U.S. Dollar Trading (USD) enjoyed another brief bounce in the Asian session as investor concerns about the GM bankruptcy and weak stocks weigh on sentiment. The main source of gains was against the Yen which came under heavy selling pressure as moody affirmed the US AAA Bond rating. US data was mixed with weekly jobless claims improving to 623 K but New Home Sales remaining weak at 0.352M vs. 0.36M forecast. Crude Oil finished up $1.63 to finish the day at $65.08 a barrel. In US share markets, the Nasdaq was up 20 points or 1.20% and the Dow Jones was up 103 points or 1.25%. Looking ahead, Q1 GDP is expected to be revised to -5.5% vs. -6.1%.
The Euro (EUR) rebounding sharply from the 1.300 level grinding higher in the US session. Talk in Europe about future ECB policy focused on whether the 1.0% rate is the floor. German Unemployment data beat expectations at 1K vs. 66K forecast. Overall the EUR/USD traded with a low of 1.3792 and a high of 1.3984 before closing at 1.3935. Looking ahead, April German Retail Sales are forecast at 0.0% vs. -1% previously. May EU Flash Inflation is forecast at 0.2% vs. 0.6% previously y/y.
The Japanese Yen (JPY) weakened considerably in the Asian session after the affirmation of the US AAA rating from Moody’s. The pair trading above 96 and didn’t stop until sellers above 97 put a cap on the rally. Crosses were also very buoyant on the back of US stocks and are all nearing year highs. A major source of Yen selling was that Japanese Investors were looking for higher yields outside of Japan. Overall the USDJPY traded with a low of 95.48 and a high of 97.25 before closing the day around 96.85 in the New York session. Looking ahead, April Industrial Output is forecast at 3.2% vs. 1.6% previously.
The Sterling (GBP) traded briefly above the 1.6000 level but ran into a wall of offers and pulled back. CBI distributive trades fell to -17 vs. -10 forecast. GBP/JPY was incredibly well supported traded at fresh year highs of 155 Yen. EUR/GBP gave up some of the gains seen yesterday. Overall the GBP/USD traded with a low of 1.5851 and a high of 1.6017 before closing the day at 1.5940 in the New York session. Looking ahead, Nationwide House Prices are forecast to fall -0.9% vs. -0.4% previously.
The Australian Dollar (AUD) dipped in Asia before being caught once again by investors searching for higher yields. The Australian Interest Rate of 3.0% is the highest of the majors. Strong commodities prices are also helping to keep the bullish mood running although fresh gains and a test of 0.8000 may require more than hope to achieve in the short term. Q1 Capex fell -8.9% vs. + 6% previously. Overall the AUD/USD traded with a low of 0.7756 and a high of 0.7871 before closing the US session at 0.7845.
Gold (XAU) rallied above $960 and is threatening to break higher after trading in a range for the past week. Direction will be set by the fate of the USD. Overall trading with a low of USD$944 and high of USD$965 before ending the New York session at USD$961 an ounce.
Forex Tools: The Trendy and Judicious way of Forex Trading
Forex trading system of the world performs trade of about $2 trillion each day. The enormity of the gigantic financial capacity of the forex trade can be truly grasped if you compare this mammoth amount to the $25 billion that New York Stock Exchange trader's trade per day.
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The quintessential qualities of a forex trader are discipline and endeavor. If you are diligent and logical in studying the forex market trends then it wouldn't take you much time to hit the jackpot in Forex trade. However, if you cannot manually manage to analyze all the currency trends yourself then you might take the help of a automatic signal service or a forex trading software which would send you alerts and signals about buying and selling currency after elaborate research and analysis.
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If you use one of the automated Forex tools available in the market then you would be able to evaluate the trends of exchange rates and forex market conditions within a few minutes with the help of the data provided by your FX software. As a result you will be able to close your forex deal in less than an hour. Thus an automated forex tool would ensure that you are making optimum use of your trading time.
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The global forex trading market is only merely remarkable because of the huge volume of monetary transactions that happens through it but it is also a commendable phenomenon due to its geographical dispersion. With the help of automated FX software you can trade in various local as well as international forex markets within different time zones without personally monitoring those various markets day in and day out.
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However, before you decide to buy particular FX software, you need to put in a little effort to search for a forex tool which is easy to use and is ideal for beginners. Glean information about that particular forex tool which you plan to buy and thoroughly read the testimonials for that particular forex trading software before you purchase it. If you really want to test the accuracy of your Forex trading robot then you must try to find forex trading software which has the ability to paper trade too.
.
The quintessential qualities of a forex trader are discipline and endeavor. If you are diligent and logical in studying the forex market trends then it wouldn't take you much time to hit the jackpot in Forex trade. However, if you cannot manually manage to analyze all the currency trends yourself then you might take the help of a automatic signal service or a forex trading software which would send you alerts and signals about buying and selling currency after elaborate research and analysis.
.
If you use one of the automated Forex tools available in the market then you would be able to evaluate the trends of exchange rates and forex market conditions within a few minutes with the help of the data provided by your FX software. As a result you will be able to close your forex deal in less than an hour. Thus an automated forex tool would ensure that you are making optimum use of your trading time.
.
The global forex trading market is only merely remarkable because of the huge volume of monetary transactions that happens through it but it is also a commendable phenomenon due to its geographical dispersion. With the help of automated FX software you can trade in various local as well as international forex markets within different time zones without personally monitoring those various markets day in and day out.
.
However, before you decide to buy particular FX software, you need to put in a little effort to search for a forex tool which is easy to use and is ideal for beginners. Glean information about that particular forex tool which you plan to buy and thoroughly read the testimonials for that particular forex trading software before you purchase it. If you really want to test the accuracy of your Forex trading robot then you must try to find forex trading software which has the ability to paper trade too.
Posted by
Raja Sohail Ahmed
Online Forex Trading - These Two Simple Equations Can Lead You to Huge Gains
Enclosed you will find two equations which most traders don't understand and that's why most traders lose however if you understand them and incorporate them in your Forex trading strategy you could be on the road to huge gains...
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Let's first of all start with the equation which relates to how and why markets really move and it's this:
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Supply and Demand Fundamentals + Human Perception of them = Price
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Simple?
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Yes it is but most traders fail to see its signifcance which is:
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It's not the facts that are important, its how humans perceive them that is; always remember humans are creatures of emotion and don't conform to some scientific theory which means all the commonly perceived views below about trading Forex are wrong:
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You can predict market movements in advance
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- You can trade breaking news and the facts
.
- Markets move to some mathematical theory
.
- You can make money from short term moves i.e. scalping or day trading.
.
Its clear that markets move to probabilities not certainties. So using complex theories or mathematical theories is doomed to failure; its also impossible to work out what millions upon millions of traders will do within a day, as all short term moves are random and breaking news stories and facts cannot be traded, as the facts by themselves not important, its how there perceived that determines what happens next.
.
So how do you trade online Forex markets and win?
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In an odds based market, simple systems works best and you should simply trade the reality of price change on a Forex Chart. Most traders make Forex trading more complicated than it really is. Having a successful trading system though is not enough next, you now need to understand another simple equation to succeed.
.
A Simple Robust Forex Trading System + Disciplined Execution = Forex Profits
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The key to winning long term at Forex is disciplined execution of a system. If you can't execute your trading system signals with discipline, you have no system and don't be deceived, trading with discipline is very hard.
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The reason discipline is so hard is you are going to have losing periods ( all traders have them) and you are going to have to keep going while the market takes your money and wrong foots you and makes you feel a fool. When this is happening, you need to keep your losses small and stay on course until you hit a home run and this is hard.
.
Most traders think they will never lose and believe the rubbish that vendors of "sure fire" systems tell them which is - losing periods don't occur or are very short.
.
When they hit a period of losses, they simply cannot cope with them and throw in the towel. if you understand that you have to lose to win and can trade with discipline, you can enjoy currency trading success.
.
Most traders don't really understand how markets really move and lack the mindset to win. Above we have shown you what it takes to win at online Forex trading and the rest is now up to you - good luck!
.
Let's first of all start with the equation which relates to how and why markets really move and it's this:
.
Supply and Demand Fundamentals + Human Perception of them = Price
.
Simple?
.
Yes it is but most traders fail to see its signifcance which is:
.
It's not the facts that are important, its how humans perceive them that is; always remember humans are creatures of emotion and don't conform to some scientific theory which means all the commonly perceived views below about trading Forex are wrong:
.
You can predict market movements in advance
.
- You can trade breaking news and the facts
.
- Markets move to some mathematical theory
.
- You can make money from short term moves i.e. scalping or day trading.
.
Its clear that markets move to probabilities not certainties. So using complex theories or mathematical theories is doomed to failure; its also impossible to work out what millions upon millions of traders will do within a day, as all short term moves are random and breaking news stories and facts cannot be traded, as the facts by themselves not important, its how there perceived that determines what happens next.
.
So how do you trade online Forex markets and win?
.
In an odds based market, simple systems works best and you should simply trade the reality of price change on a Forex Chart. Most traders make Forex trading more complicated than it really is. Having a successful trading system though is not enough next, you now need to understand another simple equation to succeed.
.
A Simple Robust Forex Trading System + Disciplined Execution = Forex Profits
.
The key to winning long term at Forex is disciplined execution of a system. If you can't execute your trading system signals with discipline, you have no system and don't be deceived, trading with discipline is very hard.
.
The reason discipline is so hard is you are going to have losing periods ( all traders have them) and you are going to have to keep going while the market takes your money and wrong foots you and makes you feel a fool. When this is happening, you need to keep your losses small and stay on course until you hit a home run and this is hard.
.
Most traders think they will never lose and believe the rubbish that vendors of "sure fire" systems tell them which is - losing periods don't occur or are very short.
.
When they hit a period of losses, they simply cannot cope with them and throw in the towel. if you understand that you have to lose to win and can trade with discipline, you can enjoy currency trading success.
.
Most traders don't really understand how markets really move and lack the mindset to win. Above we have shown you what it takes to win at online Forex trading and the rest is now up to you - good luck!
Posted by
Raja Sohail Ahmed
How To Choose a Forex Trading System That Works and Suits You
There are so many different trading systems you could use to trade the forex market, some better suited to certain people than others. For example some people may find it easier to comprehend and take into account fundamental factors as opposed to looking at a screen covered in technical indicators, and vice-versa.
The first logical step in determining what type of trading system would best suit you is actually being aware and understand the widely known methods of analysis used in trading the currency market. Once you are aware of the tools that are available, you can generally tell what type of analysis suits you. For example some of the main technical analysis methods which are popular include:
Pivot points
Chart patterns
Fibonacci retracements
Candlestick patterns
And some fundamental factors which are widely used include analyzing:
Interest rates
Trade balances
Unemployment rates
Gross domestic product (GDP)
The first logical step in determining what type of trading system would best suit you is actually being aware and understand the widely known methods of analysis used in trading the currency market. Once you are aware of the tools that are available, you can generally tell what type of analysis suits you. For example some of the main technical analysis methods which are popular include:
Pivot points
Chart patterns
Fibonacci retracements
Candlestick patterns
And some fundamental factors which are widely used include analyzing:
Interest rates
Trade balances
Unemployment rates
Gross domestic product (GDP)
Posted by
Raja Sohail Ahmed
Forex Trading Risk Management
Recent years we witnessed increasing numbers of Forex investment opportunities in United States. However, it is common that one afraid of being involved in Forex market because of high risk in this trading field. Although every capital market involves certain level of risk, the risk of loss in foreign currency trading market can be extensive. It would be wise to learn about the potential risk (and managing it) if you wish to trade in Forex market.
Choosing the right FX dealer is a way to avoid unnecessary risks. Forex dealers are not all regulated the same way. Although Forex dealers must be regulated by law, firms and individuals can solicit retail accounts for Forex dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your Forex dealers are regulated. If they are not, you may be exposed to additional risks.
Forex market is a non-centralized market. There is no common market place for Forex traders and there is no so-call 'standard' in foreign currency exchange price. Different Forex dealers offer very different deals to their customers. As an individual FX trader, you depends solely on the dealer to make a transaction in your trades, thus picking up the right dealer is extremely crucial in your risk.
Choosing the right FX dealer is a way to avoid unnecessary risks. Forex dealers are not all regulated the same way. Although Forex dealers must be regulated by law, firms and individuals can solicit retail accounts for Forex dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your Forex dealers are regulated. If they are not, you may be exposed to additional risks.
Forex market is a non-centralized market. There is no common market place for Forex traders and there is no so-call 'standard' in foreign currency exchange price. Different Forex dealers offer very different deals to their customers. As an individual FX trader, you depends solely on the dealer to make a transaction in your trades, thus picking up the right dealer is extremely crucial in your risk.
Posted by
Raja Sohail Ahmed
Why Demo FX Account Performance Is Often Better Than Real Account Performance
Over the past several years, the popularity of online currency trading has grown substantially. Each day, online FX brokerage firms attract new investors - each of them lining up with a glint in their eye, lured in by promises of easy money. Most of these companies allow you to sign up for a free demo account which lets you place mock trades using their trading platform to get a feel for the excitement of currency trading. In the casual world of free demo accounts - many young traders find they are able to garner impressive profits without a significant amount of effort. It almost seems too good to be true. But transferring this success from a demo account to a real account is far less common. Why is this? The actual trading platform behaves the exact same way, the market doesn't care whether you're a demo or real trader - so what is different? It's you who has changed. Not your personality, not even your trading style - but the factors that affect you are different.
What is the key factor to trading success?
The search for the "Holy Grail" of trading has been a common theme throughout the history of markets. There are a variety of different techniques. Those whom are inclined towards number crunching and pattern recognition may prefer technical analysis, whereas those more focused on the big picture, logical macro perspective prefer fundamental analysis. Then there are specific methodologies like swing trading, trend following or even more esoteric ideas like the Elliot Wave theory. Which one is best? There are examples of very successful traders using each methodology.
What is the key factor to trading success?
The search for the "Holy Grail" of trading has been a common theme throughout the history of markets. There are a variety of different techniques. Those whom are inclined towards number crunching and pattern recognition may prefer technical analysis, whereas those more focused on the big picture, logical macro perspective prefer fundamental analysis. Then there are specific methodologies like swing trading, trend following or even more esoteric ideas like the Elliot Wave theory. Which one is best? There are examples of very successful traders using each methodology.
Posted by
Raja Sohail Ahmed
