Friday, November 27, 2009

Database Analysis For Successful Forex Trading

To become a successful forex trader is a must for learning how to predict the price trend and which method or software best forex trading.

As a successful forex trader, it is important to understand the difference between fundamental analysis and technical analysis. What is the difference between fundamental analysis and technical analysis? Let's see.

Fundamental Analysis
Fundamental analysis done on the history and present data, but with the purpose of making financial predictions. The data used in this analysis is; money policy, government policy and economic indicators. Some examples are the GDP, exports and imports. Analysis of this data is for a particular business cycle.

Technical Analysis
Technical analysis is a safety analysis technique that claims the ability to predict the future direction of prices through the study of market data in the past, especially the price and volume. In its purest form, technical analysis considers only the actual price and volume of market behavior or instruments. Technical analysts, sometimes called "chartists", perhaps using models and trading rules based on price and volume transformations.

Ask a seasoned forex trader uses fundamental analysis or traders who use technical analysis. You will get one side of the story of each trader each method of analysis would say they or forex strategy is superior.

But the reality is that it has become increasingly difficult to be pure from both persuasion. Fundamentalists need to monitor various signals coming from the action on price charts, while some technicians are able to completely ignore the economic data that will come, critical political decisions or social issues that affect a myriad of prices.

A fundamental analyst can predict the market will move. But technical analysts can supply the market and predict the direction of currency rates rough.

Remember that the financial foundation of any country taking into account various factors, including social, political and economic influence. Stay breast of all the financial aspects of this can be very time consuming and challenging. Meanwhile, the data used for both methods of analysis and diverse as many market traders and the databases they create. Two different people can view the same data and come up with two conclusions entirely on how the market will be affected by it. In the end, some may make huge profits and some lost their money. Analyzing the data is not cut and dry.

Remember, fundamental analysis is a very effective way to estimate the economic conditions, but not necessarily exact market prices. For example, when analyzing the economists predicted future GDP or employment report, you begin to get a pretty clear picture about the general health of the economy and the forces behind it. However, you must come with the proper methods of how best to translate this information into the entry and exit points to a particular trading strategy.

If you are new to forex trading and trading do not often; it is my opinion that fundamental analysis is a good starting point to get your feet wet with the FX.

Do not burden yourself with data and analysis of the market. Sometimes traders fall into this trap and are unable to pull the trigger on the trade. Usually, your first thoughts and conclusions are correct. Keeping things simple and do not corrupt the data.

A mistake that some of the new forex traders make is to trade a particular market with little or no knowledge of the market. You may get lucky and turn a profit quickly. But this is not the best approach in the long run if you want to become a successful forex trader. Best if you get a good forex trading education. There are a lot of information in the market. Do your due diligence.

For forex trader, is the fundamental building blocks that make the state run economy. Interest rates, unemployment, the central bank's policy on natural disasters, is the fundamental dynamic mix of distinct plans, erratic behaviors and unforeseen events. Therefore, it is important to understand the market fundamentals when trading in forex.

By: T Hub

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Wednesday, November 25, 2009

Five Top Benefits of Forex Trading Today

Five Top Benefits of Forex Trading Today

Forex trading has become a very popular activity in recent years. Many people around the world see it as a great opportunity and they are not too wrong about it either. But what Forex trading advantages and what is put in front of the online trading industry?

Most people when hearing the word "forex" immediately think of the exposure risk and unwanted. Your risk as much as you want to take risks, no one can force you into it. But, forex trading is indeed not for the faint of heart, but it has some undeniable advantages that make a great income opportunity for people who are willing to take some risks.

LIQUIDITY VOLUME extraordinary
This is one of the biggest advantages of the Forex market. It is speculated that approximately 2 trillion dollars traded everyday. No need for me to tell you what a huge amount. This allows greater stability to develop and merchants do not have problems in getting money in and out.

Forex market is much more interesting time frame. It all started Sunday at 3 EST when New Zealand began to operate. That lasted until Friday 5 when EST when San Francisco closed the operation. You can practically work in any time zone.

You will need a lot less money to get going than in other markets. You can start making money for as low as $ 300. This is an important advantage, I believe that you can see that. This basically means that you can save your investment risk to an absolute minimum.

This is an important advantage, because you can make your trade offer from anywhere in the world, all you need is a computer or internet connection. So, even if you plan your vacation, but you still want to be able to do some trading, you need to bring your trusty laptop.

Most of all transactions conducted in the seven most important currency. This means that you will get better much faster than usual, and you'll manage to get the feeling that in a short time.

The fifth major advantage is what makes most people start trading. However, you must remember that there are some risks involved. If you do not know it, you'll be better off. However, if you manage to learn and to become an expert, Forex trading can bring you great reward.

By: Ray La Foy

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Monday, November 23, 2009

A Novice Forex Traders Guide to Fundamental Analysis

If you are new to forex trading you have access to a lot of fundamental analysis as the click of the mouse from banks brokers and news wires you can look at and trade upon it - let's look at forex fundamental analysis and how to use it.
A forex trader, who made the trade based on fundamental analysis, will look at supply and demand situation in relation to the currency studied, and tried to estimate the impact of various factors on the movement and they include:

• Economic growth and economic policy

• Interest rate outlook

• Balance of payments

• Employment

• Trade Deficit

• political factors

To name but a few but there is a problem when trying to use fundamental analysis:

The facts are there for all to see, but ultimately the price is determined by millions of different opinions as you and I and we all draw their own conclusions from the facts and figures. In addition to all the news are available at any moment and this means it is a discount.

With human nature involved and the fact that fundamental analysis quickly cut almost impossible for the novice trader to execute the trade at the signal.

If you want a graphic example of how the forex fundamental analysis will not help you make money consider these facts:

The ratio of winners of losers today are the same as 50 years ago and this is better news though more and faster communications. So, if you think the trade was to think again.

A way that is much easier to learn the graph and using technical analysis.

A technical approach to take into account both supply and demand situation, and the psychology of investors. We can see the impact of both at once and reflected in the price.

Many traders do not believe that technical analysis works, because they can not take into account the fundamental but this is not true:

Technical analysis assumes that all known fundamentals will show direct price action. Technical analysis because it is just a shortcut into account the fundamental and more importantly take into account human psychology.

The equation for market movement is:

Demand and supply factors + Human perception (psychology of investors) = Price action

So, if you think about forex trading using fundamental analysis, you can save yourself a lot of time and increase your chances of success, by taking a technical approach - which reflects ALL the factors that influence the price and increase the chances of your success.

With your technical analysis on the reality of price action - not opinions and therefore trade the truth and not what you or others think it might be.

By: Monica Hendrix

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Sunday, November 22, 2009

A Nice Forex Trading Course For All Beginners

This is not surprising to find that more and more people today are interested in participating in the world's largest and most liquid financial markets and the market is basically open to trade twenty-four hours a day. Many people have become very rich through trading in the forex market and it has enabled many people to replace the daily work and enjoy the comforts of their work from home a few hours a week. It also makes some millionaire!

Of course, there are two sides to every coin and just as some people have found a very comfortable living with forex trading, there are also many people who have lost their shirts again. So, what distinguishes the two? Well, there are many answers to this question but without a doubt top the list of good forex training.

If you enter the world of forex trading without the knowledge and skills necessary so you are almost guaranteed to lose money. However, if you take the time to learn what you do before you start trading with money the hard work yourself then you will go with a very long way towards minimizing your risks and maximize your earning potential.

A good forex trading course will teach you everything you need to know about the various tools available to you in the field of trade, including trading platforms available in the forex market and analysis software and graphics. Most important, it also will tell you when to enter the market and when to exit it. In other words, when to buy and when to sell.

There are many forex trading courses available right now and you'll need to choose courses that best suits you and your learning style. You could for example choose a course which will cover the basics of a very short time at one end of the scale or full-time offline training courses where you can learn first hand from experienced traders who not only will take you through all the basics, but also will cover many aspects of forward trading and even sit with you and take you by the hand through a series of paper trading.

For most people, although a popular choice is an online training course allows you to learn at your own pace using the media will also be used for trading. Online trading courses vary from short introductory courses to be extended in-depth training and once again you can choose what works for you.

Another good, but under utilized, the form of apprenticeship training is for you to seasoned traders and mentors. To many this is the most represented in the training and, like many things in life, there's no better way to learn than by looking over the shoulder of an expert and experts that monitor and notify you when you practice the skills she teaches. Of course not always easy to find the right mentor, but the time spent tracking a suitable teacher will be well worth it.

Whatever form of training that you select the secret is to take at least some training before you start trading and then a slow and relatively small trade with money until you have enough knowledge to build and develop your skills to a high enough level.

By: Don Saunders

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Saturday, November 21, 2009

Some Tips to Choosing a Forex Broker

When you first start trading on the forex market finding a broker may not be a major concern; not all brokers the same anyway? Lets face it if you can find a trading strategy that you feel comfortable with and become consistently profitable then that is winning the battle, right? Unfortunately it was not easy and it is a shame that there are too many so-called brokers out there who want to cheat you off.

Where Did It Come From Mentality?
Forex retail industry has grown up on the fact that FX is worth $ 2 Trillion in volume every day (in reality only a small proportion of this comes from private speculators, mostly produced by large banks and multinational corporations). This is quite interesting especially when we are reminded of how these numbers actually dwarf the stock market, and we've all heard how much you can make from the stock. Now add the statistics to the mix is between 90 and 95% (probably closer to 99%) of all retail speculators lose money and you have to climb the corporate associations themselves to get their hands on cash. Forex is billed as a way to become mega rich, leaving a job and live the life you always wanted but if it was that easy everyone would do it!

How to Position Yourself Retail Broker?
To answer this question we need to briefly explain some of the market dynamics. Forex market completely decentralized. This means that, unlike the centralized exchange like the NYSE and the LSE, there is no central location where each transaction can be tracked and recorded as well not have specialist currency market makers are responsible for providing quotes for the entire market. Conversely, entities that act as market makers for the currency market is the largest bank in the world. These banks to make transactions with each other on a regular basis, then the term "interbank market". In order for you to deal directly with large banks, you need to establish credit relationships with those who take large sums of money and consequently most people are not able to do this. So, this is where the retail broker in; they connect you with major banks. Because they represent many clients they have enough equity to build a credit relationship and dealing with these banks, should be on your behalf.

This position is Open to Exploitation
Retail Forex Broker is an intermediary between you and the interbank market so that every time you place an order to buy EURUSD for example, your broker to change their currency positions held by large banks partner to reflect this. Right so your broker to set fees for these services usually come in the form of the spread (difference between bid and ask). The spread they offer you is a little larger than the spread they are offered in the interbank market so that your broker can make a small profit on every trade you make. It all sounds all well and good so far, agree?

Now let me ask: suppose you work in Las Vegas as runner placing sports bets on the books for several clients. Now you've done this for a while and you acknowledge that some of you smart clients pick a winner and a few select either the loser. If you can make a little extra on your costs to run by doing the opposite of clients that consistently losing bets would you do that? Now suppose that 99% of your clients lose money over a long period of time so you have to do is to bet against them all and you'll make a fortune! Sometimes around who really big sporting event you're so busy you can not put your clients' bets and bet you that your numbers fast enough you will make sure you get a good opportunity and then sort out your client when you are done, then they have little or sometimes even worse than your chances. This mindset is a greedy, profitable and you will not have many friends but at least you'll make a good retail forex broker!

Sorry to use a gambling analogy in here (the trade should not be confused with gambling) but did not explain the problem properly. All you have to do to apply to the situation we switched a few words: Las Vegas is the interbank market, a broker retail runner, sports books into big banks, betting trading clients, the cost of running the spread, major sporting events and big news items the difference between You get the chance and opportunity to get your client is the slip that you give.

Is not this a bit cynical?
Yes analogy used is a bit cynical, but it is not the case that every broker out there who are guilty of 'bucket shops' tactics (rest assured that any broker will deny it but it) but too general. Even the bank's traders can slip in volatile times, but the extent to which it occurs at the retail level can not be accepted. Also you can not use the volatility as a defense when you start a dog profitable traders with the constant re-quoting, accusations of illegal scalping (no such thing even exists!) And forced the closure of accounts. And what about the broker went bankrupt without returning your money? Is it surprising that this article questioned the honesty of some retail brokerages?

What About Regulation?
Retail market is still quite young and therefore are loosely regulated. However, there are two organizations that the police sector, and they began to move and protect consumers in a more regular basis. These organizations are the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC). The CFTC from two of the most heavily involved in the regulation of fraud, manipulation and trade practices in the harsh retail forex sector. sites are the source of information about consumer protection and legal disputes that are running against the brokers and other entities.

Let's Talk About Positive
That's not all bad out there; a particular company offers very attractive and honest services. Let us conclude some of the attributes you should consider looking at brokers:

1. NFA and CFTC registered

2. No dealing desk, ECN style brokers

3. Spread variables that reflect the level of volatility in the interbank

4. Companies that commission responsible than the average spread (the thinking here is that the more you trade the more they make so it is in their interests to see you make a profitable trade and commerce continue to be happy with them - are less likely to be on the other side of your trade)

5. Friendly and efficient customer service

6. Bid to ensure your capital in bonds to secure (to protect customers funds in the event of bankruptcy of a broker)

7. Limit entries (your broker allows you to enter the market with a given 'chase factor' a few pips. If your order is not fulfilled within the acceptable 'chase factor' your order is either partially filled or not filled at all - prevents silly slip at the volatility high)

8. A good reputation in the industry (check the site for users independent review)

9. No BS marketing that focuses on the multi-millions you'll make a few months after opening an account (prey on these companies are not experienced traders and gamblers who do not have the opportunity to benefit)

10. Realistic and modest margin / leverage (the company that offers a 100:1 leverage on your push for greater trade and loss account to them quickly - you may want to look out for brokers who offer a choice of margin requirements)

Of course not all of these attributes can be classified as a 'golden rule'. If there is something that is considered attractive is open to exploitation. For example, ECN brokers became very popular and this has caused some advertising services company that ECN when they do not really have the technology to provide one.

Are You Due Diligence
I know it can seem boring, but studied the broker you choose must be well spent. At least you have to spend time browsing the website broker. You may want to make a list of things that you like the sound and the things that you do not (remember, if something sounds too good to be true it probably is). Contact their customer support and put these issues their representatives and see if you are offered a satisfactory answer (also a big test of their customer service dept. And the general professionalism). I also highly recommend checking the website and browse the CFTC forums, discussion boards, blogs and user review website for information. My final suggestion here is that you share the good and bad experiences in the trade community. Although you may have heard about this effort you will save his fellow traders / time, money and maybe a few gray hairs. Good luck and happy hunting!

By: David Thorpe

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Thursday, November 19, 2009

24 Hours Market: Forex Trading

Forex trading market is not really to be found physically. In contrast, the market is a large network of central banks and individual investors all caught up in the process of currency exchange. Because the Forex market deals with countries around the world, markets must remain open 24 hours a day. Markets followed three markets, the United States, Europe, and Asia.

This raises the problem even more successful investor. This was not possible for every human being to stay up 24 hours a day so they have the latest information from the market. Often the investor market changes will sleep or go about the routine of their daily. If the statistics are often not checked, the opportunity for profit may be lost.

The alternative is to hire a professional broker. This requires the pressure from investors, but it brings the whole new range of problems. The advantage was cut due to the fact that professional brokers should be paid, and once again, professional brokers are human too, and had to sleep. This still presents the possibility of loss of profit gains.

The key to becoming a successful Forex trader is to find the tools and services that aide you in making decisions. The Internet allows investors to access a virtually unlimited amount of it is a program information.Whether, chart, or article, a successful Forex traders rely on any reliable tool they can get their hands on.

Training Tutorial-Some kind of online training tutorials are available for little or no cost.
Typical training tutorials take you from the very basics of the more sophisticated part of Forex trading.

By reading, studying, and following the training program as instructed, you gain knowledge and experience in the Forex market, which will help you make a decision later.

Simulated Trading-Simulated trading programs allow you to work in the actual Forex market without the risk of losing money your hard work in the process. Most simulation programs work in real time, allowing you to learn about the real market. Simulation programs often use paper money and work exactly like real trading services. With the gain and loss as you do in real markets, you get real world experience.

Statistics Analyzers-Programs are available that actually analyze the information for you. If you are new to investing, statistics and information may seem to be in crap. Statistical analysis took the information and make it readable by even the newest investor.

Real Online Trading Program-If you choose to trade without the pressure of learning the trade, you may consider online trading program. Online trading program allows you to specify your settings, then the control program of your portfolio for you. Because the program does not depend on human emotion, an easy profit.

Finally, the best alternative is to allow a program to do the work for you. It seems strange, but a program can be run 24 hours a day, constantly checking the statistics and graphs that allow programs to make decisions and complete the transaction before the time in which to obtain the benefits run out.

By: Caterina Christakos

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Wednesday, November 18, 2009

10 (TEN) Good Reasons why YOU have to jump into the FOREX Trading

Foreign Exchange Market is a market where traders buy and sell currencies with the hope of making a profit when the values of the currencies changes in their favor. People who make large sums of money from Forex trading. Forex market has great potential for all people, ranging from large corporate enterprise regular, everyday people like you and me.

This is a very interesting trade with a big money making potential. Try to imagine yourself sitting comfortably in your pajamas on your computer ... You turn on the internet and do some quick transactions and the time you get up to get a cup of coffee, you'll be a few hundred dollars richer! Would you like that? I want!!

I can hear you say, "Wait a minute!! This sounds like one of those confusing as the stock market, options or traditional futures, so what makes this market different?"

Aaah! Good question! So, to answer your question, here are 10 good (if not great) excuse to enter Forex Trade:

1. First and foremost, Forex trading allows for a small investment. You do not need to be able to invest thousands of dollars to get started with this trade. You can start trading Forex with as little as $ 300 to $ 350 and can be good in a way to generate more than that on your first day.

2. Forex market is always open! You can trade anytime and from anywhere in the world. No waiting for the stock market to open. Sustainable market, with generally only a little rest at the weekend.

3. The funds you invest liquid; you can cash whenever you want. No waiting for days to get the shares converted into cash.

4. Forex Trading market value colossal: it is 30 times larger than all U.S. equity markets combined. This is the biggest market in the world with daily reported volume of 1.5-2.0 trillion dollars. The value of this large make it profitable and desirable trade to invest in.

5. This is a very stable trade and offer greater strength in other markets. State and people will ALWAYS need currency. Although the value of different currencies rise and fall, not as dramatic fluctuations in stock prices and generally followed the predicted trend.

6. You do not need to worry about commissions, exchange fees or hidden costs when you trade Forex. Forex brokers make only a small part of the bid and there are very respectable and independent brokers are also available. Is not that wonderful for you?

7. You make a profit no matter which direction the currency is happening. You are not going to worry about falling currency values if you know what to do well and make a profit.

8. Forex is a very transparent market. Unlike the stock market, where analysts have an unfair advantage over ordinary people because of the knowledge, information relevant for the Forex is as available to everyone through the international news. Therefore, all Forex traders are in a position to make relevant decisions in accordance with the current market situation.

9. Forex market is very fast! It takes no more than 1-2 seconds to complete your transaction because everything is done electronically, online and in Real Time.

10. End of good news is that you do not need a formal education, licensing, diploma or degree to trade Forex. All you need is knowledge of how it works, trading strategies and some tips and techniques and you could be on the road to get a big advantage.

Forex trading online is probably the quickest way to financial freedom and an end to all your financial worries. This is really very good, if not THE best home business opportunities for ordinary people.
You owe it to yourself to try it!
Prosperity and happiness for all!

By: Humaira Aslam

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Tuesday, November 17, 2009

5 Easy Steps to Turn You Go Elite Forex Trader

These 5 simple steps will help turn you become confident, disciplined Forex trader. By using the steps below you can be above 10% of all Forex traders. That would be a few who actually make money.

There will be two things you notice about these steps:.

They are clear.
They're simple.

All aspects of Forex trading should fall into two categories. In fact, one of the biggest mistakes I see Forex traders do is try to learn and use too much.

However, it is a different discussion. Back to the 5 simple steps.

Step 1 - Get Yourself Ready To Trade

In my experience with hundreds of traders who have impressed me with how few of them know how to get their game on the face.

They forget trading is a job. One of the largest in the world, but work remains. Difficult for them to become self-motivated. Like most of the world they need someone on their shoulder telling them what to do.

So, find something in or around you that can be used to prepare for the trade.

Drinking coffee
Reading books
Do Yoga
Anything to clear my mind

Once your mind is clear, proceed to Step 2.

Step 2 - Look to your last couple of trading

Your trading success, such as Forex itself, will have the momentum and pattern. As you gain experience you will learn to see patterns YOU. You may catch yourself making the same mistakes time and time again.

As you will learn later, you must keep a journal of all your trade. I do not mean the notes that came with your trading software. Your journal should be as clear as possible.

Why do I enter the trade? Why do I get out of the trade? Am I close support? Am I close to the resistance?

Just to mention a few questions that should answer your journal for each trade. Notice any mistakes you have made for a trade.

Once you have a transaction that identifies trends, proceed to Step 3.

Step 3 - Fundamental and Technical Analysis

Fundamental analysis refers to something else then the price action. In this case means the news.

Technical analysis refers to all things related to the price action. The price itself, formulas, patterns, etc. ...

There's a reason why I mentioned both of them in one step. I'm not going to waste all the steps on fundamental analysis. Did not take me 3 minutes. I look to see what piece (s) is the news released today to determine the type of volatility is expected in the next session.

This helps me when that determine support and resistance levels I expect to play.

As far as technical analysis gone. I do not care what tools, indicators, graphs you see. However, be consistent. Do not use the MACD and the CCI one night, and other RSI and Stochastics. Do not keep changing the average length of your move, or switch from simple to weighted to exponential.

The fact is, find out what makes the most sense for you. I think it's good to understand what these indicators means, but there is no need to analyze.

I would like to add one thought here ... using Fibonacci Lines.

Once you have completed your analysis, both fundamental and technical, proceed to Step 4.

Step 4 - Money Management (trade Specify size)

You must have a well-defined money management system. For example, never risk more than 4% / 5% / 10% of your account on one trade. Increasing the size of the trade by one of the mini for every $ 400 / $ 800 / $ 1200 in profit.

It always amazes me how some traders randomly make this decision. They change their approach day after day. This is a sure fire to failure.

Determine what makes the most sense for you and stick with it.

Once again, I want to add a thought here. You can not live trading account until you can consistently make money in demo account. At least 2 consecutive weeks of gains, and not because you're making $ 10,000 a day while losing money on 9 out of 10 days.
So, assuming you live trading accounts, adjust your position size to meet predetermined formula.

Once you have determined your trade size, proceed to Step 5

Step 5 - Make a Trade!

You've done all your homework. You have to use all your skills and knowledge. The only thing left is to make a trade.

Now, you know exactly what you expect will happen with the currency pair you are watching. You only need to remain patient until your chance comes.

However, after that happened, like a lion to pounce on its prey. Do not hesitate if you see what you expect to see.

Do not forget, of course, to place a stop order with your entry order, or soon after. Also, if you have one, make sure to place your profit target.

After you enter or exit the trade, began to write. Record trading in a journal, with all the reasons for entry and exit. Be specific as possible. You'll be amazed how much valuable information you will gather from time to time.

Using these 5 steps you should be able to make a drastic step in Forex trading. However, if you do not feel comfortable with one part of your trading is very important that you consider a Forex trading course.

Remember, you are only as good as your knowledge and knowledge is only as good as your education.

By: Eddie Yakubovich

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