The Magic of Forex Fundamental Analysis

Fundamental analysis within the foreign exchange market, comes down to the main statement which says that the currency of the country with terms better, is stronger against the currency of a country with a lower performance. The result is that the country's currency that has an uptrend will strengthen against the country's currency with the…

Fundamental analysis within the foreign exchange market, comes down to the main statement which says that the currency of the country with terms better, is stronger against the currency of a country with a lower performance. The result is that the country's currency that has an uptrend will strengthen against the country's currency with the downtrend.

This occurs due to the fact that the country is better viewed by investors who are attracted to each capital, making its currency gain in value as it typically creates a higher demand. Foreign investors wishing to invest within a country need the national currency to replace their own currency, thereby stimulating the growth of the currency in the foreign exchange market and extremely further increase the demand.

Forex traders that wish to predict future currency trends, mainly assess the state of the economy using macro-economic indicators. These indicators show the picture of the economy in different contexts depending on which index you choose to analyze. The most commonly used indicators are: interest rates, gross domestic product (GDP), inflation, unemployment and industrial production.

The most common strategies for fundamental analysis are:

a) Long-term – based on a detailed examination of data economies making up a given currency pair. Investors take a long position in the currency of the country that is better developing, but short on the currency of the country where the economic situation is weakened (eg crisis).

b) Short-term – is to open a position at the time of publication of macroeconomic data. If the data turn out better than expected to open long positions and if they are worse – open short positions. If the forecast is confirmed, we do not make any decisions.

The approach to fundamental analysis depends primarily on each trader and his personal approach and preferred strategy. Every investor is different and everyone should choose what's best for him. Not everyone wants to hold open positions for several months, just as not everyone wants to open positions within 1-2 seconds after the publication of macroeconomic data.

You may very well combine the two methods of analysis or perhaps develop your own way to open positions in the forex market. In addition, you can use the technical analysis of the data analysis of currency pairs and the same economies. There are no rigid strategies, you should follow, but better figure out what suits your way of trading best.

How To Position Stop And Limit Orders When Trading Forex

As we approach the forex trading field, we often focus on two things: The trend study, to know which way to position our trades and to obtain trading signals with technical indicators to know when exactly to enter a position in the direction of the trend. However, what very often beginners forget is that these…

As we approach the forex trading field, we often focus on two things: The trend study, to know which way to position our trades and to obtain trading signals with technical indicators to know when exactly to enter a position in the direction of the trend.

However, what very often beginners forget is that these elements are not enough to trade successfully, you must also learn to choose and manage Stop and Limit Orders to secure your wins and prevent losses.

Choosing Stops and Limits Based on Risk Management.

The first rule to define the Stops and Limits based on risk management. It is necessary that your stop is always tighter than your limit. For example, if you have a goal to gain 30 pips, it is imperative that if your stop is hit, the loss is less than 30 pips. In this way, in the event your stop or limit is reached, you will almost always remain financially a winner, even if you are right only half the time.

Traders should bear in mind that stop orders that are too tight can lead to a loss in closed positions, without having to be “wrong”, while a limit may be too ambitious and have missed a few pips.

However, contrary to what an investor might think, considering this principle is not enough to position his stops and limits correctly.

But also (and especially) one should take into account the important thresholds.

Trend directions change depending upon various factors, as currency pairs do not move in a straight line and “block” or return to what might be called generically “important thresholds”.

There are many techniques to identify these important thresholds:

-Supports and resistances

-The high points and low points

– The moving average

-The trend lines

-The Fibonacci

-The pivot points

-The psychological thresholds

Before choosing goals (stops and limits), it is appropriate to review the important thresholds that are more or less close to the rate of the currency you want when placing your trades.

The ideal is to use all (or at least many) of these techniques to identify exhaustively all the thresholds that could be considered significant.

Of course, by doing so you will spot many potentially important thresholds and some others, which are less important and you will have to sort out.

Sorting means simply to try to keep important thresholds confirmed by at least two different techniques, such as a carrier or a resistance which is also a Fibonacci retracement.

The link between risk management and important thresholds

Once the important thresholds are identified and sorted, risk management actually occurs. You just need this stage to “choose” among your important threshold limits and stops, taking care to choose a more distant limit from the current price, than is the stop.

To conclude we need to stress the fact that one should also be careful not to choose too ambitious limits or too tight stop orders. To do this, it depends primarily on the time scale of your operation of forex trading. There are no rules, but it can be considered for the short-term trading (on graphics 1M or 5M), goals gains 15/25 pips are reasonable, while for trading on hourly charts, we can risk target earnings up 60 to 100 pips .

What Is Bitcoin and Why Do People Care?

Bitcoin is a brand-new kind of capital or currency. It resembles the US Dollar, the Euro or the Peso, except that it is not controlled by any single company or government. Rather than being manipulated by a single body, bitcoin is a decentralized peer-to-peer currency, meaning that it lives on the computer of everyone that…

Bitcoin is a brand-new kind of capital or currency. It resembles the US Dollar, the Euro or the Peso, except that it is not controlled by any single company or government.

Rather than being manipulated by a single body, bitcoin is a decentralized peer-to-peer currency, meaning that it lives on the computer of everyone that works with it. (The same as the internet itself.) Given that it's decentralized, no one can corrupt with the marketplace by releasing more bitcoins into circulation and there is no wall-street banker lining one's pockets by standing in the center of each order.

The perks of bitcoin are those transactions happen almost instantly and do not require a transaction fee– unless the person starting the transaction decides to pay one. You see, since nobody manipulates the bitcoin network, there are computers around the planet who help confirm each transaction that happens– this process is called “mining.”

So as to incentivize these “miners” to help authenticate all the transactions, the bitcoin network grants bitcoins to miners occasionally. Presently, 25 bitcoins are rewarded in a form of lottery system about every 10 minutes. The program behind bitcoin deals with this lottery and it's completely open source so everyone can see it.

The rate that bitcoins are awarded will halve to 12.5 in 2017 and then cut in half again every 4 years until the final bitcoins are rewarded in 2140. Then, there will be a total of 21 million bitcoins around and that's it– absolutely no more will ever be created. Based upon the present exchange rate, there are over $ 1.4 billion bitcoins in the market.

The way bitcoin deals operate is very basic, everyone has a bitcoin wallet that they use to send and obtain funds. This wallet is a simple string of letters and numbers, helping make that wallet wallet completely confidential without the person chooses to link themselves with it. The private essence of bitcoin deals has caused it being used for a variety illicit activities.

While prohibited purchases may happen, there are thousands of establishments, programs and economies all over the planet that recognize bitcoin.

Bitcoin was initially designed by Satoshi Nakamoto in 2008 and the first bitcoin transaction happened in 2009. If you had actually invested in just a few hundred US dollars in Bitcoin when it first began, it would have been valued at millions these days. Exactly what are you waiting for – go get your Bitcoins!

4 Tips for Choosing a Forex Broker

The volume of Forex brokers that offer trading platforms is so high now that it can be very hard to choose the one that is right for you. Obviously, they all offer attributes you can use during your forex training or live trading but you must consider the long term. That is, learning to use…

The volume of Forex brokers that offer trading platforms is so high now that it can be very hard to choose the one that is right for you. Obviously, they all offer attributes you can use during your forex training or live trading but you must consider the long term. That is, learning to use new software can take time, so when you do choose a broker the aim is to stay with them for as long as possible, unless a pioneer or simply offer better trading conditions such as lower spreads.

The aim of this article is not to tell you which broker to go for but rather, to provide you with 4 major tips which you should consider when looking for one.

1. Easy to use software

If you have never traded before using a brand new trading platform can be a bit daunting. Watching instructional videos or reading the manual can simply be too time consuming. However, if you want to trade, you have no choice. The important thing is to be comfortable with the platform so that when you trade, using it becomes second nature. For example drawing simple lines or calculating profit with a cursor for specific Forex trading strategies should be a breeze. Last thing you need is to struggle with using basic attributes that will waste valuable trading time.

2. Demo account

This is crucial. Your chosen broker must be able to provide you with a demo account where you can practice your Forex trading strategies and gain confidence. Simply put, this is a virtual environment where the market prices are real but you trade with fake money.

Contrary to belief, a demo account is not only useful when your Forex training commences. It is also useful to professional traders. For instance, if new Forex trading strategies are being devised or a trader is simply having a bad run, moving to a demo account for a few days is essential. This will re-install your confidence into your strategies or make you realize that there is something missing that needs to be added. Whatever the scenario is, a demo account is a great way to keep you at the top of your game.

Make sure your demo account does not last for a few days. It needs to be accessible as long as you have your live account.

3. Low commission and spreads

Without striking the obvious, the lower the commission and the spread, the higher your profit is going to be. There are a few brokers that offer no commission trading but the spread may be a bit higher. If you are trading higher time frames, the spread should only be a small fraction of your profit but if you are trading on one or five minute charts, the spread / commission cost will take a much higher chunk out of your profit.

4. Support

Finally, it is very important that your chosen broker provides support while you trade. This could range from informing you on the reasons why the platform is down / when it will be back online to helping you with general software usage in case you are stuck. Good support will always save you time and enable you to trade with the confidence that someone is always there to reach out, should you need them.

Forex Trading – What You Need to Start Forex

Statistics from the Bank for International Settlement (BIS) put the rate of daily turnover in Forex Trading to $ 5 Trillion at the end of 2011 financial year. This certifies why Forex happens to be the highest revenue generating investment in the global currency market. The rate of turnover in Forex makes it an attractive…

Statistics from the Bank for International Settlement (BIS) put the rate of daily turnover in Forex Trading to $ 5 Trillion at the end of 2011 financial year. This certifies why Forex happens to be the highest revenue generating investment in the global currency market.

The rate of turnover in Forex makes it an attractive business despite the high risks involved. Trading the Forex market successfully requires good skills, experience, and efficient trading tools.

For an investor who wishes to start Forex, the following essential materials listed in the table below must be acquired.

KEY

M = minimum; U = upwards; O = optional; N = novice; E = expert; I = intermediate; ** = must

1. Fund **

This is an investment business which involves buying and selling of contracts, therefore funds are the most essential. However funds required for Forex goes beyond the trading funds. You need extra funds for purchasing other materials like the ones listed below.

2. Computer ** (Laptop or desktop) laptop is preferred for mobility reasons.

A minimum system specification with 1.7GHz ( u ) processor speed, 2.0GB RAM ( m ), Win XP / Vista / 7/8 (latest OS preferred), 15 “screen ( u ) for better view, high Audio / VGA & Accelerator Cards, 3 USB Slots ( m ), 150GBM hard disk space.

Forex requires very good computer processing power to handle multiple charts efficiently and other day-to-day tasks. Adequate hard disk space is essential not just for the trading platform but for storing trading video files, tutorials in audio and document formats, history files, and other Forex materials. Slow trading platform performance, platform crashing and freezing are sometimes caused by low computer resources.

A single computer system is sufficient for Forex Trading. However multiple screens or PCs is recommended for those who wish to simultaneously monitor several platforms, use advanced charting tools, and view multiple accounts.

3. Internet **

This is an important material needed to trade the Forex online. A single Internet provision may not be particularly favorable for regions with erratic or poor internet connectivity. Wireless internet connectivity is preferred due to mobility, and wide variety of options.

The Internet LAN option comes with some disadvantages but the connection speed is fairly better than wireless internet connections. Proxy configurations and firewalls are the key issues with LANs in a corporate network. Most Forex signal services and EAs do not work efficiently with Proxy Connections.

4. Forex Trading Tools **

This goes further than the tools you'll find in your regular MT4, MT5, or TradeStation trading platform. Find below categories of Forex trading tools:

Forex Analyzing Tools – required to analyze trade results & setups. eg spreadsheet apps.

Forex Charting Tools – needed specifically for drawing trade setups and analyzing pre and post trade events.

Forex Simulation Tools – very essential for designing trading strategies, perfecting trading strategies, analyzing past trades, test trading systems and strategy offers, etceg Forex EA Analyzer, Strategy Tester, etc

Forex Utility Tools – as the name suggest you need them to ease your trading experience. Eg timers, world clock, etc

Forex Trading Tools – custom indicators, scripts, supplement chart tools, EAs, news tickers, etc

5 Smartphone ( o )

This is required for business enthusiast who are always on-the-go. Most Forex services and platforms are now supported on smartphones

6. Satellite / Cable TV Network

This is a must for those who love the fundamental approach in trading Forex. You need this to get yourself updated with economic events in the world. There are mobile gadgets, which have satellite television, and streaming news capabilities. You can also install satellite television services on your computer or sign up for online Forex live news.

7. Printer

You need this device to print monthly statements, Forex software guidelines, trade results, training materials, etc

Some of the items listed above are optional but are essential for starting Forex, while some are more useful for advanced Forex traders.

However ensure you get some of the materials listed on item 4 (Forex Tools). Do not compromise with item 1 (Funds) else you'll find yourself gambling rather trading.

Forex Trading Coaches Review

Background The forex-trading-coaches cut to the chase. No time is wasted – they give you the facts, figures, and steps to follow. Honesty and value for money is written all over their homepage. Wade Scott and Steve Cook are the Co-founders and Analysts of forex-trading-coaches. They have been developers, traders and coaches since 2004. They…

Background

The forex-trading-coaches cut to the chase. No time is wasted – they give you the facts, figures, and steps to follow. Honesty and value for money is written all over their homepage.

Wade Scott and Steve Cook are the Co-founders and Analysts of forex-trading-coaches. They have been developers, traders and coaches since 2004. They developed the MACD 3 day / swing trading system by using their skills obtained in trading in all market conditions conceivable. This system has been proven highly reliable over a long period of time.

What is offered?

The MACD 3 Forex Trading Strategy is accurate, with low draw down. Like with all systems, proper training is suggested and firstly you will be instructed to learn how to read charts. You will learn how to identify where price action is in the overall larger picture trend, where price has come from, where it is now and where it is most likely to go next. You will learn how to find your trend direction. You will then locate the best possible areas for entering a trade. You will identify exact entry time, and will know how to develop a risk management plan and trade management plan.

The system finds setups on the four hour, daily and weekly charts and entries on five minute, fifteen minutes and one hour charts. In addition MACD 3 Traders meet in the Chat Room during the Asian and London Markets to go over the detailed instructions in the plan to find the trade setups together.

Cost

The following offerings are on the table:

$ 645.00 Semi-Annually Auto-Renewing 6 Month Membership

Valued at $ 1145.00 (6 months for the price of 5 = $ 107.50 per month)

Automatically renews every 180 days from subscription date. Cancel at any time before expiration. You can choose a different membership level at any time before expiration.

$ 345.00 Quarterly Auto-Renewing 6 Month Membership

Valued at $ 687.00 (3 months for the price of 2 1/2 = $ 115.00 per month)

Automatically renews every 90 days from subscription date. Cancel at any time before expiration. You can choose a different membership level at any time before expiration.

$ 129.00 Auto-Renewing Monthly Membership

Valued at $ 197.00 (To save money select the Quarterly or Semi-Annual Membership above)

Automatically renews every 30 days from subscription date. Cancel at any time before expiration. You can choose a different membership level any time before expiration.

These services of the forex coaches are highly recommended.

2 Ways to Improve Forex Demo Trading

Beginner forex traders are advised to trade through a demo account first before risking real money on a live trading account. Here are a couple of ways on how to make the most out of your demo trading practice: 1. Treat it like a real account. How would you feel if the money you are…

Beginner forex traders are advised to trade through a demo account first before risking real money on a live trading account. Here are a couple of ways on how to make the most out of your demo trading practice:

1. Treat it like a real account.

How would you feel if the money you are currently practicing with was real and how will you deal with the loss? By imagining that you are actually trading real money instead of demo dollars, you can convince yourself to focus more and to be more careful with your trading decisions.

The problem with some traders that have been on a demo account for a while is that they are no longer feel the pain of a loss, knowing that there's no real money at stake after all. Instead of preparing their trading skills and psychology for the rigors of trading on a live account, they practice less caution when trading on demo. This defeats the purpose of practicing before moving on to live trading.

To address this issue, you can consider imposing penalties on yourself when you lose a trade or make a bad trading decision. For instance, you can have a money jar wherein you would require yourself to put a proportional amount to your loss. If you lose $ 1000 demo dollars, you can put $ 10 in the jar. If you lose $ 500 demo dollars, you should put $ 5 in the money jar.

Conversely, you can also reward yourself for winning trades. With the money jar example, you can take $ 10 for a $ 1000 win on your demo account then you can use this cash to treat yourself to dessert or a cup of your favorite coffee.

2. Give yourself grades.

Trading is a continuous process of learning and, just as in school, you can come up with grades for your performance for a particular period. This will encourage you to review your trade journal and evaluate yourself beyond the profit and loss figures.

The reason for this is that trading is more than just about the profit and loss. Although these hard numbers are extremely determinate how well you did on your trading activity, there is always room for improvement if you take time to figure out what you did wrong and what you can work on.

By giving yourself grades, you'll be able to gauge if you are doing better or worse as you progress in your trading career. Consecutive periods of low grades should urge you to take a step back and figure out what you should change with your trading.

The Magic of Forex Technical Analysis

Technical analysis is the study of the financial markets (Forex, Stock Exchange, and others), which involves the analysis of what has happened in the past. Based on market (past) charts, the investor tries to determine what will happen in the future. The person making the analysis, tries to spot some recurring patterns in the past…

Technical analysis is the study of the financial markets (Forex, Stock Exchange, and others), which involves the analysis of what has happened in the past. Based on market (past) charts, the investor tries to determine what will happen in the future. The person making the analysis, tries to spot some recurring patterns in the past and use the knowledge of these patterns and apply them in the current market.

Another type of analysis of the financial markets and of course Forex, is Fundamental Analysis, where the investor bases his liabilities as to the development of the courses, based on the economic situations anticipating.

The choice of the type of analysis that an investor would use in predicting future courses, depends primarily on the individuals approach to the markets. Every trader must choose for himself the appropriate mechanisms to thoroughly analyze the market.

Of course, it is said that one should choose only one analysis for decision-making. For example, we use fundamental analysis to predict the long term and technical analysis to forecast the short-term.

Technical analysis is based on three elements:

a) The market discounts everything – in short we can say that exchange rate graphs reflect everything that takes place within the various economies, as well as reflect all the factors that may have an impact on the exchange rate itself. Therefore, it makes no sense to analyze anything more than a currency chart as it is the best representation of the relationship that exist between the two currencies, forming a single exchange rate.

b) Prices are subject to market trends – research has shown that exchange rates are displayed as graphs trends. You can highlight an upward trend, downward and horizontal trend. The investor tries to determine which current trend prevails and on this base his position in the market. As research has shown the continuation of a particular trend is more likely that its termination.

c) History repeats itself – another study has shown that certain events tend to repeat themselves. Consequently, a number of patterns and technical formations, allow investors to make appropriate decisions with regards to their entry positions.

Closing We need to mention that in technical analysis, there are numerous methods often used method by analyzing many different charts such as: linear formations and formations candlestick charts, moving averages, support / resistance, technical indicators, Fibonacci levels, Elliott wave theory and many other methods that will be analyzed at a later stage.

What Is A Forex Trading Journal And How It Can Help You Succeed

When starting to trade Forex, there are two main steps to follow before expecting to start making money intelligently (ie relying on logic and analysis). The first step is to learn the basics of technical analysis and acquire the necessary financial knowledge to be in a position to assess the impact of the news and…

When starting to trade Forex, there are two main steps to follow before expecting to start making money intelligently (ie relying on logic and analysis).

The first step is to learn the basics of technical analysis and acquire the necessary financial knowledge to be in a position to assess the impact of the news and statistics. Once well informed, the trader can start practicing, but the initial purpose should be to learn and not to suddenly become a millionaire.

Beginner's must have in mind to gain first the necessary experience, first with a demo account (for a limited time demo accounts are not always the best way to train, as we have already explained) and then practicing via real trading cautiously, with very small positions.

To gain experience more quickly when starting the actual trading, there is a great tool: The trading journal.

What is a trading journal?

In short, it means to list all your positions in the forex market and their criteria. So you can analyze your trading to identify what works for you and what does not work, then draw conclusions and improve.

The trading journal can take many forms, such as:

* A simple notebook meets style
* An excel spreadsheet
* A word document, etc.

What should you put in your trading journal?

The more detailed the journal is, the better. For completeness, we can add:

– Date and time of entry into position
– Currencies concerned
– Size of the position
– Direction of trade (buy / sell)
– Stop limit
– Unit-time graph used
– Reasons for position
– Date and time position output
– Reason-position output (stop? Limit? Signal contradiction? Fear error?)
– Review of the operation
– Free Comments noted that will help you improve

You may also include a screenshot of a graphical representation of your entry and exit positions.

After filling your trading journal, you can begin to analyze it.

The easiest way is to sort your trading journal is by losing and winning trades.

The next step is to find common ground between the winning trades and losing trades and find “winners patterns” and “losing patterns”

* Maybe some type of signal that helped you succeed?
* Maybe for X or Y reasons you always lose money on some particular currency pair?
* When trading in the evening you may be doing far better than trading in the morning sometimes?
* Your stops are often affected, maybe they are too tight?
* You rarely conformed to your stop and your limits?
* The trades on the 5M charts without you succeed on the H1?
* Etc., etc., etc …!

Then the next step is simply to implement the conclusions of these observations: Emphasize on what helps you succeed and stop what is the cause of your losing trades. It's as simple as that.

With this method, you will not simply lose your money but instead you will learn from your mistakes. It is said that the losses are useful because they shape the experience, but if we do not analyze the losses and draw the appropriate logical conclusions, then we have just wasted our time and money for nothing. We strongly recommend that you use a trading journal in your forex trading, especially if you feel that you're still in the “acquisition experience trader” phase.

How to Practice The Art of Forex Scalping

There are many ways to approach trading in the forex market, depending on the time horizon. One can indeed classify types of trading in three categories: day trading, which involves taking positions on a few hours a day, swing trading, which involves taking positions on some days, and scalping, which is to take multiple positions…

There are many ways to approach trading in the forex market, depending on the time horizon. One can indeed classify types of trading in three categories: day trading, which involves taking positions on a few hours a day, swing trading, which involves taking positions on some days, and scalping, which is to take multiple positions within a very short timeframe .

What is Exactly Forex Scalping?

Scalping involves taking multiple daily short-term operations, with a strong leverage and limited objective earnings, highly leveraged offsetting weaknesses in terms of pip gains with a target to achieve financial financial gains.

There are not really any rules and it depends on the mood of the day and the state of mind of the trader, but we can estimate a scalper passes between 20 and 100 operations per day, each lasting a few seconds to a few minutes, for purposes of gain from 5 to 15 pips.

This can be a stressful and exhausting activity and requires staying glued to your forex trading platform all through the day.

Where Does the Scalper Base His Decisions?

We believe that scalping the forex is a “trading experience.” The short-term transactions and instant response required at the position makes the delicate analysis: We really do not have time to analyze the market in a conventional manner.

Scalpers can use technical analysis indicators; I believe that the main indicators are poorly adapted on such short time horizons. Indeed, the signals are often slowly delayed, or slightly advanced.

So, it's about the experience and the instinct on what the scalper primarily basis his actions. A scalper does not know what to do with the general trend, or the macroeconomic environment of the moment. He is interested in the economic calendar and the events that can generate volatility which he can enjoy, but does not practice the economic and psychological analysis.

What are the Qualities of a Scalper?

The first quality of a scalper is his experience. Indeed, he needs to act fast, performing a rapid technical analysis that needs to be done by instinctively and without much thought. A scalper should perfectly master the technical indicators that he could potentially use.

Here we can make a point about the “instinct of the trader,” the “feeling.” I believe it is not an innate quality, but a quality that comes with experience. It is a force to analyze the market, reactions and practice technical analysis that a trader unconsciously incorporates the sum of its findings, its successes and its failures.

As time passes and things get better, the trader thinks he developed an instinct, but he is nothing, he just unconsciously applies the sum of his experiences, so do not play by the “pure instinct” but simply “instinctive analysis.”

The second quality of a scalper is the mastery of his emotions. This will indeed be when we pass dozens or even hundreds of transactions per day, it is inevitably subjected to intense stress and an untold number of opportunities to get overwhelmed by emotions.

To conclude we need to mention that scalping can indeed look very attractive. The adrenaline, the opportunity to make significant and rapid gains, the prospect of practicing “real trading” as described in the collective imagination. However, beginners should not be allowed to play, and even consider Scalping as a possible goal, unless they have obtained the necessary skills and experience.