British Pound

With no economic data released over the past few days, the Forex currency British pound continued to lose value on the back of the recovery in the US dollar. Tomorrow may be a bit different however as the tables turn slightly. Aside from the US Beige Book report due much later in the afternoon, there is nothing else on the US economic calendar. The UK on the other hand is scheduled to release the CBI industrial trends survey, which is forecasted to improve from -12 to -10.

 

A stronger report could help the GBP/USD recover somewhat in the early hours of trading. Aside from the CBI report, it should be extremely quiet in the UK as there is no other economic data scheduled for release until next week.

Japanese Yen

Like the British pound, there was no Japanese economic data released overnight which explains today’s quiet Forex trading in the Japanese Yen. This has allowed news from China to continue to yield its influence on the Yen. Although dollar strength has sent USD/JPY above 117, the Yen held steady against the Euro, British pound and Swiss Franc. Another revaluation announcement by China will certainly tip the scales more in the Yen’s favor, but for the time being,

 

Yen crosses remained trapped in a relatively tight trading range. Forex traders Tonight expecting the Japanese Trade Balance for the month of June. The surplus is predicted to balloon from Y382 billion to Y833 billion, but the recent rise in oil prices poses a risk to the lofty forecasts. In addition to that, traders will also be paying attention to comments from Bank of Japan policy member Suda tomorrow for clues on when the Bank of Japan could deliver its second interest rate hike. We still expect another rate hike to be delayed for at least two months on the central bank’s desires to contain expectations.

You can of course, buy a FOREX trading system and many sites and advisers can help you locate the good ones, but nowadays it’s pretty easy to build your own.

 

Perhaps the best method is a breakout method (it’s easy to understand and apply) and is described in our other articles. Simply combine it with some oscillators and your all set.

 

Many trading packages will let you apply your own rules and test them with realistic slippage and commission.

 

A FOREX trading system you have built and understand thoroughly yourself gives you a huge advantage, as you will be able to apply it with confidence and discipline which you will need to stay with a system, through periods of drawdown.

 

You should make your trading systems trade ALL markets with the same rules.

One of the biggest errors traders make is falling for systems that have “unique” rules to trade different markets.

What this basically means is that the vendor cannot get the system to work on the market, so its “curve fitted” i.e. the rules fit the data in hindsight. Beware of such mistakes when creating your own system.

 

Makes sure you have a long term trading system

There is a huge market selling short term and day trading systems, but fact is they don’t work as well as long term trend following trading systems.

 

Verificate EVERYTHING

While past performance is no guarantee of future performance some evidence of the system trading successfully is a must. FOREX is a dish best served checked.

In the Forex market there are several major currencies - one of those is the Euro. What is the Euro? It is a single currency of the European Economic and Monetary Union (EMU) introduced in January 1999. EMU members then were Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.

The use of a single currency across many countries has both advantages and disadvantages in relation to the Forex. One of the biggest benefits of the euro is that the exchange rate is lowered, thus making investment across borders easier. There are risks in the changes in the value of the currency. This means that companies find it risky to import or export outside their currency zone and that profits could be lowered. Using a unified form of currency eliminates this worry. It creates a more risk free import and export area, which already relies heavily on intra-European exports.

The foreign exchange market is the largest and most liquid trading market in the world. Unlike the stock exchange, this market does not have a certain trading place or closing time. Instead, over $2 trillion are traded and sold every day (almost 6 days a week). It never closes and trading takes place twenty-four hours a day during the business week.

There are currently six major currency pairs that are used and traded each day on the Forex. These six pairs account for over 90 percent of the trading activity each and every day. These include the euro and the US dollar (EUR/USD), the Japanese yen and the US dollar (JPY/USD), the US dollar and the Swiss Franc (USD/CHF), the Australian dollar and the US dollar (AUD/USD), the British pound and the US dollar (GBP/USD) and the US dollar and the Canadian dollar (USD/CAD).

Fibonacci forex trading is the basis of lots of trading systems used by a great number of professional brokers around the globe, and many billions of dollars are profitable traded every year based on these trading techniques.

Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it's formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 ...But in the case of currency trading what is more important for the trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.

These ratios are mathematical proportions applied in many places and structures in nature, as well as in many man made creations.

Forex trading can greatly benefit form this mathematical proportions due to the fact that the oscillations observed in charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.

Fibonacci price points, or levels, for any currency pair can be calculated in advance so that the trader will know when to execute a trade or end one if the prediction given by the Fibonacci day trading system he uses fulfills its predictions.

Many people tries to make this analysis overly complicated scaring away many new forex traders that are just beginning to understand how the market works and how to make a profit in it. But this is not how it has to be. I can't say it's a simple concept but it is quite understandable for any trader once he or she has grasped the basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will
help to improve the accuracy of the entry and exit point for every particular trade.

Forex trading is one of the most exciting new toys in the financial field (and not just there). The stakes are variable enough that almost anyone can play, and the potential winnings are high enough to tempt even the most conservative into the swamp. There’s something “sexy” about trading money – an appeal that stock, bonds and mutual funds just don’t have. With trillions of dollars changing hands daily in the forex market, it seems like everyone’s got a fool-proof system to win the money and get rich (and fast). Here are some of the things I heard, that are sure to get you broke in no-time:

There is a failsafe method to make money on every trade - Just like there’s no such thing as a free meal, there’s no such thing as a failsafe method. You WILL lose money on some trades, it’s part of the trading game. Expecting to always win is a guaranteed way to make you hang on to trades long past the point that an experienced trader would have found an out.

You don’t need to know anything about the market to make money in it - Not knowing your playing field is a sure way to hit every bump and hole in it. It’s not enough to read a few articles from your dealer. You need to make a concentrated effort to understand the forces that drive the market so you’ll know the best times to make a move.

You can play a winning game by making frequent forex trades with small profits - If your goal is to make a few hundred dollars a day, you may be ahead of the game, but you’re seriously limiting your profit potential. The only people getting rich on frequent tiny trades are the dealers taking commission on them.

As a forex trader, I’m really not in a place where I can come and say: listen to me, I have things to say which can help you in you trading. But I can try and share some of my thoughts and you can do whatever you want with them.

 

The Forex market is among the most advantageous and profitable in the world, and is worth more than 1.5 trillion$ a day (!!!). With all that money going around, it makes sense to get in on the action and try and get some yourself. There are a few things that you should remember, however, before you invest large sums of money in the enterprise. Here are a few tips to help you on your way.

 

There are not many tips that are more important than that of training and knowledge. While there are many professionals who will be willing to help you on your way, it is important that the final say on the matters will be yours. Hence, when you do invest, know the ins and outs of the market, and take the power into your own hands.

 

Another view on tips of Forex is that you invest wisely and take advantage of the technology available to you in the market, since most trades are made online. All you have to do in order to make a trade is go online, and there you will find all the resources that you will need. While you are investing, it may be a good idea to will you children some money, as well.

 

A lot of people believe that the Forex is based on its unpredictability and the liquidity because it involves with foreign currencies while each one's value is influenced by its own country.

That's why anyone who is even thinking about joining the Forex trading market should think several times before jumping into the water. If you are weak and nervous - this is definitely not for you!

This market is a pretty complex financial arena and only those who learn and know enough (and of course - experienced enough) should step into the challenge. Oh, and money is a condition, as well.

Main priority task in this field is managing the risk factors. Professionals do it on a daily basis, for their clients who rely on them to make their investments wisely.

Some professional brokers have an extremely high level of credibility. The more clients they have, the more their monthly income. Their profit is based on a little slice of every client’s profit, which means that if they have a reputation - they have no need in seeking new clients and the clients come knocking at their door.

Some people like to be their own brokers and manage their own money. This is dangerous - but if you learn well and educate yourself well about a trade - you can call your own shots and deal your money as you see fit.

In forex, you have the information available out there - all you have to do is put you hand and eyes out there, and grab.

One of the major ways (critical - you may say) to differ the winners and losers in the forex trading field is Money management. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is.

Understanding the money management concept and understanding the difference between it and trading decisions is extremely important. Money management represents the amount of money you are going to put on one trade and the risk your going to accept for this trade.

There are different money management strategies. They all aim at preserving your balance from high risk exposure.

First of all, you should understand the following term Core equity
Core equity = Starting balance - Amount in open positions.

If you have a balance of $10,000 and you enter a trade with $1,000 then your core equity is $9,000. If you enter another $1,000 trade,your core equity will be $8,000

It's important to understand what's meant by core equity since your money management will depend on this equity.

Next time I'll explain here one model of money management that has proved high anual return and limited risk.

Hi

I wanna ask you something.

Do YOU really know what forex is?

FOREX - the international currency market, stands for the "Foreign Exchange".

It's easy to start trade on FOREX, it's like a lottery for the first time. When I tried the very first time, I lost $2,000 in 2 hours. And after that I joined some courses teaching trading on Forex. A lot of local courses should be available in your area and generally they teach you basics.

Im not sure if I can make you rich , moreover , Im going to try and teach you some tips , strategies and updated forex new so i cant promise nothing or be responsible for you'r winnings or loses. But i can promise I'll do my best.

 

So join me at the "foreign Exchange world" and come visit me often for tips , news and currencies info.

 

Bye for now