Posted by TomShort on December 16, 2009 under forex market | 
Electing a perfect FOREX broker for your trading is really a tough decision to make. Most of the people who want to be known as a successful trader have different needs as well as abilities. So every other trader has a specific broker who can fulfill all his needs. There are quite a large number of brokers who possess different features; they even have a big time difference in their capabilities, in their weaknesses as well as in their advantages. It all depends on you that which one suits your requirements in a best possible way. But before going ahead in this article, first we are going to discuss the question that must have arise in your mind and possibly that is- “Is a FOREX broker that we are choosing is under some sort of regulation or not?”
The regulated types of FOREX brokers are obligatory to keep all the transactions that they made should be in a transparent manner with all the documents having the financial reports as these are the ones that must be submit to the regulatory authorities of your nation. Every nation has its own regulatory authority, but all of them have a same way of working. Regulatory authority has the full power to grant the command of trading to a trading broker and even has the right to take it back, if the broker is found guilty in any case. And when so ever a fail to fulfill his or her duties, these regulatory authorities have the full right to put a fine on them or they even have the power to terminate their trading membership. A regulated FOREX broker is the one who agree to the resolution of any disagreement, increasing the level of protection that is being given to an investor.
It’s the responsibility of your broker to make sure that the money you have invested in FOREX market is in safe hands. There is also a chance to file an appeal in the case of bankruptcy or any other miss happening. In addition to all this, a regulated firm of a FOREX broker will also make it sure that the number of problems coming in your way of trading is as few as possible. And this thing is done by the help of various trading platforms, which are being offered to the traders by their respective brokers.
In order To find out a regulated firm of FOREX broker, first you need to find out that in which particular country the broker is registered in. a number of countries have flexible laws for regulated FOREX traders, whereas some others are very strict about the laws of regulation. There are local regulatory authorities which are responsible for regulating your broker.
Posted by Daytrader on under forex market |
There are a number of forex trading tools that the forex traders can make use of successively in their trade. Even with the massive amount of tools available to you, the number of forex traders making it to profits considerably is very less. Then the question here arises is that if it is not these tools that make the trader a successful one, than what is it? Some of the forex trading tools needed to trade the currencies are very basic as well as obvious. However, it is obvious that if you are not having a direct effect on your trade results, you need to influence your success in forex trading in a very significant as well as subtle way.
One of the basic reasons behind the failure of the traders is difficult in finding their way towards success. They are not able to view how all the different aspects function together in the currency exchange market. This capability of observing the scenario is very important to become a successful trader in forex as it influences the pattern that you are using your tools of trading in order to generate more profits from the markets.
Let us learn some of the basic tools required to start a trade in forex:
There are some of the important tools that one will need definitely anytime while trading the forex currencies, however do not consider these s the only tools needed for the success of forex trading. These tools include a forex trading system, forex trading account, forex trading platform, and your forex trading risk capital.
In a number of cases, the new forex traders have a tendency to assume that it is everything required to become a successful and a profitable trader in forex. It is quite easy as well as simple. No doubt, that this is a true fact and this is everything required, as such. However, there is something that is not so obvious and it is what is needed by a person to commence their trade, it is never always what is required to trade profitably.
The success of the forex markets is a journey wherein the traders are regarded as a path of learning and development. If you make use of these 4 tools of forex trading in your business, you will see that the profit is running along with you.
One has to indeed learn to develop the skills like that of a currency exchange trader, which is of great importance to be successful. The product quality is only because of the craftsman’s quality. The more talented and skill you are, more you will understand and use the tricks for the tolls in forex trading.
This article will serve as a useful guide to you while trading in forex. You can use it in your real time trade.
Posted by Daytrader on under Daily Forex review |
USD Dollar (USD)
The Dollar gained versus 15 of the 16 majors as Industrial Production rose by 0.8% versus 0.6% expected signaling U.S economy is expanding. The FOMC is still expected to keep the Interest Rate today at 0.25% but more economists expect a rate increase to 0.5% until June 2010. PPI came out stronger with 1.8% versus 0.8% expected and TIC Long Term Purchases came out weaker with 20.7B versus 38.3B prior. NASDAQ and Dow Jones declined by -0.50% and -0.47% respectively as wholesale inflation raised concerns the Fed will be forced to raise interest rates. Crude gained by 0.17% closing at 70.81$ a barrel ending a 9 day declining streak. Gold (XAU) gained by 0.29% closing at 1125.70$ an ounce. Today, Building Permits are expected with 0.58M versus 0.55M prior. CPI is expected with 0.4% versus 0.3% prior and Core CPI is expected with 0.1% versus 0.2% prior. Investors are waiting for the FOMC Interest Rate decision that is expected to remain at 0.25%.
EURO (EUR)
The Euro fell versus the Dollar and the Pound after weaker French CPI results, which triggered the Euro\’s decline. German ZEW Economic Sentiment came out 50.4 slightly better than 50.1 expected but ZEW Economic Sentiment came out weaker with 48 versus 50.9 expected. More countries in the Euro zone show signs the recession is still alive. Greece is struggling with its debt and Austria nationalized Hypo Bank. Overall, EUR/USD traded with a low of 1.4503 and a high of 1.4659. Today, German and French Manufacturing PMI are expected slightly stronger. CPI and Core CPI are expected unchanged with 0.6% and 1.2% accordingly.
EUR/USD – Last: 1.4535
|
Resistance
|
1.4575
|
1.4625
|
1.4685
|
|
Support
|
1.4500
|
1.4445
|
1.4410
|
British Pound (GBP)
The Pound weakened versus the Dollar but gained versus the Euro after CPI came out 1.9% versus 1.8% expected. The CPI figures show inflation is advancing and the U.K won\’t be able to keep interest rates at their record lows. Overall, GBP/USD traded with a low of 1.6205 and a high of 1.6319. Today, Claimant Count Change is expected with 13.9K versus 12.9K and MPC Member Miles will speak in London.
GBP/USD – Last: 1.6275
|
Resistance
|
1.6315
|
1.6350
|
1.6380
|
|
Support
|
1.6210
|
1.6160
|
1.6105
|
Japanese Yen (JPY)
The Yen dropped versus the Dollar and the Euro as a near US interest rate increase seems likely in the upcoming year. Overall, USD/JPY traded with a low of 88.61 and a high of 89.95 and EUR/JPY traded with a low of 129.54 and a high of 130.73. No economic data expected today in Japan.
USD/JPY-Last: 89.65
|
Resistance
|
89.95
|
90.40
|
90.75
|
|
Support
|
89.30
|
88.75
|
88.35
|
Canadian Dollar (CAD)
The Canadian Dollar followed the trend and fell against the Dollar but gained versus most other majors as Crude prices rose slightly ending its 9 day decline. Leading Index came out better with 1.3% versus 0.6% and Labor Productivity came out weaker with -0.2% versus -0.4% expected. Overall, USD/CAD traded with a low of 1.0552 and a high of 1.0611. Today, Manufacturing Sales is expected with 1% versus 1.4% prior.
USD/CAD – Last: 1.0615
|
Resistance
|
1.0670
|
1.0700
|
1.0750
|
|
Support
|
1.0580
|
1.0550
|
1.0515
|
Research by http://www.ufxbank.com
Posted by TomShort on December 15, 2009 under daily forex analysis |
NZD Beginning to Falter by GoLearn Forex
NZD/USD:
The New Zealand Dollar is starting to falter and like most of its G-10 counterparts it is holding at pivotal levels against the Greenback. One slip either way may send the currency tumbling or ready to resume its advance on the Dollar. We have mentioned the Kiwi in the past as we feel it may yield the biggest percentage loss when the Dollar does finally rally.
In the graph below we see the formation of a downward sloping Triangle beginning to emerge. The Kiwi has been riding the 50 day SMA as support on its path to .7600. You can observe that NZD peaked in late October but after 3 attempts it has failed to break the October high.
Short term support has been holding near .7100 represented by the bottom leg of the triangle. As the hypotenuse converges on near term support the more likely it is that a breakout will occur in the direction of the slope. We have also diagrammed a pattern we use often to identify trend and that is a step pattern whereby there are lower high’s and lower lows (or vice versa as the case maybe). Typically we like to see more obvious lower lows than what the Kiwi has shown us thus far.
The NZD is currently sitting below its 50 day MA, which we mentioned prior, represented support for the NZD’s move over the last 9 months. During the Dollar’s rally last week the Kiwi was able to bounce off of the 100 day MA but was not able to bounce back above the 50 SMA. As price action moves into the wedge of the triangle it may force price below the 100 SMA.
For good measure we added a Fibonacci Retrace starting back in March when the Kiwi dipped below .50 running through its most recent high in October when the NZD struck .7635. This data range produces the 23.6% Fibo Retrace at a handle of .6988. To trigger a strong short signal the Kiwi would need to take out the 100 day MA, near term support (the base leg of the triangle), and the Fibo 23.6% level, as we then target a .6500 handle. In order to resume a Long NZD position at this point the NZD would need to break north of the hypotenuse, the 50 day MA, and near term resistance at .7525.
Abu Dhabi Sending Financial Aid for Dubai World by GoLearn Forex
World Equity Markets gained some ground Monday amid assurances from Abu Dhabi that they would provide $10 billion in immediate financial aid to ensure Dubai World meets its $4.1 billion debt obligation due yesterday. The DJIA closed a shade above 10,500 after picking up 29.55 points.
The Greenback gave up a little ground yesterday as the DXY was down marginally to 75.352. Gold advanced slightly to 1,126.70 as the dollar showed some weakness. Oil was unchanged as it continued to hold below $70 a barrel.
In the U.K CPI data is set to print today. The Euro-zone’s Current Sentiment/Survey will publish today. In the U.S a number of economic releases are slated for today; Crude Oil Inventories, Gasoline Inventories, Total Net TIC Flows, Empire Manufacturing Index, and lastly PPI figures will print. In light of the Dollar’s recent rally expect that traders will be watching these numbers very carefully ahead of tomorrow’s FOMC rate decision.
Upcoming Forex Events for December 15, 2009
EUR German ZEW Economic Sentiment Forecast 50.20 Previous 51.10
CAD Leading Indicators (MoM) Forecast 0.60% Previous 0.70%
USD TIC Net Long-Term Transactions Forecast 43.00B Previous 40.70B
AUD GDP (QoQ) Forecast 0.40% Previous 0.60%
Analysis by http://www.golearnforex.net
Posted by Daytrader on under Daily Forex review |
USD Dollar (USD)
The Dollar weakened slightly versus the majors as the Dollar rally took a relief. NASDAQ and Dow Jones gained by 0.99% and 0.28% respectively as Dubai\’s bailout calmed investor fears. Crude weakened for the 9th straight day lowering by -0.43% closing at 69.57$ a barrel. Gold (XAU) gained by 0.54% closing at 1123.30$ an ounce. Today, PPI is expected with 0.8% versus 0.3% prior. Industrial Production is expected with 0.6% versus 0.1% prior. TIC Long Term Purchases is expected with 38.3B versus 40.7B prior.
EURO (EUR)
The Euro gained slightly versus the Dollar as Dubai World\’s bailout eased banks concerns of major write downs. Industrial Production came out as expected with -0.6%. Overall, EUR/USD traded with a low of 1.4607 and with a high of 1.4685. Today, German ZEW Economic Sentiment is expected weaker with 50.1 versus 51.1 prior.
EUR/USD – Last: 1.4655
|
Resistance
|
1.4685
|
1.4775
|
1.4825
|
|
Support
|
1.4585
|
1.4535
|
1.4470
|
British Pound (GBP)
The Pound gained slightly versus the Dollar but is still unable to break above or below the 1.6350 and 1.62 range. RICS House Price Balance came out weaker with 35% versus 39% forecast. Overall, GBP/USD traded with a low of 1.6188 and a high of 1.6324. Today, CPI is expected with 1.8% versus 1.5% prior.
GBP/USD – Last: 1.6300
|
Resistance
|
1.6340
|
1.6380
|
1.6425
|
|
Support
|
1.6250
|
1.6190
|
1.6150
|
Japanese Yen (JPY)
The Yen gained versus the Dollar and other majors after Tanken Manufacturing Index came out stronger than expected. The Yen is set to replace the Dollar in the Carry Trading as borrowing costs in Japan became almost as cheap as U.S loans. Overall, USD/JPY traded with a low of 88.32 and a high of 89.29 and EUR/JPY traded with a low of 129.18 and a high of 130.64. Today, Tertiary Industry Activity is expected with 0.5% versus -0.5% prior.
USD/JPY-Last: 88.75
|
Resistance
|
89.00
|
89.25
|
89.85
|
|
Support
|
88.35
|
88.00
|
87.40
|
Canadian Dollar (CAD)
The Canadian Dollar remained unchanged versus the Dollar as no major news was released and Crude prices were merely changed. Overall, USD/CAD traded with a low of 1.0484 and a high of 1.0623. Today, Leading Index is expected with 0.6% versus 0.7% prior and Labor Productivity is expected with -0.4% versus 0.0% prior.
USD/CAD – Last: 1.0580
|
Resistance
|
1.0635
|
1.0670
|
1.0700
|
|
Support
|
1.0550
|
1.0515
|
1.0480
|
Research by http://www.ufxbank.com
Posted by TomShort on under forex market |
One has to have a lot of knowledge when he enters into the forex market for trading. Vast knowledge about the current market and the pas market is required. The prediction of future trends is also very much necessary for the trader entering the forex trade. The knowledge of forex trading business is very much essential as it helps the traders to take vital decisions with accuracy and make them gain profits. Information regarding all these is discussed in this article. The details that may be required for a trader and the various conditions are all discussed here in order to penetrate into deeper things in forex trading business. The various researches have been carried out on forex trade and the summary of all this is given in this article. Various questions of budding traders have been answered in this article. Questions dealing with the selling and buying of commodities, the edge over making profits from difference in currency rates have been answered here. Other questions regarding reaping heavy profits and deployment of forex brokers are also discussed.
The need of a broker for any trader is very much necessary but the need for a broker for a beginner is a very essential thing to be done. The beginner has to choose from a never ending list of brokers and he has to make the right choice. The beginner is to be given a list of brokers with all necessary information. The information such as reviews, offerings etc need to be furnished. This will certainly help the beginner to know about various brokers and help him to select a broker from the lot. The provision of details plays a vital role in helping the beginner to choose the right forex broker.
The next thing that has to be seriously taken into account is the forex news. All traders should keep looking into the news paper for updates. Missing of updates or negligence can wreck havoc in a trader’s investment. So the traders should always be connected with the forex new column.
The section containing the glossaries also need to paid heed. This section updates the traders about the various rules and principles that are being implemented in trade business. Ignorance to such knowledge holds back the trader from moving forward with traders who have kept in touch with this section. It is always wise to be up to date with news happening in the market. The ignorance reduces the chances of a trader making a high profit at a very rapid rate. The better the knowledge about glossary in the market, the better the trader will be able to fair in the market.
All these information would be helpful for the traders who are new to the market to keep up with other traders.
Posted by Daytrader on under forex market |
The popularity of the Forex Market has been growing extremely well. It has been observed from recent study that, Forex Trading is one among the best methods to gain large profits. This is because; the Forex Market deals with the business of money, which is nothing but currency exchange. Many other competitors are now offering many platforms and services online due to the popularity of Forex. On the other hand, the competition within the Forex has also increased very much. Many people are striving hard to obtain huge gains, and in the process, they get into a completion in which the opponents are fellow traders. Therefore, one needs to be well educated about the Forex Market and extremely talented to be one among the highly successful Forex Traders.
One program or system that can help a trader to be successful in Forex Trading is the Forex Robot. This is program will help a trader to survive well through the complicated world of the Forex Market. There are many advantages for which one is recommended to use Forex Robot. The most important advantage is the facility of automatic Forex Trading. By this tool, it can evaluate the right trading move. It is also a 24×7 service, even in the absence of the owner. Newcomer entering into the Forex Trading is highly recommended to use the Forex Robot. Another important advantage of this program is that it can do the trading with full safety and a high success rate. One always has a higher chance of winning in the trading business, if he or she is using the Forex Robot. And also, a robot is not at all affected by the emotional factors, as humans are affected. This assures that the decision and the move taken by the Forex Robot is mostly the right judgment. In addition to the above defined features, a Forex Robot can also track opportunities in the Forex Market, update and save the data about the current trading trends without any human errors.
One should know to identify the original platform from the duplicate ones, before purchasing a Forex Robot. There is lots of hoax software available in the market, which promises to work perfectly, but they don’t. If anyone falls for it, then devastating consequences has to be faced. Finding a real, working Forex Robot is really a hard task. Therefore, one should be very careful and cautious while selecting the software, as purchasing software which does not suit one’s style of working, will be just worthless and all the money spent on it will be a waste. One should always remember to read the user reviews about the platform and to purchase the platform only from a reliable seller. Thus it is evident from this article that a trader can be highly successful and gain large profits only by using the proper platform.
Posted by TomShort on December 14, 2009 under daily forex analysis |
Euro – Headed for a Tailspin? By GoLearn Forex
EUR/USD:
The EUR is perilously close to falling into a tailspin. We have been stating for some time that a candle appearing below the 50 day Moving Average (MA) would generate a strong signal for a Short entry. As you can see in the Graph below that signal occurred last week, with the 50 day MA currently holding at 1.4880 while the EUR is trading at 1.46.
The EUR is now on the cusp of an even larger fall. It closed last Friday’s session at the 100 day MA an even more significant breach than the 50 day MA. Perhaps even more troublesome for the EUR is that it is just a hairsbreadth above 61.8% Fibonacci level at a handle of 1.4621.
INSERT CHART EUR
A close below the 61.8% Fibo level coupled with a close below the 100 day MA as they converge may equal real trouble for the EUR. The EUR has not been south of the 100 day MA since April 2009 which coincidently occurred when the 100 day MA and Fibo 23.6% level converged. The EUR proceeded to advance 14.6% from that point. We therefore target the 50% Fibo level with a handle of 1.4184 as the next support level should the EUR breach the 61.8% Fibo level.
USD/CHF:
The CHF is another currency holding at a very pivotal level. With Friday’s session closing just below the 100 day MA the CHF is trying to hold its ground against the Greenback. The Swiss Franc has been one of the benefactors of Gold’s jump in value. However, as the Dollar has rallied and Gold prices have begun to fall so has the CHF.
The Franc closed above its 50 day MA for the first time since August, representing only the 3rd such close since April of 2009. This coincided with it’s last close above the 100 day MA. The Franc has another issue to contend with and that is the 23.6% Fibonacci Retrace level created from the CHF low of 1.20 back in March of 2009.
INSERT CHART CHF
If the CHF closes above the 100 day MA and the 23.6% Fibonacci level at a handle of 1.0402 is breached then we would expect the CHF to test support at the 38.2% Fibo level or 1.0701.
Bona Fide Recovery Seems in Order by GoLearn Forex
Global Equity Markets closed higher as the prospect for a bona fide recovery now seems assured. The Markets were able to shake off credit fears and focus on continued positive economic data coming out of the U.S. On Wall Street the DJIA closed up 65.67 points to 10,471.50 on better than expected Advanced Retail Sales figures.
The Greenback continued it rally as it advanced on positive economic data, breaking the 9 month long “positive equities to poor dollar” correlation, for a second time in 1 week. The DXY touched 76.725 before retreating slightly to close at 76.573. Another positive session for the Greenback and it may take out the 100 day MA.
In the commodity space both Gold and Oil were down. Gold lost 15.60 to close Friday’s session at 1,115.40 while Oil closed just below $70 a barrel for the first time since September 29th. Gold has lost nearly 9.5% since its high on December 3rd and is just a few dollars away from closing below its 50 day Moving Average.
In the Euro-zone for Monday, Employment figures will be published on Tuesday. U.S. PPI numbers will print as well as the Empire Manufacturing data. In Australia, GDP numbers will hit the wire on Wednesday, as will Housing Starts and Building Permits in the U.S. However, investors will be tuned in on Wednesday to the FOMC rate decision. Although no change in rate is expected, traders are hoping for the accompanying statement to shed light on future rate hikes and economic policy as continued positive economic data continues to print.
Upcoming Forex Events for December 14, 2009-12-14
CHF PPI (MoM) Forecast 0.20% Previous -0.40%
EUR Industrial Production (MoM) Forecast -0.50% Previous 0.30%
CAD Capacity Utilization Rate Forecast 67.80% Previous 67.40%
AUD RBA Meeting Minutes
Analysis by http://www.golearnforex.net
Posted by TomShort on under forex market |
The retail market of FOREX trading has really very long and a momentous leveraging grant, but recently only this has drawn closer towards the threats by FINRA.
I know you all must be thinking that what this FINRA is. But don’t worry. In this particular article we are going to discuss about this term. FINRA is defined as the biggest as well as independent regulator of securities in one of the leading country of the world, which is the United States of America. In view of the fact that the world wide network connection known as Internet; is the reason for hard core boom in the area of retail FOREX. There are quite a large number of FOREX brokers who have been known in the world of FOREX trading for offering high amount of leverage on the trading accounts off all their clients and this amount of leverage range anywhere from 50/1 to 400/1. FINRA is the one that is asserting that the change that is being anticipated in the trading world would surely be serving the purpose of protecting all their investors from unnecessary and large amount of risk that is associated with trading market.
However, this above mentioned proposal is not able to fulfill the desires of FOREX brokers. It has been assumed that mostly all the traders are not able to make right use of the trading leverage properly. Having the great capabilities of leveraging is not as good as the concept of over-leveraging. Making use of this concept is exactly the thing that proposal of FINRA is unable to be familiar with; as an alternative, control over your trade or power of leverage just allows a particular trader to put into effect exact threat management in connection to the range of their trading positions. For an instance, if a particular trader desires to risk around 1% of his or her total trading capital per position, then it’s for sure that he or she would be making use of the option of leverage in order to determine the exact amount that a trader is willing to put in risk per pip, and all this is totally based up on the extent of the option of stop loss. Having the great capabilities of leveraging gives full authority to a trader to make adjustment with the exact size of their stop loss and this whole process is carried out dynamically, in order to make accommodation with the existing levels of volatility of the trading market, and at the same time they need to maintain a particular and a fixed position of risk, in spite of the fact that whether they are putting 10 pips or 1000 pips into risk. And all this is solely decided by the trader, who is making a trade.
Posted by Daytrader on under forex market |
Some of the points that are actually dangerous for the process of your successful and profitable trading are as follows:
Facing a big time loss is the end of your trading world!
If you are under the assumption that there is a thing as FOREX system OF trading that works for100% at a time, then you are totally wrong; as there is no such thing that can give you its hundred percent and that too at each and every point of your trading. And believe there is no need to be hundred percent right in this trading market; you can become extremely rich by being correct or accurate for only about 10% of the total times. Kick out this word perfectionist from your mind. There is a strong need for you to open up your mind to much larger frame of pictures. There is an aspect in the world of FOREX trading, which is believed to be the most important thing and that is the ratio of winning verses losing. It actually doesn’t matter that how persistently you had face a win or a loose; the thing that really matters is that what is the actual amount of money that you have gained at the time of winning and what is the exact amount of money that you have lost at the time of losing a trade! You just need to give attention to profits that are coming on monthly basis, and not on each and every single trade that you make.
The next crucial point of discussion about this FOREX market is managing your hard earned money. You cannot afford to ignore the aspect of capital management.
Money management is believed to be as one of the most important area of interest in the field of FOREX trading. The actual intention behind following the principle of money management is to safe guard you from all sorts of risks that you may overcome while making a specific trade and therefore it is responsible for growing the levels of your profits in a unwavering, and a steady manner. If you are not having the proper knowledge about the way of managing your hard earned money, then there are large numbers of chances that you may end up losing in a bad way. Without having a technique of money management in your hand, you will be finishing the entire amount that is present in your account of trading within 5-10 maladroit trades.
If you really want your name to be counted amongst the successful group of traders, then you should not dare to ignore the psychological issues.
Psychology is considered to a big really big part of FOREX trading. You need to train yourself in order to have control over your emotions, need to deal with all the losses and have to be aware of the fact that success is the thing that does not depend on each and every other trade.
