Trading charts and some other trading software’s

Posted by TomShort on October 30, 2009 under Daily Forex review | Be the First to Comment

Till now I suppose you all must be really very familiar with all the FOREX tools that are available in market. One of the most useful and interesting FOREX tools which are available to the people who are investing their hard earned money in the FOREX market is “price charts”. You can make use of these FOREX tools in order to do some sort of fundamental or technical analysis. Generally Technical analysis is the one which is very much famous amongst so many FOREX traders. Fundamental analysis is always used by some of the FOREX traders in order to make some forecasts which are of long-term. Technical analysis is actually the one which is used to make analysis of short-term.

Technical analysis can also be of real help for you in order to predict the ongoing movement of price. These trading charts are not of so much difficulty. They are manageable for the purpose of reading, as I hope you may also believe. The trading charts which are used by the trading brokers who deal with day trading are often high level of difficulty in reading. Currency charts are the ones which can reveal very strong tendencies of the trading market and some of the people believe that they are very much more reliable than the information which is revealed from some other charts of trading. You should always remember one thing that the FOREX market is really very volatile in nature and predicting some sort of changes in it, is not as simple as the trading chart may make it or they show it to you.

There are several Charting soft wares which are also available in the trading market. This software is the ones that allow you to make an input of your own raw data. And if you see this from other side of the mirror, I am very sure that you may choose to make use of the chart option which is available on the particular software system which you already have. If you are one of own kind and you have decided to choose a trading platform that is always provided by a trading broker who is having really very high standards, at that particular time you can also make use of these charts in order to track the trends of trading market.

Software programs are the ones that still exist and can actually help you in a great way in order to interpret the final results of the trading charts. You should always be able to interpret the results of these charts yourself before you start relying on some other trading program in order to help you out.

Is it safe to use the Forex Options?

Posted by Daytrader on under Daily Forex review | Be the First to Comment

Have you ever heard about the person named as George Soros? He is the legendary manager of Quantum Hedge Fund who has made a rocking profit of about one billion dollars just from a single bet. In the 1990s, this person was just sitting in his office to discuss about the forex markets along with his colleagues. Both of them thought that the British pound was highly priced and that the England banks would not be able to carry on with this price any further.

So, they both decided to buy ten billion dollars of calls and out options making use of all their funds and assets. George Soros was indeed wising to gamble everything only on a single bet. His knowledge about the forex market was quite precise. He was dam sure that his guess that the England bank would not be able to carry on the overpriced British pounds would be right one day. Soon after, the other currency speculations also associated it. A large selling pressure on the British pound was hence generated. The bank of England was unable to maintain this selling pressure for a long time and in a time period of one day had to keep the British pound out of the monetary system of Europe and allow it float freely.

The British pound sinked in worth and George Soros paid off the gamble. Now he is popularly known as the Man who broke open the England bank. Forex markets are very big. Each day around three trillion dollars are exchanged in the forex markets. A number of ways are available the forex traders are free to utilize any to gain profits from the instability in the forex markets.

Like a retail forex trader, you are able to trade any of these agreements like futures, spot and options. Swaps and forwards are 2 agreements that are also traded in forex amongst the big organizations such as hedge funds, corporations and banks.

What are forex options?

Forex options are nothing but derivative instruments that enable a person to sell or purchase the principal assets at a rate that is called exercise rate prior or on a specific date known as the striking date. You are not at all obliged to sell or purchase the currencies like that what happens in case of futures.

The principal asset in the forex option is currency. It grants a person the right and not the obligation to buy or sell a particular mount of currency after paying the premium. You might or might not implement your right to sell or buy the currency. If the market rate of a particular currency is above or below the striking price you are able to sell or purchase that currency by implementing your options.

Daily Review 30/10/2009

Posted by Daytrader on under Daily Forex review | Be the First to Comment

USD Dollar (USD)

The Dollar fell against most of its counterparts after better than expected GDP increased investor\’s appetite for risk. The Gross Domestic Product was released at 3.5% vs. the 3.1% expected. Initial Jobless Claims came out slightly worse than expected at 530K. After 4 straight days of drops Wall Street headed for a steep rise after the GDP showed that the U.S. economy expanded at a 3.5% annual pace in the 3Q and fueled stocks. Dow Jones jumped by 2.05% to 9,963 and the NASDAQ rose by 1.84%. Crude oil jumped by 3.19% closing at 79.93$ a barrel as the surprising US economy expansion signaled for a potential increase in oil demand. Gold (XAU) trades at $1,047. Today, Personal Spending is expected at -0.4% vs. 1.3% previously and Employment Cost Index is expected unchanged at 0.4%.

EURO (EUR)

The Euro continued towards its fourth monthly rise against the Dollar as the U.S.’s return to growth renewed optimism a global recovery will quicken, aiding demand for higher-yielding assets. German Unemployment Change came out better than expected at -26K vs. expected 15K. European markets rose more than 1%. Commodities recovered from previous losses and posted important gains. Overall, EUR/USD traded with a low of 1.4682 and with a high of 1.4857. Today, European CPI Index is expected at -0.1% vs. -0.3% previously.

EUR/USD – Last: 1.4830

British Pound (GBP)

The Pound climbed against the Dollar for a fourth day after reports showed U.K. mortgage approvals increased more than forecast last month and the U.S. returned to growth in the third quarter. Overall, GBP/USD traded with a low of 1.6337 and with a high of 1.6602. Today, Nationwide Housing Price Index is expected at 0.7% vs. 0.9% previously.

GBP/USD – Last: 1.6560

Japanese Yen (JPY)

The Japanese currency fell during the European session and continued its plunge after the release of a government report that showed Japan’s jobless rate unexpectedly dropped for a second month, reducing demand for the relative safety of the Japanese currency. Overall, USD/JPY traded with a low of 90.24 and with a high of 91.60. Today, The Bank of Japan (BOJ) Press Conference is expected. The interest rate is expected unchanged at 0.1%.

USD/JPY-Last: 91.30

Canadian dollar (CAD)

The Canadian Dollar climbed from a 3 week low against the Dollar as stocks and commodities rallied after the US GDP report showed the American economy grew in the third quarter for the first time in a year. Overall, USD/CAD traded with a low of 1.0654 and with a high of 1.0820. Today, Canada\’s The Gross Domestic Product (GDP) is expected at 0.1% vs. 0% previously.

USD/CAD – Last: 1.0670

Research by http://www.ufxbank.com

GoLearnForex Daily Technical Analysis

Posted by TomShort on October 29, 2009 under daily technical anlysis | Be the First to Comment

AUD/USD:

The AUD continues its recent retrace.  Many traders use different time frames for different currency pairs.  The longer the time frame the more valid the pattern you are charting is.  Moving Averages are basic tool that even the most sophisticated trader needs to always be cognizant of.  The markets tend follow the moving averages generated off of the daily charts.

In Chart below I use a moving average from an 8 hour chart.  I strongly encourage traders to be vigilant of at least checking a weekly, daily, 8 and or 4 hour chart and then any time frame less than 4 hours that you may want to look at.

INSERT CHART

You can see that the yellow line representing the SMA 50 was breeched and prices continued a steady fall (The Red line is the 100 SMA).  There are also a number of near candle formations that support this price depreciation.

Circled in blue is a near Falling Three Candle pattern.  Typically you have a red candle followed by 3 or so small green candles that are contained by the original red candle.  Following the last green candle is another red candle with price closing below the original red.  The Falling Three pattern is nearly followed by Three Black Crows.  This candle pattern forms when you have the candles each open in the midsection of the proceeding candle but also close lower than the proceeding candle.  This pattern nearly forms between the 2 white lines.

GBP/USD:

This pair has been range bound since May.  When a pair trades in a range, price is confined to a narrow margin of highs and lows.  In the Chart below the 2 red lines represent the range support and resistance lines.

The 2 red boxes indicate when minor breakouts have occurred.  The tops and bottoms of the boxes would be your absolute stops depending on the handle you entered the trade at.  Another point of consideration is the 50 SMA and 100 SMA.  You can see that the SMA’s are also moving sideways.  Price typically pops when it passes above/below a significant SMA.  With SMA moving into a sideways march we are approaching congestion on this pair and that should signal another breakout.  Obviously if the dollar continues to strengthen as it has GBP should be headed south.

INSERT CHART

Analysis by http://www.golearnforex.net

Learning Forex trading basics is essential for newbie

Posted by TomShort on under Daily Forex review | Be the First to Comment

Several e-books, e-guides and courses target those people who, want to learn the Forex trading basics with the foreign exchange market as the means of currency trade, that are difficult to grasp. E-books are a great way to learn Forex trading basics thoroughly. They give you clear understanding of Forex basics. A beginner must take Forex education. You can even get best Forex trading knowledge through courses. You can learn them from the comfort of your home as they are easily available on the Internet. This kind of explanation of the data refers to the interest rates, motion of currency price trends and commercial brokerage activities.  The trading course for newbie must include certain things such as how to make price actions, Forex trends predictions, the basics of winning contract on Forex, an introduction, crosses and finding the proper Forex broker.
In addition to this, Forex trading for newbie requires answering the main quandary and solve the major difficulties of a beginner to the system. Hence, you must learn about the time frames as well as the best moments to make transactions. Newbie can learn how to do Forex trading from experienced Forex traders. Several times setting the time frame relies on the data you can decode from indicators as well as technical charts. Transactions must not be made erratically but only after examining the Forex charts when you feel contented with the situation. You should understand that many people lose than gain, which is the important part of the data that you must receive in any way dedicated to Forex trading for newbie. Newbie are eager to earn money and commit mistakes out of greed, impatience and ignorance.
They stand for the 95% of Forex investors who lose in trading business. Hence, only with determination, strategic actions and preservation, you will be a part of the 5%, which continuously win. Other issues include the choice of the pairs on which to trade. Tips about Forex trading business for newbie identify the significance of not working with more than 3 pairs when you know only the basics of trading system. Choosing proper pairs is the key factor in getting success in Forex trading business.
Forex trading for newbie is approached by working in partnership with a specialized broker, who is able to manage your Forex accounts. You do not require big deposit accounts. In mini Forex trading accounts, you are able to start with as little as $25. You are also able to set deposits between $1,000 and $5,000 depending on the brokerage company. Until traders learn the trading mechanisms, they may lose something and make small gains. However, in time things can evolve for the better.

Daily Review

Posted by Daytrader on under Daily Forex review | Be the First to Comment

USD Dollar (USD)

The Dollar rose across the board. A rise in risk aversion following an unexpectedly drop in New Home Sales sent stocks lower worldwide. The Dow Jones fell for the 4th consecutive session and ended at 9,763.The Standard & Poor’s 500 Index dropped 2% on concern a rally in equities this year outpaced the prospects for economic growth. New-home sales unexpectedly fell last month to an annual rate of 402K, from a revised 417K pace in August. Crude oil fell from $79 a barrel to $77.20 on stronger Dollar. Gold (XAU) continues to move away from the highs of the year and fell to test levels below $1,030 an ounce. Today, The Gross Domestic Product (GDP) is expected at 3.1% vs. -0.7% previously. The Initial Jobless Claims are expected at 520K vs. 531K previously.

EURO (EUR)

The Euro kept weakening versus the Dollar for the 4th day in a row. The currency slumped against Dollar and Yen, reaching a 2 week low against both safe havens. The German Consumer Price Index (CPI) came out as expected at 0.1%. Overall, EUR/USD traded with a low of 1.4690 and with a high of 1.4840. Today, The German Unemployment Change is expected with 15K vs. -12K previously. The German Unemployment Rate is expected at 8.3% vs. 8.2% previously.

EUR/USD – Last: 1.4700

British Pound (GBP)

The Pound failed to hold above 1.6400 versus the Dollar finding support only at 1.6360 following economic data in the U.S and Dollar\’s strength. GBP/USD peaked at the highest price for the current week but it was unable to hold versus the strengthening Dollar. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6466. Today, Net Lending to individuals is expected unchanged at 0.7B. The Mortgage Approvals also expected unchanged at 52K.

GBP/USD – Last: 1.6368

Japanese Yen (JPY)

The Yen rose sharply versus most majors as weak economic data sent world stocks lower fueling risk aversion. The Yen reached the highest in 2 weeks against the Euro amid signs the global economic recovery is losing steam, damping demand for higher-yielding assets. Industrial Production came out 1.4%better than 1.1% expected. Overall, USD/JPY traded with a low of 90.54 and with a high of 91.80. Today, Household Spending is expected lower with 1.2% versus 2.6% and Tokyo Core CPI is expected with -2.0% versus -2.1% prior.

USD/JPY-Last: 90.42

Canadian dollar (CAD)

Canada’s currency depreciated against its U.S. counterpart to the lowest level in more than three weeks as declines in crude oil, the nation’s largest export, and stocks damped demand for higher-yielding assets. Overall, USDCAD traded with a low of 1.0636 and with a high of 1.0810. Today, The Raw Materials Price Index (RMPI) is expected at 1% vs. 3.7% previously.

CAD/USD – Last: 1.0790

Research by http://www.ufxbank.com

Managed Forex Account – 9 Features Reconsidered

Posted by Daytrader on under Daily Forex review | Be the First to Comment

A number of misconceptions are doing the rounds about what Forex market and Managed Forex accounts are all about. Many myths are going all around the internet about what exactly the Forex market and managed Forex accounts are really all about. The foreign exchange market can be merely said to be a market where currency of one country can be exchanged for another. So the Forex market can be used by several organisations to travel across countries, hedging as well as for merely some business.

Buying low or selling high are the ways by which a profit can be made in the arena of Forex trading. This mode of trading has gained quick popularity due to ease of trading it online. The following points will hold up the 9 myths that are commonly associated with this form of trading:

1. It is a child’s play to deal in Forex market. Many people get into this trade without even thinking how difficult it can be. Some people think theoretical knowledge is enough whereas others have the notion that it is completely automated package that we can just purchase.

We all know this is not true. Time, money and effort are required in great deal for starting. So if one is not fine with this idea, the Forex market should not be his aim.

2. There is hell and heaven difference in between stock market and Forex. One must not be too confident. Just because he did some good business in stock market he will be lucky in Forex trading too. The differences that normally occur are:

The foreign exchange is open 24 hrs a day, so it is a bit difficult to keep a watch throughout the whole day. Buying on hold is not possible in this type of a market..

3. Since it is not possible for any Forex trader to monitor the going on throughout the day he has to apply or use automated trading software that can do the job on his behalf.

4. Strategies that worked wonders for someone else may not work for you too. You always need to keep your eyes and ears open. If not watchful you have to repent later on. So manage your money by your own. Have better understanding of what you are doing.

5. So as to say the Forex market is not demanding a commission but as a Forex trader you end up paying the broker a cut from your share. So from your spread they are gaining. The difference between a bid and ask can be said to be a spread.

6. People can be conned – People who are not careful enough to win, like to put the blame on the Forex market. Lots of investors are dealing with it and this statement is not true. You have to give it time and it will give you profits.

7. It is all about trial and error method. No one can make exact predictions about the profitable income being made. If you were aware about the rates that will come up exactly then the whole purpose of having a foreign exchange is killed. Here you make money on odds.

8. Having a very complicated trading strategy is a must. It is in fact the opposite. A sorted out scheme can do the wonders if followed strictly and with careful calculations.

9. A lump some of money is required to trade in the Forex market. Not at all! Even if you invest a small amount Forex has provisions Trading can be successful by that too.

But if you are using Managed Forex account, one thing you have to take care of. Never let the pro manager have more knowledge than you do.

GoLearnForex Daily Technical Analysis

Posted by TomShort on October 28, 2009 under daily technical anlysis | Be the First to Comment

USD/CAD:

We have noted several times a formation we refer to as a Step pattern.  More commonly this is identified by Lower Lows and Lower Highs and vice versa.  We picked up on this pattern emerging on a 4 hours chart.  We identified the possible start of this pattern shortly after the BOC  publicly declared it’s sentiment for a “weak Canadian Dollar”.  We assured you that there would still be time to catch this move even if you could not trade the actual news.

We suggested that you wait for the Step to appear and buy on the dip which was a confirmation of our pattern formation. On the graph that it is depicted near the 3 and a yellow circle. The exit for taking PNL we had at 1.0660 a prior support resistance point.

INSERT GRAPH

EUR/USD:

The Squeeze Play.  We talked about this move where we are seemingly forced into a breakout.  In one of our earlier pieces we mentioned that our experience told us not to bet on the Squeeze Play, meaning trade against the direction of the existing trend.  I must admit we got carried away by the hoopla of crossing 1.50.

So the question you all should pose” is why in this case do you bet against the trend when one of the number one rules of technicians is never bet against the trend”.  The answer is based on the number two rule of technicians and that is; trade for the outcome that has the highest statistical probability of occurring.  To explain this further lets pose a question.  Why didn’t the market make this move a while ago similar to the recent strong moves in CHF  & AUD?

INSERT CHART

The answer is the Strength of the move was deteriorating in advance of 1.50.  Every trader had their   eye on  1.50, but obviously no one was a real buyer (for now) otherwise at 1.4830 when momentum started to stall we would have had traders continuing to bid up the EUR.  Lastly, when price action was negligible on the big cross of 1.50 that should have been another tip that there were no big orders lined up to continue buying north of 1.50.

We added  a MACD to indicate when the momentum started to wane. There are number of overbought tools on your platforms that you can use, from Stochastics and Oscillators to something as simple as the RSI.

Analysis by http://www.golearnforex.net

Daily Review

Posted by Daytrader on under Daily Forex review | Be the First to Comment

EUR/USD – Last: 1.4811

GBP/USD – Last: 1.6358

USD/JPY-Last: 91.18

USD/CAD – Last: 1.0664

Research by http://www.ufxbank.com

Smart Trading Strategies by Forex Money Management

Posted by TomShort on under Daily Forex review | Be the First to Comment

In Forex business, risk management is a one of the most fundamental factors. If money came so easily in Forex Trading everybody would be rich by now. To make money in Forex, the trader needs to manage their money to profit in this business.

Before the trader can actually make money in Forex Trading needs to survive in the confusion of trading. All good traders are actually very good survivors at the first place. Once an investor masters that part of the Forex process and they can start thinking about making money. Successful Forex trading methods are out there but it is important to learn patience and conservatism primarily. These are keys to survive in the Forex business.

Resolve a manageable percentage of your total investment before you finally decide on the amount you want to invest. Two percent is an instance of a good portion of an investment. With the power of margin, a 2 percent exposure can be a considerable trade for a careful investor without being too destructive should the trade fail. With a 2% trading strategy, failing 10 consecutive trades will have the investor losing less than 17% of the account compared to a 10% trading strategy where the investor loses over 60% of his capital. A traditional strategy can pay off in the long run with the help of margin.

Managing Margin is the margin of a crucial step in an investor’s Forex strategies. Without a solid understanding of Margin, the investor will not endure past his second trade. It is essential to know when to put in more lots in a trade and when to hold back. Although you could probably gain more with higher lots but he puts himself in a greater amount of risk as well.

After learning the process to ride the market and survive, the next thing a good Forex trader needs to learn is how to make money. Making money is primary concern of why a person goes into trading Forex in the first place, which makes calculating risk an integral part of it. For example, a fifty percent risk to reward ratio would not be a good way to earn money in Forex. In fact, to still make money in this business, the ratio should at least be 3 to 1 or winning at a price of $300 and losing at a price of $100. With that Forex strategy, an investor only needs to win half of the trades to end up a winner.

For controlling the ratio of wins and losses, an investor should also master the Forex trading systems and apply the proper stops and limits to protect their money. The ardent beginner in the Forex market can rely on Forex robots. These have impressive track records of success when it comes to Forex.