Tuesday, October 6, 2009

Forex trading, Interbank Broker, Managed accounts, Swiss FX trading ...

Foreign exchange currency trading is a risky business with much to lose and much to gain. As a professional forex broker and personal trader, I have realized the fast profits this market can reap, while witnessing the dog-eat-dog nature of the beast, in which buyers lose their shirts every minute.

Whether you are a forex trader or just curious about forex currency trading, you owe it to yourself to separate the wheat from the chafe. The Internet is awash in foreign exchange currency trading websites whose sole existences are dependent upon ignorant forex investors. From get-rich-quick forex software schemes to free forex training, forex educational seminars, free forex signals, forex forums, and more, the fraudulence that surrounds the fx trading market is frightening.

Forex trading is very different from the U.S. stock market. The major differences include:

•Forex has no central exchange
•Forex trading can be done around the clock
•Forex has no overseeing regulatory commission, such as the SEC
The forex market is a wild, open arena without rules, laws, or a governing body. No one cares if your money is taken. No one will lose any sleep if you’ve been lied to. There are no repercussions if you’re treated unfairly. Investors trade at their own risk and have no legal recourse to enforce justice.

I know. I’ve been there. The scammers have burned me more than once. In an attempt to further my own knowledge, I fell for the magical software sales pitches and followed the crooked paths to the stolen treasures, only to be let down ad nauseam.

I served my time as a forex broker, which was an eye-opening experience. I heard and saw the manipulation of client profits that was business as usual. It quickly shifted my interest in trading and brokering forex to that of protecting forex traders. I redirected my efforts from studying daily forex signals to researching forex websites. I was determined to devise a resource on which forex investors could rely for honest, fair information exchange

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THE site for forex trading. Online currency trading w/ real time execution. Free forex charts & quotes; forex training

Symbols on American Money

Paper money has circulated in America at least as far back as colonial times. But how did American currency come to look the way it does? What do all the symbols on our money mean?

Symbolism on the One Dollar Bill
Look at the image of perhaps the world's most instantly recognizable paper money — the $1 U.S. Federal Reserve note. What does it mean to you? Despite our familiarity with this particular currency note, many of us have never looked closely at its design and symbolism. As you'll learn as you read on, American currency displays many significant symbols. Once you know what they mean, you may never look at your money in quite the same way.

$1 Federal Reserve notes
Perhaps the most universally renowned symbol to appear on American paper money is front and center on our $1 Federal Reserve notes. George Washington, our nation's first president, is a nationally recognized symbol of unity and trust. But he was not always there.

The $1 legal tender note, issued by the United States during the Civil War, was the first widely circulated U.S. $1 bill (see below). It features Salmon P. Chase, Secretary of the Treasury. Symbolism was very much on the minds of Treasury officials when they were contemplating the design for the Treasury seal (in red on the left side of the note below). They decided that the number of spikes surrounding the Treasury seal should equal the number of states in the Union, which was 34 before the start of the Civil War. A problem arose because seven states had seceded from the Union by February 1861 and four more left in April of that year. However, the patriotic Treasury viewed the situation as temporary and proceeded to include 34 spikes on its seal. The note shown below was issued in 1862.

world's most profitable market/bussiness

The world's most traded market, open 24 hours a day

With average daily turnover of US$3.2 trillion, forex is the most traded market in the world.
A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.

Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.
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Basics of Forex Fundamental Analysis

Basics of Forex Fundamental Analysis
In order to make Forex trading strategy, most Forex traders rely on analysis such as fundamental analysis. Forex Fundamental Analysis is a type of market analysis that uses market trends to determine the future value of a particular currency in the FX market. Fundamental analysis gives us an overview of currency movements based on economic, political, environmental, other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. Forex fundamental analysis strategies require a basic understanding of supply and demand since it provides information how political and economical events influence the currency market. It is about looking at the intrinsic value of an investment. In other words, its application entails looking at the economic conditions that affect the valuation of a nation's currency.
The basis of fundamental analysis is mainly on the political and economic changes as these can frequently affect currency prices. Thus, traders are most likely to gather information from news sources to determine unemployment forecasts, political ideologies, economic policies, inflation, and growth rates. Traders keep an eye on the figures and statements given in speeches by important politicians and economists, as well as announcements related to United States economy and politics. Speeches from prominent people like the Chairman of the Federal Reserve Bank of USA, Secretary of Treasury, President of the Federal Reserve Bank of San Francisco and so on.
It is known that if there is a decrease in supply but the level of demand remains the same, there will be an increase in market prices. On the other hand, if there is an increase in supply, it produces the opposite effect. Thus, fundamental analysts study the supply and demand for the country's currency, products or services, quality management, government policies, past and forecast of performance, future plans and all the economic indicators like Gross Domestic Product (GDP), industrial production, interest rates, international trade, CPI, durable goods orders, PPI, PMI and retail orders. When all data is gathered from these studies, the analysts will construct a model that will check the current and estimated value of a currency against another. Analyst will then decide whether the currency ought to rise or fall after estimating the intrinsic value and comparing it to the current exchange rate.
In summary, Forex fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis include supply and demand, seasonal cycles, weather, and government policy. Thus, the fundamentalist studies that cause of market movement. Fundamental analyst needs to know a particular market intimately. In practice, traders use fundamental analysis in conjunction with technical analysis to determine a Forex trading strategy, fundamental analysis is considered to be the opposite of technical analysis

The Basics of Forex Technical Analysis

The Basics of Forex Technical Analysis
Technical analysis is one of the two methods of analyzing Forex; fundamental analysis is the other. These two methods are very important in the Forex trading by forecasting the variations of the Forex market, prediction of the price and the movement of the market. Although technical analysis and fundamental analysis differ greatly, they both predict a price or movement. In this article, Forex technical analysis will be analyzed in detail.
Technical analysis is a method of forecasting price movements and future market trends through the study of past market action which take into account price of instruments, volume of trading and open interest in the instruments. Unlike fundamental analysis, technical analysis is focused with what has actually happened in the Forex market, rather than what should happen. There are certain technical analysis tools such as the relative strength index (RSI), which is a price-following oscillator that ranges between 0 and 100; the Elliott waves method, which deals in the prediction of the market movement by the study of wave patterns over a period of time; the parabolic SAR methodology, in which the prices are examined and compared to stop and reversal numbers which are an indication of entry points and exit points for any Forex trade; the stochastic oscillator, which shows the over bought or oversold currencies on a scale of 0- 100%; and gaps, which denotes the spaces on the bar chart that none of the trading takes place.
Technical analysts are confident that historical performance of stocks and markets denote future performance. They use charts and other tools to identify patterns that can suggest future activity. They do not attempt to measure a security's intrinsic value. They study the price and volume movements. And they create charts from that data. A technical analyst would rather sit on a bench in a certain mall and watch people going into the store. He decides basing on the activity of people going into each store. But if he is a fundamental analyst, he would rather go to each store and study the products on sale. Later he decides whether to buy or not. In other words, technical analysts disregard the intrinsic value of the products in the store. From the point of view of technical analyst, anyone can gain the profit by posing himself in the trend direction. Consequently, they use different patterns in order to create the price chart that will suit the future market and the price would follow the pattern.
In summary, Forex technical analysis focuses on what actually happens in the market. The charts are based on market action involving price, volume and open interest. It is always focused with the pricing and time factors rather than the factors affecting the market. Thus technical analysts study the effects, not the cause of market movement.

U.S. Non-Farm Employment Change To Dominate Today’s Trading.....forex

U.S. Non-Farm Employment Change To Dominate Today’s Trading.....
Today’s U.S. Non-Farm Employment Change data release is set to dominate the trading between the Dollar and its major currency pairs. A number of other factors are also likely to impact the forex market today, such as the publication of German Industrial Production at 10:00 GMT. The results of today’s data are likely to determine the USD’s trend going into next week’s trading.
12:30 U.S. Non-Farm Employment Change• This indicator reflects the change in the number of employed people during the previous month, excluding the US farming industry.• The indicator typically creates a volatile trading environment, affecting not only the USD crosses but also the value of Crude Oil and Gold.• Disappointing results could send the EUR/USD pair above the 1.4500 resistance level.• Traders may find good opportunities to enter the market following this vital release, and probably the most important announcement of the month.
Tips on Crude Oil
• Oil prices were practically unchanged at yesterdays during close, as the black gold dropped from yesterday’s highs.• A rebounding Dollar put pressure on Oil as investors moved away from riskier assets and into safe-haven currencies.
• As for today, the economic figures coming out of the U.S. and Europe are likely to impact the volatility of oil prices. Special attention to U.S Non Farm Payrolls at 12:30 GMT.

technical analysis in forex

What is Technical Analysis? Technical analysis attempts to forecast future price movements by examining past market data. Most traders use technical analysis to get a "big picture" on an investment's price history. Even fundamental traders will glance at a chart to see if they're buying at a fair price, selling at a cyclical top or entering a choppy, sideways market. Technical analysts make a few key assumptions:
All market fundamentals are reflected in price data. Moods, differing opinions, and other market fundamentals need not be studied.
History repeats itself in regular, fairly predictable patterns. These patterns, generated by price movements, are called signals. A technical analyst's goal is to uncover a current market's signals by examining past market signals.
Prices move in trends. Technical analysts believe price fluctuations are not random and unpredictable. Once an up, down or sideways trend has been established, it usually will continue for a period. Get in and get out - at the right time Traders rely on price charts, volume charts and other mathematical representations of market data (called studies) to find the ideal entry and exit points for a trade. Some studies help identify a trend, while others help determine the strength and sustainability of that trend over time. Technical analysis can add discipline and minimize emotion in your trading plan. It can be hard to screen out fundamental impressions and stick with your entry and exit points as planned. While no system is perfect, technical analysis helps you see your trading plan through more objectively and dispassionately. Price chart types Bar chartsThe most common type of chart showing price action. Each bar represents a period of time - a "period" as short as 1 minute or as long as several years. Over time, bar charts show distinct price patterns. Candlestick chartsInstead of a simple bar, each candlestick shows the high, low, opening and closing price for that period of time it represents. Candlestick patterns provide greater visual detail as they develop. Point & figure chartsPoint & figure patterns resemble bar chart patterns, except Xs and Os are used to mark changes in price direction. Point & figure charts make no use of time scale to associate a certain day with a certain price action. Technical indicator types TrendTrend indicators smooth price data out, so that a persistent up, down or sideways trend can be easily seen. (Examples: moving averages, trend lines) StrengthStrength indicators describe the intensity of market opinion on a certain price by examining the market positions taken by various market participants. Volume or open interest are the basic ingredients of strength indicators. Volatility"Volatility" refers to the magnitude of day-to-day price fluctuations, whatever their directional trend. Changes in volatility tend to anticipate changes in prices. (Example: Bollinger Bands) CycleCycle indicators indicate repeating market patterns from recurrent events such as seasons or elections. Cycle indicators determine the timing of a particular market pattern. (Example: Elliott Wave) Support/resistanceSupport and resistance describes the price levels where markets repeatedly rise or fall and then reverse. This phenomenon is attributed to basic supply and demand. (Example: Trend Lines) MomentumMomentum indicators determine the strength or weakness of a trend as it progresses over time. Momentum is highest when a trend starts and lowest when the trend changes. When price and momentum diverge, it suggests weakness. If price extremes occur with weak momentum, it signals an end of movement in that direction. If momentum is trending strongly and prices are flat, it signals a potential change in price direction. (Example: Stochastic, MACD, RSI)

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