Learning Forex Trading

Foreign Exchange Trading, or Forex Trading, is trading currencies from around the world against each other, buying and selling to make a profit. Trading can be done through a broker or a market. Two of the biggest benefits of Forex trading are that you can trade any time of the day. So long as there is a market open somewhere in the world, you can do business. It is a 24 hour revolving door of currency. The next biggest benefit is a term called Leverage. This means that if you were trading on a ratio of 50:1, you could buy and sell currencies for $50,000, even if you only had $1,000 in your account. This attraction to work with large sums of money is what draws most beginners into the business.

Learning to read a Forex Trading Chart is a bit more difficult than researching a ticker symbol on the stock market. It can start off as challenge, but if you are interested in the profitable business of Forex Trading, learning to read charts are essential. You can change the setting of charts to make it is easier for you to read and understand, depending on the type of program you are using.

Forex trading has gained so much popularity among investors (old and new alike) that it is arguably considered more profitable and reliable than trading on stocks and bonds. Staying afloat of world affairs and financial trends of other currencies is essential to maintaining a valuable Forex portfolio. The opportunities for large profits are vast, but, like every investment, there are also just as many opportunities for loss. As a seasoned counselor, I always advise my clients to begin their investment strategies by first investing in high profile tools and guides to get started.

Posted by nanono at 5:54 PM

FOREX-Dollar rises vs euro on stimulus bill uncertainty

Dollar rises vs euro on worries about stimulus bill
* U.S. stocks trim gains (Recasts, updates prices, add comments)
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 11 (Reuters) - The dollar gained against the euro on Wednesday in choppy trading as Wall Street stocks pared gains and investors remained uncertain about the final size and scope of the U.S. stimulus package.
The $838 billion economic rescue package, which was passed by the Senate late on Tuesday, must now be reconciled in a joint congressional committee with the version approved by House of Representatives.
"The bill (on the stimulus) is now in joint conference and there would be some gnashing of the teeth. I don't think the markets will be happy," said Adam Fazio, senior currency strategist at CIBC World Markets.
"The more this gets thrown out, the more risk becomes inherent in the market."
Higher market anxiety generally benefits the dollar, yen, and Swiss franc as these currencies are perceived as safe havens with low volatility.
In midmorning trading, the euro fell to $1.2872, , down 0.2 percent on the day. Before U.S. stocks opened, the euro rose to session highs at $1.2998, according to EBS data.
Traders said U.S. stocks came off their peaks as markets failed to push the S&P 500 above the key 835 level, fueling some euro selling versus the dollar.
(Editing by Kenneth Barry)

Automated Forex Trading Systems

The beauty about trading on the Fx market is that even though it’s open 24/7, there are many automated trading systems that enable you to make trades without your presence. Much of foreign currency trading involves some basic trading moves based on certain parameters being met. These automated systems are triggered when these conditions exist, which you program into the controls. Plus, you can program certain constraints to stop loss to enable you to control the down side of a trade.

We can’t be at our computers all the hours the Forex markets are open. This is one of the advantages of using one of the many automatic Forex trading systems on the market today. In other words, what happens if a under normal circumstances a great investing opportunity comes along and you not log on to your computer? Well, in the past you would have missed it and lost the profits you would have received from it.

Find the Best Forex Trading System

To be a great forex trader, you have to understand the Forex Trading Signals that will pinpoint exactly when to buy and sell. The best Forex Traders are able to identify the trend at the start and then hold it until it just before it turns or the trend changes. However you don’t have to pick it at the very start to be successful, as long as you can identify the trend you can still make great profits. This is what is referred to as Forex Trend trading.
There are several types of Forex Trading strategies, the most common type is the indicator crossover and this can be the best way to identify new trends. MACD and moving averages are the most used in technical forex indicators when trading. So before you decide to take up a forex trading system you are better off educating yourself on the forex trading systems available and all the positives and negatives to each one. For more education lessons it is worth visiting the CFD FX REPORTthey specialize in educating the Forex traders with lots of Free educational lessons and they also help traders find the Best Forex Brokers in the market.
Now lets look at how we can find the best Forex Trading signals. A great example is the Exponential Moving Average (EMA) 6 crossing the EMA 23, is the best example of seeing the long term trend crossing over the short term trend. So when the EMA 6 crosses the EMA 23 you would sell when the EMA 6 crossed down EMA 23. This is similar with the MACD.
There are several forex indicators based on trend that you can use. To become a great trader you have to make yourself familiar with them firstly. To use just one model individually maybe the wrong strategy, however if you have the correct information of positive trend on several models then you are simply increasing the success rate on that particular trade.
To become a successful Forex Trader may seem like a long learning process at the start however once you have learnt it you will become a more profitable and successful trader. To continue learning more about Forex Trading feel free to visit the CFD FX REPORT for more free educational lessons.
About the Author:
The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.

Free Forex Trading Signals: Forex Signals - Are You Making the ...

Forex Signals - Are You Making the Most Out of Your Forex Trading ... Most successful traders utilize some type of Forex signal service. Most signal services are accurate and there's a lot of money & easy trades to be made by. ...Forex news by Max

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Automatic Forex Trading Software

Forex trading has gained tremendously in interest and popularity in recent years mostly due to the introduction of automatic and automated forex trading systems. The market that was open to banks and similar big financial institutions is now luring medium and even small investors.
Forex market is the place where currency of one country is traded for currency of another country. These trades happen round the clock with transactions of billions or perhaps trillion of dollars everyday, making it one of the largest and most active financial markets.
With the advent of the internet, network, communication technologies, and sophisticated automated forex trading systems, participating in the forex market is now open to virtually anyone having a computer, an internet connection, a forex brokerage account and a good trading platform.
But staying on top of a forex position requires constant monitoring, as this global market is practically open round the clock. Automatic and automated forex trading systems is a tool that lets you specify a currency, an asking price, and a selling price beforehand. With a small seed amount and with the help of a broker, your purchase and sell orders will be executed instantly.
An automatic and automated forex trading system allows you to benefit from the profitability of the forex market without having to become an expert in trading. In automated trading through managed accounts, the trading program or human experts executes the trades for you.
With a reliable auto trading platform, you are not required to do the actual trading yourself and therefore you save your time. And if you can watch the market constantly, you can mange multiple accounts from your trading platforms, simultaneously, which was never possible with manual trading. Automated forex trading systems present advantage of trading multiple systems and multiple markets.
An automatic and automated forex trading allow your trades to be made at any time of the day or night, regardless of your presence. You do not miss a single profitable trade even if you are not present in front of your computer terminal.
An automatic and automated forex trading helps you in taking advantage of multiple forex strategies and different systems. Because different systems are designed to be triggered by different trade indicators, you can diversify your investment as well as your risk.
An automatic and automated forex trading also eliminates human emotions and psychology that can often affect proper and profitable trading decisions. With an automatic and automated forex trading system, you will be capable of monitoring many currency pairs at a time and you can follow and execute all of them.
But, even with automatic forex trading systems, you will have to learn the basics of the forex trading, methods of fundamental and technical analysis, market indicators, etc. for enjoying consistent profits.
Just being automated, the trading system never guarantees you success as the market is influenced by many variables and parameters. The forex automated system is not just mechanical, but is fully programmable and you can customize them according to your needs.

How to strategize forex day trading along with the forex market situation

Forex day trading on the internet has become so popular nowadays when sometimes ago, only major financial institutions and companies involved in trading forex. But now some traders trade in the forex market as a hobby while other traders make a living with forex trading.
To come out with the best strategy for forex day trading, you need to understand these four different situations.
The first one is gradual movement day - the market movement is slow if the currency price begins at 200ma, rise to no more than 20pips, and then go back over to 200mA on the same day.
When the gradual movement day happens, over and over again it will cause a normal movement day and also signifies that currency value is stable. With this in mind, you can tweak your forex trading strategy accordingly.
Second situation is normal movement day – this is when the currency price begins to some extent above or below 75ma, rises a bit, then go back over to 75ma.
This event can be a sign of that the currency is steady and is giving you an idea that you do not need to tweak your positions.
Thirdly, quick movement day – this is when the currency price is to some extent above or below 21ema, rise or the opposite, and then go back over to 21ema.
This condition signifies upward movement trend causes by certain economic reason that affecting the currency of the country of origin. However, these movements can be good or worse for you. Therefore, a more detailed research of the movement of the currency of the motherland is necessary in order for you to determine the next steps.
The number four situation is huge scale day – it happens when the up and down of the price of the currency scale is 20pips away from each other. This signifies the volatility of the currency and it may be good or bad for you. So, your strategy must be efficient in order to deal with any possible occurrence.
One of the strategies that is regularly used by the day traders when they do forex day trading is to buy and sell the same currency pair, the same lot, at the same time. Meaning that, you trade long or buy command and short or sell command positions simultaneously for the same currency pair at the same time.
For instance, you buy 1 lot EUR/USD at 1.4245 and sell 1 lot of EUR/USD at 1.4240. There is a difference between the buy and sell price which we often called as spread. The rationale for the buy and sell of the same currency pair, the same lot, and at the same time is that you are hedging your positions. The currency pair’s rise or fall movement will give you a winning chance. Put a stop loss at 5 pips and take profit at 15 pips for both commands.
If the price rises up, your take profit command which you set up earlier will automatically close your buy command or long position as soon as when it touches a gain of 15 pips. As for the sell command, the stop loss command which also you have set up earlier, will automatically close your position in order to make sure that you only lost 5 pips. So you make a profit of fifteen pips minus five pips which equals to ten pips. For this example, the buy command which makes you gain gives you the basis of 15 pips. And your stop loss command helps you to detain a profit of 10 pips. So, if you trade with 1:100 leverage, 10 pips profit means a $ 100 profit out of a $ 1,000 capital.
Do not trade with no stop loss command, or else you will lose your capital at any time. If the currency pair price decreases, your stop loss command will shut your long position at 5 pips loss, and the take profit command will shut your short position when it touches 15 pips which gives you a net profit of 10 pips.
If you do day trading in the forex market, and you are only looking and monitoring at the 5 minutes and 15 minutes charts then big possibility that your account will vanish pretty soon.
If you keen to get an idea of the forex market and signs of the currency price current movements, it is vital for you to analyze several charts and various indicators at the different period of time.
Instead of letting your charts crowded and mess with multiple signals that can leads to confusion, you may just use these two which are MACD (with default settings) and 200 EMA (Exponential Moving Average).
Then you can monitor your charts with this sequence; firstly, daily chart, secondly, 4 hours chart, and finally, an hour chart.

City extends its lead in forex trading

London extended its lead as the dominant global centre for foreign exchange dealing in the opening months of this year, stealing a march on New York to take a still larger share of world currency trading.

The latest twice-yearly surveys released yesterday by the Bank of England and the New York Federal Reserve showed London tightening its grip on the currency markets, leaving its American rival trailing.

Overall average daily turnover in London's currency markets in April leapt by almost a third compared with levels last October, and by 54 per cent from levels recorded a year earlier, taking it to $1.82 trillion (£912 billion) a day, according to the latest survey of 33 leading institutions by the City's Foreign Exchange Joint Standing Committee.

The year-on-year surge in London's average trading volumes compared with a much more modest gain in New York of only 15.7 per cent from April 2007 levels.

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Overall daily currency trading volumes in New York of $714.9 billion stood at only 39 per cent of London levels, down from 41 per cent at the same time last year.

London also continued to extend its lead over New York sharply as the leading global centre for over-the-counter (OTC) currency dealing trades made directly between two parties, yesterday's surveys showed.

Daily over-the-counter trading volumes in London during April leapt by 18 per cent from the same time last year, to an average of $136 billion. In stark contrast, New York suffered a sharp drop in its over-the-counter trading activity, with average daily volumes tumbling by more than a third to $34.4 billion in April, compared with levels a year before.

In London, dollar-based transactions continued to dominate the Square Mile's currency market activity, particularly dollar-euro trade, which accounted for 29 per cent of average daily turnover in April - down from 32 per cent in October.

Dollar-sterling trades accounted for an average 12 per cent of daily transactions, a little down from 14 per cent in October, with dealing in dollar-yen taking an unchanged 11 per cent of daily turnover on average.

Yesterday's confirmation of London continuing sway over currency markets will offer some consolation for City institutions at a time when the global credit crunch is forcing many to retrench and cut jobs.

The Forex Mini Account - The Best Way To Start

here are four main advantages of a Forex Mini Account.

1. Low Minimum account size

$300 will allow you to start a forex mini account. This is affordable for most people to start off with in forex trading. When you consider trading as a business, there are very few businesses costing only $300 as a startup capital offering lucrative prospects of earnings within a very short time.

2. High leverage

You can get leverage of 200:1 In the mini forex account, there is a small margin deposit required fixed at $50 for per lot traded. This amounts to a stunning leverage of 200 to 1. One of key factors to accelerate profits is to use trading vehicles of high leverage, and a forex mini account certainly meets or fulfils the definition of high leverage.

3. One pip is equivalent to $1

Trading in pips allows the new forex trader to scale down his risk. With such a low denomination, the trader is able to deal with forex trading with less pressure and more discipline. For example, a 20-pip floating loss $20, so that if you have a 20-pip sudden move against the direction of your trade on a 100K account, that is translated into a $200 floating loss. In every transaction, by using a Mini account, the trader does not end up with a total loss as he loses only a small amount on every losing transaction. This allows him to follow his trading strategy in a disciplined manner.

4. A smaller trade size

The mini forex account trades in smaller contract sizes of 10,000 units which is 1/10 th the size of the standard account. This smaller trade size allows traders an opportunity to trade live with less overall risk. As a result, a beginner can transit or move into forex mini trading quickly paper trading. While the standard lot is 10,000 units, the beginner trader can increase trading to more lots or units as he gains experience and confidence, and as his profits increase as a result of disciplined trading.

One hidden benefit of trading the mini forex account is that traders can become familiar with the quality and also the reliability of the forex trading platform station of his broker. This is because the forex mini account utilises the same state-of-the art trading software as that for normal sized forex trading.

Mini accounts are recommended for traders with account balances of less than $10,000, allowing them more trading opportunities without over leveraging their account and hence get more staying power in the market.

We will discuss how you can exploit these features of a forex mini account to your advantage in Part #2 of this article so that it is easier to earn a consistent income trading on low capital and lower risk.

Forex Trading: The Most Common Flaws

Many traders are very much attracted to the sophistication offered by the multi indicators and use them in their forex trading systems. Many of the confluence system indicators show the price movement and in no way adds any value to the trade. Due to this, the traders either end up over bought or over sold technical indicators like the stochastic, momentum indicators, candle stick chart pattern recognition, Bollinger band breaks out even neural networks which are supposed to be artificial intelligent systems. The technical indicators just show signals which are similar to buy or sell or hold, making the signal generated to be correct. Theoretically it sounds good but in reality to arrive at a conclusion might be difficult. As a result the traders are confused in making a right decision. They either enter too late or too early or remain still without being able to make a decision to enter the market. The major flaw is due to the use of useless trading system which does not serve the purpose to make profits, but confuses the traders and complicates the forex trading until the trader loses.

Another dangerous flaw found in forex trading is of an emotional nature interwoven into the process. It is fear and greed of the trader. A profitable forex trade can lead to exuberance and over joy, but this is the time when greed comes in and crosses the aspects of risk management. When a trader is hooked to winning, out of greed he over-rides all aspects to see more and more profits, only to see crash to earth. They wait for the prices to regain, but in dismay may some time and with worst possible losses. This is the time when fear crops up and paralyses the trader not making him to open up any position. Hence while trading, the trader should not override the emotional side of trading, stick to discipline of the trade which can prevent them from committing the flaw of forex trading.

Another kind of flaw can happen when the trader is an unconcerned person or the one who is lazy, or with no drive to gain profits or feels the need to be profitable. These people would have entered into forex trading due it as an easy game. For them it is not a trade which involves skill, trade management, preparation and re-investment. It is a fun game for them, where loses do not make any difference to them. Such persons make a wrong footing, with a wrong objective.

Flaws in forex trading due to the inadequate knowledge of the trader:

Some of the losers start with good purpose in the trade. Even though they had gained some knowledge from here and there they might find it difficult to apply them practically in the trade. Inadequate knowledge might be the major flaw which stops them from achieving success.