Treasury Department report goes easy on Chinese flexibility policy for the renminbi; Breaking up [the euro zone] may not be so hard to do, says Capital Economics

Treasury will keep close surveillance over renminbi – The recent move by China to add more flexibility to the renminbi exchange rate regime was a “significant development,” the U.S. Treasury Department said in a July 8 report to Congress. However, the key issue is how much and how quickly the currency appreciates, the report said. This observation comes as no news to online forex traders. A number of factors suggest the renminbi remains undervalued, according to the Treasury report. These include China’s continuing accumulation of foreign reserves and the paltry growth of the effective exchange rate when taking into account the accelerated growth in China’s traded goods sector. The Obama administration will keep a close eye on the appreciation of the renminbi and enhance its efforts to expand U.S. export opportunities in China, Treasury Secretary Timothy Geithner said. The report was published almost two months after its originally scheduled release date, a move attributed in the forex trading community and elsewhere to the administration’s desire not to ruffle Chinese feathers before the recent G-20 meeting.

A world without the euro – A highly respected economic analysis firm has joined the ranks of those suggesting a break-up of the euro zone could have beneficial effects. News of the report has been received with particular interest among forex traders. Renewed economic growth in weaker European countries could be the previously unforeseen outcome of a break-up, Capital Economics, a London-based firm, said in a report released on July 11. Analysts have suggested that euro-zone weaklings, such as Greece, Ireland and Portugal, must resort to dramatic cost cutting measures and slashing prices in order to compete with the bigwigs like Germany. If these countries were to revert to their former national currencies they would be equipped to let the currencies depreciate as a way to make their exports less expensive, the report said. According to its website, Capital Economics is a leading worldwide independent macro economic research consultant that provides research on the U.S., Europe, Asia, Latin America and the U.K.

Key U.S. senators irked by Chinese renminbi exchange rate games; E.U. bank regulators are now stressing out over bank stress test

Congress may act if White House ignores the renminbi issue – The top two members on the Senate Finance Committee have expressed their dissatisfaction with the recent Treasury Department report that failed to criticize China’s foreign exchange rate games. The legislators hail from Montana and Kansas which have important exporting sectors where foreign exchange rate fluctuations are a serious business concern. The Chinese currency practices harm ranchers, farmers, and exporters across America, said Sen. Max Baucus (D-MT), chairman of the Senate panel. The Chinese action was a small step in the right direction, but small steps are insufficient, he said. China must take significant steps to appreciate its currency and these should happen soon, Baucus said, adding that he is urging the Obama administration to be vigilant in pushing China on the exchange rate issue. Sen. Charles Grassley (R-IA), the ranking member of the committee, was not so diplomatic. The administration has again failed to identify China as a currency manipulator, he said. Overall, the Chinese currency is tightly controlled and mostly removed from market forces, Grassley said, adding that he wants the administration to bring a case against China’s currency manipulation at the World Trade Organization under article 15 of the General Agreement on Tariffs and Trade (GATT). “If the President continues to avoid acknowledging China’s currency manipulation and fails to address it in a meaningful way, Congress will have to act,” Grassley threatened.

Forex traders look for more details on E.U. bank stress test transparency – All the ballyhoo about the importance of the current European Union bank stress test and the transparency of test results may prove to be nothing but lofty rhetoric. July 23 is the test-result release date set by the Committee of European Banking Supervisors which said that 91 banks in various E.U. countries were under the microscope. The committee previously announced that test results would be released on an individual and aggregate basis. However, there has been ongoing bickering among national regulators about what information to release and when. To borrow a phrase, if regulators hold bank on transparency, online forex traders may wind up asking – “Where’s the beef?”

Mixed signals regarding strength of euro place forex traders in a quandary; Hypo fails the E.U. bank stress test putting German taxpayers on the hook

Forex traders pulling their hair over the euro – Given the recent steady climb in the value of the euro against the U.S. dollar, the questions being asked are when and where will the appreciation elevator stop? In a report that was released on July 12 when the euro was nudging 1.2600 USD, analysts at the Royal Bank of Scotland (RBS) said the euro was approaching fair value against the dollar. This would suggest a reversal of any significant movements over a period of time, according to RBS. Developments over the past several days suggest the climb may soon be over, or not. Consider the following. Moody’s Investor Service has just downgraded Ireland’s credit rating while Fitch Ratings has just upgraded the credit posture of Estonia, a country poised to become the newest member of the euro-zone on Jan. 1. The latest data from the European Central Bank indicate that the bank’s intervention in European bond markets has been on a significant downward slope in the past weeks. On the other side of the pond, the latest data show weakness in U.S. home construction which has been attributed to the demise of the first-time homebuyer tax credit. In Washington and in financial centers worldwide, all eyes are now focusing on the July 21 appearance of Ben Bernanke, chairman of the Federal Reserve, before the Senate Banking Committee. And in Europe, the forex market has its eyes on the results of the E.U. bank stress tests which are due to be released on July 23. At press time (July 20 – 9:53 a.m. in New York), the euro was trading at 1.2866 USD.

Hypo adds another disappointment to its recent history – Reports began leaking out on July 19 that the first casualty of the E.U. bank stress test is Munich-based Hypo Real Estate Holding. This is already causing some distress among forex traders. There is good reason for such concern. Hypo reportedly has insufficient reserves and has been victimized by its exposure to the real estate market and sovereign debt holdings. It was bailed out in 2008 to the tune of 7.8 billion euros by the German government and is, in effect, nationalized. The bank may now need an additional 2.2 billion euros in recapitalization. Just as in the U.S., bank bailouts are unpopular in Germany and there are fears, perhaps unwarranted, that an infusion of more taxpayer cash for Hypo could fracture Chancellor Angela Merkel’s governing coalition. How that would play out within the euro-zone is unclear but it is a possibility that forex traders should keep in mind. According to its website, Hypo is in the process of realigning its business as a specialist bank for real estate and public finance with its focus always on the eligibility of business for Pfandbrief (mortgage-backed securities) funding.

Forex traders looking for trading clues in the details surrounding E.U. bank stress tests; Germany’s Merkel sees realism in E.U. bank stress test

Analysts point out important considerations regarding bank stress test – As forex traders ponder the real meaning of the E.U. bank stress test for the value of the euro, veterans in the field suggest traders remember the old maxim – the devil is in the details. What is known for sure are the following facts. (1) The test results are to be publicly announced on Friday, July 23, at 6 p.m. Central European Time. (2) There are three scenarios in the stress test – banks must maintain a 6% Tier 1 capital ratio, they must estimate losses on banking business, and they must estimate losses on sovereign debt holdings. So, what should forex traders look for in the run-up to the release of results and in the wake of the release? Here are some suggestions offered by European analysts. What will be the reaction of individual governments and which governments will remain steadfast in supporting their nation’s banks? How much in toxic assets do the banks really hold? What governments already have emergency plans in place (for example, according to various reports, Germany has a rescue fund of 480 billion euros, Spain has a rescue fund of 99 billion euros, and even Greece has a rescue fund of 10 billion euros)? What is the cumulative shortfall among the banks expected to be and how much will it really be (there are suggestions the numbers can range from 30 billion euros to 75 billion euros)? Will the test really prevent some banks from failing? These analysts also see some positive outcomes in the short-term as a result of increased bank transparency. First, it should increase the likelihood of banks being willing to trade with each other. Second, banks will be prompted to put in place contingency plans in the event of an imminent failure. At press time (July 21 at 12:07 p.m. in New York), the euro was down and hovering just above 1.2800 USD.

Optimism is the order of the day in Berlin – German Chancellor Angela Merkel today described the bank stress tests as “very realistic,” while acknowledging that reports of the failure of Hypo Real Estate Holdings (HRE) sound “plausible.” Forex traders and analysts who believe in the euro may find this encouraging since Germany will have to fork over as much as 2 billion euros to recapitalize the nationalized HRE. Morning activity on the Frankfurt Stock Exchange seemed to validate Merkel’s apparent optimism with the value of shares in several top German banks going up.

Forex market sees rising euro just hours before the release of E.U. bank stress test data; Forex traders keeping a watchful eye on the USD-Japanese yen exchange rate

Euro is not following the anticipated script – Somewhat unexpectedly, so far today, the euro has been showing strong gains against the U.S. dollar, hovering around 1.2931 USD (up 1.4%) at 6:10 a.m. in New York. This seems to fly in the face of conventional wisdom suggesting there would be a slight drop in the value of the euro in the hours leading up to the release of the results of the E.U. bank stress test later today. However, it does seem to confirm the conviction of one highly respected forex market analyst, Stephen Gallo of London-based Schneider Foreign Exchange, who continues to say the fair value of the euro should be in the range of 1.30 USD to 1.35 USD. News from Germany of rising business confidence, the highest since 2007, is one likely reason for the up-tick. In addition, the transparency coming from the bank stress test is seen as constructive, a view that outweighs concerns the stress test may be a watered-down version of the strenuous tests previously faced by U.S. banks. Things may change if there is surprisingly bad news regarding the sovereign debts holdings of the tested banks, some forex analysts suggest.

Japan may try to reign-in the yen – With most eyes focused on how the results of the E.U. bank stress test will affect the value of the euro against the U.S. dollar, savvy forex traders are busy looking at the numbers on the Japanese yen versus the dollar. The currency has continued to show strength versus the dollar and the euro, and this is making Japanese leaders nervous. The reason is Japanese exports will take a big hit as the nation’s currency appreciates and the cost of Japanese products skyrockets in overseas markets. In some quarters, there are now expectations of government intervention, perhaps imminent intervention, based on the stress test results and the dim outlook for the U.S. economy. According to various news reports, some analysts suggest should the level of the yen reach 85 USD, the likelihood of government intervention is high. Others say the range likely to prompt government action is somewhere between 80 USD to 85 USD. At press time (July 23, at 6:10 a.m in New York), the yen was trading at 87.135 USD.

Euro appears to have weathered the E.U. bank stress test storm; White House estimates budget deficits well above $1 trillion level

Forex traders overcome negative feelings about stress test – The E.U. stress test results have failed to dampen forex traders’ enthusiasm for the euro. At press time (July 26 at 2:20 p.m. in New York), the euro was trading in the neighborhood of 1.30 USD, up approximately 0.72%. Trading sentiment has apparently been influenced by a close look at the latest monthly report on U.S. new housing starts. The Commerce Department reported on July 26 that although annual sales of new homes jumped by 24% in June compared to the previous month, there is no cause for fireworks. The seasonally adjusted June sales figure of 330,000 homes must be seen in relation to the revised figure for May, which was lowered to an annual rate of 267,000. That was the historic low point since recordkeeping began 47 years ago. This did not escape the attention of the forex market.

Continuing U.S. budget deficits seem to be unavoidable – The Obama administration on July 23 released its Mid-Term Review, a revised outlook for the federal budget for both FY 2010 and FY 2011. The newest figures suggest the U.S. economy may, in fact, not escape a double-dip recession, according to some forex traders. The administration is projecting a deficit of $1.47 trillion or 10% of GDP in FY 2010, which ends on Sept. 30. The deficit for FY 2011 is now estimated at $1.42 trillion, which amounts to 9.2% of GDP. Forex market observers believe this admission by the White House is another factor contributing to the July 26 decline of the U.S. dollar versus the euro.

Japanese government is getting jittery about possible intervention

Intervention could be on the horizon – With the Japanese yen edging closer to the level of 85 yen to the U.S. dollar, government officials in Tokyo are beginning to sweat. According to news reports, Foreign Minister Yoshihiko Noda today expressed concern over the impact of a stronger yen on Japanese exports. Prime Minister Naoto Kan said he was keeping a close eye on developments. Experts have suggested the danger level – when some sort of government intervention is likely – is somewhere between 80 to 85 yen against the USD. Some forex analysts think the point of no return, when it comes to government intervention, could come if the dollar sinks to 84.82 yen, a level last seen in November 2009. At press time (10:10 a.m. in New York), the dollar was trading at 85.805 JPY.

Signs of an economic bounce help the euro – Confidence in the European economy has been a driving force in pushing up the euro against the U.S. dollar on the forex market today. The euro has been floating around 1.32 USD during the course of trading. The rising euro is a “sign of the growing strength” of the European economy, Lord Leon Brittan, vice chairman of UBS Investment Bank and a former vice president of the European Commission, said during an interview on Bloomberg News. Volatility of the currency, when compared to its relative levels of strength, is a great deal harder to deal with, he said. Policymakers do not have a target level for the euro that would prompt some sort of action, Brittan said, adding that, in any case, no action would be taken regarding the exchange rate alone.

Greenback gives the euro a tiny spanking; Japanese yen pushes the dollar down before yielding

Dollar gains against the euro – Some positive reports from the euro-zone, including the continuing improvement in German employment figures, were not enough to withstand pro-U.S. dollar sentiment as forex trading progressed on Aug. 4. Forex traders noted that earlier this week Federal Reserve Chairman Ben Bernanke opined that the economy has stabilized and that there are signs of an expansion. A monthly private-sector job report hinted that the next monthly Labor Department job report will bring some good news. The euro hit a three-month high against the greenback on Aug. 3, hitting 1.3261. Gains could be reversed by a gloomy U.S. jobs report from DOL due out on Aug. 6. At press time (1:20 p.m. in New York), the euro was trading at 1.3137 USD.
Yen flirts with new gains versus the dollar – The U.S. dollar has rebounded against the Japanese yen and at press time (1:20 p.m. in New York) was trading at 86.1999. Earlier today, there were concerns that the greenback could come close to the eight-month low of 85.32 JPY. Forex analysts attribute the rebound, in part, to a positive report regarding private-sector job creation in July. ADP Employer Services said 42,000 jobs were created. However, some employment analysts have suggested the monthly report has a history of getting it wrong. The Labor Department will release its July jobs figure on Aug. 6. Meanwhile, on the other side of the Pacific, there was no indication that the Japanese government is dusting off its intervention contingency plans. “Our fundamental stance is that foreign exchange rates are something that should basically be set by the market,” Foreign Minister Yoshihiko Noda was quoted as telling a legislative panel.

Forex traders will keep their eyes on key global economic indicators; U.S. economy is tough to figure out

Important economic indicators to be announced – This week will be marked by the release of key economic indicators that are important to traders in the forex market. On Aug. 10, the U.S. Federal Reserve will make a decision on interest rates while, in Germany, the government will release the July inflation figure. Aug. 11 will see the U.S. release figures for international trade in June and the Bank of Japan will make a rate decision for August. On Aug. 12, the U.S. Labor Department will announce figures for initial unemployment claims and, across the Pond, June industrial production figures will be available for the euro zone. The last business day of the week will see a flurry of announcements – Q2 GDP figures for Germany, France and the euro zone, and inflation and retail sales data for the U.S.
Observers of the U.S. economy are scratching their heads – The economic picture in the U.S. remains somewhat of a jigsaw puzzle to the forex market. Democratic leaders in Congress will push to keep in place expiring tax cuts for the middle class (which had their origins early in the President George W. Bush administration) while socking the rich with a new tax increase by allowing expiring provisions affecting upper-income taxpayers to meet their demise. The Republicans want to keep all of the expiring provisions in place, at least for two years. Everyone seems to agree that uncertainty in this area is detrimental to improving the economy. Meanwhile, the estimated federal deficit is $1.74 trillion for the first 10 months of FY 2010, according to a monthly report from the Congressional Budget Office. On the bright side, net corporate income tax receipts have been up for each of the past six months when compared to FY 2009. The increases are primarily attributable to stronger corporate profits in 2010, CBO said on Aug. 5. Receipts from the Federal Reserve showed a healthy increase, “which primarily reflect the central bank’s much larger portfolio and its shift to riskier and thus higher-yielding investments in support of the housing market and the broader economy,” CBO said. And, of course, employment figures are a mixed bag, with President Obama trumpeting new job creation in the private sector while his detractors focus on the unemployment rate remained at 9.5%. The number of so-called 99ers, workers whose unemployment benefits are finally exhausted after 99 weeks, continues to grow.

Greenback and euro are marching to different drummers; Japanese yen crosses the boarder into unchartered territory

U.S. dollar shows unexpected muscle – Yesterday’s announcement by the Federal Reserve that U.S. output and employment have slowed seemed to cast a pall over hopes for a speedier U.S. economic recovery. However, the Federal Open Market Committee’s outlook did not have the impact on the greenback that some forex analysts had expected. The USD has gained against the euro and, at 12:35 p.m in New York, the euro was trading at 1.2913.The euro’s high for the day was 1.3185 USD. “Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit,” the FOMC said. “Business spending on equipment and software is rising; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls. Housing starts remain at a depressed level. Bank lending has continued to contract.” The FOMC also said “the pace of economic recovery is likely to be more modest in the near term than had been anticipated.” What could explain today’s performance by the euro? Perhaps it’s the economic reports coming from Germany, the key driver in the euro zone. Retail sales in Germany for the first half of 2010 dipped slightly below last year’s number. In addition, statistics for Germany released on Aug. 6 showed that performances in several sectors – construction, industrial production, chemical industry and capital goods – were all down. Finally, some observers posit that Germany may be encountering a jobless recovery and the prevailing ceiling on wages stifles consumer spending.
Yen breaks the barrier of concern – The Japanese yen today muscled its way below the level of 85 JPY to the U.S. dollar, a strength that many forex traders and others think could prompt government intervention. Analysts previously have suggested any movement of the USD into the 80-85 JPY range would prompt the Japanese government to act. While the strong yen helps certain segments of the economy, it is not helpful to the export sector. In Tokyo, Finance Minister Yoshihiko Noda shied away from a discussion of possible intervention, saying that “disorderly and excessive currency moves” can adversely affect the economy and financial stability. He added that he will be scrutinizing the markets “with utmost caution.” The top official at the Bank of Japan told reporters that the rising yen has a downside to business sentiment. An economy is influenced by foreign exchange movements but this, in itself, should not have an immediate affect on monetary policy, the official said. There is still a need to see how the overall economy is being affected, an analysis that must be conducted in “a balanced way,” he said. At press time (12:15 p.m. in New York), the USD was trading at 85.9500 JPY.

Forex Trading Blog – 5 Tips For Easy Forex Trading In A Fluctuating Market

It is more often than not agreed that a decent easy forex trading method involves approaching the trend, but what do you do when there is no clear trend? This is real a large half of the time and it can be acutely frustrating, especially for the inexperienced foreign exchange trader. Forex Trading Blog
Sometimes you might identify another currency pair where a trend based trade can be opened, but often this is not the case. Besides, dealing with a lot of different currency pairs is confusing. Confusion leads to mistakes. So instead, you might want to learn some strategies for trading in a choppy market.
Of course, you should begin by practicing these techniques in a demo account. This would be a very good use of your time which you might otherwise spend trying to force a trade from very weak signals. So how do you get started? Here are 5 tips for easy forex trading in a fluctuating market.
1. First, check the economic calendar to be sure that the movements you are seeing are not caused by a clash of reports that will soon settle down. Two important announcements in a short time can produce some very weird effects on the market. In a situation like that you would be better off staying out of the market for a few hours. There are no easy forex strategies for that situation.
2. Look at support and resistance levels and pivot points. In an ideal choppy market the support and resistance lines will be parallel and you can expect the market to turn when it approaches them. Check against another indicator such as the stochastic oscillator. If it shows that the price is in the overbought or oversold range, you have another signal for the trade. Forex Trading Blog
3. If the support and resistance lines are converging, a breakout is likely. In this case you cannot assume that the price will always turn. You may prefer to set orders outside the range of the converging lines to catch a breakout when it occurs. But again, check your conclusions against at least one other indicator.
4. Check your planned trade against other currency pairs that tend to be closely related to your selected pair. For example, EUR/USD and USD/CHF tend to be inversely related, which means that one of them will generally fall when the other rises. The same is true of EUR/GBP and GBP/CHF.
5. Do not expect to leave your trade open for a long time. Watch the market without being distracted into something else. Trading in a choppy market is necessarily short term. You need to exit as soon as your profit target or stop loss is reached. Forex Trading Blog
In summary, you can expect to be able to trade in a choppy market if prices are going up and down in a fairly regular pattern, but not if price movements are completely wild. Some days it is better to forget about trading and do something else with your time. There is no easy forex trade to be had in a crazy market. Always want to have financial freedom? Check out Forex Trading Blog Program. It’ll change your Life Forever!

Mini Forex Trading – How To Instruct Yourself In Forex Trading

Forex or Foreign Exchange Trading is the largest market in the world. In fact, it is larger than all the world’s stock exchanges put together. It has another remarkable characteristic, there is no one single market place. The NYSE is in New York, the FTSE is in London, but the Forex is everywhere and nowhere. It exists only in networks and the Internet.
Other than that, the Forex market is the same as any other market. The principles are the same, you endeavor to buy low and sell higher. This sounds easy, but of course it is not. Fortunes can be made and lost very rapidly. Just imagine if you had bought or sold the USD an hour before the destruction of the Twin Towers? I am certain that fortunes were made and lost on that day.
The problem is that you cannot predict attacks like that. There are other events such as jobless totals and industrial output that you have a chance with, but not terrorist attacks. Therefore, you must understand that although you have a chance of getting some facts and figures correct, there will always be a few wild cards in the pack.
Therefore, you ought to make a supreme effort to master the means that are at your disposal to make accurate predictions of the movement of the currencies of your preference. The method that you choose to learn how to evaluate the relationships between currencies depends on your intention. Mini Forex Trading
If you would like to undertake Forex trading professionally, then you ought to go to business school and take the apposite courses. If you would just like to try your hand on a hobby/extra income basis, then you can study alone by reading books and reading forecasts on the Internet. You should also open a practice account with a Forex broker.
Many people think that being able to read a currency’s charts is crucial to making a good decision. This is called technical analysis. There are hundreds of different kinds of charts and you will have to research the most common ones to see if they fit in with how you think things work in the currency market.
Once you have a degree of understanding that you are comfortable with, you should open a mini Forex trading account and fund it with the least amount, because nothing teaches better than when your own real money is on the line.
As well as learning how to decypher the charts, there are also fundamental data that you should take into account. Fundamental data are fundamentally about the country the currency of which you are interested in. Is it a politically stable country? Does its economy over-rely on one or two commodities? Is another country looking to acquire it? Is it likely to go to war or be embargoed?
There are so many things to take into account, so a good basic knowledge of the country’s political economic situation is indispensable. You will also have to study the climatic cycles, if they affect major crops or tourism and even such things as traditional holiday times and the likelihood of the currency rising or falling during those times. If you follow these suggestions, you will soon have the essentials of an education in Forex trading. Mini Forex Trading

Forex School – Diy Forex Trading School

Is it prospective to teach yourself forex trading? This is a guide on teaching beginners how to trade the forex market. punky shunk to the DIY Forex Trading School!
Step 1 Learn About the Psychology to Trading
The key to trading successfully in the forex market a lot depends on how you handle after a loss. It is how you dealt with the loss of money that differentiates between a novice trader and a professional trader. Forex School
Trading is managing the two components of our human emotions – the fear and greed. Understanding these two human emotions is very important because the market is human driven. This will mean to a certain extent, based on greed and fear, a person will be able to predict with some accuracy on how the market performs.
Step 2 Trade with a Plan
It is important that one person understands how many types of market condition are there. There are three market conditions, trending, ranging and consolidation. Having understands the different market conditions, it should be decided by the traders what strategies will perform the best in the current conditions.
As market conditions are constantly changing, a trader must possess a sound idea of the various investment strategies and adapting to the fast changing financial markets.
It is a common saying- if you fail to plan, you plan to fail. Even though you have a plan, it does not mean you will win all the time but if you fail to plan, it is guaranteed that you will lose in the long term. Trading is after all a probability games. Having a plan before you start trading increase your probability to win. Forex School
A trading plan consists of five components. These five components will be discussed in my other articles. Trading plan seeks to conquer and eliminate trading with human emotions. It encourages trading in a logical and systematic way without the two human emotions.
Step 3 Minimise Risk With Proper Money Management
Even with a plan, a trader will still fail if he does not follow a strict money management. A sound money management will restrict the money loss up to certain predefined level so that any loss incurred will not ever bring the trader out of business.
Trading the market is about surviving the market today so that you can come back to trade tomorrow, isn’t it? As long as you have the money, the market will present plenty of opportunities for you. However, if you lose all your money in any single trade, you cannot capitalise on future opportunities anymore.
A general guide will be to risk not more than 2% of your equity in any single trade. And 6% of account equity is the maximum amount of risk you undertake in any single month. Abiding by these two rules will ensure you stay in the market for as long as you can regardless of how much you have in your account.
Step 4 Repeat step 1 to 4 with discipline and never give up.
Trade consistently and have a good record keeping for trading assessment later. Never attempt to change the plan while you are trading. Stick to the plan and trade with a demo account until you are very confident with the trading strategy. Forex School
Step 5 Trading Assessment and Optimisation
Review and make improvements to your trading plan after trading for 3 months or 200 executed trades whichever comes first. This is to ensure that the result of trading is reliable based from results obtained from large no of trades. Always want to have financial freedom? Check out Forex School Program. It’ll change your Life Forever!

Forex Gridbot – Grid Bot Trading

Trading Foreign exchange is one process to beat the recession, but you should recognize some required truths or you could waste funny things as opposed to you make. Though there are fortunes to be made, not everyone is a winner. Over Xmas I heard of a family friend who for a period of time had been heard trading for fun and profit. Putting away a handsome sum on a constant basis. However that will be The next thing you knew because of the upheaval in the Forex markets. Not clearly did he cost his shirt but his home and the family farm too! Incredibly he is relatively philosophical close to it and is handling it all extraordinarily decently considering. Forex Gridbot
Of course this should never have happened, especially to someone as experienced as he was. So what actually went wrong? Quite simply he had become greedy, trading by the seat of his pants. He was not running stop losses and when he had a series of losses he just poured more money to try and win back what he lost. In brief, he was no longer trading he was betting, he let his emotions take over and had lost his edge. He was no longer trading by a winning system but more like a craps player who just doubles the stakes on each loss. This is precisely the way not to trade Forex. Forex Gridbot
This is just one of the various areas where a Forex Robot has an edge over most human traders. They trade by a system and they do not get emotional. A good robot can recognise and conform to any market condition and trade suitably. It can pick the best time to open and exit a trade, set stop loses to reduce risk and even recognise when not to trade at all. It is during times of high volatility that large profits are made by the best traders. However there’s little margin for mistakes when you are trading the Forex markets. Having the proper tools and trading system for the conditions is what separates the winners from the losers. Forex Gridbot
The two main tools for day traders, are Expert Advisors Forex Robots and Signal Generators. Sometimes called push button trading, a signal generator tells you when to buy or sell. They don’t trade for you. This is fine in a reasonably stable market where price changes are less and more likely to be following a trend. However in a volatile market, rapid response time can make the difference between many winning trades or a loss. This is where automated trading comes in. Often referred to as foreign exchange trading robots, these are advanced computer programs that will make trades for you. You just need to setup your trading preferences and let it trade for you on autopilot. Always want to have financial freedom? Check out Forex Gridbot Program. It’ll change your Life Forever!

Learn to play the market by playing a game

Forex is a complicated system which still often confounds people with years of trading experience. Knowing how a situation usually resolves itself does not mean that you will be able to correctly predict how it will resolve itself every time. The market data is an excellent way of judging what the situation is at any given time. It is also as good a way as you will find of predicting future market behavior. Nonetheless, it is not a guaranteed predictor and consequently even the most experienced traders sometimes make a mess of things.
The less experience you have – in anything – the more likely you are to have the wrong reaction to a given situation. If this is in a golf match, then all that rests on your mistake is a little personal pride. On the Forex market, it can end up costing you real money. It is therefore massively important that you have as much knowledge to back up your every decision as you possibly can. One way of accruing knowledge without making costly mistakes and potentially bankrupting yourself is to start by playing online Forex games. These are a kind of simulator which closely reflects the real-life market and tells you how good your instincts are – without ruining you if you make a mistake.
There are Forex games available on the Internet which run entirely free of charge. There is obviously some variation in quality, and you should ensure that you check out more than a couple before committing to one. The more experience you gather before playing for real, the better your chances of making real money in the future.

Forex trading – Do it your way!

There have been some extremely successful traders in the history of the various markets, people who have made so much money in fact that they have been able to retire before the age of thirty in some cases. Whether the idea of being retired before you are even half way to the legally-mandated retirement age thrills or terrifies you, it has to be said that there is a real upside to having the opportunity. If we could all do what those super traders have done, we would surely do it, giving us more time to spend with loved ones. It probably comes as no surprise that such a way of operating is impossible.
As impressive as the idea of making billions and quitting before the market has the chance to take it back may be, we cannot just ape the actions of past successful traders and expect that to work for us. The market is constantly changing, and things that were true yesterday, a month ago or before we were even born are not necessarily so now. You need to find your own way, and this is as true of market trading as it is for anything else. As much as any other reason, this is true because sometimes you need to react instinctively. If you have been following someone else’s strategy, then you’ll be sunk because you do not have their instincts. Play it your way – learned through years of effort if needs be – and you will have a much greater chance of making a fortune.

Picking the right Forex broker for you

Playing the Forex market is something which more and more people are doing today, yet for those of us who have not yet begun our adventure in the Forex world, it can be a somewhat cloudy topic. Beginning to invest in the foreign exchange market is not something that just happens. That is to say that you cannot just walk into an office and buy some money in a foreign currency and become a Forex trader by doing so. It requires a process to be put into action, and the first step towards this is to choose a Forex broker.
Picking the right broker is not something that can be done without a good deal of prior research, as the quality and practices of brokers differ greatly from those who work with large banks (and therefore themselves have greater borrowing power and leverage) to those which are more independent but may suit a prospective trader with specific needs. It is advisable to join an online forum and discuss your own aims with the forum users. Getting a consensus for which type of Forex broker will serve your needs will narrow your possible choice to a point where you can make your own decision.
Once you have chosen a broker, you will need to open an account. Opening a Forex account involves proving your competence to deal with large sums of money – you will be playing with borrowed money if you get seriously involved, and brokers are not likely to lend to just anyone. It is also advisable to play with a virtual, paper-based account initially, until you are fully confident of your abilities to make a real profit.

How to Choose a Forex Broker

Choosing a Forex broker especially for a newcomer can be quite an intimidating task. With no clear picture of where to start of from, here are some initial points that will guide you towards choosing the best Forex broker for you.
When looking for a Forex broker, you need to check certain points. These include:
Registration: Where is the broker registered? The Forex brokers have regulating authorities like the NFA (National Futures Association) of which your Forex broker should be a part of. Moreover he needs to be registered with the Futures Commission Merchant (FCM) and the Commodity Futures Trading Commission (CFTC) in America. In UK, the Financial Service Authority is the regulating body Forex brokers.
Initial Deposit: Keep the initial deposit to less than $500 and for this you would need to find a broker that allows the low deposits. Moreover if you have less trading amount say $2000 or less than starting off with micro lots is a good idea. Make sure that your broker allows this feature.
Currency Pairs: Choose a broker that offers trading in currency pairs that you are interested in. You should ideally have a wide range of selections in currency pairs as each has its own breathing pattern
Rollover Interest: It is important to take stock of facts like whether the broker provides rollover interest whether debit or by credit, especially for traders that have to hold overnight positions. While some brokers have both the facilities others may offer only credit rollover interest
Services Offered: What services does your Forex broker offer? Does he offer 24 hour customer services allowing you to take advantage of the Forex trading hours for different currencies? Check whether your calls are answered quickly and how ell your queries are handled. News feed, market commentary and charting are some premium services that a good Forex broker should provide.
Leverage: Leverages offered by the broker whether it is a conservative 10: 1 or an aggressive 400:1 is an important factor while choosing the Forex broker.

Fundamental Analysis of the Forex Market

It is broadly accepted that there are two ways to analyze the Forex market. These are described as “fundamental” and “technical” analysis. Which of these methods works at which time? To help understand how and why, this article will look at fundamental analysis. This is a style of analysis that looks at political and economic conditions which affect exchange rates. Most commonly, these factors include employment rates and economic policies of a governing party. It therefore stands to reason that a general election in a country will have some bearing on the Forex rate for that country’s currency.
Fundamental analysis, as the name suggests, gives a broad overview of the way currencies move, and enables an understanding of where a certain currency is going. The role of fundamental analysis is to strengthen your strategy by giving it an underpinning of sound, concrete factors which have been proven, time and again, to govern how a currency will perform.
To understand the present behavior and confidently predict the future behavior of a currency, it is worth knowing things like interest rates (considered to be an indicator of continuing strength in a currency) and economic factors such as GDP and foreign investment. If a company invests in factories, offices and labor in a foreign country, it brings wealth and potential to that country, and is likely to give its currency a boost. Knowing that a country has foreign investment in the pipeline can enable confident prediction of its currency strengthening and remaining strong.

How does technical analysis work?

Technical analysis of currency movements is now, more than ever, part of the Forex market. As time has passed, different ways of collecting and displaying data have arisen. These differing ways can be taken in isolation to either create or back up a strategy, or can be combined in order to read how the market has arrived at its present point, and how it is likely to move forward. This enables more confident predictions and sounder investments. As time goes on, more data is collected and trends are reinforced. The awareness of a trend allows a more realistic understanding of the market. For someone just starting as a Forex trader, this kind of data is all-important.
One method of technical analysis is looking at diagrams and graphs. Taken over a period of time, this allows us to define and explain a pattern. One of the most popular styles of graph is the “Candlestick pattern”, which tells at a glance for any given day where the price was at the start of a period, at the end of the same period, and its highs and lows in the intervening time. Thus you can see at a glance if a currency is genuinely rising fast or slow, or falling at the same rate. The use of Fibonacci figures is another popular analytical tool. It looks at certain points in the rise or fall of a market and – with incredible regularity – predicts when it will stabilise or “retrace” (this means reversing its trend).

Where do you get your Forex data?

The systems of compilation for Forex data vary a great deal. There are as many different types of collation as you can reasonably imagine, and some of these methods have been proven over time to be, if not foolproof, then at least incredibly informative. Access to the right data is important in ensuring as high a possibility of success in your trading as you possibly can. This kind of data is freely available, but what information you can glean from it is inevitably limited as it will be full of figures that carry varying levels of relevancy. Raw data is useful only in so far as you can be bothered wading through the masses of information to find only the best predictors.
The data that will be truly useful to a trader is the information produced in a quickly readable form using only the data that is absolutely relevant. This comes in the form of charts and graphs, and this kind of data is available in up-to-date form from any good broker. There are historic Forex charts freely available on the Internet, and these can be used in order to help you understand market patterns. Once you sign up with a broker you will have more recent information, which is absolutely essential for forming a strategy. Your broker will also (usually) give you the chance to have a “practice account” which tests your reading of the data so that any mistakes you make are relatively harmless. In this way you can learn to read the data proactively and safely.