30th July 2010
In the ever growing world of Forex trading there are a vast number of false prophets and liars offering the “secret” to success in Forex trading. As long as there have been investment markets there have been people who claim a deep understanding of the market and it’s “signals”. These Forex signals are historically reoccurring patterns that appear in the Forex market. Sometimes these ebook authors and self proclaimed Forex gurus claim to have developed an automated Forex system that operates on these signals, all offering a guaranteed return for a “reasonable” subscription fee. While it’s clear the best returns in the Forex market would come simply through investing, rather than exposing trade secrets, Forex signals do exist and understanding them is necessary to maximize returns and capitalize on natural market volatility.
The most important consideration regarding forex signals is the nature of single currency signals. A shift of a single currency means little in the short term when all trading is done in currency pairs. With this in mind however, history has shown that at times certain currencies share a common fate (typically a basket of select Asian currencies as well as certain European nations being linked). Stirring in one currency can signal change in another, and this should be taken into consideration when planning a long term investment strategy.
While there are many other Forex signals, it is very difficult to accurately predict what it means for the near future. Many of these beliefs are based on past experience and historical data; however, what is truly most important is the future.
28th July 2010
Today, forex brokers come in a wide array of shapes and sizes and forex currency trading is not limited simply to individuals, but also includes corporations, banks and even governments. Unlike the traditional stock market, the forex is divided into various levels of access, with the highest tier being the inter-bank market, which is where commercial banks and securities dealers do business. Unless you happen to be one of the forex traders associated with the inter-bank market, the bid and ask prices are unavailable, because this information is kept completely secret. The highest level of inter-bank forex currency trades make up roughly 53% of all daily trades.
Below the major banks are the smaller banks, which rank slightly higher than the international corporations. Corporations work in a slightly different fashion given the fact that they have a higher risk and have employees in different countries, so they are actually dealing with various currencies at any given time. Hedge funds fall behind international corporations, with pension funds, insurance companies, institutional investors and mutual funds falling into the latter group, as well as the futures and exchange day traders. The top dogs are the international banks, which can sometimes trade billions of dollars on a given day and while these transactions are generally carried out on behalf of customers, there are inherent risks, as have been seen in recent years, with several of the major German banks falling prey to poor judgment on the part of traders who have received poor forex training.
27th July 2010
The euro neared a two-month high against the dollar on Tuesday as last week’s bank stress test results showed no causes for concern and demand for riskier assets rose. Although some analysts stated that the stress tests weren’t tough enough, the euro carried on up as the dollar hit a 12-week low against a host of currencies after weak US data encouraged investors to move to riskier assets.
The euro rose to $1.3023 before trimming back to $1.2992 by the end of the session as sterling hit a 5-month high against the struggling US dollar. Strong gross domestic product data from the UK on Friday boosted the sterling as it hit $1.5530 against the greenback.
Elsewhere the Australian dollar held firm at 0.9023 against the dollar, while the New Zealand dollar hit a six month high of $0.7335. The dollar did rise against the yen during the session ending at 87.19 a 0.4 percent increase.
23rd July 2010
With the growth of the Internet and online investments and trading, more people than ever have become interested in online Forex trading. While many authors, websites and con artists may claim to have a foolproof system for online Forex trading, very rarely are these claims proven or guaranteed in any way. While there is no one set of golden rules to follow when Forex trading, there are a few tips that any investor, whether novice or expert, should follow closely.
First and foremost, knowledge is power in any industry and foreign exchange is no different. In this case, global news and events, both the good and the bad are where volatility will form and where great returns can be had. While some newcomers will react violently to bad news in a global currency market, by doing so they miss some of the best opportunities to purchase and trade currencies at a low price.
In addition, any successful Forex trader should visualise the market and flow of currencies in terms of pairs, rather than individual currencies. Success and failure in the Forex markets depend on both currencies in a trade having a positive impact on one another from the trader’s perspective.
Finally and most importantly, no one trader can fight the market on their own. When the market is travelling upward, the market is travelling upward and vice versa. There is a wealth of data that analyses past trends, but none of this can predict the future. The best indication of the future is the velocity of a currency in the here and now.
22nd July 2010
The dollar fell to just above a 7-month low against the yen today after the Federal Reserve chairman Ben Bernanke stated that the US economic outlook remained “unusually uncertain”. This sparked a sell-off in riskier assets as investors took solace with the yen.
The dollar fell by 0.6% against the yen ending at 86.56 after also losing 0.5% on Wednesday. The euro also fell against the yen as investors look towards European bank stress test results to be released on Friday.
The euro fell by 0.3% against the yen, hitting a two week low at 110.03, but rose 0.3% against the dollar ending at $1.2773.
20th July 2010
The euro fell from a two-month high against the dollar today as investors were wary about bank stress test results due on Friday. Analysts reckon that the gains seen by the euro over the past few weeks have been overdone and that the stress test results may show a weakness in the euro zone.
The euro fell by 0.3 percent from $1.3029 to $1.2903 as the dollar also rose 0.1 percent against the yen ending the session at 86.83yen, but still hovering near the 7-month low hit last week. The dollar did fall against the Canadian dollar by 0.1 percent, ending trading at C$1.0532 as investors anticipate the Bank of Canada to raise its interest rates by 25 points later today.
19th July 2010
So, you have taken the leap and decided to invest your money with a forex broker. Now you have to determine the day trading times you expect to operate in.
Since the markets operate 24 hours a day during the week, there are opportunities for trading forex at any time. However, the aim is to maximise the opportunities for profit making in your online trading. Therefore, you have to pay specific attention to the best forex trading hours. These are the times when the volume of transactions is highest.
The forex market is such that as one country’s market closes another one opens. The business hours of many countries also overlap. However, over 50% of the transactions in the forex markets worldwide occur within the US and UK markets. If you look at the trading patterns of New York traders, you will see that the majority of their forex currency trading occurs early morning when the European markets are still open. Most of the online forex transactions occur when the major markets, London, New York and Tokyo, overlap.
So, if this is the best time to trade, when do the overlaps occur? Obviously, you must take into account the different time zones throughout the world and the subsequent opening and closing times of the European, American, Japanese, New Zealand and Australian markets. Consequently the overlaps occur between 2am and 4am EST and 8am and 12pm EST. Investors should be prepared to trade during these times to increase their chances of profitable exchanges.
16th July 2010
The euro hit a two-month high against the US dollar today as European money market rates continued to rise strengthening the shared currency. The rise comes after data showed that US consumer sentiment fell to an 11-month low in early July, driving the dollar to a seven-month low against the yen.
The euro was also bolstered by a rise in bank-to-bank lending and smooth government debt auctions in Greece, Spain and Portugal eased investor’s worries about the euro zone’s debt problems.
12th July 2010
The dollar rose against a hat full of currencies on Monday after investors cautiously look towards this week’s euro-zone debt auctions. The debt auction for Greece is due on Tuesday and is set to sell €1.25 billion of treasury bills, with Spain and Portugal also auctioning government debt this week.
The European bank stress test data will also be released on the 23rd of June and has thus far stopped investors from bidding the euro any higher. The euro was down from $1.2640 to $1.2579 against the dollar during the morning session, and the dollar also gained slightly against the yen and sterling.
9th July 2010
With the growth of the internet, dozens of successful and well reviewed Forex brokers have emerged. While each and every firm offers the same types of services, a select few have made a name for themselves and stand out among their peers. These brokers have dedicated themselves to day traders and personal investors. While Forex was once the domain of major banking firms and large multinational corporations, these providers have forged their success through catering to smaller traders, and should be considered first by any new investor.
The best reviewed of the top three brokerage firms is ForexYard. ForexYard is known for accepting low minimum deposits, as well as providing extensive automation tools and scheduling alerts. ForexYard understands that smaller investments are not worth as much of the investor’s personal time, and has developed the tools to cater for this. In addition, they offer the trading of gold, silver, crude oil, and other commodities.
Etoro is another excellent broker for beginners. Etoro offers in depth tutorials and coaching for beginning traders, with less automation than ForexYard. With an even smaller minimum deposit required, Etoro is arguably the best choice for the beginning trader interested in personally managing their portfolio.
Finexo is the third ranked service for beginning traders and personal investors. With one of the lowest minimum deposits and a wide variety of accepted payment options, it is one of the most accessible. Free practice accounts and other amenities make Finexo an excellent beginner’s pick as well.