Forex Trading

Asian Markets End In Positive Territory

noreply@blogger.com (Top Trader) — Wed, 02 Dec 2009 17:01:00 +0000

Dec 2 2009 , (RTTNews)

The markets across Asia ended in positive territory on Wednesday but well off the highs as traders preferred to lock in gains and move to sidelines ahead of key economic data from the U.S later in the day and during the course of the week. Sharp gains in gold prices and higher commodity prices led the gains in the markets across the region.In Japan, the benchmark Nikkei 225 Index gained 36.74 points, or 0.38% to 9,609, while the broader Topix index of all First Section issues advanced 0.1%, to 859..
On the economic front, the Bank of Japan revealed that the monetary base in the country rose 3.8% year-over-year in November, standing at 92.2 trillion yen, after having risen 4.4% year-over-year during October. According to the data released, banknotes in circulation eased 0.3% on year to 75.7 trillion yen after coming in flat a month earlier, while coins in circulation were down 0.4% to 4.5 trillion yen after shedding 0.2% in the previous month.
Automotive stocks gained following better auto sales results in the U.S. from automakers for November. Toyota Motor gained 1.14%, Honda Motor rose 2.14%, Nissan Motor Co. climbed 2.48%, and Hino Motors surged up 5.49%.
Trading companies also ended in positive territory following higher commodity prices. Mitsubishi Corp. gained 2.24% and Toyota Tsusho rose 1.87%.
Mixed trading was witnessed among the banking stocks. Mitsubishi UFJ Financial declined 2.21% and Sumitomo Mitsui Financial lost 2.25%. However, Resona Holdings edged up 0.21% and Mizuho Financial added 0.61%.

Dollar Backpedals Versus Sterling On Easing Dubai Concerns

noreply@blogger.com (Top Trader) — Wed, 02 Dec 2009 16:53:00 +0000

Dec 2 2009 , (RTTNews)

The dollar saw little movement versus most majors Wednesday morning, but continued to drift lower against the resurgent sterling as the shock of Dubai's debt crisis has all but worn off.Dubai is reportedly in talks to restructure $26 billion of debt, easing concerns about UK lenders' exposure to the Emirate's debt .

The dollar fell to 1.6700 versus the pound, giving back all of its gains from late last week. With the loss, the buck eased back toward November's 3-month low of 1.6877.
Meanwhile, the buck continued to stabilize versus the yen as yet another Japanese official ignaled concerns about the impact of the rising yen on the nation's export-driven economy.
Japanese Prime Minister Yukio Hatoyama was the latest to talk the currency down, a day after the Bank of Japan voted unanimously to offer about 10 trillion yen ($115.8 billion) in short-term loans to commercial banks. Also, the central bank retained its key rate at near zero.
The dollar fetched Y87.15, staying away from a 1995 low of 84.80 set last week

Crude Oil Stockpiles Rise 2.1 Million Barrels

noreply@blogger.com (Top Trader) — Wed, 02 Dec 2009 16:51:00 +0000

Dec 02 2009 , (RTTNews)

Crude oil inventories unexpectedly rose last week, according to data released by the Energy Information Administration. Gasoline stockpiles rose much more than expected.U.S. commercial crude oil inventories increased by 2.1 million barrels from the previous week. A drop of 1.3 million barrels was projected. At 339.9 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year.
Total motor gasoline inventories rose by 4.0 million barrels last week, much larger than the 900,000-barrel increase projected by analysts. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 1.2 million barrels. Propane/propylene inventories decreased by 900,000 barrels.

Dollar hits 14-year low on yenBy Lindsay Whipp in Tokyo

noreply@blogger.com (Top Trader) — Fri, 27 Nov 2009 01:18:00 +0000

The yen briefly rose to a 14-year high against the dollar on Thursday but comments from top government officials reinforced traders’ views that there was little chance of immediate Japanese intervention in the currency market.

Hirohisa Fujii, finance minister, said “appropriate action” could be taken if currency moves were “abnormal”, but gave no hint of quick action to stem the fall of the dollar, which at one point dropped to Y86.30 against the yen.
”At this point, [it’s a matter of] watching closely,” Mr Fujii said.
The yen traded at Y86.77 as of early evening in Tokyo.
Traders said the dollar’s fall against the yen was driven by US rather than Japanese factors, and Yoshihiko Noda, deputy finance minister, told Reuters that the government was not thinking of intervening in the currency market at this point.
Mr Fujii has in the past argued that unilateral intervention would be unlikely to be effective and that it would be wrong for Japan to engage in ”competitive devaluation”.
Muneteru Togawa, a director in the foreign exchange department at UBS in Tokyo, said: “The market knows that the [Japanese] government can’t intervene unless there was an agreement for some sort of internationally co-ordinated action.”
A stronger yen is a headache for Japan’s new Democratic party government, as it makes exports less competitive, threatening to derail a fragile economic recovery. Japan relied on shipments overseas for a third of its expansion in the quarter ended September.
While the yen has actually risen only 3.8 per cent against the dollar this year, Shoji Muneoka, head of the Japan Iron & Steel Federation, yesterday underscored widespread concerns among manufacturers, saying that unless the yen’s rise was reined in, the economy would be ”damaged”.
Export-related stocks fell in Tokyo, but the market still outperformed many in the region, with the Topix closing down 0.5 per cent lower at 829.58.
Since becoming finance minister in September, Mr Fujii has appeared relaxed about a stronger yen, noting that it can help the domestic economy by making imports cheaper.
Mr Fujii’s comments did little to stop the slide of the dollar, which dropped to its low against the yen after he spoke.
Christian Carrillo, a senior rates strategist at Société Générale, said: “Effectively the market [was] pushing [the] yen stronger to test what is an ‘abnormal movement’”.Yuji Saito, head of foreign exchange at SocGen in Tokyo, added that investors had been closing their dollar positions ahead of the Thanksgiving holiday in the US, which had pushed the currency higher, while Y87.10 was a major trigger point for selling among investors such as Japanese day traders, exacerbating the dollar’s decline.

Euro / Dollar Technical Forex Analysis for Forex Traders

noreply@blogger.com (Top Trader) — Tue, 24 Nov 2009 14:24:00 +0000

The Euro broke the resistance 1.4935, and came very close to our first suggested target at 1.4998, when it reached a top at 1.4990, before retreating back to 1.49 this morning. Short-term resistance is provided by the falling trendline from yesterday's high on the intraday charts, which is currently at 1.4931. If this resistance is overtaken, then the technical outlook will have the strength to reach 1.4998 first, and if this is broke we have the right to expect 1.5082 for the first time this year.

Forex - What is it ?

noreply@blogger.com (Top Trader) — Tue, 24 Nov 2009 13:57:00 +0000

The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round - the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open.

Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules. An important role in the process of the preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.

How To Make Money On The Forex Market

noreply@blogger.com (Top Trader) — Tue, 24 Nov 2009 13:55:00 +0000

Forex trading is trading the currency of a country for the currency of a different country at their current exchange rate. Futures trading, which is based on a currency's future value is different all together but many people get the two confused. You may also see Forex referred to as FORX, FourX, or even 4X when you perform a search on the internet. All Forex trading is conducted through brokers or market makers so it is important to do your research before funding a margin account which is required for trading.

If you are interested in trading on the Forex, it is important that you do your research. Read what others are saying and if they have made or lost money trading on the Forex. Learn the language of trading on the Forex. You need to know the language that is used so that you won't be confused by the information that you read. Traders try to capture points or pips. A pip is a point in the currency trading community. Forex trading is also called Spot trading or trading on the Spot market.

Don't invest more than you can afford to risk! Funding your margin account should only be done with funds that, if lost, will not significantly impact your financial well being. Trading on the Forex involves a certain amount of risk as does investing in the stock market. Don't invest your life savings on the Forex, especially if you are a beginner to currency trading. A good rule for beginners is to only invest an amount that you can afford to and then build upon that as you make successful trades. You should not invest money that you must have to live on in either the stock market or Forex.

You finance your trading with your margin account which guarantees other traders that you can pay them if you lose on the Forex. A margin account is a bond account, a place to deposit your money and an account to withdraw money from when necessary. Forex trading is performed in lots and you use your margin account to buy the right to trade lots of currency on the foreign exchange. These lots of currency are equal to differing amounts of USD which depends on their trading value versus the dollar. You purchase the right to trade lots of currency with the funds held in your margin account.

Choose your trading firm sensibly when you decide to invest in currency trading on the Foreign Exchange Market. Current Federal regulations don't allow Forex trading firms to guarantee the performance of any Forex currency trading system. Look for a reputable Forex trader that has the credentials to back up their claims of performance. A professional Forex trader is educated and disciplined to follow their method of trading using good judgment to lessen the risk of currency trading. Don't let greed get in the way of good sense when considering an investment in Forex although there is money to be made trading currency.

3 Power Strategies

noreply@blogger.com (Top Trader) — Tue, 24 Nov 2009 13:53:00 +0000

If you want to catch the serious profit in forex dealing you need to trend watch forex trends which are worse term. here we are going to give you a 3 step simple method which if you use it correctly, will help you catch every superior forex trend and lead you to long-term term currency dealing success.

Most beginner traders don't bother trying to trend following forex lengthier term - instead they try forex scalping or day trading. These methods focus the trader on small moves and they hope to catch small profit however as most short term moves are random, this leads to equity eliminate.

The other alternatives are swing trading and long term forex trend following and this article is all about the latter method. If you look at any forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit - present we will outline a simple method to get them.

Breakouts

By far the best way of catching the serious moves is to use a forex dealing strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is broken.

It's a fact that most leading moves start from new highs or lows.

While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur.

Most traders don't buy or sell breakouts and that's exactly why it's such a powerful method.

The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the greater the spacing between the tests the more valid the level is.

Confirmation

Of course not every breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your dealing signal.

These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We don't have time to discuss them here (simply look up our other articles) but two of the greatest are - the stochastic and Relative Strength Index RSI

Stops and Targets

Stop points are easy with breakouts - Simply behind the breakout point.
If you have a serious trend then you need to be careful you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don't know when the trend is going to end, so don't predict.

It's ok to give a serious back, as that's the nature of trading forex. Keep in mind if you got 50% of all leading trend you would be very rich. When you are long-term term trend following you have accept giving a bit back and taking dips in open equity as the trend develops - this is noise and does not affect the long term trend.

The above is a simple way to trend watch forex and catch the high odds moves that yield the serious profit. If you are learning forex dealing and want a simple method that is robust and will help you get every major move, then you should base your dealing on the above method.

Now that you have all the winning strategies, you now need to have a winning broker, recently the

Profitable Trades in Forex

noreply@blogger.com (Top Trader) — Tue, 24 Nov 2009 13:49:00 +0000

The first real advantage is that the amount of money you need to trade is extremely small. With some brokers, as little as $100 allows you to control $10,000 of a currency. Compare that with purchasing stock on margin. If you were to purchase $10,000 in stock, you would have to have a minimum margin of $5,000. That's a huge difference and a giant advantage for you.

The second advantage to currency trading is that the currencies often trend for weeks, months or sometimes even years. Just catch the trend and you're on your way to some nice profits.

The third advantage is that currencies don't suddenly gap up or down with the news of the day as stocks do. There are no accounting problems, scandals, broker downgrades, earnings rumors, insider trading or take over bids. There are no new product announcements or balance sheet issues to worry about.

Another big advantage is that you can trade currencies 24 hours a day, almost 6 days a week.

Currencies trend, but they also fluctuate against each other. Since a pip, the smallest movement of a currency is $00001 and a pip in the mini contract represents $1 of profit or loss, then you can see that with very little movement, you can make or lose some real money.

Profitable trades in forex are relatively easy to come by, but that doesn't mean that as a newbie, you should just jump into the action. As with any money making endeavor there are the tricks of the trade. You have two ways to learn these tricks. You can open an account, start trading and learn your lessons the expensive way, by losing.

Or, you can let a seasoned trader show you what to do and when. In my view, the small amount you have to pay a seasoned trader to show you the ways of the currency market, especially with the convenience of the internet, is money well spent.

Here's where the choices get interesting. There are trading programs that use "bots" or automatic trading signals. The problem with bots is that the market changes its characteristics from time to time and automatic trades that work one day will destroy your account the next day. With bots, you're totally on your own when the eventual losing trades come your way.

Tips For Choosing a Reputable Forex Broker

noreply@blogger.com (Top Trader) — Tue, 24 Nov 2009 13:47:00 +0000

Finding a Forex broker is a tough process to navigate through and for most people, the necessity of outside assistance is needed. Trying to trade in the Forex market without a broker could lead to devastating results for the normal trader. Similarly, hiring the wrong Forex broker can lead to the same result as trying to muddle through it alone. It is highly important that you be diligent in researching any prospective brokerage firms to handle your financial portfolio.

A good Forex broker will supply you with clients that were successful and can attest to the specific broker's qualifications and success history. Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client history testimony should be present in any prospective Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the deciding factor.
Another good morsel to test the reliability of any potential Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a good history or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a potential Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.
A good avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you prospective referrals to great Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before committing to any formal agreement.
The other factor in finding a good Forex broker is the margin of return that is offered. A Forex trading margin used to influence your money and many Forex brokers offer different margins. Finding a Forex broker, who gives a margin of ten to one isn't a very good find so it's worth the time to reinvest in research. Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching.

Reading Forex Broker Reviews

noreply@blogger.com (Top Trader) — Tue, 24 Nov 2009 13:43:00 +0000

If you are considering hiring a forex broker, one of the many ways in which you can possibly learn about their credibility is by means of forex broker reviews. These things can be found just about anywhere in the internet. You just need a search engine where you can place these keywords and then wait for the results to show up. Reviews on forex brokers can give you the following benefits:

Credibility - Reputation is an important thing when it comes to hiring forex brokers. Although you would not really use their services in terms of marketing yourself or your business, you need to make sure that you are not partnering with a run off the mill type of broker who cannot provide you with results. You also need to have someone whom you can trust enough with your transactions and even some vital confidential business information.
Network - The main reason you would be hiring a forex broker is to expand your business. Through online forex reviews, you can easily spot the industry names when it comes to forex brokering. You will know who's who in the trade and the people who have made quite a number of following and transactions throughout the span of their career.
Expertise - Reviews about forex brokers would definitely dissect the credentials of the person in discussion. After all, that's what reviews are for. It aims to discuss the pros and cons when it comes to specific subjects in terms of its features. Reviews about forex brokers help give you a better understanding of the professionals alongside their field of expertise and so you can identify if their expertise fits well with your business.

But given these benefits, you should also place careful observance when reading forex broker reviews. Make sure you choose those that are reputable enough and have been written by professionals themselves. Reviews are a combination of opinion and actual experience.

In finding the best reviews when it comes to forex brokers, here are some important points you would need to consider:

Who wrote the review? - It would be great to read reviews coming from forex professionals themselves. Some of them put up their reviews in their very own website and write them down in the form of a blog. This way, it's easier and much more inviting to read. You can also try searching for such articles on forex sites which also has a feature on the authors themselves.
When was the review created? - Forex is a very dynamic business. Make sure you only read reviews that are updated. The latest you can probably consider is a year before the present day. Unless of course you wanted to unearth issues and questionable stories associated with the forex broker, then feel free to delve deeper in your research.
What affiliations does the writer have? - This helps establish the fact that the person is indeed an expert reliable enough to write forex broker reviews. Industry associations tell you much especially in terms of the network that the review author has.