الخميس، 6 سبتمبر 2012

Forex Reviews - Reviews of Forex Products

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There are so many forex products out there with convincing sales pages. It's hard to tell the difference between real worthwhile products and a crafty sales pitch. Here we will be reviewing all sorts of forex products. We will take a look at brokers, software, forex books, videos, and any other forex products we can get our hands on.

  1. Forex Broker Reviews
  2. Forex Software

Forex Broker Reviews

The single most important decision in your plans for trading forex is choosing the right broker. Forex brokers have huge advertising budgets and that allow you to see their sales pitches everywhere you look. In these reviews we will separate the sales pitch from the reality of trading with these brokers

Forex Software

There are so many pages out there selling forex software promising that the software will aid you in getting huge returns in the forex market. Many of these companies promise that their software is the new breakthrough in forex trading. In this section, we will review forex software in detail. We will look at what software is useful and what software is an outright scam.
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Technical Analysis

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echnical analysis has long been used in traditional markets like the stock market. Technical analysis methods rely on price history in order to predict the future. There are numerous methods used in the predicting, but the bottom line is that they always rely on price movements of the past. Technical analysis takes a few different forms and many methods of use.

Introduction to Forex Technical Analysis

Technical analysis has long been used in traditional markets like the stock market. Technical analysis methods rely on price history in order to predict the future. There are numerous methods used in the predicting, but the bottom line is that they always rely on price movements of the past. Technical analysis takes a few different forms and many methods of use.
One method of technical analysis is the use of technical indicators. A technical indicator is a graphical representation of the price action that is usually displayed along the bottom of the screen. One famous example is a technical indicator called MACD. You can see an example of the MACD in use in the first forex trade tutorial.
There are also other methods for using technical analysis. You can use trend lines, or measuresupport and resistance. Both methods rely on looking at the chart and reviewing recent history. Is the price following a pattern? Is it moving in a range? No matter what price is doing, it usually falls into one of those two categories. If the price is moving in a pattern and in one direction, you can use trend lines to analyze where the price should go. If the price seems to be bouncing back and forth in a range, you can use support and resistance lines to make note of where the price should change direction.
Technical analysis can be great, but like other trading methods, it isn’t perfect. Trading decisions are always up to the discretion of the trader making them. There are some great technical tools and indicators that are widely available for use. With so many traders using similar tools, even having slightly different interpretations, technical analysis can become a self fulfilling prophecy. If many traders are seeing the same price area as a buying point, the price could bounce as everyone makes similar moves. The question always remains how lasting those moves will be and that is where personal discretion comes in.
How technical analysis applies can be different for each trader. Every trader has their own interpretation of where they see trends and support. They also have their own ideas on setting up their indicators. These differences are called having your own trading system. You can take 10 different traders and you will probably get 10 different systems that give different signals. These differences are what make a market work.
Technical analysis is very useful in forex trading. It makes up only one portion of what you need to know when trading, but it is a very important thing to learn. Understanding technical analysis will give the charts some meaning when you look at them and help you understand why certain price movements occurred.
The concept of support and resistance is simple. Support can be thought of as a floor for the price while resistance can be thought of as the ceiling for the price. When the price breaks through a resistance, that level becomes the new support level. The reverse is true when the price breaks through a support level.
The best use of support and resistance is during trend trading. If the trend is up, you want to go long at support and take profit at resistance. If the trend is down, you want to go short at resistance and take profit at support.
Support and resistance levels are sometimes not exact price levels. Many times, they will be a small range of prices. Once the price clearly breaks past that range of prices, support or resistance is to be considered broken.
Support and resistance should be used as reference points when looking at a forex chart and trying to make a decision. They can give you a good idea of where to put your stop loss or take profit orders.
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Currency Analysis

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Currency analysis can be a complicated process. There are two primary methods for analyzing currencies and their values. Those methods are fundamental analysis and technical analysis.

hat is fundamental Analysis?

Fundamental analysis is basing the valuation of an asset on important economic reports. Inforex trading, we refer to these reports as economic indicators. Comparing the employment reports from two countries and making a trade based on that information would be an example of using fundamental analysis.

What is an Economic Indicator?

An economic indicator is an important piece of financial data in relation to the asset. In forex trading, the assets are the currencies of different countries. For countries, some important economic indicators are: interest rate announcements, employment numbers, Consumer Price Index, and Trade Balance numbers. While some reports are constantly valuable in fundamental analysis, others will sometimes be very important and other times, they will be much less important. For instance, if a country is having solid growth and experiencing inflation, the Consumer Price Index will be highly watched and considered important by the market.

Trading the News

Trading based on fundamental news can be a tricky matter. You can have a situation where the numbers come out very good for the asset that you want to buy, yet the asset will drop in value. This happens because the participants in the market have certain expectations of what numbers will be in the report. They will speculate on the outcome before the economic report comes out and place their trades early. If the report does not live up to their expectations, it won’t matter whether the news is good or not, the market can seemingly move in the wrong direction as the early speculators dump their positions. Trading the news is very risky and should only be done after several years of forex trading experience.

Summary

Fundamental analysis is an important part of learning to understand the markets. In the short run, the results are not always straight forward, they can even seem backwards. In the long run, currencies will always move along with fundamentals. Learning to use fundamental analysis will help you to understand the reasons behind trends and give you insight into currency movements.

Economic Indicators

Economic indicators are pieces of data from important economic reports. Most of economic indicators are published by government agencies or select private groups. When taking multiple economic indicators into account for a country, traders can get a well rounded sense of a country's financial health.

Major Economic Indicators

  • Employment Reports
  • Reports on Inflation and Money Supply
  • Interest Rate Statements
  • Retail Sales Reports
  • Gross Domestic Product

Using Economic Indicators in Forex Trading

Economic indicators can help you get a sense for the general economic trend of a country. For example, an employment report that shows more jobs being created month after month, can show that an economy is becoming more productive. While a falling retail sales report can be a warning that growth is starting to contract.
Over the longer term, these trends can be the basis for a trade. You can invest in countries that are showing strength and trade against countries that are slowing down. This is the most basic element of fundamental analysis.

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Doing the Foreign Exchange Carry Trade

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Foreign exchange trading is a great alternative way to invest and make money. It has it's caveats, but as long as you treat it with respect and not as a fly by night get rich scheme, it can serve you well.
One of the easiest, or seemingly easiest ways to make money trading foreign exchange is to do a carry trade. A carry trade is a trade that pays interest into your account every day. When you hold trades for more than a day, your broker will add or deduct interest from your account depending on the trades you have open.
In order to have a successful carry trade, you need to pick a high interest currency and trade it against a low interest one. Every day, your broker will deposit a small amount of money into your account depending on how large of a trade you are holding and which pair.
So, you may wonder, what is the big win of this situation. Foreign exchange trading through a broker allows the use of leverage. Leverage allows you to make trades much larger than the actual money that is in your account. The interest that you get paid is based on that inflated trade size, not the amount of capital that you are using to open the trade. If your leverage were 5:1, it would take $200 to open a trade of $1000. You would receive interest on the $1000. Even at a few percent a year, that would be a phenomenal amount of interest paid on the $200.
So, if it's that easy, why aren't there more millionaires exploiting this little loophole. Mainly because there are some side effects to doing carry trading. One big one is that you can't really use the full value of your account to open trades, it would be too dangerous to be that leveraged on a constant basis.
The other thing is that carry trading is a "fair-weather" sort of sport. That is to say, that if things get uncertain in the global markets, hedge funds usually take their money out of these little interest machine trades and there is usually a blood bath. This doesn't really happen in big severity often, but the pairs that pay are usually the first to suffer when things get ugly.
The other thing is that when these pairs move backward, they do with a large amount of force usually, at least in comparison to other currency pairs. This means, you have to be prepared to sit on losses sometimes and also you have to have room to absorb them. Carry trades are rather unpredictable due to their nature, you may get a knee jerk reaction on bad news, or if it's scary enough, you can see thousands of pips of distance made in hours.

How to use carry trading to your advantage

Carry trading still has it's place. It's not just an easy answer to trading altogether because of it's dangers, however, it's a good add on method for trading(see: Methods of Forex Trading). That is, something else you can do along side of your regular forex trading strategy. You could either add some trades in your regular account, or open an additional account and make some long term holders. The main thing is to keep in mind that these trades are risky, so you either need to setup disaster stops, or make your trades small enough that you can handle substantial hurt.
The method that you choose is up to you. Everyone has their own risk tolerance. The main thing is that you keep a plan for what you want to do should things go unexpectedly wrong.

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5 Ways to Fail at Forex Trading

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Normally I'm out to save your bacon. I typically want to keep you from making any mistakes while trading and keep you going. Here I'd like to present a way to fail at forex trading without a doubt.
One: Use Money that you need for day to day living.
If you have some savings that you might be depending on as a safety net, or even as what you plan to use to pay the bills in the near future, use it to fund a forex account, this will insure that you feel some pressure to succeed and feel highly emotionally attached the money.
Two: Sign up with any broker
Who wants to waste time with broker shopping. Just pick one from a random internet search or from a random forum recommendation from a stranger. No need to research, or use a demo account. Open an account with a random broker, no need to worry about what country they are based in or whether they have to follow the regulations of your country.
Three: Don't waste time practicing
Practicing just sharpens your skills, it doesn't let you cut through the chase and just get to the trading. Start trading with real money immediately. You can learn as you go.
Four: Trade Wild West Style
No need to think before pulling the trigger. That takes all of the fun out of trading. Make trades completely on impulse. Trade any lot size you want.
Five: Don't bother worrying about risk
Life is short, why worry about what you're risking. Who cares about using stops, or worrying about how much risk exposure you have. Worrying about these things is such a waste of time. It's better to fly by the seat of your pants and figure it out as you go.
What did you just read?
With any luck you've read the above and realized how ridiculous any of it would be to use as advice. The problem is, the existing information out there, typically trains you to act this way even if they don't promote it directly. As humans we are prone to certain behaviors, and without better information, the above is what we are likely to do without any prior experience in financial trading of any kind.
Forex is great because it's accessible to the average person very easily, but it also means that people come to the table with an untrained mindset. That can be a recipe for disaster for people that want to start trading.
If you want to get started with trading forex, do research, do take time to practice, and don't use money that you need. Honestly, the best way to get started is to take a small amount of money that you could care less where it ends up, put it in a live account and start learning. You will probably lose it, but you will learn exactly what not to do, and you won't get hurt in the process.
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How Much do Currency Traders Make?

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Question: How Much do Currency Traders Make?
Answer:
Currency traders are a bit of a rare breed. What they make can vary widely depending on what type of trader they are and how much experience they have.
In general, how much money you make depends on what currencies you trade, what leverage you use, and how much capital you have.
Here is how your earnings are affected:
First: How much money you have
Forex is fairly risky, whether you are trading high or low risk, the amount of trading you can do will always depend on how much money you have to trade with.
Second: How much leverage you use
In forex trading, brokers offer leverage, which basically means you can put on trades for more than you have. Might be a good thing, or might be a bad thing, but either way, it affects your trading. If you like to take heavy risks you can see heavy account fluctuations in the positive or negative.
Third: What kind of currencies you trade
Some currencies are slow movers. They are good for beginners, or large traders. Obviously, if you are trading fast moving currencies it can make a big difference in what you make.
What you make is up to you, but the currency market is risky, and it's not for everyone. It takes a trader that can take an honest look at themselves and learn from their mistakes.
For more information on forex trading and the latest news and updates, you can follow me onfacebook and twitter
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Introduction to Forex Risk Management

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Forex risk management can make the difference between your survival or sudden death withforex trading. You can have the best trading system in the world and still fail without proper risk management. Risk management is a combination of multiple ideas to control your trading risk. It can be limiting your trade lot size, hedging, trading only during certain hours or days, or knowing when to take losses.

Why is forex risk management important?

Risk management is one of the most key concepts to surviving as a forex trader. It is an easy concept to grasp for traders, but more difficult to actually apply. Brokers in the industry like to talk about the benefits of using leverage and keep the focus off of the drawbacks. This causes traders to come to the trading platform with the mindset that they should be taking large risk and aim for the big bucks. It seems all too easy for those that have done it with a demo account, but once real money and emotions come in, things change. This is where true risk management is important.

Controlling losses

One form of risk management is controlling your losses. Know when to cut your losses on a trade. You can use a hard stop or a mental stop. A hard stop is when you set your stop loss at a certain level as you initiate your trade. A mental stop is when you set a limit to how much pressure or drawdown you will take for the trade. Figuring out where to set your stop loss is a science all to itself, but the main thing is, it has to be in a way that reasonably limits your risk on a trade and makes good sense to you. Once your stop loss is set in your head, or on your trading platform, stick with it. It is easy to fall into the trap of moving your stop loss farther and farther out. If you do this, you are not cutting your losses effectively and it will ruin you in the end.

Using correct lot sizes

Broker’s advertising would have you think that it’s feasible to open an account with $300 and use 200:1 leverage to open mini lot trades of $10,000 dollars and double your money in one trade. Nothing could be further from the truth. There is no magic formula that will be exact when it comes to figuring out your lot size, but in the beginning, smaller is better. Each trader will have their own tolerance level for risk. The best rule of thumb is to be as conservative as you can. Not everyone has $5,000 to open an account with, but it is important to understand the risk of using larger lots with a small account balance. Keeping a smaller lot size will allow you to stay flexible and manage your trades with logic rather than emotions.

Tracking overall exposure

While using reduced lot size is a good thing, it will not help you very much if you open too many lots. It is also important to understand correlations between currency pairs. For example if you go short on EUR/USD and long on USD/CHF, you are exposed two times to the USD and in the same direction. It equates to being long 2 lots of USD. If the USD goes down, you have a double dose of pain. Keeping your overall exposure limited will reduce your risk and keep you in the game for the long haul.

The bottom line

Risk management is all about keeping your risk under control. The more controlled your risk is, the more flexible you can be when you need to be. Forex trading is about opportunity. Traders need to be able to act when those opportunities arise. By limiting your risk, you insure that you will be able to continue to trade when things do not go as planned and you will always be ready. Using proper risk management can be the difference between becoming a forex professional, or being a quick blip on the chart.
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Going Mobile with Forex Trading

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The world has gone mobile on nearly everything. No longer are you tied to a desk if you want to track financial markets or even make trades.
Forex has finally caught up with the rest of the world with usable mobile trading apps for mobile users.
Some of the types of apps that are available are trading apps, quote apps, and even news apps. There are a few things you will want to consider before choosing what apps you want to use for mobile forex trading.
What type of trading do you do?
Are you a risky trader that needs precise entries and tight controls on your trading? While technology has come a long way, scalping from a phone or mobile device, may not be the wisest strategy. Mobile connections are not always stable and you may either enter a trade late, or at the wrong time completely and not be able to get out of it appropriately without losing money.
Wifi vs 4G
Personally I prefer to conduct my mobile trades over a WiFi connection. 4G can be great, but depending on exactly where you're at and what your mobile coverage is, you can have connection gaps and that just doesn't work for forex trading most of the time.
What size is your mobile device?
Mobile device is a somewhat generic term. These days, it could refer to an Amazon Kindle, an iPad, or a mobile phone. It's fairly easy to do "fat fingers" on a small device and touch the wrong icon and initiate a trade in the wrong direction, on the wrong currency, or at the wrong price.
None of this is to say that mobile trading isn't good it is. Traders used to be tied to desks all day, and probably for the most part, they still are. However more and more devices are coming out the support forex trading software and can connect you with your brokers trading platform and allow you to trade in real time. It's just necessary to be cautious.

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Bill Clinton Speech Asks Undecided Voters To Hang On, Give Obama Another Chance

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Bill Clinton Speech
Former President Bill Clinton, in his speech Wednesday night to the DNC, asked undecided voters to give President Barack Obama another chance.
CHARLOTTE, N.C. -– Bill Clinton made the nation a big promise Wednesday night, pledging to those still struggling that their economic fortunes will turn around if they reelect President Barack Obama.
“A lot of Americans are still angry and frustrated about this economy," Clinton told a spellbound audience of delegates at Time Warner Cable Arena. "If you look at the numbers, you know that employment is growing, banks are beginning to lend again, and a lot of housing prices are even beginning to pick up.
“But too many people do not feel it yet,” he said, and then vowed: “If will you renew the president's contract, you will feel it. You will feel it.”
He paused, and then added, “Folks, whether the American people believe what I just told you or not may be the whole election. I just want you to know I believe it. With all my heart I believe it.”
The rest of Clinton’s nearly hour-long speech was a detailed litigation of the main charges that Republicans have made against Obama.
But those few sentences -- an acknowledgment that the nation is still stuck in an economic slump, a promise that a second Obama term will bring better times, and a quick, sly slip into analyst mode -- were the key moments of the speech.
It was an honest, forthright appeal to the voters who will, by all accounts, decide the election -- those who voted for Obama in 2008, but who have found themselves disappointed, wanting to believe in the president they supported four years ago, but not sure they will. Strikingly, Clinton's line about the possibility that Americans may not put their faith in the president was not in his prepared remarks.
Clinton only mentioned Republican Mitt Romney a handful times, but laid out a framework that he said defines this election. “If you want a winner-take-all, you’re-on-your-own society, you should support the Republican ticket,” Clinton said. “But if you want a country of shared opportunities and shared responsibility -– a we're-all-in-this-together society -- you should vote for Barack Obama and Joe Biden.”
Clinton, whose mastery of the stage left him several possible ways to attack Romney, notably did not skewer the Republican's record at Bain Capital, or his other weaknesses, instead focusing his argument in general against the GOP philosophy. (Clinton worked a stint for the consulting and private equity firm Teneo Capital. Co-founder Doug Band is a close Clinton adviser. Clinton listed his income from Teneo on a recent disclosure form as greater than $1,000, though it gives no upper limit.)
Holding fire on Bain left the speech absent a zinger to sum up Romney. Instead, Clinton saved the zinger for tax cuts for the rich, warning that Romney will "double down on trickle-down."
He paraphrased Ronald Reagan: "As another president once said, 'There they go again."
In reframing last week's GOP message, he employed equal parts mockery, wonkery and plainspeak.
In short, he said, the Republicans came to Tampa to deliver a simple message about Obama: "We left him a total mess, but he hasn't cleaned it up fast enough, so fire him and put us back in."
Clinton hit Paul Ryan in the same style. The GOP vice presidential candidate had attacked Obama for cutting $716 billion from Medicare, when his own budget proposal included those same cuts.
"You gotta give him one thing. It takes some brass to attack a guy for doing what you did," Clinton said.
He also slashed at Romney's charge that the president had undermined the work requirement in welfare reform. "Their campaign pollster said, 'We're not going to let our campaign be dictated by fact-checkers,'" Clinton said. "Now, finally I can say that is true. I couldn't have said it better myself –- I just hope you remember that every time you see those ads."
Beyond making the broad case for Obama’s reelection, Clinton's job Wednesday night was to make Democrats forget the terrible afternoon they had just endured.

After party leaders, and eventually the president himself, decided it had been a bad idea to omit from their party platform any mention of God as well as an assertion of Jerusalem as the capital of Israel, they attempted to change it quickly in a late afternoon voice vote on the convention floor.
Embarrassingly, convention chairman Antonio Villaraigosa, the mayor of Los Angeles, had to ask for three voice votes, and each time the nays got louder. He eventually ruled that there was two-thirds support for the changes, despite the clear lack of such a majority.
The snafu led to a series of embarrassing TV interviews for Democratic National Committee Chairman Debbie Wasserman Schultz, who told CNN there was “no discord” during the vote, only to have Anderson Cooper mock her comments as belonging to “an alternate universe.”
Organizers also decided to move the final day of the three-day convention indoors, rather than having Obama accept his party's nomination at the 65,000-seat Bank of America outdoor football stadium. The threat of rain forced the decision, but it was another disappointment for a convention that at one point was envisioned as four-day event in four different cities, and has been beleaguered by fundraising woes and now downsized to a three-day event in the same arena.
For Clinton and for the assembled Democrats, it was a chance to relive his glory days. Clinton showed little interest in letting the moment end. And with the balloon drop canceled, there was some question whether Clinton could ever be urged off the stage.
Obama joined him onstage for a brief moment after Clinton finished speaking, causing the crowd to erupt. Clinton bowed to the current president as Obama walked out, the two men embraced, waved to the crowd, and then walked toward backstage.
But Clinton shook hands with nearly every person in sight on his way out, disappearing into the backstage tunnel once only to reemerge for one last final hug and handshake with one of his many friends. Finally, Obama simply walked through the curtain without him, and Clinton followed a few seconds later.
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الأربعاء، 5 سبتمبر 2012

Mormon Caffeine Policy Clarified, Coke And Pepsi Officially OK For Latter-Day Saints

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Mormon Caffeine
SALT LAKE CITY (RNS) Maybe now, reporters, bloggers, outsiders and even many Mormons will accept that the Utah-based Church of Jesus Christ of Latter-day Saints does not forbid drinking cola.
On Wednesday (Aug. 29), the LDS church posted a statement on its website saying that "the church does not prohibit the use of caffeine" and that the faith's health-code reference to "hot drinks" "does not go beyond (tea and coffee)."
A day later, the website wording was slightly softened, saying only that "the church revelation spelling out health practices ... does not mention the use of caffeine."
The same goes for the church's two-volume handbook, which LDS leaders use to guide their congregations. It says plainly that "the only official interpretation of'hot drinks' ... in the Word of Wisdom is the statement made by early church leaders that the term' hot drinks' means tea and coffee."
That doesn't mean church leaders view caffeinated drinks as healthy. They just don't bar members from, say, pounding a Pepsi, downing a Mountain Dew or sipping a hot chocolate. Even GOP presidential nominee Mitt Romney has been seen drinking an occasional Diet Coke.
This week's clarification on caffeine "is long overdue," said Matthew Jorgensen, a Mormon and longtime Mountain Dew drinker.
Jorgensen, who is doing a two-year research fellowship in Germany, grew up "in a devout Mormon household, in a small, devout Mormon town," where his neighbors and church leaders viewed "drinking a Coca-Cola as so close to drinking coffee that it made your worthiness ... questionable."
That view was magnified when the late LDS church President Gordon B. Hinckley offhandedly told "60 Minutes" that Mormons avoid caffeine. Several earlier LDS leaders, including apostle Bruce R. McConkie, considered imbibing Coke as a violation of the "spirit" of the Word of Wisdom.
It was dictated in 1833 by Mormon founder Joseph Smith and bars consumption of wine, strong drinks (alcohol), tobacco and "hot drinks," which have been defined by church authorities as tea and coffee.
Even so, many outsiders and plenty of insiders get that wrong.
Journalists -- from The New York Times' columnist Maureen Dowd to The Associated Press -- have often stated that Mormons don't drink caffeine. Last week, NBC News' hourlong feature on Mormonism made the same mistake, prompting the church's initial statement on its website.
That blog post was later tweaked, according to church spokesman Scott Trotter, "to clarify its intent, which was to provide context to the NBC piece."
Part of the confusion stems from LDS church-owned Brigham Young University, which neither sells nor serves caffeinated drinks. But BYU spokeswoman Carri Jenkins explains that is "not a university or church decision, but made by dining services, based on what our customers want."
There has not "been a demand for it," Jenkins said Thursday. "We are constantly evaluating what those needs and desires are."
Indeed, fully caffeinated colas are available in the church's Joseph Smith Memorial Building, and in the Lion House Pantry, next to the faith's headquarters in downtown Salt Lake City.
In the end, it's up to individual Latter-day Saints to decide what to drink.
"I can understand why the church is cautious," Jorgensen wrote in an email. "Saying that caffeine is OK might sound like saying that caffeine is healthy, maybe even an endorsement of caffeine. Plus, I think members need opportunities to work through questions of right and wrong for themselves."
Caffeine, he said, "is the perfect, low-risk testing ground for members to make decisions for themselves."
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