Saturday, September 12, 2009

Acquiring More Knowledge on Forex

Knowledge is power. As with anything, the key to succeeding in forex lies in knowing. In the case of forex, knowing means being aware on how the forex market moves and on how increase your chances of profiting from a forex trade.

If you don't know anything, you might as well shoot in the dark, and garner a few successes in the short term but lose in the long haul.

There are, thankfully, many sources of knowledge on forex depending on your persuasion. If you like to learn on your own, the Internet has hundreds of websites featuring useful bits of information. There are also hundreds of e-books covering all aspects of forex trading.

The only challenge with the Internet is that the information is spread as bits and bytes. A website that walks you through the entire process of forex still has to exist. E-books are more promising.

If you want to learn a lot, you may opt for study courses, because (a) they present information on forex in an organized maner and are (b) structured to help students understanding forex trading.

These study courses are either available for free or cost over $1,000. Investing your time and money in them is worth the time you can save in scouring for similar forex information on your own. There are courses available for both beginners and the more experienced traders. In both cases, you only get what you give - free courses may teach you the basics but usually omit the exhaustive training that is needed to analyze charts and plot forex trading strategies.

There two basic types of forex study courses: an offline group class or an online course that you take through the Internet.

The main advantage of an offline group class is that you get undivided attention - any questions you might have does get answered right away by the instructor. This type of class, however, is not for those who do not have the time - you cannot make up for missed classes at a later time.

There are also one-day or two-days' seminar on forex. These are usually aimed at the very experienced trader, but you could benefit from the seminar if you already know the basics.

For the more shy types, there are CD-ROM courses on forex. You may order these materials online and have the CD delivered to you by mail.

But, as always, the best type of forex training is a one-on-one lesson with a forex trainor or mentor.

More Knowledge on Forex

www.ac-markets.com

More About Fundamental Analysis in Forex

It's now what you've got, but how you use. So it goes that the make or break of any forex trading transaction actually does not lie on how much money you put in trading, but on trading strategies that rely purely on analysis.

There are two types of analysis in forex: the technical analysis and the fundamental analysis.

The long and short of technical analysis is that it is based on past trends in the forex market. You will know if it is a technical analysis you are making if you are looking at charts and graphs. Fundamental analysis, on the other hand, employs a little more of "being in the moment."

Fundamental analysis in forex covers the spectrum of all economic and political climates that may affect the prices of currencies. Forex traders typically rely on the news to get information on inflation, growth rates, unemployment rates, and economic policies.

www.fxclub.com

While technical analysis gets into actual and historic movements in the forex market, fundamental analysis, on the other hand, takes an overview of forex movements. Fundamental analysis paints for the forex traders a broad picture of the conditions affecting the price of a currency. In order to get the best analysis, forex traders have to supplement their findings in the fundamental analysis with that of the technical analysis.

Forex currency prices are essentially affected by forces that affect supply and demand. These forces of supply and demand, in turn, are affected by conditions in a country's economy. Two of the most important economic factors that affect supply and demand are an economy's strength, and interest rates.

Economic indicators can also affect supply and demand. Governments and the academe are the sources of these economic indicators, and they are followed by all segments of the investment industry. The two most important of these economic indicators are INTERNATIONAL TRADE and INTEREST RATES. There are other economic indicators like the Consumer Price Index or CPI.

Interest rates can either weaken or strengthen a country's position in forex trading. High interest rates typically attract foreign investment, which strengthens the local currency. But it will also adversely affect the stock market because stock investors typically react by selling their stocks, believing that higher interest rates will put companies at an adverse position.

A forex investor must always follow the factors affecting fundamental analysis to get a feel of where his currency is going, whether on a downward weak turn or an upward strength.

Potential Dangers in Foreign Exchange

Foreign exchange is very profitable and also it is risky. Multiple traders and numerous sophisticated trading instruments exacerbate these risks in foreign exchange. Knowing foreign exchange risks are vital in managing it.

The shifting of worldwide market supply and demand creates a continuous effect on the foreign exchange market. Such effect can be identified as an exchange rate risk. Spot deals, forwards outright, futures and options in foreign exchange are the ones mainly affected by the exchange rate risk.

Exchange rate risk starts with the foreign exchange traders. What a good foreign exchange trader can do is to cut the losses short and go with profitable positions. Two popular measures to keep foreign exchange losses low are the position limit and the loss limit.

In position limit, foreign exchange trader may be limited to carry a certain currency at any time when regular trading is going on. Another position limit calls for maximum outstanding position kept overnight by foreign exchange traders. Each trader must have an established foreign exchange market limit based on level of trading skill and not by level of seniority or profitability. Each bank and treasury may have rules regarding this. The limits may be held high or low for a set period of time by the senior officer from the treasury to encompass unique foreign exchange market condition.

The loss limit is a way of holding off unsustainable losses by foreign exchange traders. This limit enforced by senior officers on the dealing room is chosen either on daily or monthly basis. This measure is of enormous help for foreign exchange trader because it lifts added pressure on deciding the size of loss to take.

Foreign exchange risk is to be tamed by the management by setting clear rules regarding policies of risk management. The rules must be revised regularly or in response to unusual market development. The management must find the most suited way in dealing with present or projected trading capacity. And it also takes into account the loopholes of these ways so as to come up with a proper risk management policy. Flexibility and sped of adjustment are crucial in fast-changing financial markets such as in foreign exchange.

Position and loss limits are very basic risk management measures. And with the help of control tool, these limits can be implemented better and easily. With the aid of computers, foreign exchange transactions are entered into the system database. The treasury and chief trader can have access continuously, instantly and comprehensively to trading date. Whatever their conclusions, it can then be transmitted to headquarter terminals.

www.stifxonline.com

www.forexpros.com

Why Invest in the Forex Rather Than in Stocks

There is a widely held misconception that the best way to earn from your investments is through investing in stocks.

Yes, investing in the stock market is a good way to profit from one's savings but there are other ways one can invest money that are relatively much less complicated and demanding but as profitable, if not more, than investing in stocks.

Like investing in the foreign exchange or forex.

So why is the forex hassle-free compared to the stock market and what are its advantages over it?

The following are just some of the benefits when one chooses the forex on top of the stock market.

No need to monitor thousands of stocks.

Tired of monitoring several thousands of stocks like the 4500 listed in the New York Stock Exchange and the additional 3,500 in the NASDAQ?

With the forex, you only need to focus on the four major currency pairs. Though not necessary, you can also dabble in the 34 second tier currencies if you got some spare time and want to be really competitive and have advantage against other traders.

Express execution of market orders.

Unlike the stock market, there are no discrepancies between the price that one sees in the platform and the execution price needed to start the exchange in the foreign exchange market.

What you see is the price you get as there is price certainty in every forex market and trades are done real time.

No short-selling restrictions.

In other markets particularly the stock market, heavy restrictions are made on short selling.

Such stringent measures are non-existent in the foreign exchange market as currency trading is a two-way process; one also buys currency simultaneously when he/she is selling a currency and vice-versa.

Hence, there is no structural bias on the foreign exchange market, as everyone has equal access to a rising or falling market.

Highly sensitive market.

Traders in the foreign exchange market can (and most of the time they do) profit from such mundane news, for instance, a change in the interest rates.

This spontaneity of the forex creates infinite opportunities and advantages for every trader as they can always take advantage of the ebb and flow of currencies caused by simple rumors.

24 hour, commission-free market.

Free from additional transaction fees such as those from the government and middlemen and being open 24 hours a day, 5.5 days a week are advantages of the foreign exchange market not only over the stock market but to other financial markets as well.

Traders about to invest should be well informed of the advantages of forex so as not to waste time and money in investing in the complicated and demanding world of stocks as these advantages present the foreign exchange market as a viable, if not better investment alternative to the stock market

www.fx-bar.com

Common Indicators For Forex

Indicators are an important tool in making a trade at Forex market. The following tools are merely an education that you can utilize a decision for trading in Forex.

1. Bollinger Bands

This is a kind of indicator that was used by traders to measure the volatility of a market. In simple words, Bollinger Band in an indicator that will tell you if the market is quiet or if the market is loud.

If the market is in quiet stage the bands will contract, on the other hand if the market is being loud the bands will expand.

You will notice that if the bands were close together in a chart it means that the prices are quiet but if the bands spread apart in the chart it means that the prices have moved upward.

2. MACD

Moving Average Convergence Divergence or MACD is a tool that is used by traders to determine the moving averages that are indicated in a new trend either it is bearish or bullish.

If you are using a MACD chart you will notice three number used in settings.

a. The first thing that you will notice is the number of periods in the chart that is used to compute the moving average in faster phase.

b. The second thing is the number of periods that is used in the chart that is to calculate the moving average in slower phase.

c. The third thing that you will notice is the number of bars on the chart that is used to compute for the moving average with the difference from the faster phase and the slower phase moving averages.

3. Parabolic SAR

The Parabolic SAR or Stop And Reversal can determine where the trend might end. Parabolic SAR is one tool that is very easy to use. This indicator will simply show you when are the prices going up or going down for that matter. The chart can signal you whether you are to buy or to sell.

This indicator is helpful only at market that are trending often and that has downturns and long rallies; however, you do not want to use this indicator when the market is being choppy, choppy means that the prices are moving sideways.

4. Stochastics

This is another kind of indicator that helps traders to determine where the trend might end. Stochastics is an indicator that measures oversold or overbought conditions in the Forex market.

You can use Stochastics in many ways; however, the basic role of Stochastics is to show traders where the market is oversold or overbought.

5. Relative Strength Index

This can also be called as the RSI; this has similarity with the Stochastics indicator. Both can determine the oversold and the overbought conditions of the Forex market.

RSI is one of the most popular tools for traders because this helps them confirm the trend formations.

Basically, we can just pick one indicator and move on however, this is applicable if the world is perfect enough for us to trade. But that is not the case, indicators also have imperfections and so we must avoid these imperfections as often as we can.

That is why a lot of traders combine all these indicators so that they can clearly see what they have to do with the help of these indicators.

www.finexo.com

More Knowledge on Forex

If you don't know anything, you might as well shoot in the dark, and garner a few successes in the short term but lose in the long haul.

The only challenge with the Internet is that the information is spread as bits and bytes. A website that walks you through the entire process of forex still has to exist. E-books are more promising.

If you want to learn a lot, you may opt for study courses, because (a) they present information on forex in an organized maner and are (b) structured to help students understanding forex trading.

There two basic types of forex study courses: an offline group class or an online course that you take through the Internet.

There are also one-day or two-days' seminar on forex. These are usually aimed at the very experienced trader, but you could benefit from the seminar if you already know the basics.

For the more shy types, there are CD-ROM courses on forex. You may order these materials online and have the CD delivered to you by mail.

But, as always, the best type of forex training is a one-on-one lesson with a forex trainor or mentor.

www.finexo.com

Getting Started

As the financial changes and online revolution continue to alter the global economic landscape, more and more people are becoming aware, and starting to avail of the forex market. However, a lot of neophyte traders end up losing a lot of money because they ignore basic trading issues.

Most of the novices in forex trading simply open an account and trade away. That is not how a professional and successful forex trader works. Before you open an account and throw your money in the forex, it is important that you take the following considerations into account.

First you should learn about spreads, as this is where some of the most crucial elements of currency trading lie. In simple terms, the spread is the differential between the bid and ask price of a particular currency. While there are numerous factors that you will have to consider, the point to remember is that the narrower the spread, the better it is for a forex trader, as it will save money.

Another fact that you should be conscious of is that forex brokers earn their money from these spread differentials. In other words, what is good for you is not good for a forex broker, as they make more money with wider spreads.

Given this situation, you should always pay close attention to what your broker is doing. Some unscrupulous forex brokers resort to buying and selling very early. The best way to avoid this complication is to choose a broker that comes from a well known and reputable forex firm. Another advise we can give is to go out and discuss the matter with other trader, to see if they have had experience with your broker.

It is also worthwhile to learn the basics of forex market analysis. As a budding forex trader it is important that you grasp the rudiments of fundamental analysis. This means listening to the statements of the Fed and analyzing pertinent data concerning the U.S. economy and of course, the status of your currency's country (the one you are trading with).

You should also try to learn and comprehend technical analysis. There are numerous technical indicators around, including MACD, parabolic indicators, Stochastics etc. You do not have to learn every tool, but it is vital that you learn how most of them work for two reasons.

One, they will help you immensely as you progress in your career, and second, you will be able to understand what your broker is saying. By leaving everything to your forex broker, letting him do all the work while you know nothing, leaves you open to manipulation and deceit.

Before opening a foerx account, check what leverage types are available. If a firm offers a leverage of 50:1, it means that for one dollar of your capital, they will lend you $50. If you have a small capital, get a high leverage. Bear in mind though, the higher the leverage, the greater potential for losses and profits.

Forex institutions offer different kinds of leverages, and a lot of it depends on the account you enter. The bigger the account you sign, the more flexible the leverage. However, some brokers have the option of buying or selling if your position is losing a lot of money. Clear this matter up before you open the account.

These are very basic information, but they are vital. A lot of new forex traders simply ignore these bare essentials and end up paying a stiff price. By adhering to these principles you will have a better chance of progressing as a trader.

www.forexmicrolot.com

Forex Fundamental Analysis

There are two types of analysis in forex: the technical analysis and the fundamental analysis.

A forex investor must always follow the factors affecting fundamental analysis to get a feel of where his currency is going, whether on a downward weak turn or an upward strength.

www.instaforex.com

Forex Charts Introduction

Even if you are not a technical analyst it is important to learn how to read forex charts. The fact of the matter is that it is virtuallyimpossible to get a proper assessment of the value of the forex market with out knowledge of chart patterns.

There are numerous chart types used in forex market analysis, but in a lot of them the following patterns often emerge. As a trader, it is to your advantage to learn their meaning and relation to price movement and market direction.

Trendlines, as the name suggests, are forex chart patterns used by traders to analyze forex prices and market direction. Trendline charts consist of an inclining line, representing a price uptrend, and a declining line. If the declining streak goes through the price bars it is a sign that the price is on a downward path.

Trendline charts also have support (floor) and resistance (ceiling) levels, which are seen as parapets for prices. Most forex charts of this type also use channels: inclining parallel beams, declining and sideway beams, representing all possible price movement in the forex. These channels are used by technicians to determine when to buy or sell.

Another frequent chart pattern are triangles. The names of these patterns, are, of course, derived from the movement of the price bars, and in this case they resemble the aforementioned geometrical shape. Often the price bars form a shape like a symmetrical triangle, and when the pattern breaks at the top, it is an indicator to go long, and at down, it is time to sell.

Ascending Triangles, or Right Triangles, also come up frequently. Because the propensity of Right Triangles are breaks in the upper part, this forex chart pattern is used as a buy indicator. Descending Triangles, of course, are indicative of a downtrend.

Non symmetrical Triangles are also technical indicators of price uptrends or downtrends. Depending on the slope, chartists may go long or short. Pennants, on the other hand, resemble triangular forex chart patterns, except that they are broader. The split on the upper region is, as with the other charts, representative of a buy signal.

Trendlines, triangles and pennants are just a few of the numerous forex chart patterns that a forex trader will encounter in technical and fundamental analysis. By learning how to interpret the above-mentioned chart patterns, you will gain a better understanding of how and why chart patterns are very important.

Constant Change in Market

Foreign Exchange dealer has evolved from being a dealer's occupation and dealing market to one that ordinary people even take part right now. The top financial organizations in the world used to be the only financial groups that take part in the forex market but because of the boom of the World Wide Web enabling easy access to foreign exchange to anyone, even an individual that only possess a small amount of money can join the foreign exchange market.

Foreign exchange dealing offers dealer profit potential that is endless. Once dealers possess a good technique that can help them make some money in the market, they can start leveraging their technique so that their profits will grow always instead of just a single time. Leveraging works this way: For example, a foreign exchange dealer that features 1/100 leveraging can deal $100,000 dollars with only one thousand dollars and ten thousand dollars with only one hundred dollars.

If the offer is good, then a foreign exchange dealer can earn a lot of money with just a minimum investment. The usual deal sharing has a ratio of one is one, which means that you would have to shell out one hundred thousand dollars in capital for the total in shares. A lot of people are also drawn into the foreign exchange market because they have the freedom to deal twenty four hours a day from Monday until Friday, The Foreign exchange market also takes place in different times all over the world. This schedule is just right for people that work in shifting schedules.

This also permits for liquidity in dealing bigger positions whatever time the dealer wants to. It is also simple to open an account on the foreign exchange market with a dealer and as soon as it is enabled, dealers can begin dealing immediately. There are a lot of foreign exchange dealer that are available online so you have to really examine on who will fit your requirements.

Would be foreign exchange dealers should also think about trading in one of the numerous dealing platforms that are present in the online forex market so that you can use any charting software to make accurate decisions in your trades. These charting software are a useful tool in the market.

The software also states the important currency pairs and their current cost and they follow the current technical analysis. There are also a lot of practice accounts that beginners can use first in order to study the basic points in the foreign exchange market. These accounts can also serve as a sounding board for all of their plans in the market.

www.pressreleasepoint.com

Forex Market Characteristics

Being the world's largest financial market, the foreign exchange (or forex) market offers unmatched benefits and advantages to the prospective investor. With superior liquidity and leverage compared to stocks and futures markets, the forex market is arguably the best financial investment you can find.

What makes the forex market an excellent financial market? The characteristics that make the forex market a good one are lower trading costs, excellent transparency, superior liquidity and very strong market trends.

LOWER TRADING COSTS

Ask anyone dealing in stocks and they will tell you that they have to shell thousands of dollars to get started. Not so with the forex market. With just a few hundred dollars (often $250 or less), you can open a mini forex account and start trading!

The lower trading costs in the forex market has made it possible for even small, individual investors to make decent profits from forex trading. With lower costs, the possible losses are also much lower. You will discover that forex trading usually has no commission fees unlike in other investments. The costs of forex trading are limited to the spread or the difference between the selling and buying prices for a particular currency pair.

EXCELLENT TRANSPARENCY

Transparency means the free access to trading information. Forex trading is a transparent process because the trader has full access to market data and information that are necessary to perform successful transactions. The excellent transparency of the forex market means that forex traders have more control over their investments and can decide what to do based on the information available.

SUPERIOR LIQUIDITY

In a forex market, traders are free to buy and sell currencies of their own choosing. The superior liquidity of the forex market enables traders to easily exchange currencies without affecting the prices of the currencies being traded.

So whether you trade a few thousand dollars or several millions, you can be assured of the same currency prices during the time an order was placed and then executed. The forex market's superior liquidity allows you to get the profits you expect at the time you made the trade.

STRONG MARKET TRENDS

Forex traders make money by getting accurate market data and then analyzing the direction the market takes. To do this, forex traders rely heavily on trends and trending in an attempt to predict the direction of the forex market. Most traders use technical analysis to analyze past and present forex market data and then search for trends.

Other financial markets use trends and trending but this characteristic is much stronger in the forex market. Due to strong trending, forex markets are much easier to analyze and identify possible entry and exit positions during trading.

Now you already know the characteristics that make the forex market a sound, financially-stable and profitable investment area, maybe it's time to put your money into the forex market and earn handsome profits. You can just take advantage of the forex market's positive assets and make your money work for you.

Common Indicators For Forex

Indicators are an important tool in making a trade at Forex market. The following tools are merely an education that you can utilize a decision for trading in Forex.

1. Bollinger Bands

If the market is in quiet stage the bands will contract, on the other hand if the market is being loud the bands will expand.

You will notice that if the bands were close together in a chart it means that the prices are quiet but if the bands spread apart in the chart it means that the prices have moved upward.

2. MACD

Moving Average Convergence Divergence or MACD is a tool that is used by traders to determine the moving averages that are indicated in a new trend either it is bearish or bullish.

If you are using a MACD chart you will notice three number used in settings.

a. The first thing that you will notice is the number of periods in the chart that is used to compute the moving average in faster phase.

b. The second thing is the number of periods that is used in the chart that is to calculate the moving average in slower phase.

3. Parabolic SAR

4. Stochastics

This is another kind of indicator that helps traders to determine where the trend might end. Stochastics is an indicator that measures oversold or overbought conditions in the Forex market.

You can use Stochastics in many ways; however, the basic role of Stochastics is to show traders where the market is oversold or overbought.

5. Relative Strength Index

This can also be called as the RSI; this has similarity with the Stochastics indicator. Both can determine the oversold and the overbought conditions of the Forex market.

RSI is one of the most popular tools for traders because this helps them confirm the trend formations.

That is why a lot of traders combine all these indicators so that they can clearly see what they

Potential Dangers in Forex

Why Forex Rather Than Stocks

There is a widely held misconception that the best way to earn from your investments is through investing in stocks.

Like investing in the foreign exchange or forex.

So why is the forex hassle-free compared to the stock market and what are its advantages over it?

The following are just some of the benefits when one chooses the forex on top of the stock market.

No need to monitor thousands of stocks.

Tired of monitoring several thousands of stocks like the 4500 listed in the New York Stock Exchange and the additional 3,500 in the NASDAQ?

Express execution of market orders.

Unlike the stock market, there are no discrepancies between the price that one sees in the platform and the execution price needed to start the exchange in the foreign exchange market.

What you see is the price you get as there is price certainty in every forex market and trades are done real time.

No short-selling restrictions.

In other markets particularly the stock market, heavy restrictions are made on short selling.

Hence, there is no structural bias on the foreign exchange market, as everyone has equal access to a rising or falling market.

Highly sensitive market.

Traders in the foreign exchange market can (and most of the time they do) profit from such mundane news, for instance, a change in the interest rates.

This spontaneity of the forex creates infinite opportunities and advantages for every trader as they can always take advantage of the ebb and flow of currencies caused by simple rumors.

24 hour, commission-free market.

Candle Charts Trend Analysis

Forex traders often stick to a particular set of tools when it comes to making technical analysis. If you are not yet using candle charts, you may want to consider including it in your toolbox.

Candle charts (or candlestick charts) are not as popular as other technical tools, and this is rather unfortunate, as it can be a highly beneficial tool. The major hindrance to the wide acceptance of candle charts, especially among new traders, is its perceived difficulty. It is not.

There are basically two types of candle charts, the black and white body. Both include the major indicators of an item or currency price:, the opening, high, low and closing levels. By analyzing these four major points and their movements in relation to other candle charts, a forex trader can gain insight into possible market trends.

One of the most effective ways to utilize candle charts is with Pivot Points. A good example of a forex strategy utilizing candle charts and Pivot Points is the following:

As the forex currency price moves towards a significant Pivot Point (high or low, depending on your choice), end the session with a purchase of the desired item or currency. Alternatively you can compare previous candle patterns to determine if the closing is a new high, or if it is indicative of a bullish trend, then buy at the succeeding session.

Next, check the Pivot Point for the lowest point and establish your Stop/Loss order a few points below this level. As for the ideal exit point, you have two choices: at the close of the forex session, or when the candle chart reaches a new low.

Another area where these to technical indicators can work together is time frame analysis. Create candle charts and Pivot Points for dally, weekly and monthly forex price readings. By comparing the opening, highs, lows and closing levels, you will be able to forecast the upcoming forex trends.

While candle stick charts work well Pivot Points, it can also co exist with other technical indicators. If you are still uncertain about candle charts, you can utilize other forex technical tools to confirm the market signals being indicated.

Candle stick charts are widely used in Japan, and there is no reason why it should not be used as extensively in the United States and Europe. While it requires time to learn, it is well worth the patience and effort, because it will give the forex trader a great advantage.

In the forex market, trading always occurs in currency pairs. Forex trading, also known as FX trading, involves the buying and selling of currencies of various nations. Forex software also enables traders to monitor forex market trends and to conduct online trading.

Using Gann Angles in the Forex

There are several technical analysis tools that can help a technician and trader forecast market trends. These include Stochastics, Parabolic indicators and MACD. But few are as efficient and accurate as Gann Angles.

Gann Angles is one of the most precise analytical instruments in determining the movement and sustainability of forex trends and prices. Some forex traders hesitate to use it because of its complexity; however, the basics of the Gann Angles can be set down as follows:

On a square grid, a horizontal line (the x axis) is inserted, representing units of time. On the y axis (the vertical) a line is also drawn, denoting units of price. The time period specified can be of any duration, but the usual period used is weekly.

As the price moves in accordance with the time line, the point at which they meet is referred to as the Gann Angle. In a 1x1 setup, the angel is 45 degrees. It is the angles that the time and price form in several Gann Angles that are the subject of study in forex technical analysis. It should be emphasized that the relationship between the time period and the price movement must be plotted accurately for a proper reading.

How does this help a forex trader?

In general terms, the angles at which the price and time converge indicate the strength of the trend. For instance, a 45 degree angle is considered "ideal", as it indicates that there is a strong support level for the current trend. If the x axis moves past a significant Pivot Point (a high or low price level) then it is a sign that either the trend will continue or that it will change.

As the trend changes, it will move on to the next angle, 26.25 degrees (2x1). Because the support level for the 1x1 Gann Angle is strong, a downward move to the 2x1 connotes that the forex trend will also remain in that state for a significant period.

It should be emphasized here that while the 1x1 angle is considered the standard or ideal forex trend state, it is not always applicable. In technical analysis of bullish markets, a 1x4 angle is more suitable. The efficiency of Gann angles in forex technical analysis is also dependent on the financial instrument being scrutinized.

Another way to use Gann Angles in forex technical analysis is to search for levels of resistance and support in the pertinent price movements in the x axis. By separating the highs and lows, a trader can find the levels he needs to determine possible price trends. Another asset of Gann Angles in forex technical analysis is that by establishing the Pivot Points a trader will have a fairly good idea of the general foerx trend movement.

Gann Angles take time to learn, perhaps more so than other technical analysis tools. But the time spent will be worth it, as when it is correctly implemented, Gann Angles can give the forex trader a distinct advantage in trading.

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Selecting a Futures Broker

There is an inherent risk in forex futures trading, but one of the ways to reduce it is to get a qualified futures broker. While the number of futures brokers and firms offering their services is immense, those who are qualified are only a select few.

One of the first things that you have to realize when looking for a forex broker is that there are several types available, and the one you should select must suit your personal preferences.

If you are looking for the highest quality, the best that money can buy, get a Full Service Broker. As the name suggests, this futures broker will offer you the full range of services. Aside from implementing your trade orders, there will also be trade advice, insights into the economic situations and how it will affect your positions, and various reports.

Full Service Brokers will also provide you with all the necessary tools, charts, technical and economic data pertaining to your futures contracts. All these services come at a price; the fees vary, but the minimum is usually $100 per transaction.

If you have some experience as a forex trader, or would simply like to conduct research on your own, then a Discount Broker may be the one for you. The price charge is usually half those of a Full Service Broker, but in this case all the broker will do is execute your futures trade. If you are confident of your ability to gauge the forex futures market, and see no need to get a broker's advice, then this is the one to se4ect.

One more futures brokerage type is available: those online. If you intend to sign up with an online brokerage firm, get the best that your money can buy.

First and foremost make certain that the software they provide will be Web based. Unlike downloadable software, having one on the Web means instant access, anytime anywhere. Other prerequisites are real time quotes, an efficient trading platform and must be available 24 hours.

There should be easy access to your account setup, able support, broker advice and competitive margin and leverage rates. There is no reason why an online firm should not tender the same services as a Full Service broker does.

That being said, it should also be stressed that futures brokers that charge high fees does not equal quality service, and vice versa. One of the ways to ensure that you obtain a good brokerage firm is to consult with other traders.

The process of selecting a forex Futures Broker is one that should be handled carefully. This will take time, but the would-be forex trader should accept this. The consequences for hastily picking a futures broker can be financially disastrous. The key is patience and research, and by applying these principles, you will not go wrong.

The Psychology of Forex Trading

The Psychology of Trading can be a tool that can help a trader control and predict their emotions and decide based on facts. The lack of this psychology can be a hindrance for the trader's success since the movements of the market are pretty unpredictable.

The right psychological outlook can help traders face the issues and make sound decisions in the end. There should be a balance among all the different aspects of becoming a successful trader.

When a trader loses a trade, the first thing that can come to their mind, would probably be that he must be using the wrong system. The trader might even regret taking the trade however sometimes the nature of the mistakes done can come from the inner self just like the mistakes we make in life. There is just about five percent of consistent top traders whose ultimate aim is to achieve constant profits. These top traders learn from their mistakes. They treat their mistakes as an experience they could learn from. They realize that they could have another chance of making it better and below are some of the helpful ways of achieving the right trading psychology.

�Make stop-loss orders and honor them for your money's protection - When there is an order for the stop loss the trader should do it immediately, he should not have doubts. The trader should prevent holding onto his position which is already losing because he hopes that something good will still happen. On a losing point or position the stocks will continue to fall until a positive movement happens to stop the fall. The trader may be wiped out just because he is still waiting for the positive movement which could be like a magic.

A trader should get released from a negative trade and apply the money to do another trade transaction. A trader should cut the losses quickly and he should let more profits from the trade run. Most of the traders abandon the plan they had before and get the profits even before the target has been reached since they somehow feel very comfortable just being on a position they think is most profitable already. These traders will end up sitting on a losing position; they usually allow the market to act against their trade for many points while hoping that this market goes back to their favor.

These traders also quickly remove the orders to stop believing that the market's movement will constantly be beneficial for them. Stops exists to be hit as well as to halt the trader from losing the money he cannot afford to lose. It is a wrong belief that each trade will gain the trader profits it already good if he can get three trades that is earning well out of six. The question is how you can gain money with just the half of your trade transactions winning, the answer is that the trader should allow the profits of the winning trades to continuously run and keep the losses at a minimum.

�Never over trade - Over trading is a usual mistake of the traders. They put a high leverage on the account they own which they do through trading bigger sizes than what their account can trade.

�Trade with the trend only - The time scale a trader uses is not even important. The difference lies in the stop-loss or the target size. This means that a trend with a long term needs big stops and bigger prospective targets. The common mistake of the trader is to follow up the trends of large scales with shorter stop-loss orders which can be more comfortable on their part.

�Let the profits continuously run - A natural reaction for a trader is to take the profits at an early stage because of their fear that the unfortunate could happen and they could lose the profits. The best thing to do is to make use of trailing stops for protection.

The Psychology of trading is a subject not often discussed and dealt with. Traders usually keep themselves busy in finding a system that works for them. Finding the right system is indeed important however understanding the psychological aspects and barriers should not be neglected.

Technical Analysis Basics: The Trend Line

A trend line is a pretty basic technical indicator used in the early stock market and is also used in the forex market. This technical indicator is still used today. Creating and using one is quite simple. Let's go see what a trend line is and what uses can we get from this technical indicator.

Creating a trend line is pretty simple. First we'll need a historical price chart of a currency pair for a given interval of time. Other charts used for technical analysis can also be used in conjunction with a trend line. Next, we would draw a connecting line to two or more points of a graph called pivot points (i.e. points where there are higher lows and evidently lower highs or places where the price would change to a certain degree). Basically, that would be it.

This is your trend line for that currency pair at that specific period of time. So what do we understand from this trend line? The trend line reflects the direction of the particular currency pair you are tracking down. With this you may judge when to enter or exit trade.

Trend lines are widely used in technical analysis. This would represent historical price data in the format of a chart. Back in the day trend lines were drawn by hand on paper charts. Nowadays you have charting software that simplifies the creation of technical indicators, charts, including trend lines.

When you are using trend lines it is important to use one that coincides with your trading strategy. Make sure it is zoned in to your specified price interval period. This is true whether you take a short position (e.g. plotting prices at 1 minute intervals) or a long position (e.g. plotting positions/prices at hourly, daily, weekly and even monthly intervals).

You can say that trend lines act as either as a floors or as a ceiling for your given price data. By this we mean that if a new trend would slope in an upward direction and break through your established trend of your ceiling price data this is an upward or a positive trend. The opposite of this, of course would be a downward or a negtive trend.

One basic example we can use is that when a currency would return to a principal trend line a trader may open new positions according to the direction of the trend. And when the price breaks through the principal trend line (taking a negative trend) it becomes a signal for the trader to either trade at the opposite direction of the trend or to exit. Trend lines can also be used by traders in many more ways.

All in all, remember that a trend line is only one of the technical indicators available to help you call your shots. The simplicity of this technical indicator and its ease of use is so basic that all traders ought to become familiar with it.

The Essentials of Forex Money Management

There is no lack of forex money management strategies online, yet the fact is that a majority of neophyte traders lose a lot of money because they ignore this important aspect of trading. Money management is such a basic fact of business, yet many people do not pay attention to it.

The results of neglecting this facet of forex trading are disastrous. Without appropriate monetary strategies, it will only take a few forex trading sessions to lose your entire account. While you may have a large deposit, bear in mind that the dollar is losing ground fast, not just in the forex but its overall purchasing power, so watch it carefully. Do not waste it.

With good forex money management, this will not happen to you.

First the following must be kept in mind: no matter what you may read online, or what anyone tells you, the forex market is not the place where you can get rich in an instant. Theoretically speaking, it is possible to earn $1 million dollars from a $100 dollar account, but the chances of that happening is as good as winning the jackpot lottery twice. In other words, it can happen, but the possibility is quite remote.

Part of a superior forex money management strategy is limiting the amount you risk from your initial capital. Contrary to popular belief, one does not get rich quicker by trading in huge amounts. The ideal setup is to trade 1 to 2% of your capital in a single session. While the return may be small, it ensures that the losses will be minimal should the trade go south. You will also be surprised at how these small gains add up to a large amount.

As with any business venture, patience and perseverance are required in forex trading. The importance of maintaining a healthy initial capital cannot be over emphasized; the simple fact is that the more money you lose from your deposit, the harder it will be to make a profit as part of your earnings will go towards recuperating your losses.

Another way to keep your money in check is to establish Stop/Loss and Limit Orders. While these orders are easy enough to setup, it is more vital that you stick to it. If the pip count reaches the Stop/Loss level, then have the order executed; do not pull it back, hoping things will reverse course.

Finally, an integral part of forex money management is keeping abreast of the news. Stories of investors who make millions and billions in currency speculation did not discover a way to "beat the system"; it came from months, even years, of studying pertinent data.

Having said all that, there is no suggestion whatsoever that you should not take risks in the forex. No risk, no reward, it is said and true enough, you cannot possibly profit without taking a chance. But what we are saying is by following the steps above, you will avoid taking unnecessary risks.

Trading Education

STIFX Providing Solid Education, Easy to Learn - Easy to Succeed

STIFX provides forex coaching and education, forex trading tips, fx trading strategies to its clients, and launches new programs continously which helps its client to easily understand the market they are trading in, whether forex, cfds, equities, options, futures, we help you !

We have Designed a Special Education Website :
Enter the Secured Education Page, when it is convenient for you (there is no class schedule that you are required to attend) to receive forex coaching.
Train, review and refresh at your own pace, wherever you have access to the Internet.
Exploit trading system programs that provide immediate application of what you learn.

Get Online Education

Introduction to Futures & Options
Your Business Environment
Predictability
Capital Management
Probability Study
Application of Entry Point System and much more.

Get detailed information on how to read charts, Pattern Information, and much more for you to become a Successfull trader.

STIFX launches new programs everytime for its traders, so they adapt new concepts and ideas.

Enhance your ability to succeed as a trader on skills acquired in a methodical well organized program. Achieve a level of expertise to confidently assume risk from strength of knowledge, acquired skills, practice, experience and discipline. Start now!

To be Able to access Education facilities and programs, you will need to have a live account with STIFX.

SIPPs, PEPs & ISAs

WELCOME TO STIFX- FOREX TRADING ONLINE

STIFX, forex trading broker provides forex trading (fx trading) along with currency, foreign exchange, equities trading, money transfer & exchange, CFD, stock and commodities gold silver trading, oil trading with same forex trading platform (Meta Trader 4). Providing a real time access to the largest financial market in the world, STIFX helps new and active traders with powerful forex trading tools, professional market research and technical / fundamental analysis of free currencies (fx), metals and oil, forex trading education and real time charts free of cost

Trade multiple markets with one single account. Professional multiple trading software. Advanced resources.

Energy Derivatives

STIFX Energy Division provides a full advisory and post-trade service on all Crude Oil and Crude Product Instruments

Exchange Traded Derivatives

Access to ICE Brent Crude and Gas Oil Exchange Options, during and outside exchange hours
Access to NYMEX WTI Crude, Heating Oil and Gasoline Exchange Options, during and outside exchange hours
Execution-only and advisory services offering trading strategies covering all risk profiles
Novice and experienced traders welcome
Full technical analysis available by qualified technicians

Structured OTC Products

We have strong relationships with all Energy OTC market participants, ranging from AAA rated financial institutions and major oil companies through to upstream / downstream physical hedgers and speculative traders
Derivative instruments available on the following:
Brent Crude and the following products - 0.2 Gasoil - ULSD - Jet - Fuel Oil
WTI Crude and the following products - Gasoline - Heating Oil
Structured strategies including options (Asian and American style) - exotic options and swaps

Futures & Options

STIFX Futures Options Trading Advantages:

Trade futures and options on futures on global derivatives exchanges with STIFX J-Trader.

Trade multiple products on multiple markets in single or multiple currencies on one trading platform. Our advanced trading functionality includes multi-exchange spreading and one-click scalping.

Futures & Options Market Offered on J-Trader
Chicago Mercantile Exchange (CME)
Chicago Board of Trade (CBOT)
Euronext.LIFFE
Eurex

Features of STIFX J-Trader:

User-customised trading interface
Depth of market and live exchange prices / quotes
User-defined spread strategies can be created and traded
Multi-exchange spread trading
Single / double-click trading
Sub second execution speed
Wide range of order types: MARKET, LIMIT, STOP, STOP LIMIT, OCO, GTC, MOO
Single-click cancel of orders
Real time profit & loss
Real time position update
Full trade history

CFDs Trading

A CFD gives you all the benefits of the underlying cash equity whilst avoiding many of the typical costs associated with dealing in the physical share. CFD trading allows you to gain cost-effective, flexible and geared exposure to world shares and indices. We offer very competitive financing and commission charges on equity CFDs as well as tight spreads and commission free trading on Index CFDs.

Brief Advantages in Trading CFDs with STIFX

Market prices or better.
No fixed minimum spread or invented price.
No minimum deal size.
No minimum deposit requirement.
Low commission rates.
Low financing rates.
Low initial margins.
Separate CFD account or one account for all financial products.
No stamp duty.
Instant execution and improved liquidity.
Interest paid on your free equity balance.
Commission-free index trading.
You can trade CFDs within a tax-efficient SIPP wrapper

Forex, Gold, Silver & Oil

STIFX, forex trading brokers specialized in commodities trading like gold, silver, crude oil and more. STIFX offers single online forex trading platform to its global customers to enjoy the benefits of trading in commodities trading.

Trade inter-bank spot and forward FX on over 80 currency pairs, gold, silver and crude oil on tight spreads, low margins. As an active client you can take advantage of STI FX Tutor - your free online educational programme making the forex market easier to understand.

More than just execution of trades. We are constantly striving to improve our product offer and service to our customers. Get more information By clicking any of the following below

STIFX Advantages in Trading Forex, Gold, Silver - Click here to find out why you should open an FX trading account with STIFX.
Trading Platform Information - Click here to find out more about our trading platform.
Forex Advantages - Click here to find out why you should consider trading FX
Interest Roll-over - Click here to find out how the financing of your FX positions held overnight works.
Prime Brokerage Services - Click here to find out the prime brokerage services offered from STIFX to its clients

Forex market allows traders to place orders online to buy and sell currencies against various currency pairs and speculate on the differences in exchange rates. STIFX forex speculation enables traders to easily buy and sell foreign exchange currencies instantly.

Trade currency pairs and various other financial products by opening live trading accounts, achieve success in your investment. We provide beneficial advanced trading resources and aim to provide bespoke foreign exchange solutions which is tailored specifically for your needs.

Gold Trading - Trade Spot Gold
Silver Trading - Trade Spot Silver
Crude oil Trading - Trade Spot Crude Oil

Auto and Truck Sales

Source: Individual auto manufacturers, seasonal factors by the Commerce Department.

Release Time: Varies by auto maker from the first business day to the third business day of the month (data for month prior).

In Brief

Auto and Truck Sales measure the monthly sales of all domestically produced vehicles. They are considered an important indicator of consumer demand, accounting for roughly 25% of total retail sales. Demand for big ticket items such as autos and trucks tends to be interest rate sensitive, making the motor vehicle sector a leading indicator of business cycles.

Each auto maker reports sales individually. The reports are typically released over the course of the first three business days of the month. Using the individual reports, a total annual sales pace can be calculated after applying Commerce Department seasonal factors. It is this annual sales pace that the market refers to when discussing auto and truck sales for the month.

In Depth

Vehicle sales figures rarely grab the attention of the market probably for two reasons. First, though the specifics of the data are not terribly difficult to understand, their implications are a little hard to trace. Second, unlike many economic releases, vehicle sales are not released all at once and at the same time every month. This makes it difficult for the market to quickly interpret what the numbers mean for the overall consumption picture and to react accordingly.

This is what happens in terms of vehicle sales during the course of any given month:

The individual vehicle manufacturers report their sales results during the first three or four days of the month.
A day after the last manufacturer reports the Bureau of Economic Analysis releases its estimate of unit auto sales.
About a week after that the BEA releases its estimate of unit truck sales.
The Census Bureau releases its retail sales report, including a measure of sales at automotive dealers, usually around the 13th of the month.
Roughly two weeks after that the BEA releases its personal income and outlays release, including a measure of spending on motor vehicles and parts.

Forex trader

FOREXTrader is our most robust, feature rich platform. This Windows-based application offers a highly intuitive user interface, advanced customization features and a full suite of professional trading tools.

Advanced charting functionality allows you to spot trends in the market. Flip between multiple charts and trade setups, layer on technical studies, even visually track and manage your open orders and positions directly on the charts.

Customize your trading layouts to suit your style. Try our pre-set layouts or create and save your own. Tear-off windows ensure that you're never far from your next trade, even when working in other programs.

Forex Commentaries

The dollar was mixed on Friday, sharply lower versus the yen but modestly higher against the commodity currencies. US consumer confidence rose more than expected, boosted by the recent rally on Wall Street. Wholesale inventories fell for a record eleventh straight month while wholesale sales gained, indicating a US economic recovery in on track. The S&P 500 fell 1.41 points to 1,042.73, the first decline in six days. The USD/JPY plunged following the penetration of the 91.50 support. The euro was flat. Sterling rose modestly, supported by higher UK producer-price inflation. The Australian and Canadian dollars declined as commodity prices fell despite China’s better-than-expected industrial production.

The dollar index fell for a sixth consecutive day, the longest loosing streak since the beginning of the stock market rally in March. Despite weakness in US stock market prices, the dollar index declined 0.13 points to 76.69 today, approaching the 76-area support. Stocks are overbought and usually weak in September/October, and the dollar usually appreciates during the same time. We believe there is a good chance that the dollar may find support despite strong downward momentum and solidly negative sentiment.

www.cmsfx.com

Financial and Economic News and Comments

US & Canada

US import prices rose a more-than-expected 2.0% m/m in August, the fifth rise in six months, on higher energy prices, after a 0.7% m/m decline in July, data from the Labor Department showed. Excluding petroleum, import prices advanced 0.4% m/m. Export prices climbed 0.7% m/m in August, driven by higher nonagricultural export prices, after a 0.3 m/m decline in July. Import prices dropped 15.0% y/y; export prices decreased 6.1% y/y.

www.cmsfx.com

The Reuters/University of Michigan US

Forex Versus Stocks

Unparalleled liquidity
In the forex market, over $3.2 trillion worth of trades are traded daily, which makes the currency trading market the most liquid market in the world – trading in 1 day what Wall St. trades in 1 month. No matter what time of the day or night it is, the forex market is always moving, and around the world active traders are buying and selling currencies.

50 times more leverage than trading stocks
With stocks, the maximum leverage is 2:1. But when you trade Forex with CMS Forex, you can use up to 100:1 leverage. For example, if you invest $1,000 in stocks, with 2:1 leverage you may buy up to $2,000 worth of shares. However, if you invest $1,000 margin on a foreign currency trade, at 100:1 leverage, you can control up to $100,000 in currencies. Leverage is one of the most appealing and risky factors of the forex market. Traders should note that trading using leverage may increase potential gains as well as losses on any given trade.

Scratch-out the middleman
Spot currency trading bypasses expensive middlemen that are always associated with trading stocks. With forex, clients are able to interact directly with the currency market, and can buy and sell at the simple click of a mouse. No mess. No hassle. No middleman.

Commission-free*
With CMS Forex, you are never charged a commission. No clearing fees. No exchange fees. No Software fees. No brokerage fees.

Forex Autopilot

The Forex Autopilot technology helps users design and run automated Forex trading systems. The Autopilot effectively automates clients’ trading strategies by allowing them to setup Forex trading systems and automaticaly generating trades based on these systems. Trading systems can operate on a myriad of factors such as market conditions and multiple technical indicators. Forex Autopilot not only generates signals based on your custom trading systems but can also be set to automatically create orders and execute trades whenever a buy or sell signal is generated. Forex Autopilot also allows you to verify the effectiveness of your trading strategies by visually back testing your trading systems on historical chart data.

By default VT Trader™ includes a number of automated trading systems. Though fully functional these systems are provided as samples and are by no means to be considered trading recommendations. Nevertheless these Forex trading systems can provide buy and sell signals as well as generate orders. These systems can be used to help guide you in creating your own personalized trading system. You can either adjust the included systems and use them as a basis for your automated trading systems or easily develop new trading systems from scratch.

Forex Autopilot's intuitive Trading System Builder allows clients to easily create and configure new systems. Once a trading system is configured, VT Trader™ will automatically open and close positions at specified parameters. These parameters can include price levels, moving average crossovers, and even technical indicator levels. When certain conditions are met, as defined by the user in his or her trading system, orders are triggered. Forex Autopilot will manage your account even while you are away as long as VT Trader™ is running. This way, you can implement your Forex trading strategies without having to watch the market all day long.

Saturday, September 12, 2009

WELCOME TO STIFX- FOREX TRADING ONLINE

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