The concept of spreads in the forex trading market is extremely complicated and difficult to understand. However, it is also a fact that it is an important and inevitable parameter that determines your ability to make remarkable profits.
What is Spread in Forex Trading?
Spread in Forex Trading
In the forex market, spreads are the difference between the offer prices and the bidding prices that are quoted in pips. For instance, the quote of GBP/USD is 1.8281/84 which means that the bidding price of GBP is 1.8281 US dollar while the offer price is 1.8284 US dollar. In this particular case, the spread is 3 pips.
Role of Spread in Forex Trading
Spread is an important parameter that helps brokers to make profit in forex trading. Wider spreads indicate a high offer price and a low bidding price. This simply means that you have to pay more when you buy and make fewer amounts when you sell out, this property makes the realization and estimation of profit difficult for forex traders.
Spreads & Trading Skills
The return which you get on your trading skills is greatly affected by the spreads. Being a trader, your ultimate goal is to make profit by buying low and selling high. Traders usually take a half-pip lower spread as granted, but in reality it can make an effective trading strategy into an ineffective strategy.
Spreads & Execution
You can achieve stability and success with spreads only if you work with appropriate execution. The quality of execution identifies whether you are going to get tight spreads or not. You must be aware of the denied trades, slippage, delayed execution and stop hunting which nullifies the effects of tight spread forex trade.
You must always take forex spread into consideration with the depth of the book. In most cases, forex brokers provide tight spreads only for capped trading volumes which are totally inappropriate for the traditional forex trading strategies.
What Forex Brokers Claim?
Tight Spreads
At present, almost all forex brokers claim that they are having the tightest spreads in the forex industry. However, spread terms and policies vary remarkably from one forex broker to another, besides the transactions that are not clear. Some brokers offer non-variable spreads that remain unchanged regardless of the quality of the liquidity of forex market. However, non-variable spreads are usually higher than that of the variable spreads.
Some other brokers provide variable spreads in accordance with the liquidity of market. For such brokers, spreads become tighter when the market liquidity is at good level, however, it widens when the market liquidity falls. There are various brokers who provide different spreads for different forex traders.
Forex traders who are having larger forex accounts or others, who carry out big trades, may get tighter spreads than other traders. Therefore, it is a wise idea to seek for a broker who is offering you the tightest variable spreads without any discrimination.
Friday, April 29, 2011
An Introduction to Forex Trading
One might think forex trading is a piece of cake until they enter in it seriously. Beginner forex traders must work hard to achieve real success in forex market as a beginner. Beginners must follow effective strategies; they must acquire effective money management skills and gain complete knowledge about forex trading.
Beginners Forex Lessons
If you are starting your forex trading beginners for very first time then you should take help from beginner forex lessons. This is because there is a huge traffic of forex beginner traders because of the incorporation of convenient and welcoming ways to join forex trading. Forex trading market is growing rapidly and its annual turnover is 1.9 million USD. Beginners should not take it easy. Beginner forex lessons will help forex traders to understand the buying and selling processes in forex market. In forex market, currency exchange trading occurs in pairs and at the same time buying and selling occurs.
Starters Forex
If you are starting forex trading with a starter forex then you must know about the rules of forex trading business. Particularly, you should know the basics of the buying and selling different currencies. According to recent surveys, government or companies that buy or sell their services and products daily in other countries constitute over 5% of the total profit generated in forex market. On the other hand, the remaining 95% profit is contributed by the speculation methods.
Dominant Currency Pairs
Beginner forex is a great helping tool for amateur traders. It provides them information about the perfect currency pairs that are dominating the forex trading market.
The actual dominating currency pairs in forex market are listed below.
- USD-CAD
- EUR-USD
- NZD New Zealand Dollar-USD
- USD-CHF Swiss Franc
- AUD Australian Dollar-USD
- USD-JPY
- GBP-USD
Forex Quote
Beginner forex will help you to read the forex quote. Basically, forex quote comprises of two numbers. These numbers are bid and offer. The best way to understand forex quote is to use the currency pair. For instance, consider the currency pair AUD/USD. The cost offered by the Australian dollar will act as the bidding price and it will be used by the traders as a price to buy the Australian dollar against the USD.
On the contrary, the price that is offered by the US dollar will act as the offer price and it will be used by the traders to sell the Australian dollar against the other i.e. USD. At 1 point, the base price value is taken in forex trading.
What is expected from Beginner Traders?
- Beginner forex traders must acquire right approach while working in forex trading. This is a beginner forex is all about; it helps beginners to understand the two approaches of forex trading. These two approaches include two different analysis methods. Beginner forex traders should either work with fundamental or technical analysis.
- Beginner trader should also make contact with a genuine forex pips to get effective and correct guidance.
- Beginner traders should also acquire correct risk and management skills.
Forex Pivot Point Calculators
In the Forex trading the technique of Pivot has been used for an extended time period. The trader used to apply this strategy to develop a thought process on the market path with the help of some easy computations
Forex Pivot Point
The Forex pivot point is actually the echelon where the path of market alters for a particular day. This is calculated with the application of easy arithmetic formulas. Besides this, the preceding day’s high, low and close points are also taken into consideration
These points can offer decisive support and resistance levels. Hence the pivot level, support and resistance levels computed with the help of these points jointly denoted by the terminology of pivot points.
Popularity of Pivot Points in Forex Market
The pivot points are well liked in the Forex trading market, because they offer the market prognosis.
You can apply the preceding day details to compute the prospective turning points on the existing day. Since large number of traders track these pivot points, hence the market generally respond at these levels.
Forex Pivot Calculator
Pivot point can be considered as an echelon where the traders response alters from bull to bear (bull and bear are the market terms to depict high and low activity). The computation of Forex pivot is not difficult at all. In fact, you will be able to locate a number of pivot calculators available on internet. With the help of these calculators, you can very quickly calculate the pivot point. The formula to compute pivot point is pretty easy
Resistance 3 = High + 2 ´ (Pivot – Low)
Resistance 2 = Pivot + (R1 – S1)
Resistance 1 = 2 ´ Pivot – Low
Pivot Point = (High + Close + Low )/3
Support 1 = 2 ´ Pivot – High
Support 2 = Pivot – (R1 – S1)
Support 3 = Low – 2 ´ (High – Pivot)
Resistance 2 = Pivot + (R1 – S1)
Resistance 1 = 2 ´ Pivot – Low
Pivot Point = (High + Close + Low )/3
Support 1 = 2 ´ Pivot – High
Support 2 = Pivot – (R1 – S1)
Support 3 = Low – 2 ´ (High – Pivot)
Hence, with the help of this Forex pivot calculator, if you have the following points
High Point: 1.2297
Low Point: 1.2213
Close Point: 1.2249
Low Point: 1.2213
Close Point: 1.2249
You will get the following figures with the above given formula
Resistance 3 = 1.2377
Resistance 2 = 1.2337
Resistance 1 = 1.2293
Pivot Point = 1.2253
Support 1 = 1.2209
Support 2 = 1.2169
Support 3 = 1.2125
Resistance 2 = 1.2337
Resistance 1 = 1.2293
Pivot Point = 1.2253
Support 1 = 1.2209
Support 2 = 1.2169
Support 3 = 1.2125
What does it indicate?
Keeping in view the above, if you acquire the preceding day’s high, low and close levels, you will obtain 7 points, i.e. three support levels, three resistance levels and one actual pivot point. If the market starts at more than the pivot point, then it signifies an extensive trading activity for that day. If market starts less than the pivot point, then short trades can be predicted on that day
Pivot points are the frequently utilized initiators for trading systems. If you have Forex pivot calculator, then you will find a great deal of assistance in your trading activities.
The Forex market has no specific opening or closing times; hence the most practical solution to consider the opening of market at 00:00 GMT (Greenwich Mean Time) and closing at 23:59 GMT.
Icelandic Kronur: Lessons from a Failed Carry Trade
A little more than two years ago, the Icelandic Kronur was one of the hottest currencies in the world. Thanks to a benchmark interest rate of 18%, the Kronur had particular appeal for carry traders, who worried not about the inherent risks of such a strategy. Shortly thereafter, the Kronur (as well as Iceland’s economy and banking sector) came crashing down, and many traders were wiped out. Now that a couple of years have passed, it’s probably worth reflecting on this turn of events.
At its peak, nominal GDP was a relatively modest $20 Billion, sandwiched between Nepal and Turkmenistan in the global GDP rankings. Its population is only 300,000, its current account has been mired in persistent deficit, and its Central Bank boasts a mere $8 Billion in foreign exchange reserves. That being the case, why did investors flock to Iceland and not Turkmenistan?
The short answer to that question is interest rates. As I said, Iceland’s benchmark interest rate exceeded 18% at its peak. There are plenty of countries that offered similarly high interest rates, but Iceland was somehow perceived as being more stable. While it didn’t apply to join the European Union (its application is still pending) until last year, Iceland has always benefited from its association with Europe in general, and Scandinavia in particular. Thanks to per capita GDP of $38,000 per person, its reputation as a stable, advanced economy was not unwarranted.
On the other hand, Iceland has always struggled with high inflation, which means its interest rates were never very high in real terms. In addition, the deregulation of its financial sector opened the door for its banks to take huge risks with deposits. Basically, depositors – many from outside the country – parked their savings in Icelandic banks, which turned around and invested the money in high-yield / high-risk ventures. When the credit crisis struck, its banks were quickly wiped out, and the government chose not to follow in the footsteps of other governments and bail them out.
Moreover, it doesn’t look like Iceland will regain its luster any time soon. Its economy has shrunk by 40% over the last two years, and one prominent economist has estimated that it will take 7-10 years for it to fully recover. Unemployment and inflation remain high even though interest rates have been cut to 4.25% – a record low. The Kronur has lost 50% of its value against the Dollar and the Euro, the stock market has been decimated, and the recent decision to not remunerate Dutch and British insurance companies that lost money in Iceland’s crash will only serve to further spook foreign investors. In short, while the Kronur will probably recover some of its value over the next few years (aided by the possibility of joining the Euro), it probably won’t find itself on the radar screens of carry traders anytime soon.In hindsight, Iceland’s economy was an accident waiting to happen, and the global financial crisis only magnified the problem. With Iceland – as well as a dozen other currencies and securities – investors believed they had found the proverbial free lunch. After all, where else could you earn an 18% by putting money in a savings account? Never mind that inflation was just as high; with the Kronur rising, carry traders felt assured that they would make a tidy profit on any funds deposited in Iceland.
At its peak, nominal GDP was a relatively modest $20 Billion, sandwiched between Nepal and Turkmenistan in the global GDP rankings. Its population is only 300,000, its current account has been mired in persistent deficit, and its Central Bank boasts a mere $8 Billion in foreign exchange reserves. That being the case, why did investors flock to Iceland and not Turkmenistan?
The short answer to that question is interest rates. As I said, Iceland’s benchmark interest rate exceeded 18% at its peak. There are plenty of countries that offered similarly high interest rates, but Iceland was somehow perceived as being more stable. While it didn’t apply to join the European Union (its application is still pending) until last year, Iceland has always benefited from its association with Europe in general, and Scandinavia in particular. Thanks to per capita GDP of $38,000 per person, its reputation as a stable, advanced economy was not unwarranted.
On the other hand, Iceland has always struggled with high inflation, which means its interest rates were never very high in real terms. In addition, the deregulation of its financial sector opened the door for its banks to take huge risks with deposits. Basically, depositors – many from outside the country – parked their savings in Icelandic banks, which turned around and invested the money in high-yield / high-risk ventures. When the credit crisis struck, its banks were quickly wiped out, and the government chose not to follow in the footsteps of other governments and bail them out.
Moreover, it doesn’t look like Iceland will regain its luster any time soon. Its economy has shrunk by 40% over the last two years, and one prominent economist has estimated that it will take 7-10 years for it to fully recover. Unemployment and inflation remain high even though interest rates have been cut to 4.25% – a record low. The Kronur has lost 50% of its value against the Dollar and the Euro, the stock market has been decimated, and the recent decision to not remunerate Dutch and British insurance companies that lost money in Iceland’s crash will only serve to further spook foreign investors. In short, while the Kronur will probably recover some of its value over the next few years (aided by the possibility of joining the Euro), it probably won’t find itself on the radar screens of carry traders anytime soon.
The collapse of the Kronur, however, has shown us that the carry trade is anything but risk-free. In fact, 18% is more than what lenders to Greece and Ireland can expect to earn, which means that it is ultimately a very risky investment. In this case, the 18% that was being paid to depositors were generated by making very risky investments. As the negotiations with the insurance companies have revealed, depositors had nothing protecting them from bank failure, which is ultimately what happened.
Now that the carry trade is making a comeback, it’s probably a good time to take a step back and re-assess the risks of such a strategy. Even if Iceland proves to be an extreme case – since most countries won’t let their banks fail – traders must still acknowledge the possibility of massive currency depreciation. In other words, even if the deposits themselves are guaranteed, there is an ever-present risk that converting that deposit back into one’s home currency will result in losses. That’s especially true for a currency that is as illiquid as the Kronur (so illiquid that it took me a while to even find a reliable quote!), and is susceptible to liquidity crunches and short squeezes.
When you enter into a carry trade, understand that a spike in volatility could wipe out all of your profits in one session. The only way to minimize your risk is to hedge your exposure.
Now that the carry trade is making a comeback, it’s probably a good time to take a step back and re-assess the risks of such a strategy. Even if Iceland proves to be an extreme case – since most countries won’t let their banks fail – traders must still acknowledge the possibility of massive currency depreciation. In other words, even if the deposits themselves are guaranteed, there is an ever-present risk that converting that deposit back into one’s home currency will result in losses. That’s especially true for a currency that is as illiquid as the Kronur (so illiquid that it took me a while to even find a reliable quote!), and is susceptible to liquidity crunches and short squeezes.Wednesday, April 27, 2011
Forex Ambush
Forex Ambush 2.0 relies on technologies which was a lengthy time within the creating – developed by a group of 31 skilled traders, back-tested, retested – and continuously upgraded and evolved until the Forex Ambush 2.0 produced 100% accurate outcomes consistently to the satisfaction of Forex Ambush 2.0. As the Foreign Exchange currency market fluctuates, often quite a few times in each day, Forex Ambush 2.0 send out signals to its members, either by e-mail or by SMS, advising regardless of whether to sell or obtain based on the signal. These signals take place in real time, as the currency fluctuation happens and as Forex Ambush 2.0 actually trades.
The actual signals from Forex Ambush Software translate into “pips” and, since the signals are occurring at the precise minute that Forex Ambush 2.0 trades, you must be at your pc to access these signals and act upon them – should you opt for to do so. If your mobile phone is able to support the Forex software program, you can obtain the Forex Ambush 2.0 signals on your cell phone anywhere within the world and act on the signals received.
When trading in Foreign Exchange markets (Forex), the currency will be the “pip”. Forex Ambush 2.0 supports a trailing pip of 5, but some Forex software won’t support a trailing pip of below 15. Forex Ambush 2.0 have, nevertheless, thought of this and factored it in, with “expert advisor” software program which might be installed separately. This software program was developed for MetaTrader employing a 5 pip trailing quit.
Forex Ambush 2.0 function with a 5 pip trailing profit along with a 20 pip take profit. Stop loss just isn’t utilized with Forex Ambush 2.0. Fundamentally, without having going into too much confusing detail, if the signal falls between five pips and 20 pips, Forex Ambush 2.0 advises you to trade. If it falls outside of that, Forex Ambush 2.0 advises you not to trade. Basically, the automated trailing stop as well as the take profit will close the trade for you. Forex Ambush 2.0 advises you to by no means close a trade manually – leave your Forex software program running and your pc on and Forex Ambush 2.0 Software is developed to do the rest.
The actual signals from Forex Ambush Software translate into “pips” and, since the signals are occurring at the precise minute that Forex Ambush 2.0 trades, you must be at your pc to access these signals and act upon them – should you opt for to do so. If your mobile phone is able to support the Forex software program, you can obtain the Forex Ambush 2.0 signals on your cell phone anywhere within the world and act on the signals received.
When trading in Foreign Exchange markets (Forex), the currency will be the “pip”. Forex Ambush 2.0 supports a trailing pip of 5, but some Forex software won’t support a trailing pip of below 15. Forex Ambush 2.0 have, nevertheless, thought of this and factored it in, with “expert advisor” software program which might be installed separately. This software program was developed for MetaTrader employing a 5 pip trailing quit.
Forex Ambush 2.0 function with a 5 pip trailing profit along with a 20 pip take profit. Stop loss just isn’t utilized with Forex Ambush 2.0. Fundamentally, without having going into too much confusing detail, if the signal falls between five pips and 20 pips, Forex Ambush 2.0 advises you to trade. If it falls outside of that, Forex Ambush 2.0 advises you not to trade. Basically, the automated trailing stop as well as the take profit will close the trade for you. Forex Ambush 2.0 advises you to by no means close a trade manually – leave your Forex software program running and your pc on and Forex Ambush 2.0 Software is developed to do the rest.
Sunday, April 24, 2011
Managed Account Forex Trading Software – Automated Forex Trading Software- Web-Based Forex Trading Software- Computer-Based Forex Trading Software
Managed Account Forex Trading Software – Automated Forex Trading Software- Web-Based Forex Trading Software- Computer-Based Forex Trading Software
Foreign exchange or forex is a booming market and most of us are tempted to try our hand in this money game. Day trading refers to buying and selling of stocks most commonly in the foreign exchange market. As it deals with funds, a trader is required to be well funded, and the success depends on several factors, like the choice of software, choice of forex trading systems, understanding of the market, stock brokers, etc. So what is a forex trading software?
Well, these are trading software that help the trader in analysis and trade execution. It is difficult to name the best forex trading software because each forex broker has software with different features. Selecting a software is always about personal preference and your technical skills and trading style.
The best part about currency trading is you opportunity to make money even if the stock market is low, as there is always a variance in different currency rate.
Types of Forex Trading Software
There are four types of forex trading software and selecting one depends on your need and suitability. Before you zero in on a name, it is first important to understand what type is the best forex trading software for you. Here are the four types of trading software with the names of best currency trading software for each types.
Web-Based Forex Trading Software
This type of currency trading is done using a computer with internet connection from any location. Here the trader needs to go online using a user name and password. The main advantage of this type of software is that the user can access it from anywhere in the world and there is no need to download a software. This is a secure trading software, as your information is in an encrypted form and the software provider always has a backup of your data, in case of data loss. Easy-forex and eToro are some of the best best forex trading software if you wish to carry out online trading.
Computer-Based Forex Trading Software
This type of currency trading can be done using your local desktop or laptop computer. Though this is convenient for most people, there are a number of risks attached to this type of currency trading, like data loss and computer virus. Make sure you have a good internet connection for fast transfer of data, else it might have a negative impact on your trading. So whenever you use this type of software, always create a backup file, keep the data password protected and make sure your computer has a strong and genuine antivirus software. MetaTrader and VT Trader are good stand-alone forex trading software.
Automated Forex Trading Software
The introduction of automated forex trading software has made trading easier, faster and less taxing. You do not waste your time understanding and is quite inexpensive compared to other types of software. The convenience of use and implementation, high accuracy, good return for investment and cost should be the important criteria to look for, while deciding which is the best forex trading software for you. These are also known as day trading robots as the trading is done by the software itself with minimum or no help from your end, so it is mostly used by beginners to learn the ropes of the trade. Forex Tracer, Forex Autopilot and Forex Raptor are some highly recommended and best automated forex trading software available in the market.
Managed Account Forex Trading Software
This is a software for those people who are interested in investing money in forex trading, but do not have the time or interest in trading themselves. Here a trading expert manages your account on your behalf with the help of this software. This is also for those who have tried their hand, but do not have the required knowledge and skills for trading. Some established names of this type of software are CTS Forex, ZuluTrade and dbFX.
Tips for Choosing a Forex Trading Software
Since you are dealing with money, and in a highly competitive market, there are very high chances of loss if you are not cautious enough. Trading means one man’s loss is another man’s gain. So you don’t want to be at the losing end, and want good returns for your investment. So, these are few tips to help you choose the best forex trading software available online:
Tip 1: Never buy a software before trying. Most stock brokers offer a trial version of their software, so try out a few software before you buy one.
Tip 2: Once you have tried a few software, select one that is fast and saves time.
Tip 3: Look for a user friendly software. You do not want to waste most of your time in understanding the features of the software.
Tip 4: Read best forex trading software reviews and comments online about the software of your interest.
Tip 5: Always check if the software is compatible with your computer system. Otherwise, see if you have the flexibility to upgrade the system.
Tip 6: Check for technical support of the trading software. A good software should also have a good technical support staff, in case of emergency or any glitches.
How often have you come across websites that vouch to make your 00 to 0000 in four hours? Well the numbers might differ, but the claims are still the same, to make you rich in just a few hours. Don’t get fooled by these claims. You are not the only trader in the market, there are thousands of people with the same goal and do not forget, there are Wall Street pros that you are competing against. Whatever you choose as the best forex trading software according to your requirements, the best lesson in currency trading is to keep realistic expectation. Don’t expect a miracle by giving in four hours of you time when there a people sitting there trading 24 hours a day. As trading software is an important part of the trading business, always read about the reputation of the software before you invest your money.
Foreign exchange or forex is a booming market and most of us are tempted to try our hand in this money game. Day trading refers to buying and selling of stocks most commonly in the foreign exchange market. As it deals with funds, a trader is required to be well funded, and the success depends on several factors, like the choice of software, choice of forex trading systems, understanding of the market, stock brokers, etc. So what is a forex trading software?
Well, these are trading software that help the trader in analysis and trade execution. It is difficult to name the best forex trading software because each forex broker has software with different features. Selecting a software is always about personal preference and your technical skills and trading style.
The best part about currency trading is you opportunity to make money even if the stock market is low, as there is always a variance in different currency rate.
Types of Forex Trading Software
There are four types of forex trading software and selecting one depends on your need and suitability. Before you zero in on a name, it is first important to understand what type is the best forex trading software for you. Here are the four types of trading software with the names of best currency trading software for each types.
Web-Based Forex Trading Software
This type of currency trading is done using a computer with internet connection from any location. Here the trader needs to go online using a user name and password. The main advantage of this type of software is that the user can access it from anywhere in the world and there is no need to download a software. This is a secure trading software, as your information is in an encrypted form and the software provider always has a backup of your data, in case of data loss. Easy-forex and eToro are some of the best best forex trading software if you wish to carry out online trading.
Computer-Based Forex Trading Software
This type of currency trading can be done using your local desktop or laptop computer. Though this is convenient for most people, there are a number of risks attached to this type of currency trading, like data loss and computer virus. Make sure you have a good internet connection for fast transfer of data, else it might have a negative impact on your trading. So whenever you use this type of software, always create a backup file, keep the data password protected and make sure your computer has a strong and genuine antivirus software. MetaTrader and VT Trader are good stand-alone forex trading software.
Automated Forex Trading Software
The introduction of automated forex trading software has made trading easier, faster and less taxing. You do not waste your time understanding and is quite inexpensive compared to other types of software. The convenience of use and implementation, high accuracy, good return for investment and cost should be the important criteria to look for, while deciding which is the best forex trading software for you. These are also known as day trading robots as the trading is done by the software itself with minimum or no help from your end, so it is mostly used by beginners to learn the ropes of the trade. Forex Tracer, Forex Autopilot and Forex Raptor are some highly recommended and best automated forex trading software available in the market.
Managed Account Forex Trading Software
This is a software for those people who are interested in investing money in forex trading, but do not have the time or interest in trading themselves. Here a trading expert manages your account on your behalf with the help of this software. This is also for those who have tried their hand, but do not have the required knowledge and skills for trading. Some established names of this type of software are CTS Forex, ZuluTrade and dbFX.
Tips for Choosing a Forex Trading Software
Since you are dealing with money, and in a highly competitive market, there are very high chances of loss if you are not cautious enough. Trading means one man’s loss is another man’s gain. So you don’t want to be at the losing end, and want good returns for your investment. So, these are few tips to help you choose the best forex trading software available online:
Tip 1: Never buy a software before trying. Most stock brokers offer a trial version of their software, so try out a few software before you buy one.
Tip 2: Once you have tried a few software, select one that is fast and saves time.
Tip 3: Look for a user friendly software. You do not want to waste most of your time in understanding the features of the software.
Tip 4: Read best forex trading software reviews and comments online about the software of your interest.
Tip 5: Always check if the software is compatible with your computer system. Otherwise, see if you have the flexibility to upgrade the system.
Tip 6: Check for technical support of the trading software. A good software should also have a good technical support staff, in case of emergency or any glitches.
How often have you come across websites that vouch to make your 00 to 0000 in four hours? Well the numbers might differ, but the claims are still the same, to make you rich in just a few hours. Don’t get fooled by these claims. You are not the only trader in the market, there are thousands of people with the same goal and do not forget, there are Wall Street pros that you are competing against. Whatever you choose as the best forex trading software according to your requirements, the best lesson in currency trading is to keep realistic expectation. Don’t expect a miracle by giving in four hours of you time when there a people sitting there trading 24 hours a day. As trading software is an important part of the trading business, always read about the reputation of the software before you invest your money.
For More Information About Automated Forex Trading Software Platform and a Forex Programs , Visit *** Forex AutoMoney***
Article from articlesbase.com
Article from articlesbase.com
Technical Indicators for Day Trading
Forex Technical Indicators of day trading are the gadgets applied by the traders to formulate a forecast for different aspects entailed in daily trading. If one makes right use of these technical indicators, these may demonstrate quite fruitful results.
Technical Indicators Helps in Making Forecasts
A technical indicator may help in making predictions about the future drift in the specific currency pair. These indicators also guide you regarding when to go in and go out of the trades. If one makes utilization of these indicators in right manner, then these can bring a great deal of profit.
Moving Averages is the Frequently Used Indicator
Moving Averages is the Forex Day Trading Indicator that investors utilize on frequent basis. The other admired gauges comprise of Pivot Points, MCAD, Bollinger Bands, etc.
Myth of Using Indicators
Majority of Forex traders believe that if they just download these indicators and make use of these automatically in their trading activities will guarantee to bring them profit. This thought is nothing more than an allegory. You must recognize that it is not only the use of these indicators for producing buying and selling hints or identifying the go in and go out tips that bring you the profit, but there are certain other things to take care of.
For instance the indicators of moving averages illustrate the track of market drift. The most frequently used moving averages in this regard are 21 days, 35 days, 50 days, 100 days and 200 days. However, you must keep in mind that their legitimacy is based merely on day to day charts. As per the experienced professionals in this field, an indication can be treated as superior when the 13days moving average crosses the 50 days moving average.
Once this situation arises, one should make trading towards the path of the cross. The dilemma exists here is that such type of crosses do not happen frequently, so that traders may take advantage of these. This can even direct to the state of affairs in which traders want to turn around this cross.
This state may also compel you to pursue with an endeavor to forecast a cross. These all situations are desirable, if you want to keep track of the existing market.
Other Issues Associated with Forex Day Trading Technical Indicators
The other dilemmas in this regard are the matters related to the quotations and the rates that you have offered to your broker. Forex brokers are market leaders and the various brokers offer you various quotations and rates at a particular time. A distinct rate can point out to a condition in which the number of traders is trading in the same market, but the identical signs offer various reactions to them.
Indicators were Developed Long Time Back
You must also keep in mind that these indicators were build-up in the absence of real time details couple of years back. Hence, you are required to work out the restrictions allied to these day trading technical indicators. Besides that, you must comprehend the fact that technical analysis is just one segment of your trading tactic. You therefore, cannot base your decision entirely on these.
A current study has unearthed the fact that only 26% of the total number of traders makes utilization of technical analysis and signals in comparison to 41% of traders who apply fundamental analysis for their purpose. Hence, your trading must be supported with the research and investigation of the market as well as other factors besides day trading technical indicators.
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Thai sexy model, actress, Amika Klinpratoom’ beautiful style
Asian sexy model, Thai sexy girl, Amika Klinpratoom
Thai sexy model, Hot Thai actress, Popular Thai celebrity, Amika Klinpratoom
Asian sexy model, Thai sexy girl, Thai hot model girl and actress, Amika Klinpratoom’ hot fashion.
Thai sexy model, actress, Amika Klinpratoom’ beautiful style
Asian sexy model, Thai sexy girl, Amika Klinpratoom
Thai sexy model, Hot Thai actress, Popular Thai celebrity, Amika Klinpratoom
Asian sexy model, Thai sexy girl, Thai hot model girl and actress, Amika Klinpratoom’ hot fashion. Saturday, April 23, 2011
Hot Gellery
Technical Analysis for Forex Trading
Technical analysis is the prediction method that is used in forex trading to forecast price action in forex market. This analysis works only on the data generated by the market. Almost every forex trader takes help from some type of technical analysis method to predict the forex market trend.Price Charts
Price charts are on of these analysis methods. By the help of price charts, traders can find out the perfect entry and exit points for any trading process. These charts provide a visual representation of the previous price movements. This feature makes it easier for traders to find out the upcoming price changes, as just by reviewing these charts traders can determines whether they are selling at a cyclical top or purchasing at a fair price.
Perfect Technical Analysis
A perfect technical analysis method also takes the fundamental pointers into consideration and it works with these pointers by joining them with the data tables and charts. The assumption that is used in technical analysis is that it incorporates all the basic fundamentals into the actual market data.
Basic Principles of Technical Analysis
There are certain principles that are working behind all the technical analysis methods. Basically, there are three main principles and these principles are actually the market actions that are taken in accordance with the latest events, historical forex trends, and price action trends.
Role of Mathematical Representations
Basically, technical analysis methods are highly dependent on the mathematical calculations that are done for the forex market behaviors and patterns. These representations are mainly the volume charts, price charts and a huge list of various particular analysis methods.
Role of Market Data
The data that is generated by the market is used to identify the sustainability and intensity of a specific trend. Therefore, technical analysis is the method that enables you to create an efficient trading plan.
Role of Chart Patterns
A variety of chart patterns is included in few of the basic pie charts that determine the price movements. The commonest charts include the bar charts.
Each bar chart describes one time period that could consist of any duration i.e. from one minute to several years.
Candlestick Patterns
Forex charting techniques or candlestick patterns are used to predict the trends of forex market. Candlesticks patterns provide eye candy visual details within the bar graphs and other chart patterns with its colored bodies.
Usually the figure and point patterns are similar to that of the bar chart; however, the Os and Xs are utilized for the changes in market in the price actions.
Technical Pointers – These pointers such as market volatility, strength, cycle, trend, resistance or support, momentum pointers are also the important and inevitable tools in technical analysis. Trends determine the constancy of price actions in a single direction over a particular period of time. Trends move in three distinct directions i.e. up, down and sideways.
Market Intensity – It is the strength of forex market opinion in accordance with the price by the market positions examination carried out by different participants of the market. They are basically consisted of the open interest or volume.
Market Volatility – It is the magnitude of forex market or the size of the every day price fluctuations independent of the direction of price. Changes in the market volatility lead to the price changes.
Cycle – It basically points out the repetition pattern of the movement of market in accordance with the recurrent events like yearly budget, elections, or seasons. Cycle pointers actually identify the timings of specific patterns of market.
Resistance or Support – It describes the levels of price within which the markets repeatedly changes i.e. rise or drop and reverse.
Momentum – It is the speed of price movements within a given period of time. The momentum pointers identify the weakness or strength of any particular trend. Usually, at the beginning of a trend momentum is at its highest point, while it reaches its lowest point at the turning points of the trend.
Effective Application of Technical Analysis
In order to utilize technical analysis in an effective manner, you have to understand the basic points of technical analysis. You should bear in mind that your primary tool is price. Apart from that, almost all systems use the technical methods to dig the data deeper. You should be aware of how and why all technical studies can be connected together to produce effective results.
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Trading Forex Like a Pro
Foreign exchange business, also known as forex trading is getting popularity world over as a business of choice. The reason for the popularity of forex trading is the decline in real state business and global economic recession. These days the most searched business on the internet is the forex trading.
The internet revolution and other advancements in technology have provided an equal opportunity to everyone to make a fortune by investing in the forex. Several online forex trading resources provide investment opportunities. You too can become a currency trading broker, if you are interested; and earn in millions. Before investing in the forex market, it is necessary that one should have basic knowledge about forex trading.
The Basics of Forex Trading
In simple words, forex is a place where people trade currencies. Different people in the market offer different currencies and decide their rates. There are several currencies around the world. Almost all the countries around the world own a different currency.
There are business centers like New York Stock Exchange, where you have to complete all your transactions within a given time. Forex trading is different from stock exchanges and other business centers, because forex trading is a 24 hours business. The forex market is open 24 hours a day and 6 days a week. The forex market is not centralized and extends to several times zones around the world. The traders do their business with the help of communication systems and other tools such as the internet.
What is the Importance of Currency Trade?
In Forex trading, currencies are traded on a rate decided by the market. There are several multinational companies which offer their services around the world. To pay their employees they use different currencies then the one used in their home countries. To maintain the balance, the currency exchange is necessary.
The prices of currencies do not remain constant, instead they keep on fluctuating. The traders guess the change in the rate of currencies and try to get benefit from the fluctuations of prices.
How to Become a Currency Trader
The currency trading broker must be good at estimating the fluctuation in the price of a currency. The share market is affected by the performance of a company. The company performance increases or decreases the prices of its shares. On the contrary, the currency price is affected by several factors. To understand the forex market, you can not use the same tools and experience which you use to observe the share market. Seeking the assistance of a currency broker will be helpful to understand the forex market.
You can also learn it by trying out the ‘demo account.’ A demo account is an account where you can learn forex trading using virtual money. Once you have understood the basics you will find it very exciting.
Internet Resources
There are several websites on the internet which teach about forex trading. You can learn and do trading over the internet with the help of these web sites. Several of these websites offer their services free of cost. Some of them are free but to learn advance forex trading you will have to pay. Before deciding to learn forex trading on the internet, it is always helpful if you do some research. The research will save you lots of money and time, which you could have wasted on learning what you already know.
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Friday, April 22, 2011
Where are Exchange Rates Headed? Look at the Data
At this point, it’s cliche to point to the so-called data deluge. While once there was too little data, now there is clearly too much, and that is no less true when it comes to data that is relevant to the forex markets. In theory, all data should be moving in the same direction. Or perhaps another way of expressing that idea would be to say that all data should tell a similar story, only from different angles. In reality, we know that’s not the case, and besides, one can usually engage in the reverse scientific method to find some data to support any hypothesis. If we are serious about finding the truth and not about proving a point, then, the question is: Which data should we be looking at?
The picture for emerging market economies is slightly less optimistic, however. If you accept the BIS’s use of China, India, and Brazil as representative of emerging markets as a whole, rising interest rates will help them avoid hyperinflation, but significant price inflation is still to be expected. I wonder then if the pickup in cross-border lending over this quarter won’t slow down due to expectations of diminishing real returns.Any sudden optimism in the Dollar and Euro (and the Pound, to a lesser extent) must be tempered, however, by their serious fiscal problems and consequent volatility. As a result of the credit crisis (and pre-existing trends), government debt has risen substantially over the last three years, topping 100% of GDP for the US and 200% of GDP for Japan. Credit default swap rates (which represent the markets’ attempt to gauge the probability of default) have risen across the board. To date, gains have been highest for “fringe” countries, but regression analysis suggests that rates for pillar economies need to rise proportionately to account for the the bigger debt burden. According to a BIS analysis, US and UK banks are very exposed to Eurozone credit risk, which means a default by one of the PIGS would reverberate around the western world.
I think the quarterly Bank of International Settlements (BIS) report is a good place to start. The report is not only a great-read for data junkies, but also represents a great snapshot of the current financial and economic state of the world. It’s all macro-level data, so there’s no question of topicality. (If anything, one could argue that the scope is too broad, since data is broken down no further than US, UK, EU, and Rest of World). The best part is that all of the raw data has already been organized and packaged, and the output is clearly presented and ready for interpretation.
Anyway, the stock market rally that began in 2010 has showed no signs of slowing down in 2011, with the US firmly leading the rest of the world. As is usually the case, this has corresponded with an outflow of cash from bond markets and a steady rise in long-term interest rates. However, emerging market equity and bond returns have started to flag, and as a result, the flow of capital into emerging markets has reversed after a record 2010. Without delving any deeper, the implication is clear: after 2+ years of weakness, developed world economies are now roaring back, while growth in emerging markets might be slowing.
Economic growth, combined with soaring commodities prices, is already producing inflation. (See my previous post for more on this subject). However, the markets expect that the ECB, BoE, and Fed (in that order) will all raise interest rates over the next two years. As a result, while investors expect inflation to rise over the next decade, they believe it will be contained by tighter monetary policy and moderate around 2-3% in industrialized countries.
Anyway, the stock market rally that began in 2010 has showed no signs of slowing down in 2011, with the US firmly leading the rest of the world. As is usually the case, this has corresponded with an outflow of cash from bond markets and a steady rise in long-term interest rates. However, emerging market equity and bond returns have started to flag, and as a result, the flow of capital into emerging markets has reversed after a record 2010. Without delving any deeper, the implication is clear: after 2+ years of weakness, developed world economies are now roaring back, while growth in emerging markets might be slowing.
The picture for emerging market economies is slightly less optimistic, however. If you accept the BIS’s use of China, India, and Brazil as representative of emerging markets as a whole, rising interest rates will help them avoid hyperinflation, but significant price inflation is still to be expected. I wonder then if the pickup in cross-border lending over this quarter won’t slow down due to expectations of diminishing real returns.
While I worry that such a basic analysis makes me appear shallow, I stand by this “20,000 foot” approach, with the caveat that it can only be used to make extremely general conclusions. (More specific conclusions naturally demand more specific data analysis!) They are that industrialized currencies (led by the Dollar and perhaps the Euro) might stage a comeback in 2011, due to stronger economic growth and higher interest rates. While GDP growth and interest rates will undoubtedly be higher in emerging markets, investors were extremely aggressive in pricing this in. An adjustment in theoretical models naturally demands a correction in actual emerging market exchange rates!
Thursday, April 21, 2011
The Hunt For The Greatest Forex Signals
Forex Signals
Doing the job online or by using an international based company is not new to us. You may be based in the United States presently however might be earning British pounds or else you might be paying for somebody who works for you within the Philippines at a Philippine Peso rate. You should be getting accurate foreign exchange alerts every day so that you are assured that you’re getting paid the right price or else you are paying your workers the appropriate price.
The price of the different foreign currencies around the world changes often. They change in just hours. Due to this, it would always be better to get live foreign exchange signals.
Obtaining forex signals though isn’t as simple as getting updates about the various currencies on line. You must ensure that the signals you are getting are reliable enough for the business. You need to place in mind that in foreign exchange; even a few pennies can make plenty of difference specially when it’s already converted to another currency.
To help you obtain the best forex alerts for your business, there is certainly a lot of on websites that provide cost-free forex signals on a regular basis. But in choosing the web site which will update us on the various currencies, we have to make sure that they’re correct. Most free providers are quite delayed on their updates.
The ideal currency up-date providers aren’t necessarily the ones that are in the top of the search list or even those who give you the up-date for free. Instead, they are those who provide the most up-to-date foreign exchange rates. These kinds of providers are those which have a real expert who work towards their up-dates rather than just rely on the updates of other websites.
While it’s good to have free currency up-dates, it would be particularly a good idea to make sure whether the web site that you’re taking your updates from supply you with the proper figures or not. Acquiring an incorrect forex update, even once, could mean loss of earnings for your business. If you’re working with a business partner from a country which has a currency that has quite a big difference in your currency’s value, that could mean a huge amount of cash going through the drain just because you’ve not received the appropriate foreign exchange signal.
Easy Pips forex signal is a service provider of automatically delivered and traded forex alerts. Visit their site today and try their forex signals service at no charge. Simply click on the Free Trial link. Register for your free forexsignal service now.
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