Technical Analysis

Technical Analysis is probably the most common and successful means of making trading decisions and analyzing forex and commodities markets.

Technical analysis differs from fundamental analysis in that technical analysis is applied only to the price action of the market, ignoring fundamental factors. As fundamental data can often provide only a long-term or "delayed" forecast of exchange rate movements, technical analysis has become the primary tool with which to successfully trade shorter-term price movements, and to set stop loss and profit targets.

Technical analysis consists primarily of a variety of technical studies, each of which can be interpreted to generate buy and sell signals or to predict market direction. Please see our Technical Studies page for a detailed description of these studies and their uses.

Support and Resistance Levels

One use of technical analysis, apart from technical studies, is in deriving "support" and "resistance" levels. The concept here is that the market will tend to trade above its support levels and trade below its resistance levels. If a support or resistance level is broken, the market is then expected to follow through in that direction. These levels are determined by analyzing the chart and assessing where the market has encountered unbroken support or resistance in the past.

For example, in chart below EURUSD has established a resistance level at approximately .9015. In other words, EURUSD has risen up to .9015 repeatedly, but has been unable to move above that point:

The trading strategy would then be to sell EURUSD the next time it gets close to .9015, with a stop placed just above .9015, say at .9025. This would have indeed been a good trade as EURUSD proceeded to fall sharply, without breaking the .9015 resistance. Hence a substantial upside can be achieved while only risking 10 or 15 pips (.0010 or .0015 in EURUSD).

On GCI's integrated charting system (GCI Multi-Currency Charts), the red support line shown above can be drawn by clicking on the "Trend" button at the top of the chart window, and then drawing a line by clicking the mouse once at the beginning of the line, and again at the end of the line.

Forex-Training.com provides high quality training and educational resources for foreign exchange ("Forex") and commodity traders.

This site contains information which will allow the novice to develop an understanding of basic trading techniques, risk control, and finally opening and managing a Live trading account.

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Practice with a Free Demo Account...

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Trading Forex by definition is never going to be easy and will always involve a high degree of risk. We suggest following basic step before you trade forex online. Finding a good Forex broker, also known as a market maker is essential to having an advantage in the currency exchange trading market. They initiate and execute our trades so they play a significant roll in our trading efforts. Before choosing a Forex broker you should be aware of just what you need to look for. No matter where you live in the world, you can find a Forex broker in your area of the planet.

When trading Forex, you are putting your money at risk. Not only with the risk of not knowing how to trade effectively but there is also a risk of contacting scammers and people who commit fraudulent online activities. You need a broker who is qualified and credible. They need to be registered with two major organizations to qualify as a legitimate broker. The first one is the Commodity Futures Trading Commission and the other is the Futures Commission Merchants. By only using brokers with these credentials, you are protecting yourself from online scammers as well as any unethical trading behavior. You should also make sure that your money is kept separate from your brokers funds. You can do this by making sure that they are regulated. This will also provide insurance for your account which protects you against fraud.

Find a fantastic system for trading Forex, you cannot afford to scrimp on this. You absolutely need to get the best Forex trading system there is, do not hesitate to spend some time searching and testing. This is where you will make your money so it needs to be a system that works well for your style of trading. It also needs to have the ability to generate a positive cash flow most of the time. This part of the learning process can take some time. You may find it necessary to test a few different Forex trading systems before something really great emerges. Don't take someone's word that a system will work for you, everyone has their individual trading style. In fact, it's almost as unique as a fingerprint because every individual has a different risk and tolerance level. The only way to be sure what will work best for you is through careful testing. Once you discover the Forex trading system that is indeed best for you, you will be well on your way to becoming financially independent.

Practice, you should also invest a good amount of time trading with practice accounts and paper trading. If you go through a period of time with a practice account and discover that you aren't making any progress, don't give up. Just keep in mind that there is money to be made and there are ways of getting lots of it. Change up your methods while practicing and don't stop until you discover how to make Forex trading work for you. This not only gives you much needed practice but it also gives you a chance to test out your newly discovered trading systems.

Forex Justice - The Fair Forex Trading Forum

Don’t Get Eaten Alive

Forex ReviewForeign exchange currency trading is a risky business with much to lose and much to gain. As a professional forex broker and personal trader, I have realized the fast profits this market can reap, while witnessing the dog-eat-dog nature of the beast, in which buyers lose their shirts every minute.

Whether you are a forex trader or just curious about forex currency trading, you owe it to yourself to separate the wheat from the chafe. The Internet is awash in foreign exchange currency trading websites whose sole existences are dependent upon ignorant forex investors. From get-rich-quick forex software schemes to free forex training, forex educational seminars, free forex signals, forex forums, and more, the fraudulence that surrounds the fx trading market is frightening.

Forex trading is very different from the U.S. stock market. The major differences include:

* Forex has no central exchange
* Forex trading can be done around the clock
* Forex has no overseeing regulatory commission, such as the SEC

The forex market is a wild, open arena without rules, laws, or a governing body. No one cares if your money is taken. No one will lose any sleep if you’ve been lied to. There are no repercussions if you’re treated unfairly. Investors trade at their own risk and have no legal recourse to enforce justice.

I know. I’ve been there. The scammers have burned me more than once. In an attempt to further my own knowledge, I fell for the magical software sales pitches and followed the crooked paths to the stolen treasures, only to be let down ad nauseam.

I served my time as a forex broker, which was an eye-opening experience. I heard and saw the manipulation of client profits that was business as usual. It quickly shifted my interest in trading and brokering forex to that of protecting forex traders. I redirected my efforts from studying daily forex signals to researching forex websites. I was determined to devise a resource on which forex investors could rely for honest, fair information exchange.
Know the Scammers

The best advice I can give is don’t trust anyone whose reputation you cannot validate and whose association is not legitimately tied to the actual forex market. This is especially important when selecting your forex broker.

The allure of trading forex can be overwhelming. It attracts many eager fx traders willing to gamble away their life’s earnings. Unscrupulous forex brokers, signal providers, fx educators, software peddlers, and forex frauds are waiting, with baited breath, to take your money and turn it into a profit for themselves – all at your expense!

The good news is that many forex professionals are honest and reliable, capable of assisting the most inexperienced fx trader succeed. Following forex signals and making profitable currency trades happens 24-hours a day, all around the world. The philosophy behind Forex Justice is to even out the playing field so everyone has a fair chance at winning.
Straight Shooting, Unedited Forex Reviews

Many Forex review websites are thinly veiled as informative, unbiased forex opinion forums. In actuality, they’re doing little more than championing their own causes. These supposedly neutral pages give the broker, forex trader, and interested parties a skewed view of reality.

Alternatively, Forex Justice is a revolutionary idea in forex trading. An open, two-way patented forex exchange system, reviews are considered from both the broker’s perspective and the trader’s. This unconventional method of publishing truthful forex stories to the investor and anyone else interested in forex has proven beneficial in reducing the number of forex scam websites and helped traders establish ethical business relationships.

This valuable tool, Forex Justice, doesn’t allow peer bashing yet encourages honest communication. Content is always reviewed but never edited so you get straight facts from real experiences. Learn about the way forex trades are conducted and quickly size up the scam artists. The more reviews we receive, the clearer the picture will become.
How the Two-Way Forum Works

Participants, including forex traders and others who have valuable information to contribute, submit reviews for consideration. Once approved, reviews are posted almost immediately. Vendors and professionals reply with comments in the aggregate to the reviews, addressing specific points or with general answers. The communication is limited to one reply per vendor or professional with a limitation on length. This encourages a fair, open forum, without back-and-forth bickering and unnecessary criticism.

Sign-up now and join the Forex Justice Forum. Only with the help of real-life forex scenarios and two-way communication, can we turn forex trading into an ethical, trustworthy investment option.

Forex Forecasts - FX Forecasting

A few points to understand when planning your strategy



If you are interested in Forex forecasts, it is important to understand that Forex trends are
easy to see in retrospect. Foreign currency markets are predictable, at least in a broad sense – however, they still bow to a certain set of variables.



Once a trend is in place in the Forex market, it tends to stay around indefinitely. It can last for months, even years. These types of Forex forecasts open a window of opportunity for longer-term investing
Watch the trends, but remember that Forex is unique.

The Forex marketplace is highly liquid, with rapid changes that take place around the clock. You can make a profit Forex trading by adhering to a trading strategy that you have created for yourself. Enter your stops only when the odds are stacked in your favor.
Keep in mind, when making or analyzing Forex forecasts:

* Forex is a truly seamless 24-hour market. Trades are conducted while you’re sleeping, eating, and working.
* Forex is a true zero-sum game. This means that a gain is often offset by an equal loss.
* Forex has no secondary measures, unlike other marketplaces. This means it has no upside/downside volume figures or P/E ratios.
* Major Forex players end their days mostly flat – this is because they are often handling billions of dollars - during their time zone.
* Central banks openly declare their intentions and impact trends in the Forex marketplace.

The truth is although there are overall trends to forecast in the marketplace, Forex is a highly volatile market. Like the stock market, Forex markets are ruled predominantly by emotions, perceptions and the reactions to these. There are many cultural differences to be aware of when working with a large span of currencies. A spike in your candlestick chart may be the reaction to a new story in another country, and the ripple may settle by the time the business day has closed in that geographical region.



Take the time to gain an understanding of the market, and analyze reactions. Forex forecasts can be the key to meeting longer-term financial targets, but it’s up to you to choose the best strategy for your needs. Make a plan, set a goal, and monitor your progress in the upcoming weeks and months.

What should you know about your managed Forex account?

Basic information to get from your Forex broker.



Once you have decided that you prefer a managed Forex account, the next step is choosing the right Forex broker to fit your needs. Your broker needs to be a professional that you trust completely, so it’s important that you take the time to do your research.



Shop around, ask questions, and don’t be afraid to dig deep into your broker’s practices and terms of service. If there is something you don’t understand in the disclosure documents, pick up the phone and get the answers you need.
Why choose a managed Forex account in the first place?

A managed Forex account is about freedom and flexibility. These types of accounts are meant for people on the go who simply don’t have the time to monitor the market all day. Ideally, a managed account works your money hard for the best return. You should feel comfortable with your Forex broker – this is the person, and company, on your side – think of them as your personal marketplace expert. A managed account puts capital management in the hands of professionals who have extensive experience in the currency markets.
What strategy does your managed account broker intend to employ?

Make sure to find out about your broker’s strategy when trading in the Forex market. Many firms use a complicated algorithm (a combination of discretionary trading, technical trading, and leverages) to explain the way they trade on managed accounts, so if you’re confused about the language, ask them to break it down for you in layman’s terms.
Choose your account type wisely.

Most managed account brokers have accounts that are ideal for investors seeking a moderate risk, lower return investment strategy. If you’re looking at long-term growth, this is the type of account you’ll likely be interested in. If you’re interested in something with higher risk (and potential for higher rewards) there is usually an account that is geared more toward a daytrader mentality - these accounts are considered aggressive and use a number of tactics capitalize on both market volatility and fundamental-based trends.



Discuss your financial goals with your broker so they can help you choose the account that’s right for you.



A few other things to consider when choosing your managed Forex account broker:

* Years of experience. Just make sure to check out the credentials of the firm, as well as your actual contact person.
* Ranking. Industry publications as well as mainstream publications, such as Forbes, often publish the name of the top-rated firms on a regular basis.
* Deposits and fee policies. What is the minimum deposit? Can you make deposits at any time? When will the funds be available for trading? How many days written notice do you need to give if you want to withdraw funds? What is the fee structure and how is it assessed – on a monthly basis? Weekly? Are there any penalties that you should be aware of?

Choosing the right managed Forex account can help you build wealth and reach your financial goals, whether you are looking for short-term growth or long-term investment. Take your time -- do your research -- and you’ll be able to build a financially rewarding relationship that benefits you for years to come.

Forex System - FX Trading Software Systems

Choose and Use Your Forex Software Wisely



There are plenty of Forex systems available on the web. Choosing the right Forex software can sometimes be perplexing, even for the experienced trader. Most brokers offer a Forex software package as a premium for users of their trading accounts. Just because it’s free, however, doesn’t mean it’s the right choice. It is important to evaluate different software platforms and get experience in using it correctly.
Trying out your Forex system

The software your broker gives you is most likely a very basic system. You may be able to add features to your program for a specific price. Initially, get comfortable with the software your broker provides. Once you’ve gotten familiar with it, download and try some different packages using a demo account. This will help you get an idea of what is available to Forex traders.
Desktop or Web-based?

Forex trading systems are available either online, as an application service, or via your desktop. No matter which platform you select, it is important to have a reliable and secure internet connection. A cable modem or broadband ISP is an ideal connection for trading.



Web based Forex software is the most secure type of software. Information stored in a desktop application can be penetrated by malicious software, viruses, and other unwanted intruders.

If you plan on desktop trading, it is important to have a firewall in place with constantly updated virus protection. You don’t want hackers somehow getting access to your account! You should also back up your hard drive regularly so you don’t accidentally lose information if your computer crashes.
Keeping your trading software secure

If you plan on using desktop applications for your trading, you’ll probably want to have a dedicated computer (not on a network) to serve your trading needs. A few things to help you keep your account information secure:



• Password protect any software or documents relating to your Forex trading system.

• Make regular backups of your trading information – past trades, current trades, and items that you are watching.

• Add protective software. It’s not enough to just use an anti-virus software program anymore. Don’t use the free versions – you often get what you pay for. You should have a firewall program (not just the Windows version) as well as a professional spy ware scanner. Make sure you schedule your scans to happen once a day – preferably, when you are NOT running your Forex software.

• Update your trading software, operating system, and other programs regularly.



Choosing the right Forex system solution is not just about the type of Forex software. It is also important to examine capabilities and learn more about the charts and other technical indicators available. Luckily, there are plenty of resources to help you make the right choice. Your software is directly related to your broker, so make sure that you read up on how to find the right broker for your needs as well. Welcome to the world of Forex trading!

Forex Charts

Understanding 3 Basic Forex charts
How to use them to see trends in Forex rates

You can view Forex charts to navigate trends in a variety of formats. Usually, your analysis tools will by supplied by your broker. Come traders also purchase software solutions for technical analysis online.



There are many types of charts for the Forex trader to use, but this article is going to give you insight into the basics. If you are familiar with the stock market, you may be familiar with some of these charts and how they are used.



When reading this article, you may find it helpful to use your charting software to generate some charts so you can learn as you go along.
The Forex Candlestick Chart

Each “candlestick” is composed of a vertical rectangle and/or vertical lines. The lines are actually more like blocks that look like a candlestick. This is the most common chart used to see trends in Forex rates. When looking at a candlestick chart, make note of the following:



• The rectangle – is it black or white? The rectangle color indicates the open and close of a day or trading periods. It may be colored black or white. It depends on the relationship of the open and close to each other. A white body indicates that the asset price, at the end of the day, was higher than it was when it opened. A black body signifies a closing price lower than the price at the opening of the day. The lines, often called shadows, show the high and low of the day.



• Candlestick lengths – how far do they range? The lengths of each candlestick's rectangle and shadows show the range of trading in a day. This can give a trader a good view of each day relative to previous and following ones.



• The patterns – what do they mean? Patterns of candlesticks, sometimes called constellations, maybe interpreted as an indication of human trading activity.

continue to forex charts, part ii

Automated Forex Trading

What to Look for in Your FX Provider



An automated Forex trading system can help a new trader practice discipline. The Forex market trades 24 hours a day and provides excellent leverage for every investor. Unfortunately, it can be challenging for the average investor to catch the trades they want if they need to get sleep in their time zone. Forex markets can move outside of their usual active timeframes. Without an automated trading solution, many investors miss valuable trades.


This is where auto trading comes in. Usually, the solution will be provided by your broker. You’ll have to customize your software to follow the methodology you use in your traders. With the right automated Forex trading software, you don’t have to focus on every detail – you just have to set it up in your application. Your software should place trades, monitor the markets, catch directional trades, and place the limits and stops once a trade is live. An automated system frees you up from the minor details and lets you focus on other areas of your trading strategy.
What to look for in your automated Forex trading solution:

• Does the automation allow you to trade multiple strategies?
• Is it easy to install and set up?
• Does the provider have online and live telephone support?
• Can it utilize multiple strategies in different time frames?
• Does it automatically place your orders early in the exchange queue?
• Can it trade multiple accounts?


An automated trading solution can help eliminate stress and avoid stalled decision making by processing all complex factors and differentials with quick and logical precision. Before selecting a provider, it is still important to test the system out on your own. Ask your broker for a demo of the software and take time to tweak the settings to make sure it makes decisions according to your strategy. The right features and options in your automated Forex trading software can allow you to customize your trading experience – even while you’re away from the computer.

March 17th 2006 READ MORE

Forex Signal Trading

Choosing the right Forex Signal Trading Provider



The Forex market is an extremely volatile and complex market – which is why so many professionals rely on signal trading providers. Signal trading providers assist Forex traders in keeping abreast of market changes – especially when you need to be able to monitor huge market moves in a matter of minutes.
How do signal trading providers work?


Forex signal providers usually send you their trading signals through charting software, e-mail or SMS. Signals come in at all hours of the day because of the nature of the Forex market. If you miss a trading signal, it can still work to your benefit. The great thing about the Forex market is that missing a trade can often help your positioning – you can take action on the signal at a later date based on your previous knowledge.
How do I know which signal provider is the best option for my needs?


You should choose your Forex signal trading provider based on your lifestyle – are you working a fulltime job or interested in day trading? Do you travel frequently or have a steady location you’ll be trading from? If you’re not in front of the computer all day, you may find the best option is to find a service that provides signal updates through a cell phone. You can then make your trades via the telephone once your signal is received. Otherwise, you may want to use charting software or email, where you can get instant market signals, and trade actively, at any hour of the day.
A word about Forex brokers

Choosing a Forex broker is just as important as the trading signals your employ. Many Forex brokers offer a 3 pip spread on all of the major currencies, however, some are much higher. Make sure your Forex broker provides you with the lowest spread.


Which ever Forex system you decide to go with, it’s important to do your research, stay disciplined, and stick to your plan. Many traders use Forex signal trading providers to do their research but are indecisive when they receive their signals. The key to making money in Forex is money management, knowledge, and discipline. Learn as much as you can in the market to achieve your financial goals. There is plenty of information on this site to help you along the way.

Forex Daytrading

3 quick tips for better daytrading technique in currency


The most exciting thing about Forex daytrading is that “daytrading” is a relative term when you’re speaking in terms of international commerce. The foreign currency market changes, spikes, and falls 24 hours a day. This means that even insomniacs, people who work long hours, and others with busy schedules can literally trade - the day, or night, away.
Three important tips for Daytrading in Forex

Moving into day trading may be a challenge, but it is much easier to make decisions by sticking to a plan that you’ll operate from. Here are a few important tips to get you started:

1. In the morning, make it a practice to scan daily price charts.
Make it a part of your routine to download the charts, just like brushing your teeth or having your morning coffee. (Highly recommended for day traders.) Keep an eye on the major currencies - the euro, Swiss franc, British pound and yen against the US dollar. Use your charting system to plot a simple year’s moving average to see what is happening. Technical trend followers act on such simpler signals; usually, they will watch for the crossover. Buy it when it goes above and sell it when it goes below – it’s really that simple.
2. Read up on bank reports daily. You should do this online.
Many large banks issue their numbers on currency analysis in the early morning.
3. Construct a 60-minute to see how the price action is doing.
60 minutes can give you a decent view on the market’s happenings today. Make sure to pay attention to the highs and lows, thus far. Think about probable prices as you analyze the chart, and levels that show promise for a new price direction.

If you have time, you can also take a look at 15-minute charts and chart intersects to choose when to sell and buy. As long as you can make quick decisions as you get in on the action, you’ll be able to find the patterns you need to succeed.



Just remember, as a Forex daytrader, you need to remember that currencies reflect economic realities and technical conditions. You can use whatever strategy you feel comfortable with, once you’ve developed your system and have a knowledgebase of experience to use in your technique. Make sure to read, learn, and try as many strategies as you can until you find the right one to work for you. There’s a wealth of knowledge to be found here in building your Forex system – so take advantage of it!

Forex Market

Trading information for beginners



If you’re a new to the forex (foreign exchange) market, you probably have a lot of questions. Making money in a global currency market is an exciting prospect; you’re probably wondering how, and what you need to get started. A lot of information on the internet is geared toward the knowledgeable trader who has at least experienced the stock market. Not everyone has the benefit of Wall Street experience. We are here to help you out if you’re not all that stock savvy and don’t have a financial background.
So, what is foreign currency exchange?

The basic term, foreign currency exchange, is used to explain the exchange of one country’s currency for another’s. If you’ve every traveled out of the country, you probably cashed in your American dollars to find that the trade was nowhere near equal. Forex is the same thing on a much larger scale – it’s similar to the market except it deals in liquid assets at all times. It’s the process of buying and selling cash from nations around the world.
How can foreign currencies be traded?

Currency exchanges can be handled on three different levels. You will need to use a broker or a brokerage firm that allows trades through one of the following:



• The Commodity Futures Trading Commission (CFTC)
• Securities and Exchange Commission (SEC)



There is also what is called the off-exchange (over-the-counter) market. An example of this would be that you return from your vacation from Canada and trade your cash in for American dollars. This is only on a retail level or corporate level. Off-exchange trading is subject to very limited regulatory oversight.
How much money do I need to trade Forex?

It depends on the Forex dealer. Brokers concentrated in the Forex market can set their own minimum accounts and are allowed to set their own fees and rate schedules. You’ll need to ask your dealer how much money it’s going to cost you initially.



Many dealers will require a security deposit (a “margin”) to cover future transaction fees. When you choose a broker, make sure that you look over the fees and schedules carefully before you deposit any money. It is important to understand your broker’s capabilities, as well, before handling any transactions through their firm.


These are just a few basic facts about the Forex market to get you started. Trading foreign currencies can be an exhilarating experience when you’ve begun making money, but it is important to get an education before you start out. This website has a wealth of information for the new Forex trader, including tips and strategies. It is highly encouraged that you read up to explore the possibilities of trading in a worldwide environment.

March 17th 2006 READ MORE

Pivot Strategies: A Handy Tool

For many years, traders and market makers have used pivot points to determine critical support and/or resistance levels. Pivots are also very popular in the forex market and can be an extremely useful tool for range-bound traders to identify points of entry and for trend traders and breakout traders to spot the key levels that need to be broken for a move to qualify as a breakout. In this article, we'll explain how pivot points are calculated, how they can be applied to the FX market, and how they can be combined with other indicators to develop other trading strategies.

Calculating Pivot Points
By definition, a pivot point is a point of rotation. The prices used to calculate the pivot point are the previous period's high, low and closing prices for a security. These prices are usually taken from a stock's daily charts, but the pivot point can also be calculated using information from hourly charts. Most traders prefer to take the pivots, as well as the support and resistance levels, off of the daily charts and then apply those to the intraday charts (for example, hourly, every 30 minutes or every 15 minutes). If a pivot point is calculated using price information from a shorter time frame, this tends to reduce its accuracy and significance.

The textbook calculation for a pivot point is as follows:

Central Pivot Point (P) = (High + Low + Close) / 3

Support and resistance levels are then calculated off of this pivot point using the following formulas:

First level support and resistance:

First Resistance (R1) = (2*P) - Low

First Support (S1) = (2*P) - High

Likewise, the second level of support and resistance is calculated as follows:

Second Resistance (R2) = P + (R1-S1)

Second Support (S2) = P - (R1- S1)

Calculating two support and resistance levels is common practice, but it's not unusual to derive a third support and resistance level as well. (However, third-level support and resistances are a bit too esoteric to be useful for the purposes of trading strategies.) It's also possible to delve deeper into pivot point analysis - for example, some traders go beyond the traditional support and resistance levels and also track the mid-point between each of those levels.

Applying Pivot Points to the FX Market
Generally speaking, the pivot point is seen as the primary support or resistance level. The following chart is a 30-minute chart of the currency pair GBP/USD with pivot levels calculated using the daily high, low and close prices.

The green line is the pivot point (P).

The red lines are resistance levels (R).

The blue lines are support levels (S).

The yellow lines are mid-points (M).

Figure 1 shows how the pivot line served as support for the GBP/USD for most of the European trading hours. Once U.S. traders joined the market, however, prices began to break higher, with each of the breaks first testing and resisting either the mid-point or the R1 and R2 levels; then the break occurred off of those levels (see areas circled). This chart also shows something that occurs frequently in the FX market, which is that the initial break occurs at a market open. There are three market opens in the FX market: the U.S. open, which occurs at approximately 8am EDT, the European open, which occurs at 2am EDT, and the Asian open which occurs at 7pm EDT.


Figure 1 - This chart shows a common day in the FX market. The price of a major currency pair (GBP/USD) tends to fluctuate between the support and resistance levels identified by the pivot point calculation. The areas circled in the chart are good illustrations of the importance of a break above these levels.

What we also see when trading pivots in the FX market is that the trading range for the session usually occurs between the pivot point and the first support and resistance levels because a multitude of traders play this range. Take a look at Figure 2, a chart of the currency pair USD/JPY. As you can see in the areas circled, prices initially stayed within the pivot point and the first resistance level with the pivot acting as support. Once the pivot was broken, prices moved lower and stayed predominately within the pivot and the first support zone.


Figure 2 - This chart shows an example of the strength of the support and resistance calculated using the pivot calculations.

The Significance of Market Opens
One of the key points to understand when trading pivot points in the FX market is that breaks tend to occur around one of the market opens. The reason for this is the immediate influx of traders entering the market at the same time. These traders go into the office, take a look at how prices traded overnight and what data was released and then adjust their portfolios accordingly. During the quieter time periods, such as between the U.S. close (4pm EDT) and the Asian open (7pm EDT) (and sometimes even throughout the Asian session, which is the quietest trading session), prices may remain confined for hours between the pivot level and either the support or resistance level. This provides the perfect environment for range-bound traders.

Two Strategies Using Pivot Points
Many strategies can be developed using the pivot level as a base, but the accuracy of using pivot lines increases when Japanese candlestick formations can also be identified. For example, if prices traded below the central pivot (P) for most of the session and then made a foray above the pivot while simultaneously creating a reversal formation (such as a shooting star, doji or hanging man), you could sell short in anticipation of the price resuming trading back below the pivot point.

A perfect example of this is shown in Figure 3, a 30-minute USD/CHF chart. USD/CHF had remained range-bound between the first support zone and the pivot level for most of the Asian trading session. When Europe joined the market, traders began taking USD/CHF higher to break above the central pivot. Bulls lost control as the second candle became a doji formation. Prices then began to reverse back below the central pivot to spend the next six hours between the central pivot and the first support zone. Traders watching for this formation could have sold USD/CHF in the candle right after the doji formation to take advantage of at least 80 pips worth of profit between the pivot point and the first level of support.


Figure 3 - This chart shows a pivot point being used in cooperation with a candlestick pattern to predict a trend reversal. Notice how the descent was stopped by the second support level.

Another strategy traders can use is to look for prices to obey the pivot level, therefore validating the level as a solid support or resistance zone. In this type of strategy, you're looking to see the price break the pivot level, reverse and then trend back towards the pivot level. If the price proceeds to drive through the pivot point, this is an indication that the pivot level is not very strong and is therefore less useful as a trading signal. However, if prices hesitate around that level or "validate" it, then the pivot level is much more significant and suggests that the move lower is an actual break, which indicates that there may be a continuation move.

The 15-minute GBP/CHF chart in Figure 4 shows an example of prices "obeying" the pivot line. For the most part, prices were first confined within the mid-point and pivot level. At the European open (2am EDT), GBP/CHF rallied and broke above the pivot level. Prices then retraced back to pivot level, held it and proceeded to rally once again. The level was tested once more right before the U.S. market open (7am EDT), at which point traders should have placed a buy order for GBP/CHF since the pivot level had already proved to be a significant support level. For those traders who did do that, GBP/CHF bounced off the level and rallied once again.


Figure 4 - This is an example of a currency pair "obeying" the support and resistance identified by the pivot point calculation. These levels become more significant the more times the pair tries to break through.

Conclusion
Traders and market makers have been using pivot points for years to determine critical support and/or resistance levels. As the charts above have shown, pivots can be especially popular in the FX market since many currency pairs do tend to fluctuate between these levels. Range-bound traders will enter a buy order near identified levels of support and a sell order when the asset nears the upper resistance. Pivot points also enable trend and breakout traders to spot key levels that need to be broken for a move to qualify as a breakout. Furthermore, these technical indicators can be very useful at market opens.

Having an awareness of where these potential turning points are located is an excellent way for individual investors to become more attuned to market movements and make more educated transaction decisions. Given their ease of calculation, pivot points can also be incorporated into many trading strategies. The flexibility and relative simplicity of pivot points definitely make them a useful addition to your trading toolbox.

1. "Day Trading the Currency Market: Technical and Fundamental Strategies to Profit form Market Swings" (2005)

2. "High Probability Trading Setups for the Currency Market" E-Book (2006)

3. "Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game" (2007)

A Review of Automated Forex Brokers

Several companies offer automated forex broker services. In the following articles, you'll find brief reviews of each.

What forex brokers offer automated services?

GFT Forex is an automated forex broker, whose DealBook FX 2 software offers the investor both a demo and a live forex trading tool in the currency market. This forex trading software offers the investor direct access to some of the tightest spreads, through a stable, standalone forex trading platform, 24 hours a day.

The DealBook FX 2 software shows live, dealable prices, real time data, free real time world and financial news, forex charts, more than 65 technical indicators, and the ability to build the investor’s own indicators.

GCI Financial Ltd., another automated forex broker, provides trading software that tracks real time prices in 20 major currencies, live charts, and real time profit and loss account tracking. The software is offered as a demo also. Market orders are confirmed within seconds at prices clicked on or accepted by the client.

The FX3K is an online automated dealing and trading platform used by automated forex brokers. The FX3K online trading environment includes real time quotes, charting, technical analysis tools, and news. FX3K integrates the client, dealer, back office and system administrator functions. Product features include high speed execution of client orders and the ability to monitor real time margin availability, net exposure and profit and loss on all open positions. FX3K has chat options to allow trader-dealer conversations.

The COESfx Level 1 Trading Platform is used by automated forex broker as an Electronic Currency Network for the execution of best prices for buyers and sellers of foreign exchange. It offers traders live and executable prices, thereby making each participant a market maker. Traders gain access to ""best bid/best offer” quotes directly from price providers and other traders. COESfx pricing is derived from a number of partners in the network such as banks, Futures Commission Merchants (FCM’s), Introducing Brokers (IB’s), fund managers and other traders on its Electronic Currency Network.

About fundamental analysis

The underlying elements affecting the economy of the subject is studied by Forex fundamental analysis. According to this method, the analysis of economic indicators, social factors and government policy of a business cycle can forecast price movement and trends of the market. The fundamentals of any country, multinational industry or trading bloc lie in the combination of factors like social, political and economic influences. Though, it is rather hard to stay aside from all these variable factors. So, the sphere of complicated and subtle market fundamental lets the explorer know and understand more details of a dynamic global market during the analyzing.

It is possible to predict the conditions of the economy but unlikely the market prices by using the fundamental analysis. You should have a certain plan of action concerning the ways of using the information as entry and exit spots in a certain strategy of trading. Forex fundamental analysis is a fundamental strategy of trading widely used by online trader of forex. This strategy contains some estimations where the different basic criteria, except for the price movement, are taken into consideration during currency trading. The economic conditions in the currency native country along with a number of other factors are the obligatory elements of these criteria. Any fundamental part of the economy is included into the fundamental analysis. A decent forex fundamental analysis includes a number of macroeconomic factors like economic growth rates, interest rates, inflation, unemployment level and others. The market supply and demand coming from political and social powers is the aim of fundamental analysis. The market supply and demand balance forms the currencies prices. The interest rates and the overall economy strength are the two key factors that influence the supply-demand balance. The overall health of the economy can be understood through a number of economic indicators like GDP. The frequent inability of online forex fundamental analyses to find the entry and exit points is forex fundamental analysis key problem. Due to this factor the risk control, especially provided with the leverage, gets quite complicated. Only a piece of an enormous amount of information coming every day is considerable. The interest rates and international trade are the factors analyzed the most carefully. In order to create the forex trading strategy fundamentalist traders create models. The empirical data is gathered in these models for further forecasting the possible price trends and market behavior basing on the key economic indicators.

Sometimes it happens that two analysts possessing the same data come to different conclusions about the market behavior. Still you should research the fundamental data and find out their best fitting to the style of trading and expectations before getting down to any analysis. Any data making the country tick is considered as fundamental by forex traders. The fundamentals are the combination of certain plans, unpredictable behaviors and unforeseen events found out from the factors like interest rates and the policy of central bank and even natural disasters. That's why it's better to be aware of the affective contributors of all these factors than to all the fundamentals listed.
Fundamental elements of the economy
1. The Basic Concept

The economy will be affected by the investment performance. The expected returns may change due to inflation or deflation influence. That's why it is important to take the economy trends into consideration while planning the strategies of investment.
A. The Business Cycle

The activity of the economy is generally shown by the business cycle. The business cycle consists of four stages: recovery (also known as expansion), peak, contraction (also called recession), and trough.

The growth of business activity, the increase of demand and production as well as the expansion of employment can be seen. The interest rates generally rise during this phase due to money borrowing by businesses and consumers for their expansion.
B. Inflation

At the moment of business cycle peak the amount of goods on demand gets higher than the one on offer which is followed by the prices increase and makes the inflation. At the inflationary environment the amount of money offered for the goods is too high and it makes the conditions for the prices to rise. This lowers the customer's ability for purchasing.

The demand declines lowering the economic activity due to the prices increase. The recessionary phase follows this process.
C. Deflation

During deflation the economical activity lowers making the employers fire the workers and lowering the demand. This is generally followed by the prices lowering that turn into deflation. The trough phase comes after that. Deflation is characterized as a process of strong and prolonged prices reduction. The following demand rise is caused by low prices and creates the conditions for the economy to come into the expansion phase.
2. Gross National Product (GNP)

Gross National Product is one of the key indicators of the economic activity. All the services provided and the goods produced within the US economy form the GNP. There are 4 components included in the GNP. They are: consumer spending, government spending, investments, and net exports.

Gross National Product adjusted for inflation (Real GNP) being in decline during two successive quarters is a sign of recession.
3. Indicators of the Business Cycle

Three types of indicators describing the economy movements during its entering into a certain phase of the business cycle are generally used by the economists: leading, coincident, and lagging indicators.
4. The business cycle's effect in Forex

Forex market is sensitive to the economy changes and reacts during its movement through any of the phases. It is important for the investors to monitor these changes and take right decisions in order to get benefits out of these changes.

The US dollar movements in the Forex market are usually trending the opposite direction to the interest rates. For instance, the increase of incomes caused by the interest rates uptrending declines the US dollar index accordingly.
5. Monetary Policy

The control of money and credit supply within the economy is the general aim on the monetary policy. The interest rates are affected by these processes and cause the economic activity decline. The monetary policy is mainly interested in the inflation control.
6. The activity of the Federal Reserve System (FRS)

The US monetary policy is directed by the Federal Reserve System. The nation's central bank, which is the Federal Reserve System, was established in 1913 by the Act of Congress that has created 12 Federal Reserve districts within the country. The Federal Reserve Board of Governors located in Washington D.C. is responsible for district banks activity coordination. The seven members of the board are appointed by the President and the nominees require the confirmation of the Senate later.

Tips on Buying a Buffalo Gold Coin

One quite recent investment opportunity when it comes to gold is the American Buffalo gold coins. Similar to the gold dollar coin a US insignia will be present on the Buffalo gold coins. There should be governmental guarantees about the quality and amount of gold that is contained in every coin. This is to guarantee the worth of the Buffalo gold bullion will not be questioned in world markets. It is pretty easy to buy Buffalo gold if you are willing to do a little research to find a dealer.

The Buffalo gold coin is pure 24k gold, much more pure than many other coins, such as the 22k American Eagle gold coin, which contains approximately 8% metal other than gold. This is the case 99 out of 100 times. You are sure to get gold with 99 percent of coins. The cost of the coin is started by taking the price of gold and the coin making process into consideration. These are the things that make the buffalo coin a popular investment when choosing gold.

This is the way to locate gold bullion dealers.

The US Mint will help you to find someone nearby. You will only need to pick the state. Their website will also give estimated prices for gold coins, based on the current trading price of gold.

Use a search engine such as Yahoo or Google and search for "Buffalo gold coin." You will be able to find many good results, like Blanchard and Northwest Territorial. It is important to check prices for different dealers of Buffalo gold as there can be a wide variation in pricing.

You can locate a dealer by looking in your phone book under the "gold" or "coins" section.

The U.S. Mint has made 300,000 of the Buffalo gold coin proof version. It seems like a huge number, however, some number more than 244,000 of the Buffalo gold bullion coins have been sold to some lucky buyers.

The US Mint will sell these to you. You can either contact the United States Mint at 1-800-USA-MINT or visit their website. They will be something that can be purchased separately.

One other choice to look at online auctions such as eBay to possibly locate one that is less expensive that the current price at the U.S. Mint site, but make sure the dealer is reputable, so you won't buy a Buffalo gold proof coin for more than you should.

Be sure to do your comparison shopping before you invest in gold, regardless of the form that it's in you definitely want to get your money's worth. Investing in silver bullion is highly similar to investing in gold bullion so the same principles will apply. You are going to find just as many people trying to rip you off by overcharging on the gold that they are selling as those who will not pay you enough for your scrap gold.

{The complication with becoming a collector of anything is finding someone to tell you how much what your collecting is worth.} {It is fun to find out how the bovine behemoth goes against coins from other countries.}

Why Most People Fail at Options Trading

Have you or your friends ever attended an options seminar, learned how "simple" it is to make a high income from options trading but yet when you did it for real, you failed to make any money consistently?

Indeed, from my observation in this industry over the past decade, I have noticed that the chances of success for beginner options traders are extremely slim. In options trading, as in everything else in life, only a very small percentage of people make money consistently from options trading. This is true even amongst beginners who attended the same options courses. Yes, even with participants of the same options course, some will actually make some really good profit from options trading while most will not. What went wrong?

I explored the reasons for failure at options trading and narrowed it down to two main reasons; 1. Lack of a proven and systematic approach which novices to finance and economics can follow and trade with. 2, Lack of a robust trading mentality.

Let's admit it, most beginner options traders are no professionals. In fact, most of them don't even have a background in finance nor economics and don't understand why things happen the way they do in the stock market or the economy. For such beginners, learning to pick stocks and analyze trades can be a disastrous attempt due to their lack of complete knowledge. This is where a lot of beginners fail. In fact, trading discretionarily by picking stocks based on a bunch of theories that may not work together in the first place or pure gut feel is a disaster even for professionals. In order for beginners to become consistent in options trading, a robust, complete and objective trading system and framework which has every angle covered needs to be introduced such that all they need to do is follow rules and make very limited subjective decisions nor analysis. Such a framework must include an objective method of identifying potential trading opportunities, objective method of identifying the correct options to trade with in order to optimize the risk/reward of the trade, an objective method of determining if an entry should be made as well as objective profit taking and stop loss policies. Without an objective and proven system and framework, no non-professional options trading beginners can hope to generate any consistent return.

Now, having that kind of "designed for beginners" trading system is merely the foundation of success in options trading. What really determines long term success is the trading mentality of the traders themselves. What's the use of a trading system when the trader is incapable of following rules? Indeed, there are many options trading beginners who has made such losses in the past that they are generally ruled by fear and emotion to the extend that they are unable to follow rules at all. When the methodology they are following requires them to make an entry when a stock breaks out, a voice in their heads will stop them from buying saying that the stock might just drop back down. Then they will watch the stock continue upwards until it's too late to make an entry.

There is a certain psychological profile needed of successful options traders and that includes the ability to listen to and follow the rules of their chosen trading system and methodology no matter how their emotions are firing up. They also need the ability to detach themselves from the money they are trading, just like a doctor's detachment to the cries of their patients. A strong trading mentality comes not by nature. It is something that can be trained. Great options traders takes care of the way they run their life in generally and focuses on stress reduction and proper rest in the way their daily routine are run. Conversely, there are also traders who have been through so much pain in the stock market that they are generally unable to control their emotions and trade in a disciplined manner anymore. Yes, sadly, there are people who should just stay away from options trading.

Chances are good that an options trading system that is suitable for beginners (http://startradingsystem.mastersoequity.com) can be found. It is the trading mentality that most beginners don't possess. In fact, in my observation, only about 1 in 10 people have what it takes to make it in options trading psychologically. The rest are fearful; fear of losing money, fear of their overall financial condition. It is exactly these fears that spoils trades and takes them deeper into their conditions.

Are there any solutions to the psychological issues of options trading?

The only way for most beginner options traders to become successful is to go through an extensive paper trading mentoring program over a significant period of time. Paper trading helps builds confidence if the trading system is good and over time convinces the trader that the system makes better decisions consistently than they can. Only when such faith is built can the options trader find the faith to follow their rules to the letter. Such period of training could take 6 months to a year. Sadly, most options trading courses are one weekend long these days. Real money triggers emotions which spoils trades if faith in the trading system has not been built up over a period of paper trading.

Options trading is like racing an F1 car. There is no short cut. Competence and proficiency needs to be built up over a significant length of training without which no secret formula can hope to work.

Jason Ng is the Founder and Chief Option Strategist of Masters 'O' Equity Asset Management ( MastersoEquity.com ) and author of an Options Trading education site, Optiontradingpedia.com. He is a fund manager specializing in options trading and his revolutionary Star Trading System has helped thousands.

Forex Fundamental Analysis Tutorial

In this tutorial you will learn how to implement fundamental analysis in your trading style. This is what some people called institutional Forex trading system.
You should learn the basic macroeconomic factors that influence global market. This is called fundamental analysis.

There is a great controversy between traders that use only technical analysis and traders that use only fundamental analysis. For me this is only academic. If there is information out there you should carefully watch it. Do not rely only in technicals or fundamentals. Use both. When you have a solid technical pattern that is supported by fundamentals then the chance that you are right is imminent. When technicals and fundamentals show in different directions then you should watch out. Do not be trigger happy with your Forex trading. Wait and see. Forex is not for prophets. You use scientific analysis in order to maximize the chance that you correctly recognize what the market has to give you. Analyze thoroughly, have a solid technical pattern, know the fundamental support of your analysis and you have a nice trading decision. Seize your risk tolerance and you will be a winner.

Every nation has it’s central bank which is responsible for the well being of the economy. Central banks watch some economic factors that affect the economy and adjust their economic policy accordingly. These factors are announced regularly and the exact time of the announcement is known in advance. These factors are the fundamental indicators of the economy. The most important central banks are FED of USA, ECB of European Union, BOJ of Japan and BOE of United Kingdom. There are many fundamental indicators but there are few of them that are called the “market movers”. They are called so because when they are announced they provide to the market the necessary steam to move. That happens because they have a great impact on economy and to traders’ positions also.

The most important thing you have to know about fundamental analysis is the market expectation of an indicator. Some analysts provide a probable number of the indicator to be announced. This has an impact to the market and traders are positioned accordingly. When the indicator is announced it affects the market only when it is much different that the market expected. That happens because every available to the public information is already taken into account. When the new information is announced then it has impact on the market only if it is different than expected.

Build up your plan. Know in advance what important fundamental indicators are to be announced the following week. Learn the expected number if it is available and try to forecast what will happen if it comes in better of worse figure. This is difficult for the beginners but after studying it will be easy.

There are many fundamental indicators. US indicators have the greatest impact on market. European Union’s indicators have less impact unless they are much different than expected. Watch out for central banks head officers speaking out and giving clues about inflation and interest rates. Today these are the two drivers of the economy. Words like vigilant or very vigilant about inflation from central bank’s heads have great impact on the currencies.

When the inflation is up central banks try to keep it low by leveraging interest rates. When interest rates are up then the currency is supported. Learn what economic indicators reflect the inflation and the decision of central bank about interest rates and you have an extra tool in your arsenal in order to trade.

Always watch out what the market already knows because all these information are reflected to the prices of the market. When fresh important information comes out learn it and position accordingly.

There is plentiful information about fundamental indicators in the internet. Visit Bloomberg economic calendar and Yahoo economic calendar. Use keywords like “Forex fundamentals”, or “Forex economic calendars” and you will find what you need. Study the meaning of these indicators and the relationships between them. Most Forex providers have a built in economic calendar with their trading platforms. The time on these economic calendars is frequently GMT. Learn your time zone and the difference between your zone and GMT and you will know the exact time the indicator will be announced. In these economic calendars market consensus, if available, is already reported. Study carefully the economic indicators. You will eventually have a great guide to help you in your trading.

Forex analysis — covering all aspects of forex market analysis

In this section we will handle the subject of forex analysis in much greater detail, with the hope of providing you a framework with which you can create your own approach and style of analysis.

We will attempt to provide general principles to be adhered to while performing the two types of analysis — fundamental and technical — and then we will look at the indicators and news releases in detail. The golden rule is that the trader should always aim to create a holistic picture from the patchwork of data that he has to go through on a daily basis. He should create models, and test them in light of market developments and the fundamental changes occurring in the analyzed nation’s economy. A mere knowledge of the data, without the power to evaluate and reconstruct it to suit our purpose, is unlikely to be very beneficial. The successful trader succeeds because he understands, while the unfortunate one fails because his attention span is too short to evaluate the information.
Fundamental analysis

Technical analysis
The power of fundamental analysis: George Soros and the Bank of England

There are many traders who successfully used fundamental analysis to obtain great wealth, but the exploits of George Soros, and his Quantum Hedge Fund have made them legendary.
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A step-by-step guide to fundamental analysis of the currency market

In this brief guide we will try to provide you with a step-by-step plan for analyzing the global economic environment, and deciding on which currency to buy or sell.
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The Treasury International Capital reports — gauge inflow of capital with the TIC report

The Treasury International Capital reports measure the monthly demand for US private and government securities. The TIC report measures the US financial account, and is of great importance in demonstrating the inflow of foreign capital into the US.
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How to use fundamental analysis to profit in forex

The forex market is the market par excellence for fundamental analysis. As we move onto study its practical applications, we’ll examine the use of fundamental analysis in the form of a dialogue between a successful trader, and a beginner.
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The basics of fundamental analysis

In this section we examine the economic indicators released by governments, central banks, and statistical agencies. Our goal is to show you the interactions between the various data, and how the fundamental factors influence trends in currency markets.
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The Perils of Forex Backtesting — how to evaluate a technical forex strategy

Backtesting of technical methods in light of past prices is the most popular testing strategy among technical traders.
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Forex price action — reading the language of the market

Those with even a brief experience with charts know that price action on an ordinary day is highly unpredictable and volatile. In this extensive presentation we equip the reader with the knowledge needed to understand the language of the forex market.
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Forex oscillators — the predictive value of divergence and convergence

Oscillators give the trader limit values which he can use to evaluate the price action. Divergence and convergence, as they are termed, are held to offer predictive value since they occur more seldom than the parallel movements of the trend and the oscillator.
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Forex trend indicators

The indicators covered in this article are used to gauge the strength and direction of a trend. The importance of trends has been a recognized fact for many years and trend following has granted its followers great profits over the years.
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A few general principles on technical analysis

Different market conditions call for different methods of analysis. In this short article we provide an overview of the tools available to technical analysts and briefly discuss which indicators are best to interpret ranging and trending markets.
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Things You Should Know About Forex Trading

There are some questions that how to make money by trading the Forex market? What is the time period in which one becomes able to make living trading Forex market? These two points and other aspects are discussed in the article. Forex market trading has so many advantages as compared to the other fiscal markets and some are- 24hrs market, better execution, and superior liquidity etc. Dealers and depositors see Forex market as a major opening with all these advantages. So, it does not mean that making money trading the Forex market.

The Forex market experts are of the view that ninety percent of the dealers simply loose their money out here, five percent reach a situation of break even and five percent receive significant outcome. Trading is not an easy task and to master any venture is also not easy. Not in my view as there are musicians, writers and businessmen and their success ratio is identical. There are others who are not able to make it to the top.

Keeping the fact in mind it is not easy to produce constant lucrative outcome, but what it does is it raises one question that that why some of the dealers succeed in getting constant lucrative results and some are not able to in the Forex market? There are no fixed steps or methods that can be easily followed to get the significant results. The only fact that is known is that those who make it to the top their thoughts are different. They are not the ones who will do the same as others do.

Few points that differentiates the top dealers from the rest:

Education: The professionals are intellectuals in their field and they are aware of every single characteristic of the trading. These intellectuals have the best knowledge of their field and they learn new things from every trade. They work in the Forex market with a more humble attitude or else the market will get them wrong.

The organization of Forex trading: Those who are professional of Forex trading they have a unique working method. They thoroughly follow the guidelines as they know that the trade that functionalize on their methods gets a decent success rate.

Cost Factor: Price factor is also included in the trading method as they know that the price factor is really important factor.

Money Organization: The dealers have to take an extra care of the damages as they cannot trade without cash in your account.

Behavior of the trade: These professionals are also aware of what will be the behavior and choices those can be effective for the decisions taken by the dealers. They are aware of the fact that not everybody can be successful.

These elements are really essential for the success of the dealers of the Forex. It is admitted that it is not easy to earn money trading Forex market but it is not out of reach either. Some of the essential elements those are also discussed for the better performance of the Forex dealers. The main question how to achieve constant success in Forex market? It also varies from dealer to dealer, some dealers can get constant results in short time period and some are not able to achieve results in many years. It is worth mentioning that achieving constant success is a matter of patience and it will come with the changing time it is something that you have to earn it.

Getting positive and rewarding results is not an easy task and probably will take years to achieve constant success. There are factors those are very important for every trader that could assist him in achieving a speedy success- the traders should have trading system, should be aware of the market behavior, have significant knowledge, religiously following the trading methods, and planning for the conducting the trade.

FOREX Secrets

How did the taipans and billionaires get so filthy rich?!

Besides the more obvious hard work and diligence and always saving little by little in their piggy banks, the really rich guys know how to work up the foreign exchange.

Basically, foreign exchange trading or simply FOREX trading is just the buying and selling of the world’s currencies. Money today is not the same as money tomorrow. Money has time value. The worth of a currency can go up or down.

There is one secret that FOREX traders live by. And it is buy low, sell high. Don’t ever forget that rule.

However, the trick is to know when to buy and when to sell. In FOREX trading, everything is by speculation. Sure, there are graphs to aid decisions. Business pages also give out strategies for the day. But the next step is always a guess based from the previous actions.

FOREX traders like to call their speculations as smart guesses. Usually, patterns on the currency values can be derived from how the politics of a specific country is running.

For example, if there is a plan to oust the president, most probably the value of that country’s currency will go down—how low, we don’t know. Usually. Because there are still a lot of factors to consider why a currency is going strong or not.

Improvement on the tourism sector can mean more foreign investments. This will be good for a particular currency, but this may affect how the other countries are doing.

These are just trade scenarios. As the cliché goes, one man’s medicine may be another man’s poison. One country’s good tidings may be another country’s, well, downfall.

That is why in FOREX trading, another secret to live by is to be aware of the national news in the country concerned.

Current events have a say on the economics of a country. Money makes the world go round, so to speak.

But, if one is truly serious in earning their first million in FOREX trading, another secret is—it might be a good idea to invest in a FOREX trading training school. Learn from the pros and conquer the world afterwards.

Let me leave you one last secret I learned from my father. If everyone is going in this direction, go the other way. This applies to FOREX and other areas of life. You won’t ever get rich by following the crowd.

Besides buying low and selling high, follow that last secret and you might just join the ranks of the taipans and billionaires. The foreign exchange market or better known as FOREX is when one currency is traded for another country’s currency. It is an alternative form of business where the goods to be bought and sold are money itself using money.

In the past, people would normally engage in stocks and pool their savings in the money market to build up their investment portfolio.

Nowadays, with more than 1.5 trillion USD of FOREX being exchanged on a daily basis, even the “small-time” investor can participate in the FOREX market. There is leverage in the FOREX market where a minimum amount of currency can have access to a large deal of money.

A lot more advantages to study and dive into FOREX trading include the following:

Why FOREX?

24-hour trading

Compared to stocks, FOREX trading is twenty-fours. A FOREX trader can trade right away once they spot an opportunity to buy low and sell high. Remember, money has time value. And a lot of factors in the economics and politics of a government affect how low a currency will drop or how high a currency will gain. It is fairly easy to say buy low and sell high. But the trick is to know when to do it. With twenty-four trading, the FOREX trader has the ultimate advantage already. Since, after all, time is money.

High liquidity

A market or business is considered very liquid if the assets involved can enable the person to directly meet his payment obligations. In other words, if cash is at hand—immediately. What is a more liquid market than the FOREX market?

FOREX has high liquidity, because it can be traded swiftly, without considerable loss of value, and anytime within the trading hours or in FOREX trading’s case—24/7.

No commission

FOREX trading need not have brokers in between to facilitate. With other forms of money market ventures and stock trading, brokers come in handy; because they are able to handle varied forms of portfolios and company stocks for the investor. Even if FOREX trading is involved with multiple currencies, it is a very direct business where the trader himself can act on his own; thus no commissions are leaked out and all profits are kept!

Steady market availability

In all businesses, businessmen strive for a steady market, if not an increasing one. Why spend time in a trading scene when it is short-term?

Because FOREX trading is all about the buying and selling of currencies, it is a continuously moving market. Money make the world go round, as the cliché goes.

The market will always be there. The trader only has to be aware of the rising and falling of the currencies. When is the currency starting to be weak? When is it going strong? Is there a trend?

Taking action

This benefits and advantages all the more make FOREX trading a very attractive business venture. For first time FOREX traders, why not inquire now at your home bank on how to start making your money work for you? FOREX trading is the way to go.

Forex Trading Information

FOREX — the foreign exchange (currency or forex, or FX) market is the and the most liquid financial market with the daily volume of more than $3.2 trillion. Trading on this market involves buying and selling world currencies taking the profit from the exchange rates difference. Forex trading can yield high profits, but it is also very risky. Everyone can participate in Forex trading via the Forex brokers.

Don’t forget to check and bookmark my Forex blog to get the latest updates about Forex market and this site’s content. You can also join a friendly Forex traders community at the Forex Forum.
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Sajan from India writes about iFOREX:

Review on Iforex (iforex.com) – Well it has been reviewed by a lot of victim investors who lost their money to iforex frauds. You do a google search and you will find scores of reviews clearly mentioning that they are fraud and cheating investors. Th...
baki from switzerland writes about LiteForex:

I don^t now î^m using lite forex for 1 one day but as i saw they are georgious .

just deposit from my credit card and in a sec. money was on my live account.

i didn^see that not to any other broker.

for example FDD you need one day .......
moshtaghi_d from Iran writes about Basel Financial:

This Broker don't alow withdraw by WEBMONEY.

it only accept funds via webmoney and the only one withdraw option is WIRE .
Latest Forex News
Canadian Dollar Down on Central Bank Pressure
Fri, 23 Oct 2009 19:26

After trading near parity with the U.S. dollar in the beginning of the week, the Canadian dollar fell sharply after the national central bank stressed on the problems a strong currency could cause to the economic recovery of the North American nation.

Dollar Gains on Federal Reserve Speculations
Fri, 23 Oct 2009 18:46

The dollar had a good performance versus the yen and several other currencies on speculations that the Federal Reserve will consider interest rate hikes before than previously announced.

Risk Appetite Sets Yen Down
Fri, 23 Oct 2009 14:15

The yen had a weak performance today losing versus most of the 16 main traded currencies towards the end of this week’s session as increased risk appetite has shunned traders from its safety to seek higher-yielding possibilities in emergent markets and commodity-linked countries.

U.K. Persistent Recession Sets Pound Down
Fri, 23 Oct 2009 13:04

The U.K. fell “vertically” today after quarterly gross domestic product figures were published in London, signaling that the national central bank will have to extend its measures to help Great Britain on its way out of recession, decreasing attractiveness for the pound, which fell drastically.

Latest Glossary Entries
RSI (Relative Strength Index) — indicator that measures of the power of direction price movement by comparing the bullish and bearish portions of the trend.
CCI (Commodity Channel Index) — a cyclical technical indicator that is often used to detect overbought/oversold states of the market.
ADX (Average Directional Index) — standard technical indicator that measures the strength of a trend.

What is Forex (Foreign Exchange)?

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

MG Financial, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's DealStation™ allows them to participate in FOREX trading by providing a combination of live quotes, Real-Time charts, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis.