure, some people make money with it. A blind horse is bound to find water ONCE in a WHILE, right?
However, if you want to do a little work, and educate yourself a little bit, and learn the proper way to trade Forex, then there is a new course on the market just for you. Forex Nitty Gritty is just that course.
30+ Year Trading Expert and Mentor Bill Poulos Creates Forex Nitty Gritty
Bill Poulos is a veteran trader with over 30 years of practical experience. He has helped and mentored thousands of investors make even more money in the market by teaching solid methods based on sound fundamental trading principles and methods.
All of his courses cost several hundred to several thousands of dollars, and WELL WORTH every penny. I myself have used his Forex Profit Accelerator course and obtained returns of 58% per month on average for the past 7 months. Yes, I can show you the actual broker trade data and prove it.
But he wants to help the beginning traders now. And he is mentoring Forex Nitty Gritty for only $97 at the time of this writing. In a personal phone discussion with him, he did tell me that one of the reasons was so that he can help teach people that are new to forex, or that haven't succeeded in forex, because he wanted to later sell them the more expensive advanced courses. (Hows that for honesty?). But I'll be honest here, his main goal is to keep people from making the basic mistakes that wipe out their trading account. Bill Poulos is passionate about helping people to learn and understand the Forex market, and to be able to trade it successfully. Yes, he likes the money his students give him. But he really doesn't need it. He has made a great deal of money trading, and mentoring people, and really has no need for more. He could retire this minute, very well off and never look back. But he WANTS to help people learn to trade successfully. So why does he charge so much for his courses? Because it gives the people learning them value and desire to learn. If he mentored people for free, those people just wouldn't care to learn as much. It's a fact. Scientifically proven. Not to mention that his time IS valuable, and he deserves a little something for giving 30+ years of knowledge to his students.
But Forex Nitty Gritty is different. It is an entry level course for new forex traders, or people that have been in the forex market and not been successful. People that have gotten ripped off by the gimmicks and robots and the unscrupulous "trainers" that really have no business taking peoples money. Bill knows exactly what causes failure in the markets, and he is teaching people that, and much more.
HOW TO SUCCEED IN FOREX TRADING WITH FOREX NITTY GRITTY AND BILL POULOS
There are many things you must do, and many more you must avoid, in order to succeed in Forex trading. Bill Poulos teaches you them in Forex Nitty Gritty.
One of them is that you must focus on high probability, low-risk trades. Nothing more. This means you only take the trades that have the highest probability of being profitable, and the lowest risk of losing your trading account value. Generally this will cause you to have fewer trades, but they will be quality trades and generally more profitable. You will stop trading the less desirable trades that have a higher degree of moving against you. And that means you will win trades with higher profits than the losses you sustain. And yes, you will have losses. But the wins more than make up for that, making you profitable.
With Forex Nitty Gritty, you will only have to spend about 20 minutes a day trading. You will identify any new trades, and manage current trades. You will set entry prices, stop losses, and take profit orders. You will practise good money management rules that will increase your potential profit and lower your overall risk. And yes, it will only take you about 20 minutes a night.
Forex Nitty Gritty also includes optional daily videos that show various trade setups, to help you learn the market the right way. And videos teaching you the basics of forex, and forex trading. The Forex Nitty Gritty Insiders website has a lot of core information and training to help the new traders, or those of us that want to learn how to be more profitable.
Like I said, we tested FAP Turbo, and several other robots as well. And what we found out through our testing is that it doesn't work. Go ahead and review our testing of Fap Turbo, but don't buy it or any other robot unless you want to risk losing your account balance. Forex Nitty Gritty is not some lame automated trading system. It is a solid course with a great trading method that will help you learn Forex trading and be potentially profitable.
FOREX NITTY GRITTY SUMMARY
If you are new to trading in the Forex Market, or you've had problems being profitable, or you've ever had your account wiped out by those "Holy Grail" forex robots and automated trading systems, then Forex Nitty Gritty is for YOU. Learn Forex Nitty Gritty and you too can potentially generate consistent profits while learning how to be among the 5% of retail forex traders that are successful.
Happy Trading!
Monday, April 9, 2012
Million Dollar Pips - The Latest
The latest ? Well the USDJPY finally woke up. Even though the demo account is down to $3.6 mil the USDJPY was 6 of 12 with an all-time high of $124k. FX Ret also had a high of $126k today so things are looking good.
Don't worry-technical analysis will achieved with Automated Forex trading systems mark!
Forex (foreign exchange, Forex rates) means simply buying one currency and selling another at the same time. In other words, the currency of a country is exchanged for another. The currencies of the world is on a floating exchange rate, and dealt with everything in pairs euro/dollar, dollar/yen, etc. More than 85 percent of all daily transactions involve trading of the major currencies.
Forex trading requires continuous monitoring. You can win the forex market, if you can monitor the forex market is open all year and will be able to parse. Trade forex, you need a lot of research. Forex trading requires full-time effort. Not so easy to win the forex market only by being a trader at intervals.
If you are a full-time professional trader and intermittently, the forex market needs highly technical analysis and fundamental analysis. Do fundamental analysis is really much easier than doing the technical analysis.
A technical analysis is based on three assumptions:
1. the movement of the market considers everything
2. the movement of prices is determined,
3. history repeats.
Basic technical analysis should be considered as the study of historical market prices in order to forecast or even know with greater probability in what direction will move future values. Technical analysis requires various technical indicators, different types of charts, graphical methods and analytical methods.
Technical analysis takes a long time, concentration and patience. At the end of technical analysis, you have an idea when the forex market and when to sell forex in order to profit.
As a part time trader, you can't keep a lot of time for technical analysis. It is the job of full-time traders. But in that case, how could it ever part of winning trader forex market?
Forex market is growing faster and faster than any other market in the world. Many tools have been developed also for the forex market. The solution for merchants time part is to get the forex trading signals.
Trademarks are longitudinal indicators of trends in forex market. Breakouts, support and resistance levels, currency pairs, patterns folder near moving averages, Stochastics, construction lines, Fibonacci levels-application of these forex traders turn indicators make a profitable market entry. There are about 26 such indicators-reason for investors to rely on an experienced forex brokers.
In other words, Forex trade marks sale and purchase recommendations provided by any third party. The parties could be brokers, brokerage firms, analysts, traders, forex-related software tools, etc. Various places offer different brands, tips and trends for trading in the forex market. It is best to collect daily Forex signals from trusted sources. Combination of fundamental and technical analysis is the foundation of high precision signals Forex.
Another way, traders intermittently or must subscribe for alerts with each organisation expert forex or to have a software tool that will make technical analysis for them, and to give the signals.
If you subscribe to forex signals with any organization expert forex signals forex, cost anywhere from $ 50 to $ 200 per month. It is up to the individual trader to decide whether the cost is worth. I do not think that brands can take the position of trader training: tips, and if you don't have the expertise to analyze the tips, you should go back to books before using a service mark.
Coming now to the forex trading software tools, there are some tools that are available to you by the broker and also some independent tools (automated forex trading systems) which is independent on any of the brokers. These automated forex trading systems generate the signals for the day when they can buy the forex and when to sell the forex and place orders for your broker automatically without your presence
Comes with automated forex trading systems that create brands, it is more useful. Generally the tools provided by forex brokers will reduce only specific currencies, but this is not the case with independent forex automated trading systems. These tools will be marketed through the Internet and that very low and affordable price. There is no need to pay each month for these tools, it's just a one time purchase. There are tools usually do not cost more than $ 100.
The main advantage of these automated systems of trading is that there is no need to depend on any other forex signal provides organizations or from forex brokers that fits your needs. There are many chances of your forex broker systems that can also receive due to some other reasons. Even trade for you even at night!
To rapidly growing market for forex and make good profits in forex trading, I prefer the automated forex trading systems. These automated systems of trade would be more useful to traders forex part time and full employment.
Click here to learn more about Automated Forex Trading Systems
Come Modalavalasa is a forex expert advisor since 1998.
Saturday, April 7, 2012
Forex Robot Software - Forex Megadroid
We have to admit that when Forex Market trader started using the software called the Forex Robot, it brought the trading in the Forex Market to the next level. We have let go now of the days of traditional trading. The traders that still used, and still on grasp to the old way of trading are often left to rot, and should dust themselves up for sitting for a long time in front of their computers to do their trading. By now, we have Forex Robot that not only send you trading signals, but are able to aid you to formulate and do your trade automatically. By the help of these Forex Robots, traders can avoid the common mistakes to their trading that often led up in ruing their business; we could say that Forex robots help in teaching discipline among traders.
One of the major things that a Forex Trader must do is to create for himself/herself a plan for a particular Forex Trading strategy. By not doing this first key step, a trader might get himself lost in the world of Forex Market, without plans and strategies; the world of trading for them would be complicated. Some traders often submit themselves to simulations in order for them to improve more on their field. Without letting go of a single dime, some brokers often merge these Forex Robots software with 'play money' mode to see if their plans are working. Practice, and honing yourself well on the craft, plus some researches for you to have a better understanding on the system in the Forex would led your way up to the top.
The most experienced Forex Traders search for plans and strategies to get rid of the unhelpful impact of humanly emotion trying to enter their trading equation. The best of the best traders in the world often share to the newbie in the business to stick to the hard facts, and learn how to get back on their very first theses, exclusive of any human psychology; because some of the trades might lure you to use your intuition, letting you ruin your original mindset. Traders now, who used Forex Robots is confident that they can calmly put their data on their computer and let the efficient Forex Robot software run for themselves, basically doing all the works for you.
As we all know, the Forex Market is like a battlefield; with traders from all parts of the world battling it out, using all their improved arsenals, their skills and wits so that they could gain something from the Market. If you let yourself be eaten up by these big traders all over the globe, you might get yourself in the verge of bankruptcy. With people trading in currency many hours a day, you might as well say that the Market requires a very vast amount of human endurance, but it is key to observe that human strength has its limitations; it could not go on for hours and hours. But worry not, with the help of these Forex Robots software, a trader can let his trading on autopilot, letting the Forex Robot work for you, and that is to say that these Robots can go on several hours without rest, leaving you ample time to enjoy other things, and give you a vast amount of time to strategize your new battle plan for the Forex Market. After purchasing a Forex Robot, you won't see yourself as a slave of your business; the Robot would now be there to take your work from you.
Once you key in all the necessary things you want to put in to your trade, you would let now the Forex robot to run by its own system, letting you run away from the computer. You would be able to save more time now; you won't be waiting now for applicable signals for you to trade successfully in the Forex Market. By automatically letting your Forex Robot do the trading for you, they can execute your plans without your help. By this, you can let go of your emotions on doing your trading, for some trades in the Forex Market lure you to use your gut feeling, making you forget of all your solid strategy.
The common principle in trading states that 'buy low, sell high'. This has been around in the Forex Market arena for a long time. But, some of the Forex traders often forget this single advice. There are times that the currency is low, but some traders are hesitant to buy the currency, because they fear that it might go lower. Also, when greed comes into play, some don't just sell in hopes that it would go higher. The Forex Robot could prevent all these mishaps, you are now ensured that your plans are carried out, that you can buy and sell on your most advantage.
Some traders though, used the Forex Robot without really thinking, they just log on to their accounts, and guess positions they think they are advantageous. Of course, the Forex Market is not all pure luck, without thinking and educating yourself in the Forex Market, you would often lose. But there are traders too who used blacktest to double check if their plans and strategies are really working, this wound enable them to gain more from the business, by taking advantage of all the good things that a Forex Robot software can do.
You can say by now, that by the help of these Forex Robots, you can make yourself better on your business. And by that, you get extra credit by gaining more profit from the usual; you can now be one of those smart traders who got rich from the business. Again, Forex Robots give you almost all the advantages there is in the Forex Market, plus that it could give you a lot of free time to do more things.
Having the best things on hand would let you succeed from the Forex market; don't go into the battlefield in the world of Forex without any help from a Forex Robot.
Guaranteed 95.82% Accuracy, Best Forex Robot
Forex MegaDroid Indisputably Proves A Robot Can Trade With 95.82% Accuracy In EVERY SINGLE Market Condition And At Least Quadruple Every Single Dollar You Deposit. 38 years of combined Forex trading experience delivers Megadroid RCTPA Technology. Reverse Correlated Time And Price Analysis (RCTPA) it's what will take you from being an average Forex trader to a top gun pip pulling machine.
Thursday, April 5, 2012
7 Essentials to Finding an Online Forex Broker to Explode Your Forex Profits
One essential ingredient that you must have when starting on line foreign currency exchange trading is an account with a Forex trading broker. The currency trading broker is your connection into the markets and they will provide the essential cover that allows you to trade with margins.
The question is how do you select the best Forex brokers. There are at least 7 criteria points to be considered when you are deciding where best to shop for a Forex currency trading broker.
1. Dependable
This works on multiple levels. You need a broker that you can rely upon to be trustworthy and who will not all of a sudden vanish like a puff of smoke from the internet taking with them all of your hard earned money. The FX market is surprisingly devoid of regulations so there are a vast number of Forex brokers to choose from and as is like with many things in life some Forex trading brokers are more honest than others.
The first step is to check up on the reliability of the currency trading broker and to confirm your online Forex broker is regulated. In the USA this means that you want a Forex trading broker that carries a current registration with the Commodity Futures Trading Commission (CFTC) and also the National Futures Association (NFA).
Check for a Forex currency trading broker with an unblemished record regarding any complaints logged against them on the National Futures Association website. Other countries have their own regulatory bodies for example the Financial Services Authority in the UK performs the same function.
Another consideration is whether the online Forex broker's trading platform is reliable. The Forex trading platform is the financial software that will connect you to the FX markets whenever you want to trade. If the online Forex trading platform is often offline then this will cause you some major problems. For example you could miss out on either opening or closing a trade at the optimum time.
It would be best to check a number of online Forex trading forums for feedback from individual users regarding the amount of downtime that they have experienced. Remember it is like with all online forums do not listen to the loudest voice as they may have a vested interest either way in recommending or not recommending who in their opinion are the best Forex brokers
2. Services Provided by the Best Forex Brokers
The Forex markets trade for a full 24 hours each day that's from Sunday evening through to Friday afternoon Eastern Standard Time. Check that your Forex broker's trading platform is reachable available during all of these times, The best Forex brokers trading platforms will be available and they will also offer around the clock customer support on Forex trading days.
Check that they cover at the seven main currencies that are USD, JPY, CAD, AUD, CHF, EUR and GBP certainly the best Forex brokers will.
The best Forex brokers will offer you a minimum of the following essential tools, which are instant execution of your Forex trade at the price displayed, technical analysis charts and financial trading charts. Most will also offer a training program to teach the basics of using the tools.
3. Forex Broker Costs
Online Forex brokers do not make commission charges to their customers so the way they make their income is from the difference in the Forex trading spread. The Forex spread is the differences between the buying and selling prices on any of the currency pairs. The Forex trading spread is usually any spread between 1 pip and even sometimes less to around 3 pips; this will depend upon the online Forex brokers terms of service and the currency pair being traded.
The piece of the pie taken by the spread can make all the difference between achieving a profit or making a loss in your Forex trading account. This will affect both the immediate term and also the longer term so you will need to scrutinize closely at what level the spread will be computed. If you can decide which pairs you are likely to trade most frequently the spread on those pairs will be more important to you than on others. For example I prefer the USD/GBP trading pair, which is known as cable.
Beware of special short term marketing maneuvers like special offers of lower Forex trading spreads that may not last long once you have committed your funds.
Consideration need to be given on how much is the minimum amount of capital you can invest in order to open a Forex trading account. Good advice given to new traders is to start out small, which means looking for a Forex broker who will let you open an account with a minimum of $250 or hopefully less.
4. Margins, which are also known as Deposits
Margins are a variable that change from Forex broker to Forex broker. A lower margin requirement means giving you a higher leverage, and higher leverage can give you the ability to create greater profits, or losses from a fund of the same size. Margins allow you to magnify the opportunity to make more money
5. Size of the Trade also known as Lot Size
Trade size varies from one broker to another. Generally 100,000 trading units of currency is considered a standard lot, 10,000 of trading units is a mini lot, and 1,000 trading units is a micro lot. Some brokers do offer fractions of a lot too, which give you more power to set your own lot size. This could be perceived as a bonus or just an added complication depending on your point of view.
There are other matters to be considered which include the interest paid on the Forex margin account, the rollover charges when trades continue over to the next trading day and any other FX trading policies that the broker may have which could affect your Forex trading account commerciality. These are the main points that you should be looking out for when choosing the best Forex trading broker.
6. Customer Service
This is very important especially when you have just started out using a Forex trading platform. Like with all new things there will inevitably be teething troubles and you will want to be able to speak or email someone and get an instant response. The best Forex brokers will provide this service.
7. Forex Exit Strategy
There will be a time when you want to realize some of the profits that you have made and be able to withdraw your money quickly and easily. Make sure that you are able to get your money within a couple of days as some online Forex brokers insist on a 14 day delay which is totally unnecessary
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