The Economic Situation Report and the Forex Market

The Forex market, like most investment markets, is often glued to economic reports that are published on a monthly or even quarterly basis.
Some of the more common economic reports or indicators that can influence and shape trade decisions in an investment market are the Consumer Price Index (CPI), the Gross Domestic Product (GDP), the Housing Price Index (HPI), and the Employment Situation Report. The Employment Situation Report is one of the most popular indicators around, where changes in the employment rate and hourly wage rates can influence overall currency rates.

What exactly is the Employment Situation Report?

The Employment Situation Report, also commonly called the Labor Report, is an economic indicator that basically reports on the number of people out of work in the country, as well as on general wage rates, etc. The first part of the Employment Situation Report is called the household survey, which surveys approximately 60,000 households throughout the country about those out of work. From that number, the general unemployment rate is calculated. In other words, the household survey is a very powerful survey that helps determine the country’s overall unemployment rate.
The household survey is basically a lagging indicator, which means that any changes that occur in the number of people out of work usually happen after changes in an economy. If the economy is strong, the number of people out of work will generally soon decrease (positive effect on the currency rate), while if the economy slows down, the effect on the number of unemployed people might not be felt until a few months later (negative effect on currency rate).

Conclusions

You come to this article probably because of you are new to FOREX and were looking for some readings on the Internet.
To be frank, FOREX can be very profitable but the risk lie beneath is equally great. Remember to always trade with proper investment plan and strategy. Read books, attend courses, watch video seminars, read papers, or even practice first with a dealer’s demo account to get yourself ready. Trade smartly, and gain the maximum out of FOREX – good luck!

Getting started in FOREX trading

You don’t need much to get started with FOREX trading. 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.

Facts about foreign currency exchange market

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 (year 1998), 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.

How do you start trading Forex?

Now you need to find a forex system that will help you along with your trading. You need to find the right system for you, so don’t ever tire of looking. You can find trading systems all over the market (the internet really) and they could and will help you make hundreds, if not thousands of times over any dime you pay up front.
You might think it’s difficult to get your trading system personalized or up and running in general, even if it’s standard. You might even find it hard to make a choice, but all it ever comes down to is knowledge, and that is what we are here for.
You can find the trading system for you if you just take into account 5 different pointers (that’s it, five!!) but before we get there, there are three things you have to know. So lets start there, and then we can move on to the pointers.
The first things you have to know is don’t fall into the gadget trap.
Just because it’s shiny doesn’t mean you need it. It’s actually, almost on the contrary. The simpler the system the better it will probably be for your forex needs, so stay away from the forex trading/cappuccino making/ironing/phone/camera combo. Stick to the basics and you will be fine. Another thing that should be obvious to you is that you, as your trading system, should be in the business of cutting losses and running with any profit possible.
You need a system that can identify possible profits and (ideally) instantly cut losses. This could save you a great deal of money, so don’t turn on your computer before you’re convinced that this is what your system does. The last of the three things you should know is that you need a system that can recognize long term trends. if your computer is only analyzing days when deciding to sell or buy, then you will never get more then pennies to your dollar, and that just isn’t enough when there are two trillion to be had.

Creating Profitable Forex Trading Systems in Five Easy Steps

There is an old saying that is loosely translated to 'if I don’t help myself, who will?’ now while this isnt very elloquent, it does convey what i want to tell you.
No entrepreneurship, no success, no money making scheme, is done if you don’t have a hand in it. So don’t rely on what other people can do for you, just get it done for yourself.
Now while this rule applies to everything, it’s specifically useful regarding the forex market (foreign exchange). The forex is the biggest, most liquid market on the planet. Basically it trades currencies and is estimated that over 2 trillion dollars pass hands each day. Just to give you perspective, the new your stock exchange (also a huge endeavor), 'only' processes about 50 billion dollars a day. Get the picture?
I bet I can guess your thoughts right about now. Well, maybe not the actual thought so much as the sentiment. You want some. 2 trillion is too much to be ignored and any person with a sturdy head on their shoulders would want a piece of the action. But in order to do that, you need to know at least the minimum for forex trading.
We understand that you can’t know or operate everything; you will need porters, or advisers or just plain friends to call when you’re in a bind, but don’t you want to be the one to make the call about whets best for you? The only way you can do that is if you learn, so make sure you understand whets going on before you take even a step into the world of forex trading.

How does a faulty Forex dealer cheat your money?

Forex market is a non-centralized market. There is no common market place for Forex traders and there is no so-call ‘standard’ in foreign currency exchange price. Different Forex dealers offer very different deals to their customers.
As an individual FX trader, you depends solely on the dealer to make a transaction in your trades, thus picking up the right dealer is extremely crucial in your risk.
You may wonder how does a faulty dealer can cheat on your money as all investment call have to go thru your decisions.
Well, here's a typical example:
Often a bad dealer is not totally scams.
They are smart persons that trick money from traders that are not well-aware. These dealers, often known as retail market makers, will often encourage their clients to trade on margin and set stop loss orders, which allow the market makers to close out trades almost at will during busy markets at prices they have set. If the market maker does not offset the trader's position, the loss generated when a stop loss is triggered becomes the market maker's gain.
Trade prices are easily skewed one way or the other depending on the retail trader's position, which is known by the market maker.
Traders can be encouraged to take risky positions just before major economic announcements. If all else fails, the market maker can quote extreme prices (known as spiking) to trigger stop loss orders while the client is at work or asleep.
The vast majority of retail FX traders are not profitable. For those losing retail speculators, much of the funds they had on deposit will be, in some form or another, transferred to the market maker.

Parabolic SAR in Forex trading

Parabolic SAR is a technical analysis method to predict entry and exit points in Forex Market. It's widely used in Forex trading market because of its accuracy during trending period. Parabolic SAR is a time/price system. It was first introduced by J.Welles Wilder in his acclaimed book "New Concepts in Technical Trading Systems" (1978). SAR stands for 'stop and reverse' and the term 'parabolic' comes from the shape of the curve (resembling a parabola) created on the technical chart.

Relative Strength Index (RSI) in Forex trading

The Relative Strength Index (RSI) is one of the popular Technical Indicators in oscillator charting methods. RSI is normally used to compare the currency strength and to predict currency price movements.
Mathematics calculations behind RSI charting: RSI= 100 - 100/(1+RS) where RS = sum of positive closing prices divide by sum of negative closing prices. RSI helps traders to predict price movements and to identify market turning points. Rising in RSI will normally followed by a rise in currency price; vise versa, downtrend RSI indicates that the currency price is more likely dropping.

Usage of MACD divergence in Forex trading

The major usage (or benefit) of trading with MACD divergence is that the MACD chart has the ability to overshadow on trend change, which in turn trigger the sell off or buy in signal. Simply said, negative divergence indicates a change of bullish trend to bearish, while a positive divergence indicates a change of bearish trend to bullish. As MACD trading is taking a relative simple approach on the market, MACD is often used along with other technical analysis (stochastic oscillator for example).

MACD Indications

Here's how traders take MACD as trading indicators. From the maths of MACD,
MACD = EMA [12] - EMA[26]
Signal = EMA [9] of MACD
A bullish signal (buy in signal) is triggered whenever
A positive MACD (12-day EMA is trading above the 26-day EMA, EMA[12] > EMA[26])
Moving average positive crossover (MACD is trading above the EMA[9] of MACD)
Center line positive crossover (MACD=0 and MACD is trading above the EMA[9] of MACD)
A bearish signal (sell off signal) is triggered whenever
A negative MACD (12-day EMA is trading below the 26-day EMA, EMA[12] < EMA[26])
Moving average negative crossover (MACD is trading below the EMA[9] of MACD)
Center line negative crossover (MACD=0 and MACD is trading below the EMA[9] of MACD)
MACD is more than just about market momentum, it also gives the signal in the trend indication.
If MACD is positive and rising, then the gap between the 12-day EMA and the 26-day EMA will be widening. This indicates that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing and this would be considered bullish. If MACD is negative and declining further, then the negative gap between the faster moving average and the slower moving average will be expanding. Downward momentum is accelerating and this would be considered bearish.
Often in reality, the Forex exchange price may drop to new selloff low but the MACD does not hit the new low, this maybe the sign of end of bearish. Or vise versa, the Forex exchange price may hit new high but the MACD might not be hitting on the new high point, this often indicates the change of trend from bullish to bearish.

Trading Forex in MACD: Moving Average Convergence/Divergence

MACD uses exponential moving averages (EMA), which are lagging indicators, to include some trend-following characteristics. These lagging indicators are turned into a momentum oscillator by subtracting the longer period of EMA from the shorter period of EMA. Translating the words into mathemathcis, this is how a MACD calculation looks like:
MACD = EMA [shorter period] - EMA[longer period]
The resulting plot forms a line that oscillates above and below zero (positive when EMA[shorter] > EMA[longer] and negative whenver EMA[shorter] < EMA[longer]), without any upper or lower limits. MACD is a centered oscillator and the guidelines for using centered oscillators apply. Besides the resulting plot, a standard signal line (or some call it trigger line) is added in the MACD graph for the indication. In maths form, this is how we get the signal line:
Signal = EMA [certain period] of MACD
Generally, a 12 day EMA is often userd as the EMA[shorter period]; 26 day EMA for the EMA[longer period]; and 9 day EMA of MACD is used as the signal line. These are the standard figures used by the creator of MACD, Gerald Appel, when the technical indicator first used in 1979. Another popular calculation periods in modern days is 7, 13, 5; where EMA[7] is used for the short period, EMA[13] is used for the long period, and 5 days for EMA of MACD (the signal line).
Again, translating words to maths presentation, this is how a standard MACD calculations looks like:
MACD = EMA [12] - EMA[26]
Signal = EMA [9] of MACD

What's a pip?

A pip is the smallest value in a Forex quote. Take our example earlier on EUR/USD. If the exchange rate goes from 1.2385 to 1.2386; that's one pip. In mathematical definition, a pip means the last decimal place of a quotation.
Note that as each currency has its own value, the value of a pip is different from one another. Say USD/JPY rate at 120.75, a pip would be 0.01 (the second decimal place); while for EUR/USD 1.2385, a pip would be 0.0001 (the fourth decimal place).

FX Quoting: Bid/Ask and Spread

There are sometimes that you can only see one price but often currency exchange price are display in pairs with 'bid price and ask price'.
For example EUR/USD 1.2385/1.2390, 1.2385 is known as the bidding price, while 1.2390 is the asking price. Bidding price is the price that you sell the base currency (EUR in our case here); asking price is the price that you buy the base currency. The different of the bidding and the asking price is called 'spread'.
You might notice that bidding price is always lower than the asking price. Ever wonder why? The different of the bid-ask price (socall 'spread') is how currency brokers make profits without charging commissions to their clients (sell high and buy low in the same time.)

Simple Moving Average (SMA)

Simple Moving Average (SMA) is one of the easiest method in Technical Analysis. SMA indicates the average price (closing.opening) of a given time period, where each of the chosen periods carries the same weight for the average.
The maths behind SMA is simple. For example you are developing SMA chart for USD/JPY closing price in 5-day time frame. The first 5 days USD/JPY closing prices are 125.0, 124.0, 126.0, 123.0, 127.0 -- thus the first dots of your SMA graph will be 125.0 (average of the first 5 days USD/JPY closing price). Assume the USD/JPY closing price is 126.0 for day sixth, your second SMA point will be (124.0 + 126.0 + 123.0 + 127.0 + 126.0)/5= 125.2. The calculation goes on for the following dots and SMA chart is defined by joining these SMA dots.
SMA graph "moves" because for each calculation, we use the 'latest number of time periods' data and drop the oldest data.

Japanese Yen (JPY)

The yen or en is the currency of Japan. It is also widely used as a reserve currency after the United States dollar, the euro and the pound sterling. The ISO 4217 codes for the yen are JPY and 392. The Latinised symbol is ¥ while in Japanese it is also written with the kanji 円.
While not a usage specific to currency, large quantities of yen are often counted in multiples of 10,000 in the same way as values in the United States are often quoted or rounded off to hundreds or thousands.
The yen was introduced by the Meiji government in 1870 as a system resembling those in Europe. The yen replaced the complex monetary system of the Edo period, based The New Currency Act of 1871 stipulated the adoption of the decimal accounting system of yen, sen, and rin, with the coins being round and cast as in the West.
The yen was legally defined as 0.78 troy ounces (24.26 g) of pure silver, or 1.5 grams of pure gold. The same amount of silver is worth about 1181 modern yen while the same amount of gold is worth about 3572 yen. The Act also moved Japan onto the gold standard. (The sen and the rin were eventually taken out of circulation at the end of 1953.)

Euro (EUR)

The euro (currency sign: €; banking code: EUR) is the official currency of the Eurozone (also known as the Euro Area), which consists of the European states of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia, and Spain, and will extend to include Cyprus and Malta from 1 January 2008.
It is the single currency for more than 317 million Europeans. Including areas using currencies pegged to the euro, the euro directly affects more than 480 million people worldwide.
With more than €610 billion in circulation as of December 2006 (equivalent to US$802 billion at the exchange rates at the time), the euro surpasses the U.S. dollar in terms of combined value of cash in circulation.
While all European Union (EU) member states are eligible to join if they comply with certain monetary requirements, not all EU members have chosen to adopt the currency. All nations that have joined the EU since the 1993 implementation of the Maastricht Treaty have pledged to adopt the euro in due course. Maastricht obliged current members to join the euro; however, the United Kingdom and Denmark negotiated exemptions from that requirement for themselves. Sweden turned down the euro in a 2003 referendum, and has circumvented the requirement to join the euro area by not meeting the membership criteria.
Several small European states (The Vatican, Monaco, and San Marino), although not EU members, have adopted the euro due to currency unions with member states. Andorra, Montenegro, and Kosovo have adopted the euro unilaterally.

Pound Sterling (GBP)

The pound (symbol: £; ISO code: GBP), divided into 100 pence, is the official currency of the United Kingdom and the Crown dependencies.
The slang term "quid" is commonly used in place of "pound(s)". The official full name pound sterling (plural: pounds sterling) is used mainly in formal contexts and also when it is necessary to distinguish the currency used within the United Kingdom from others that have the same name.
The pound was originally the value of one pound Tower weight of sterling silver (hence "pound sterling"). The currency sign is the pound sign, originally ₤ with two cross-bars, then later more commonly £ with a single cross-bar. The pound sign derives from the black-letter "L", from the abbreviation LSD – librae, solidi, denarii – used for the pounds, shillings and pence of the original duodecimal currency system. Libra was the basic Roman unit of weight, which in turn derived from the Latin word for scales or balance.
The ISO 4217 currency code is GBP (Great Britain pound). Occasionally the abbreviation UKP is seen, but this is incorrect. The Crown dependencies use their own (non-ISO) codes. Stocks are often traded in pence, so traders may refer to Pence sterling, GBX (sometimes GBp), when listing stock prices.

United States Dollar (USD)

However, only cents are in everyday use as divisions of the dollar; "dime" is used solely as the name of the coin with the value of 10¢, while "eagle" and "mill" are largely unknown to the general public, though mills are sometimes used in matters of tax levies and gasoline prices.
When currently issued in circulating form, denominations equal to or less than a dollar are emitted as U.S. coins while denominations equal to or greater than a dollar are emitted as Federal Reserve notes (with the exception of gold, silver and platinum coins valued up to $100 as legal tender, but worth far more as bullion). (Both one-dollar coins and notes are produced today, although the note form is significantly more common.)
In the past, paper money was occasionally issued in denominations less than a dollar (fractional currency) and gold coins were issued for circulation up to the value of 20 dollars.

Major Currencies Traded in Forex Market

The most traded currency in Forex market (the major seven) are United States dollar, Eurozone Euro , Japanese Yen , British Pound Sterling, Swiss Franc, Australian dollar , and Canadian Dollars.
Forex market is much USD-centered, where United States currency is involved in more than 80% of the trades. Major traded pairs in FX market are EUR/USD, which yields 28% from total trades. USD/JPY and GBP/USD come second and third, with take up 17% and 14% from the global forex trading respectively.

How high are the risk in Forex trading?

The risks of losing money in Forex trading is high, but it is controllable via proper education and trading system. Trading system is a must in Forex trading. Charts, graphs, or pivot points are handful to indicate the right time to enter or exit the market. An 'automated system', such as make your easierAs in any trade market, discipline, control of emotion, and money management are the traits needed to be succeed in Forex trading. Rewards in Forex trading can be very lucrative if traders manage their risk nicely. One benefit to using our recommended brokerage firm is that they guarantee fills at your Limit and Stop-Loss order prices with no slippage. This means you can have total control over the amount you risk on each trade. But remember, FOREX Trading is speculative and any capital used should be risk capital. In fact, we recommend that you trade on a demo account until you have shown profit for at least three consecutive months before trading real money.

How Forex trading works?

Forex is often traded in pairs, for example USD/Euro, USD/JPY, Euro/JPY, GBP/CHF, and CAD/USD. You get 'short' in one currency and you will get 'long' in the other one. Unlike conventional stocks market, Forex trading does not have a centralized trade market. It is considered as Over-the-Counter or Inter-bank as trades are done between two counterparts via electronic network or telephone connections. Forex works truly as a 24-hour market. 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.

A very brief intro on Forex trading

Foreign currency exchange (Forex) market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily. The figure is nearly 30 times larger than the total volume of equity trades in United States.
Forex is a very unique market.
Trades are always done in pairs, traders are basically buying and selling money in the same time. Beside of trading in pairs, Forex is also very special as it has no centralized trade location and trades are done around the clock.
Unlike any other financial market, investors can respond to money-value fluctuations caused by economic, social and political events at the time they occur - day or night.

Introducing Foreign Currency Exchange (Forex) Trading

Hello and welcome to Forex 101 Classroom.
So, you wanna make some bucks via Forex trading. Before you read further, let us warn you that 7 out of 10 traders keep losing money in Forex market; while the rest of the 30% work freely at home and earn millions annually.
What makes the difference is that the top 30% are either those with insider news, or those with skills and knowledge.
It is no secret that the foreign currency exchange (FOREX) market is a market full with crocodiles that you will lose your hard-earned money in a fraction of second. Yes, that's right! If you wanna make money in Forex trading, you either have to build up the network with so-call insiders (which seems a wasteful of time and energy to us); or, educate yourself well enough.
If you ever wish to get into this trading game, you better LEARN Forex trading before you start trading Forex. Forex market is definitely not a game for newbie and you need to brush up your skills before getting your hands wet.

Current economic conditions in both the US and Europe have caused a slowdown in the sale of gold by banks. Sales of gold by European banks are expected to be lower this year since banks are trying to mitigate the risks of paper assets. Banks in Asia and the Middle East are expected to become buyers of gold to diversify away from the US dollar. The main reason cited for central banks holding gold is the instability of the US dollar.Although the dollar has rallied against the Euro recently European banks are uneasy about the long term stability of the Dollar. The European Central Bank Gold agreement allows the sale of 500 tons a year but sales have fallen short of the ceiling placed on gold sales and current sales amount to 357 tons. Said metals consultant Philip Klapwijk, "Given the damage done to a lot of other paper assets that were formerly considered secure, there will be greater risk aversion among central banks." This will only boost gold's status within central bank reserves. Bundesbank, with the second largest gold reserves in the world after the U.S. Federal Reserve, announced that it would sell no gold during the next 12 months. After announcing the sale of 250 tons of gold the Swiss National Bank announced it had no plans to sell more gold.Earlier in the year the Dollar slipped to record lows against the Euro and many European central banks are expressing doubts over the long term future of the dollar. Again Mr. Klapwijk states, "There are more and more questions being placed against the U.S. dollar and its role at centre of existing international financial system." Since World War Two the US dollar has been the standard against which all other currencies are measured. The current crisis in the US has many questioning the wisdom of pegging currencies against the dollar.Demand for gold is predicted to increase with corresponding rises in price. Financial concerns are making gold more attractive as a reserve asset for central banks. Gold is seen as a confidence building and stabilizing influence on a country's currency. While gold prices are not expected to skyrocket as in the past, increased demand is expected to increase prices.What effect this will have on the interbank Forex markets is open to wide speculation. Markets, including the Interbank Forex, are taking a wait and see approach due to the US financial crisis and concerns about the proposed bailout. The US bailout bill passed overwhelmingly in the US Senate and a vote is expected in the House of Representatives by Friday. Until then markets will probably remain in a state of limbo.

Interbank Forex and the US Bailout Agreement

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Key bank to bank long term lending rates in Europe jumped to their highest since 1995 from 5.142 to 5.237 a move sure to reverberate through Interbank Forex markets. The six month rate also jumped to 5.315 from a former rate of 5.290. European rates are fixed by the European Central Bank. (Euribor) It is becoming painfully obvious that the financial crisis is not limited to the US.The US financial crisis has become contagious, spreading to European banks and financial institutions and Interbank Forex markets worldwide. In the UK mortgage giant Bradford and Bingley had to be rescued by the government. Shares of French bank Dexia tumbled more than 20% because of a newspaper report that the bank may launch an emergency capital increase. On Sunday the governments of Belgium, Luxembourg, and the Netherlands announced an 11.2 Euro bailout of one of Europe's largest banks.Markets, including the Interbank Forex, have been in a state of disarray with global money markets waiting for the details of the proposed US bailout. The US congress is set to vote on the compromise bailout package on Monday, September 29th. After almost a week of political haggling Democrats and Republicans have reached an agreement. Highlights of the bailout plan include;* The government would have broad powers to buy billions in mortgage related assets.* The plan lets congress block half the money. The government can access 250 billion immediately, 100 billion more if the president certified it was necessary, and 350 billion more with a separate certification.* Executives of companies who benefit from the bailout will see limited compensation.* The plan requires the government to try to renegotiate bad mortgages with the intention of lowering monthly payments.* The government would receive stock warrants in return for assistance, giving American taxpayers the opportunity to share in future profits.* After five years the government would submit a plan to congress on how to recover any losses from companies receiving assistance.Financial analysts are hoping that the passage of the US bailout plan will bring a semblance of stability to global markets. With the crisis spreading well beyond the borders of the United States passage of the compromise bailout plan is seen by many as a way to stem the tide of bank failures in Europe. Credit markets and interbank lending have all been virtually frozen by the US financial crisis and it is hoped that the infusion of billions of dollars will cause credit to flow freely again.

Online Trading Makes Sense In Todays Business

Money holds an important place in our daily life. Everybody wants to earn money. Some are capable of earning via more complicated methods whereas some are content with the traditional ways of a job. The brave ones are those who trade in the foreign exchange markets through online trading. The Forex market happens to be the worlds largest trading portal with over a trillion dollars being exchanged everyday. This world never sleeps and is active throughout the year. It is the dream team to be a part of.Every trader desires to be included in this league. It is a global effort and a trader can earn a huge amount of money by joining it. In addition, who would not want to trade in the biggest monetary market on the planet? To support you in Forex trading, Forex online trading software is obtainable in the marketplace. The nature of this software is excellent. The software enhances your assistance by automatically buying and selling currencies for you. Forex trading software can be suitably utilized by the traders who take high risks for the monetary gains. Traders can select from the type of software they like the most. Various web sites around the internet will offer you a free trial of the software once you sign up for their utilities. Forex online trading systems are a foundation to trade the Forex markets. This kind of online trading makes you find your own rules, ideas and beliefs. Internet is the home base to most of the Forex dealings. This is one of the most sought after businesses in the world. Many online trading systems are available on the internet. At times you can even get hold of free software but you have to conduct some searches on the internet. There are some Forex online trading systems that will give you their services by charging a fee.In order to achieve true benefits by trading the Forex, it is significant to have a good online trading system. This is the reason behind the fact that many forex traders test and try various online trading software before finalizing on any single one. It is the intelligence behind your investment. Therefore once you have your knowledge and techniques, it will take care of all the transactions in future. The Forex market is open 24x7 and transactions take place at a fast speed. Online trading systems allow the investors to trade effortlessly and rapidly. Due to the easy availability of online trading, many people across the globe are trying to understand the nitty-gritty of the foreign exchange market. Everybody wants to be a part of this market. Various brokers and financial institutions offer advice in these matters. Most of the people prefer to find the online trading systems that works for them on their own.

Do Forex Indicators Really Help Professional Currency Traders Make Millions Utilizing Them?

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In fact, a big bank failing once a week or so would suit them just fine. Why, because the Forex indicators where so easy to read and consistent once a currency made a trend line turn the traders had some of there best weeks ever. Where as, the stock traders for the most part suffered substantial losses.The financial disaster reminded me of my brother and hurricanes. He is a painting contractor in the state of Florida and every time a hurricane comes through the state he makes millions. If you sit and observe him watching TV you will find him rooting for a hurricane just like somebody watching a football game. He will start yelling, "no don't go to Louisiana, they have already had enough this year, can't we just get one big one in Florida?" One mans tragedy is another mans blessing, as the saying goes. And thanks to the financial catastrophe in America there are many FX traders on the way to the Bahamas for a vacation or maybe permanently, who knows? But, we surely one happy bunch!Now that you know the institutions and private investors participating in the Forex markets did real well due to the mess in the US, I am sure your wondering, exactly how did they do it? A Forex indicator can come from so many different sources; in fact you are bombarded with them every time you watch the news on television or read the newspaper. You just have to be aware of them and know how to use them. The dollar after the news coverage of a specific event was like a bouncing rubber ball offering huge profit potential if you knew how to take advantage of it. One of the most important Forex indicators actually come in the form of reports from governments world wide, interviews with public officials and leaks by those same officials when they don't want their name associated with a story.After you receive a Forex indicator from reputable news source the next step in the process is fairly simple. Do exactly what the professionals do, which is look for a signal from their software that the currency relating to the news coverage has been received and you are ready to make a move. If you are a conservative trader you might want to check and determine if the trend line on that currency has also moved. If you receive all three of these indicators and they are all consistent with each other then this represents a HUGE buying opportunity and it is time to be in the market. Exactly how many of these do you need to make substantial sums of money, don't bother I will tell you, NOT TOO MANY! If you keep it simple and follow your Forex indicators and don't get greedy thinking you know everything you are on your way to financial freedom all of want.

Build Your Investments With Global Forex Trading

Global forex trading (forex, of course, meaning the foreign exchange market) has become more and more popular in the last few decades, mostly due to the advent of the global economy. Never before has our economy been so intertwined with every other country. It is perfectly common now for people to convert large amounts of money into various foreign currencies, then back again. The forex market is the largest market in the world, and includes everything from banks to governments to independent speculators. The daily volume of the global forex trading market exceeded four trillion dollars on average last year, making it a very attractive market to get involved in.Several things separate global forex trading from other markets. Its trading volumes, the large number and variety of traders, the global dispersion, the variety of factors affecting exchange rates, low profit margins (but profits are often very high because of large volume trading), all contribute to make the global forex trading market the closest thing to the perfect competition. Foreign exchange has more than doubled since 2001.Another way that global forex trading is separated from other markets, for example the stock market, is that it is divided into different levels of access. In the stock market, all competitors and investors have access to the same prices. In the global forex market, however, the inter-bank market is at the top. As the access level drops, the spread (that is the difference between the bid and ask price) widens, though it is still possible for a low-access individual to make large amounts of money. While there is not a central market for forex traders, there is next to no cross-border regulation. Global forex trading is often referred to as OTC (over-the-counter), which makes for a large number of intertwined marketplaces. Therefore there is not so much a single exchange as a number of separate rates or prices, depending on which bank is doing the trading, and where it is. Differences in exchange rates are usually caused by changes in GDP (gross domestic product), inflation, interest rates, budget and trade deficits or surpluses, and other large-scale economic transactions and events.Global forex trading is something not many people consider for investment (who would think that so much money lies in money), but worldwide forex trading continues to flourish for a reason. Individuals all over the globe are investing in the forex market and making thousands of dollars every day.

Forex and Stock Market - Find the Difference

We should remember that success of the workers in financial institutions depends on how many people they attract into the business of trading and how many transactions these clients make. They have direct financial interest therefore their opinions can be biased. Some of the widely known opinions are:In Forex traders burn out much quicker than in stock market.There are trading systems that allow anyone to become a millionaire quickly.Let's consider these opinions more closely. I couldn't find any reliable statistical data about participants in Forex and stock market that would have the following parameters.1. The number of traders who start trading. Percentage of traders who continue to trade after one, two and tree years. How successful their trading is.2. Relationship between beginning balance of their account and ending balance.3. Relationship between method of trading and success rate.There is no reliable statistics on these parameters. Only opinions and estimated guesses. The reason for the absence of such statistical data is understandable. It's a commercial secret. Nevertheless I can confidently say that there is no dramatic difference between trading Forex and trading stocks. There is no difference in opportunities to earn money as well to lose money in those markets. There is no or very little difference between them because in financial market you trade risks and probabilities not currencies, stocks and futures. The difference can be only in the rules of game, methods of execution of transactions, and liquidity of the market.Now let's talk about magical trading systems that allow you quickly and safely become a millionaire. They may say the system is a work of genius and sell it to your for some amount of money. Do you believe in it? It's true that you can't work in market without a system. Therefore any system has a right to exist. I don't believe in magical systems or universal machine that will make you money while you sleep.You can make money with any system if they are based on mathematics, psychology and discipline. It's not important what the system uses. It can use good old indicators like RSI or MACD. Or they may be built on some new indicators. You even can base your trading system on the number of blond women you meet on your way to office. But if you don't have a discipline to implement it consistently no system will help you.There are many more different opinions about Forex and stock market. The one common thing is that you can make money in any market. The only thing you need is to make well thought decisions and have a discipline to follow through with them.

Professional Forex Trading - 4 Steps to Trading Like a Pro and Winning

If you want proof of the fact anyone can learn to trade then you should read the story of "the turtles"This group taught by trading legend Richard Dennis, had no experience yet within 14 days were on their way to making hundreds of millions.Ok you may not get as rich as them - but it shows the potential. You can turn yourself into a forex pro in 14 days and then be piling up profits, in just 30 minutes a day or less.Step 1 Take ChargeAs on all areas of life you need to take charge of your financial destiny and don't fall for a mentor, guru or robot will make you rich they won't. You're on your own.Now you need to learn the right information and get your forex strategy formulated.If you have a burning desire to succeed and are prepared to work hard, you're on your way.Step 2 Your Forex Trading SystemThe best systems are simple and yours should be to.If it's simple it will be more robust with fewer elements to break than a complicated one. If you can base on long term trend following and breakout methodology, this is a timeless way to make profits and can be executed in under 30 minutes a day. Look up our other articles to learn more.Step 3 Money ManagementForget about clever methods or market timing being the key to success it's not its money management.To win you have to play great defence first. As one famous trader said "if you take of the losses the profits will look after themselves" and remember to win, you need to bet and you can't bet if you have no chips! Ok ,it's a poker saying but applies to forex trading.Step 4 Patience and DisciplineThis is the key to success.You can have the most successful method but unless you can apply it with patience and discipline, through losing periods and until you hit a home run, you will never win.This sounds easy - but most traders cant keep going through a losing period, its hard when the market is taking your money and making you look a fool - but to win in forex trading you have to lose, its part of winning.If you have a robust method and a disciplined mindset and stay on course you can make big profits.Professional forex trading is all about working smart, getting the right knowledge, building a simple strategy and then applying it for success. Anyone can do it and if you want to you can and take charge of your financial destiny and get on the road to success.

The Best Forex Training - The Insider Secrets at Your Disposal

This means that in order to trade it successfully it requires solid strategy and also a proficient understanding of indicators and how to use them if you wish to make money.The truth is that very few people are even able make consistently small profits in this market, while a few are highly successful and make a killing.Gaining The Insider Secrets To Forex EducationThe fact is that currency trading is an education in and of itself. This is a profession where learning will never really end, yet to get started profitably it requires a huge learning curve that quite honestly is just not possible to achieve with a lone wolf, "I don't need anyone" strategy.This means that if you want to trade profitably you have to get yourself under the study of an expert who already knows the markets and can profitably take profits from them. This leaves you with really only 2 options for the best Forex training.The Only 2 Options For The Best Forex Trading.Option number one is to get yourself into the confidence or employ of a successful trader who has already proven his track record.This option is a little difficult as most private traders are closely guarded about their trading techniques and strategies, and most institutional traders (banks, financial companies) are large corporations who look for employees with the highest qualifications. This would usually mean a degree from Harvard, Yale, Or Wharton.If this fits your resume then this would be a great option.The Option For The Rest Of Us...The option for the rest of use is to employ some of today's Expert Adviser software products. These system based software products give the insider secrets that real traders use every day in live trading.It is expert trading advice based off of these peoples profitable trading strategies and techniques.While each piece of software is different, the reputable ones base their trading decisions off of technical indicators that are either trend following systems such as moving averages, or breakout trading such as pivot point systems.Most of the better systems use complex trading theories such as Fibonacci and Gann based trading. But the bottom line is that these software based Expert Advisers are the best option for the normal gal or guy to get their feet wet in the markets and start learning how to trade without emotions as well as learn some really solid trading methodologies.The Best Forex Training In A Box - So To Speak...If you are interested in the concept of learning how to trade under the study of today's Expert Adviser Software then be sure to study the different facts and features as each one uses different risk management, money management as well as trading techniques.

Understanding The Forex Calendar

A forex calendar (also called a foreign exchange calendar or an economic calendar) is one which is designed to help traders and investors learn about upcoming major economic information, such as the consumer price index, private medical insurance rates, and unemployment rates. Even government reports are included. These calendars operate on a much shorter time scale and they are generally released every hour or so. There are many tools at the disposal of a global trader and the forex calendar is an integral one. One can hardly make decisions (or be informed about a managed account) if one does not know the current state of the market, and keeping tabs on a forex calendar is an easy way to do just that. This, in conjunction with sharing trade strategies or advice across the web, can really give a relatively new trader that extra edge. The calendars make it easy and quick to keep up with recent economic events. Although the foreign exchange market is extremely stable, even small events can cause brief ripples in the market and give a patient, observant investor time to slip in and make a tidy profit.One can hardly consider oneself up-to-date with economics without paying at least some attention to the global currency exchange. It is one of the largest and certainly the most stable market currently available (not to mention the fact that it is widely considered to be perfect competition), and offers trading opportunities on a wide variety of scales, from individual to corporate, from small amounts of bills to huge transactions. There is a lot to keep informed about, and forex calendars can certainly help.Without the aid of forex calendars, investors would hardly know when to act (and even still, what action to take!). It is highly recommended that the budding investor (or long-time traders who want to be sure to stay in touch with the market) pay close attention to the information offered by the foreign exchange calendars. If you are going to react quickly and effectively to the ever-changing foreign exchange market, you will have to make absolutely sure you know what is happening, and when. It probably is not a bad idea to check a calendar several times a day and record any changes to the market, which would allow the savvy investor to react accordingly. Want to get the most out of your account? Be sure to check a calendar.

Introduction of Automated Forex Trading Systems

There are many companies that create forex trading software, trading systems, signals and alert services. Money management strategies and potent trading systems that skyrocket your profits. How do these forex trading systems work?Ever since the introduction of automated trading systems, there has been a surge in interest in this type of trading. Today this market is attracting small and medium investors so banks and other financial establishments are no longer the only players. At this market currencies are traded from various countries of the world. Because trillions of dollars are traded 24/7, it makes this one of the largest and most active financial markets.Now that there is internet and advanced computer technology in place, any one with an internet connection, a trading account and good brokering knowledge can trade in forex. Close and constant monitoring is required if you want to keep your position as the global market never sleeps. Automated systems allow you to pick up a currency and record the asking and selling price. All that's required is a small seed amount and a broker because your buy and sell orders would be executed instantly.

An Examination of Forex Accounts

With the rise of the global forex (foreign exchange) market, many investors have been looking into forex accounts. But just what are they? A foreign exchange account is the account a trader opens with a retail forex broker. The first type of account is often called a demo account. Once a new trader has tried demo accounts with several traders, he or she will usually move on to a funded account. These are split into three categories, mini accounts, full accounts, and managed accounts. Full accounts trade currency in batches of one hundred thousand, whereas mini accounts do so in groups of ten thousand. A managed account is where a money manager does the trading (for a fee) on the clients behalf.Due to the various qualities of forex trading, forex accounts have been widely successful worldwide. Since the trade volume, large number of traders, dispersion, variable exchange rates, and high profits (with low margins and high volume trading) all contribute to make the foreign exchange one of the most powerful markets in the world. Anyone who considers themselves a global investor absolutely must at least take a look at the various opportunities available in the forex market.It is important for the new forex investor to decide what type of forex accounts they're looking for in order to suit their needs. A small-scale retail investor, for example, will probably want a demo or mini account in order to learn how to exploit a profitable market and become accustomed to the various banking methods involved. Some traders who have the extra resources to have someone manage the forex account for them may be more interested in a managed account.

Striking Out Alone With Your Trading Career

If you are going to survive in day trading, you need be one tough individual. You need to be self reliant and maintain enough promise to your own welfare to know the ins and outs of how to be individualistic enough to succeed. Often you need to be developing your own compass, charting your own territory and developing your own leads. If you need the chronic approval of other people, you aren't likely to make it in the world of financial trading.People often make decisions based on the opinions and actions of others. Traveling in packs is natural, almost every wild animal forms some form of pack to help ensure its safety and survival in a rough world. Humans do the same, learning from the rest of the crowd was has been deemed "safe" and what has not. Thus when we make decisions in our lives as traders, we tend to feel safer when we follow the crowd and hang with the pack. This is not however, generally considered the most profitable approach. Many investors handle their lives in mediocrity. There is a safe and pretty assured return in many of the trades that are done with the blessings of our peers. Yet the profitable trades are the ones that ask us to move beyond our comfort zone and stretch out into the world without the protection of the rest of the pack. We have always been taught to go with the crowd, be part of the "in" crowd, follow the group, don't stand out, and by God by all means you must be normal. Striking out on our own and making decisions that are completely different from our safety pack can make us feel different enough to be ill. Fortunately, it doesn't need to be that way. You can develop the skills and self confidence to strike out on your own, trade with the big kids, and not worry about the impression that someone else has about our decision. It takes a little time and a dedicated effort, but it can be done. When it is done, and done well, often the results are absolutely mind blowing.When you develop a sense of self esteem as related to your trading decisions, you can strike out with confidence. Of course, not every decision you make against the grain is going to be a huge winner, but those that you succeed with are going to help you make your mark. One of the biggest drawbacks of going with the crowd is that you lose your ability to decide for yourself whether the trades you are making are definitely in your best interest. What might be in someone else's best interest may not be in yours. And that's okay. Neither one of you have to be wrong, just different. When we follow the crowd we lose our own sense of judgment, we even start to think like others when perhaps originally we came to the game with an entirely different thought process. Is it important to listen to others and learn from their mistakes and their experiences? Absolutely. Does that mean you should follow them blindly no matter what our instincts tell us? Of course not. We are growing individuals with different plans, goals, strategies, and desires. Unless you are making choices for yourself you start to become a victim of the trading industry and it won't be long before you find that you are becoming disgruntled.Going with the crowd often means that you are a little bit behind. Unless you become your own trend setter, you have to wait for the trend to develop. By then, the trend has nearly passed you by. Leaving enough time to wait for the majority to hurry up and act so that you know what to do leaves the doors open for a missed opportunity. When you decide for yourself and make decisions based on the information you have and the best interest of your account balance, you get to become the trend setter. And that is almost always much more profitable.

Speaking Like a Forex Pro: Learn Forex Jargon

One aspect of trading the Forex, or even talking to Forex traders, that can be really intimidating is that the Forex market has an awful lot of jargon. For those of us who have been trading for years, this jargon comes as second nature and we don't even think about it anymore. If you're just getting started, however, you might not know a kiwi from an Aussie, a major currency from a minor, or the base from the cross in a currency pair. When you take all this into consideration, it's easy to see how intimidating that can be.This article will set out to help you get started. There is a lot of Forex lingo, but at least now you'll be able to jump into the game a little bit more after knowing these common Forex terms:"The major currencies." There are eight major currencies, which are: the U.S. Dollar, Canadian Dollar, Australian Dollar, New Zealand Dollar, the Euro, Japanese Yen, the British Pound, and the Swiss Franc."Minor currencies." This is any currency that does not belong to the major eight. So even currencies of large economies like Brazil, Mexico, Russia, China, and India are all still considered minor currencies."Base currency." This is the first currency listed in a currency quote, and is always measured in a unit of 1."Cross currency." The second currency listed in a currency quote."The Aussie." A slang term for the Australian Dollar."The Kiwi." A slang term for the New Zealand Dollar."The Bid." Refers to the bid price, which is the price the market will currently purchase a specific currency pair for. The bid price will always be higher than the ask price."The Ask." Refers to the ask price, which is what you will sell a currency for. The ask price is the one used when selling."The Spread." The difference in value between the ask price and the bid price. This miniscule difference is how some brokers make their money off Forex traders instead of charging a commission."Bull Market." A market distinguished by an overall rise in price."Bear Market." A market distinguished by an overall fall in price.This is hardly the end all, be all, of Forex lingo, but this article should at least give you a good informed start into getting comfortable with the slang you'll hear around the Forex markets. Knowing what these slang terms mean will make the transition into currency trading that much easier.

Forex Forums Can Be Your Advice Online

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What better way to share strategies, ideas, and portfolios than over the internet? There is a quickly growing number of forex forums scattered throughout the web, all of which are dedicated to making the foreign exchange market run smoothly and profitably. Whether you're a new investor seeking advice on how to operate in the global market, or a long-time trader with a few secrets to share, online forums devoted to the trading of currency are sure to have something for anyone interested in the worldwide economy. Even if you aren't a trader yourself, the knowledge gained about how the global market works is sure to make a difference in your life.Forex forums can be a great help to a new forex trader because there is a great amount of information in forums and a lot of experienced traders in these forums answer questions and give recommendations that a forex trader can use. Information is very important and unbiased knowledge can be had at many good forums especially when it comes to forex ideas, forex software and broker recommendations. A lot of new forex buy and sell software is discussed in forums and traders write about their experiences with them. Gathering crucial information will help you form your decision before buying a particular software or forex trading system.Thanks to several forex forums, investors can now set up trades and read important news updates regarding how money across the planet is fluctuating. While the foreign exchange market is notoriously stable, the best players know that if they keep updated, they're sure to have an edge over traders than don't. Any investor worth his salt makes regular visits to at least one forum to check up on important events that may have taken place.Especially considering that the foreign exchange market is open twenty-four hours (except on weekends), and that the information on the forex forums is available to anyone at any time, traders who keep updated can act quickly and decisively when they note a change in a specific area of the market. If you consider yourself an active trader, the incredible liquidity of the market and the constant stream of information available from forums make it obvious why the foreign exchange is something to consider. Other common forms of investments, bonds, stocks, and the like don't really give the active investor much of an advantage. A dedicated trader on the forex market, however, can get a real edge with the aid of certain tools. The online forum is one of these tools.Whether you're looking for market strategies or a technical analysis of a certain aspect, or even just past experiences fellow traders have had, there's sure to be something of interest on the various forex forums online. Some even offer the psychological aspect of global trade, and may have links to applications or tools you can use to your advantage. Any trader who wants to keep updated on the global economy (and get a little head start) need look no further than his screen.

Striving to Become the Best Forex Trader

The foreign exchange market is becoming more and more popular among investors, especially those interested in the global economy. But how can you get the most out of your money? What can you expect from the best forex managers and trade strategists? The kind of services you require will be based on what your personal goals are. As an individual investor, you may be interested in setting up a demo, mini, or full account. Depending on the type of account you choose, you will be trading up to one hundred thousand units of currency at a time. Transactions this large can be a little risky, even if the market itself is stable, and so you want to make sure you are getting the most out of your trade strategy.Many of the large brokerage houses charge thousands of dollars for their forex training courses and seminars. New investors cannot afford this, so they don't get the proper knowledge one requires to do well in the these markets. There are many free forex advisory and forex training services on the internet. Investors should take advantage of the free internet forex training while getting started. Don't be like many new forex traders who sometimes ignore this training and trade to soon in the Forex market. A person needs proper education and training. These new traders lower their chances of trading success greatly. A good training will be beneficial to those interested in making money the currency market. They should be no excuses to learn the proper way to forex trade.What can you do to assure yourself that you have the best forex money manager or trade plan? There are a great number of brokers and trading firms to choose from, all you have to do is select the one that best fits your style. If you want to stick to small-scale trades and you can manage the accounts yourself, a demo or mini account is probably best. If you are doing large-scale transactions, either with or without a firm, you may need a full account or even a managed account in order to correctly and smoothly reach your goals. Make sure you know your manager and his policies to ensure that you are getting the best forex traders on your side.Being successful in the global economy is not necessarily that easy, but it can certainly be easier when you make sure you are working with the best. The best forex managers out there know (and can teach you) exactly how the market will react to certain economic events, which currencies to buy and when to buy them, and how much of a profit margin you can expect to receive for various kinds of currencies. There are several things you want to look for to make sure you are employing the best forex traders available, assuming you are going for a managed account, a diverse portfolio, market experience (preferably with a firm or a solid amount of successful trades), consistent returns, and fair rates are all important qualities. When you are looking for the services of a trader, make sure you emphasize the importance of these characteristics in your search, and you will be sure to get the most bang for your buck. Success is something that comes by work but it does happen with the best forex knowledge. Have a good foundation to start with when trading in the forex market.

Speaking Like a Pro Forex Trader: Learning More Forex Jargon

There's far more Forex jargon than can be covered in just one article, but this article will also help to fill in more of the most common Forex jargon for beginners. No matter what the group (doctors, astronomers, basketball players, poker players, etc.) each group has its own distinctive lingo. The Forex is no exception, and the sooner you learn some of the lingo, the easier it will be to follow tutorials, learn how to trade, and start holding your own in conversations with other professional traders. So without any further delay:"Lots." This is more than lingo, and not a word referring to a lot of something. Lots are specifically the bulk amounts of currency required for trading in the Forex market, most currencies are priced in lots of $100,000."Margin." This is the minimum amount of money needed to put up to place a trade with a broker. As long as you have this minimum amount in your account you can trade. When your account falls below that margin amount, all your open positions in the Forex market are closed out."Margin Call." A margin call is made when, due to losses, your account falls below the allowed minimum for a broker account. When this happens the broker makes a margin call, which will close out all your open positions in the Forex market."Limit Order." This is an order to execute a trade only if it hits a specific price or better."Carry Trade." Depending on what Forex traders you hang around with, you could hear this one a lot. A carry trade is a trade where you choose a currency pair in which you go interest positive, meaning that you are earning daily interest on your trade because of the difference in interest rates between the two nations."Counter-Trend." Many people think this means trending downward, but that is NOT correct. A counter trend market is a market that is not trending either way, meaning all movements are basically staying within the same channeled area."GTC Order." Good Till Cancelled Order. This is an order placed for a currency pair that will remain in play until the trader shuts that position down."OCO Order." One Cancel Other. A type of trade using two orders that are set up by trigger values. When a currency pair hits a trigger, that trade goes into effect while the other is automatically cancelled.

Forex Blogs - Separating the Wheat from the Chaff

There are a lot of Forex blogs out on the web, and while some of them offer really good advice, others are mostly just fluff with an affiliate link. That doesn't mean that you shouldn't search high and low for a good Forex blog.A truly quality Forex based blog online to help teach you the ropes of the market, but you do want to make sure that you're following and absorbing the advice of a good Forex blog that is being posted to by an actual trader who knows how the Forex works.Don't take the advice of someone who is only into theory and can't trade for a profit themselves.There are several tell tale signs you can look for when looking over a Forex blog that can help you determine whether or not that blog is one you should be listening to, or one that you should actually ignore completely without a second thought.You Should:1) Look for a blog that is posted to by someone who actually trades the Forex. Would you learn locksmithing from anyone other than a locksmith? Then why would you try to learn Forex from anyone other than an actual trader? Theory doesn't count. If the person doesn't actively trade, don't take their advice.2) Look for a blog that gives actual useful information. I'm not talking about a step by step guide to the person's trading system, but each post should provide some information or advice that helps you learn a little bit more than when you first showed up.3) Learn some about the Forex market yourself. There's enough free information from reliable authority sites that you should be able to learn about all the basics of how the Forex market and Forex trading works, and that will help you spot a phony from a mile away.4) If anything sounds really fishy, ignore that "expert" and look elsewhere.Using this advice as a guide should help you to be able to determine whether a Forex blog has any true worth to your ongoing Forex education or not. If not, drop it like a bad habit and don't return. Your objective is to get good at trading, not to keep skimming blogs to see if someone else is beginning to get it.When you find a Forex blog that gives good solid information and really strives to help you learn about the market, then read all you can and you'll be on your way to being a better trader

Forex Trading Systems: The Key to Forex Profits

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While there are many different opinions between various Forex traders about which methods and strategies are best, there is one singular point that every Forex trader will agree on: you absolutely must have a great trading system to profit consistently. A great Forex trading system is the difference between profiting consistently from Forex trading and from finding yourself busted. There isn't a lot of middle ground, either. The right system will make you a lot of money. The wrong one will strip you of your entire investment.A great Forex trading system is one that first off will be successful at trading the market. If it doesn't make money, it's not any good. That part is obvious, but another part of that equation is how often the Forex trading system can actually be applied to the real and constantly moving currency market.Is it only when the market is trending? Counter-trending? Breakout? Is the system a combination of two of these, or some combination of all of these? How often the trading system can be used and how restricted the system is by market conditions. The market does not breakout often, but the best opportunities to get massive profits are during the breakout market. So a Forex trading system that is designed to be able to trade effectively no matter what state the market was in is obviously going to be far superior to any system that only trades with one market movement or in any other limited situation.Every successful Forex trader has a solid, tested, and proven Forex trading system. The same is true with any actual company that can consistently make money trading the Forex. This point can't be emphasized enough. Any company or individual trader that can consistently make money trading the Forex, and teach others how to do so as well, must be using a time proven Forex trading system. If you are only going to take one piece of advice from this article, then make sure it's this one: find a successful and time tested Forex trading system.Find a Forex trading system that has been used and tested for at least a couple of years, if not longer. The longer a company has been profiting from the Forex, and the longer that system has been tested, the better the chances of you coming out of trading the Forex grinning ear to ear about your new fortune.