Saturday, November 7, 2009
Forex Trading at its best when technical indicators work like they should
A trader of currency market gets a lot of pleasure when the technical indicator s/he has analysed works the way analysis said. So, when someone feels that the currency pair should bounce of a fibonacci level or should bounce from EMA, and if that happens, its terrific.The same happenned with AUD/USD. My analsis of this currency pair said that it should bounce from 200 EMA. Spot that happenned in forex day trading..I went in to trade as MACD also crossed up, and made 55 pips. Most of the times I use RSI as the trigger. But this time MACD turned out to be the trigerring indicator.However, still I maintain that the most volatile currency pair is GBP/USD followed by USD/CHF and EUR/USD. They respond to technical indicators very well
Why Forex Is So Popular Nowdays?
Here the most important reasons why Forex is so popular nowadays:• Liquidity. Forex is the largest financial market in the world, with the equivalent of over 3-4 trillion changing hands daily when the volume on the stock markets is only 500 billions of dollars. • Flexibility. Because of 24-hour trading participants of the foreign change market would not wait to react on some events, as this happens on other markets (for example: stock markets). On other markets you simply can be late if you have to wait till morning to show your reaction, as in the morning the event will be already in the price, greatly differ from the desired level.• Lower transaction costs. Traditionally the Forex market has no commissions, except spread, the difference between ask and bid prices.• Price stability. High liquidity helps ensure price stability, when unlimited contract size can be executed at a fair price. It helps to avoid the problem of instability, as it happens in the stock market and other exchange-traded markets because of the lower trade volume, where at one price only limited number of contracts can be executed.• Margin. Margin size for trading on Forex is defined in the contract entered between a client and a bank or a brokerage company, which gives the opportunity to enter the market for the individuals and usually it is 1:100. So, the collateral of 1000 US dollars allows a trader to make deals on $100.000. Such high leverage combining with the rapid rates fluctuation make this market profitable but at the same time extremely risky
Increasing of Corporate Interest
A successful performance of a product or service overseas may be pulleddown from the profit point of view by adverse foreign exchange conditions andvice versa. An accurate handling of the foreign exchange may enhance the overallinternational performance of a product or service. Proper handling of foreignexchange generally adds substantially to the rate of return. Therefore, interestin foreign exchange has increased in the past decade. Many corporations areusing currencies not only for hedging, but also for capitalizing on opportunities thatexist solely in the currency
Importance of Fundamental announcements in currency trading market
Just like a space craft going to be launched requires a fire thrust to launch into air, the same way the forex trading market requires the fuel of fundamental news and announcement. Many of the times you must have seen that market is range trading meas the currency pair price is bouncing between a support and resistance line..Though its a very profitable trading situation, still most of traders prefer to trade when forex market is in trending. This is true for swing trading and day forex trading across global.
How to Achieve Financial Freedom with Forex Trading
With the growth of the forex market, there is a large amount of traders lose all their money. Unfortunately, they haven't done the simple steps presented to you. Read these steps below and give yourself the financial freedom you always wanted.
Trust In Yourself and how you decide
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. If you have the highest quality education you can get like from Forex Profit Accelerator, you have to possess self-decision instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money. That is what demo accounts and home study courses is all about.
Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. you should not allow money to be lost. you should be making more of it.
Learn and Earn
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. The good thing is Forex Home Courses nowadays is that they have customer support, Like the Forex Profit Accelerator. Bottom line? they will support you until you succeed.
The more you Learn the more you Earn.
In order to achieve and retain elite forex trading skills, you must constantly searching and learning. one significant point to look for in an elite forex trading course is ongoing education. It is always pleasant and motivating to have an ongoing relationship with the person/people helping you to achieve your goals. The support yet being independent makes an elite trader.
What separates the elite from the not is that some follows only what the people around them tell them to do. the strategies and decisions come only from the points of view of others. An elite does other wise.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
It is not hard even for a beginner to be an elite forex trader. If you are decided to be financially free, it always start with one's character, Constant learning and the right people to support you. Being an independently learning trader can bring you to new heights, and being independent means freedom, financially.
Trust In Yourself and how you decide
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. If you have the highest quality education you can get like from Forex Profit Accelerator, you have to possess self-decision instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money. That is what demo accounts and home study courses is all about.
Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. you should not allow money to be lost. you should be making more of it.
Learn and Earn
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. The good thing is Forex Home Courses nowadays is that they have customer support, Like the Forex Profit Accelerator. Bottom line? they will support you until you succeed.
The more you Learn the more you Earn.
In order to achieve and retain elite forex trading skills, you must constantly searching and learning. one significant point to look for in an elite forex trading course is ongoing education. It is always pleasant and motivating to have an ongoing relationship with the person/people helping you to achieve your goals. The support yet being independent makes an elite trader.
What separates the elite from the not is that some follows only what the people around them tell them to do. the strategies and decisions come only from the points of view of others. An elite does other wise.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
It is not hard even for a beginner to be an elite forex trader. If you are decided to be financially free, it always start with one's character, Constant learning and the right people to support you. Being an independently learning trader can bring you to new heights, and being independent means freedom, financially.
Straighthold Investment Group provides Forex trade
Straighthold Investment Group provides Forex traders with excellent working conditions on the Forex Market. The main aim of the LiteForex project is to meet the needs of entry level traders and to help them ease their way to professionalism and success in Forex trading. Our trading terms and conditions suit Forex professionals as well. All these details make us feel that the LiteForex project is really universal and unique.
Below, please find a list of the 12 major advantages of collaborating with our company:
START FOREX TRADING WITH JUST $1
The LiteForex project offers you the unique opportunity to enter the Forex market with just ONE DOLLAR. All transactions on LITE group accounts are effected in US cents, so you can trade by 0.1 lots with margin rates of 1 % at a leverage of 1:100 or with margin rates of 0.5 % at a leverage of 1:200.
Below, please find a list of the 12 major advantages of collaborating with our company:
START FOREX TRADING WITH JUST $1
The LiteForex project offers you the unique opportunity to enter the Forex market with just ONE DOLLAR. All transactions on LITE group accounts are effected in US cents, so you can trade by 0.1 lots with margin rates of 1 % at a leverage of 1:100 or with margin rates of 0.5 % at a leverage of 1:200.
Fundamental Outlook for US Dollar: Bearish
- Fundamentals support a recovery in US and global growth, but how does risk appetite factor in?
- Bernanke sees signs of stabilization, calls focus on the deficit
- Do technicals call for a dollar collapse or recovery?
It was a tenuous week; but the dollar was able to ultimately hold its own through the close. However, just because momentum behind the earnings-driven rally in risk appetite has stalled does not mean that the world’s most liquid currency has avoided a collapse all together. Sentiment winds have died down; but they can easily jostle the safe-haven dollar should another economic catalyst surface. This makes for an uncertain future when combined with the fundamental influence that the 2Q GDP report will have on the currency. Now, not only do traders have to interpret the data, they will also have to judge whether it has a greater impact on risk appetite or growth considerations for the beleaguered dollar.
Looking ahead to next week, the most immediate threat to the greenback’s stability is the intensity and direction of risk appetite. While this currency is deeply mired in speculation surrounding the economy’s leading or lagging growth potential, interest rate expectations, and deficit projections among other influences; risk appetite has proven itself to be insuperable. With the Federal Reserve vowing to keep the benchmark lending rate at levels that insure a carry status when conditions do turn around and politicians ensuring the economy will struggle with record levels of debt for years to come, there seems little doubt that the dollar will maintain its position on the opposite of risk appetite. But, considering the stalled progress most of the dollar and yen crosses saw last week; is there a strong shift in sentiment in the works? With EURUSD and GBPUSD just off of key levels of resistance, the pressure is growing. However, the primary source of momentum this past week – the second quarter earnings season – is already on the decline. If left up to the markets alone, equities have already forged new highs for the year; but commodities, fixed income and risk-sensitive currency pairs have not pushed to comparable levels. Oddly enough, one of the most likely catalysts for risk going forward also happens to be the most attention grabbing indicator on the US docket: GDP.
According to economists forecasts, the world’s largest economy contracted at a 1.5 percent on an annualized pace through the second quarter. This would be a marked improvement from the 5.5 percent and 6.3 percent rate of the recession through the first quarter of 2009 and fourth quarter 2008 respectively. This would certainly confirm policy officials expectations for a return to positive growth by the end of this year or beginning of the next; but through the near-term it is still a call for speculation to rank the economy’s performance against that of its major counterparts. China recently reported a sharp advance to a 7.9 percent pace of expansion while the UK printed a record 5.6 percent contraction. And, then there are still those economies that have yet to report their numbers. Japan suffered a record-breaking 14.2 percent slump through the first quarter, but is expected to snap back according to BoJ and Cabinet officials. The Euro Zone awaits it August 13th release, but the Bundesbank has already stated Germany saw only a ‘slight contraction’ through the second quarter. This will increasingly become a consideration of nuance.
The other facet of the US 2Q GDP release is that it will be accepted as a gauge of global growth. This further complicates the issue. Should the reading be good, the influence on risk appetite could outweigh the implications for US returns and actually drag the dollar down; and vice versa. Another important consideration is the timing of this release. Due Friday, speculators may decide to move the dollar before the data crosses the wires. If this is the case, the GDP report could factor into long-term projections but not short-term volatility. –JK
For more timely FX market analysis, visit our newly-launched Forex Stream Service.
- Bernanke sees signs of stabilization, calls focus on the deficit
- Do technicals call for a dollar collapse or recovery?
It was a tenuous week; but the dollar was able to ultimately hold its own through the close. However, just because momentum behind the earnings-driven rally in risk appetite has stalled does not mean that the world’s most liquid currency has avoided a collapse all together. Sentiment winds have died down; but they can easily jostle the safe-haven dollar should another economic catalyst surface. This makes for an uncertain future when combined with the fundamental influence that the 2Q GDP report will have on the currency. Now, not only do traders have to interpret the data, they will also have to judge whether it has a greater impact on risk appetite or growth considerations for the beleaguered dollar.
Looking ahead to next week, the most immediate threat to the greenback’s stability is the intensity and direction of risk appetite. While this currency is deeply mired in speculation surrounding the economy’s leading or lagging growth potential, interest rate expectations, and deficit projections among other influences; risk appetite has proven itself to be insuperable. With the Federal Reserve vowing to keep the benchmark lending rate at levels that insure a carry status when conditions do turn around and politicians ensuring the economy will struggle with record levels of debt for years to come, there seems little doubt that the dollar will maintain its position on the opposite of risk appetite. But, considering the stalled progress most of the dollar and yen crosses saw last week; is there a strong shift in sentiment in the works? With EURUSD and GBPUSD just off of key levels of resistance, the pressure is growing. However, the primary source of momentum this past week – the second quarter earnings season – is already on the decline. If left up to the markets alone, equities have already forged new highs for the year; but commodities, fixed income and risk-sensitive currency pairs have not pushed to comparable levels. Oddly enough, one of the most likely catalysts for risk going forward also happens to be the most attention grabbing indicator on the US docket: GDP.
According to economists forecasts, the world’s largest economy contracted at a 1.5 percent on an annualized pace through the second quarter. This would be a marked improvement from the 5.5 percent and 6.3 percent rate of the recession through the first quarter of 2009 and fourth quarter 2008 respectively. This would certainly confirm policy officials expectations for a return to positive growth by the end of this year or beginning of the next; but through the near-term it is still a call for speculation to rank the economy’s performance against that of its major counterparts. China recently reported a sharp advance to a 7.9 percent pace of expansion while the UK printed a record 5.6 percent contraction. And, then there are still those economies that have yet to report their numbers. Japan suffered a record-breaking 14.2 percent slump through the first quarter, but is expected to snap back according to BoJ and Cabinet officials. The Euro Zone awaits it August 13th release, but the Bundesbank has already stated Germany saw only a ‘slight contraction’ through the second quarter. This will increasingly become a consideration of nuance.
The other facet of the US 2Q GDP release is that it will be accepted as a gauge of global growth. This further complicates the issue. Should the reading be good, the influence on risk appetite could outweigh the implications for US returns and actually drag the dollar down; and vice versa. Another important consideration is the timing of this release. Due Friday, speculators may decide to move the dollar before the data crosses the wires. If this is the case, the GDP report could factor into long-term projections but not short-term volatility. –JK
For more timely FX market analysis, visit our newly-launched Forex Stream Service.
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