Thursday, June 11, 2009

USD / JPY





In this example of the U.S. dollar is the base currency and thus the principle of "the buy / sell. If you think that the Japanese Government is not weakened yen to help its export industry, is it a BUY USD / JPY order. For this you have bought U.S. dollars in the expectation that they will rise against the Japanese yen. If you believe that Japanese investors pulling money the U.S. financial markets and all the U.S. dollars back to yen, and that also hurt the U.S. dollar, is it a SELL USD / JPY order. So you have sold U.S. dollars in the expectation that they will depreciate against the Japanese yen.

EUR / USD

In this example, the base currency is the euro, and thus the principle of "the buy / sell. If you think the U.S. economy continues to weaken, the dollar is bad, is it a BUY EUR / USD order. For this you bought for the expectation that they will reach the U.S. dollar. If you think theU.S. economy is strong and the euro will weaken the U.S. dollar want to execute SELL EUR / USD order. So you have sold the euro, provided that they belong to the U.S. dollar.

OP AND GFD


OP (Good til canceled)

A GTC order to remain active in the market when you decide to cancel. Your broker does not cancel the order at any time. It is your responsibility to realize that you are okay scheduled.


GFD (Good Day)

A GFD order to remain active in the market by the end of business day. Given that the currency markets is a 24-hour market, this usually means 5pm EST ago, the U.S. markets close, but I would recommend you to check with your broker.

STOP-LOSS ORDER


A stop-loss to reduce the objective is related to open trade in order to avoid further losses if the price goes against you. Stop loss order remains in force until the position is liquidated or cancel the stop-loss order. For example, you go long (buy) EUR / USD at 1.2230. Limit its maximum loss that you have set stop loss order at 1.2200.

This means that if you were dead wrong and EUR / USD drops to 1.2200 instead of moving up, your business should be run automatically sell at 1.2200 and close your position to a 30 pip loss. Stop-loss is very useful if you do not want to sit in front of your monitor all day afraid of losing all their money. Just give the order to halt the loss of all open positions, so do not miss your basket weaving class.


LIMIT ORDERS


A limit to make buy or sell at a specified price. The order essentially contains two variables, price and duration. For example, EUR / USD is currently trading at 1.2050. You go long if price reaches 1.2070. You can sit in front of your monitor and wait for it to reach 1.2070 (at the time you click to buy market order) or you can set a buy limit order at 1.2070 (then you could leave your computer to attendyour room dance classes).




If the price exceeds up to 1.2070, your business will automatically start to buy in order to accurately price. You set the price you want to buy or sell a certain currency pair and also specify how long you want to remain active (GTC or GFD).

MARKETPLACE


The market order is an order to buy or sell at the current market price. For example, EUR / USD is currently trading at 1.2140. If you want to buy in this exact price, click Buy and your marketplace would immediately start to buy in order to accurately price. If you are ever in the shop Amazon.com, it's as well as their use 1-Click ordering. You like the current price, you click once and it's yours! The only difference is you buy or sell one currency against another instead of buying Britney Spears CDs.

HOW TO MAKE FOREX ORDER


There are several basic types of goal that all brokers provide and some other strange sounds. Basic is:

1. Marketplace

2. Limit orders

3. Stop-loss order

4. OP (Good til canceled)

5. GFD (Good Day)

6. OCO (order cancels other)


TECHNICAL ANALYSIS


The principal will ever learn in technical analysis is the trend! Many people would say that the "trend is your friend". The reason is that you're much more likely to earn money when you can find a trend and trade in the same direction.



Technical analysis helps you identify these trends in its infancy, and therefore you are very profitable business opportunities.

FUNDAMENTAL ANALYSIS


Fundamental analysis is the view of the market through economic, social and political forces that affect supply and demand. In other words, you can look at the economy is doing well, the economy sucks.

This type of analysis is that if the economy is doing well, their currency will also thrive. This is because the better the economy, the greater confidence in other countries in that currency.



For example, the U.S. dollar was gaining strength because the U.S.economy gaining strength. Given that the economy improves, the higher interest rates to control inflation and hence the value of the dollar continues to rise.

In short, this is essentially what fundamental analysis is. Later, during the news to learn that a particular event the unit price for most currencies. So far only know that the fundamental analysis of Forex is the currency in which the analysis of forces from the country's economy.

20 RULES TO STOP LOSING MONEY


1. Do not rely on other opinions

This is the money at stake, not yours. Make your own analysis, regardless of source of information.

2. I do not believe in the company

Trade is not the investment. Remember that the numbers and forget the press.

3. Do not break the rules

That for serious situations such as you are probably at this time.

4. Do not try to get even

Trade is not a game of make-to-date. Each position must be maintained on its own merits. Complete loss of composure, and take the next trade absolute discipline.

5. No commercial head

If his name is a buffet, or Cramer, do not trade much. Concentrate on the game, and do not bother to make money.

6. Do not seek the holy grail

It is no secret trading formula, other than solid risk management. So stop looking ga.

7. Remember that discipline

Learning the basics is easy. Most traders do not because of lack of discipline, not a lack of knowledge.

8. Not pursue the crowd

Play and beat their drums. At the time of the multitude of events, which is probably too late ... or too late.

9. No obvious trade

The most beautiful set of samples of the most painful loss. If it seems too good to be true, it probably is.

10. Do not ignore warning signs

Big losses rarely come without notice. Do not wait for a lifeboat to leave the sinking ship.

11. Do not count your chickens

The benefits are not recorded until the trade closes. In the market, given the market and takes away with great fury.

12. Do not forget the plan

Remember why we had the first trade, and should not be blinded by volatility.

13. Do not have a mentality of paycheck

You do not deserve anything for all their hard work. The market is only profitable when it is right, and that your time is very, very good.

14. Do not join the group

Trade is not a team sport. Avoid actions boards, chat rooms and financial TV. Want the truth, not blind support from others with their views.

15. Do not ignore your intuition

Respect Mali voice tells you what to do and what to avoid. It is the voice of the winner trying to reach the thick head.

16. I hate losing

We expect to win and lose with great regularity. Expected to teach it to lose the victory because that victory.

17. Do not fall into the trap of complexity

A well trained eye is more efficient than the battery of indicators. Common sense is more valuable than the copy of the test system.

18. Not to be confused with the possibility of execution

Overpriced software will not help you to trade like the pros. Beautiful colors and lights that fast trader, not better.

19. Project not his personal life

Commerce provides the perfect opportunity to discover how smelly your life really is. Find your house in order before playing the markets.

20. I do not think its fun

Trade should be boring most of the time, like a real job you have now.

FOREX MANAGED ACCOUNT


Managed forex account can give an investor who can not see on the market 24 hours a day the opportunity to participate in the colossal world of foreign exchange ($ 10.000 at least)

A forex managed account May be suitable for investors who prefer that their capital managed by professionals. Studies in the accounts managed by professional foreign exchange showed that the returns are not related to the development of the market.

Consequently, the allocation of portfolio investment in forex managed accounts May be the appropriate way to increase overall portfolio diversification.


FOREX STRATEGY BUILDER


Forex strategy is a visual builder Forex strategy tester back. It uses a combination of technical indicators and logic rules to simulate the commercial process employs historical exchange rates. One involved an automatic strategy generator allows you to form a profitable strategy.

An Optimizer A scanner, Explorer Bar and interpolation methods compared included to ensure maximum quality of your Forex strategy. Our main goal with the goal of building Forex strategy is to provide a free tool for reliable testing of trading strategies based on historical data current.

Therefore we want to include the most common method of technical analysis and a variety of technical indicators, only a user friendly program. Over recent years we have expanded the list of indicators for almost 100 and we are working on the ability to allow users of their strategies to try and exchange for trading in Forex market.

The reason to develop so rapidly that we have received constant feedback from users Forex strategy building proposals which are used to direct all future development programs. Backrests reliable trading system is likely to show excellent results in the historical test and then lead to disastrous results.

Some reasons may be behind the wrong test, or on optimization-sensitive indicators. Forex strategy builder can help you in this situation. He easily recognized pitfalls testing trading systems. He notices all ambiguous bars in the rear test. This program can be found in the average balance line between all possible market scenarios.

It also has methods for detection of curve fitting. That is constantly improving the useful Forex strategy builder is constantly updated and can participate in shaping the way you prefer. So, do not hesitate to share with us what you believe could be improved. Be assured that we will follow the recommendations in future versions.

This program aims to make the process of creating profitable strategies, based on technical analysis, a simple task. While you are not real market, do not hesitate to test all strategies or combinations of technical indicators, you can imagine. You will gain more experience and understanding how the logic of rules and parameters affect Forex trading.

It is free software Forex This program is absolutely free. There is no need to pay money or to make a recording. Step into the world of Forex strategy builder. He is 100% free Forex software. Visit our site Forex download. Find installation tips, download links, system requirements and other useful information.

HOW TO TRADE FOREX


Trading foreign currencies is a very exciting and potentially lucrative, but there are also significant risk factors. It is important that you fully understand the implications of margin trading and the particular pitfalls and opportunities offered for trade in foreign currency.

In these pages, we offer a brief introduction to the Forex markets and their participants and some strategies that may be applied. However, if you are ever in doubt about any aspects of the business, you can always discuss the matter in depth with one of our dealers. They are available 24 hours a day in the Saxon bank online trading system, SaxoTrader.

Relative value of its service performance is an effective, concise analysis and expertise - all under achieving and maintaining an attractive competitive cost structure. Today, the Bank offers Saxon Europe in the first round of all services for derivative trading and foreign currency. We count among our employees and sales of many analysts, each of which has long experience and wide knowledge of different markets and to win in both countries and international financial centers.

When trading foreign currency futures and other derivative products, we offer 24-hour service, extensive daily analysis, and individual access to our Research & Analysis department for specific questions and the immediate implementation of our international sales network of banks and brokers. All at a price significantly lower than what most companies and private investors often have access.

The combination of our strong emphasis on customer service, and our strategy for trade with the recommendations, our strategic and individual hedging developers together with our clients on the availability of the latest news and information, builds a strong case for trading in individual bank account via Saxon.

Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower price compared to banks and firms. Your margin deposit can be in cash or government securities, bank guarantees and other large corporate and institutional clients, which offer facilities for the strength of their trade surplus.

Minimum deposit accepted for individual trading account depends on the type of account. Trade confirmations and account in real time the total built in SaxoTrader, and account information can be produced in accordance with your specific requirements.


Tuesday, June 9, 2009

Forex in a nutshell

What you should know

Why Currency Trading Is Not For Everyone

Forex Earning Potential



Forex currency exchange trading is one of the fastest growing trade markets in the world. It is also the biggest with an estimated 1.8 trillion dollars being exchanged every single day.
With these stats to it's name it should come as no surprise that one of the major reasons for thisexponential growth is the fact that Forex trading offers incredible earning potential.
This is also why large multi-national corporations have been investing in foreign exchange for years and more and more individuals are utilizing currency trading to supplement their incomes and some are even living purely off the profits they make.

Forex & Financial Problem



Having a diversified portfolio is key to successful financial planning and having some funds in higher risk areas makes sense too. Whether you choose Futures, Options or Foreign Exchange trading, all are good ways to expand this section of your portfolio.
If you are looking at Forex, then an excellent tool is to use a proven automated pilot program. Trading programs have evolved considerably since their advent several years ago and now you can find several programs that are very sophisticated and are reasonably priced. The latest one to have broad appeal is Fap Turbo. One of the many attractions this software has is it’s track record of trading live accounts. Fap Turbo also has a very good support community and you can participate actively via phone and email. Although the program is easy to set up and use, it is always reassuring, if nothing else, to be able to contact people who can help you out if you are having any problems.

Saturday, June 6, 2009

Forex for Dummies




Forex Basics

If you've already read the "What is Forex?" section then you should know what Forex market is and what it is all about. If not, please, do it. There are five essential aspects of foreign currency market a beginner trader (and an old one as well) should be aware of:
Forex Fundamental Analysis
Forex Technical Analysis
Money Management
Forex Trading Psychology
Forex Brokerage
Understanding and mastering these sides of trading are crucial to organize your Forex trading experience.

Forex Fundamental Analysis=>





Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is used not only in Forex but can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market forecasts. In theory, it alone should work perfectly, but in practice it is often used in pair with technical analysis. Recommended e-books on Forex fundamental analysis:
Reminiscences of a Stock Operator
What Moves the Currency Market?

Twitter Forex Tweet Strategy



Have you been following people involved in fx trading on twitter?

Have you noticed how many people are happy to tell you what happened? While macroeconomic news and previous day post analysis can be useful, it certainly doesn't help you make a trading decision based on current charts. 

I have a little proposal to make.

Instead of tweeting that you've opened a long or short position provide some information that other people can use to apply their own strategies. Frankly, I don't care what crappy decisions others are making. I care what the charts are saying. I'll do my own technical analysis and decide on my own trades.

So, tell me that a pattern is forming on a named pair's chart in a certain timeframe. For example, right now the AUDJPY is retesting May highs of 76.00 and obviously this is true on any chart -- though you may need a longer chart to actually see it.

Then, I can whip open my chart, draw some lines, figure out a strategy, and trade on the opportunity.

To summarize, we need to tweet about opportunities that are shaping up. We need to just drop each other a note that something is happening. Anybody who has traded for any length of time can figure out what to do -- but unless we have the luxury of trading full time we just can't spot all the opportunities.

In short. Smarten up and stop trying to show the world how damned smart you are. We don't care!

How about we call this the Useful Forex Tweet Agreement (UFTA).

Calculating Profit and Loss



For ease of use, most online trading platforms automatically calculate the P&L of a traders' open positions. However, it is useful to understand how this calculation is formulated:


To illustrate an FX trade, consider the following two examples.

Let's say that the current bid/ask for EUR/USD is 1.46160/190, meaning you can buy 1 euro for 1.46190 or sell 1 euro for 1.46160

Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise. 

So you make the trade: to buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.46190). Remember, at 1% margin, your initial margin deposit would be approximately $1,461 for this trade. 

As you expected, Euro strengthens to 1.46230/260. Now, to realize your profits, you sell 100,000 Euros at the current rate of 1.46230, and receive $146,230 

You bought 100k Euros at 1.46190, paying $146,190. Then you sold 100k Euros at 1.46230, receiving $146,230. That's a difference of 4 pips, or in dollar terms ($146,190 - 146,230 = $40). 

Total profit = US $40. 

Now in the example, let's say that we once again buy EUR/USD when trading at 1.46160/190. You buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.46190). 

However, Euro weakens to 1.46110/140. Now, to minimize your loses to sell 100,000 Euros at 1.46110 and receive $146,110. 

You bought 100k Euros at 1.46190, paying $146,190. You sold 100k Euros at 1.46110, receiving $146,110. That's a difference of 8 pips, or in dollar terms ($146,190 - $146,110 = $80). 

Total loss = US $80. 

More leverage means more opportunity - and more risk




It's crucial to remember: increasing leverage increases risk. To limit downside risk, monitor your account regularly and use stop-loss orders on every open position. 

FOREX.com: No debit balances, no margin calls




At FOREX.com, your risk is only limited to funds on deposit. There are no margin calls in forex trading, so if your account falls below required levels, for your protection we will close out all positions automatically. You'll never lose more money than you have in your account. 

Leverage & Margin



Leverage trading, or trading on margin, means you aren't required to put up the full value of the position. 

Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.

What's a pip?




Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%. 

For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies. 

Bids, asks and the spread




Just like other markets, forex quotes consist of two sides, the bid and the ask

The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency

Cross currencies




Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same. 

The world's most traded market, trading 24 hours a day





With average daily turnover of US$3.2 trillion, forex is the most traded market in the world. 
A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York. 

Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.

Who trades currencies, and why?





Daily turnover in the world's currencies comes from two sources:
  • Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency. 

  • Speculation for profit (95%).
Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs

What's Forex?

"Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market.

Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for for