CURRENCY EXCHANGE - A BEGINNERS GUIDE

Global economies are fueled by the exchange of goods and services. Every country maintains a standard currency with which these goods and services are bought and sold.

A currency exchange can be used for several different purposes-for tourists to convert their cash into the local economy's cash, for businesses wanting to maintain banks in foreign countries, and for speculators to buy and sell currencies and attempt to profit from price discrepancies.

The primary mechanism to make all these activities happen is through a currency, or foreign, exchange.
This article will explain what a currency exchange is, services provided by an exchange, and the impact of the internet on currency exchanges.

What is a currency exchange?

Simply put, to exchange currency means to exchange one country's monetary legal tender for the equal amount in another country's tender.

Every country's currency has an exchange rate in relation to every other currency in the global market. This price relationship is called an "exchange rate". This rate is determined by supply and demand.

There are three main reasons why someone would want to exchange currencies.

What services does a currency exchange offer?

1. For the tourist. When you travel to another country, you exchange your country's currency with the local currency so you can buy in the local markets. How much money you get in exchange depends on the market relationship at the time.

Most currency exchanges adjust their rates on a daily basis, even though price fluctuations occur every second.

2. Foreign Business. Businesses who conduct commerce overseas will setup a bank account, or multiple bank accounts, to conduct transactions. If a businesses wishes to convert the local currency into another currency, the bank's currency exchange function will handle it.

3. Investors/Speculators. Futures speculators can buy and sell foreign currency in an attempt to profit from the difference in two separate currencies. Investors use currency exchanges to hedge their market investments. An investor may invest in foreign companies and hedge those investments in the foreign currency markets.

The Internet's impact on currency exchanges

The Internet has certainly made a huge impact on currency exchange operations. Instead of visiting a physical currency exchange location, tourists can exchange their money online and pickup the cash at a local business.

As for the currency futures markets, investors no longer hail from large institutions or banks. The retail investor-the guy sitting at home in front of his high speed enabled computer-can buy and sell currency at the click of a mouse. This has created an explosion in the currency trading industry.

Currency exchanges provide essential services to three types of customers-tourists, businesses, and investors. By using the latest technologies, currency exchanges are at the forefront of online financial markets.

HOW TO MAKE PROFIT FROM THE FOREX MARKET

The forex, or foreign exchange, is simply a marketplace for the sale and purchase of various world currencies. Forex trading aims to take advantage of the floating exchange rates of these currencies, which literally fluctuate moment-by-moment, 24 hours a day. It is this volatility in the market which creates enormous opportunities for profit.

Forex trading used to be solely the domain of large financial institutions and investment groups. Thanks to the advent of online trading platforms on the internet, more and more individual traders are now able to participate in the market. There are many online brokers with whom you can open and fund a trading account. Most of them offer a free demo account, which allows you to learn to read the various charts, evaluate different types of technical analysis indicators, and practice risk management techniques, all without risking any of your own capital.

It is important to understand that currencies are traded in pairs on the forex. While there are countless combinations of different currencies, it seems that the most commonly traded pairs are: Euro/US Dollar (EUR/USD), Great British Pound/US Dollar (GBP/USD), US Dollar/Swiss Franc (USD/CHF), and US Dollar/Japanese Yen (USD/JPY). Many traders, especially in the beginning, will choose to settle on one currency pair such as the EUR/USD, and focus on the nuances of that one particular market. After gaining some experience and knowledge of currency interactions, many traders eventually go on to trade several currency pairs in order to increase their profit potential.

As with other financial markets such as stocks or futures, the market responds to the classical influences of "support and resistance." These are simply price levels that are determined by well-established mathematical models of price action over time, and serve to provide the trader with a reasonable expectation of the range that a particular market will trade within, on any given day. This fundamental knowledge (which is very easy to acquire), combined with even a minimal amount of technical analysis (also very easy to acquire), gives even the beginning trader the basic tools to trade the profitably.

It is widely known that every investment activity carries with it a certain risk of loss, and the forex is no exception. The extreme volatility of the market serves to amplify this risk factor at times. It is therefore imperative that traders implement an effective risk management strategy from the beginning. Fortunately, most online trading platforms simplify this task by providing the ability to place "stop loss" orders, either at predetermined levels or according to a rule specified by the trader. In this way, trades can be automatically terminated if they are going against the trader, thereby minimizing any loss of capital.

Success in trading the forex depends upon learning to balance the risks and rewards inherent in this market. There are many, many tools available online to accomplish that goal, even for the beginning trader. Overall, the dynamics of the forex market make it a very attractive investment vehicle for the individual investor, providing a unique profit potential with a minimal investment of time and money.

CURRENCY TRADING SYSTEM - BUILDING A PROFITABLE ONE IN 4 STEPS

If you want to trade currencies then you need a currency trading system that will get the odds in your favour and here we will show the basics that make a successful one. Anyone can build one and incorporate it in their Forex trading strategy and it's easy to do - Let's look at the basics.

1. Identifying the Opportunity

The best way to identify an opportunity is to use support and resistance and good old trend lines. We won't explain support and resistance here - but if you are not familiar with it look it up on the net - Here we want you to keep in mind one key point:

When you trade be selective and only trade valid support and resistance.

What do we mean by valid?

- The more tests the better - The more time frames involved the better - The longer the duration between the time frame the better

The above are just general guidelines - you can use 2 tests but 3 tests or more, are better and look for resistance or support that is considered important by the market.

You then need to decide after spotting the opportunity on your forex charts when to trade.

2. Executing the Trading Signal

Never simply buy into support or sell into resistance with your currency trading system.

This wont work, as your predicting what may happen and as you can't predict the future ( despite what many guru's will tell you), you are simply hoping or guessing and the market will kill you.

You need confirmation.

If you don't know what momentum indicators are look them up - you need them and there an essential part of your forex education.

You only need a couple to confirm the move - more is not better as you need a simple system - more complicated ones have more elements to break.

The way to use them is to watch for a level to hold and when momentum shifts away from the level then you trade.

Don't just look for support or resistance to hold though - incorporate breakout methodology. It's a fact that most trends start form new market highs NOT Market lows. So, if prices breakout supported by momentum buy them!

Most traders can't do this they want to get back in on a pullback that never comes - don't make this mistake trade the breakouts like the pros do.

Finally be very selective and only trade the best set ups - in forex trading you don't get paid for how often you trade you get paid for being RIGHT.

Trade sparingly and only trade the big high odds trades.

3. Stops and Profits

Stops are easy and behind support and resistance. Place them as soon as your currency trading system gives a signal.

If you are long term trend following, keep your stop well back and give the market room to breathe, so you don't get stopped out by random volatility.

You are going to miss the turn but as you can't predict that anyway, that's fine.

Catch 50 - 60% of the big trends and you will become very rich.

Swing trading is another matter.

You're looking for smaller moves and they can disappear quickly, so use a profit target and take your profit early!

Don't worry about perfection of what you might have made - concentrate on making money - no one is perfect but that won't stop you enjoying currency trading success.

4. Managing Your Money

Forex trading is risky, that's why the rewards are so high. Many traders however try and restrict risk so much they create it.

They trade to often have stops to close and move them too quickly and end up losing.
Confront risk cheerfully!

Forget all the common wisdom about risking 2% per trade- if you're trading a $10,000 account that's 200! If you don't risk much you wont win.

If you have a high odds trade risk 20% and have the courage of your conviction.

If you take calculated risks at the right time you can enjoy currency trading success.

FINALLY REMEMBER THIS!

So there you have it the above is a simple system - support resistance and a few confirming indicators and the best systems are.

Keep in mind that forex trading is as much to do with mindset as method and you need to maintain discipline.
Simple currency trading systems are easier to understand, apply and have confidence in which leads to the discipline to follow your currency trading system to long term currency trading success.

FOREX DAY TRADING - THE ILLUSION OF PROFIT THE REALITY LOSSES

More novice traders try forex day trading than any other method and while you will hear people telling you it makes money and see gurus selling courses, the fact is you never see a real track record of profits - Why? Because - it doesn't work.

The Illusion

Forex day trading doesn't work in the real world - because all daily volatility is random.

The net result is that support and resistance levels (and any technical tool you try) have no chance of working, therefore you have no chance of winning.

Millions of traders, trade trillions of dollars and to say that you can tell what this huge mass all driven by different motivations, experience and emotion will do in a few hours is laughable.

The illusion day trading makes money is just that - an illusion.

Traders back test data and bend their systems to make them fit the data.

Of course, when these systems are traded the data never replicates itself EXACTLY the same way again and they lose.

This is known as "curve fitting" i.e. bending the system to fit the data.

One trader I know likened this to shooting at a barn door and then afterwards drawing a circle around everyone, to show it as a bulls-eye.

If we all knew tomorrow's price today, we would all be rich - shame it's not that easy in forex trading - we have to trade not knowing the prices!

Vendors feed on this naivety and greed, by making up track records based upon hypothetical simulations done knowing the closing data, put a disclaimer on and forex traders think it will work in the real world.

They don't - ask for a real time track record and you simply won't get one.

The vendor makes a guaranteed profit from selling the myth and the trader gets the reality of a loss.
The Reality Is..

If you can't trade with the odds in your favour, you're going to lose and we have already told you why.
Another reality is that forex trading involves risk.

Day traders think their restricting risk and will have small losses - sure they do but over time they get a lot of them!

Of course one of the well known phrases of trading is "cut your losses and let your profits run" this totally alien to forex day traders - what do they do when they get a profit?

They snatch it!

So they have lots of small losses and a few marginal profits (even day traders get lucky ) and the result is the demise of their account equity - PERIOD.

If you want to win at forex trading - forget forex day trading and either try forex swing trading or long term trend following, where support and resistance levels can be used to generate high odds trades.

Today, most traders are looking for an easy buck and forex trading is not easy, they buy day trading systems with the illusion of low risk, regular profits and that's all it is an illusion.

The reality is a wipe out of equity.

Avoid forex day trading, if you want to win at FX Trading.

WIN FOREX TRADING - THE ONLY WAY TO WIN & NOT JOIN THE LOSING MAJORITY IS

It doesn't matter what system you use there are plenty of ways to make money but you need one thing to help you avoid becoming one of the 95% of traders who lose. So, if you want to know if you can win answer this question below:

I will win at forex trading because: I have a trading edge which is (Defined)

Now a trading edge is something that separates you from the majority of losers and a trading edge is NOT any of these!

- I am following a guru blindly - I have bought a system that can predict tops and bottoms in advance - I have a successful day trading system (a contradiction in terms!) - I am trading news stories - I trade by my gut instinct

The above are common answers and there all guaranteed to lose you money.

Most people approach forex trading like it's a walk in the park and its not - that's why the rewards are so high and so many people lose.

Listen to what I say, because I am not a self proclaimed expert telling you its easy and if your serious about forex trading your wouldn't expect it to be, there is big money at stake!

The good news is...

Everything about currency trading can be learned by those willing to get the right forex education and who have a desire to succeed.

In fact, if you can get the right forex education and forex trading system the money that can be made is life changing.

It doesn't matter what your edge is, so long as you know it, it's based on sound logic, you are confident in it and have tested it.

Mine for example is:

Hitting contrary trades hard by using 3 indicators to spot the set up and two to time entry and hitting them hard even though I am going against the herd.

Yours maybe something else - it doesn't matter, so long as you know that it will help you beat the losing majority.

A trading edge is a combination of learning, understanding and confidence that leads to discipline to execute your system.

Unless you have confidence and discipline in your forex trading system, you won't be able to execute it and you may as well not have a system at all.

A trading edge is an acceptance of responsibility for your own destiny and working smart to get a system you know will win.

If you like to follow and blame others do something else.

If you don't like taking calculated risks or being wrong then again go and do something else.

Forex trading is not for cry babies, it's a big boys (or girls!) game, where you need to accept the responsibility for your destiny and the challenge.

A trading edge can as we have said earlier be acquired by anyone - if you have the desire to succeed and a willingness to learn, you can be a winner to.

The markets are unforgiving and brutal - they can only be right and you can only ever be wrong - but that doesn't mean you can't get an edge and win.

You can ...

When you trade the markets you must understand how to play the odds just like the successful card player.
You fold when the odds are against you and bet big when there in your favour.

Sure, you will have losers but if you trade with the odds and an edge, you can enjoy currency trading success and win at forex trading and in many instances, make gains that can be life changing.

The question is are you up for the challenge?

If so, welcome to the worlds most exciting and lucrative business!

FOREX CHART MISTAKES 6 COMMON ONES THAT WILL SEE YOU LOSE !

Forex charts are an excellent way to make money yet most traders have no idea on how to use them correctly and 90% of traders lose. Here we will outline 6 common mistakes traders make with forex technical analysis and if you make ANY of them you will lose to.

1. Using Science

Many novice traders make the mistake of thinking that forex prices move to scientific law - stand up the devotees of Gann, Elliot and Fibonacci - but of course they don't. If they did then we would all know the price in advance and there would be no market - period.

These traders are naive or lazy - what they need to understand is trading is a game of odds not certainties.
Leave the scientific theories to the far out investment crowd and dreamers and concentrate on the reality of making money - and that means trading the odds.

2. Trying to Predict

Even traders who don't use scientific forex trading strategies try and predict.
For example, they see prices dip toward support and buy - but this is hoping and guessing and they are going to get a lesson.

If you want to win you wait for the test of support and pfirs to move away from the level supported by momentum.

If you don't know what momentum oscillators are now is the time to learn and make them an essential part of your forex education - if you don't trade with price momentum, you are simply guaranteed to lose.
Look up our other articles for further details - you must trade with momentum indicators to get the odds in your favour.

3. Using invalid data

Day traders! All volatility is random in daily time frames and prices can and do go anywhere so you can't get the odds in your favour and you will lose.

More novice forex traders use forex day trading systems than any other method and it's the best way to lose money - Don't try it.

4. Using Indicators The Wrong Way

How many times have I seen people buy dips to a moving average? Loads of times and it's a guaranteed way to lose money - it's a lagging indicator!

Another great one is - traders using outer Bollinger bands to set stops - that's not what it should be used for, it's a gauge of volatility.

These are just two examples - but there are many more - always use indicators for what they are supposed to be used for.

5. Being To Complicated

Many traders think the more the better and try and use loads of indicators and complicated equations in their currency trading system.

Their wrong!

Simple systems using support, resistance and a few momentum indicators are all you need to succeed.
Why?

Because - simple systems are more robust and less likely to break in the brutal world of trading.

You don't get paid for being clever in forex trading; you get paid for being right - so keep it simple.

6. Being too Subjective

The more objective you're trading, the more likely you are to stay disciplined and keep your emotions out of trading.

Avoid using indicators that are subjective such as, cycles etc and stick with objective rules.

Finally...

Using forex charts is easy and quick and you can soon be enjoying currency trading success, so long as you use them the right way.

When you use forex charts you are a bit like a ships captain - you can use them to navigate correctly but if you don't, then just like the captain at sea who makes errors the market will drown you and your equity.

THE FOREX OPTION EXPLAINED

A Forex options when you buy the right - but not the obligation - to buy or sell a particular currency at a particular rate any time between now and the expiration date of the option. Let's say you're worried that the Japanese yen is going to drop in value sometime in the next six months. You might buy an option that basically locks in the current exchange rate for whatever period of time the option seller allows, usually anywhere from 30 days to six months. You set a number of yen, too. Say you choose 10,000 yen at a rate of 116 yen per U.S. dollar for three months. The option basically says, "I may want to sell 10,000 yen sometime in the next three months, but I'm worried the yen is going to devalue in that time. So I've locked in this rate of USD/JPY 116."

Then three months pass. If your prediction was correct and the yen has weakened in that time -- say it's now USD/JPY 122 -- then you exercise your right to sell 10,000 yen at the rate you bought three months earlier. Everyone else selling yen today (everyone who didn't have a Forex option, that is) is selling it at 122 per U.S. dollar, and you get to sell it at 116.

If, on the other hand, the yen has stayed the same or gotten stronger, you are under no obligation to actually sell that 10,000 yen your option talked about. You can simply do nothing, and all you've lost is the premium you originally paid for the option.

Ah yes, there is a premium. Brokers who sell Forex options charge a fee for the privilege. Think of it as insurance; calling it a "premium" certainly fits. The price of an option for 10,000 yen for three months might be $200, which you must pay up front. If the yen drops enough in value, you'll hopefully turn enough of a profit to make up for the $200 you had to pay. If it increases in value, and you wind up not exercising the option, all you've lost is the $200 premium.

Forex option trading used to be done only by major banks and corporations, but now many brokers who cater to individual traders offer the service, too. If you're a heavy-duty trader, an option is definitely something to consider to guard against future setbacks in the currency you hold.

Forex trading is far from an exact science; however, we are very lucky to have the technological advances that we have in todays world. Jason Stepp is a successful online Forex trader who puts his FOREX trading on auto-pilot, using an automatic Forex trading system. If you are interested in learning how you can put an automatic Forex trading system to work for you.

THE IMPORTANCE OF A SOLID FOREX TRADING SYSTEM

Said to be one of the largest exchange markets, the Forex market is gaining immense popularity. The possibility of earning large profits adds to the appeal. Although trading in this market is not easy, it can be, provided you find a proven and profitable Forex trading system.

Even a planned investment can often take a wrong turn. The investor has a bad day even after planning his actions. Nevertheless, this is of little concern to the Forex trader. Every trader in the Forex market knows that to keep the losses to a minimum the trader will have to follow their forex trading strategy and use proper money management. In this way, he will learn to survive the volatile investment market and make profitable trades in the long term.

The Forex market allows traders to conduct their transactions in a rather emotionless manner. This is because the pre-determined guidelines that form a forex trading system can make it easier for traders. Executing actions is now easy as there are fixed price levels of initial stop loss and trailing loss. Apart from this, there already exists a computed price profit, which is projected in the trader's interests. This computation allows the trader to know what his level of loss or profit is and even the risk to reward ratio before he even begins to trade for the day.

Using the proper forex trading system, the trader plans his trade and makes a profit with the right moves. But on the other hand, if the trader makes a wrong move and is more likely to make a loss than a profit, the Forex trading system will show the trader that he is making a wrong move. In this way the trader is able to move out of the situation quickly and the huge losses he would have otherwise incurred is no more a worry. Trading in this way protect the trader from large losses and helps lock in higher profits for winning trades.

There are many types of forex traders from position traders to swing traders to day traders. Forex traders who buy and sell their currencies or open and close their markets on the very same day are considered day traders. There are many traders who believe that the day trading system is not worthwhile and do not give it much importance, but with the right forex trading strategy, day trading can be very profitable. When researching a forex trading strategy, what you need to do is review it by finding out the reactions of other Forex traders. You can ask any existing Forex traders about their trading experience and how they like their trading system and if they consider it to be a profitable one. Trading forums are another way of receiving reviews about Forex trading systems. As there are a number of forums, you will have no difficulty in getting the information you require. However, many professionals feel that day trading is quite profitable though it is not the easiest way to trade. If this wasn't a profitable method of investing then how does one explain the large number of day traders who earn their income solely from this source? Therefore, if you wish to be part of any system that relates to day trading then it is necessary that you have sufficient knowledge about many Forex trading systems and strategies.

Many sites let you in on the Do's and Don'ts of Forex trading. There are no secrets but there are things you do need to be aware of. These sites provide you information on Forex trading strategies, forex trading techniques and all other information that you may be in need of. You can also find a number of helpful forex trading tools, information and techniques are made available to make Forex trading easier for the trader.

TRADING WITH FOREX (FOREIGN EXCHANGE ) BROKERS AND PLATFORMS

Forex or Foreign Exchange is all about exchange of currencies of one country to the others'. It is about investing money in foreign currencies to gain profit by selling it at a higher price. Till few years back, currency trading was limited to large banks and financial institutions and they had access to the tools and methods to trade Forex.

However, because of the recent development of efficient online platforms and communication technology, individual traders can trade or invest in Forex. Forex brokers, conventional and online, works as the useful link between the investor and the market.

In this internet era, forex foreign exchange brokers are 24-hour online service providers who offer a secure online trading experience for you either in exchange of a small subscription or a percentage of commission. Forex brokers are individuals or group of professionals and market experts who can help you in making profits in forex trading.

You can open a mini account with a small sum to learn the basic principles of the market and then can graduate to a standard account. Your foreign exchange broker must help you in understanding the market, what are the advantages and risk factors involved with the trading.

Your forex broker should be registered to Futures Commission Merchant regulated by the Commodity Futures Trading Commission or should be a member of the National Futures Association.

You will find many online directories on the net that offer information on forex foreign exchange brokers and professionals and their services. These directories will help you in finding the right forex broker with accurate information about their past record and performance.

A typical forex foreign exchange broker may offer you 2 pips spread on EUR/USD and USD/JPY and 3 pips for all other major currency pairs. The spread should be low as lower pips means lower costs and thus a higher return on every execution.

The online trading platform offered by the forex broker should guarantee execution prices on every order type available without any slippage. The forex broker must provide a fully executable streaming price feed. The trading platform should be user friendly and easy to operate.

These days the forex brokers offer their services through mobile networks. It is a beautiful combination of portability and functionality. You can operate your forex trading through your mobile sets/PDA. With advanced technologies, it takes less memory space, offers increased stability, and robust security methods.

An ideal forex foreign exchange broker should offer

· low Pips spread on all major currencies

· instant execution even for large accounts

· zero slippages and no requotes

· constant margin requirements, even in volatile market situation

· free real-time charts that are rich in functionality

· stable and reliable dealing software· no or low commissions

· extended technical analysis packages for free

· free foreign currency exchange news and economic fundamental calendar

· no negative balances - limited risk.

Before choosing the forex foreign exchange broker, do a proper research. Take help of the online sites offering comparison charts with pros and cons of the brokers and their services. Find out the spread they are offering is really the one you are getting while making actual trades. Ask for the past performances and enquire about the additional services they offer.

HOW TO TRADE WITH ACCURATE FOREX FORECAST SIGNALS

Serious forex traders around the world need accurate forex signals beside technical and fundamental analysis for a disciplined and rewarding trading. With accurate forex signals based on research and market study, forex traders should be ready to apply their analysis, and experience for maximizing the return on investment.

Accurate forex trading signals are indicators of trends in the forex market. Indicators like breakouts, support and resistance levels, envelope patterns, currency pairs near moving averages, oscillators, Fibonacci levels, help the forex traders to decide on a profitable entry into the market.

Accurate forex signals are selling and buying recommendations, which you can receive from independent service providers for a small subscription. Your forex broker can offer the signals for free as an add on service.

Accurate forex signals comprise of signals, tips, and trends and in most of the cases offered daily. Accurate forex signals are entirely based on fundamental and technical analysis of the market and not on speculations or rumors.

Accurate forex signals are free from the traders' emotion. Signals follow certain patterns following the market trends and various forces of demand and supply of currencies and therefore mechanical in nature.

They are best for traders who cannot watch the market round the clock. As the accurate forex signal services monitor and analyze the market and send their findings directly to you, either by email or sms, you can take action the moment you receive a signal.

Using a variety of technical studies the accurate forex signals are generated. For example, SMA or Simple Moving Average and MACD or Moving Average Convergence Divergence studies indicate buy signals when currency prices rise over the average line.

Accordingly, sell signals occur when the price falls below the moving average line. Some accurate forex signal services offer volume indicators that can determine market interest. For example, Bollinger Bands indicate sharp price changes in the market.

The best and accurate forex signal service will be the one that uses more than one indicator to form the signal. Many such indicators together will form a reliable source of information. But it must be remembered, the signals can never be 100% accurate.

They work as very good advice guiding the trader on currencies to trade, but can never guarantee the return it predicted. You must always ask for the track record to show the past performances of a forex signal service.
Accurate forex trade signals software application sends alerts in real time. It generates entry and exit points for major currency pairs on the basis of market parameters. This works as a perfect tool and ideal solution for traders to strengthen their. These signals are easy to understand and use.

COMMON SENSE TRADING

Percentage of accuracy is an obsession of novice traders. But it is not a very important criterion for judging a trading indicator. Some highly effective models are wrong more often than right. While some marginal models are right more often than they are wrong. The best advice "keep it simple" . Nothing is a better indicator than a price chart. When looking for a trading program you need to first establish realistic objectives that are right for you. Remember a trading system designed for a well- capitalized long-term investor wanting to ride long- term trends will not work for an undercapitalized speculator looking for quick profits with minimal risk.
The big investor can handle large draw downs (negative positions) that always occur when trend trading.
The trader with limited capital needs to find profit in the smaller price movements that occur on short- term time frames. This individual needs a sensitive, accurate program that can offer consistent profitability. Smaller gains. But more frequent.

Both traders need to manage their capital accordingly. The big trader will trade less frequently. The smaller trader will trade more frequently but must cut losses immediately. Trend trading is easy. Anyone with a good long-term chart and a decent book can trade a trend. Short term trading requires the individual to develop the ability to learn how to understand and interpret price activity.

If you want to be successful you must study and learn. You cannot simply buy someone else's technology and blindly rely on it.

Short-term traders need to first adopt a specific set of rules that are learned and then internalized. This builds confidence. Which then develops quality experiences. Then the ability to utilize technology comes into play.
A short-term trader needs to first develop the ability to trade a stand-alone pricing chart consistently before considering moving forward and adding on additional analytical tools. Unfortunately most individuals do not take this path. Most pursue a program that is typically trend based and try and make it work with less capital on a smaller time frame only to end up wasting valuable time and money.

All short-term traders need to develop the ability to trade based on price action then evolve into more sophisticated processes.

That is the mission of The Trading Institute. Visit http://www.TheTradingInstitute.com

HOW TO TRADE WHEN YOU DON'T HAVE CLUE

Wall Street made a reasonable job of reassuring investors that the economy wasn't as bad as feared last week. Blue chip companies such as Apple and American Express beat earning expectations and Google continued its meteoric rise...

The stock market extended its recovery last week after plunging on Friday October 19th. Wall Street had sold off for five straight sessions ending that Friday as worries about the credit market's effect on the economy escalated. Several blue chip companies offered sluggish outlooks and S&P downgraded more mortgage-backed securities. Higher energy prices and a weakening dollar are also hanging over the market. Treasury Secretary Henry Paulson said in a speech that China must allow its currency, the Yuan, to gain in value more quickly. This will help counter imbalances in the economy and make monetary policy more effective in responding to inflation.

Rumors circulated mid-week that the Federal Reserve, which is scheduled to meet next week might be lowering interest rates before then or be doing so by 50 base points again. The central bank has also been adding a substantial amount of liquidity to the financial system over the last couple of weeks.

"Once people hear about a rumor, they tend to cover their shorts. Even though it's just a rumor that's out there" said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. Short-covering is when traders undo bets that predict the market is going to fall. "There was a lot of bad news this week. It's pretty clear Wall Street wants a rate cut and wants it soon."

With the possible rate cut coming, most traders have already placed their trades to take advantage of the cut. Should the FOMC decide not to cut rates then the market might then be set up for a dramatic retreat. Most traders would unwind their trades, and others might reenter the short positions that were closed out in anticipation of the rate cut.

What does this mean for the short term outlook of the SP500?

The only think that we can possibly be confident in happening is that volatility will pick up, while we aren't sure in which direction, Betonmarkets allows us to take that guess out of the equation with a up or down bet.
An up or down bet compensates the trader if the index touches either a higher or the lower trigger. This type of trade is useful when you don't know in which direction the index is going to break out to, but you are confident it will break out somewhere. An up or down with a 45 point trigger in both directions, with a 20 day term on the SP500 returns 8% ROI. This means that the S&P 500 has to rise 45 points in either direction over the next 20 days for you to win.

RECEIVING FOREX TRADING EDUCATION

There are many people in this world who want to do Forex trading. To start with Forex trading people should always learn about Forex trading first. They should take proper education on Forex trading. It is always advisable never to do Forex trading without proper knowledge. With the correct Forex trading education, a person can work his own way towards trading and with a clear profit.

The basic thing to know before starting Forex trading is what is Forex? Forex is basically known as foreign exchange. Forex is the immediate exchange of one country's currency for another. The trading should be done at the right time to gain profit. A person can learn all this with thorough Forex trading education.
The main part of Forex trading education is to learn about the market conditions. As the scenario of Forex market keeps on changing, Forex trading education will help you observe these market conditions and how can they be favorable for you.

The second step of Forex trading education is to know about the risk control and risk management. With education on this you can learn to manage yourself and your emotions do not overpower your thrill of the possibility of making money. It trains you how to control your losses.

One other vital part of Forex trading education is to know about how to open or manage your Forex trading account. You should always start your trading with the demo account. With demo account there is no chance to lose money and it is just as realistic as the real trading account. Forex trading education will help you know when you can trade in the real world. It is suggested that you should open your live trading account only when you are prepared.

The various ways to get Forex trading education are:

Online Forex trading education, as there are many free websites available that provide free demo accounts for practicing.

Free seminars, which are held and are available to participate in easily.

Take advice from the people who are into Forex trading from last many years. They will be able to provide complete overview on the Forex trading topic.

The Forex trading education provides complete information and knowledge to the people and makes trading easy for them.

THE IMPORTANCE OF LEARNING HOW TO TRADE THE FOREX

Although the majority of people will have heard of Forex trading, few people understand just what it involves and will probably believe that it is something for the 'big boys'. Well, nothing could be farther from the truth and a growing number of people of relatively modest means are trying their hand these days.

There are many hundreds of world currencies but only a few of these are traded on the Forex (FX) market which concerns itself in the main with seven major currencies. Forex trading is the purchase and sale of these seven currencies in pairs so that you could for example purchase Euros by selling Japanese Yen. The idea is to purchase a currency when it is at a low price and then sell it when the price rises to make your profit. Naturally this sounds simple but, in the real world, it is not of course as simple as it sounds and you will have to have a fair amount of knowledge before venturing into the market.

The Forex market is the world's largest financial market and operates twenty four hours a day around the world, which is one reason why so many people are attracted by it. Years ago currency trading was very much the realm of major banks and financial institutions but nowadays even individuals can try their hand provided they do so through an accredited broker.

So, if you are considering getting in on the act then you should begin by seeking out some education and either find yourself a first rate training course or begin by apprenticing yourself to an experienced trader.
It is crucial that you understand how the currency market works before diving in as it is a volatile market with few barriers or boundaries and it is easy to lose the shirt off your back if you do not know what you are doing.
You must begin by understanding trading psychology since even the best traders will both make and lose money as the market moves up and down and it can be a rough ride at times both financially and mentally.
You will also also to master the tools of the trade like charting and mapping which are done nowadays using some quite sophisticated software packages. Like most software the results you get out are very much a product of the data which you put in and it will take time to learn to use these tools.

Discipline is yet another crucial aspect of trading and is something which does not come naturally to the majority of us. It is very simple to find yourself getting carried away when you are trading profitably and to over-reach yourself only to come down to earth with a crash. Learning to establish your own rules and trading principles is one of the foundations of your trading success.

Should you be tempted to leap in with both feet then take a step back and have a good long think before doing so. Very few beginners who try to go it alone without the requisite training are successful and, even when they do meet with success in the short term, they nearly always see their fortunes reversed before very long.
There is no substitute for a good grounding in the basic principles of Forex trading and the confidence which this will leave you with will be reflected in the success which you enjoy.

COMBO FOREX PRIFIT SYSTEM - IS IT PROFITABLE ?

Trading forex with the mental of a winner is something you must do to stop being frustrated, especially when you are new to forex trading. But how to have that confidence, how to be sure that you are going to make profit with your system.

The answer is that you must have good trading system that can minimize your losses and maximize your profit. Forex Profit System's author guarantees so. Though he doesn't promise that he can make all winning trades without losing trades, but he guarantees his system can end up making big profit. There is a controversial fact is that you don't need complicated and confusing fundamental or technical analysis to trade successfully.

Forex Profit System is among the systems that again prove that simple fact. The system is simple, it doesn't rely solely on technical indicators but it is combination of chart, candlestick patterns and technical indicators. It contains of three steps to identify the trends and sell/buy signals.

There is the myth that forex traders need to predict the market. That's wrong, because no one can predict the market, especially in such a volatile market as forex trading. What makes a successful forex trader is a good trading strategy that can identify signals and trading plan that can manage well money.

Forex Profit System identifies the buy/sell signal, it helps riding the trend to maximize profit. It also has good clear stop losses policy to minimize your losses. It is just like just "SEE" and "ACT". Many veteran traders after many years trading also come to a conclusion that it is much better to stick to a good battle-tested system that you can understand on your own than running around with different complicated systems.

ONLINE FOREX TRADING AND THE FUNDAMENTALS OF ECONOMY

The Forex market is a global entity that embraces most of the economies of the world and which behavior reflects a number of factors that at the end determine the performance of the countries economies, and being more specific for our Forex purposes, the performance of their national currencies.

When trading Forex you will need to approach the markets with the highest amount of knowledge you can gather so you can understand what the currencies are doing and why the price goes up or down. The are two kind of analysis you can use for this purpose; one is Technical analysis and the other is Fundamental analysis.
Technical analysis is aimed to the study of charts and the behavior of prices from a more mathematical point of view. And it's from this kind of analysis that most indicators derive as Bollinger bands, Moving Averages, Fibonacci levels, etc.

But there is also the Fundamental analysis. This kind of approach is mainly based on the economic performance of a particular country and its currency. It's also based on political events, natural phenomena that affect a country's production capacity, etc. Also as factors that influences the value of a particular currency we could mention the acts of Congress regarding corporate tax structure, labor legislation reforms; of course the amount and direction of military spending, specially in times of global instability. Even the Supreme Court rulings on different issues can have an impact on the value of the currency in the international markets.

Without any doubt the Internal Revenue office will have also an important influence on the forex market with their rulings on corporate or personal tax , also the Commerce Department's forecasts, prices for agricultural products, etc. Almost all important events in a particular country will have an influence on its currency.
As a forex trader you should always have an eye on these events, at least the most important ones so you can have a reliable indication of what course will the forex market take and act accordingly always with the intention of having profitable trades.

AUTO TRADE FOREX - USE TRADEBOTS FOR A STRESS FREE TRADE STYLE

If you choose to trade Forex on your own you have to educate yourself a lot before trading successfully.
Even then, you have to be up to date with financial news, technical analysis and all other aspects of trading. This often means spending more than 8 hours in front of your trading desk.

If you choose to follow a self called "trading guru" then you will find yourself losing money in the process without any special benefit in your trading.

You do not have the time to trade as a professional. Your job takes most of your time and when you come home after a full day job you need to spend a little time with yourself or your family.

Despite you love Forex trading you do not have the time to devote to it.

What should you do?

There is a solution. A perfect solution indeed.

Today's technological advances have permitted the involvement of trading robots, or what I like to call "TradeBots".

These TradeBots can handle the trading on your behalf. They scan the market continuously for trading opportunities and enter the market timely, to offer you a unique trading experience.

TradeBots are like trade managers only that they are software.

Think about it. You leave the TradeBots to trade your account. They are sleepless, emotionless and they report their results whenever you tell them to. Even from your wi-fi enabled PDA.

TradeBots are not sci-fi. It is a revolution in trading that will permit everybody to trade even without knowing anything about trading.

FOREX TRADING SOFTWARE & ITS GREAT UTILITY FOR TRADERS

Trading currencies is one of those few activities you can do at home or from almost anywhere and that can give you an income very few jobs will be able to provide. You can participate in forex trading thanks to the wide spread availability of the internet these days and the use of trading platforms that are easily installed in your computer, letting you enter your trades outside the "pits" at the market's headquarters.

The basics of Forex are not really complicated and you should be able to understand them in a few studying lessons. But you are not into Forex just to learn the basics, you are into this because you want to make money and that's what will motivate you to go beyond the basic understanding and start considering a forex trading system into your trading tools arsenal. Before you enter a trade in forex you should know what may happen next after you have entered a trade, and in order you can know this you will need a collection of indicators at hand giving you what's is known as entry signal and exit signals. Also as you decide to participate in the Forex market it will be necessary that you consider with all care your investment objectives and your own trading psychology, in other words your risk appetite.

A good forex trading software will give you a great rest and peace of mind when it comes to making the big everyday decisions in your trading career, thus reducing the risk sensation before you enter your trades. If you can find one, take it and get all the juice you can from it. There are a few forex software systems out there that can analyze the market conditions and give you pretty accurate indicators with entry and exit signals that if used wisely will only mean more money in your pockets. Aim for these and always remember that nothing is hundred percent accurate so trade wise and be smart.

FOREX TRADING FUTURES

Ad In the mid 1990's for purposes of futures trading, currency trading made a massive move away from currency futures to more direct trading in the Forex markets. Choose aspects of the different systems that are out there that fit your trading style best, and then build your Forex trading system. The following are the characteristics of a Forex Mini Account.

It is important to choose a Forex broker that belongs to a reputable company that has been established in the field for a long period of time. In Part2 we will take a look at a few other do's and don'ts for choosing a Forex trading system. Besides, about a dozen of his colleagues were taken in the same trap (captured by the same trick) - notwithstanding the fact that their experience of work at Forex varied from 2 to 8 years.

If you are trading in United States, make sure your Forex brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Knowing this is the key to successful Forex trading and your key to profit. Day trading currencies are also easier to monitor and predict compared to stocks as there are less of them and the factors influencing global Forex market are lesser. In day trading, you can lose big as well as win big all in a single day so I would not recommend anyone to take up day trading until you have sufficient experience and knowledge in the stock or Forex markets. Since you don't pay a commission to a Forex broker, they make their income through the spread. Ea Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching. The backbone of the Forex market consists of a global network of dealers.

In summary, within the Forex market, currencies are priced and traded in pairs. Knowing enough about automated Forex trading to make solid, informed choices cuts down on the fear factor.

FOREX TRADING FUTURES

Ad In the mid 1990's for purposes of futures trading, currency trading made a massive move away from currency futures to more direct trading in the Forex markets. Choose aspects of the different systems that are out there that fit your trading style best, and then build your Forex trading system. The following are the characteristics of a Forex Mini Account.

It is important to choose a Forex broker that belongs to a reputable company that has been established in the field for a long period of time. In Part2 we will take a look at a few other do's and don'ts for choosing a Forex trading system. Besides, about a dozen of his colleagues were taken in the same trap (captured by the same trick) - notwithstanding the fact that their experience of work at Forex varied from 2 to 8 years.

If you are trading in United States, make sure your Forex brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Knowing this is the key to successful Forex trading and your key to profit. Day trading currencies are also easier to monitor and predict compared to stocks as there are less of them and the factors influencing global Forex market are lesser. In day trading, you can lose big as well as win big all in a single day so I would not recommend anyone to take up day trading until you have sufficient experience and knowledge in the stock or Forex markets. Since you don't pay a commission to a Forex broker, they make their income through the spread. Ea Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching. The backbone of the Forex market consists of a global network of dealers.

In summary, within the Forex market, currencies are priced and traded in pairs. Knowing enough about automated Forex trading to make solid, informed choices cuts down on the fear factor.

USING PERCENT R INDICATOR TO TRADE - GET PRECISE STYLE

In his original work, Williams' method focused on 10 trading days to determine a market's trading range. Once the 10-day trading range was determined, he calculated where the current day's closing price fell within that range.

The %R study is similar to the Stochastic indicator, except that the Stochastic has internal smoothing and that the %R is plotted on an upside-down scale, with 0 at the top and 100 at the bottom. The %R oscillates between 0 and 100%. A value of 0% shows that the closing price is the same as the period high. Conversely, a value of 100% shows that the closing price is identical to the period low. The Williams indicator is designed to show the difference between the period high and today's closing price with the trading range of the specified period. The indicator therefore shows the relative situation of the closing price within the observation period.

The trading rules are simple. You sell when %R reaches 20% or lower (the market is overbought) and buy when it reaches 80% or higher (the market is oversold). However, as with all overbought/oversold indicators, it is wise to wait for the indicator price to change direction before initiating any trade.

FURTHER OPTIONS TRADING & PRICE AND TIME TRADING

Futures Options trading

Please only use these examples for educational purposes. Paper trade them.

I was doing my search for option inconsistencies and here is what I found. I am looking at how much an option costs per day compared to an option from a different month in the same futures market.

December T-Bond futures contract closed at 113-25March T-Bond futures contract closed at 113-26
Dec. T-Bond options have 26 days left until expiration.March T-Bond options have 120 days left until expiration.

Dec. T-Bond 120 Call options settled at -02 (2 ticks).March T-Bond 120 Call options settled at 28 (28 ticks).
The March 120 Call is 14 times more expensive thanThe Dec. 120 Call, but it ONLY has 4.6 times more time left.

Dec. T-Bond 108 Put options settled at -02 (2 ticks).March T-Bond 108 Put options settled at -24 (24 ticks).
The March 108 Put is 12 times more expensive thanThe Dec. 108 Put, but it ONLY has 4.6 times more time left.

When putting on any calendar spread, buy the cheaper cost per day options and sell the more expensive. Even if you are not putting on a spread, this is a great way to choose which option to buy or sell.

Price and Time trading

Let's look at March Wheat. The recent high that stands out was 966.50 which happened on 09/28/07. I round off the price to 967 and enter the price and date into the Gann section of my Price and Time software. Below are the exported results:

Gann Analysis Project Name: March Wheat
Input Values ----

Price: 967

Date : 09/28/2007

Results

Potential High Prices

-------

Price1: 981

Price2: 999

Price3: 1013

Price4: 1031

Price5: 1045

Price6: 1063

Price7: 1077

Price8: 1095

Potential Low Prices

-------

Price1: 949

Price2: 937

Price3: 919

Price4: 907

Price5: 889

Price6: 877

Price7: 859

Price8: 847

Potential Dates

-----

Date1: 11/11/2007

Date2: 12/26/2007

Date3: 02/09/2008

Date4: 03/26/2008

Date5: 05/11/2008

Date6: 06/26/2008

Date7: 08/12/2008

Date8: 09/28/2008

Notes--When price and time meet, we have a potential reversal point in the market.

FOREX - HOLIDAY TRADING GOOD OR BAD IDEA ?

As the widely observed holidays approach, you, as a trader, may wonder whether it would be a good idea to trade in the foreign exchange (FOREX) market on these special days. Because the FOREX is 24-hour, worldwide market, you would think that this would be the greatest of times to trade, especially since money is flowing everywhere in commerce. But what is it really like to trade on the holidays?

Market Open

You will generally find the markets open even on the major holidays like Christmas Eve and Christmas Day, New Year's Eve and New Year's Day, as well as on the U.S. Thanksgiving. The vast FOREX is true to its insomniac nature during the festive season and follows it regular schedule. Throughout the trading year, the U.S. or New York Session is one of the largest in the FOREX. However, you must also remember that U.S. banks are very liberal with taking holidays off. Therefore, just because the FOREX market itself is considered open, that does not mean that the banks are all open and rendering full service.

Brokers' Platforms Open

Many FOREX Brokers, especially of the online variety, have facilities available for trading on these major holidays. But the reality is that the volume becomes very thin. Let's face it-even traders like to take time off to spend with their families and friends and spend money at the mall. The effect of the decreased volume in the FOREX is decreased liquidity. When a market does not have liquidity, it is difficult, at best, to get in and out of positions profitably. On the other hand, when there are lots of traders participating, fun can be had and money made. The U.S. Thanksgiving is not going to be as quiet as Christmas in the FOREX market, since it will perhaps affect only the U.S. Dollar-based currency pairs for the most part. Apparently, other countries and their traders are not as excited about our national holidays as we are. Surprise, surprise.

Downside Risks

One of the consequences of a market that is not so liquid is the increase in the spread charged by the broker. You will notice a similar effect during any given weekend of the year, by virtue of the same reason of lack of liquidity. Naturally, as a trader, you prefer the smaller spreads, since you get to keep more of the profits in your pockets as a result.

Conclusion

So then should you or should you not engage in FOREX trading on these holidays? If you like boring and expensive trades, then go for it. Otherwise, look your loved ones in the eye and tell them that you are so thrilled to spend some quality, uninterrupted time with them. Then prove it by spending some of that quality cash you earned during the previous months. Happy spending!

FOREX - YOUR FIRST LIVE TRADE

You have read and read about trading in the foreign exchange (FOREX) market. Ideally, you have even taken a course or two on the subject. As you look at your bank account balance, you are more motivated than ever as you contemplate its present condition versus the potential. Really, though, the only missing piece now is the reality of trading live. You want to jump right in, but instead you pause with cautious optimism as you wonder what to expect at the big moment. Here are some tips to help you cope.

Calm Your Emotions

Fear, indecisiveness, nervousness, uncertainty and loneliness-these are the emotions you want to avoid or, at least, put in the proper perspective. Are they normal? Absolutely! In fact, one or more of these can be viewed in a positive light as types of behavioral moderators. To be sure, a certain type of fear is healthy. For example, having a fear of getting out your account balance wiped out should remind you of the need to utilize proper risk management techniques and tools. Your indecisiveness may be a result of genuine confusion existing between the normal indicators you would rely on to show whether you should take a position or stay out of the market. If there is reasonable doubt, stay out. Overall, you should strive to be the balanced person you are designed to be as a means to being a well-balanced trader. This means that you need to get adequate rest, obtain proper nutrition, exercise and meditate to achieve and maintain the necessary balance and sanity successful trading will demand. A cold shower about 30 minutes prior to your trading activities should also help to soothe your nerves while catalyzing blood flow to your brain for better thought process.

Plan Your Trade

If you have not yet received proper training in trading, you should not be trading at all. It has been stressed over and over again that education is foundational to successful trading. Proper training should have taught you how to plan your trades. This would include demonstrations as to how to derive your entry and exit points; how to set your limits, profit targets and stops; how to identify trends; how to get confirmations from certain indicators; how to avoid over-trading, how to set leverage; how to monitor margin, and, how to determine when and when not to trade. Once you have a solid grasp of these concepts, you are ready for your final step.

Trade Your Plan

The problem with many new traders is that they panic when something unfavorable arises during their trade. This can be avoided by having a sound trading plan prior to opening a position. If this is done, then there is no need to panic, since you have a rehearsed roadmap to guide you. Do not try to change the plan in the middle of the stream. Sometimes, of course, the unexpected does arise forcing you to think on your feet and act quickly. Again, your improvisation should not be overshadowed nor dictated by panic and irrationality. Try to determine exactly what the problem is and apply sound principles to correct it. You should try to cure the loneliness of this turmoil by simply contacting your trainer, mentor or other more experienced trader to help you out of the bind, if time allows. Generally speaking, however, you should try to stick as closely as possible to your initial trading plan for optimal results in the long run. Happy trading!

SUCCESSFUL FOREX TRADING IS BASE ON THIS EQUATION UNDERSTAND IT OR LOSE !

What moves currency prices? - Sounds an easy enough question but most currency traders have no idea and that's why 95% lose. Let's look at the equation for market movement and see how and why prices really move.
A simple equation for currency market movement is:

Supply and Demand Fundamentals + Investor Perception = Price

SIMPLE BUT ...

This equation is simple but its also deceptive - lets look at the equation in more detail.

Prices move in line with the long term fundamentals and that's why the longer term trends last for months or years because they reflect the health of the economy - the fundamentals.

The facts are there for us all to see but we all see the facts in our own way not logically or as group, but blurred by our greed, fear and opinions which we hold.

If you try and trade news stories you will lose as what may seem obvious to trade is already old news and discounted in the market price. In today's world of instant communications the facts are available in a split second at the click of a mouse.

Will Rogers once said " I only believe what I read in the papers" he was joking of course but its surprising how many people trade they see on the net TV or radio and are surprised when they lose!

If you could make money by trading the news a lot of traders would be rich and their not they lose.

It's a common investment fact that markets collapse when the fundamentals are most bullish and rally when their most bearish.

This is human psychology at work where prices have been pushed to far away from the fundamentals by the emotions of greed and fear.

You therefore need to see both sides of the equation we covered earlier.

This is where forex charts can help.

If you trade off forex charts you see the reality of price and only have to follow and act upon it. The fundamentals.

Forex technical analysis simply assumes that they will show up instantly in price action so you don't need to guess their impact - you can see it.

Investor Psychology

Forex charts also tell you how humans perceive the fundamentals as well.

All short term price spikes are due to human psychology and they don't last long and are quick and easy to spot on a forex chart.

While forex traders make mistakes about news and trading it, they also don't see the limitations of technical analysis and its strengths.

They assume that as human nature is constant, chart patterns can be predicted in advance with scientific accuracy - They can't.

If you try and predict with forex charts you will lose your equity quickly - on the other hand, if you get confirmation and trade with the odds you will win.

What is confirmation?

This means following moves AFTER they have occurred. Sure, you miss the start of the move but you can't catch that anyway, so don't try.

If you get just get a major chunk of the trend (60 - 70%) you will build big gains over the longer term. The forex markets are hard to trade but you can trade them and the rewards are massive for traders who trade them correctly.

If you use forex charts and simply follow and act on the confirmation of price changes without listening to opinions or trying to predict, then the equation we have looked at can make you a lot of money.

It sounds simple and in essence it is, but you need to get the right forex education, find the best technical tools and trade when high odds trades present themselves with confidence and discipline.

If you do the above you are well on your way to currency trading success and making big FX profits.

CURRENCY TRADING SUCCESS - LEARN THIS METHOD IN FEW HOURS AND TARGET 100% GAINS !

Currency trading for beginners can seem confusing, so here I am going to give you a system you can learn in a few hours max which can lead you to currency trading success and gains of 100% or more per annum.

I write currency articles but I am not just a writer I am a trader and have been for over 25 years.
I am not a self proclaimed expert who will tell you I win every trade I don't but I do know from experience that this method will help get the odds in your favor and lead you to currency trading success, if you understand how to use it properly.

In 25 years I have tried lots of different trading methods and the one I am outlining here is the simplest method I use and probably one of the most effective.

I call it Fundo-Tech trading and it is as it sounds - a method that focuses both on fundamentals and technical inputs and it's easy to use and apply. You see lots of advertising from vendors how you can predict currency prices with scientific accuracy, all for a few hundred bucks!

Well, the answer most of these guys are writers not traders or they wouldn't make such claims. If you want to enjoy currency trading success ignore them - trading is a game of odds not certainties and Fundo-Tech trading is simply designed to play the odds.

If you do you will make a lot of money, so let's look at this currency trading system.

The fundamentals are for defining strong currencies, the technicals are used for timing entry.

Currencies move to the long term fundamentals and that's a fact - that's why the long term trends last for months or years but the problem is:

Their hard to trade, as humans we all see the facts, but myself, you and millions of others, draw our own conclusions from what we see and we don't all see the facts in the same way.

An equation for market movement is:

Fundamentals + Human Perception = Price direction.

So it's the fundamentals that drive long term trends and humans in between move prices to far in either direction as they are influenced by greed and fear and cause prices to be overbought and oversold - these levels can be seen on price charts and allow you to time your entry.

So its pick currencies with great fundamentals and use forex charts to time entry.

Now let's take economies with strong currencies.

Currencies that rise in value tend to have good interest rate earnings, strong economies, and budget surpluses and export more than they import.

Let's take the US dollar

The American economy has a huge debt (and so are its people) and the budget deficit is huge and finally, it is a net importer of raw materials ( with oil being major one) that are rising in price.

Now let's take a strong currency:

The Canadian Dollar.

Canada is rich in commodities including oil it sells, has a huge budget surplus and has good interest rate earnings.

The Canadian dollar therefore has stronger fundamentals and should rise against the US Dollar and it has. In fact if you check out my other articles I stated this months ago and the currency has soared.

Picking the direction is easy, entering the trade with good risk reward is a different matter and is the hard part for most traders.

Let's look at how to enter correctly to get the odds in your favor this is the technical bit.

When resistance forms it simply means supply and demand are in equilibrium below the level and when prices break to a new high supply and demand are out of synch.

The key is to buy breaks of resistance on rising momentum in strong currencies - were not looking to buy lows! This is called breakout trading and it's a fact that most of the biggest moves come from new highs NOT market lows.

Forget all the buy low sell high is a great way to trade - it's not as you will miss the best moves - waiting for pullbacks that never come - when prices break they accelerate away from the breakout point quickly and the odds are in your favor, if you go with the break.

They key is to use momentum indicators to confirm the break so you know price momentum is accelerating.
Does this method sound simple?

Well it is - but that doesn't mean it doesn't make money it does and you can see it graphically in a trade such as the Canadian Dollar.

The best currency trading systems are simple as they are robust in the face of ever changing brutal market conditions and have fewer elements to break than complicated ones.

Another key to currency trading success is understanding the logic of your currency trading strategy so you can have confidence in it and this one is easy to understand and apply.

You can learn it in a few hours and you should be able to apply it in around 30 minutes a day. No intra day monitoring is needed.

So if you want a simple way to make money and enjoy currency trading success, try the above blend of fundamentals and technical's, and get on the road to bigger FX profits.

ECONOMICS DATA RELEASES - CAN YOU SUCCESSFULLY TRADE THEM ?

Economic data releases occur almost every day and can have a dramatic effect on the forex markets, and indeed all major markets. They can cause wild swings and increased volatility which is great for traders, but can you successfully profit from them as a forex trader?

Before I address that question, let me start off by talking about data releases in more detail. As a trader the first thing you should do every day is consult an economic calendar to see what releases are scheduled for the forthcoming day. This will allow you to determine when you should be out of a trade if you don't want to trade through them, or when to turn your computer on and be ready to trade if you do wish to trade them.

The best economic calendar in my opinion is at Forex Factory as this tells you not only what releases are scheduled for the day, but also the predicted and actual figures for each release, plus the importance of each one and the effect that they may have on specific currency pairs.

Different data releases affect currencies in different ways. For example, interest rate decisions and non-farm payrolls have a major impact on dollar currencies whereas other less significant data releases will hardly have an effect at all and will remain little changed.

So it's best to arm yourself with all this information and be fully prepared for any scheduled releases, but can you profit from them?

Well in my opinion I don't think you can consistently make profits trading the news as soon as it's released simply because it's extremely difficult to predict how the market will react to any given news.

For example, sometimes you will get seemingly bullish figures and expect the currency to go up, but it will do the complete opposite. Other times it will go up initially and then reverse as analysts and traders digest the news.

It really is an extremely difficult way to trade the markets, particularly for the individual trader working alone. Trying to second guess the market is a very dangerous game.

In my opinion there are far easier ways to trade the forex markets using solid technical analysis methods. You don't need to trade during those times when market-moving figures are announced because all they will do is distort any technical analysis and make it very difficult to enter a trade with confidence.

Furthermore I always believe it's best to exit trades in advance of economic data releases simply because prices can move very fast and your stop losses may not get filled at the price you requested.

I'm sure there are people who can make profits from news releases, but in my experience it's extremely difficult and akin to gambling in some instances.

LEARN CURRENCY EXCHANGE - WHY PREDICTING CURRENCIES IS DOOMED TO FAILURE

If you want to learn currency exchange properly then you need to make sure you know which way to place your trading signals and predicting will see you lose. Predicting is simply hoping or guessing and is a better way to make profits which is the subject we will cover here.

If you learn currency exchange and want to learn forex trading correctly then you need to understand the next point.

Don't predict prices act on confirmation and this will see you trade with the odds - if you don't trade with the odds you will lose.

You can't predict so don't try, simply learn to act on the truth:

The reality of price momentum.

Before we cover this in more detail, let's dispel the currency trading myth that has led to so many traders trying to predict.

Currency prices move to a scientific formula.

Theories such as Fibonacci Gann and Elliot Wave promote this myth and there are plenty of vendors spreading it and making money out of it - Fact is neither Elliot nor Gann made money with their theories nor Fibonacci theory was hijacked and was never even supposed to be applied to trading!

There is of course no scientific theory that lets you see the future.

If markets were scientific, we would all know the price in advance and their would be no market!
Common sense - however many forex traders fall for scientific theories and lose their money.

Let's take an example to help you learn currency exchange for profit the right way.

For example, on your currency trading system, you see that prices are coming to important support or resistance - but you don't just execute your trading signal.

You want proof that the level is going to hold before you enter the market to know the odds are in your favor.
You do this by looking at currency price momentum and watching for a changes in the direction you wish to trade to support your view.

This is essential in any successful forex trading system and you need to learn how to spot these momentum changes. If you can do this, then you will be trading with odds on your side and can enjoy currency trading success.

To see shifts in price momentum you need some indicators and its now time to make momentum oscillators part of your forex education.

If you are learning currency exchange for profit, then two of the best are:

The, stochastic and the Relative strength Index ( RSI).

These will help you see shifts in price momentum and help you execute your trading signal in line with these momentum changes.

If you want to learn forex trading correctly momentum indicators are simply essential. We don't have time to cover these indicators in more detail here but make sure you look them up in our other articles.

Trade The Truth

If you look at support and resistance then use momentum to confirm the move you will be trading the reality with no hoping or guessing

You may say that you miss a bit of the move i.e the first part of the change but as you can't predict when this is going to happen anyway and keep in mind if you get a good chunk of the profits say 60% that's enough to pile up big gains over the long term.

Always remember the old traders saying:

"A top or bottom picker soon becomes a cotton picker"

This saying is over half a century old and it's as true today as it ever was if you try and predict and jump the gun you're going to lose.

The major lesson when learning currency exchange and trading for profit is simply:

Currency trading is not a game of certainties - it's an odds game and you need to play the odds to win just like the successful card player.

Sure, you won't win every hand but that won't stop you building big profits over the longer term.

If you learn currency exchange with the above points in mind, you will soon be spotting opportunities for profit without hoping guessing or predicting and simply trading the truth and that's the only way to win longer term.

BECOME A PROFESSIONAL FOREX TRADER FROM HOME GRAB: 2 X CRITICAL PDFS AND MORE

A FOREX TRADING METATRADER - KEEP A SIMPLE SET AND FORGET STRATEGY

Forex trading can represent a daunting task for many traders that may have had from bad to horrible first experiences with the currency markets. As one approaches forex the most prominent motivation in our minds is to make money with our trades, this is, to become profitable forex traders. But as new traders we are susceptible of committing huge mistakes and draw false conclusion from our first approaches to this market. As you surely know by now, in order to have any profitability in this market you must have a complete

understanding of how things work with currencies and then you should be able to use a number of indicators that will help you decide what kind of trade you should use in your next move into the market.

Now, it has been always a dream for all traders, from the beginning of these kind of markets, to predict what happens next with a currency price. This means, having a system that would tell us what time and at what price to enter our trades in a mechanical way. This is, a simple set and forget system that would take the sweating and worries away from our trading sessions. There is nothing 100 percent accurate among trading systems, that's for sure, but recently the Kiss forex trading system has showed that even without perfection it can make of you a profitable trader.

What's its secret? First, a Metatrader software for auto-trading, this is set and forget; and most importantly, the two basic principles that have worked with the markets since trading was born: market timing and smart money management. With these you will be on your way to be on the money when trading forex.

FOREX TRADING - HOW TO PROFIT FROM THE FALLING DOLLAR

The dollar has recently fallen to an all time low against the euro and one of the worst scenarios for the world economy for the last few years has involved a dollar crash. Is it time to prepare for that crash now?

We must ask ourselves, what would cause a dollar crash? It would have to involve America's dependence on foreign capital it's most dangerous vulnerability. America's dependence on foreign capital has lead to its large deficits. Do the US deficits threaten its and global financial stability? So long as the US remains the most attractive foreign investment destination in the world it can sustain such large deficits. However, if some event would occur, like say a crisis in the American financial markets that would spook foreign investors and cause them to ditch the dollar fast then the dollar will tumble.

The sub-prime mortgage woes was just such a crisis and to be honest the dollar held up pretty well. In fact this events showed clearly that if private investors become frightened central banks will pick up the slack. In order to abandon the dollar there would need to be an alternative choice for foreign investment and there simply put is not.

The stability of the US politically and socially, in spite of its enormous deficit, still leave the US the world's most stable and reliable economy. Although Europe is stable politically, its slow growth make it an inadequate substitute for foreign investors. And even though China's rapid growth is inviting, the threat of political instability deters any long-term bets on its economy which in itself is still very young and needs time to mature.

My long term outlook is to buy the dollar and sell the euro.

In the long term nobody has anything to gain from the decline of the dollar and excessive volatility in exchange rates is damaging to the growth and economy of all regions of the world. Especially China who currently owns a substantial portion of the US debt. Also the euro's rise is beginning to hurt the competitiveness of Europe's exports and there is the possibility of central bank intervention to protect against the strong euro and weak dollar.

In the near future the dollar decline and further weakness most likely will continue. I am not about to stand in the way of such a strong trend as the dollar is near all time lows against the euro. But as everyone is talking about the weak dollar and my neighbors talk about hedging themselves against the weak dollar I know one of those rare opportunities is beginning to present itself just like it was obvious to me the bull market in US equities was coming to an end once my mother and her "investment club" began buying and selling stocks online or when a photographer at a wedding told me how he was going to begin flipping houses I also knew we had reached a top in real estate prices.

A worldwide "ditching of the dollar" would bear astronomical consequences. I do not believe anyone is ready to allow that to happen and I do believe there will be intervention to prevent it. Like I said though, I will not just jump in with this extremely strong trend in place so I will use my strength and talents as a technician to get into this trade.

In the member area in the Rules & Methods section you will find the methodology on how we will approach this trade. We will be trading the 4 hour, daily, and weekly time frames as this is a long term strategy. Since our positions will be short, the eur/usd will be collecting interest and pips the whole way.

ADVANTAGES OF FOREX CURRENCY EXCHANGE WITH ACM

ACM is an expert in carrying out the task of Forex currency exchange over the internet. It provides speedy services to its customers in the most efficient manner. Its success lies in its focused approach. It has attained a competitive edge in the job of providing foreign currency exchange services. You can get numerous advantages of forex currency exchange by trading with ACM. With a single account, you can avail a plethora of benefits.

ACM has advanced trader software that enables you to successfully trade in the market of foreign exchange. You can access your account via your mobile phone or through an easy to operate web browser without any hassles. In case, you have chosen to trade through browser, you don't need to spend time in downloading or installing any kind of software. It is quite a convenient affair to keep a track of the foreign exchange currency rate with the ACM system.

ACM has eliminated the problem of middleman dealing. In the traditional modes of foreign exchange trading, the brokers tend to charge a real huge amount for carrying out the works that don't even require you to spend much of time and effort. ACM has facilitated the forex currency exchange process by offering its system users with the benefit of one click direct dealing. It requires the users to click on the price that gets immediately executed. It does not consist of any kind of slippages.

The users of the ACM online forex currency exchange system do not need to send a request for quotes. The procedure is quite simple to understand and easy to apply. It serves as a great money saving option by eradicating the extra charge of commission that indeed pinches the people who trade in the forex market. The system is highly flexible and suits the hectic work schedules of the professionals and business entrepreneurs who are usually running short of time and looking for faster means of carrying out the operations.

The margin trading takes place at the rate of 1 percent if you trade in the forex market by opening an account with ACM. The risk is reduced to a large extent. The margin liquidation policy of ACM safeguards your interest by ensuring that you will never owe an amount greater than what you have in your existing account. It works in collaboration with only the topmost liquidity providers functioning from all across the world. Mini account can be opened by depositing an amount of USD 2000. ACM provides its online services round the clock.