27th March 2013
One of the best online ways to make some money today is through trading Forex and the success of so many individuals points to this. This is something that anyone can and does do with varying degrees of success; all you need is a high speed connection to the internet and essentially a trading account. Many brokers will offer facilities to you for only a small deposit; you do not have to commit a lot of capital to the project to get a foot in the door.
Because the entry to the Forex market need not be expensive this means that it is the best way for those that are new to Forex trading and it is something that you can even do part time to see how it all works. Choose a broker who will let you set up a Forex demo account, which may be the very best form of learning without the risk of losing money. Another way could be to see what courses are available which can often help you come up with a defined trading plan and enable you to study and learn in your own pace.
No matter what your learning style might be, it is essential to obtain a good foundation and learn the principles of Forex before committing yourself into a live trading account. This way these courses and a demo account will help you unlock the secrets to making great cash in the lucrative Forex market.
22nd March 2013
Sitting at home on a daily basis, locked away from the world can feel lonely at times. While there are of course many advantages, such as the luxury of avoiding commuting and of working in a dressing gown, it can occasionally be difficult to have no one else present to bounce ideas off.
While forex trading is a solitary activity, many traders benefit from learning new techniques, skills and systems from others. As most traders are in the same boat, a thriving online community has blossomed.
Taking a risk, like using a new trading system, can be daunting if a trader has to make the decision alone. Discussing it with others gives the opportunity to obtain a range of perspectives and opinions on whether the system is likely to be effective.
Traders can find all the education and discussion they need online. Forex forums and chat rooms are especially useful, giving traders an easy way to share their knowledge and communicate.
Blogs are also a convenient and interesting resource. Websites like www.forexrobottesting.com and www.ispyforex.com give traders some valuable insight into the forex world. For those who prefer face-to-face discussion, many forums promote Skype meetings where members can share their tales of success and failure over the webcam.
Humans are social animals, and forex traders need a way to share their good and bad times with others. Hearing other stories is a great way to provide inspiration or learn from mistakes. Sharing the same experience with others makes trading that little bit more enjoyable.
19th March 2013
If you are one of the many that is staring turning from the traditional stock market and taking up Forex markets (FX) the best advice is to use a FX trading broker, they have access to many systems and the help that they can give you is invaluable. Forex is another name for the foreign exchange market which deals with foreign currencies. Before we saw the rise of the internet and the very common use of computers in most home, previously this was confined to banks and large financial institutions.
Today all business can be done online at all hours by anyone provided they have a computer and internet connection of course. And the FX market is open 24 hours a day! Choose your broker carefully a good broker and provide you with some excellent advice which can eventually help you learn how the FX market works. Pick one that has a demo account that will let you practice and get to know the way the FX market and dealing works, before undertaking and deals. Find out the type of software or platform that they are using so that you can have the same compatible information when in discussion.
14th March 2013
Not unusually the overnight night Forex news comes into the City in the early hours and shows that entirely in line with expectations the Reserve Bank of New Zealand opted to maintain New Zealand’s domestic interest rate at 2.50%, but hinted that due to the positive domestic economic indicators, a rise in the rate is certainly on the cards for the future. More positive news came out of Australia 71,500 jobs had been added to the domestic economy in February was announced the best since the year 2000. This pushed the Pound Australian Dollar exchange rate down to 1.4392.
Meanwhile on this morning’s session the Euro took another hit as traders focussed on the problems in Italy which is effectively without leadership following last month’s election result which was not conclusive. The Pound had its best day against the Euro for some time and rose to 1.1500 but rose to 1.530 as the New York Exchange opened. In just seven days the UK budget is delivered and traders will watch with interest just what Chancellor Osborne has to deliver.
8th March 2013
Forex trading relies on a fine balance between calculated risk and greed. There is often a temptation to bolt from trades that are currently losing pips, before giving them enough breathing room to recover. Emotions play a huge role in trading. Those who are able to keep theirs under control are likely to be better traders. That is not to say emotional restraint is not something that cannot be learnt, however.
There are a number of techniques individuals employ to regulate the way their emotions influence their trading. The first one is to simply know the market inside out. Doubt and lack of understanding will always foster nerves and panic, so developing experience levels is a great way to conquer fear.
Finding a relaxed environment to trade in can also help. Make some space, get comfortable and do something else if feelings of stress emerge when trading. Those who are relaxed are more likely to make analytical rather than emotional decisions.
An important way to master emotions is to understand them. Objectively analysing your own emotions can be difficult, but very beneficial. If traders know they react very badly to losses on a trade – and respond by trying to win the money back with risky trades – making an effort to change this ingrained reaction by leaving the room when they make a loss will be beneficial. Taking a step back from the situation, and viewing it in relation to the long-term is also recommended. A small loss will look far less significant if profit has been made overall.
People who are emotional should not despair. Some emotional response can actually be an advantage. It makes it easier to engage with trading and focus fully without becoming bored. It can also breed competitiveness and a drive to keep improving and making more money using services like those described on www.forexcurrency.us.
5th March 2013
After taking a battering over the last few weeks, both the Pound and the Euro have shown some early signs of recovery against the dollar. The Pound from a high of 151.8 at the beginning of February it slipped to just above 1.50 and has crept up slightly on today’s early trading to 1.515. Similarly the Euro is also showing some improvement at the early part of the month £1 would buy you slightly over €1.18 and at early trading in London it is standing at €1.16 a gradual improvement over the last two weeks of €1.15.
The Euro recovery could be as a result of general agreement that the plans for bailing out existing countries seems to be working although there has been concern expressed about the situation in Cyprus and with the on-going uncertainty of the Italian political situation. The British economy also seems to have been boosted on the news that retail sales were up 2.7% on the previous year which is the fastest rate of growth since December 2009, with electrical goods being at the heart of it. Markets will anxiously await the results of the Bank of England policy makers begin their monthly meeting tomorrow.
27th February 2013
Forex trading attracts many different people due to the extensive advantages it offers over other markets. Being able to trade 24 hours a day, five days a week is a huge bonus, and the potential for making money is massive.
Solely focussing on the Forex market can actually limit a trader’s ability to make profits, however. The values of currencies are affected by a wide range of things, and one influential factor is the demand for commodities and raw materials.
The easiest example to use concerns the US dollar and Canadian dollar. When a country is able to supply large quantities of a raw material to another, the supplier is likely to receive influxes of cash. Foreign money will be converted into the supplier’s own currency, providing a boost to the currency’s value.
The knowledge that Canada supplies much of America’s oil means it is safe to draw some parallels between the US’s demand for oil, and the USD/CAD currency pair.
While this is by no means an exact science, it is highly likely that the Canadian dollar will grow in value at times when extensive amounts of oil are being purchased by the US. An influx of money will benefit the Canadian economy, and forex platforms such as that from providers such as Saxo Bank or Citifx Pro Tradestream will indicate that the value of CAD has been pushed up.
This effect can be seen across most commodities, and smart traders will consider how the increases and decreases in demand for raw materials can have an important effect on the relationships between currency pairs.
25th February 2013
It’s no surprise to the City that the downgrading of the UK’s Triple A credit rating has caused a rush of selling of Sterling and it weakened against the dollar as well as the Euro as trading in both Asia and European markets opened. The currency is down by around 7% against both the dollar and the Euro which has seen the European single currency up to a near sixteenth month high.
The markets have reacted to Moody’s downgrading of the UK’s credit rating by one notch to a new AA1 from AAA resulting in the pound losing value to a two-and-a-half year low against the dollar as well as the sixteen month low against the Euro. With the outlook for the UK economy being gloomy, more falls are likely in the near term and there is increasing evidence form Bank of England sources that the Bank does not have a problem with the currency falling, which it hopes will increase exports. Conversely of course this means that imports will cost more and push the rate of inflation higher.
19th February 2013
Monday morning trading saw the Pound Sterling hit a seven month low against the US Dollar although it did make a small recovery later. During the morning the pound fell to $1.5438 which is the lowest point since July 2012 although a recovery to $1.5483 was seen later. One of the Bank of England’s senior policy makers has stated that it needs to weaker further as this would make exports cheaper and hopefully spur growth, but the downside is that commodities such as oil which is paid for in USD would be more expensive.
What is now clear is that betting against Sterling is gaining and it is now second only in volume to the yen, which has sunk against other currencies. However, many city analysts are predicting that there may be a recovery as the unemployment figures will show another monthly fall. This is no consolation to traders as the economic outlook is not good and hedge funds and investment managers are getting rid of sterling. What is apparent is that more speculators are shorting the pound than buying it for the first time in five months.
12th February 2013
There is no golden rule abut which currencies should be used to trade and although there will always be some dealers who will trade in lesser known currencies, it is the seven most common ones which are the most liquid fall into two categories the four “majors” and the three commodity pairs.
The majors are: EUR/USD (euro/dollar), USD/JPY (dollar/Japanese yen), GBP/USD (British pound/dollar) and the USD/CHF (dollar/Swiss franc). The three commodity pairs are: AUD/USD (Australian dollar/dollar), USD/CAD (dollar/Canadian dollar) and the NZD/USD (New Zealand dollar/dollar). These paring along with other pairings such as EUR/JPY, GBP/JPY and EUR/GBP), and they account for a massive 95% of all speculative trading in FX.
Because the U.S. dollar is the world’s reserve currency it is the most actively traded currency, and pairs involving the dollar make up the majority of transactions. Trading can be said to be concentrated in the world’s major financial centres, London, New York and Tokyo and large investors such as multinational corporations, hedge fund and banks can be said to constitute virtually all the trading activity.
So it can be seen that a handful of currencies make up the currency market and although it can be possible to swap virtually any currency for another, the majority of trading occurs with these seven pairs.