Map The Market With Simple Median Line

General Guides for FOREX Trading Newbie

noreply@blogger.com (Unknown) — Sun, 26 Sep 2010 21:58:00 +0000

Being new to FOREX trading? Don't worry, getting started in FOREX trading is easy and you can always test your skills first in a demo account before you go 'live' with real money. To get started in FOREX trading, we have to get to know what FOREX is. For the inexperienced, FOREX trading involves buying and selling the different currencies of the world. A FOREX deal is made when one buys one currency and sells another at the same time. It is always traded in pairs, Euro/USD, CHF/USD, USD/JPY...you get 'short' in a currency every time to buy another and the profit is made when you buy-low and sell-high.

FOREX market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily and the figure is nearly 30 times larger than the total volume of equity trades in United States. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. There is no centralized location as stocks or futures markets and trades are done around the clock. Everyday FOREX trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always response to the market regardless of the local time.

Although FOREX trading involves such a big volume of trades nowadays, it is not made available for the publics until year 1998. In the past, the FOREX market was not offered to small speculators or individual traders due to the large minimum business sizes and extremely strict financial requirements. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the currency exchange market's extraordinary liquidity and strong trending nature of world's main currency exchange rates. Only until the late 90s, FOREX brokers are allowed to break huge sized inter-bank units into smaller units and offer these units to individual traders like you and me. Nowadays with the rapid growth of Internet and communications technology, FOREX trading has become one of the hottest make-money-at-home-businesses for those who wish to avoid conventional 9-5 day job.

As a fact in FOREX trading, FOREX is mainly traded in large international bank. According to Wall Street Journal Europe, 73% of the trade volume is covered by the major ten. Deutsche Bank, topping the table, had covered 17% of the total currency trades; followed by UBS in the second and Citi Group in third; taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For market participants segment, approximately half of the transactions done were strictly between dealers (i.e. Bank, or large currency dealer); others are mainly between dealer and non-financial institutions.

To start trading on FOREX, one must first learn how to read FOREX quotes. Foreign exchange quotes are always listed in pairs (e.g. USD/JPY 109.2): the first listed currency is known as the base currency with a constant value of 1 unit; while the currency listed in the second is known as counter. In our given example, USD/JPY 109.2 means a dollar of United States Dollar is equal to 109.2 Japanese Yen. In other words, the quote shows the relative value of one currency compare to the other. It means the value USD had been increased when USD/JPY quote goes up

However, a two-sided quote (e.g. EUR/USD 1.2435/1.2440) consisting of a 'bid' and 'ask' is often seen. The 'bid' price is the price at which you can sell the base currency; while the 'ask' price is where you can buy the base currency. The different of 'bid & ask' price is commonly known as 'spread'. In the example of EUR/USD 1.2435/1.2440, this means you can buy 1 Euro Dollar with 1.2440 USD or sell 1 Euro 1.2435. Currency brokers make their profit through these differences of 'bid & ask' price and this is how they manage to provide their services to individual investors without charging them commission fees.

You don't need much tools to trade in FOREX market. A computer with Internet access, a funded FOREX account with foreign currency exchange broker, and a trading system should be sufficient to get things started.

To reduce the risks of losing money, some basic charting knowledge is as well recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of exchange rate fluctuations. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. As stated by expert FOREX trader Peter Bain, charting is an essential tool in FOREX trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minute charts are used while trading in FOREX. As quoted from his informative newsletter -- "Daily chart will help you define the overall trend from a position trading point-of-view, and the hourly (one hour) chart will give you a feel for the intraday trend. The 15-minute chart is used for entry and exit - with assistance from the five-minute chart, where price is moving quickly, and you need to be closer to the action."

Being one of the technical method, FOREX charting is based on the principal 'history repeats itself'. FOREX traders who study charts predict the market future by evaluating past market performance. The time frame used for charting might differs for different traders, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the past five to ten years before getting involved in a FOREX trade. A huge variety of FOREX charts are available in the market. Some charting methods are very simple, using a few FOREX indicators to show trading direction; other charts may include up to forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and price are some of the well-known indicators in charting.

As the article is meant for FOREX rookies, you are probably one of those who are looking forward to get involved in the FOREX market. However, there is no shortcut to be success in FOREX trading. Trading in FOREX is not as simple as it seen from outside. Especially there's margin involved in FOREX trading, you might lose a lot of money in the beginning and learn your lessons in a hard way. Take all the time you need to learn this new trading skill well -- practice everything you learn with a demo account before you consider going 'live' with your own money. Seminars, eBooks, Internet, papers, as well as video courses are all your needs to get involved. I wish you good luck and good profit making in your FOREX trades.

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Is Forex A Part of Your Investment Portfolio - Should It Be?

noreply@blogger.com (Unknown) — Fri, 24 Sep 2010 23:39:00 +0000

FOREX is the abbreviation for the Foreign Exchange market. The main principle of Forex is converting one currency into another. As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market and is also the world's biggest financial market. In many investment portfolios, you will find FOREX more and more since the currency exchange realm has opened up to the small investor. In its simplest form, Forex is transaction of monetary funds from one government to another or business associates of different countries. There are substantial earnings to be made in the foreign currency market, but trading in the Forex is for the well-informed. In addition, forecasting Forex is not easy, as Forex is a fast moving market where several changes occur in the fraction of seconds.

Trading Forex works remarkably easy and is convenient since the currency exchange market is open 24 hours a day 7 days a week, providing plenty of trading opportunities. You can get started trading the (spot) FOREX with little money and there are many brokers on the internet that will allow you to make paper practice trades for up to 30 days, free of charge, to see if Forex is for you. They have guides that show techniques for day trading as well as mid-term Forex trading (one to seven days). Trading currency with tighter spreads can improve your trading profits, and you can see for yourself how taking short-term trading positions can be exciting. Low spreads and high volatility is a very popular way of trading on Forex, and is known as day trading.

The foreign exchange (currency or Forex or FX) market exists wherever one currency is traded for another. Trading Foreign Exchange currency in the global Forex trading system market can make you money. Very often currency pairs are closely related to one another - and this is something that can be used to the Forex Traders advantage. There are Consumer Alerts, however, and you should beware of Foreign Currency Trading Frauds. You should educate yourself first in all areas relating to currency trading. It's a great way to get comfortable with a currency trading system and to develop a successful Forex trading strategy. Use the currency forecasts to set profit points and maximize your return. You can make significant earnings in the foreign currency market, but trading in the Forex is for the well-informed and you should take advantage of advice from a reputable broker.

A broker is any person or firm that charges a fee in exchange for executing trades for a trader. When it is time to find a broker, there are several factors to consider. Assuming you are dealing with a reputable broker, there are still risks to FOREX trading. But inexperience is not the only broker reason to consider using a Forex broker to trade in the high risk international currencies market. Most traders find that it is necessary to utilize a broker when making transactions on the FOREX exchange and this has created a market demand for an online Forex broker, Forex dealers and a currency exchange service. As an example, your Forex currency broker is able to purchase $100,000 with only a deposit of $1,000, as the rest of the amount is leveraged to you by your Forex broker. With this type of account, your broker/dealer basically trades your money on the Forex market for you, and will always show the highest bid and the lowest offer.

In simplest terms Forex can be as simple as you would want it to be. Managed Forex is an area of Forex trading that's continuing to grow. FOREX is a somewhat unique market for a number of reasons... Forex is maximum liquidity; FOREX is real trade, in term of business. Basically, Forex is transaction of monetary funds from one government to another or business associates of different countries. For the astute investor, Forex is better than the stock market and every other money-making opportunity. Since Forex is entirely electronic and the liquidity and size is so much larger, it tends to be easier and more efficient to do a Forex transaction.

Gust A. Lenglet is an accomplished author and financial advisor and has written many articles in the fields of investments and education, as well as taxation. He is President and CEO of HBS Financial Group, Ltd. and offers online tax filing as well as timely advice on tax planning and investments.

Forex Trading System - What to Know

noreply@blogger.com (Unknown) — Thu, 23 Sep 2010 19:54:00 +0000

FOREX is a virtual network of currency dealers connected among themselves by means of telecommunications. FOREX currency dealers are connected to leading world financial centres, and round the clock workers. Forex is a true 24-hour market, open continuously from 5:00pm ET on Sunday to 5:00 pm on Friday. With three distinct trading sessions in the US, Europe and Asia, you can trade on your own schedule and immediately respond to breaking financial news, whether it will be morning, noon or night. Forex is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date.

Forex currency trading is conducted around the clock, 5 days a week, and daily currency trades are worth in the region of $1.9 trillion US dollars. This means that the Forex the largest market in the world and puts the major stock markets very firmly into second place. Forex trading opportunities are a reality for more and more people everyday -- people just like you and me.

FOREX is a very unique market because it is not based in any particular place, and it also has very few qualifications for investing. FOREX is also free of external controls, and the investors (participants in the market) largely determine how much a currency is worth based on demand. Forex is a 24-hour market, so 24-hour support is a must! Can you contact the firm by phone, email, chat, etc. Forex is not affected by any one bear market. Forex traders buy and sell foreign currency pairs from around the world, simultaneously buying one and selling the other.

It isn't sincerely complicated. However, there are stuff that you expect to ponder in order to victoryfully make some profit out of this very liquid monetary push. Forex is giving you a 40% return on your investment. Forex is by far the most liquid market in the world . There is NEVER a problem buying or selling a position as in the stock market.

Forex trading system is not just a big deal: it is the biggest deal . The largest amounts of money traded in the world today are not for goods, or services; not for stocks or shares, but for currency. Forex is a very risky and unpredictable business. You can lose large sums of money by taking the risk of trading in the live market. Forex is a market were participant cannot indulge in any kind of malpractices. Any single participants cannot influence the activity of Forex market.

Technical analysts in the FOREX market evaluate price trends. The only real difference between Technical Analysis in FOREX and Technical Analysis in equity markets is the time frame: FOREX markets are open around the clock,24 hours a day. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price.

Forex is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. Forex is made up of 5000 trading institutions like international banks, commercial companies, government banks and brokers for all types of foreign currency exchange. Forex is probably the only market that remains open 24 hours a day! Therefore, if you are actively involved in trading then this is the perfect playing ground for you.

It is a type of trading that allows you to buy and sell currency from one country to the next. This market is actually one of the largest in the world. Forex is maximum liquidity, FOREX is real trade , in term of business. Basically, Forex is transaction of monetary funds from one government to another or business associates of different countries.

FOREX is a more objective market, because if some of its participants would like to change prices, for some manipulative purpose, they would have to operate with tens of billions dollars. That is why any influence by a single participant in the market is practically out of the question. Forex is a fascinating industry with roughly 3 trillion dollars being exchanged each day around the world. Forex trading is exciting yes, but it is crucial that you become knowledgeable about Forex trading, or you will lose your money. Forex is made up of 5000 trading institutions like international banks, commercial companies, government banks and brokers for all types of foreign currency exchange.

Forex trading is a trading 'method' also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. Forex is a relative new market. The Forex market is developing fast, yet it already is the largest financial market in the world. Forex is the one stabilizing factor in the world's system of monetary exchange, yet it is not answerable to any extrinsic stabilizing influence. There are "no restrictions" in this market.

Forex is quoted on a "bid" and "offer" price system. This means you can buy a currency from a dealer for their "offer" price. Forex market is definitely not a game for newbie and you need to brush up your skills before getting your hands wet. Forex trading is a high-risk investment and as such, it can lead to substantial losses and is not meant for every investor. Risk capital is the amount of capital that you dedicate to speculative investments and that you can afford to lose.

Alexis Kenne wrote this article. If you liked it, there's more where that came from! Visit http://reviewsgoldmine.com/topic/best-forex-trading-systems

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A Beginner Forex Trading Education - How to Get the Best Beginner Education In Forex Trading

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:47:00 +0000

How to get the best beginner education in Forex is a question Forex beginners consistently ask. Forex trading can be an extremely daunting task. This article will discuss how to get the best beginner education in Forex trading including special Forex tips used by the professionals plus how you the best beginner education in Forex Trading could be learnt in the comfort and privacy of your own home. Keep reading to get access to a Forex demo account of $100,000.00.

Beginner Forex traders frequently become confused and often disheartened when they get started in Forex currency trading. However, there are some very simple Forex tips that will help you on your path to becoming a successful Forex trader.

One of the most important Forex decisions you will ever make is choosing the right Forex broker. There is a lot of competition between Forex brokers and their service is as varied as are their prices. Here are a few tips to follow when deciding on which Forex broker to use. It is a must that the Forex broker that you choose is registered with the Commodity Futures Trading Commission. If they aren't, and make excuses for why they aren't, look elsewhere. There is absolutely no excuse for a Forex broker not being registered with the CFTC. 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. If they have some sort of ties to a financial institution like a bank that is even more preferable.

Another important part of your beginner education in Forex Trading is having access to the best and most up to date research tools with real time quotes, charts and reports. Be sure to choose a Forex broker that makes it easy as possible for you to successfully trade as a Forex broker, and also has access to the best and most up to date Forex information at his fingertips. You should also try and choose a Forex broker that has a reasonable spread which is the difference between a Forex buying price and selling price.

It goes without saying that a [http://www.best-forex-trading-system-course.com/]> beginner education in Forex trading can be costly. Your beginner education in Forex trading is not something that you should skimp on. There are many other ways of cutting costs as a Forex trader but your beginner education in Forex trading will create a solid foundation for you and your Forex trading business. As with many things, you get what you pay for. While there are some Forex trading courses that cost thousands of dollars, it's possible, with a little research, to find some fantastic, reputable Forex trading system courses for just a few hundreds of dollars. I suggest that you start with that introduction to beginner education in Forex trading while you are getting your feet wet. Of course, your beginner education in Forex trading may be tax deductible so be sure to check that out with your accountant and keep all your receipts.

A beginner education in Forex trading should not put your money at risk. The best beginner education in Forex trading would simple involve study, practice, trading. It's daunting starting out as a beginner Forex trader so it's best to start out with a demo Forex account. A demo Forex account has a pretend balance that permits the beginner Forex trader practicing the methods learnt and perfecting them, and building your Forex trading confidence, without taking any risks with your own money. This is the ultimate beginner education in Forex trading. You will have plenty of time to gain the Forex experience and confidence you need to make informed decisions and learning how to make lightning-fast Forex trades when you go out into the Forex market on your own.

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Forex Secrets - Delusion Number 2 - Who Prompts Forex Quotation to Traders?

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:45:00 +0000

The delusion conceptually propounds that traders operate at a spontaneous FOREX market (as stipulated by B. Williams, A. Elder, E. Nayman, etc.). But it is not the case. Traders do their job inside a well-organized and controlled currency exchange market, governed by the Consortium of the world's largest banks.

Hence, who is pushing the currencies up and down, who defines trends, corrective actions and flats?

And, who, ultimately, places a trend at a point, where the majority of traders are happy to think they have saddled the wave and are about to win an enormous profit! Now! Not to be scared! Not to close the position! Not to be satisfied with a minor profit! Later on we will discuss that sort of stupidity. Thus, one persists to continue long in spite of more and more degrading profit. Shortly, the loss starts growing with light velocity! Are you familiar with the situation?

Well, who has reversed the rate?

And who generally tugs currency rates?

Tugging is surely centralized. Compare on-line quotes of several Dealers or banks to find out that they are per second coincident. Do each bank's traders act in such synchronism, that even not seeing each other, they place identical orders so that quotation is in 100% agreement? NOTHING IS A MIRACLE HERE!

But prior to further explanation, we will listen to Bill Williams, the FOREX scholar (Trading Chaos, Ch. 6): "...let us trace a trend formation process. Earlier, the market and the market trading venue did constitute a single physical space. Majority of large grain traders were concentrated on the "floor". Their orders involved amounts, sufficient to move the market; they enjoyed better control over the market than at present. During the latest 20 years markets have grown worldwide. Now, not only "Purina Ralstone", "Kellog" and other prominent commercial associations seek hedging their cash assets transactions. So do millions of the world's minor profiteers and farmers, competing with them in anticipation of perspective grain price fluctuations? This fact also implies strong potential for traders with nowadays, trends not being constructed on the floor. The latter mainly ensures the market liquidity by way of tackling "outer orders".

The fact, that today's trends are formed rather "outside the floor" than "on the floor", as before, enables one to trace further market tendencies with trade volume being the key thereto. Our only on-line information is restricted to tick volume, time and price. Tick volume constitutes a number of price changes per a certain time period. It is not at all a number of traded contracts. Multiple researches revealed no significant difference between actual and tick volume. Using a tick volume, we may suppose, that it represents actual volume. It is a real-time volume, thus being our key to what's going on in "trading pits".

Two basic elements are organic to FOREX trading: brokers on the floor and remote traders. Local brokers constitute staff, executing orders, thus earning their salaries and/or commissions. They don't possess money to be at their disposal. They are order executors. Their prospects are not burdened by prices, they getting for the orders management.

Remote traders use their own money. They have to pay the price out of their own pockets, unless they are getting a good one. Traders have to be much superior in skill to brokers since they independently take their own decisions, while the broker's job is to follow the others' orders.

Remote traders are supposed to support the market by way of taking its opposite side. As a rule, they are not at all crazy about any long-term transactions. Quite a few remote traders have been participants to our private training programs, and it is to be admitted that a 10-minute long transaction may seem quite a long-term one for some of them.

Think back to the fact that trends are built up of orders, delivered to the floor from outside, but not of long-term positions entered by remote traders. Since the traders' job is to take the side opposite to the orders arriving from outside, they have no prospects of trading in between themselves. They follow your money. We are emphasizing again, that tick volume is our key to understanding what's going on in the Forex Market. Remote traders do not contribute any significant volume to trading, which might result from dealing with similar traders on the floor. Trends emerge from incoming orders. That is why we are to be certain about when and in what amount the outer order is supplied to the floor. It is presented via a tick volume change".

So, we, traders, turn out to be price locomotives, don't we? And brokers on the floor just allocate and execute order, incoming from us, don't they? And on April, 1, 2005 they all (meaning: we all) together decided to swivel the trend and to stay short against all the rules, news and common sense... I wonder if the scholar ashamed or not?

As regards the above quotation, I have chanced to hear a single argument in favor of Bill Williams (I guess you understood for what sake I've cited it in detail): it all pertains to the futures markets; we neither read nor use the above at Forex. Strange enough, these are the arguments of Williams's advocates, but not of Williams himself.

This book is actually intended for both: futures markets and Forex Market. That's why pictures taken from both the markets are so mixed up and the author never differentiates between the Technical Analysis methods thereof. Thus, either the author does not trace any difference between the two markets, or he is not eager to reveal it to the reader.

And neither in the foreword, nor in the remarks did Williams and his publishers refer to the fact that something of "Trading Chaos" is inapplicable to FOREX, and thus should not be made use of by a trader at FOREX.

I have repeatedly come through this peculiarity of Williams (correct specific case method definition being extended to a wider coordinates scale) and it actually induced me to write this book. In all and all, the methods and advice, absolutely true and correct for a PART of Forex Market are claimed by Williams to be universal for the WHOLE of Forex Market without being demonstrated where the above is effective and where it isn't.

The same is being done by Williams's opponents and advocates, who visualize the portion of Forex where his methods are operable only. As different from analysts and Williams's bibliographers, TRADERS require much stronger to realize a demarcation with pro-Williams trading to the one side thereof and with counter-Williams trading to the other one.

Logically there comes a question: what might be added to Williams's indicators in order to turn them effective at the point where they are presently ineffective (see details in chapter on the Williams Alligator).

And now we are getting back to the issue of who supplies traders with FOREX rates quotation, bearing in mind that it's us, traders, who exercise rates movement in accordance with Williams's standpoint. Millions of traders have actually been studying FOREX by virtue of the "Trading House" and it is really worth studying. This is one of the most interesting and instructive editions whose repeated reading each time brings about something new and useful.

However, in some passages it smells being custom tailored. Is Williams ignorant of the fact that there is no single FOREX exchange and there's no single trading venue or floor? And that Pacific, Asian, European and American session classification is arbitrary?

Did You see currency rates move, while there's a day off in the USA with the banks closed? So did I. So, who has made up his mind in the USA to trade on the floor on a day off?

Then, who prompts rates, who formulates trends and turns them with no objective reason for the rate to swivel and to rush in a direction, not being requisite at all?

Here is the answer, as provided by No. 11, 2002 "FOREX Profiteer" magazine's article by Nadezhda Larina "Electronic Broker Systems at FOREX market", reading: "... an FOREX dealing "Electronic Broking Service (EBS)" enjoys wide popularity with the extra-exchange inter-bank FOREX market. It has been developed by the Consortium of largest FOREX trading participant banks in association with "Quotron" informatics expert company and launched in 1993. Presently EBS incorporates 13 world's largest market-maker banks, viz,: BN AMRO Bank, Bank of America, Barclays Capital, Citibank, Commerzbank, Credit Suisse First Boston, HSBC Bank PLC, J.P. Morgan Chase and Co.Lehman Brothers, Royal Bank of Scotland, S-E Banken, UBS AG along with Japanese Minex Corp., established by a Consortium of Japanese Banks in a joint manner with KDD Japanese telecommunications company and Dow Jones Telerate.

EBS offers a completely integrated range of dealing services for the professional inter-bank market, being a leading anonymous inter-bank FOREX trading electronic dealer. It is currently used by over 2500 dealers in 850 world banks and yields a trade turnover of about USD80 billion daily.

See there also: "Three greatest FOREX dealers - Citibank, J.P. Morgan Chase and Deutsche Bank, together with Reuters Group PLC) have started Atriax system in June, 2001.The latter terminated the operations in spring, 2002 after having failed to stand the competition.

Can you imagine a monster machine, capable of forcing three world's largest banks - Citibank, J.P. Morgan Chase and Deutsche Bank to abandon their business plans! Or capable of reversing the EURUSD from 1.3660 to 1.1865 and thus instantaneously executing orders of all the world's traders, going and standing short! And thus within, April-June, 2005, buying the EUR from traders at USD1.36, 1.29, 1.20, 1.19, etc.

Do you see the loss? Watching the EUR slip 1700 pts after having bought it at 1.36... But, possibly, there is no loss at all?

All of Larina's basic provisions have actually found confirmation 2 years later in the UK "Financial Times" article by Jennifer Hughes: "A PC occupying trading floor" (see it on Financial Times 2004).

It underlines that during the precedent 2 years the Consortiums turnover has grown by extra daily USD20 billion thus currently stretching to USD100 billion, whereas the most prominent internet-based trading platforms ensure the average of USD15-20 billion daily turnover.

So, let's jump to some conclusions:

1. The FOREX market is not the same as it used to be earlier, say 11 years ago.

2. There is in fact "a price fluctuation relative uniformity", otherwise, practical quotations similarity with all the world's brokers and traders.

3. The reason for the above uniformity has been honestly disclosed from technological standpoint, being the "flourish of electronic exchange technologies".

4. There is no mention of other reasons for similar rates at absolutely different FOREX trading platforms the world over what links together the above platform and FOREX rates at them from financial, organizational, contractual viewpoints, etc).

5. The great interest is the remark from "Financial Times" reiterating the changes at FOREX during the latest years as narrated by an anonymous ex-dealer (?) who compares the FOREX market as of those 11 years ago: "It used to be a hell noisy and a hell splendid!"

In his opinion the market has lost a significant portion of its individuality with rise of technology. A very interesting phrase: "It used to be a hell splendid". I would add:" It used to be a hell volatile", with reference to the fact that the daily rates travel went as far 400 to 500 pips. And there's nothing of the kind now.

6. Now, why has "The Financial Times" only interviewed the EBS Consortium official?

J. Jeffrey and the currency transactions department director, Fabian Shey Why wasn't it desirous to interview the Reuters representatives (UK)? What's the reason for such kind of disrespect to the compatriots?

Or were they hard to be contacted in London, where The Financial Times and Reuters HQs are located, moreover after maintaining that presently both, EBS Consortium and Reuters are dominant at the inter-bank market? Or The Financial Times possesses enough information on compatriots from Reuters to hold that the EBS Consortium official's interview is sufficient without any Reuters?

7. Please, pay attention to the following from The Financial Times: "Anyway, other opinions are available. According to Justin Trenner, the current volume of on-line trading is turnover amounts to USD100 billion daily with the steep growth observed". The Financial Times thus turns out to recognize its complete inability to trace not only FOREX cash flows, but even the trading volumes at those platforms.

The principal difference between stocks and FOREX is, by the way, readily apparent from the above. Those, writing about similar Fundamental and Technical Analysis methods for both the markets, are either ignorant as to fundamental difference of these markets, or they are deliberately swindling millions of traders.

When pointing out, that, besides the above Banks Consortium, there exist other electronic dealing facilities (e.g. Electronic Broker Service, Reuters Dealing 2000-2, etc.), N. Larina has overlooked their interrelations aspect. And there are a lot of questions: how and why there is coincidence of trends, corrections, historical highs and lows in the course of a single day, etc.

And what is the way to reconcile the statement on shunt operation of EBS and Reuters Dealing facilities with the information that Citibank, J.P. Morgan Chase and Deutsche Bank together with Reuters Group Plc have failed to stand the competition? Is it attributable to the fact that the Consortium has actually acquired Reuters, maintaining its formal sovereignty in order to support traders' opinion that FOREX market is free and independent? If affirmative, then it's fairly clear why the Consortium was not scared to buy the EUR on its dip from 1.36 to 1.1860, since there nothing to be afraid of with one's knowledge of the point, below which one will not drop the rate as well as the point to stage the EUR rally to in several months with no one to interfere with Your so doing.

Hopefully, it's now understandable who swivels trends at FOREX! The world's largest banks Consortium does have power to reverse rates, whenever desirous, overthrowing fundamental laws, news releases, trends and common sense, just the way we witnessed on 01.04.2005 charts. But it's not at all, traders, as claimed by Williams.

That's why there is obvious ineffectiveness of the Williams's Market Facilitation Index (MFI) based on fluctuations of traded volumes; to be more precise, sometimes the indicator tells the truth, whereas sometimes it lies in a barefaced manner.

The reasons are stated above: the banks Consortium pushes rates to where it needs, but not to where traders going into deals, thus accumulating the volumes, indicated on the screen. That's why traders turn losers when making use of the Williams's MFI indicator.

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1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.

2. Technical analyses in Trading System MasterForex-V.

3. Entry and Exit Points at Forex Market

Masterforex-V Trading Academy

Forex Overview

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:44:00 +0000

Each day, millions of trades are made in a currency exchange market called Forex. The word "Forex" directly stems off of the beginning of two words - "foreign" and "exchange". Unlike other trading systems such as the stock market, Forex does not involve the trading of any goods, physical or representative. Instead, Forex operates through buying, selling, and trading between the currencies of various economies from around the world. Because the Forex market is truly a global trading system, trades are made 24 hours a day, five days a week. In addition, Forex is not bound by any one control agency, which means that Forex is the only true free market economic trading system available today. By leaving the exchange rates out of any one group's hands, it is much more difficult to even attempt to manipulate or corner the currency market. With all of the advantages associated with the Forex system, and the global range of participation, the Forex market is the largest market in the entire world. Anywhere between 1 trillion and 1.5 trillion equivalent United States dollars are traded on the Forex market each and every day.

Forex operates mainly on the concept of "free-floating" currencies; this can be explained best as currencies that are not backed by specific materials such as gold or silver. Prior to 1971, a market such as Forex would not work because of the international "Bretton Woods" agreement. This agreement stipulated that all involved economies would strive to hold the value of their currencies close to the value of the US dollar, which in turn was held to the value of gold. In 1971, the Bretton Woods agreement was abandoned. The United States had run a huge deficit during the Vietnam Conflict, and began printing out more paper currency than they could back with gold, resulting in a relatively high level of inflation. By 1976, every major currency worldwide had left the system established under the Bretton Woods agreement, and had changed into a free-floating system of currency. This free-floating system meant that each country's currency could have vastly different values that fluctuated based on how the country's economy was faring at that time.

Because each currency fluctuates independently, it is possible to make a profit from the changes in currency value. For example, 1 Euro used to be worth about 0.86 US dollars. Shortly thereafter, 1 Euro was worth about 1.08 US dollars. Those who bought Euros at 86 cents and sold them at 1.08 US dollars were able to make 22 cents profit off of each Euro - this could equate to hundreds of millions in profits for those who were deeply rooted in the Euro. Everything in the Forex market is hanging on the exchange rate of various currencies. Sadly, very few people realize that the exchange rates they see on the news and read about in the newspapers each day could possibly be able to work towards profits on their behalf, even if they were just to make a small investment.

The Euro and the US dollar are probably the two most well-known currencies that are used in the Forex market, and therefore they are two of the most widely traded in the Forex market. In addition to the two "kings of currency", there are a few other currencies that have fairly strong reputation for Forex trading. The Australian Dollar, the Japanese Yen, the Canadian Dollar, and the New Zealand Dollar are all staple currencies used by established Forex traders. However, it is important to note that on most Forex services, you won't see the full name of a currency written out. Each currency has it's own symbol, just as companies involved in the stock market have their own symbol based off of the name of their company. Some of the important currency symbols to know are:

USD - United States Dollar

EUR - The Euro

CAD - The Canadian Dollar

AUD - The Australian Dollar

JPY - The Japanese Yen

NZD - The New Zealand Dollar

Although the symbols may be confusing at first, you'll get used to them after a while. Remember that each currency's symbol is logically formed from the name of the currency, usually in some form of acronym. With a little practice, you'll be able to determine most currency codes without even having to look them up.

Some of the richest people in the world have Forex as a large part of their investment portfolio. Warren Buffet, the world's richest man, has over $20 Billion invested in various currencies on the Forex market. His revenue portfolio usually includes well over one-hundred million dollars in profit from Forex trades each quartile. George Soros is another big name in the field of currency trading - it is believed that he made over $1 billion in profit from a single day of trading in 1992! Although those types of trades are very rare, he was still able to amass over $7 Billion from three decades of trading on the Forex market. The strategy of George Soros also goes to show that you don't have to be too risky to make profits on Forex - his conservative strategy involves withdrawing large portions of his profits from the market, even when the trend of his various investments seems to still be correlating upward.

Thankfully, you don't have to invest millions of dollars to make a profit on Forex. Many people have recorded their success with initial investments of anywhere from $10,000 to as little as $100 for an initial investment. This wide range of economic requirements makes Forex an attractive venue for trading among all classes, from those well entrenched in the lower rungs of the middle class, all the way up to the richest people alive on the planet. For those on the lower end of the spectrum, access to the Forex market is a fairly recent innovation. Within the past decades, various companies began offering a system that is friendlier to the average person, allowing the smaller initial investments and greater flexibility that is seen in the market today. Now, no matter what economic position you are in, you can get started. Although it's possible to jump right in and start investing, it's best that you make sure you have a better understanding of the ins and outs of Forex trading before you get started.

The world of Forex is one that can be both profitable and exciting, but in order to make Forex work for you it is important that you know how the system works. Like most lucrative activities, to become a Forex pro you need a lot of practice. There are many websites that offer exactly this, the simulated practice of Foreign Exchange.

The services provided by online practice sites differ from site to site, so it is always a good idea to make sure you know all of the details of the site you are about to use. For example, there are several online brokers who will offer a practice account for a period of several weeks, then terminate it and start you on a live account, which means you may end up using your own money before you are ready to. It's always a good idea to find a site that offers an unlimited practice account. Having a practice account allows you to learn the ways of the trade with no risk at all.

Continuing to use the practice account while you use a live account is also a beneficial tool for even the most seasoned Forex traders. The use of a no risk practice account enables you to try out new trading strategies and tread into unknown waters. If the strategy works, you know that you can now implement that strategy into your real account. If the strategy fails, you know to refrain from the use of that strategy without the loss of any actual money.

Of course, simply using a no risk account won't get you anywhere. In order to make money with Forex, you need to put your own money in. Obviously, it would be ridiculous to travel to other countries to purchase and sell different currencies, so there are many websites that you can use to digitally trade your money. Almost all online brokerage systems have different features to offer you so you have to do the research to find out which site you wish to create an account with.

All brokers will require specific information of you to create your account. The information they will need from you includes information required to communicate with you, including your name, mailing address, telephone number, e-mail address. They also require information needed to identify who you are, including your Social Security number, Passport number or Tax Identification number. It is required by law that they have this information, so they can prevent fraudulent trading. They may also collect various personal information when you open an account, including gender, birth date, occupation, and employment status.

Now that you have practiced trading currency and set up your live account, it is time to truly enter this profitable yet risky world. To make money with Forex, you do need to have money to begin with. It is possible to trade with very small amounts of money, but this will also lead to very small profits. As is with many other exchange systems, high payouts will only come with high risks. You can't expect to start getting millions as soon as you put money in to the market, but you can't expect to make any money at all if you don't put in at least a 3-digit value.

As most Forex brokers will warn you, you can loose money in the foreign exchange market, so don't put your life savings into any one trade. Always trade with money that you'd be able to survive without. This will ensure that if you get a bad trade and loose a lot of money, you wont end up on the streets, and you'll be able to make a comeback in the future.

So how does trading currency work? Logically, trades always come in pairs. For example, a common trade would be the United States Dollar to the Japanese Yen. This is expressed as USD/JPY. The way to quote a trade is kind of tricky, but with practice it becomes as natural as reading your native language. In a Forex quote, the first currency in the list (IE: USD in USD/JPY) is the base currency, and in the quote the base is always one. This means if (hypothetically of course) One USD was worth Two JPY, that the quote would be expressed as 1/2.

When trading in Forex, we use pips. Pip is an acronym for "percentage in point". A pip a certain decimal place in a number compared to the same decimal place in another number. Using pips, we track the gains and losses of a currencies value compared to another's. Let's take a look at an example. Say a value is written as 1.0001/1.0004. This would indicate a 3-pip spread, because of the 3 number difference in the fourth decimal place. Almost all currency pairs go to the fourth decimal place. The only currency pair that doesn't is that of the USD/JPY, and it goes to the second decimal place. For example, a USD/JPY quote with a 3-point spread would look like this: 1.01/1.04.

A very common aspect to the foreign exchange is leverage. Leverage trading, also known as trading on margin, is a way to amplify the amount of money you are making. When you use leverage trading, you borrow a certain amount of money from your broker and use that to make your transaction. This allows you to trade with more money then you are actually spending, meaning you can make higher profits than you would normally be able to make.

There are risks associated with leverage trading. If you increase the amount of money you are using, if a trade goes bad, then you'll loose more money than you'd usually loose. The risks are worth it though, because a big win on margin means a huge payout. As mentioned before, it is definitely a wise idea to try out leverage trading on your practice account before you use it excessively on your live account, so you can get a feel for the way it works.

Now that you're an expert on the way Forex trading works there are some things about foreign exchange that you should know. Forex is just like the stock market in that there are many benefits and risks, but if you are going to invest your time and personal money into this system, you should be fully aware of all of the factors that may change your decision to invest in the currency market.

Generally speaking, Forex is a difficult subject to opinionate on, because of the different factors that may alter the currency over the years. "Supply and demand" is a major issue affecting the Forex organization, because the world is in constant variable to change, one significant product being oil. Usually the currency of all the nations around the globe is described as a huge "melting pot", because of the fact that all of the interchanging controversy, political affairs, national disputes, and possibly war conflicts, all mixed together as a whole, altering the nature of Forex every second! Although problems such as supply and demand, and the whole "melting pot" issue, there are a numerous amount of pros to Forex; one being benefited profit from long term stock. Because of the positive aspects of Forex, the percentage of the use of electronic trading in the FX market (shortened from Foreign Exchange) increased by 7% from 2005 to 2008. Despite the controversial realm of Forex, it is still recognized today by many, and is still popular amongst many of the nations in the world.

Of all the organizations that recognize Forex, most of them practice fiscal policy, and monetary policy. Both policies are dependent on the nation's outlook on economics, and their standards set. The government's budget deficits, or surpluses against the country, is widely affected by the country's economic status of trade, and may critically inflict the nation's currency. Another factor for the nation's deficit spending is what the nation already has, in terms of necessities for the citizens, and the society. The more the country already has, prior to trade, the greater the budget for other demands from the people, such as technology, innovations in existing products, etc. Although a country may have an abundance in necessities, greed may hinder the nation's economic status, by changing government official's wants, to want "unnecessary" products, therefore ruining or "wasting" the country's money. This negative trend may lead to the country's doom, and hurt the Forex's reputation for positive change. There are some countries which hold more of a product (such as oil stated above), the Middle East dominating that sector in the circle of trade; Since the Middle East suffers much poverty, as a result of deficit spending, and lack of other resources, they demand for a higher price in oil, to maintain their economic status. This process is known as the "flights to quality", and is practiced by many countries, wanting to survive in the trading network that exists today. Interest rate, and leveraged financing, is due to the inflations that occur in many parts of the world from one point to another. Inflations wear down purchasing abilities, causing the currency to fall with it. In some cases, a country may observe the trends that it takes, and beforehand, take action to avoid any mishaps that had been experienced before. Sometimes, the country will buy more of a product, or sell more of a product, otherwise known as "overbought" or "oversold". This may aid in the country's future, or devastatingly hurt the country, because of lack of thought, as a result of fraud logic.

"What started out as a market for professionals is now attracting traders from all over the world and of all experience levels" is part of a letter of the chairman of Forex, and it is completely true. There is even a 30-day trial for Forex online at http://www.forex.com/forex_demo_account.html if anyone interested in Forex wants to learn more about the company. Although affected by leveraged financing, interest rate, and causing an increase or decrease in exchange rate risks, Forex can be a great way for quick profits and integrated economy for the country. In investing in stocks that are most likely to be successful for a long period of time, and researching these companies for more reference and background that you need to know, Forex can aid in these fields. In the Forex market of different levels of access, the inter-bank market composed of the largest investment bank firm, which contains "spreads", which are divided into bid, and ask prices. Large amounts of transactions, with large amounts traded, and requesting a small amount of difference is known as a better spread, which is preferred by many investors.

In comparison to the Stock Market, the Forex organization is just as stable, and safe, if the users on it are aware, and decently knowledgeable about the topic. The Stock Market Crash in 1929 was a result of lack of thinking, because of the extremely cheap shares, replacing the shares originally costing thousands of dollars. When the Stock Market crashed, and the New Deal was proposed by Franklin D. Roosevelt, leveraged finance was present, and utilized to stabilize the economy at the time. The United States was extremely wealthy and prosperous in the 20s (prior to the depression), and had not realized what could happen as a result of carelessness in spending. This is a result of deficit spending, and how it could damage a society, in less than a decade! When joining Forex, keep in mind that with the possible positive outcomes, and negative ones, there are obstacles that must be faced to become successful.

As a result of many catastrophic events, such as the Great Depression that occurred in the United States, people investing in the Forex organization keep in mind of the dangers, and rewards that may come upon them in a certain point in time. With more work and consideration outputted by a person, or organization in the Forex program will there be more signs of prosperity as a result. In relation to individuals such as Warren Buffet and George Soros, they have become successful through experience, and determination through many programs, and research, for security purposes. Reserving some of the most riches people in the world, to others that are just test driving it to discover its potential for them, Forex is a broad topic that experiences different people everyday. Forex may not help everyone that invests in it, but if enough outputted effort is amplified in attempts to better the economy, it is most definitely something that any person should experience first-hand.

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Forex Guide: Things That Every Beginner Traders Should Know Before They Start Trading in Forex

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:41:00 +0000

It's a fact that forex trading became a highly preferable investment method in the last decade. Combined with the internet as a global 24/7 network forex is reachable to everyone. I'll not give you about the basic explanation of forex trading in this article. I'm sure that i don't have to tell what forex trading is. People which familiar or have an interest in an investment know forex already. Don't they?

Forex trading is basically just an investment

As any other investment, there are always benefits and risks beyond forex trading. Many people/organization, especially forex brokers, its affiliate and those who earn their income by providing some forex related services says that forex trading have so much advantages compared to other investments; Forex is easy, with its non-stop 24 hours market, its wide range adjustable leverage, its automated trading platform, its offered better opportunity for income resource, and many more -- you name it as much as you want to...

Blinded by its 'beautiful dream imagination', many small/personal traders, especially for the new ones forgot that forex trading is basically still an investment program. Traders should never have a thought that forex trading is an income resource.

Common Beginner Traders Scenario

Beginner forex traders are usually follow the trend of forex trading without preparing and providing them self with an adequate understanding about what's inside forex trading. Their common scenarios are:

1. Know about forex trading

2. Have an interest in forex trading

3. Looking for an easy and profitable forex services

(Usually by looking for some services with less margin, high leverage, automated trading platform, and less risk? - which is too good to be true)

4. Start gambling with their trades

5. Unable to achieve profits as what their imagination

6. Repeating scenarios 3, 4 and 5

7. Repeating scenarios 3, 4 and 5 again... and again...

8. Realizing that they are loosing too much or that their imagination along these days/weeks/months is wrong (i doubt that it would reach years)

9. Give up and quit their trading for good.

Where did they do wrong in above scenario? Is that wrong to always searching for a better service to back up our trade? In my point of view, there are no mistakes in that scenario at all. But it's just incomplete, and that's the most dangerous mistakes made by most beginner traders.

How to Overcome Traders Mistakes and Begin to Make Some Profits in Forex

The facts are, there are just 5% of forex traders which successes with their trading. To become as they are, we should insert step 2.5 in scenario above. This step will simplify above scenarios by eliminating the fourth and eighth and changing ninth step became TRADERS GOAL ACHIEVED.

2.5 Preparing yourself with a solid basic knowledge of forex trading

- Know about the fundamental of forex trading

- Learn about what and how forex market really is

- Train yourself to getting familiar with the technical analysis in forex trading

- Learn how psychological factor affecting in the trading and define our best trading personality

- Be aware in our risk and money management

- Develop your most effective unique trading system based on your knowledge.

We should keep in mind deeply that forex trading is an investment. There is no way that we could be a master in some investment that we've just dive in to for days or weeks. We have to do it by the right way, and don't forget to eliminate your rush in the goal achievement. You will surely find your best trading system that suits you, I guarantee that. But it would cost you some time for several trial and error system testing while you developing your experience in forex trading.

By using an analogical approach as a computer, forex broker is the application programs and operating system. We do need them to make sure that all we need its done, served and executed properly. But, how good the computerization execution speed and its performance are depends on the basic computer specification, which analogically as you.

How to Get Yourself Completely Forex Prepared

Learning and education materials are world widely spreading around us.

1. The first and the most value added a resource of forex trading is through book reading. Forex and investing categorized books are availabe in countless numbers in many bookstore and online bookstore. You should pick some of them to educate yourself with valuable knowledge of the theory beyond forex trading.

2. Try to get into some traders forum to know more about forex trading and the markets. Forex forum also a place to give you an information for forecasting the crowd psychological factor to forecast the currency price movement by examining on how do other traders react in some financial forex related world events.

3. Get a forex course. An expert forex traders or forex broker are offering this kind of forex educational method. The course are usually about the basic knowledge of forex, technical analysis technique usage and its tools, an expert trading advice or maybe in how to develop a particular tested forex trading system which profitable (if done right and backed by your forex basic knowledge).

4. Forex magazine subscription. Some forex magazines are published weekly, monthly and others might be yearly. These materials usually give you information about the updated forex market behavior overview and analysis which can be use for the input of the fundamental analysis of your forex trading.

Octa is a private investor, an online writer and the owner of a forex trading blog [http://forexocta.blogspot.com]. She owns an online bookstore with a numerous collection of investment related books. Octa also a contributor in some finance categorized blogs.

Getting Started In Forex - The Proven Best Strategy For Getting Started In Forex

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:39:00 +0000

The proven strategy for getting started in Forex trading - thousands of people every year get started in Forex trading. Thousands of people new to Forex trading every year make critical mistakes because they've cut corners and not followed the best strategy for getting started in Forex. This article will discuss the best proven strategy for getting started in Forex - what you need to do and what you have to know. Keep reading to get a FREE Forex trading lesson plus access to a $100,000.00 Forex demo account to get you getting started in Forex.

Getting Started in Forex Strategy One - when you are getting started in Forex trading it's important to a realistic Forex trading strategy. To do this you need to know (and stick to how much money you are willing to risk.

Getting Started in Forex Strategy Two - when you are getting started in Forex trading it's important to choose the best Forex trader. It is an ABSOLUTE MUST that your Forex broker is registered with the Commodity Futures Trading Commission.

Getting Started in Forex Strategy Three - when you are getting started in Forex trading be sure to have access to the most up to date and most important Forex tools to help you getting started in Forex. Various brokers have access to various tools. Only choose a Forex broker that has the best and most up to date Forex tools at his fingertips. The more access to Forex information that he has the better your chance at winning Forex trades.

Getting Started In Forex Strategy Four - getting started in Forex trading involves learning two different ways of Forex trading (technical and fundamental) and becoming as efficient as you possible can in the Forex trading strategy that works best for you.

Getting Started In Forex Strategy Five - when getting started in Forex trading it's absolutely critical that you build a solid Forex foundation with a comprehensive understanding of the basic building blocks. Taking shortcuts here is not an option and will only result in Forex losses.

Getting Started In Forex Strategy Six - every Forex trader, even ones not getting started in Forex trading, should have a reasonable understanding of interest rates, international trade and the economy in order to predict movements in the current market.

Copyright 2007. Are you ready to get the best education in Forex trading? “Fast Education For Fast Forex Profits” is what this best Forex trading system course [http://www.Best-Forex-Trading-System-Course.com] is all about. Learn how to start making money trading the Forex market within 30 days. Study, practice, trade – get a 30 day FREE trial to practice Forex trading with your own $100,000.00 Forex account so you never have to risk any of your own money! Start your beginner education in Forex trading at [http://www.Best-Forex-Trading-System-Course.com]

How To Learn Forex Trading Online - How To Learn The Basics Of Forex Trading & Make Faster Profits

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:37:00 +0000

You may be surprised to learn how easy it is to learn the basics of Forex trading online and how quickly you can make money with Forex, depending on your Forex trading style. This article will explain how incredibly easy it is to learn the basics of Forex trading and how to make fast Forex profits. Keep reading to get instant access to free Forex video tutorials to help you get started.

You may have heard of the Forex market and you may have heard about a lot of people who make money with the Forex trading system. Forex trading is also commonly called currency trading. Many people are looking for ways to make extra income in their spare time and how they can learn Forex trading online. In order to learn Forex trading online you need to first learn the basics and how to successfully trade the Forex market.

If you are looking to invest your hard earned money into the Forex currency market then it is vital that you learn Forex trading online from experts in the field. Thankfully the internet makes it easy for people to find Forex tips at their fingertips with some very powerful Forex trading courses.

When you are looking at ways to learn Forex trading online there are some excellent Forex tutorials online that will explain many things to a beginner Forex trader like how the Forex foreign exchange market works, what Forex technical indicators are, what economic indicators you need to be aware of as a Forex trader, and the huge variety of Forex trading systems and options that are available to every Forex trader.

If you are just beginning your Forex education then it is vital that you DON'T dabble in any Forex trading until you have learn Forex trading online. Many online Forex trading courses understand the big step you are taking into the Forex market and have made this incredibly easy for you by offering free training, demonstrations, Forex tutorials and simulated Forex trading accounts.

The most significant feature when it comes to forex trading is to learn forex trading online so that you comprehend how to trade quickly and successfully. The more you are able to learn in your forex trading training the more understanding of the basics you will have and the more success will follow as a result of your comprehensive understanding of Forex fundamentals.

Locating a Forex tutorial or finding the best Forex trading course online in order to learn Forex at home is incredibly simple. Check out the website below to fast track your Forex education and learn the best Forex business system online with free Forex video tutorials.

Copyright 2007. Are you ready to learn Forex business online with guaranteed winning results? “Fast Education For Fast Forex Profits” is what this online Forex business tutorial [http://www.Best-Forex-Trading-System-Course.com] is all about. Learn how to start making money trading the Forex market in your first 30 days. Study, practice, trade. Get a FREE trial to practice Forex trading before you risk your own money. Start your beginner Forex education tutorials today in Forex trading at [http://www.Best-Forex-Trading-System-Course.com]

Learning to Trade Forex in Seven Steps

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:34:00 +0000

If you are interested in learning to trade forex successfully, then the most common path for an aspiring trader these days is to search the Internet for information to apply immediately to their live forex trading account. The problem is that their search often leads them to destinations where there are plenty of false promises, bad ideas, negativity and an obsession with indicators. Many of the EBooks on sale today are filled with recycled concepts or incomplete strategies which the authors themselves do not use. Many authors do not earn money from forex trading but they earn their living by selling these EBooks to the novice forex trader.

This easy access to forex guru's who fuel the idea that forex trading is the holy grail of easy money, then financially feed off those same people they have sold this idea to. At the end of the day what many of these forex guru's sell is a gross misrepresentation of what it takes to trade forex for a living.

Forex Trading is not easy. You can become a good forex trader though dedication and by treating forex trading as you would any other skill. The reality is that it is hard work and must be treated with the same amount of seriousness as you would any other career.

The effect of all these gurus is that many forex traders start off overly optimistic with unrealistic goals. Whilst there is nothing wrong with a positive mental attitude but this positivity must be built on strong foundations and realistic expectations.

New forex traders normally start their career by purchasing some secret set of indicators and they are quickly punished for their naivety. Many of these forex traders then purchase a different set of secret indicators until they become disillusioned and then quit trading.

In fact, many forex traders that are now successful went through this learning process, including myself. This is only a problem if you refuse to learn from your mistakes. You need to break from this cycle of reliance on secret indicators and guru methods to be successful.

You help yourself in the beginning; by learning to think for yourself and understanding that whilst anyone can trade forex, to be successful, you must learn to BE a forex trader.

To BE A Forex Trader

To trade forex is easy, all you need is a forex trading account with money in it and then you enter the foreign exchange market and start trading.

To be a forex trader is more work. You need to grow from the starting point of having very little knowledge to the stage where you have a trading plan, understand the concepts and behaviour of the forex market and be able to trade with a cool head and understand that wins and losses are all part of being a Forex Trader.

Learning How to Trade Forex by thinking like a Forex Trader in Seven Steps.

1. Understand your place in the Forex Market

This is very important you must understand that you are very small fish in a big ocean.

In the Foreign Exchange Market the majority of the liquidity is coming from big banks and experienced institutional traders. These are the big fish. The big fish will happily enjoy you as a little snack.

You are only fooling yourself if you think it will be easy to take money off these big forex traders.

You have to learn to swim alongside these big fish and catch the same currents they do. Swimming against them just marks you as prey and sooner or later you will be eaten.

2. Learn to read the Forex Charts and Understand the Foreign Exchange Market.

Many novice forex traders believe that these big forex traders have access to some secret forex trading strategy or use a secret set of indicators, but the truth is this is just not the case.

These major forex players are using simple, but proven technical analysis techniques - most commonly horizontal support/resistance, identification of trading ranges, Fibonacci these are then coupled with fundamental themes.

Begin by accepting that the other major participants are highly experienced in the market and they make money because of experience and by a complete understanding of the core skills and not because they hold a holy grail of secret indicators.

3. Money Management

It is crucial that you understand as a novice forex trader the emphasis is not on how much you can make from forex trading but on how you manage what you have.

This is the most common downfall of all novice traders. It is common place to see a starting trader risk the majority of their account on one or two positions.

This style of trading is not sustainable and professional traders do not trade in this manner. Everyone sometime in their career will have a string of bad trades. A typical number might be 10 losing trades in a row. The question is do you have a money management plan in place that enables you to survive this?

4. Focus on the Market

Many novice forex traders open their forex charting software and activate their latest hot indicator or tool and proceed to place their trades as per the tools recommendations. This style of forex trading is unlikely to have much long term success.

When these indicators fail to generate the required profits then these traders then move rapidly on to another set of indicators.

You must focus on the forex market and understand what the indicators are telling you so that you can pick the forex trades which have the best probability of being winners.

Successful forex traders use indicators and tools as Fibonacci, Pivot points, price channels, MACD, RSI etc. These tools by themselves do not make a successful trader. There are many successful traders and unsuccessful traders who use the exact same indicators.

The key is that successful traders understands how the market behaves around the indicators and understands what the signals actually mean.

The best way to achieve this is to stop swapping between tools and select those that compliment your trading plan, understand how they work, and then spend time in the market experiencing them.

5. Plan your trade and trade your plan.

This is a common saying that seems to get lost on novice traders. It should be every trader's goal to make pips on each forex trade as per their trading plan. Forex Traders must treat each trade as a business decision by calculating their risk and defining their entries and exits points, those that do not open themselves to big losses when a trade goes bad.

Many novice traders seem to lack the discipline to follow a plan for each trade. So what happens is typically the following; a novice trader will see a potential set-up, they decide on some arbitrary sum to buy or sell with a quick guesstimate, then place the trade without analyzing any risk and having an exit strategy.

Of course this way of trading can be profitable over the short term, more down to luck than skill. But eventually the luck runs out and the trader is caught napping and a common result is a wiped out account.

The first question novice traders tend to ask themselves how much will I make on this forex trade?

The first question experience traders tend to ask themselves is how much is my potential loss / risk?

6. Your mind is your strongest asset and weakest link.

Entire books have been dedicated to the subject of psychology and its role in trading. That doesn't mean they are all going to help you, but you should take this as a sign that the subject is not to be ignored.

First you must understand the role psychology plays in trading. You must learn to understand your personality traits and how they might affect your trading style.

A trader I know is a bad loser and when he has a bad trade, he had a habit of going straight back and trying to win those pips back with even worse results. But he understands this as a weakness and when he has a bad trade, he takes a break of 20 minutes before he goes back to trading so that his emotions do not affect his trading decisions.

Second you must make it your aim to never stop learning. You cannot get yourself to a certain level and then become complacent. Every day is a learning experience in some way or other and you must be prepared to learn lessons and invest time in improving your skills and experience. The day you stop learning is the day you should stop trading.

7. Understand The Forex Market is always right or Expect the Unexpected.

The forex market is an interesting place, but there is one thing every trader needs to learn. Always expect the unexpected and do not get wrapped up in past successes. No matter what your charts or indicators tell you; sometimes the forex market will just do the opposite.

Whatever happens in the market you must maintain an objective outlook on your strategy and the forex market and ensure that bubbles and crashes do not derail you in the long term.

By following these steps and learning to become a forex trader rather than just trading the forex market, you will put you on the path to ultimate success as a profitable forex trader. This is something that 90% of all novice traders fail to achieve.

Want to read more reviews of forex trading systems, forex brokers and learn more about forex trading by a currency trader? Then be sure to check out http://www.currency-exchange-reviews.com

If you want the latest Forex news then subscribe to our RSS feed at my forex news blog at [http://forex-market-news.currency-exchange-reviews.com/].

Forex Secrets - Delusion No1 - Forex Currency Rate And Economic Factors Impact On Exchange Rate

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:33:00 +0000

The delusion conceptually propounds that intraweek and intraday FOREX currency quotes movement is governed by either improvement or by deterioration of the state's economic situation. But in reality, even in case the actual Forex news is superior to the estimated one, the FOREX quotes up/down movement is of 50/50 probability.

This statement is thoroughly important. Once the job of Forex trader is gambling on FOREX exchange rates differential (FOREX pairs up/down movement), the following is to be realized to obtain faultless profit:

FOREX pairs pricing mechanism (say at point X where you are completing the market analysis)

Factors imparting growth/decline to FOREX rates (up/down from point X).

Thus, having understood the FOREX rates factors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of whether to buy or to sell the given currency pair.

So, what are these factors?

FOREX student suggest unambiguous interpretation of factors responsible for the price formation and the fluctuations there of:

Forex rate constitutes a demand-supply balance for a given goods (currency).

Any violation of this balance, (for instance, in case where the estimated news is in disagreement with the issued official one), results in the FOREX rates reciprocation in chase of a new demand-supply balance. Poor demand brings about decline in a certain currency rate, with a high demand leading to the growth of the latter. The situation continues as long as the currency buy/sell demand comes to balance at another level or at another point.

Referring to the B. Williams ("Trading Chaos 2" Chapter 1 "The market is what you are thinking of it"):

Each world market is dedicated to distribute or share limited amount of something... among those desirous to obtain it most of all. The market affects it by way of finding out and identifying the exact price? Underlying the buyer'/sellers' power absolute equilibrium point.

The above point is readily established by stock, futures, bonds, FOREX and options markets, be it either via an open auction or by virtue of a computerized facility. Markets spot this point prior to any misbalance being detectable by you or by me or even by traders at the exchange floor.

With this scenario holding true - and it really does - we are in position to jump at certain simple yet important conclusions as regards the information being circulated through the market and enjoying doubtless acceptance".

Thomas Demark was more laconic in "Technical analysis - an emerging science":

"Price movement is governed by demand and supply. Should demand exceed supply, there's a price rally and if visa versa, there's a price decline. All economists do share these underlying principles".

Hence, the role of fundamental analysis for FOREX market is readily apparent.

In scholar fiction one will discover roughly the following explanation, persistently wandering from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country's economic fundamental data, viz. by tracking the factors reflective of the country's economy condition as below:

State economy condition dynamics indicators (GDP, trade & payments balance, current account, industrial production, etc. It is knowledge, that the higher the above indicators - the faster the economic and the currency price growth);

Stock indices, via average arithmetic index of the country's securities market condition and dynamics. E.g.: 0.3% daily DJI growth in the USA means that this certain day the shares of 30 leading US companies, being pictured by DJU, went 0.3% more expensive. By similarity, DAX30 is the major German index, incorporating the price of shares of the country's 30 leading companies.

The country's interest rate, since the higher the rate, the greater number of investors is eager to invest into the country's economy and hence into national currency strength.

Rate of inflation (the higher the rate, the quicker the National Bank will hike the interest rate). With this assumption, the CPI constitutes a key factor.

Money supply growth in domestic market, which fact brings about the inflation, leading to the interest rate hike.

The country's gold and currency reserve assets.

Variation dynamics correlation of: balances of payment, trade balance, state budget, gross domestic product (GDP), etc.

Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)

Construction statistics (construction spending, new home sales, housing under construction, building permits, etc.)

Labor statistics (unemployment rate, new jobs, etc.)

Society investigations (consumer confidence, consumer sentiment, purchase managers and service managers sentiment, etc.)

To be considered additionally are the country's political stability and tranquility (clearly, any political, natural and other cataclysms are sure to turn investors nervous making them withdraw the investments from the country, thus weakening its national currency). And with the currency being the national economy derivative, changes in economic data will inevitably result in the above currency rate movement.

Conclusions:

Progress in economy results in the currency exchange rate rally.

Decrease in economic indicators leads to the national currency rate decline.

To sum it up, critical economic and political news (whose calendar is issued in advance and is familiar to any trader) constitute a standing factor giving rise to misbalance and causing the currency rate fluctuations.

In anticipation of important economic and political news FOREX pair crawl to the rates as inspired by the estimates ("rumored trade"), whereas upon actual news there occurs a pulse motion of FOREX pairs in accordance with the scheme below;

Forex rate grows if actual news are better than the estimated one;

Forex rate declines if actual news are worse than the estimated one.

ARE YOU FAMILIAR WITH THESE ABC BASICS OF STUDYING FOREX?

Do you accept that one can earn money by way of using these basics, known to every trader?

Then why, having absorbed these economic axioms, 90% of Forex traders in the world are losers rather than winners.

Where is the delusion of the above ABC truth, nudging traders towards losses? Let us perform sort of point-by-point analysis.

The currency exchange FOREX market is a book-makers one. It is gambling on rates difference without direct money delivery to the exchange market, except for hedging of traders' funds by Forex brokers, via buy-sell difference especially during strong trends). Then, http://www.forexite.com reads: "Trading is performed without actual currencies supply, which fact cuts overheads and enables Forexite to go long and short on the currency" http://www.forexite.com/forexite_advantages/forex_advantages.html.

Comment: Have you ever met any book-makers;

- whose logics was coincident with that of THEIR clients (traders),

- whose stakes were being made in accordance with THEIR technical analysts forecasts, economic laws and common sense?

And what extent of doubt and skepticism should be attached to THEIR free "recommendations", "advice", "surveys" and "forecasts", laid out at THEIR sites through THEIR analysts?

As a regular result, over 90% of the world traders are still loosing their deposits at FOREX each time they follow Thomas Demark stereotype that "All the economists share these underlying principles".

Comment No.1. In as much as the above underlying principles are 90% contradictory to practice, it gives rise to the following question. Might these "underlying principles, shared by all economists including Thomas Demark" have possibly turned into dogma, alien to life and practice?

Comment No.2. What should a trader lean on: practice or dogma even if supported by great names, provided that the trader is purported at earning money?

FOREX analysts issuing their daily bulky market reviews are not FOREX traders in the overwhelming majority (see detailed discussion below). And on bringing together pairs 1, 2 and 3 there appears certain regularity.

Please, think over A. Elder words, that: "FOREX rates and the fundamental analysis are tied together with a mile-long rope. The fundamental analysis is ultimately decisive. But anything is likely to happen prior to this eventuality". Another, yet no less renowned trader and analyst, Bill Williams underlines the same mental regularity of an experienced professional trader (level 3 of his trader's skill rating as per "Trading Chaos 2"): "On attaining level 3 you emerge as a self-provided pro trader. You are always familiar with the market's basic, usually invisible structure. You no longer need to refer to others' opinions. You needn't read "Wall Street Journal", watch market-oriented TV programs, and subscribe to information bulletins, waste money on information channels".

Comment: Logically, there is a counter-implication, that if You are eager to become a successful trader, You are to restrict the influence of various surveys and recommendations on yourself even in case they originate from the world famous "Wall Street Journal", to say nothing of crude gurus in analyst skins who use to know ahead of time where currencies will go.

Forex news is a scheduled issue of fundamental data, which as a rule impairs FOREX rates a sharp pulse of motion. But then, why the currency rates movement vector is only 50% coincident with the ABC truism logics as to where the rate should rush in case of actual news being much better or worse than the estimate. And, please, make an attempt to answer the following question, stirring for every trader: why with the new being worse than expected (say, on US economy), the USD currency would initially fall by 40 pips (news work-off) but in 5 to 10 minutes it would swivel back and would display a 200-point rally, with no account to either the issued news or to common sense.

Below are some examples:

Fig. 1. GBPUSD chart as of April 1, 2005 after the news, positive for the GBP and negative for the US economy.

See Note below

In March the CIPS manufacturing index amounted to 52.0 (with the previous data revised from 51.8 to 51.6). Oil price in NYC has grown by USD 2.40 up to USD57.70 per bbl (new record of the latest 21 years). Non-farm payrolls in the USA was minimum since last July (previous data revised towards lower values). There has been a decline in the Michigan sentiment index to 92.6 (median estimate was 92.9, with 92.9 previously).

All the US indices faced a fall down. DJI at NYSE has fallen by 99.46 pips (-0.95%) towards closing at 10404.30. NASDAQ declined by 14.42 pips (-0.72%) to 1984.81. S&P500 slipped by 7.67 pips (-0.65%) to 1172.92. 30-yr US Bonds yielded 4.729 (0.037 lower as compared to the previous close). By contrary, FTSE100 has grown by 19.60 pips (+0.40%) to 4914.00.

Now, the question is to certified economists: what will happen to the GBPUSD within one day or even several hours upon publication of these data? You are right, USD should not simply fall down, it should collapse. Powerfully, swiftly. Well, well...

And this time, the same question to experienced traders. By FOREX news headlines You might have guessed that the events are taking place at the Friday American session. Correct. Initially, anyway, the GBPUSD chart will go up by 100 pips (news wok-off), followed by a pullback. Then Forex chart starts a new rally.

It is now to be tracked whether the GBP will breach the latest rally high or not. If affirmative, it will rush up by approximately 160 pips (Elliott wave 1 was 100 pips, while EW 3 is 60% longer). But if the high is not breached? The GBP currency quote will in no way come to a standstill, moreover on Friday afternoon. Hence, - down, to the starting point! And, if breached, similar situation takes shape but the counting is performed in a "down" direction (EW1, being the same 100 pips plus 187 pips from 1.8826 to 1.8759 being EW 3).

The FOREX day trading tactics will be given scrutiny in a separate chapter. A still separate chapter will be dedicated to Friday trade at American session due to its inherent specifics and to strong seemingly inappropriate movement. The movement is, of course, appropriate. To say nothing of Friday. But it will be touched upon later.

Now, getting back to the currency chart. As apparent, the GBPUSD pair movement on Friday, April, 01, 2005 is in no way in conjunction with the US economy fundamental data. Each forex trader can provide from tens to hundreds of similar instances, where the news are of a certain vector, whereas, after a fraudulent rush along the news vector, a currency applies reverse thrust.

Thereafter, the next day, in daily currency surveys, certified economists are sure to explain all to us by way of inventing another undisguised nonsense, like: "in spite of certain data, traders decided that the currency has already worked-off this side". But! How could this occur on Apr, 01, 2005, provided that the currency has been staying flat in a narrow range in the course of the whole of the European session?

Otherwise, another explanation may emerge, that forex traders were expecting still more inferior news on the US economy... But! By how much more inferior, if according to DJ, the US non-farm payrolls MA was equivalent to 180K, with actual being +110K, estimate being +225K and prior being +243K? And in what manner do these economists count up world traders: by capita, by countries or by the funds, lost by those, who continued staying long in a holy belief in renowned academic scholars postulate of FOREX rates being tied up to countries' economy statistics.

I wonder if I'll ever chance to witness legal procedures to be instituted against any of those famous scholars, so that no one would dare claim that fundamental data trigger rate spikes.

The same pertains to economists, writing about the way, hundreds of thousands traders throughout the globe have conspired to conclude that it is time to reverse the trends with absolutely no grounds. Is it really feasible?

Such reading-matter is, but hammering a single question into one's head: is it lie or is it stupidity of those cooking daily reports for taking traders for a ride, fooling them up and keeping them from the truth, which might be of great avail to them in daily trading. Traders are not a decisive factor, thus rates movement is in no way dependent on their will. Practically in no way.

Wanna check? Negotiate with tens of traders of the trading floor and arrange for a simultaneous entry long on some exotic FOREX pair. In so doing, try to push up either the NZDHKD, or the NZDCAD, or the HKDCAD. No need? I think so. You'll certainly suffer failure with the above, to say nothing of the EUR, GBP, CHF.

Another example:

Fig.2. GBPUSD movement as of May 13, 2005.

See Note below

This is an M15 chart of the American session, where the USD pair has grown by over 100 pips from 1.8583 to 1.8481 against the news, negative for the US economy:

Most indices have dropped down: DJI at NYSE - by 49.36 pips (-0.48%) to close at 10140.12; S&P500 - by 5.31 pips (-0.46%) to 1154.05. NASDAQ has grown by 12.92 pips (+0.66%) to1976.80. 30yr US Bonds yielded 4.484 (0.047 drop from previous close)

There is a fall in Michigan sentiment index. In May UMich was 85.3 with med est 90.0 and prior 87.7. So it was worse than the estimate, reaching the low since March, 2003. The index decline was being observed for the fifth month.

The April US export price index was +0.6% with prior of +0.7%.

Below are other similar examples of that same day.

Fig. 3. EURUSD chart as of May 13, 2005.

See Note below

Hundreds of examples may be offered, where the Forex news vector is opposite to that of the currency movement. Practically, actual news may happen to be superior or inferior to the estimate. FOREX quotes up/down movement is also of 50/50 probability irrespective of the above.

Why does it happen and what is the way for a trader to pinpoint entries and exits? This is going to be discussed in ensuing chapters of this book.

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.

Author of Books:

1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.

2. Technical analyses in Trading System MasterForex-V.

3. Entry and Exit Points at Forex Market

http://www.masterforex-v.su
http://www.masterforex-v.org

Forex Secrets - Developing the "Anti-Chaos" Trading Strategy and Tactics at Forex Market (Part I)

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:27:00 +0000

"Trading chaos": B. Williams's contribution and the reasons why millions of traders all over the world lose their deposits when they work according to the techniques of this author.

The book "Trading Chaos" by B. Williams is the classical edition that deals with giving the technical analysis to Forex. It is of a great interest not only to me but also to millions of B. Williams's admirers all over the world. From the viewpoint of mine as a trader, this book is so popular because B. Williams tried to do the following:

1. To present Forex chaotic market as a system, making use of the chaos theory.

2. To depict his vision of logic of the structural components motion in this chaos: a) the strategy (Elliot's wave theory); b) the tactics (the fractal analysis; the use of fractals and the so-called "key factor" - i.e., financial and economic instruments.

3. To submit 5 levels of the professional training of every trader. Each of these levels is clearly described and specified - as well as the corresponding goals and the instruments that traders must be capable of using at each of these levels.

In particular, the following chapters of the book in question are dedicated to the problems enumerated below:

Chapter 6. The first level - a trader- novice.

Chapter 7. The second level - an advanced beginner.

Chapter 9. The third level - a competent trader.

Chapter 11. The fourth level - a skilful (trading) trader.

Chapter 12. The fifth level - a trader -expert.

4. Besides, B. Williams enumerates 5 "bullets" that can "kill" any trend -i.e., its reversal points (points of reference). Starting from such points, one can develop new strategy and tactics of the work within the trend.

5. B. Williams also recommends making a business plan. In this "control list", one must clearly specify "the working rhythm", the signals from "the big finger" concerning the deal opening, "stop-loss" levels, cushion pads (suspension pillows), etc.

6. As a professional psychotherapist and trader, B. Williams submits practical recommendations to the beginners and skillful (competent) traders - see Chapters 11 and 12 from "Trading Chaos». The essence of his attitude to traders' principal psychological problems can be approximately formulated as the following. We learn how to integrate into the market basic structure and establish contacts with the market via realizing our own prejudices and by the development of our individual trading programs. You should compare this approach with other psychoanalysts' viewpoints. Such "specialists" try to make money at Forex market rather incompetently (see Chapter 23, dedicated to traders' psychological problems that arise during the work at Forex and methods of their "healing").

7. As the logical continuation of "Trading Chaos", B. Williams has written another book - see "New Dimensions in Exchange Trading". In this book, the author presents his business approach - i.e., Profitunity "via the web".

· He has introduced the indicators (AO, AC and Alligator). Now they are regarded as the obligatory) components of the majority of Forex trading systems.

· He tried to "specify (detect) all market signals" and open deals at the moment when such signals coincide simultaneously, which must be confirmed by different indicators.

I would like to keep on complimenting B. Williams for his accomplishments and contribution to Forex theory but for "one snag to it". Several years ago I started to reflect on certain aspects of B. William's theory. That is, as a rule, 95-97% of traders had lost at Forex before the edition of "Trade Chaos 1, -2" and "New dimensions". At the same time, notwithstanding all achievements and discoveries by B. Williams, the number of traders -losers still remains the same even after the editing of these books.

This circumstance forced me to scrutinize many of B. William's positions more impartially and in detail. I have cardinally reconsidered my views on the trading at Forex.

As I see it, one must clearly distinguish domains where techniques by B. William's and other authors are applicable and where they do not work but only accelerate the process of losing money by a trader. Only after having learned how to detect this boundary one can develop one's own trading system that will bring profits at Forex.

Further, I try to submit my views on Forex market. Starting from the theory, I make a transition to its practical application. In this way one can better understand logic of the currency pair movement at Forex market. Consequently, this approach helps us to trace out a general pattern of opening and closing of transactions at Forex.

CHANGES in FOREX MARKET. FOREX CONTROLLABLE SYSTEM instead of CHAOTIC MARKET and ITS CONSEQUENCES for TRADER'S WORK

Previously Forex was a chaotic market. B. Williams tried to find elements of a system, making use of the theory of chaos. At present the system "tries to disguise its goals and plans" with the help of a superficially chaotic character of movements in this market.

As regards Consortium, the PRINCIPAL CONCLUSION that a trader must make after reading this chapter is the following. This market has ceased to be spontaneous. Now it is organized and controllable. At present volumes of transactions, opened by traders, have ceased being of great influence. Somebody's interest "to push" a currency towards this or that direction has become much more important. Often this interest aims at usurping an N- transaction volume and a number of traders' orders. The primary goal has become to reverse all currency pairs into the opposite direction. This is why the currency often "moves" against the volume, news and the common sense. The charts on April 1, 2005 perfectly illustrate these tendencies. I sincerely hope that everybody sees that these graphs do make exceptions but they don't confirm the rules of Forex.

This is why the techniques of working at Forex, written by those classicists who dealt with the spontaneous market, will more and more diverge from the currency real (true) quotations. It is necessary to mention that at the spontaneous market the direction of the trend and its intensity coincide with the trading volume. At present the base of Forex market is changed in its essence. Now it's being driven by INTEREST of a certain grouping but not by spontaneous forces. This grouping prescribes the currency quotations to us at the market. It is ready to reverse currency pairs against any volume of traders' orders.

The reader should recall one of A. Elder's principal ideas - this author is the classicist of the stock market technical analysis, a trader and the professional psychotherapist. He states that the market is being driven by a crowd (flock), which opens the deals towards one direction. This results in the trade formation.

It is justified when one deals with the chaotic market.

But what does happen at Forex market at present?

Let us again return to the example of USD trend reversal from the "bear" type to "bull" one.

The charts on April 1, 2005 are depicted below.

Chart 8.1. EUR/USD movement (For view picture see notes in end of article)

Chart 8.2. GBP/USD pair movement. (For view picture see notes in end of article)

Let us scrutinize GBP/USD pair behavior on April 1, 2005 after issuing of positive data on GBP and negative ones concerning USA economics. During March, in Great Britain CIPS manufacturing index made 52.0 (the previous value had been reconsidered from 51.8 down to 51.6). In New York, the oil price heightened by $ 2.40 - up to $ 57.70 per barrel. It was the new record-breaking high price in 21 years. During March in USA Nonfarm payrolls were minimal to start from July of the previous year. Its previous value was revised towards its diminution. Michigan sentiment index was 92.6 in March (the forecast had been 92.9 - it had coincided with the previous value). All USA indexes had fallen down.

I hope you take on trust that at the same moment all other currency pairs were adjusted for benefit of USD rate rise against other national currencies. Those who do not believe can check it - these data are public and open to general use.

There arise the questions.

1. Can traders all over the world open transactions in USD "bear" trend almost at the same moment (from M1 to H4 and D1). That is, under the condition of the issue of negative news on USA economy, all traders simultaneously started to buy USD and sell all national currencies. Consequently, USD rate began to sky-rocket. Clearly, this situation contradicts the news, logic and common sense.

2. One should pay attention to the synchronous character of motion of all national currency pairs. The difference in time makes from a fraction of a second to a minute.

The charts on April 29, 2005 serve as another example.

Chart 8.3. EUR/USD pair movement (For view picture see notes in end of article)

Chart 8.4. GBP/USD pair movement (For view picture see notes in end of article)

Analysts attract our attention to the following facts. In the European session EURO/USD pair rate had increased up to the point 1.2976. In the American session it fell down to 1.2852, minimal to start from April 15. The rate fell more than by 120 points. Analysts emphasize the fact that high values of several other USA indices (CIPS and Chicago PMI) pegged USD rate.

In USA in March the personal income index was +0.5%. At the same time, the prognostication had been +0.4%, which had coincided with the previous value. In USA in March the personal spending index made +0.6%. The prognostication and the previous value had been +0.5% and +0.7%, respectively. In April Chicago PMI made 65.6. The prognostication had been 63.0, whereas the prognostication and the previous value had had been 63.0 and 69.2, respectively.

As the consequence of this second "fortuitous" reversal of currencies, USD trend at H4 was changed - from April till the end September, 2005 - i.e., during half a year (at least when his chapter was being written).

As the result of this reversal, national currencies were depreciated with respect to USD. The corresponding indicators (gauges) are the following:

· EURO fell by 1100 points (from 1.2972 down to 1.1865);

· GBP fell by 1900 points (from 1.9164 down to 1.7271);

· CHF fell by 1600 points (from 1.1882 down to 1.3484);

· AUD fell almost by 500 points (from 1.7844 down to 1.7365).

It is an absurd joke, isn't it?

That is, the trend has reversed synchronously with respect to all national currencies by 1000-1900 points for half a year just because of the following events in USA on March, 2005:

- Chicago PMI index was +0.5% instead of +0.4%;

- personal spending index made +0.6% in place of the previous value +0.7%.

Were these events stimulated by traders' wishes and expectations? That is, does it look like all traders simultaneously were being staking wrong over and over again during half a year!

Giving analysis to all the events of those two days, one can see a striking alternative:

1. Either we assume an absurd possibility that there does exist "a world-wide plot of traders" - big gamblers at Forex " included. That is, traders can always act synchronously, whereas National Banks of all countries keep on remaining oddly passive.

2. Otherwise, proceeding from these and hundreds of thousands of the analogous examples, we must admit that Forex is not a spontaneous, unpredictable and chaotic market any more. Now it is replaced by a market, controlled by somebody. In terms of Financial Times and the journal "Currency profiteer (speculator)", this parent group (the organizer of Forex ), is called "Consortium". Below I use this term as well. Consortium is capable of the following:

a). in a fraction of a second to reverse USD trend more than by thousand of points with respect to all national currencies of the world;

b). not to give any chance to National Banks of all countries in the world to prevent the steep fall (or rise) of their national currency rates with respect to USD. Surely, it is assumable that National Banks closely collaborate with this Consortium. However, in this context another statement is important. That is, USD rate reversal occurs simultaneously with respect to exchange rates of all national currencies. However, it looks rather dubious that this very day wishes of all National Banks' suddenly coincided with the purposes of Consortium. Probably, another situation is more realistic. At least some of National Banks were forced to obey Consortium's resolution - i.e., to reverse USD trend with respect to other currencies, their own included.

Thus, there emerges a completely different model. One must not follow "the crowd" ("the flock"), trading volumes and postponed orders at Forex. Giving analysis to a series of factors (the trading volume included), it is necessary to understand the interests and aims of those who give quotations at Forex. Our goal is "to trade together with those individuals". Very often it is against the "crowd" and "volume" of transactions opened by traders. It is illustrated by the example of the charts on April 1, 2005.

Let's dwell on the difference between the goals of Organizer and common participants of any of financial games.

Imagine yourself in the position of an organizer of any financial game, the game of " Forex " included. In the shoes of Organizer, first of all you must determine your goals and principles, opposite to those of other participants of this "game".

1. For the game organizer it is to gain profit regularly and stably.

2. For this purpose, Organizer tries to establish the game rules as simple and "impartial" as possible. His goal is to make this game attractive for all other participants. In this way Organizer collects a large audience of traders, independently of their age, profession and other differences between them.

And now one should look at the familiar aspects from this viewpoint.

a). The fundamental and technical analysis; the army of economists-analysts and other "specialists" who teach all participants to work at Forex "as all do".

b). The classical version of notions of the support and resistance levels (indicators, advisers, etc.), intended for placing all suspended orders and stop-losses approximately at the same points.

c). An abundance of news and factors that influence the currency quotation behavior. As the result, one can readily explain the movement of any currency pair in any way one likes - however, such explanations are submitted post factum.

In case of logical gaps in "impartiality" of the currency pair movement explanation after the issue of news, "foul (forbidden)" methods are always "at service". It is just impossible to refute this reasoning! There are the examples: "the market is unpredictable", "the currency has already finished "working for" the given news before its publication", "the participants have noticed a negative aspect of the index high values, which for sure will manifest itself in future", "an unknown clearing bank has placed an order for buying a given currency in a large amount - under the condition of the "bear" trend (when all trader stake on "sell")", etc. Can you prove the opposite? Surely, you cannot.

You should compare the behavior of the controllable and spontaneous currency markets under the condition of force major.

Only the force major factor is totally unpredictable by Organizer. Such circumstances impartially and clearly indicate the difference between the spontaneous and organized (controllable) markets.

In any area, extremities always play the role of the moment of absolute truth. That is, such extreme situations indicate weak and strong points of any system. It relates to politicians' behavior at crucial periods in a State, to putting on trial equipment and to the situation at the currency market under force major circumstances.

The Episode #1. The force major circumstances in USA on September 11, 2001. There is the difference in the behavior of spontaneous and controllable money-markets.

Chart 8.5. EUR/USD pair movement (For view picture see notes in end of article)

Chart 8.6. GBP/USD pair movement (For view picture see notes in end of article)

The results of trading at Forex on September 11, 2001 ( Forexite Ltd.) are the following. The dollar rate sweepingly fell as compared with the principal national currencies. EURO/USD rate increased more than by 200 points (from 0.8965 up to 0.99167). GBP/USD rate increased more than by 210 points (from 1.4559 up to 1.4773). USD/JPY rate fell almost by 330 points (from 121.84 down to 118.58).

The reason for drop in USD rate was the terrorists' attacks on New-York and Washington. According to news agencies, terrorists had had high-jacked passenger planes. The latter were directed at Trading Center in New-York and Department of Defense (Pentagon) in Washington. The planes had fallen down, which caused the subsequent conflagration and collapse of Trading Center two sky-scrapers. As the result, the trading at New-York Stock Exchange did not take place that day. It was suspended for a not fixed period of time.

The events in USA stimulated the drastic strengthening of CHF rate. In American session USD/CHF rate fell more than by 530 points (from 1.6895 down to 1.6365). EURO/CHF rate fell more than by 200 points and came down lower than the level of the strong psychological support - 1.5 CHF for 1 EURO - to the point 1.4950. The matter is that CHF is considered saving (salutary) currency under the conditions of various world crises. Consequently, investors were anxious to buy CHF as many as possible in such an uncertain situation, induced by the act of terrorism in USA.

Do you get it? Panic captured the whole world - in the first place, USA itself. At the same time, USD rate fell with respect to

- EURO by 2%;

- GBP by 1.47%;

- JPY by 2.7%.

Now let us determine the real fall in USD rate all over the world. As the starting point we take Special Decision by National Bank of Ukraine.

The board of directors of National Bank of Ukraine adopted the resolution, in accordance to which National Bank of Ukraine could fix a rate without taking into account demand and supply. After the act of terrorism in USA on September 11, currency exchange centers in Ukraine raided USD buying rate from 5.25 down to 3.0-2.5 hrivnia (Ukrainian national money) per $1. USD selling rate was being maintained at 5, 35 hrivnia per $1. National Bank of Ukraine stipulated that USD exchange rate had not to deviate from the official rate more than by 10%. Only after threatening to cancel the license to work at the currency cash payments market (Available Funds), currency exchange centers return to buying of USD in cash according to the rate that had been in force before September 11, 2001.

That is, in contrast to the controllable market, the spontaneous one reacted to one day of the force major of September 11 by the double fall in USD rate and more!

Thus, the difference between the reactions of the currency exchange spontaneous and controllable markets makes 50 times and more.

Is it a pure accident? Thus, it looks as at that day the traders, one and all, deciding to stand by USD - so that in their transactions they did not stake on USD rate slump? Or, probably, some of traders bought USD against other national currencies, even not knowing whether USA economics will retain the leading positions in the world or it will level with undeveloped countries (e.g., such as Ukraine). Is it possible? You just imagine what would happen if another plane or two were fallen on reactors of nuclear power plants in USA so that the major part of America would turn into "Chernobyl zone"!

See continuation of this article under name Forex Secrets - Developing the "anti-chaos" trading strategy and tactics at Forex market (Part II)

Note: Full text of this article and pictures of examples Article

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit Masterforex-V Academy

Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:

1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market

Free Books Website:
Masterforex-V Trading Academy

Online Forex Trading Secrets

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:25:00 +0000

I am here to share some knowledge, tips, strategies and insights of how to successfully buy, sell, trade and invest in online Forex trading. FOREX or Foreign Exchange is the largest as well as the most liquid trading market in the world and there are many people involved in FOREX trading all over the world. A lot of people claim that the FOREX is the best home business that could be pursued by any person. With each day, more and more are turning to FOREX traders, via electronic means of computer and internet connectivity.

This means that foreign exchange is not delivered to a person who actually buys like stock trading, FOREX trading also has day traders that purchase and sell foreign exchange same day. Thus, FOREX is not a get-rich-quick scheme as many people thought which complicates the real concept of online Forex trading.

Unlike stocks and futures that trade through exchanges, Forex trading is done through market makers that include major banks as well as small to large brokerage firms located around the world who collectively make a market on 24 hours - 5 days basis. The Forex market is always "open" and is the largest financial network in the world (daily average turnover of trillions of dollars).

Forex trading involves trading currency pairs such as the EUR/USD pair (Eurodollar/US dollar pair) where a buyer of this pair would actually be buying the Eurodollar and simultaneously selling short the US dollar.

Here's the deal: Just like any other market, most "traders" are losing when trading Forex. And the reasons for their failure are mainly because some lack good trading methods, sound money and risk management principles and indiscipline trading attitude. In most cases, it could be wrong mindset and motive towards the market. Some don't even understand the trend of the market, of which the trend plays a vital role in the life of any trader, as it is simply says that "the trend is your friend".

Moreover, many have been mislead by dishonest individuals or questionable brokers promising outwardly overnight riches and hidden policies.

Forex is still a little like the "wild west", so there's naturally a lot of confusion and misinformation out there but I'm here to cover many tactics and strategies used by successful Forex traders all over the world. Unfortunately, only few Forex traders are actually aware of this information.

Forex trading is all about regulation, willpower and determination. Leveraging your strength could be extravagant by organizing the appropriate Forex trading strategy. You may find hundreds and thousands of Forex trading strategies out there. All Forex trading strategies use a variety of indicators and combinations. These indicators and studies are just calculating support and resistance and trend in the Forex trading market.

What you are about to read is more valuable to you than what you will find in many trading courses or seminars that you'd have to pay for. Anyway, I don't believe in sugarcoating anything or giving you false hopes of success. There are enough swindlers doing that already. I want to give you the facts, like 'em or not, so you're empowered to take action and make positive decisions on how to succeed in the Forex markets.

There's nothing magical about the Forex markets, because all markets are ultimately driven by human psychology - fear and greed - and supply and demand. Sure, every market has its own peculiarities, but if you understand how the basic drivers of human emotions work, you can potentially succeed big in Forex market, because the market controls 95% of live trader's emotions. Some traders think it's a "get rich quick" trading the popular Forex markets.

There are many advantages of Forex trading over other types of financial instrument trading like bonds, stocks, commodities etc. But it does not mean that there are no risks involved in the Forex trading. Of course there are risks associated with Forex trading. Therefore, someone needs to understand all the terms related to Foreign Exchange carefully. There are many online sources as well as offline sources that provide hints on trading of Forex. These hints are basically the SECRETS.

As I said above, the foreign exchange trading is considered as one of the most profitable and attractive opportunities for investment as any person can easily do at home or office and from any part of the world. For succeeding the Forex trading, a person is not required to do any online promotion, marketing etc. The only requirement in the Forex trading is the account that a person is required to open with reliable and registered brokers, a computer system and fast internet connection.

Now, you have to be careful when opening a Forex account with any broker because some could be SCAM. The Commodity Futures Trading Commission (CFTC) in US has jurisdiction over all Futures and Forex activity. When trading in the foreign exchange markets, individuals should only trade with a CFTC registered entity that is also a member of the National Futures Association (NFA) and is regulated by the CFTC. For non-US broker/ bank entities, be sure that the broker or bank is registered with that country's appropriate regulatory bodies.

The Forex account could be opened with any amount between $300 (mini) and $2000 (standard). After opening the account, a person is required to learn how the Forex market works, demo trade and after a while go live trading. Moreover, there are some secrets that have to be followed.

A person can also apply all the secrets when demo trading and can see if the secrets really work. It could be said without any doubt that if someone can apply all the secrets in right way, he/she can easily gain good money by way of Forex trading.

All successful traders have Forex trading strategies that they follow to make profitable trades. These Forex trading strategies are generally based on a strategy that allows them to find good trades. And the strategy is based on some form of market analysis. Successful traders need some ways to interpret and even predict the movements of the market.

There are two basic approaches to analyzing the movements of the Forex market. These are Technical Analysis and Fundamental Analysis. However, technical analysis is much more likely to be used by traders. Still, it's good to have an understanding of both types of analysis, so that you can decide which type would work best for your Forex trading strategies.

There has been misconception about the Forex market because there are different types of traders and advert out there full of exaggerations that makes the business unreal to so many people and that is why I am here to show you the SECRETS in Forex Trading.

What is traded on the Forex market? The answer is money. Forex trading is where the currency of one nation is traded for that of another. Therefore, Forex trading is always traded in pairs and the most commonly traded currency pairs are traded against the US Dollar (USD). They are called 'the Majors'. The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY); and the Swiss Franc (USD/CHF). The notable 'commodity' currency pairs that traded are the Canadian Dollar (USD/CAD) and the Australian Dollar AUD/USD. Because there is no central exchange for the Forex market, these pairs and their crosses are traded over the telephone and online through a global network of banks, multinational corporations, importers and exporters, brokers and currency traders. But if you really want to make it big in the Forex market, I will strongly advise that as a "beginner" in the business. Kindly get acquainted with one or two major currency pairs. Study them very well and make sure you understand their volatility period.

And to further simplify Forex trading, you could easily limit your trading to the two most liquid and widely traded pairs, the EUR/USD and the GBP/USD. This really starts to reduce demands on your time for trading activities without giving up good profit potential.

Traditionally, currency trading has been a 'professionals only' market available exclusively to banks and large institutions, however, because of the invention of the new E-economy, online Forex trading firms are now able to offer trading accounts to 'retail' traders like you and I. Now almost anyone with a computer and an Internet connection can trade currencies just like the world's largest banks do.

Do you want to know how to trade the forex market without losing a dime?Then go over to [http://quickforexpips.blogspot.com] you will get free tons of information there.

Forex Secret - Forex Literature As A 90-95% Of The Traders Loose Their Deposit (Part I)

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:22:00 +0000

This delusion globally entails identical aftermaths: 90-95% of traders turn steady to loose their deposits having studied books by Bill Williams, Alexander Elder, Thomas Demark, J. Schwager, et al.

Following the burn down of their first deposit trader's plunge themselves again into scrutinizing Forex scholars, in this manner suffering losses of the second, the third and subsequent deposit. I will hereinafter try to elucidate where from the above regularity grows, so that no trader repeats his forerunners' mistakes.

This statistics is common knowledge: 90% of traders constitute Forex losers... But the figure has always been giving rise to a leviathan of my doubts. It isn't because of somewhat different 95%-5% loser-to-winner ratio quoted in the Van Tarp and Brian June "Intraday trading: secrets of mastership". With 90% quoted universally, there naturally emerges the question, as to whether there is someone capable to check, to specify or to disprove the above figure.

NO ONE IS, besides the directors of largest Western banks providing streamline Forex quotes, but having never raised the issue.

WHY? Because should this statistics be published, there will be sharp and ultimate decline in number of those chasing easy profits from the world Forex market. Otherwise banks would not keep mum in advertising purposes. Neither would they be silent if losers constituted at least by few points less than 90%. In any advertising, customer attraction is ensured by quoting beneficial maxima and non-lucrative minima. This has always been, is being and will always be a universal practice.

As a conclusion, 10% Forex winners is a maximum result among traders. It's them, who have understood Forex market absolutely simple truisms and who attained steady daily earnings in amounts being gained by others within years or even the whole of life.

Certainly, those are to be recollected, who in late 80s were the first in the ex-USSR to grasp laws of commerce and who began accumulating their initial stock. The rules used to be so simple that presently any schoolboy or a first-year student can show the way the capital might have been easily scraped up and augmented on the USSR debris and in the course of market relations being established in the post-Soviet space.

I do exactly allow for the fact that through the years a new generation will be laughing at the way we are now incapable to comprehend the laws, where under currency rates either spike up or fall down, all of a sudden.

With this provision, those seeking fast money at Forex have a much greater time limit than the ones engaged in capital building in the post-Soviet space (Forex market is incommensurably greater than that in the ex-USSR), but not to the extent thought by many.

By now trends are thoroughly less numerous than they used to be 10-20 years ago. By way of taking a glance the charts history You are in the position to understand the way traders used to earn under 20- 40 pts spread, commission and slippage. A trend was followed by a trend at that epoch.

AND WHAT'S NOW? Nowadays many of traders are impotent to gain under 3 pts spread without commission and slippage.

Thus, this book is intended for those willing to perceive Forex market laws.

In order to get understanding of the way 5-10% of successful traders obtain profits, let's at the outset analyze the reasons and the way the outstanding 90% of traders suffer losses. The 90%-figure looks scaring, to say nothing of 95% or 98%. It occurs despite the amount of literature on the issue equals to hundreds of fundamental books, written by authors, having gained capitals expressed by means of more than 7-digit figures (G. Soros, B. Williams, A. Elder, T. Demark).

Thus, the above minimum of 90% of smart, well-read, broad-knowledged people:

- scrutinize the really great traders' heritage;

- open accounts with Forex Broker's and banks, start trading and...

- loose funds up to complete rout!

AND WHERE'S THE LOGIC? The answer springs to mind by itself... There's something wrong in the literature (by the way, recognized throughout the world, where the deposit-killing statistics is as disappointing as it is in our country) so long as its studying yields such oppressive results.

STRANGE? No, rather natural, than strange on account of the following:

1. Being a great trader is not indicative of everyone being a great teacher.

2. Multitude of rules elaborated by scholars 10-40 years ago, has grown obsolete, since the Forex market is changing.

3. The scholars HAVE NOT revealed ALL the secrets even WITHIN THE FRAMEWORK OF THE THEN

FOREX, therefore by now their advice and recommendation turn out either obsolete or naïve.

Thus, once one's advice and recommendations bring every 9 of 10 market participants to loose their money in each country, where one's books have used to be published and have enjoyed all sorts of hosanna in the press, THEN ONE IS NONE OF A TEACHER.

Naturally, no trader will reveal his professional secrets to the full. But when studying Forex literature one gets astonished by a negligible extent the above secrets are "confided" at all, with a book on Forex containing 99% of common truth and 1% only of useful novelties. But should one train up even several thousands perspective traders, one will in no way burden oneself with competitors, due to the Forex market huge sale nature. Beyond a shadow of a doubt the above traders are really great. You may agree or not, but anyone, having earned USD1 bn or more, deserves being named "great". So, one's books should be published as memoirs. I am not attaching any irony hereto, since these persons have acquired gains by virtue of their minds and labor, as opposite to Rockfellers, who inherited their fortunes or to Russian oligarchs, who either stole or got their capitals dirt-cheap from state authorities.

Hopefully, understandable is the difference between such editions and manuals for beginners.

G. Kasparov, say, is far from writing manuals for chess beginners, since the job can be better completed by others with this fact not at all undermining Kasparov's being a great chess player. And his advice and recommendation is sure to be of interest rather to a close circle of grand masters, than to those having touched the chess for the first time.

Actually Kasparov is but to be respected for not being tempted by the lust for fast money, by virtue of his name in the chess world and by way of cooking up manuals for beginners.

At Forex, by contrast, and for some reason, everyone deems oneself a teacher, which fact results in millions educated people worldwide leaving stock market being disappointed, angry with an inferiority complex life-time pursuit.

And hence, the unanswered question for them: is that all a fraud or not, since gains are midget, whereas losses are titanic?

I am recalling the book titled "The Alchemy of Finance" by G. Soros (the one I've read in early 90-s). I admit, it's interesting, instructive..., but it is all narrated in so an inarticulate and tangled manner. As indicated in the foreword by an American investor, the theory has hardly been understood by few only.

So what's the use of writing in such a manner? A theory may generally be complicated to any extent, BUT IT MUST BE wrapped in a simple, clear and understandable wording.

You are welcome to attempt to read the above book once You have time to. Shortly, the Soros reflexivity theory of the countries' cyclic development may easily bear a couple-sentence confinement:

1. Following liberation from totalitarian yoke, a country is granted credits, then, there is a rapid growth and flourish of economy.

2. As soon as the above credits are to be paid back, a country's economy faces a natural recession.

Is it as difficult? The question may be addressed to a schoolboy (to say nothing of an American investor): when should those countries' companies' shares be purchased and when they are to be advantageously sold in order to acquire maximum profit? What's going to happen in case one is too late to sell the shares, shortly exhibiting an impetuous growth in price?

Propounded long before, the Soros theory has been entirely corroborated in August, 98 by the dismal practice established in Asian and Pacific countries and later in Russia.

There still is another question: how inarticulate should Soros have been to enable his theory to be grasped by few only?

The second part of the book is not worth retelling. Reading its original is sure to be much more instructive with my annotation leaving no conundrums therein.

The theory is permeated by Soros's strategy: enter long on what's shortly going to enjoy price growth with a 100% probability and "pull out" Your money along with profits before the companies enter crisis, thus facilitating bankruptcies thereof.

This is the way I clearly lecture my students on Forex-related complexities, thus conveying my logics to them. Despite its own complexities (news, TA, corrective actions, etc.), Forex is essentially reduced to a very simple truth: at a certain moment one should not be late with going long or short on a currency with "tertium non datum".

And when asked if the Williams Alligator needs something to be added thereto, the majority of my students reply "Yes!", indicating what exactly is to be added.

I'll present a detailed vivisection of the issue in a separate chapter by way of proving that the Williams Alligator is but 50% effective.

Fig. 4. H1 EUR chart as of April 12, 2005. (See Note below)

The Alligator's jaws display upward opening with a fractal formed at 1.3006. According to Williams, one should enter long one point higher, i.e. at 1.3007. Upward motion continues extra 11 points. Then the rate sharply swivels to fall down by 170 pts.

Another example.

Fig. 5. H1 EUR chart as of April 22, 2005. (See Note below)

Please, figure out 1.3094, 16 pts above the previous fractal, following the Alligator upward opening. Thereafter, a sharp down swivel covering 140 pts.

Hundreds of similar examples may be drawn. But what are the implications?

With the Alligator's mouth opened, 50% of entries should be pro-Williams while the outstanding 50% - counter-Williams (i.e. vectored opposite to the Alligator mouth opening). When embarking on Forex, You must possess clear knowledge of the difference between either of the above 50%-portions. Otherwise..., You are doomed to loose even if You follow Williams's technique, let alone other ones.

Even my students are in the position to advise what is to be added to Alligator in order to realize proper entry vectoring. Least of all would I want this example to be taken as a personal criticism of Bill Williams, whose contribution to the Forex theory is a significant one. And the majority of traders, like me, used to begin earning after studying HIS books. But not to go astray..., even without any addenda Williams managed to make a tremendous fortune, since a skilled trader (moreover being the Alligator's father) is capable to differentiate between a steady travel and a pullback, or, say, a flat, or, visa versa, a trend low for the entry to be vectored oppositely. It is all fairly understandable for an experienced trader. But what about beginners as regards their interpretation of a flat, a recovery or a trend change?

These folks are sure to require assistance, especially, in information not presented in literature on Forex.

Without this knowledge a trader will never perceive the ABCs of stable daily earnings. But why the Forex scholars do not clear out the issue? This query is to be addressed to them, not to me. While reading these opuses, I am getting horrified at the fact that we are being foisted expensive high-sounding titled books, which are not going to ever teach a trader how to attain profits at the market.

Let's open one of them (E. Nayman's "Trader's Minor Encyclopedia" and "Master-trading: Secret Files") to get the understanding of the way almost all the books on Forex are written and supposed to have the price of USD20-100.

You may agree or not, but the name looks very beautiful and pretentious: "Master-trading: Secret Files", 320 pages of sheer secrets...

HOWEVER, I HAVEN'T FOUND ANY SECRETS THERE! You are welcome to discuss an argue Yourself:

1. "The interrelation between fundamental factors and exchange rate dynamics" being a detailed story of how a country's macroeconomic growing, benign rumors trading and political stability promote the exchange rate growth.

A "valuable" secret to be practically encountered in any Forex edition. But below is a real FA secret (not paid any attention to by Nayman): why does currency use to reverse against its country's economic news? A whole chapter here will be dedicated to the issue.

2. "Construction of two moving averages on a single chart and twin combinations thereof". The author furnishes a "wise" recommendation: entries should be made in the direction the MAs diverge (adding secretly that the most effective MA combination is 21, 55, 89, etc., as per Fibonacci).

The pseudo-secret nature of the above recommendation underlies the fact that any MA combination (should it be 21+55, as the author's; 10+20 as in many Western trading systems; 5+8+13 as per B. Williams or 1+21 as used by numerous traders) yields the same results.

Ok. It all looks great. However, E. Nayman et al., seem to have circumvented the MA intersection chief secret, through which traders suffer constant losses: a "lighter" MA has crossed a "heavier" one, say, upwards, but... thereafter there is sharp downturn resulting in the MAs intersection again.

Fig. 6. GBPUSD H1 chart as of April, 21-26, 2005. (See Note below)

A fivefold reciprocating crossing of MA 21 and 55. You are welcome to calculate traders' losses.

Now, let's call it a day with examples. The MA intersection technique operates perfectly in certain circumstances, while turning out impotent in others, thus inflicting losses upon traders. No criteria have ever been stipulated by Forex scholars as to entries to be effected pro- or counter-divergence of moving averages.

3. MACD construction and analysis. What sort of secret may one expect from the following statement of Nayman's: "a subsequent high being lower than the preceding one suggests a bullish trend depletion or even its changing with the same being visa versa under minimum MACD values". Much of a secret, isn't it? I thought it were the MACD operation principle, familiar to any Forex novice. The secret-fancier B. Williams hasn't even taken effort to advise to perform inputs change from 9, 12, 26 into 5, 34, 5 to provide for a lag killer.

Assuming the above, authentic MACD secrets are not paid any attention to by scholar, which fact inflicts losses upon traders. The situation comes into effect, when upon a divergence formation, no trend change is observed with another same-trend wave taking place instead.

Fig. 7. GBPUSD H1 chart as of April, 2005, where MA21 crosses MA55 with slight rise and sharp downturn. (See Note below)

Another example:

Fig. 8. GBPUSD H1 chart as of May, 2005: a divergence with MA10 upward crossing MA21; a brief nudge up to 1.8916 and a sharp downturn. (See Note below)

As different from Nayman and other Forex scholars, we'll touch in detail upon the ways to detect when MACD is trustworthy as a trend reversal attribute and when it is not.

4. TA classical patterns. One can not help smiling at the author sharing a secret of "head'n'shoulders" and "double bottom" patterns, being studied by beginners at the earliest lectures on Forex.

And here goes a real key secret: in what cases the patterns are indeed indicative of a reversal but in what cases brokers trap TA pattern-fanciers? Is there someone doubting the fact that patterns are known not only to traders, but as well to brokers with their mouths watering to make a rod for the backs of lovers and connoisseurs of the above patterns, just like on the sample chart below:

Fig. 9. GBPUSD H1 chart as of May, 09-11, 2005, a classical "inverted H&S" (See Note below)

At 1.8871 there's an impetuous upward breakthrough, the Alligator rotating upwards, MACD above zero, MA8 having intersected MA21 upwards, the Williams vaunted Awesome Oscillator signaling long entry, the Accelerator Oscillator pointing up... nevertheless, the rate reaches as far as 1.8916 and slips down to 1.8481 by 450 pts.

To be noted: much worth scrutinizing is the phenomenon of Nayman's "Trader's Minor Encyclopedia" and "Master-trading: secret files" purported at understanding why over 90% of traders turn losers after reading the books.

The solution, to my mind, is that the above opuses are but good "ABCs OF FOREX" thus giving birth to all Nayman's merits and demerits.

The guy is primarily awardable for having spared beginners' paying USD50-200 to various Forex training courses or academies. Instead, one can download and study Nayman's books, whose extracts are, by the way, quoted to trainees during their studies.

Nayman is generally to be expressed gratitude to, because of his having laid out the Forex basic course in a competent, popular and accessible way.

This is the point, I elucidate to every beginner, being introduced to me: first one should scrutinize Nayman's books, then only it's worth discussing hooks and crooks of earning at Forex instead of loosing.

Nevertheless, there is a chief Nayman's self-delusion about his folios really being in no way secret files with no one being able to find anything new to enable oneself to improve one's Forex earnings. These books containing neither unique techniques nor non-standard solutions are famous for the generalization and systematization of what has been the Forex knowledge prior to Nayman.

But this fact is not realized by majority gripped by the "Master-trading: Secret Files" fascination, who open live accounts and turn losers inevitably.

Shortly upon their pre-mature success on demo accounts these folks hastened to open live accounts and faced losses. But since the Dealers' staff managed to convince them in the incidental nature of the above losses, the folks ventured to go live again and did again turn to be deposit killers.

With these facts being proclaimed, I don't hold it appropriate to call any statistics science for help. Any sensible man is to get the understanding of the above losses as not being of an incidental nature.

There could be NO OTHER WAY about it.

The next trader training level comprises books by B. Williams: "Trading Chaos" and "New aspects of exchange trading", where the author propounds his own Forex trading methods along with advertising the other ones', viz. Elliott's.

My book, "Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders" is purported at developing of THAT particular school of training traders to practical operation at Forex.

Hardly will anyone object to the fact that B. Williams will disclose his Forex intimacies free of charge. Neither will he furnish their 100% disclosure after being paid to.

In all his splendor, Williams possessed sufficient knowledge to;

- to share A PORTION of his secrets in his "Trading Chaos";

- to share A PORTION of his secrets as a paid training;

- not to share A PORTION of his secrets in the least.

My book, "Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders" is also dedicated to teaching how the Williams secret methods are to be decoded properly to ensure successful Forex trading capabilities.

Each of my book's 20 chapters is permeated with a common logic aimed at finding relevant discrepancies in literature on Forex and at presenting my personal technique of Forex trading.

B. Williams declares being capable of analyzing tens of currency pairs (of 140-bar history each) that within tens of minutes, but in no way does he explain how to, whereas, I explain, that it's feasible for any wide-screen trader, provided my computer monitor being 3-currency capable only (see: "Ally and adversary currencies").

B. Williams sings about his magic Alligator, while I disclose and eliminate its pitfalls by, say, adding a MA233 thereto. This arrangement visualizes the whole of the 4 potential currency travel options: up/down above MA233; up/down under MA233.

B. Williams lists a stop-loss to be a "safety cushion", whereas I disclose and eliminate its shortcomings by way of alternatively using my own pending orders.

B. Williams hold trades volume to be authentic resistance breakthrough criterion, while I quote reasons by which trades volume turns to be deceptive on Metatrader platforms (thanks to the banks Consortium) and I introduce my own levels true/false breach criteria.

Now, regarding trading on news, I demonstrate the way one can turn a loser if trade like all the others and I offer my own on-news trading style.

(See continuation of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part II)

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org

Forex Nitty Gritty - Finally, a Forex Trading Course For Beginners!

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:19:00 +0000

Forex trading in the trading and investing world has become what Texas Holdem is to the poker world. It has exploded, with over $3.5 trillion being traded every day. Forex is a zero sum market. That means there are winners, and an equal number of losers. Generally, retail Forex traders like you and I are on the losing side. But educated investors CAN and ARE on the winning side.

The truth is, 95% of retail traders lose money in the Forex market. They get frustrated, try system after system, and still lose money. The market is full of gimmicks and "unbeatable" robots that will trade for you making you thousands overnight while you sleep. To be successful in Forex Trading, we have to become independent traders. We can't depend on some forex robot to trade our money for us in the hopes that we make thousands of dollars. We can't depend on other people to trade our money for us, like managed broker accounts. They get paid on the number of trades they make, not whether we are profitable or not. Bottom line is that nobody cares about our forex trading success and our financial well being as much as we do ourselves. Become an educated investor and trader, and you will be more successful.

THE TRUTH ABOUT FOREX

People are flocking to Forex trading with the dream of the old California gold rush. Billions of dollars can be made, all you need to do is get your hands on some of it, right? But if it is so easy, and you can plug in a robot, or give somebody your money to trade for you, how come you are the only one to keep losing your money? You're not. Forex trading has become an industry for predators in search of prey. They sell you on gimmicks and get rich quick schemes. It all sounds great, especially for the low price of $97 - $247 on average. And you don't even have to work at it, or educate yourself, or spend any time at all on trading forex! Woooo hoooo!

One of the latest crazes to hit the Forex Market lately are these so called Forex Robots, or Automated Trading Systems. In a nutshell, you buy this program, install it, turn it on, and it makes you money without you having to know anything about forex trading at all. You can "double your account in 30 days" even while you sleep. No education. No work. You don't even need to know what Forex IS, much less how to trade it. Just buy this or that robot that will trade for you and make you thousands of dollars every month. A dream come true.

Well, robots don't work. If they did, those top banks and financial institutions certainly would be using them and not have fallen to financial woes. Beyond that, just so we can say this with authority, we have tested one of the biggest money making robots on the market today, FAP Turbo. It makes a LOT of money... for the guys selling it, not for the people buying it. Sure, some people make money with it. A blind horse is bound to find water ONCE in a WHILE, right?

However, if you want to do a little work, and educate yourself a little bit, and learn the proper way to trade Forex, then there is a new course on the market just for you. Forex Nitty Gritty is just that course.

30+ Year Trading Expert and Mentor Bill Poulos Creates Forex Nitty Gritty

Bill Poulos is a veteran trader with over 30 years of practical experience. He has helped and mentored thousands of investors make even more money in the market by teaching solid methods based on sound fundamental trading principles and methods.

All of his courses cost several hundred to several thousands of dollars, and WELL WORTH every penny. I myself have used his Forex Profit Accelerator course and obtained returns of 58% per month on average for the past 7 months. Yes, I can show you the actual broker trade data and prove it.

But he wants to help the beginning traders now. And he is mentoring Forex Nitty Gritty for only $97 at the time of this writing. In a personal phone discussion with him, he did tell me that one of the reasons was so that he can help teach people that are new to forex, or that haven't succeeded in forex, because he wanted to later sell them the more expensive advanced courses. (Hows that for honesty?). But I'll be honest here, his main goal is to keep people from making the basic mistakes that wipe out their trading account. Bill Poulos is passionate about helping people to learn and understand the Forex market, and to be able to trade it successfully. Yes, he likes the money his students give him. But he really doesn't need it. He has made a great deal of money trading, and mentoring people, and really has no need for more. He could retire this minute, very well off and never look back. But he WANTS to help people learn to trade successfully. So why does he charge so much for his courses? Because it gives the people learning them value and desire to learn. If he mentored people for free, those people just wouldn't care to learn as much. It's a fact. Scientifically proven. Not to mention that his time IS valuable, and he deserves a little something for giving 30+ years of knowledge to his students.

But Forex Nitty Gritty is different. It is an entry level course for new forex traders, or people that have been in the forex market and not been successful. People that have gotten ripped off by the gimmicks and robots and the unscrupulous "trainers" that really have no business taking peoples money. Bill knows exactly what causes failure in the markets, and he is teaching people that, and much more.

HOW TO SUCCEED IN FOREX TRADING WITH FOREX NITTY GRITTY AND BILL POULOS

There are many things you must do, and many more you must avoid, in order to succeed in Forex trading. Bill Poulos teaches you them in Forex Nitty Gritty.

One of them is that you must focus on high probability, low-risk trades. Nothing more. This means you only take the trades that have the highest probability of being profitable, and the lowest risk of losing your trading account value. Generally this will cause you to have fewer trades, but they will be quality trades and generally more profitable. You will stop trading the less desirable trades that have a higher degree of moving against you. And that means you will win trades with higher profits than the losses you sustain. And yes, you will have losses. But the wins more than make up for that, making you profitable.

With Forex Nitty Gritty, you will only have to spend about 20 minutes a day trading. You will identify any new trades, and manage current trades. You will set entry prices, stop losses, and take profit orders. You will practise good money management rules that will increase your potential profit and lower your overall risk. And yes, it will only take you about 20 minutes a night.

Forex Nitty Gritty also includes optional daily videos that show various trade setups, to help you learn the market the right way. And videos teaching you the basics of forex, and forex trading. The Forex Nitty Gritty Insiders website has a lot of core information and training to help the new traders, or those of us that want to learn how to be more profitable.

Like I said, we tested FAP Turbo, and several other robots as well. And what we found out through our testing is that it doesn't work. Go ahead and review our testing of Fap Turbo, but don't buy it or any other robot unless you want to risk losing your account balance. Forex Nitty Gritty is not some lame automated trading system. It is a solid course with a great trading method that will help you learn Forex trading and be potentially profitable.

FOREX NITTY GRITTY SUMMARY

If you are new to trading in the Forex Market, or you've had problems being profitable, or you've ever had your account wiped out by those "Holy Grail" forex robots and automated trading systems, then Forex Nitty Gritty is for YOU. Learn Forex Nitty Gritty and you too can potentially generate consistent profits while learning how to be among the 5% of retail forex traders that are successful.

Happy Trading!

Get a full and detailed Forex Nitty Gritty Review [http://forexmasteryblog.com/forex-nitty-gritty-review/forex-nitty-gritty-review]

Mark K.

What are Your Options Regarding Forex Options Brokers?

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:17:00 +0000

Forex option brokers can generally be divided into two separate categories: forex brokers who offer online forex option trading platforms and forex brokers who only broker forex option trading via telephone trades placed through a dealing/brokerage desk. A few forex option brokers offer both online forex option trading as well a dealing/brokerage desk for investors who prefer to place orders through a live forex option broker.

The trading account minimums required by different forex option brokers vary from a few thousand dollars to over fifty thousand dollars. Also, forex option brokers may require investors to trade forex options contracts having minimum notional values (contract sizes) up to $500,000. Last, but not least, certain types of forex option contracts can be entered into and exited at any time while other types of forex option contracts lock you in until expiration or settlement. Depending on the type of forex option contract you enter into, you might get stuck the wrong way with an option contract that you can not trade out of. Before trading, investors should inquire with their forex option brokers about initial trading account minimums, required contract size minimums and contract liquidity.

There are a number of different forex option trading products offered to investors by forex option brokers. We believe it is extremely important for investors to understand the distinctly different risk characteristics of each of the forex option trading products mentioned below that are offered by firms that broker forex options.

Plain Vanilla Forex Options Broker - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic option contracts that are traded through an over-the-counter (OTC) forex dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or forex put option contract.

There are only a few forex option broker/dealers who offer plain vanilla forex options online with real-time streaming quotes 24 hours a day. Most forex option brokers and banks only broker forex options via telephone. Vanilla forex options for major currencies have good liquidity and you can easily enter the market long or short, or exit the market any time day or night.

Vanilla forex option contracts can be used in combination with each other and/or with spot forex contracts to form a basic strategy such as writing a covered call, or much more complex forex trading strategies such as butterflies, strangles, ratio spreads, synthetics, etc. Also, plain vanilla options are often the basis of forex option trading strategies known as exotic options.

Exotic Forex Options Broker - First, it is important to note that there a couple of different forex definitions for "exotic" and we don't want anyone getting confused. The first definition of a forex "exotic" refers to any individual currency that is less broadly traded than the major currencies. The second forex definition for "exotic" is the one we refer to on this website - a forex option contract (trading strategy) that is a derivative of a standard vanilla forex option contract.

To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.

Exotic forex options are generally traded by commercial and institutional investors rather than retail forex traders, so we won't spend too much time covering exotic forex options brokers. Examples of exotic forex options would include Asian options (average price options or "APO's"), barrier options (payout depends on whether or not the underlying reaches a certain price level or not), baskets (payout depends on more than one currency or a "basket" of currencies), binary options (the payout is cash-or-nothing if underlying does not reach strike price), lookback options (payout is based on maximum or minimum price reached during life of the contract), compound options (options on options with multiple strikes and exercise dates), spread options, chooser options, packages and so on. Exotic options can be tailored to a specific trader's needs, therefore, exotic options contract types change and evolve over time to suit those ever-changing needs.

Since exotic forex options contracts are usually specifically tailored to an individual investor, most of the exotic options business in transacted over the telephone through forex option brokers. There are, however, a handful of forex option brokers who offer "if touched" forex options or "single payment" forex options contracts online whereby an investor can specify an amount he or she is willing to risk in exchange for a specified payout amount if the underlying price reaches a certain strike price (price level). These transactions offered by legitimate online forex brokers can be considered a type of "exotic" option. However, we have noticed that the premiums charged for these types of contracts can be higher than plain vanilla option contracts with similar strike prices and you can not sell out of the option position once you have purchased this type of option - you can only attempt to offset the position with a separate risk management strategy. As a trade-off for getting to choose the dollar amount you want to risk and the payout you wish to receive, you pay a premium and sacrifice liquidity. We would encourage investors to compare premiums before investing in these kinds of options and also make sure the brokerage firm is reputable.

Again, it is fairly easy and liquid to enter into an exotic forex option contract but it is important to note that depending on the type of exotic option contract, there may be little to no liquidity at all if you wanted to exit the position.

Firms Offering Forex Option "Betting" - A number of new firms have popped up over the last year offering forex "betting." Though some may be legitimate, a number of these firms are either off-shore entities or located in some other remote location. We generally do not consider these to be forex brokerage firms. Many do not appear to be regulated by any government agency and we strongly suggest investors perform due diligence before investing with any forex betting firms. Invest at your own risk with these firms.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Options Brokerage

Forex Trading Course - A Must for Forex Beginners

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:16:00 +0000

In the world's major economic Marketplace where exchanges achieve up to trillions of dollars each day, many people would really want to take part in this Marketplace. Aside from being the major financial Marketplace in the world, Forex is also the most liquid Marketplace in the world where trades are completed 24 hours a day.

A lot of Traders have turn out to be extremely wealthy Trading in the Forex Marketplace. And, many people who trade in the Forex Marketplace on a daily basis have found a great way to replace their day jobs. Some even became millionaires almost overnight by just Trading in this economic Marketplace.

Trading in the Forex Marketplace can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex Marketplace. It is true that the Forex Marketplace offers a very good money-making opportunity to a lot of people, but it also has its risks.

It is a fact that people who didn't have the right knowledge and skills Trading in the Forex Marketplace suffered huge financial losses and some even went into debt. So, before you enter the Forex Marketplace, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.

Many people who were doing well in the Forex Marketplace have went through a Forex Course to get the knowledge and skills needed to successfully trade in this very liquid and very large economic Marketplace.

In a Forex Trading Education, you will learn about when it is the right time to buy or sell, chart the movements, spot Marketplace trends and also know how to use the different Trading platforms available in the Forex Marketplace.

You will also be familiarized with the terminologies used in the Forex Marketplace. Even the basic knowledge about Trading in the Forex Marketplace can be a great help with your money-making venture in the world's largest Marketplace.

There are different Forex Trading lessons offered, all you need to do is select one that suits your requirements as a trader. Even crash courses where all the basic things about Forex will be taught to you in a short period of time, full time online courses, where you will learn all about Forex through the internet and there are also full time real life classroom courses where you can learn the ropes about Forex in a real classroom with a live professor.

You can also become an apprentice. On the other hand, in order to become skilled at a lot about Forex as an apprentice, you need to make sure that you have a seasoned Forex trader who can share a lot of things to you about the Forex Marketplace.

Forex Trading Online - 5 Reasons Why You Should.

o Forex never sleeps

o Forex Trading online offers great leverage

o Forex prices are predictable

o Forex trading online is commission free

o Forex trading online is instant

The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds.

Since this is all done electronically with no humans involved, there is little to slow it down!

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!

A high-quality Forex Trading lessons will also clarify a lot about the primary and technical analysis of charts. As a trader, knowing how to analyze a chart is an essential skill that you should have. So, when you are looking for a Forex Trading lessons, you should look for a lessons that offers essential and technical analysis instruction.

Stress plays a vital part in Forex Traders. Knowing how to deal with stress is also a skill that you should develop. A good Forex Trading Education should teach you how to deal with stress and trade successfully and efficiently.

As much as possible, you should look for a Forex Skill that offer real Trading systems where students can trade real currency on the Forex Marketplace or at least trade on dummy accounts in a simulated Forex Marketplace. This hands-on knowledge will greatly benefit you. In addition, the best way to learn about anything is by actually experiencing it. Live Trading and simulations should be offered in a Forex Trading course.

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!

Zevs Borealis is the founder of a number of Forex Trading Sites. You can find more info about Forex Trading Online on: More Forex Trading Info [http://www.forextradingwebsite.com] You may publish the article on your website. If you do, not change the article, and include all html as direct links to our site.

Forex Options Market Overview

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:13:00 +0000

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms.

Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.

Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.

Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."

The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.

The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.

On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.

Foreign currency options expires worthless if, at the time the foreign currency option expires, the strike price is "out-of-the-money." In simplest terms, a foreign currency option is "out-of-the-money" if the underlying foreign currency spot price is lower than a foreign currency call option's strike price, or the underlying foreign currency spot price is higher than a put option's strike price. Once a foreign currency option has expired worthless, the foreign currency option contract itself expires and neither the buyer nor the seller have any further obligation to the other party.

The Forex Option Seller - The foreign currency option seller may also be called the "writer" or "grantor" of a foreign currency option contract. The seller of a foreign currency option is contractually obligated to take the opposite underlying foreign currency spot position if the buyer exercises his right. In return for the premium paid by the buyer, the seller assumes the risk of taking a possible adverse position at a later point in time in the foreign currency spot market.

Initially, the foreign currency option seller collects the premium paid by the foreign currency option buyer (the buyer's funds will immediately be transferred into the seller's foreign currency trading account). The foreign currency option seller must have the funds in his or her account to cover the initial margin requirement. If the markets move in a favorable direction for the seller, the seller will not have to post any more funds for his foreign currency options other than the initial margin requirement. However, if the markets move in an unfavorable direction for the foreign currency options seller, the seller may have to post additional funds to his or her foreign currency trading account to keep the balance in the foreign currency trading account above the maintenance margin requirement.

Just like the buyer, the foreign currency option seller has the choice to either offset (buy back) the foreign currency option contract in the options market prior to expiration, or the seller can choose to hold the foreign currency option contract until expiration. If the foreign currency options seller holds the contract until expiration, one of two scenarios will occur: (1) the seller will take the opposite underlying foreign currency spot position if the buyer exercises the option or (2) the seller will simply let the foreign currency option expire worthless (keeping the entire premium) if the strike price is out-of-the-money.

Please note that "puts" and "calls" are separate foreign currency options contracts and are NOT the opposite side of the same transaction. For every put buyer there is a put seller, and for every call buyer there is a call seller. The foreign currency options buyer pays a premium to the foreign currency options seller in every option transaction.

Forex Call Option - A foreign exchange call option gives the foreign exchange options buyer the right, but not the obligation, to purchase a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.

The Forex Put Option - A foreign exchange put option gives the foreign exchange options buyer the right, but not the obligation, to sell a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Plain Vanilla Forex Options - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic forex option contracts that are traded through an over-the-counter (OTC) forex options dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or a forex put option contract.

Exotic Forex Options - To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.

Intrinsic & Extrinsic Value - The price of an FX option is calculated into two separate parts, the intrinsic value and the extrinsic (time) value.

The intrinsic value of an FX option is defined as the difference between the strike price and the underlying FX spot contract rate (American Style Options) or the FX forward rate (European Style Options). The intrinsic value represents the actual value of the FX option if exercised. Please note that the intrinsic value must be zero (0) or above - if an FX option has no intrinsic value, then the FX option is simply referred to as having no (or zero) intrinsic value (the intrinsic value is never represented as a negative number). An FX option with no intrinsic value is considered "out-of-the-money," an FX option having intrinsic value is considered "in-the-money," and an FX option with a strike price at, or very close to, the underlying FX spot rate is considered "at-the-money."

The extrinsic value of an FX option is commonly referred to as the "time" value and is defined as the value of an FX option beyond the intrinsic value. A number of factors contribute to the calculation of the extrinsic value including, but not limited to, the volatility of the two spot currencies involved, the time left until expiration, the riskless interest rate of both currencies, the spot price of both currencies and the strike price of the FX option. It is important to note that the extrinsic value of FX options erodes as its expiration nears. An FX option with 60 days left to expiration will be worth more than the same FX option that has only 30 days left to expiration. Because there is more time for the underlying FX spot price to possibly move in a favorable direction, FX options sellers demand (and FX options buyers are willing to pay) a larger premium for the extra amount of time.

Volatility - Volatility is considered the most important factor when pricing forex options and it measures movements in the price of the underlying. High volatility increases the probability that the forex option could expire in-the-money and increases the risk to the forex option seller who, in turn, can demand a larger premium. An increase in volatility causes an increase in the price of both call and put options.

Delta - The delta of a forex option is defined as the change in price of a forex option relative to a change in the underlying forex spot rate. A change in a forex option's delta can be influenced by a change in the underlying forex spot rate, a change in volatility, a change in the riskless interest rate of the underlying spot currencies or simply by the passage of time (nearing of the expiration date).

The delta must always be calculated in a range of zero to one (0-1.0). Generally, the delta of a deep out-of-the-money forex option will be closer to zero, the delta of an at-the-money forex option will be near .5 (the probability of exercise is near 50%) and the delta of deep in-the-money forex options will be closer to 1.0. In simplest terms, the closer a forex option's strike price is relative to the underlying spot forex rate, the higher the delta because it is more sensitive to a change in the underlying rate.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Options Brokerage

Forex Currency Trading System Education - The Best Forex Plan For The Forex Currency Trading System

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:10:00 +0000

When entering the Forex currency trading system it is imperative that you devise the best Forex plan. This includes getting the best Forex education training you possibly can before jumping headfirst into the Forex currency trading system. This article will give you a guideline for devising the best Forex plan for fast profits with a proven Forex currency trading system that really works.

The Forex market is the largest trading market in the world. The Forex market is said to turn over more than $1.5 trillion dollars each and every day.

When stepping into the Forex arena it is critical that you have an effective and proven Forex plan to follow to help you perfect the Forex currency trading system and to get the best Forex education as you possibly can.

Step one of any Forex plan is becoming as informed and education as you possibly can on how the Forex currency trading system actually operates. There are many fundamentals and strategies involved with the Forex currency trading system. In order to begin and expand your Forex education you need to enrol in a reputable Forex trading system course online and familarize yourself with the Forex currency market with a Forex simulated trading account.

A Forex simulated trading account does not require any investment of capital. What it does do though is train Forex beginners in the strategies and fundamentals of consistent and profitable Forex trading.

Step two involves expanding your Forex education. A Forex currency trading beginner must learn not to be too greedy too soon. By analysing world and political news and taking all the clues from Forex pivot points a Forex currency trading beginner can learn to minimize his losses with stop loss orders and to maximize his profits.

Step three of the Forex plan involves learning sound Forex investment strategies including the buy signals that the Forex charts frequently give Forex traders.

Step four of the Forex plan involves knowing when the rally for the Euro begins. The busiest hours in the Forex are the London hours which are after 2am New York time.

Step five of the Forex plan for beginners is to actually select that amount that you are willing to make on every Forex trade before you begin trading. This amount ought to be more than or equal to the earnings that you are willing to lose in the Forex trade.

It is tempting to dive into the Forex currency trading market headfirst and make trading decisions without any experience or sound strategies in place. If you want to join the ranks of 90 percent of Forex traders who are consistently unsuccessful then I suggest you ditch this Forex plan and dive right in.

On the other hand, if you want to learn to be a successful trader with a proven and effective Forex currency trading system in place and an almost fool-proof Forex plan then check out the website below where we can help you become the successful Forex trader you long to be.

Start your beginner Forex education tutorials today in Forex trading at [http://www.Best-Forex-Trading-System-Course.com]

Forex Currency Trading - How to Harness Today's Trading Technology

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:06:00 +0000

Self control and discipline can be nurtured and strengthened over time and are extremely valuable qualities to develop. In this article we'll talk about how these qualities relate to current and projected future developments in the Forex industry.

Manual Forex trading is a time-tested and market proven method for trading Forex. There is no doubt that manual Forex trading is here to stay. Many of the most skilled full-time Forex traders prefer this method. The key words here are skilled full-time traders.

You see, manual Forex trading can be time consuming. While the process of Forex technical analysis gets a bit easier and more efficient with practice in manual Forex trading it can never be completely eliminated. Manual Forex traders will always need to complete their technical and perhaps even fundamental analysis prior to executing their Forex trades.

As you know, fundamental Forex analysis has to do with looking at economic indicators within and between nations. Fundamental Forex indicators such as Consumer Price Index, Non-Farm Payroll, Gross National Product, Industrial Production, Producer Price Index, Retail Sales, Balance of Payments and Interest Rates are many of the most common fundamental Forex indicators traders seek to incorporate in their analysis.

Needless to say using both fundamental and technical analysis is quite complex and can be a very time consuming challenge. Except for "news" traders many Forex traders default to primarily using Forex technical analysis.

A prime example of "news" is the Non Farm Payroll announcement. This announcement normally takes place on the first Friday of each month at 8:30am Eastern Time. Forex traders who trade the news position themselves in the market to capture as many PIP's as possible during the market corrections that take place just after a "news" release. Forex traders who trade the news rely quite a bit on fundamental indicators in making their trade decisions.

New Forex software programs that gather and interpret Forex fundamental indicators have been around for a while and they will continue to improve their accuracy with time.

Speaking of Forex software programs, one of the most rapidly developing forms of Forex software are "Expert Advisors". Forex Expert Advisors (EA's for short) are software programs that operate within your Forex trading platform. So far, the industry leading Forex trading platform for EA's is the Metatrader 4 Trading Platform designed by ODL Securities.

There are several advantages to using an EA. Perhaps chief among these advantages is the fact that the "on-board" programming of the EA eliminates the need for the Forex trader to spend a lot of time doing technical analysis. Once an EA is properly initiated, it will automatically trade a specified Forex pair, or pairs, using a predetermined strategy or Forex trading approach.

This can be a huge time-saver.

With an EA the Forex technical analysis is handled by the Forex trading logic programmed into the EA. The EA functions off of a set of predetermined "rules" which guide its operation. The EA enters the Forex trade when the entry conditions are met and exits the Forex trade when the exit conditions are met. Each EA has a different set of predetermined rules. Each rule is typically controlled by one or more user adjustable "switches". These switches are optimized at the time the EA is delivered to the user and can be saved as a switch settings profile. Once the default switch settings are saved, the user can make changes to the switch settings if they wish. It is important to remember that the best way to determine EA switch settings is through the back testing process.

Back testing is a process by which each switch or set of switches are methodically tested using actual past market data from your Forex trading platform. While back testing takes much less time than forward testing it is still a painstaking and time consuming process but the results can be very revealing and informative. This process will tell you such things as, for example, which time frame(s) and currency pair(s) are the most profitable to trade.

Back testing is absolutely necessary in order to optimize the settings for an EA and as such it is very valuable process but the process is not perfect. Data mismatches can occur during the back test process which can degrade the results somewhat. The source of these data mismatches is not known at this time but it is an industry wide problem and the solution to the mismatch problem is being vigorously pursued.

Even with its flaws the back test process remains of utmost importance when it comes to optimizing the performance of any EA.

The time saving nature of using an EA coupled with the stress reducing effect that it has on the Forex trader has boosted the popularity of this kind of Forex trade automation.

It is just this kind of Forex trade automation that is helping to fuel the explosive growth of the retail Forex market. It is no longer necessary to stay glued to your computer monitor and "baby sit" your Forex trades. Not only that but a properly designed EA can perform functions that even the most skilled and experienced Forex traders find difficult. For example, there are EA's on the market today that can trade multiple currency pairs simultaneously. Other EA's can trade multiple Forex hedge trades at the same time!

We are in the midst of a quiet revolution toward increased Forex trade automation. It is safe to say that the trend toward Forex trade atomization is likely to continue and strengthen over the next several years. Because the advantages of using an EA outweigh the disadvantages, the popularity of using EA's is at an all time high and likely to set new records in the near future.

Even though EA's are reducing the need for Forex technical analysis they are not reducing the importance of self-control and discipline. It is common for Forex traders who are new to EA trading to have an urge to "manual" trade using the EA. This is a mistake, first of all it defeats the purpose of the EA and second it can result in preventable loses.

With EA trading the EA is your Forex trading method. The EA trader is well advised to allow the EA to do its work without trying to manually over-ride it (Plan your trade - trade your plan).

If possible, examine the back testing and forward testing results of an EA before you purchase it. Always demo trade with a new EA to confirm its operation before using it in a live account.

EA trading is gaining in popularity by leaps and bounds. EA trading is part of a major trend toward increased automation in the world of Forex. This trend is expected to expand and strengthen in the years ahead.

Being skilled in Forex technical analysis is always an asset but EA trading relies more on the Forex trading logic of the EA than it does the technical skill of the trader.

Self control and discipline are equally important whether you are Forex manual trading or EA

trading. Combine the personal qualities self control and discipline with using a well designed EA and you are on your way to profiting in Forex - the world's largest market.

Disclaimer - This article is for educational purposes only. It is not offered as investment or legal advice. The reader assumes all responsibility for any and all profits or losses incurred by his or her trading activities.

David R. Jaymes makes it easy for you to shorten the learning curve and help you onto the Forex trading Profit curve. To claim your FREE 36 page eBook: Successful Forex Trading Revealed, visit this site now: Forex Trading Site

Free Forex Trading Tip - Forex Global Trading Tips For The Forex Currency Trading System

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:03:00 +0000

As the Forex global currency trading system has the highest volatility of any investment market today, it's absolutely vital that you get access to as many Forex global trading tips to fast track your Forex education and to lock in faster Forex profits. This article will reveal free Forex global trading tips for the volatile Forex currency trading market.

The beauty of the internet is that Forex global traders can now go online pretty much anywhere in the world at any time of day or night and get access to free Forex trading tips. With the right Forex currency trading system, Forex traders can reap large profits with Forex global trading.

There are some qualities that a Forex trader should have to become the best Forex trader he or she can be and to lock in faster Forex profits.

It is absolutely vital that you use proven strategies when buying or selling in the Forex global currency trading system. The best way of achieving this is by consulting reputable Forex charts and graphs that are known to be proven indicators and pivot points to follow when investing in Forex global trading.

Contrary to stock trading, as the global Forex market trades in every currency there is never a threat of insider trading. What separates a successful Forex trader and a consistent Forex loser is the level of their Forex trading education and the fundamentals that they follow in their individual Forex currency trading system.

The more that you can educate yourself about the currencies you are trading in the global Forex market the more accurately you will be able to predict the way these currencies will move and the more profits you will be able to reap.

The most savvy Forex traders understand that the best Forex currency trading system is the one that they have perfected and stuck to, with no exceptions. By creating your very own individual Forex currency trading system and sticking to it you will be virtually able to put your Forex global trades on autopilot as you simply follow the Forex currency trading system that you have already created and that has been proven to work.

Margin trading is a very easy way for Forex beginners to lose their money fast. Don't even venture into this Forex currency trading system until you have perfected your own strategies and know exactly what you are doing.

Forex currency trading is not risk free. It is critical that you bear in mind the volatility of the Forex global currency market in combination with what is going on politically and economically in many countries around the world.

Check out the website below to fast track your Forex education and learn the best Forex business system online with free Forex video tutorials.

Forex Secret - Forex Literature As A 90-95% Of The Traders Lose Their Deposit (Part II)

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:02:00 +0000

(See beginning of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part I)

B. Williams quotes 5 bullets killing a trend, whereas I exemplify their insufficiency and I add up 11 more thereto, not denying the above 5 of them.

B. Williams idealizes the Elliott wave theory, whereas I show that the combination of fives and threes is none the idealizable, otherwise a mankind 100-year development project could have long been elaborated on the basis of Elliott waves pattern, leading to exasperation at the fact that humanity progress does not follow Elliott and Williams. The other thing is that nowadays brokers have mastered the job of manufacturing more waves out of the 5 initially.

The aforesaid is applicable to each of the 20 problems of Forex.

A portion of my live Forex trading methods are to be found in this book, while the other portion thereof is forwarded upon request. Those eager to continue training under my supervision as well as to trade live, please, feel free to contact me on my e-mail address below.

It all could be funny unless it were sad. But IT IS sad, because the above examples are scaring in number. Bearing it in mind, do, go again through excerpts from distinguished scholars books:

- Awesome Oscillator (AO) serves us keys from the Wonderland;

- Accelerator Oscillator (AC) gives us with significant superiority over other traders;

- using AO is similar to reading tomorrow's "Wall Street Journal", while using AC is reading of the day-after-tomorrow's issue thereof;

- by using AO solely, one may attain profits even without any knowledge of current rate; should the oscillator turn down, one may merely ring one's broker and say: "Sell at the market price!".

As You have guessed, these are extracts from B. Williams's "New aspects of Exchange Trade". Have You read the thing? And now, please, give a glance to the a foregoing figure, depicting the way, the vaunted Williams's indicators may entail an abyss of losses.

But what truly makes my blood boil is as follows. B. Williams is a professional psycho therapist and his narrative style is none of an incidental one. This is a suggestive method by virtue whereof he attempts to demonstrate the exclusive, correct and faultless nature of his trading technique. The "faultlessness" is to be discussed in an individual chapter, and my only claim here is that I can easily draw hundreds of examples, where one can bump into loss by way of following Williams's indicators.

By myself, I am an advocate of theory of chaos. But this theory is disclosed by Williams in a very primitive and a superficial manner, which fact results in his blind follower losses. As to the author, he resorts to propaganda methods instead of providing a clearcut distinction between the cases, where the above theory is 100% effective and those, where it is not.

Williams could have explained to his admirers directly, that in these certain instances the theory is to be relied upon, while in these instances it is not to. The difference is in this, this and this. In the former instances one should necessarily enter, whereas in the latter instances one should abstain from entry. But the guy haven't done the job (due to either not being desirous or to not having sufficient knowledge).

I was a success in finding out distinct operability criteria of the Williams's technique. To achieve this, I had to improve the Alligator, by virtue whereof I enabled my students to easily pinpoint the difference between the Williams No.1 option (a trend, encouraging profits) and No.2 option (a flat, inflictive of losses).

By the by, it is supportive of the chaos theory methodological correctness and of imperfect Williams's method structure, plotted on the basis thereof. Instead of acting upon the trader's consciousness Williams resorts to forbidden subconscious programming procedures, thus stimulating man's inherent and acquired instincts as if saying: "If You wanna get rich, follow me! My method empowers one to trade without a single glance at a price! The Awesome Oscillator constitutes a key from a Kingdom!" Etc., etc., etc...

Hence, only 1 of 20 Williams's followers exhibits Forex-earning capabilities in a most favorable environment. Thus, under this statistics, B. Williams is better not to be idolized, the way he has been by the crowd of his admirers. On the other hand, other Forex maestros' trading techniques are far worse than that of B. Williams. So, let's continue illustrating Forex truisms being erroneous in live trading.

- The "Theory of Chaos" of B. Williams. The author has not advised what should be added up thereto. A separate chapter here is dedicated to the issue.

- Trader's psychological problems. I haven't found any revelations pertaining to THE WAYS OF ELIMINATING THESE PROBLEMS.

- The issue of a stop-loss order is certainly important: even under trend hedging is an indispensable protective shield against market surprise. But is the problem too far complicated to require a dozen pages' elucidation? Has the author beheld any secret? Wah! He hasn't noticed anything but he still has repeated all that wanders from book to book on Forex.

Once I was stunned by a question put forward by one of my students after having read B. Williams's "Trading Chaos": what's the use of giving so much attention to the stop-loss problem and above all what's the good of chewing over the role of safety cushions in the automobile industry as though readers are down with minority?

Doubtlessly, it's funny reading that Williams has never violated traffic regulations, priding himself on the occasion. Any psychiatrist could tell a hell lot about such a personality type, although, I should admit that Williams is American, not Russian.

Drawing picturesque, memorizing examples, each scholar is right to insist on protective barrier placement as a loss killer. But there is hardly anyone to introduce certain novelty into the issue and to disclose the secret as to what there should be in the trader's store besides a stop-loss to insure against his deposit melting and extra losses. A separate chapter here is targeted at the issue.

I have shortly come across an aphorism: "Genius is not to the effect, that nothing can be added thereto, but it is to the effect that nothing can be deleted there from".

If You go through numerous books on Forex at this aspect angle, You are sure to surprisingly find out that 90-100% of their contents may be subject to withdrawal. WHY?

BECAUSE nothing new and 100% correct is offered therein. Instead, reiteration is going on of what is familiar to any professional, since everyone is itching to exhibit one's originality by way of retelling: a paramount authority of FA over Forex exchange rates; continuation and reversal patterns; a stop-loss importance; a divergence being a component of a trend reversal, etc., i.e. book-to-book travelers.

"An outstanding Forex trading techniques" and "a genius scholar", etc., making their appearance in books' abstracts and annotations are off springs of 1% originality added up by an author to 99% of common knowledge.

Sale is publisher's primary target, giving birth to "genius" mediocrities and plagiarism. Standing separately among these books are opuses by B. Williams, being admired and scrutinized regularly by the majority of scholars and by myself. But EVEN HE cannot be qualified as "genius" with account to the above formula. He is rather "eccentric" than "genius".

The thing is not, that his technique is addenda-allowing (this fact backs the correct Williams's choice of the chaos theory to be applied to Forex) and I easily managed to add 11 trend-assassinating bullets to the 5 of Williams. The thing is that a number of Williams's postulates ARE WRONG and thus loss- inflictive. These can be and should be subject to removal.

CONCLUSION: I guess, it's understandable by now, that script-writing has turned to be business for scholars, incorporating additional advertising and additional charges for their students. However, the above is not worth millions Forex losers sacrifice.

Much more respect-triggering is Warren Buffet, having made a minimum of USD40 bn at the stock market without writing any books on his trading tactics. W. Buffet is the world's second-rich man after Bill Gates, although this fact being thoroughly doubtable. B. Gates is supposed to declare the whole of his income obtainable from the Microsoft Corporation, whereas W. Buffet, being a trader, is sure to deem himself entitled to show the Inland Revenue what he really wants to.

The difference is fairly evident. The profit obtained from US companies, constituting the Gates official fortune major portion, may be kept track of, as well as the offshore profits may sometimes be properly checked. But Buffet's profits attractable at all. Do You expect a man, lending his own daughter a sum of USD20 against a receipt, to allow ALL of his profits to be taxable by state? Or a moderate portion of profits is sufficient, yeah? It is entirely his job, whereas we are to learn to gain at least a spoonful of what he has acquired during 40 years of his activity at the stock exchange.

Thus, to cut it short: a classical Forex literature exhibits but an anti-scientific unsystematic nature, constituting a "crise de genre" and triggering losses among 90% of beginners, abandoning Forex market.

In what does science differ from a philistine and amateur effort? In a systematic and objective nature, in a methodology perspective. In there any of the above to be found with scholar literature on Forex? No, but instead there is in abundance:

A. Tautology and absence of new approaches. From book to book world-distinguished scholars feed traders (as if the latter were silly little chaps) with stories about R&S levels importance, technical indicators, continuation and reversal patterns, etc., which is as interesting and instructive for a professional trader as ABC reading is for a professor of philology.

B. Absence of integrity. Individually, it is all clear: Elliot waves, Fibonacci levels, resistance levels, reversal patterns, etc. But what's the way it all is interconnected and integrated? In what way it is influential over each other? What is primary and what is secondary? Imagine a doctor diagnoses and cures patients without a slightest idea of interaction of digestive, cardio-vascular and other systems.

This is what exactly happens to Forex beginners. They are sure to have learnt something, but they are being muddleheaded instead of having a systematic knowledge. Medical students undergo a course of anatomy. Geologists and military men make use of topographic maps. And what do Forex beginners have to this end? You are free to interrogate any scientist if he has knowledge of parts of science without having knowledge of the whole. Guess, what he's gonna answer? And now give consideration to what is being currently published on Forex and being accessible to anyone. Thereafter You will easily "evaluate" the "outstanding contribution" made by each of Forex scholars.

4. Methodology and techniques subjectivism and absence of objectivity. See live scholar, Th. Demark's "Technical Analysis As An Emerging Science" recommending to manually draw R&S lines from the right to the left instead of so previously doing from the left to the right. The book's preface qualifies it to be "refined techniques built during a quarter of a century of a laborious scrutiny of market tendencies and projecting methods". And thereinafter: "Demark's empiric-data strictly scientific approaches are in striking difference from an artistic intuitive one thus constituting a rational basis for dynamic systems, mechanically outputting market signals." But, with having not disclosed his system's essence, is Demark aware that his subjective Forex trading suggestions may happen to entail severe mistakes. Yeah, he substantiates his viewpoint in chapter "Why price projections may not go into effect": "...due to no technique being perfect". Good a science with "no technique being perfect"!

Demark is looking rather a philosopher, than a trader with his tirade being nothing but a sophism, made use of as back as in ancient Greece to provide grounds and protection for any kind of absurd.

In accordance to Demark, "a mistake becomes obvious the next day as soon, as the first deal price is registered". I am itching to ask the scholar: "How many points may a currency travel in a wrong direction during an earth day?" I am answering myself: 100 pts or 200 pts or more. Demark diagnoses: "This instance evidences a breach, indicative of a new opposite tendency". Well, I've got it.

Once there is loss, one should loss-close and enter oppositely.

Take a look at the picture below:

Fig.10. EURUSD H1 chart as of March, 22 - April, 18, 2005 manifesting a month-long flat. (See Note below)

How many days should one per-Demark loss-close with the rate repeatedly swiveling as though to Demark's ill luck? The scholar has to be asked, how large should a trader's deposit be to survive Demark's experiments, being ranked "refined techniques" and "strictly scientific approaches", "cardinally different from others' ", less scientific ones, as I can guess.

The opus author will again fall soothing upon You: "One oughtn't to expect herein outlined technical methods and indicators to offer profits and not to entail losses. Forex trading involves both: a profit opportunity and a loss risk. Preceding results are in no way guarantor of perspective success". Further on, with greater cynicism and hypocrisy: "Should You be seeking a trading panacea, put this book aside: it's in no way helpful to You". Well, what's the use of buying the book at such price?

Demark, by the way, gives the interpretation of his book's objective to be "fuelling readers with methodology, encouraging one to systematize various TA techniques". Great! I thought, it were a new discovery of Forex regularities to be delivered to traders. But it looks, like the scholar has plunged himself into systematizing earlier 50%-correct discoveries without taking any pertinent responsibility.

Hence, no avail to purchase the book and to litter one's brain therewith, since Forex rates enjoy 50/50 up-down travel chance, even under the probability theory.

Thus, not too much understandable, where Demark's scientific approach manifestation is to be searched, whereas the essence of things is incomprehensible once the reversal results come evident after an earth day only with no reference to his book.

John G. Murphy, another Forex scholar, outlines in the preface, that the "less art - more science" slogan is specially topical now that greater entities begin taking interest in this area.

As to myself, I have truly appreciated the preface writer Murphy joke as being filled with subtleness and tristesse.

Now, pertaining to science-to-practice correlation and theoretical conclusions implementation... How many scholars of those hundreds referred hereto resort to live examples while teaching long and short entries and close ups thereof? Very few of them:

- B. Williams "Trading Chaos", "New aspects of Exchange Trading";

- J. Murphy "TA of Futures Markets"

- S. Nisson "Japanese candlesticks. Financial markets graphic analysis"

- A. Elder "Basics of Exchange Trading"

- L. Williams. "Long-Term Secrets of Short Term Trade"

- Ch. Lebo, D. Lukas "Computer Analysis of Futures Markets"

- D. Swagger "TA, Comprehensive Course"

... and hardly few more.

Disappointing enough, but it is fairly lucid why 90% of beginners mutate into failures and abandon Forex.

By way of getting familiar with the SYSTEM, one will suddenly realize how smooth are Forex artifacts to get apparent one from another, e.g.: M5 Elliott waves constituting M15 wave I, this wave being but H1 and H4 corrective within certain Fibonacci levels.

One gets clear vision of what all the Forex-traded currencies are doing now and what they are going to in half a day. Williams did have grounds to claim, he needs several tens of minutes to analyze tens of charts. He DID have understood Forex as a system, though he has offered but the system components portrayal in his books. Depending on where utilized, the Alligator may appear to be responsible either for a profit or for a loss. But Williams has not even taken pains to present a differentiation between the Alligator being a profit assistant and the Alligator being a loss bringer.

The above is conditioned by the Williams Alligator being a great TA tool, but pertaining to a certain AREA OF Forex only. Other areas require other TA facilities. I will do my best to teach You to effect proper estimation of long-term and super short-term entries being appropriate for the moment.

I will also dwell on why it is not difficult to add extra 11 trend-killing bullets to the 5 of Williams's; why it is easy to build up a currency travel vector daily projection. The whole thing is minimized to several criteria, being constantly effective irrespective of currency intentions. As a result, You will not have to monthly pay quacking mountebanks' impotent daily forecasts.

But now let's move on with Forex scientific criteria. Stagnation and dogmatism are alternative attributes of Forex folios' anti-scientific substance. Have You ever come across a criticism of any Forex-oriented theory? I mean a weighed objective criticism, assigning credits to the author for elaborating a revolutionary theory, which has by now got obsolete due to a number of objective reasons and thus requires improvement, i.e. replacement.

For instance, I have found nothing of the kind in relation to the 100-year old Dow theory, originally incorporative of benign principles. But life goes on, and there seems no reason to head-hammer life-rectified Dow's postulates:

- a long-term trend (primary, basic as per Dow) being several years long. Curious enough to spot a currency pair to stand open for so a long period;

- a medium-term trend (intermediate tendency) being several months long. As per Dow, the MTT is opposite (corrective) to the basic trend;

- a short-term trend, not exceeding 3 weeks and incarnating minor fluctuations within the intermediate tendency;

- intraday trend being per-Dow midget ripples, not worth paying attention to.

You are now welcome to take a close look at the figures below, as of October, 2004 through March, 2005.

Fig.11. EURUSD D1 chart. (See Note below)

Fig.12. GBPUSD D1 chart. (See Note below)

CONCLUSION: This theory of Dow's might be deemed effective rather till late 80s, than presently.

Nowadays, with 3 pips spread, 50-200 pips pullbacks and trends not exceeding a week, the Dow theory

MUST BE recognized as being despairingly obsolete and trader-hostile, since, under a 3-pip spread, it is, certainly, top of recklessness and stupidity to stand open for months or years. A different trend classification is to be called for, meeting updated Forex environment standards.

I guess there's no need to continue being proponent of the fact that presently Forex theories are obsolete in their majority, with this sort of methodology being requisite for analysts rather than for traders. As opposed, I hold it more appropriate to forward my entry and exit technique to traders willing to conduct successful and loss-safe trading.

By way of prompting: please, attempt to view Forex as a system inclusive of components being familiar to You: Elliott waves, reversal patterns, Fibonacci levels, MAs, ally currencies, etc. All the above staff is integrally intercommunicative rather than existing individually, the way, each organ is in the human body.

I DID have understood it, and I realized the way B. Williams is able to analyze tens of currencies within tens of minutes in order to execute correct long and short entries.

It may look surprising to someone, but a qualified doctor is capable to diagnose Your body hazards after a short examination and talking to You. The doctor has actually examined but several organs, but his knowledge system has empowered him to jump at wider conclusions, as Williams at Forex.

GROSS TOTAL. Steady and regular Forex profits are real opportunity. There is hardly another area which enables one to knock up a fortune without having rich aged relatives abroad, without having to join one's native country's throughout corruptible authorities or else. If You have discovered THAT ANOTHER area, You are free to get engaged therein. Then, Forex is not likely to be requisite.

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

How a Forex Signal Generator Helped Me Generate Profits

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 19:01:00 +0000

For beginners in Forex trading, recognizing Forex signals could be compared to looking for a pin in a very large haystack. Imagine having to stare at fluctuating Forex currency ratings every hour and trying to decipher some semblance of meaning from the combinations only to find that the ratings have changed, yet again. In Forex Trading, investors need to recognize familiar "signals" or movement patterns which mat indicate perfect opportunities for trading. Forex automated trading service providers now offer trading tools which can aid individuals perform basic spot tasks. One of these automated tools is the Forex Signal Generator.

What is a Forex Signal Generator?

A Forex Signal Generator is an important component in Forex Automated Trading. This is a sort of software which is built to complement online Forex Trading Platforms and Forex Expert Advisors (EA). Forex EAs respond to cues or Forex signals which are indicators based on specific currency rating combinations in the Forex market. These cues determine the path which Forex EAs take i.e. should the Forex EA advice/decide to buy this currency or not?

Forex EAs are programmed by algorithms which are supposed to react to common Forex marketing behaviors. Forex signals can be recognized by topnotch human Forex experts who have been amply exposed to the movements of the trade. A beginner who's trying to survive the competition in Forex trading might be lost to the entire "dance" of numerical figures. Forex EAs are built to recognize certain Forex signals which will indicate ideal trading opportunities. For the Forex EA to function, though, these Forex signals must be put into its system/program.

Again, exceptionally good and experienced Forex investors will find it relatively easy to interpret market behavior and come up with effective Forex signals. However, a beginner might not be able to come up with any effective Forex signal for a long time. To buffer losses caused by inexperience, a newbie investor will prefer to avail of a Forex signal generator while s/he is still trying to get the hang of Forex trading. This can allow him to fare better in the tight competition of the Forex scene.

Where can one find a good Forex Signal Generator?

Forex signal generators are usually offered by the same providers which manufacture Forex EAs and administer Forex online platforms. It's advisable to get your Forex signal generators from the same company that provides your platform and EA to ensure that they are all compatible with each other.

Well known Forex signal generators are also reviewed in most online forums. It's good to visit these forums to ensure that the Forex signal generator you are planning to use is recommendable. Newbie investors and companies need to be very careful with black box Forex generators and EAs which abound the market. Scammers are only to quick to ride the bandwagon of Forex Automated Trading.

Get your Forex signal generators from reputable Automated Forex Trading Service providers. It's also good to have at least ample,basic knowledge about Forex trading before embarking into any kind of investment. Think of Automated Forex Trading programs as mere tools to ease the basic tasks of trading. The should, in no way, be considered complete supplements to human trading, analytical and research skills.

Steve Comet is a pseudonym for a group of experienced forex traders. Our team has reviewed all the different forex auto programs that exist, and found out the ones with make money. Check out our forex automated trading reviews

Do Not Worry - Technical Analysis Will Be Done by Automated Forex Trading Signal Systems!

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 18:59:00 +0000

Forex (Foreign Exchange, Forex currency exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.

Forex trading requires a constant monitoring. You can win the forex market if you can monitor the forex market all the time and should be able to analyze it. Trading forex needs a lot of research. Forex trading needs full time effort. Its not so easy to win the forex market just by being a part time trader.

Whether it is full time trader or a part time trader, forex market needs a lot of technical analysis and fundamental analysis. Doing fundamental analysis is really very easier than doing the technical analysis.

A technical analysis is founded on three suppositions:

1. Movement of the market considers everything;

2. Movement of prices is purposeful;

3. History repeats itself.

Basically technical analysis should be viewed as the study of historical prices at the market in order to forecast or even know with greater probability in what direction the future prices will move. Technical analysis needs various technical indicators, different types of charts, graphical methods and analytical methods.

Technical analysis needs a lot of time, concentration and patience. At the end of technical analysis, you get an idea when to buy the forex and when to sell the forex in order make the profits.

As a part time trader, you cannot keep much time for technical analysis. It's the work of full time traders. But in that case, how could a part time trader win the forex market?

Forex market is growing faster and faster than any other market in the world. Many latest tools have also evolved for the forex market. The solution for the part time traders is to get the forex trading signals.

Trading signals are time-tested indicators of trends in the forex market. Breakouts, support levels and resistance levels, envelope patterns, currency pairs near moving averages, stochastic lines, oscillators, Fibonacci levels - application of these indicators enable forex traders to make a profitable entry into the market. There are about 26 such indicators - reason enough for investors to rely on seasoned forex brokers.

In other words, Forex Trading Signals are selling and buying recommendations given by any third party. Such parties could be brokers, brokerage firms, analysts, traders, forex related software tools, etc. Different parties offer different signals, tips, and trends for trading in forex markets. It is best to collect daily Forex signals from reliable sources. A combination of fundamental and technical analysis forms the foundation of accurate Forex signals.

In the other way, the part time traders should either subscribe for signals with any forex expert organization or they should have some software tool which would do the technical analysis for them and give the signals.

If you subscribe for forex signals with any forex expert organization, the forex signals cost anywhere from $50 to $200 a month. It's up to the individual trader to decide if the cost is worth it. Don't think that signals can take the place of trader education: they are advice, and if you don't have the knowledge to analyze the advice, you should go back to the books before using a signal service.

Now coming to the forex trading software tools, there are some tools which will be available to you provided by your forex broker and also some independent tools (automated forex trading systems) which are independent on any of the brokers. These automated forex trading systems generate the signals for the day that when to buy the forex and when to sell the forex and automatically place orders for your broker without your presence

Coming to the automated forex trading systems that generate the trading signals, they are more handy. Generally the tools that are provided by forex brokers, they will be restricted to only particular currencies, but that would not be the case with the independent automated forex trading systems. These tools will be available in the internet market and that too for a low and affordable price. There is no need for you to pay every month for these tools; it's just a one time purchase. There tools generally doesn't cost more than $100.

The main advantage of these automated forex trading systems is that there is no need for you to depend on any other forex signal providing organizations or on the forex brokers who serves you. There are many chances that your forex brokers systems may also get down due to some other reasons. They can even trade for you even while you sleep!

To catch up with fast growing forex market and to make good profits in forex trading, I prefer the automated forex trading systems. These automated forex trading systems will be of more useful to both part time and full time forex traders.

Click here to get more information on Automated Forex Trading Systems

Venu Modalavalasa is a forex expert advisor since 1998.

Online Forex Trading Strategy - How to Make Currency Trading Systems Work For You

noreply@blogger.com (Unknown) — Wed, 22 Sep 2010 18:57:00 +0000

Now that there are hundreds of Forex margin brokers, millions of free Forex trading tips webistes and literally hundreds of thousands of Forex day trading strategy "home based business" Forex traders, we can say that virtually anyone with an internet connection can trade Forex with the pros.

In any power trading strategy, a proven trading method will mean that through Forex strategy testing and by using trading risk management, no more than one or two per cent of a total account value is put at risk in a single trade. This is key in the path to big Forex profits. Any trader beginning out will look at the trading methodologies available to them and decide to create trading rules for their Forex trading strategy.

Forex trading (currency trading) initiates should be aware therefore not only of technical and fundamental analysis and predicting Forex prices, but also of how to be a trading strategy tester and to have strong Forex trading rules that help them to make the big Forex profits they are seeking. The alternative is to have more experienced Forex trading systems used by more experienced traders end up causing you to lose all your money in your Forex business - the harshest possible outcome.

Having the following in place could assist you in getting started right away in Forex trading (currency trading): a Forex trading software platform; a free Forex trading strategy (or a paid for one for that matter); an understanding of fundamental and technical analysis and a trading risk management system. From these elements (and also the support of a daily Forex strategy briefing from a margin broker or some other site) you can start Forex trading in the fx market with your own Forex trading strategy rules.

Learning currency trading online needs to begin with sound trading risk management and how to manage your trading account balance by making intelligent risk decisions with your trading account. The risks can be higher with Forex because the moves in a week can be equivalent to a month in stock moves. Volatility is to be expected.

Currency trading strategy rules for a Forex business can be developed by amalgamating Forex trading systems of others or simply garnering a Forex education to include: fundamental and technical analysis; trading money management (risk management); a daily Forex strategy briefing from a "third party" and a way of creating Forex forecase signals (in other words a means of predicting future Forex prices from perhaps a technical setup on a currency pair or simply from Forex strategy testing that has been carried out.

Forex strategy testing can either be done through using a practice account through your broker or by paper trading your strategy. A third option is to use software such as Forex strategy tester which can run a simulation of what could happen if you trade by your rules with some limitations on accuracy.

Free Forex trading strategy tips are available from Forex ebooks webistes all over the web. The truth is that the Forex trading fx market needs to be treated as a business that runs like a Forex trading machine as much as possible. This is key if you are to make big Forex profits in live trading. Lack of regulation means that anyone can sell a "scalping trading strategy" or so-called "foolproof trading method" and make themselves out to be an expert or even say they are a long term bank trader when they are not. There is a need for caution therefore when deciding on where to get your Forex education because not any Forex trading guide is actually going to help in your predicting Forex prices in the near, medium or long terms.

It behooves you to go out and look at what is on offer from Forex trading websites and learn more about the global currency markets after you have read this article. Some sites are listed in the resource box at the end to start you off. Trading Forex online then presents challenges. The rest of this article will address those challenges. In order to trade effectively, a Forex trading guide is needed for the initiate in to the Forex markets to be able to learn online currency trading, understand trading risk management and how to manage money, discover technical and fundamental analysis, how these types of analysis of the market differ and how to apply them in creating a Forex trading machine.

This means that after all the cogs are set in place you will have a Forex trading machine that enables you to its like a professional and make decisions based in the moment and on the facts that are presented to you, rather than guess or gambling work - although there is invariably an element of risk, your job is to eliminate the risk as much as possible in applying your trading strategy.

To make this happen, you will start to think about what you may need in order to implement your trading strategy. For example, will you be needing a daily Forex strategy briefing from either a paid service or a free provider of its strategy briefings - such as perhaps your broker or a third party service. In your technical analysis will you be utilising traditional indicators such as those involved in a bands trading strategy (Bollinger Bands), will you rely on charts created by a its platform or other currency price forecast type service or will you be professional analyst charts to make your decisions?

A proven trading method is hard to come by. There are educators who have been trading Forex for banks and other institutions for many years. However they are still going to find it incredibly difficult to pass on their years of knowledge, at least not in the time most people want to go from knowing nothing about Forex trading (currency trading) to being an expert and making money with its as a business.

In sum, it is multidimensional. There are several aspects of absolute importance. These include strategy, both in terms of trading and money management, education - both initial and ongoing and focusing in on mastering a specific area whether that be a particular currency pair or aspect within the field - such as global economics of a particular country.

This article is continued as a series of forex trading tips at http://www.forexilla.com

Link: http://www.fasttrackforex.com For all levels of traders - Learn how to trade currency online.

Remember - you can both win & lose a lot of money trading Forex. Be wise. Get an education.