Artificial Intelligence Forex Trading Software

Trend Profiteer Forex Software

Trend Management Software is an indispensable tool when it comes to profitable trading based on market trends. Once you purchase the software, it becomes your reliable trading advisor and provides you with alerts on potentially profitable trends in the forex market. The software also manages the trades according to your settings, totally automatically. All you need to do is review each trade when the Trade Assistant alerts youto a potential trade setup opportunity. It frees you up to do other things while you are trading, yet does not put you at any more risk than if you were staring at your charts for hours. The two fundamental concepts the software helps you figure out are the risk and return for your investment. The risk determines the return we are getting but we don't have to take the highest risk to maximize our returns. All we need is to maximize the return for a particular level of risk. The software is backed by 17 years of experience in trading by one of the world's most respected Forex teachers(Michael Nurok). Read more...

Trend Profiteer Forex Software Summary

Rating: 4.7 stars out of 12 votes

Contents: Trend Management Software
Creator: Michael Nurok
Official Website: trendprofiteer.com
Price: $89.00

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Trend Profiteer Review - Trend Management Software

Highly Recommended

Trend Profiteer Forex Software is a highly configurable piece of software. Installing and using is quite easy, even for the novice users but if you find yourself in trouble, there's always the Help system that's very useful when needed. From my experience with it so far it works seamlessly, so why not give it a go.

There is also a full money-back guarantee, so it's totally risk-free.I can't think of a single reason not to buy Trend Profiteer Forex Software as soon as possible. Great work. Highly Recommended.

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Why Trade The Spot Forex Market

From all the financial instruments traded, forex is believed for a number of reasons by many professional traders and analysts to be one of the best-suited markets to trade using technical analysis methods. First, it is well-suited because of its sheer size in trading volume according to the Bank for International Settlements, average daily turnover in traditional Foreign Exchange markets amounted to 1.9 trillion in the cash exchange market and another 1.2 trillion per day in the over-the-counter (OTC) Foreign Exchange and interest-rate derivatives market as of April 2005. Second, the rate of growth and market participants in forex trading has increased some 2000 percent over the past three decades, rising from barely 1 billion per day in 1974 to an estimated 2 trillion per day by 2005.

Pips The Currency of Currency Trading

Up to this point, pips have been lightly touched upon but not properly defined. An extremely important concept in foreign exchange trading, a pip is simply the smallest unit of price movement in the exchange rate of a currency pair. Pip can stand for percentage in point or price interest point.' ' But regardless of the exact acronym definition, its practical meaning is clear. Traders trade foreign exchange in order to earn pips. Earned pips are the reward for a good trade, while lost pips are the punishment for a bad trade. This may all seem very confusing at first to the beginning trader, but again, most forex trading platforms come well-equipped with a pip calculator that provides all pip values. If this calculator is not offered, it helps to keep in mind that all currency pairs ending in USD (as the quote currency) will be 10 pip for a standard lot,

Company name FX Solutions LLC

Commissions No commission on Forex Languages English, Spanish, Chinese Free demo account Yes Mini Forex trading Yes 24-hour trading Yes Website www.socofinance.com Year the company was founded 1978 Commissions No commission on Forex Minimum investment 10,000 Minimum transaction 50,000 Pip spread 2 to 5 pips Tradeable pairs Majors Customers Banks, private investors Free demo account Yes Mini Forex trading No 24-hour trading Yes Commissions No commission on Forex Mini Forex trading Yes Commissions No commission on Forex Languages English, Spanish, German, French, Italian, Portuguese, Arabic, Russian, Greek Free demo account Yes Mini Forex trading No Languages English, Spanish, French, Chinese, Russian, Urdu Free demo account Yes Mini Forex trading Yes 24-hour trading Yes

Day in the Life of a Full Time Forex Trader

I click on the headline which summarises what the minutes say. It seems that the Fed's main concern is that inflation will fail to moderate as expected, and that future policy adjustments will depend on incoming economic data. This statement is very similar to the previous one hence there is not much reaction in the forex market. Both EUR USD and USD CHF barely move more than 20 pips. I wait a few more minutes to see how the price action in GBP USD will unfold, but when I see that the currency pair is losing momentum, I switch off the monitors and go back to bed. The price is not where I want to buy GBP USD. Too soon, morning comes. I start off the day by having breakfast in front of one of my computers, looking at screens that show the 5-minute charts USD CHF, EUR USD, USD JPY and GBP USD. These four currency pairs (also known as majors ) are what I usually check out the first thing in the morning, unless I've got a position open in other currency pairs.

Forex Cash Cow Strategy

We have learned some principles regarding technical and fundamental analysis. We also went over some various money management issues. It is now time to learn how to trade the Forex Cash Cow strategy, one of the finest trading strategies I have developed over the years. I refer to the Forex Cash Cow strategy as my bread and butter strategy There are several reasons of why I like it so much. First, it is very accurate, probably the most accurate strategy I am currently using. Second, it does not occur every day, on an average I expect to see it 3-4 times per month. This means less stress for the trader and more free time to pursue other activities. Third, most of the time I know a day in advance if there is going to potentially be a signal or not. Fourth, it has the potential of providing a very nice profit for the patient trader.

Helpful Information for all Forex Trading Systems

Building blocks that I believe to be foundations to the Forex Profit System. Foundation 2 Follow and understand the daily Forex News and Analysis of the professional currency analysts. Even though this system is based solely on technical analysis of charts, it is important to get a birds-eye view of the currency markets and the news that affects the prices. It is also important that you know and understand what the key technical 'support' and 'resistance' levels are in the currency pair that you want to trade. Support is a predicted level to buy (where currency pair should move up on the charts), resistance is a predicted level to sell (where the currency pair should move down on the charts). Fortunately, all the best Forex news and analysis is offered free on the Internet. Here is what you should do first A. Go to forexnews.com and you will find 24hr news and analysis on the spot FX markets.

Understanding Forex Trading Truisms

If you have been around Forex Trading for a day, you have heard the popular truisms Cut Losses short , Let Your profits run , Never Add to a loser , Always use stops , and Go with the trend . These are some of the popular ones. I will show you how to apply these truisms. The traders who state these, without explaining the proper principle behind them will cause a novice to lose their capital. You have to remember that no single rule (or truism) will spell the difference between Profit and Loss. It is with the use of a system and money

Showa Shell foreign exchange losses

On 20 February 1993, Showa Shell Sekiyu, a Japanese oil refiner and distributor that was 50 owned by Royal Dutch Shell, reported that it had lost JPY 125 bn (USD 1.05 bn) in 1992. The firm's losses, equal to 82 of its shareholders' equity, stemmed from USD 6.4 bn worth of speculative foreign exchange contracts. These were accumulated by the firm's treasury department, apparently without authorization. The contracts, taken out in 1989 and subsequently rolled over, bought the dollar forward at an average exchange rate of JPY 145, to which level the yen had briefly weakened that year. At the end of 1992, the yen was trading at JPY 125 per dollar. treasuries now have a sophisticated intercompany FX trading system at little or no cost. A side benefit is its use in supporting transfer pricing on internal FX.

The Commodity Research Bureau Index CRB and Forex

Forex traders interested in evaluating further the commodity markets and their impacts on the forex markets can look to the CRB Index. The CRB index is a composite of 17 non-financial commodities and is closely watched as a clue for inflation. Therefore, its relationship to monetary policy and the value of the dollar is important. For those trading currencies that reflect commodity prices more closely such as the Australian dollar, New Zealand dollar, the South African rand and Canadian dollar, this index should be followed. Forex trading is inherently inter-market and scanning the key commodities (oil, gold, CRB) is helpful in pinpointing opportunities to trade, especially when these indexes are at their extremes.

The Forex Playing Field

If you understand the dynamics of the forex playing field, you understand the ability to calculate odds, the consequences of short-term trading, and the importance of interest rate differentials. In the world of forex trading, the zero pockets represent the spread. The odds are always going to be at least slightly in favor of the house, which in this case is the market maker. The wider the spread, the more zero pockets the trader must overcome. Just as each additional zero pocket lowers the roulette player's chances of success, every additional pip in the spread lessens the trader's chances of success. In the forex market, the house determines the spread, which is the equivalent of the zero pockets in roulette. We have no control over the spread it is determined by the market maker alone, just as the casino determines the number of zero pockets on a roulette wheel.

Volatility in Forex and Its Dimensions

Rsi Divergence Sell Break

This chapter reviews how volatility should be used in helping the forex trader evaluate market conditions. Volatility conditions, when added to classical support and resistance, and trend analysis identify high-probability trading opportunities and patterns. By identifying currency pair volatility and associated exhaustion conditions, the trader gains knowledge of what the currency pair is doing. What the trader is most interested in is the behavior at prices at the extreme. A currency pair can reach a new daily or weekly high, but it doesn't mean that the price is likely to return to its average or mean price. When a currency is at a high, it is there for a reason. Perhaps new economic information pushed it to that new level. However, it is when a currency is at volatility high that the trader can deduce a potential for a reversal. This is because volatility cannot be infinite, then return to an average level.

Free Forex Trading Tools

Grab copies of best Forex tools that will make your Forex trading easier and more profitable. FX Pulse - MT4 custom indicator which shows latest Forex news directly on your chart in a second after its release as well as has built-in trend detector for each time frame Software for your PC what can help to calculate Pivot Point, Woodie, Camarilla and Fibonacci levels - download All-in-One Forex calculator. PC software that calculate support and resistance levels and Foreign Exchange market turning points download Pivot Point calculator Software for PC what can be used for determining retracements download Forex Fibonacci calculator Very effective software for Forex day trading - download Forex Camarilla calculator

Choosing a Forex Broker Using a Rating System and Individual Reviews

One of the best ways to secure a good Forex broker is by visiting online Forex review sites or Forex forums and using the filtering process some of these sites have for assessing Forex brokers. Some of the points used in the review process are Why is it necessary to use the review process on Forex review sites or Forex forums The answer is pretty obvious. The best way to get a pulse of what it is to actually use a Forex broker's services is to see it in the eyes of those who have used the services of these brokers. A popular proverb says that it is better to learn from the experience of others than to have to learn from your own experience. Here are some points to look out for when using the ratings system on Forex review sites. There are other issues to assess, but the ones above are usually the most common issues that will confront the trader in using a broker's services.

10 Essential Money Management Rules in Forex Trading

Money management in Forex is one of the most important and yet most ignored topics. Too often we hear and see many trading strategies being advertised all over the place, but very little information out there on money management. Why is money management in Forex so important Profitable trading is not all about one or two fluke profit trades. Profitability in Forex is the ability to make Forex trading profits over time, with consistency and regularity. Forex money management is what makes the difference between a winning trader, and one who wakes up in the morning afraid to check his trading platform because he doesn't know what to expect. The allure of Forex trading is in leverage the ability to control large positions with a small amount of money. Many industry experts do not advocate using more than 1 100 leverages, but we see traders being offered leverages as high as 1 500 for trading. Leverage in Forex is a two-edged sword. It can work in the trader's favour, or against him.

When to Trade Forex and When Not To Trade

It is true that Forex trading is by definition, a market that operates 24 hours a day. This is because there are various key trading zones where market activity in the Forex market is carried out, corresponding to the three major time zone financial districts. These are in London, New York and Asia. It is the activity in these zones, which come up one after the other that give the Forex market its 24-hour appellation. That said though, we need to point out that even though the Forex market is by definition, a 24-hour market, there are only specific times of the day when the Forex market has enough market activity that traders can profit from. These times are the times when there is overlap of activity between two-time zones. Profits in Forex are only made when there is enough liquidity, volatility and market activity, and these times are the best times to trade. Overlap means more liquidity and more market activity, which produces volatility.

3 Forex News Releases You Can Bank Huge With

Every month, there is a calendar of the release of certain important socio-economic and political news items that tell a story of the state of the economy of the nation where that release emanates from. These Forex news releases usually provide the benchmark for market sentiment, which ultimately determines the direction of the currency pairs. So, stay tuned, because in my next blog post, I will share with you two of my favorite news trading strategies , I use for years with great success.

3 Signs that Your Forex Broker May be A Con Artist

All investors must always be wary of scams when they are placing trades. Forex traders need to be especially careful, because they are placing trades in a largely unregulated, international market. Many Forex investors claim that they have been swindled by their own brokers.Make sure you understand the warning signs that you may be working with a dishonest broker. Don't get lost in all dismal rumors. Make sure you understand the truth about Forex broker scams and know whether or not your broker is legitimate. Understand the signs that your broker may be taking advantage of you. Here are some common signs of a Forex broker scam. Before choosing forex broker read

5 Types of Forex Brokers You Need to Know About

A large part of Forex trading success has to do with the broker aspect. Now we will not talk about the regulatory aspect of broker business we will probably do that in subsequent articles. But we will try to talk a little bit about broker pricing issues, which inevitably will lead to a discussion about brokers and how they can be classified according to the kind of price quote structure they deliver to traders. Forex brokers can be classified based on the pricing structure and market access they provide to their clients as follows ECN brokers can be called give it as it is brokers. The price quotes seen by their traders are the same as those processed by the banks on the interbank foreign exchange market. There is no dealing desk interference with the price quote structure and that is why ECN pricing represents the most transparent system of delivery of price quotes to Forex brokers.

Crash Course about the Forex Market Structure and Forex Hierarchy

The craze for Forex trading in many parts of the world is beyond imagination. As people look for alternative ways to make money in the face of dwindling incomes and disappearing jobs, more people are discovering online Forex trading as a potential way of making easy money. In some countries, you can hardly walk into three streets without seeing some form of Forex-related advert. This situation is not helped by the glittering adverts you see on some websites and financial TV stations, where Forex is depicted as next to picking dollars from the street. The same holds true in Forex. While 95 of individual traders consistently lose money, some players in the Forex market who constitute the top 5 are smiling all the way to the bank. Many would-be traders do not know that the entire structure of the market tilts the scales in favour of the BIG DOGS (brokers and institutional traders).

Forex Time Frames: Pros & Cons and What Is The Best One to Trade

We all know that in Forex, there are different time charts in use. From the 1-minute time chart all the way to the monthly time charts, traders have a wide array of time frame charts at their disposal. However, the fact that there are many time charts is an indication in itself that there is no such thing as a perfect time chart. If such existed, then we would have no need for several time charts, and every trader will use just the best time chart for trading decisions. These are the lowest time frame charts. They are the charts that can be referred to as the scalper's paradise. Need more information about scalping Please read my article called What is scalping in Forex trading and how to succeed with it Cons It is a short-term time frame chart and does not usually tell the picture of the trend at first sight. As such, it is unsuitable for use as a stand-alone chart for decision-making in Forex.

2 Highly Profitable Forex News Trading Strategies that Matter

In my previous post, we identified the Forex news reports that are trade worthy . Knowing what the tradable news items are is one thing, but knowing how to trade these news releases is another. With this at the back of our minds, I would like to share with you two highly profitable Forex news strategies that I have used with great success over several years. Both are highly profitable and can be mastered in a short time. The problem usually arises with the timing of the placement of the orders. There have been cases when extreme volatility caused choppy price swings to trigger both trades. As such, the Forex straddle strategy is not recommended for high impact volatile news releases like the NFP. Tip There are several expert advisors available what places trades automatically before the news comes out. Commercial and free versions. If you are interested in a straddle Expert Advisor, I recommend to stay away from the commercial versions.

Pros and Cons of Forex Mobile Trading

You can now use a mobile phone to trade forex anywhere, anytime at home, at work, on the train, in a restaurant, the possibilities are endless. With the latest generation of smartphones you have a raft of tools for technical analysis, market information from brokers, and access to your trading account, all from one slim but oh so potent platform that also fits neatly in your pocket. Why would you ever go back to a PC for trading Actually, for a number of reasons. As powerful as smartphones have now become, they can't yet do everything that you can do from your PC. Take a look at pros and cons of mobile forex trading below, so that you can see for yourself whether trading from a handheld device will suffice, or you still need to stick with your PC. It's clear that these disadvantages have not deterred a considerable number of traders from adopting the mobile platform for trading on forex.

Understanding Leverage and Margin in Forex Trading and Avoiding Disaster

Making reasonable profits in forex trading means multiplying the size of the trades that you make at least, to a certain extent. Understanding leverage and margin is an important part of this, so that you can maximize the advantages, and minimize the disadvantages. To do this, let's start with two simple definitions.

Scalping in Forex: Small Steps to Big Money

Forex scalping is a trading method where the trader opens and closes a trade manually within minutes of each other in order to profit from the small price appreciations that occur when the market moves in his favor. In scalping, timing is everything, for a number of reasons. A currency pair may move 15 pips in a particular direction for one minute, then pull back seven pips over a period of seven minutes, oscillate at this level for another three minutes, and make another strong 20 pip move over the next ten minutes. This is a minor move in Forex, occurring over a matter of minutes, and this is what the scalper is after. The scalper needs to be able to make the right decision and enter the market in the direction of the strong minor moves, then exit just as the pullback starts. In previous article about pros and cons of each Forex time frame , I have written that each time frame could become the best for you. Pros of Forex scalping .

5 Reasons to Avoid Holiday Trading on Forex Market

Am I right, if I say that most of us want to relax or recharge ourselves during Christmas holidays I guess, yes. The same situation is on Forex market. It has to be recharged as well. I will never advise you to trade on live account from 24th of December till 10th of January or during other holidays. And here are my 5 crucial reasons to stay away from trading during Forex market holidays The main reason of low market liquidity is a small interest of Forex lions (hedge funds, market leaders, banks) in selling or buying the currencies during the holidays. These Forex lions know their business and prefer to lay on the beach with the glass of Martini and cigar rather than staring in their PCs. They give us a hint do not trade . The evidence of low volatility is a shrinking of currency pairs' swings during the day. As I mentioned before, top Forex players are out of game. That means no one can produce a sizable interest in some particular currency pair. The result ranging market .

How to Find Reliable Forex Broker

Over the past decade Forex trading has gained high popularity and this has its natural impact on the creation and development of hundreds of brokerage companies. Therefore, to make a right decision and start to collaborate with the broker you find exactly suitable for you is quite difficult. Each of those brokers tries to work out certain methods and new approaches of trading to attract you making you its regular and constant client. In order to avoid nightmares and stressful situations, we'll help you understand and appreciate the features a reliable broker should possess. In your research you will find Forex and CFD brokers that are highly reputable and well regulated and those that are in the red and try to hide their debts from clients and investors.

Top 4 questions about Forex trading answered

On a daily basis, the Forex market produces around 4 trillion worth of transactions. This is more than the major stock market exchanges put together. Despite this foothold' in the trading world, there are still a range of questions that new traders seem to scratch their heads over. So,in this article we are aiming to answer at least some of those in order to provide more insight. No. The Forex market does not operate in a traditional way like a stock market environment. For example, NYSE and Dow Jones are probably the most recognizable exchanges in the world where various companies are listed on. The price for a currency pair does not arrive through a central exchange but through a conglomerate of major financial players in the market such as banks, hedge funds and other investment companies. They are referred to as the Interbank market.

Why Forex trading is not like gambling

It is still amazing that in this day in age there are still people out there that think Forex trading, or any type of trading, is the same as gambling. To be fair, the inexperienced trader or someone who has never traded before do have a point. The aim is simple you put your money into the market place, have a maximum amount in your mind that you are willing to lose and then hope for the best. If the odds are stacked in your favor there is a chance' that you will make some money. However, this view does not take into account any qualities, skills or attributes traders need to have in order to succeed. Let's start with the one thing that Forex trading and gambling do have in common risk. There is no hiding from it trading is risky and so is gambling. However, setting up any kind of business is also risky. Does that mean that someone who created a successful business started off with a gambling attitude I think not.

How You can Really Become a Millionaire from Forex Trading

Making lots of money through Forex trading is completely dependent on some special conditions. When someone has the proper conditions, he can make millions through Forex trading. You can increase your wealth and become richer through Forex trading and become a millionaire or even a billionaire. I am not saying that it is impossible to make millions with Forex. Forex brokers don't let you grow your account consistently, because in most cases, your profit is their loss. Currency trading is not an easy way of making money and making a living. To make money consistently through Forex trading and maybe to become a millionaire finally, you have to pass some important stages. Forex trading is like that too.

Forex Investment : Are Binary Options Signals Profitable for You?

In simple words, the answer is yes, the forex binary trading is one of the better binary options out there. This kind of trading offers better results at lower degrees of risk for most traders. However, trading in forex requires customized knowledge of money fluctuations and the factors that require to be considered may appear a little bit complicated to startng investors. Any flaws can be expensive. Therefore, looking for some specialized help, including the Forex Signals or training if you aren't up-to-date with the forex market would be sensible. When you spend, keep in the head if your options, offered by the Mt4 or Mt5 experts end in the amount of money once they go over your projected prices or finish from the money, with the purchase price slipping shortly of your objectives. A whole lot of forex binary trading is equivalent to the usual forex trading.

Insider Tips and Tricks for Conquering the Forex Market

The forex trading market has grown rapidly over the last few years. It seems as though everyone wants a slice of this extremely profitable pie. However, it's a complex system that requires some in-depth knowledge of trading. Going in blindly is likely to result in quite a few mistakes. Which can then lead to you losing a lot of money. In order to help you get started, we've put together some insider tips and tricks. These should help you get your foot in the door of the forex world. If you're not a big fan of social media then you may want to give up on the forex market. There are hundreds of social media accounts out there, that can help you make the right trading choices. Sign up for Twitter and do a quick search for the word forex'. You'll be surprised at how many people are willing to give away their insider knowledge for free. Some people are there just to sell their guides and courses. Whereas others are actually out there to help newbies make a profit.

The Ultimate Guide to Trading on the Foreign Exchange Market

Chances are, most of you will have heard of forex. Also known as the foreign exchange market. Primarily, it's trading foreign currencies much like you would trade stocks. However, it's complicated and prone to fast changes. If you want to dip your toe into the world of forex, then it can be difficult to know where to start. We've put together the ultimate guide, to help you on your way. Let's kick off with a bit more information about the foreign exchange market. There's no point trading in something you have absolutely no clue about. Back in 1971 an agreement was made that allowed currencies to be traded freely between countries. This meant that the values began to change quite rapidly. When most people think of foreign exchange, they think about visiting the Bureau de Change for their vacation money. This is technically trading currency, so isn't it the same Forex is different in the fact that the money isn't being used for vacations or commerce.

How to start Forex trading in a proper way

Trading is a fun job if you can survive it. After you start trading in a marketplace like Forex, a lot of obstacles will come your way. They will force you to a bad performance. A lot of novice trades quit their jobs because they can cope up with the competition of the market. But if you can make a good plan for yourself, it will be a lot easier for you to start and survive. In this article, we are going to show you some of the important things to follow when you are starting to trade. We hope that this will be helpful for you and make your planning easier for the beginning. Just try to remember these points when you are preparing yourself. Remember when we were in the science lab, our teacher used to give us a little brief about the task So, you can understand how important bookish knowledge is for your work. So, the first is necessary for you is some academic knowledge about trading. With the help of the internet, it has become really easy to learn about anything these days.

The Forex Market: The Pros And Cons Of It

The forex market is probably the largest market in the world trading billions of dollars every single day. For you to be successful in the market, you need to arm yourself with as much information as possible. To start you off, here are the pros and cons of the market Liquidity is the ability to enter and exit the market as you wish. The forex market offers the most liquidity and as a result you can easily enter and exit the market within the shortest time possible. The ability to enter and exit the market ensures that you can trade in as many currencies as you want. To make it easy for you to have control of large positions even if you have just small amounts of money, banks and brokers give leverage. Although, leverage allows you to control large positions with little money, you should be cautious and ensure that you understand how leverage works before you start working with it. Just like anything else, the forex market has its fair share of setbacks.

How To Make Money in Forex

When we trade forex, I believe we all want to achieve one thing That is to make money in forex.It's pretty obvious isn't it.However, the fact is, most of the traders aren't successful in live but they make good money in demo.Why The answer to this leads to the topic How to Make Money in ForexYou see, when we trade our demo account.We are pretty much in a relax state of mind.And when we trade, we have little consideration after all, it's not real money Therefore since it's not real money, we are not overly involve mentally.Even if we make a loss, it's not our money. So we feel none to little pinch.When we have that relax state of mind, whenever we put a trade that has been planned.Eg. we have set our profit target and our stoploss point.We will let it run. And sometimes, due to other work commitments.And as we are still demoing forex (forex is still just a play thing )We would come back 1-2 weeks later to check the market and the status of our trades.

7 Unique Advantages Associated With Forex Trading

Forex trading is yielding such a high return option to the currency markets nowadays. That's what it seem with advertisements everywhere aiming to convince an investor to open a merchant account, buy into customized programs and downloading of trading software, essential for the web trader. But is forex trading a lucrative investment trading system as it is portrayed Looking at some benefits below attributed to trading forex will help you decide investing your money for a much better returns as its applicable to the robustness of the system. In forex trading, there are no commissions or fees to pay. Agents make their money from the pass on or the difference between your bids and have a price. As a forex investor, you merely have to be sure price moves much enough to offset the get spread around and that means you can make money. Some markets, including the item futures market, require that you operate a fixed great deal size or deal.

You Must Know This- to Avoid Huge Risks In Foreign Exchange FOREX trading

Forex market is a challenging and risky market, but there are a few steps you can follow in order to decrease your risk in Forex 1 Always use a stop loss. This stop loss can be a mental point when you decide that you'll exit the trade, or a stop loss order that you place on your broker. No matter what your choice is, a stop loss point is a good way to avoid high risks. It allows you to avoid fear and greed, and to cut your losses before they rip off your account.2 Use risk management rules. Don't risk more than 5 of your account in a single trade. If you risk too much, you can suffer big losses in a matter of days or even hours. If you decide to risk no more than 5 of your account in a single trade, you won't lose all your account unless you lose more than 20 times in a row.3 Trade with a solid and reliable broker. If you choose the wrong broker, that's enough to be in a high risk situation. Don't ever trade with unregulated brokers or brokers that trade against their clients.

One Minute Forex Scalping Strategy

Scalping is forex trading strategy which is generally used on short time frames like one minute or 5 minute time frames to take small profits. The following is one of the scalping strategies. Use this strategy in London and US market timings as this is when the market movies in a trend most of the times. You can use this strategy from one or two hours before the London market as the market sometimes starts moving in a trend before one or two hours of the London market begins.

Pivot Points in Forex Trading

What are pivot points in forex trading Pivot points are support and resistance lines calculated using the previous period's low, high and close values. These values give you the current period's support and resistance lines which can be used to enter or exit forex trading. The period can be hourly period or daily period or weekly period or monthly period. Why to use pivot points in forex trading

Dinapoli Targets Forex Indicator

Dinapoli Targets Forex Indicator is a leading oscillator used for the purpose of support and resistance . It indicates four points in price moves (Excluding the starting point). Forex Trader can use these points for support and resistance purposes. We can see it from the following chart. Forex trader should remember that support once broken became resistance . We can further understand with the help of following Chart. In the above Chart we can see how the support is acting as resistance once it is broken. Forex trader can use this for making profit. Once the support is broken wait for the price to retrace back to the support line and enter into a short trade. You can use the next level or the major resistance line which is the blue line as the profit target.

Test Your Forex IQ

The following questions test the knowledge you've acquired by reading this book. You are able to take this quiz, place your responses, and find the answers, as well as new questions, at www.learn4x.com forex IQ. E-mail Abe Cofnas at learn4x earthlink.net with any questions you may have. Good luck 8. How do you measure sentiment in forex 18. When trading forex, what is the cost of the trade when there is no commission 20. If forex prices surge or plunge in response to news, how long should you wait to enter a trade 36. How do G7 and G20 meetings affect your forex trading 83. Joe put on a sell limit order for the GBPUSD at 1.9205 and he saw on his chart that the price hit limit. He didn't get it, though. Did the forex firm make a mistake

Gft Forex

GFT (www.gftforex.com ) is one of the largest online retail brokers. As a world-leading FOREX company, GFT has received numerous awards for growth, technology, and entrepreneurship. Since starting in 1997, GFT has built a base of retail and institutional customers in more than 120 countries. In the GFT online Resource Center you may get a copy of two booklets, Introduction to Forex Guide and Guide to Currency Trading. GFT is popular with smaller firms, which use GFT's platform and clearing services as an introducing broker (IB). Reprinted with permission of John Wiley & Sons, Inc. Getting Started in Currency Trading Winning in Today's Hottest Marketplace, 2nd Edition by Michael Duane Archer (Wiley, 2008). Global Forex Trading 4760 E. Fulton, Suite 201 Ada, MI 49301 Tel (616) 956-9273 www.gftforex.com info gftforex.com

FX Solutions

FX Solutions (www.fxsolutions.com ) is a leading online foreign exchange broker. The Company provides IB's and White Label Partners FX trading and risk management in over 40 countries through its Global Trading Systems (GTS) platform. Compliant with CFTC and NFA regulations, FX Solutions' custom-engineered suite of applications includes one-click trading, automated execution on more than 99 of trades (period of April 1, 2008 - June 30, 2008), a proprietary price feed and competitive fixed-spread pricing resulting in low effective spreads. FX Solutions has web sites and complete customer support in multiple languages. FX Solutions, LLC 1 Route 17 South Saddle River, NJ 07458 201-345-2210 ph 201-345-2211 fax www.fxsolutions.com info fxsolutions.com The popularity of FOREX has given rise to a very robust third-party vendor marketplace. The range of services is extraordinary.

S90Crossover with Gaps Holes and Fibonacci Levels

FIGURE 5.1 Illustration of a gap and how bodies, not wicks, fill gaps. Courtesy of Concorde Forex Group, Inc. FIGURE 5.1 Illustration of a gap and how bodies, not wicks, fill gaps. Courtesy of Concorde Forex Group, Inc. FIGURE 5.2 Illustration of a hole in the market. Courtesy of Concorde Forex Group, Inc. FIGURE 5.2 Illustration of a hole in the market. Courtesy of Concorde Forex Group, Inc. FIGURE 5.3 Illustration of a large hole in the market. Courtesy of Concorde Forex Group, Inc. FIGURE 5.3 Illustration of a large hole in the market. Courtesy of Concorde Forex Group, Inc. Courtesy of Concorde Forex Group, Inc. Courtesy of Concorde Forex Group, Inc. FIGURE 5.5 Illustration of a hole generated by a single candle. Courtesy of Concorde Forex Group, Inc. FIGURE 5.6 A 30-minute chart showing a resistance S90, gap, first strike, and a hole. Courtesy of Concorde Forex Group, Inc. FIGURE 5.6 A 30-minute chart showing a resistance S90, gap, first strike, and a hole.

Multiple Time Compressions

Concorde Forex Group

FIGURE 10.2 River Oscillator Indicator (ROI signal). Courtesy of Concorde Forex Group, Inc. FIGURE 10.2 River Oscillator Indicator (ROI signal). Courtesy of Concorde Forex Group, Inc. FIGURE 10.3 River channel (RC) signal. Courtesy of Concorde Forex Group, Inc. FIGURE 10.3 River channel (RC) signal. Courtesy of Concorde Forex Group, Inc. FIGURE 10.4 Multiple time compressions. Courtesy of Concorde Forex Group. FIGURE 10.4 Multiple time compressions. Courtesy of Concorde Forex Group.

S90Crossovers Trend Bounces and Holes in the Market

S90 Crossover Pattern

FIGURE 8.1 View of trends within trends. Courtesy of Concorde Forex Group, Inc. FIGURE 8.1 View of trends within trends. Courtesy of Concorde Forex Group, Inc. FIGURE 8.2 Example of drawing trend lines. Courtesy of Concorde Forex Group, Inc. FIGURE 8.2 Example of drawing trend lines. Courtesy of Concorde Forex Group, Inc. FIGURE 8.3 Example of the market returning to the trend line. Courtesy of Concorde Forex Group, Inc. FIGURE 8.3 Example of the market returning to the trend line. Courtesy of Concorde Forex Group, Inc. Proof Live Forex Trading Examples and Interviews with Traders Is there existing proof that this type of trading application actually works Yes The proof is in the form of live trading histories provided by traders who are associated with Concorde Forex Group, Inc. (CFG), also known as CFGTrading (www.cfgtrading.com ). Other companies that hold proven copies of trading histories are Forex Producers Group, LLC (www.forexproducers.

Extreme Levels of a Trading Range

What Are S90 Crossover Extreme Levels within the Forex Technologies, LLC (which originally began as a sole proprietor company under another name and with no income) developed the charting software and white-labeled for resale the charts known as SmartCharts. DGB now has white-labeled the charting product to two forex companies Concorde Forex Group, Inc. (CFG) (www.cfgtrading.com ) and Forex Producers Group, LLC (FP) (www.forexproducers.com ). Both of these companies offer the SmartCharts along with a free look before a subscription. I am sure there will be other companies offering the product soon. SmartCharts currently obtain data from almost 500 banks in order to feed a large amount of data into the charts in microsecond increments to create a real-time data feed experience. A massive amount of data is required to have an accurate reading for the extreme levels within the market.

The Personality and Performance of the US Dollar

Gaining a fundamental understanding of the U.S. economy is a critical part of being prepared fundamentally for forex trading. The U.S. economy is still the largest developed economy in the world, and therefore the U.S. dollar reflects this importance. Much of the world's trade is denominated in dollars, and global reserves of central banks hold over US 4 trillion, which is about 60 percent of all reserves, according to latest data. It is true that we are in a period when the world economy is growing, particularly with the growth of Asia. This growth may mean that in the coming years, the preeminence of the U.S. economy will diminish. However, as the U.S. economy remains the critical pivot point of the world economy, forex trading will continue to pay close attention to U.S.-based economic events. In particular, the forex trader, in trading a currency pair involving the dollar, is actually making a judgment or a bet about the direction of the U.S. dollar with regard to the other pair.

Automated Trend Tracking Software

FIGURE 10.5 Automated trend-tracking software long-term and short-term trend walls. Courtesy of Concorde Forex Group, Inc. FIGURE 10.5 Automated trend-tracking software long-term and short-term trend walls. Courtesy of Concorde Forex Group, Inc. Millions of levels are available to traders in the forex within trading ranges and within trading ranges found within trading ranges that are compounded, it seems, into infinity. Choosing a safe and correct level for a planned entry and then following the plan with no emotion has become a major challenge for many traders because of the massive amount of information that has suddenly appeared on the Internet in just the past few years. It is difficult for traders to determine what system or program to follow that will give the best protection for their margin accounts. FIGURE 10.6 Reversal entry example 60-pip movement. Courtesy of Concorde Forex Group. FIGURE 10.6 Reversal entry example 60-pip movement. Courtesy of Concorde Forex Group.

How to Trade with the Fibonacci Tools

The Fibonacci tool in Forex is a sequence of numbers used to determine key levels at which the price action could retrace to, and by extension, continue the move in the direction of the trend. The concept of the sequence of numbers was derived from the Fibonacci sequence, which was discovered by an Italian Mathematician called Leonardo Fibonacci. In financial analysis, the Forex Fibonacci calculator can be used in four different ways, but the commonest usage is in the technical analysis to determine retracements and extensions. The MT4 platform has two Fibonacci tools, which are referred to as Fibonacci retracement and extension tools. In previous article, I wrote about Pivot Point calculation , so don't forget to read it too. What does the Forex Fibonacci software do The Fibo retracement tool uses horizontal lines to determine areas of support and resistance.

Trending Market and Ranging Market: How to Discern One from Another

The movements of currencies in the Forex market will produce one of two types of directional movements on the currency charts. A currency pair can be described as Typically, the common belief among many retail traders is that money can only be made when trading Forex in a trending market, but this is not the case. There are opportunities to make money even in ranging markets it only depends on if the trader is able to decipher a ranging market, and know how to profit from it accordingly. Let us describe the markets individually. A trending market is one characterized by net movements of the price action of a currency pair in an upward or downward direction. We say, net movements because in either direction, the market does not just assume a one-way traffic movement. There will be periods of retracements and pull-backs but when the corresponding longer-term chart is used, the movement of the currency will generally be seen to be in one direction or the other.

Top 10 Warren Buffett’s Tips and Famous Quotes to Learn

Note If you consider to start investing your money, my tip to take a look at automated Forex trading. As an example, here is a review of EA Shark from Forexeasystems . This expert advisor will provide you with a head start in your trading career. Furthermore, feel free to download Forex tools for MT4 platform on Pipburner.

How to Use Stop & Limit Orders to Improve Trading Performance

Use of stop orders and limit orders provide automatic execute buys or sells of forex contracts. If structured properly, they can provide By placing a limit order , a trader is telling a broker to execute a trade at a certain price or better (given the direction desired by the trader). A stop order is activated when the value of a forex contract reaches or passes the stop order line. At that point, the contract is executed at the market price.

Meta Trader 5: Unloved Child of Meta Quotes

One of the Barney Stinson's (character from How I met your mother ) rules says new is always better That is quite true, just look at yourself. I bet you don't read this text from the computer that takes two stores and could warm up an entire city in Alaska after 15 minutes of working. Your phone weights less than your wallet but you can shoot an HD video with it. I'm ready to bet that your car has more than 2 horse powers.But let's look at the Forex trading market.

How To Backtest An Expert Advisor In Metatrader

Metatrader is one of the forex platforms.Metatrader is one of the forex platforms. You can download and install it from many forex brokers like FXDD, Alpari etc. Most of them provide a demo account. This article is mainly about how to backtest an expert advisor on a metatrader forex platform. Forex Metatrader Platform Forex Metatrader Platform Copy the expert advisor files into the required folders as instructed by the expert advisor manual. Generally whenever you buy an forex expert advisor, you will also get a manual that tells you where to copy the expert advisor files. Generally this is the expert folder, you have to copy the files. Suppose you install metatrader application from FXDD, under program files in C drive, the path will be C Program Files FXDD MetaTrader 4 experts. But you may have to copy some other files into other folders. Go through the manual and copy the files accordingly. Once you copy all the expert advisor files, you have to restart the metatrader application.

Basic Bollinger System

The Basic Bollinger System is a forex trading strategy that is used in range-bound markets. Range-bound markets typically exist when the market is waiting for direction from a major Economic News item coming out from a one of the major forex currency countries. There are also some currency pairs that are typically range-bound, such as the EURGBP currency pair.

Candlestick Pattern Recognition Indicator - CPI Indicator

Most of the forex traders know that candlestick patterns are very important in forex trading. There are a lot of candlestick patterns and it is really very difficult to observe different currency pairs charts and finding out the patterns. Even though this indicator gives buy and sell signals with green and red arrows, don't entirely depend on this indictor alone. Candlestick patterns are definitely helpful in forex trading but sometimes they alone may not work. If you have a strategy in hand that uses candlestick patterns this indicator is definitely helpful. If you want to find some free forex strategies you can go to the link where you can find different free forex strategies available on my blog. Some of them might use candlestick patterns .

Mama Ehlers Mesa Adaptive Moving Average Indicator

MAMA indicator is a leading oscillator used by forex traders for the purpose of taking fresh position and support and resistance purpose. We can see two averages in above price chart that is MAMA . Blue Line is a fast moving average where as red line is a slow moving average. Forex trader can apply MAMA and get indication regarding taking short or long position. That is how it looks in Metatrader 4. We can see default value of 0.5 and 0.05. Forex trader can make changes depends upon volatility in market.

Adding Sex Lines

In my eBook Forex Sailing (released simultaneously with this eBook) I talk extensively about S.E.X. Lines, what they are and how to use them. I'm just going to assume you've already read it, but if you haven't then skip reading this section and come back to this once you have read about S.E.X. in Forex Sailing . The next bunch of waves continued upwards, but I won't give you the play by play commentaries I think you get the idea by now. What is really cool is that EVERY wave made a higher low, so if you would have use trailing stops as learned in Forex Surfing you simply wouldn't have gotten out (Keep in mind that that certainly doesn't happen in every trend, but for this one we got lucky).

What Is Scalping

Scalping can have various descriptions depending on whom you ask. Some folks would say that some Forex Surfing techniques are considered scalps due to the small size and duration of the trades. Different traders have different techniques for scalping, but one thing that can be universally agreed upon is that scalping involves tiny trades (both in amplitude and duration). A scalper typically trades multiple Forex lots (mini or regular lots depending on the size of the account and risk tolerance), often more lots than one would normally trade if trading as either a day trader or a position trader (simply due to the fact that those styles typically require larger stops thus shrinking the amount of lots one can safely trade according to equity management principles). By trading more lots a scalper can achieve significant gains comparable to the gains expected by day & position traders in the same time span even though the scalper engages in much smaller individual trades.

Pivot Awi18is

Fxbootcamp Pivots Points

Source FX Bootcamp, LLC (www.fxbootcamp.com ) DealBook' 360 screen capture printed by permission, iti 2008 by Global Forex Trading. Ada Ml USA Source FX Bootcamp, LLC (www.fxbootcamp.com ) DealBook' 360 screen capture printed by permission, iti 2008 by Global Forex Trading. Ada Ml USA With the likely direction of the day's trend now established, we need to identify likely profit targets based on our assumption of direction. At FX Bootcamp, we have two targets, one conservative, and one a little more aggressive. However, together they provide a pivot profit zone. Source FX Bootcamp. LLC (w

Micro Trends Trends

How Trafe Micro Trends Forex

This should be easy for you to understand as it was extensively written about in my eBook Forex Surfing (which is prerequisite reading before reading this eBook). Furthermore, I discussed at length the topic of Petit Trends connected with Micro Trends in the above section of this eBook. For the above reasons I won't be writing too much here about this subject but will touch upon it to discuss some of the nuances that you need to be aware of, and to briefly review some concepts. The concepts taught in Forex Surfing can be considered scalping techniques in and of themselves, but as surely by now you recognize, the techniques presented in this eBook are more specifically scalping techniques .

Technical Analysis

As a frequent speaker at forex conferences around the world. I've seen a lot of technical analysis techniques outlined in presentations given by other speakers. I will never forget one particular speaker who gave an incredibly detailed seminar about his outrageously complicated technique. It was amazing No one could figure out what ho was talking about. Then, about 45 minutes into his one hour speech, he realized that he had made a mistake. After flipping through his notes and sorting through some slides, he left his audience totally confused. Source FX Bootcamp, LLC (www.fxbooicamp.com ) DealBook'S 360 screen capture printed by permission, 2008 by Global Forex Trading. Ada Ml USA Source FX Bootcamp, LLC (www.fxbooicamp.com ) DealBook'S 360 screen capture printed by permission, 2008 by Global Forex Trading. Ada Ml USA For example, let's say you are trading the Cable (GBP USD) in a 25-pip range.

Flip Go Strategy

We learned two strategies so far Forex Cash Cow - a swing trading strategy and Forex Runner - a day trading strategy. At this point you probably understand that my approach to trading is by using as little or no indicators at all. I look at the market in a different way than most traders. My personal opinion is that most trading indicators are worthless (and trust me, I have tested and traded most of them earlier in my career ). The Flip & Go strategy is another day trading strategy that I like to use since it is very simple to implement and results can be very rewarding. The logic behind this strategy is as follows. As you have already learned earlier in the course, the forex market is a 24 hour market. Never stops (except on weekends) and moves from one area of the world to the other as days start and end in each and every continent. We also know that the market behaves in a different manner within each period during the 24 hour trading day.

Compounding Gains

At this point you employ the trailing stop method you've learned in Forex Sailing , trailing your stop set at the price of the base of the waves. You keep on trailing your stops of all trades to the base of each wave as taught in Forex Surfing . Thus all your trades have the same stop price, except for perhaps the newest trade added to your series.

The Profit Objective

Having money, desire and a strategy are not the only elements you need in order to start trading. You also need time. Many people would like to enter the world of trading but simply lack enough time mainly because they have day jobs. This is exactly why I created the Forex Cash Cow strategy. It requires minimal time to implement and for most people easy to trade even if they have a day job. Implementing them would not take more than one or two minutes per day of the traders time (and not even every day since the pattern occurs on an average 3-4 times per month). When trading the Forex Cash Cow strategy I monitor the market once every night to first see if there was a 140 pip or more day. If no, then nothing happens next day. If yes then I program my trade station to alert me via email (an email account which is linked to my mobile phone SMS service) once the market breaks high low by 30 pips.

Forward Extra

The forward extra structure has been developed primarily for hedging purposes and is essentially a European option that turns into a forward foreign exchange contract if a trigger level is reached. For zero cost, the purchaser of the structure can acquire protection against an adverse foreign exchange rate move and can benefit from a favourable limited move on the underlying, provided that the trigger level has not traded during the life of the option. For example, assume a dollar call Swiss franc put forward extra option with a maturity period of six months, an option strike rate of 1.6300 and a trigger level of sfr 1.5100. Thus, the purchaser has the right to buy dollars and sell Swiss francs at 1.6300 in six months' time, unless sfr 1.5100 trades at any time during the life of the option, in which case the purchaser is locked into a synthetic forward foreign exchange obligation to buy dollars and sell francs at sfr 1.6300 (assume a spot reference rate of sfr 1.6200).

Sitimitv

So where do you slart as a new forex trader I sitggeti the l, SD. The socalled majors- are the most Liquid and widely traded currency pairs in the world. Trades involving Lhe majors make tip the vast minority of total forex trading. Think about it. if the USD is half of every major currency pair, and the miyors comprise most of lhe entire forex market, then your focus or understanding what drives the USD will have a huge impact or nearly all of your future trade plans. There is also a wonderful benefit of specializing n trading the USD. The U.S. dollar, since the end of World War 1. has been the reserve currency of lhe world. What d

School of Pipsology

Forex education is crucial for beginners. BabyPips.com's School of Pipsology is designed to help you acquire the skills, knowledge, and abilities to become a successful trader in the foreign exchange market. Our definition of a successful trader is having the ability to do three things This is how our lessons are broken apart so you can relive the past and also be able to learn and study forex trading techniques at your own pace. You will learn how to identify trading opportunities, how to time the market, and when to take profits or close a trade. But that's not all folks. You will also learn the art of risk management how to maximize your profits and keep your losses to a minimum. Our curriculum here at the School of Pipsology will make a bold attempt to cover all aspects of forex trading.

Corridor

The corridor option structure was designed principally again for trading purposes. The structure profits to the extent that spot foreign exchange stays within a range and is often linked with a deposit for yield enhancement purposes. The purchaser specifies a currency range and pays a premium upfront. For every day during a set period that the spot foreign exchange rate fixes within the specified range, a portion of the payout is locked in. If the spot foreign exchange rate fixes within the range every day, then the maximum payout will be due. However, if no days fix within the range, then the payout will be zero. The actual payout is calculated on a pro-rata basis. This product is similar to the range binary option in that both options will profit if a spot foreign exchange rate stays within a range.

Barriers

Barrier options are one of the groups of options that are known as path dependent options. They are essentially a European style option with fixed maturity, fixed call and put currencies and fixed strike price but with an additional trigger level. There are a number of different types of barrier options but their common feature is that they are either activated or terminated if a predetermined spot foreign exchange rate, or trigger level, is traded at any time before the expiry date. Barriers can be split into two general groups With standard barrier options, there is a reduction in the premium associated with this additional trigger level feature (relative to the equivalent European style option). This trigger level must be placed out-of-the-money relative to the option. This means below the spot foreign exchange price for a call on the base currency and above the spot foreign exchange price for a put on the base currency.

Questions And Problems Yyt

When a known cash outflow in a foreign currency is hedged by a company using a forward contract, there is no foreign exchange risk. When it is hedged using futures contracts, the marking to market process does leave the company exposed to some risk. Explain the nature of this risk. In particular, consider whether the company is better off using a futures contract or a forward contract when 3.24. What is the difference between the way in which prices are quoted in the foreign exchange futures market, the foreign exchange spot market, and the foreign exchange forward market

Find the MEW Rates in Canada Australia and the United Kingdom

What is important to realize about fundamental analysis of housing sector data is that the trader can identify pending changes in trends and direction of the economy. Of course, it is true that forex prices move all the time in reaction to news and the like, but economies don't change direction overnight. By understanding housing data, one can develop a fundamental viewpoint that leads to trading strategies before technical price patterns reflect the change. For example, in Table 1.1 we see data on U.S. new housing starts. The year 2005 was a year of a high level of housing starts peaking in February at 2.2 million units and then testing that peak in January 2006 (see Figure 1.2). After January 2006, the data showed a decline, and by August 2006, the decline in housing starts reached levels of 2003.

What Is the Interbank

Many people operate under the misconception that the Interbank is a big bank housed in a building. The practice of capitalizing the name lends to this misunderstanding. The Interbank is actually the network of banks and dealers that make up the cash currency marketplace. Thus, multiple systems like CHIPS and various methods and channels for clearing cash currency transactions are available. Recall that FOREX is largely unregulated. It is not likely that the average investor will find him- or herself in front of a primary trading or dealing screen or in a dealing room. Therefore, trading terms used in the FOREX dealing rooms are not a requirement for investor participation. For example, when a bid is matched, you might hear or see the word yours. Offers are made with the phrase I sell at or Selling at. As electronics dominate, language is replaced by blinking bids and asks, whereas matched trades may only change colors. See Figures 6.6 through 6.11. Figure 6.

By Barbara Rockefeller

Every once in a while the FX market gets religion and trashes the dollar because such a massive trade deficit, about 7 percent of GDP, is not sustainable. Plenty of respectable academic economists and high financial officials agree, including former Federal Reserve Chairman Alan Greenspan. But specific gains on the trade imbalance are no more important than the countervailing capital flows. Much has been made of China's decision to break off two small chunks of its foreign exchange reserves into special investment agencies that will invest in securities or enterprises other than U.S. Treasuries. This was potentially very worrisome, since the motivation was to get a better return than Why is everybody losing money in forex Despite unprecedented liquidity, professional currency managers have had a rough go of it in 2005 and 2006.

Find Other Equities that Provide Insight into the Housing Market

Tracking changes in how an economy is growing is clearly an important part of gaining a sense of whether a currency will be strengthening or weakening. The relationship of growth and currencies applies throughout the world. While there are many aspects to economic growth, the forex trader's main focus should be on interest rates. An increase in interest rates tends to strengthen the currency. The trader needs to go further than just knowing what the rate levels are. They trader needs to assess whether the economy is strengthening or weakening. Housing data is one of the most important areas that affect the decision to increase rates, keep rates the same, or decrease rates. The forex trader should keep track of housing data when trading a currency.

Position Trading Settling in for the Long Term

As its label suggests, position trading is all about taking a directional market position and holding it for as long as the trade makes sense from a trend standpoint. This usually means that positions are held longer- term. In the fast- moving, impatient world of foreign exchange trading, longer-term could mean anywhere from as short as a week or a month to as long as a year, or possibly more. Most individuals trading foreign exchange on a retail basis do not have the patience to be position traders. This is somewhat unfortunate, as position trading can be one of the most profitable styles of trading due to the fact that many currencies tend to trend exceptionally well on a longer-term basis. Only those position traders who have the patience to stick with the trend and let their profits run are generally able to capitalize substantially on these longer-term price moves.

LUXOR tested on different bar compressions

It is fascinating to check how a trading strategy changes on different timescales regarding its important system figures and equity lines. Let's do such a timescale analysis for the LUXOR trading system. As you remember LUXOR was developed on 30 minute data of the British pound US dollar FOREX market. Let's have a look at the equity lines on different timescales (Figure 4.2). You see from these curves that our developed system logic gains steady profits on all the different timescales, starting from 5 minute up to 180 minute bar calculations. Figure 4.2 Detailed equity curves from system tests on different timescales - from 5 minute up to 180 minute bar calculations. Trend-following system British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with entry time window 9.30am-1.30pm GMT. SLOW 44, FAST 1. All three exits in place 0.3 risk stop, 0.8 trailing stop and 1.9 profit target. Including 30 S+C per RT. Figure 4.

Measuring Trends with CCI on Short and Long Term Charts

The upper and lower bands on this CCI are set to +100 -100. Now some people like to trade off shorter time frames like the five-minute chart I used as an example earlier. I don't. I'd much rather stick with the slower times frames of the 30,60, 180, 240, and daily when I trade Forex. Since we are trading a 24-hour market there is less of a need to use shorter time frames. Traders involved in the futures or stock markets will often use shorter time frames because they are looking for setups in a market that closes each day and may only trade a few hours like the Cocoa market or TA hours like the equities market.

Looking for profit targets Maximum Favourable Excursion MFE

Maximum Adverse Excursion

Figure 3.16 The MFE graph shows the realised profit loss vs. run-ups of all trades. Green winning trades, red losing trades. LUXOR system tested on British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with 0.3 risk stop and 0.8 trailing stop. Input parameters SLOW 44, FAST 1, including 30 S+C per RT. Diagram created with TradeStation 8. Figure 3.16 The MFE graph shows the realised profit loss vs. run-ups of all trades. Green winning trades, red losing trades. LUXOR system tested on British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with 0.3 risk stop and 0.8 trailing stop. Input parameters SLOW 44, FAST 1, including 30 S+C per RT. Diagram created with TradeStation 8. Let's verify if these findings can stand further computer tests. We take our basic breakout system with the two stops and add a profit target. The target closes each trade immediately if a profit of x percent of the market value is reached (Figure 3.17).

Performing a Monte Carlo analysis with the LUXOR trading system

Table 4.1 Monte Carlo analysis of 5000 permutations with worst case maximum drawdown and average drawdown as a function of confidence level. Trend-following system LUXOR British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008. Calculation based on one contract basis, results including 30 slippage and commissions per trade. Calculation performed with Market System Analyzer. Table 4.1 Monte Carlo analysis of 5000 permutations with worst case maximum drawdown and average drawdown as a function of confidence level. Trend-following system LUXOR British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008. Calculation based on one contract basis, results including 30 slippage and commissions per trade. Calculation performed with Market System Analyzer.

The concept of Maximum Adverse Excursion MAE

Figure 3.11 The MAE graph of LUXOR system. Green winning trades, red losing trades. System tested on British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with entry time window 9.30am-1.30pm GMT. Input parameters SLOW 44, FAST 1. Without exits, always in the market, including 30 S+C per RT. Diagram created with TradeStation 8. Figure 3.11 The MAE graph of LUXOR system. Green winning trades, red losing trades. System tested on British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with entry time window 9.30am-1.30pm GMT. Input parameters SLOW 44, FAST 1. Without exits, always in the market, including 30 S+C per RT. Diagram created with TradeStation 8. Figure 3.12A MAE graph in percentage terms. Green up arrows winning trades, red down arrows losing trades. Trend-following system British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with entry time window 9.30am-1.30pm GMT. Input parameters SLOW 44, FAST 1.

Principles of a Bargain Hunter

Currency trading isn't like other businesses. You can't advertise your way to more sales or work your way to greater levels of success. The market doesn't care whether you spent 10 minutes or 10 hours planning a trade it won't reward you for the extra time. Trading doesn't require 70 hours a week. If you want to work that hard, perhaps you should consider becoming a doctor, a lawyer, or a chief executive officer. The market will only offer a good trade when it is ready, you can't force a good trade with more time in front of the charts.

External Indebtedness Liquidity And Solvency Analysis

The second avenue is to measure the real weight of the debt through its net present value -a measure that takes into account the fact that a significant part of the external debt is contracted at a below-market interest rate. This is being done by the World Bank to calculate eligibility criteria to the HIPC's Debt Reduction Initiative. The real debt burden should comprise forward foreign exchange transactions as well as key contingent liabilities. combine financial relationships between flows of obligations and earnings. For the borrower, as Sachs pointed out, the happy state of affairs depends on nominal interest rates remaining below the growth rate of dollar exports of the debtor countries, or real interest rates remaining below the growth rate of real exports, in order to stabilize the debt-to-export ratio (Sachs, 1989, p. 7).

The Hesitation Zone In Quarters Theory

Quarters Theory Training

The Three-Day Rule of The Quarters Theory serves as a time stop for each Inverse large Quarter Trade. If prices fail to complete a Large Quarter and an Inverse Large Quarter Trade has not accomplished its goal in the time period required by the Three-Day Rule of The Quarters Theory of three 24-hour trading sessions on the global foreign exchange market, the trade may be closed by the end of the third day, or the take-profit limit price may be changed to lock in any smaller profits. Also on the third day, the stop price should be moved to a breakeven level at the initial entry price to protect the trade against losses. If it is too late to take the above-mentioned steps, the trade may simply be closed at a smaller loss to prevent prices from reaching the predetermined 100 to 110 PIP stop-limit order that may get triggered during trend reversals as a result of the unsuccessful completion of a Large Quarter.

Point Figure Trading Pointing Out Breakouts

Though visually distinct from all the other chart-trading strategies discussed thus far, point & figure (p&f) trading is, in many ways, very similar to traditional support and resistance breakout trading on bar or candlestick charts. The primary difference lies in the look and functionality of the price charts themselves. Many forex charting platforms include an option to view charts using the p&f structure. As described in Chapter 3 ' p&f charts actually represent price in a radically different manner from the more familiar bar and candlestick charts. Exhibit 5.15, which displays a typical forex p&f chart, shows just how differently they can look. Point & figure trading is trading that is based exclusively upon price action, which makes it ideally suited to the foreign exchange market.

Typical Elliott Wave Trading Plan

The sin of arrogance is less frequently seen nowdays increased volatility in the forex markets has taken its toll. Traders who presumed to possess the inside track on market movements, and speculators who tried to will the market to go their way before it is ready, did not survive this far. There are not enough of the cocky traders left to make a mark on the casualty chart. This may disappoint those who are looking for rigid, absolute answers to the forex markets' questions. But it is a fact of life that most predictions and forecasts are destined to fail it is simply impossible to pinpoint the confluence of specific time and price elements at any part of a market movement. The best way to use the wave principle is to accept this fact. Provide for the occurrence of errors of judgement, then subsequently deal with the alternatives to produce winning strategies. There are no guarantees in the forex market, there are only maybes.

Get the Real Insider Secrets Prom an ExBank Trader They Confided In

Marrket Makers Ubs

This is a book I never thought I would write how many times have you read that before However, I never imagined doing this project. The genesis of this E-Book came about because I was (and still am) tired of Forex Trading being touted as a get rich quick scheme. I hear about these Black Box systems being sold for 79.00 and they tell you when to buy and sell. If any of these systems were worth anything, they would cost much more then 79.00 and major banks would use them instead of Human Traders. I, as a Chief Dealer would have loved to deal with computers instead of people any day. Computers don t come into the office with an attitude, they are never hung over from the night before, and always do what you command. Unfortunately and fortunately this is not the case. You need human interaction in Forex, because the Forex market is the sum of all fear and greed. (The Forex Market is always thinking, it is alive, it is you and I and everyone else. It is Trillions large.

Patterns and Antipatterns Know Your Mark

Bollinger Bands Pattern Recognition

In every life situation where only imperfect information exists, observation and pattern recognition are critical to successful decision making. Technical analysis is no different. Common price patterns exist and repeat themselves endlessly. In fact, as I once wrote in an article, For anyone who has ever actually watched price flow on a tick-by-tick basis for months on end, what soon becomes strikingly clear is not the wild randomness of price patterns, but their mundane repetitiveness. Indeed, the common technical formations are all well known and have long ago been classified. This chapter focuses on not only the basic trading patterns that all technicians look for in the FX market, but also their antipattern counterparts, because in order to trade patterns successfully, the well-versed technical trader must also understand how these price patterns can fail and often morph into completely different technical setups. Source FXtrek IntelliChart . Copyright 2001-2005 FXtrek.com, Inc.

What is Renko Charting

Weapons of reconnaissance and detection that allow the trader to identify threats to the profits he has gained. Why is this important as a tool for improving trading exits and capturing more profits The answer is that by setting Renko bricks to a small or microlevel price increment, if a pattern results, even at a very small increment, this pattern will enable the earliest possible detection of a change in sentiment. The trader needs to detect such changes so that he can capture and protect the profits he has achieved. In currency trading, for example, a few seconds can be enough to wipe out all of the pips gained, and the price can easily reverse into negative territory. Using Renko charts, the trader gains

Adding a trailing stop

Figure 3.15A The principle of a trailing stop. Chart example from British pound US dollar (FOREX), 30 minute bars, September 2008. Chart from TradeStation 8. Figure 3.15A The principle of a trailing stop. Chart example from British pound US dollar (FOREX), 30 minute bars, September 2008. Chart from TradeStation 8. Figure 3.15B Ratio of total net profit maximum intraday drawdown as a function of the distance of an added trailing stop. Risk stop loss of 0.3 kept in place. LUXOR system tested on British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with entry time window 9.30am-1.30pm GMT. SLOW 44, FAST 1. Including 30 S+C per RT. Figure 3.15B Ratio of total net profit maximum intraday drawdown as a function of the distance of an added trailing stop. Risk stop loss of 0.3 kept in place. LUXOR system tested on British pound US dollar (FOREX), 30 minute bars, 21 10 2002-4 7 2008, with entry time window 9.30am-1.30pm GMT. SLOW 44, FAST 1. Including 30 S+C per RT.

Presettlement vs Settlement Risk

In contrast, settlement risk is due to the exchange of cash flows and is of a much shorter-term nature. This risk arises as soon as an institution makes the required payment until the offsetting payment is received. This risk is greatest when payments occur in different time zones, especially for foreign exchange transactions where no-tionals are exchanged in different currencies. Failure to perform on settlement can be caused by counterparty default, liquidity constraints, or operational problems.

SEX Lines Techniques

Already be familiar with the concepts of consolidations , ranges , triangles , channels and other sideways-moving market phenomena by having read the eBook Forex Surfing . Since you are looking at daily charts (a bigger picture chart than say a 5-minute chart), when you see bunched lines this indicates that the markets are (on a rather large scale) consolidated, and that you should be looking at a few particular styles of trading. Suggested styles of trading would be range trading techniques (i.e. Channel Surfing Zones done on a large scale), and Forex Surfing techniques working on catching the micro trends that develop inside the large scale consolidation (after all, markets can be trending up down for days within the large scale sideways movements). Here is an interesting observation to make that can be clearly seen on the chart above notice how the bunched lines can sort of show you approximately the mid-point of a consolidation.

Hesitation Zone In Quarters Teory

The Three-Day Rule of The Quarters Theory serves as a time stop. Stops or stop-loss orders are orders to close a trade at a predetermined price level in order to avoid or to limit losses. Stops can be set not only by using prices, but also by time. Time stops provide a clearly defined period of time for each trade to reach its objective. If a trade does not accomplish its goal in the specified time period, the trade may be closed either to lock in profits or to protect against losses or to limit them. The objective of The Quarters Theory Trade is the successful completion of a Large Quarter. The Three-Day Rule of The Quarters Theory sets a clearly defined time period of three 24-hour trading sessions on the global foreign exchange market for each Quarters Theory Trade to reach its objective.

Commitment Of Traders COT report

The COT report provides traders with detailed positioning information about the futures market, and is, in my opinion, one of the most underrated tools that forex traders can make use of to enhance their trading performance. There are basically two types of reports available the futures-only COT report and the futures-and-options-combined COT report. I usually just access the futures-only report for a glimpse of what has happened in the futures dimension of the forex market. In order to get through to the currency futures data, you have to wade past other commodities like milk, feeder cattle and so on, so a little patience is required. Figure 5.3 shows a page from the December 19, 2006, COT report (short format), displaying data for the Chicago Mercantile Exchange's Euro FX futures contract. You can see the long and short positions held by traders in each of the three main categories defined by the CFTC, as explained below.

Single currency margining and settlement

In order to calculate this, each currency is notionally converted to the base currency chosen by the client as the preferred settlement currency. Interest would normally be received on the currency deposited and would be charged on the currencies, which are in debit. Both the clearing broker and the client, as the amount due in the settlement currency is only calculated once overnight, using the end-of-day FX rates incur an intra-day FX risk. Therefore, if this service is offered to many clients it needs careful control by Operations management to ensure that FX risks are properly managed. Even major currencies need to be monitored so that the Management Team is aware of exposure to each currency. Additional problems can be incurred with some of the minor global currencies, as these are not always readily available for use.

Where potential breakouts occur

Price breakouts do not just spontaneously take place at any time, although they may be triggered under the influence of sudden forex-related news or comments or unexpected geopolitical events. Breakouts usually occur in zones whereby bulls and bears are engaged in a tumultuous conflict, with one side feeling anxious about defending the zone, and the other group feeling eager to launch a deadly attack. A lot of force and momentum is required to push currency prices beyond their comfort zone, but no one really has the information of how much buying pressure is available or is needed to launch an upside breakout or how much selling pressure is available or needed to start a downward cascade of prices. Such zones of conflict can be found along trendlines, channels, and around price points and after the completion of chart patterns.

Bill Lipschutz The Sultan of Currencies

It is estimated that, on average, 1 trillion is traded each day in the world currency markets. The vast majority of this currency trading does not take place on any organized exchange but rather is transacted in the interbank currency market. The interbank currency market is a twenty-four-hour market, which literally follows the sun around the world, moving from banking centers of the United States, to Australia, to the Far East, to Europe, and finally back to the United States. The market exists to fill the needs of companies seeking to hedge exchange risk in a world of rapidly fluctuating currency values, but speculators also participate in the interbank currency market in an effort to profit from their expectations regarding shifts in exchange rates.

Btmm And Quarter Theory

The Quarters Theory

In spite of the common perception that fundamental analysis is only suitable for long-term investors, the economic and geopolitical news events that take place daily around the world affect how the major currencies are traded in the Forex market and can produce large price fluctuations in a short period of time. When positive, the outcome of news events and economic releases can increase a previously existing fundamental advantage of one currency over the other in a currency pair and could accelerate the process of completing a Large Quarter that the currency pair may be working on.

BONUS Micro Trading the 1 minute Charts

Now that you have opened a demo account and familiarized yourself with the VT trading platform we would like to introduce you to the Forex trading technique of 'scalping' for small profits. If you only have a small amount of time to trade each day, then this strategy might be the right one for you. Everyone will settle into their own style of trading. This technique is for traders who like getting in and out of trades in a matter of minutes instead of hours. Stock Index Futures traders often use the 1minute charts to enter and exit trades. Forex day traders can also gain an advantage by getting in on a move right as it happens by watching the 1 minute charts.

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