When i started trading, i had two months in a row when i made about +20% on my capital every single month. I thought i was already good at trading, but i didn't started to trade real money because i remembered the old rule: you need at least two years to get good at it, and that was a great decision because next months brought me nothing but loses.
Despite i made a lot of (virtual) cash i didn't learned a thing, i was just enjoying my profitable trades and thought to myself how good i am at this. Don't make the same mistake i made, try to learn from all your trades.
Think about:
- why you made a trade
- what market did
- what you should do next time when similar event will occur.
I keep all my positions open for at least few days, so it is not a problem for me to remember them, but if your trading style requires you to make several trades a day then you should start a journal, you may think they are for 13 year old girls but they are not, all highly successful people write and update their journals. Alternatively you may try starting a blog it is free and you can share with other traders your ideas, thoughts and what you are doing. People are generally nice and will be happy to help you with trading.
I also realized that effortless success is worthless success. It may be good in a short run but in the long run, the problem is no one ever learned from easy success. After few good trades people tend to think: hey i know this stuff, and they start to bet big bucks and what they bet on is nothing more then luck.
Some time ago i knew a guy who took 10 000$ loan from bank to trade on forex, when i first met him he had only 4 000$ left. He told me then that he read an article on internet about a man who made millions on stock market and he thought that trading is a fast and effective way of making money. So like i said he borrowed cash and started trading. After just two months he lost 4 000$, so he decided to buy automatic system ("magic pill") which will trade for him. First month of robot trading was great, he recovered some cash and everything was going straight, but the disaster was still to come, suddenly out of nowhere robot started losing, poor guy didn't knew why and what to do with it, because he bought this robot and let it work, without looking into sophisticated algorithm robot was built of, the only thing he knew was: robot is losing. When he finally decided to turn off automatic trader, he was already down additional 2 000$ and of course profits that this robot made were also gone.
When you first look at this story it seems there is no "easy success" embedded, but i assure you there is. It's an article about a guy who made millions from stock market, but often it can be short sentence like "You can make easily 200$ a day by trading forex market".
I am not saying that making big cash on forex is impossible, i am merely saying that road to success is not as easy as it looks like. You have to make a lot of trades loose cash (better to start with virtual money), learn from your trades, analyze them, search for patterns on charts and develop your own style which will feet you, not your need of money.
The most successful forex traders i know are not the ones who made money very fast, but those who lost their deposits twice before they started to make money month by month and yes it took them about two years to get there.
But again don't get me wrong on this, you don't have to lost 20 000$ to start making money. I am just saying you should be prepared for it, trade for at least six months on demo account, then when you will get comfortable with trading demo, start trading real cash with oanda, marketiva or fxsol. This are brokers who will let you trade with small amount of units this also means small deposit, as low as one for oanda and marketiva
Saturday, December 16, 2006
Friday, August 25, 2006
Emotional Rescue
Did you know that 90% of all Forex traders lose money? Now I bet you are questioning my zeal for trading the spot Forex market! If you are just starting out trading this market this not a very good omen. How do you ensure that you become the 10% that succeed, especially if given the fact that so many traders are willing to part with their hard earned cash?
There are many reasons for these abysmal stats: lack of discipline, lack of money management skills, and the. I think the reason for the poor success rate is that 90% of the traders can’t manage their emotions while trading. This is the demon I fight daily. Money management and discipline are the symptoms, but emotions are the root cause!
From day one of trading the currency markets I have heard every guru shouting at the top of their lungs to cut you r loses and let your profits run. Or that anyone can put on a trade, but it is the professional trader that knows when to exit a trade. It seems like a simple concept to let your profits run and take those profits when the market offers them up to us. But why can’t we get this right?
Emotions!!
The curse of all traders, the last and most difficult skill for us to overcome is to remove the emotions from our trading. Period!! Well I got news for you… you can’!! You, my friend, are a human being and thus an emotional being. OK, so we must trade emotional-less, but that is beyond the realm of most traders.
Letting emotions interfere with your trading can manifest in many ways. Let me just give you some examples of my past (and sometimes present transgressions):
Taking a loss and angrily reversing my position only to have the market resume in my original direction! The infamous revenge trading!
Listening to trade signals from members of my trading group instead of listening to my own signals and intuition (afraid I was going to miss the proverbial boat!).
And my personal favorite…
Having the market retrace and return almost to my original entry point, exiting and having the market execute a classic continuation pattern to original target (a target that was selected in advance before the trade was executed)!
Happy Trading!!
Click here to visit my lens!
BTW, did you see Tiger Woods at the press conference after winning the PGA Championship? A reporter asked him if he expects to win every major he plays. Without hesitation Tiger said “yes.” There was an awkward silence while Tiger waited for the next question and the reporter waited for Tiger to expand upon his answer. I loved it and want us all to trade with the kind of confidence and discipline Tiger Woods displays while playing golf!
There are many reasons for these abysmal stats: lack of discipline, lack of money management skills, and the. I think the reason for the poor success rate is that 90% of the traders can’t manage their emotions while trading. This is the demon I fight daily. Money management and discipline are the symptoms, but emotions are the root cause!
From day one of trading the currency markets I have heard every guru shouting at the top of their lungs to cut you r loses and let your profits run. Or that anyone can put on a trade, but it is the professional trader that knows when to exit a trade. It seems like a simple concept to let your profits run and take those profits when the market offers them up to us. But why can’t we get this right?
Emotions!!
The curse of all traders, the last and most difficult skill for us to overcome is to remove the emotions from our trading. Period!! Well I got news for you… you can’!! You, my friend, are a human being and thus an emotional being. OK, so we must trade emotional-less, but that is beyond the realm of most traders.
Letting emotions interfere with your trading can manifest in many ways. Let me just give you some examples of my past (and sometimes present transgressions):
Having the market retrace and return almost to my original entry point, exiting and having the market execute a classic continuation pattern to original target (a target that was selected in advance before the trade was executed)!
What do we do?
I have been following traders that focus solely on trading the news or other fundamental factors. Although this has some merit it won’t do squat for checking your emotions. Technical analysis should be your weapon of choice for keeping your emotions in check. Do you analysis before your trading session. Follow your trading plan (money management and strategy) as though your life depended upon it (your account balance certainly does!!). Visualize your trade execution like Tiger Woods does before every golf shot and above all, trust yourself! I repeat the following mantra before every trading session:
“I am the world’s most disciplined forex trader. I trade my plan and I plan my trade. I trade with confidence and decisiveness. If the reason for me to be in a trade no longer exists I will cut my losses or take profit without hesitation.”
I am an emotional person. It makes me feel alive, however when I trade I want to be a stone-cold, calculating pip capturing fool and leave the emotions for when I shank a drive into the water at the golf course.
Happy Trading!!
Click here to visit my lens!
BTW, did you see Tiger Woods at the press conference after winning the PGA Championship? A reporter asked him if he expects to win every major he plays. Without hesitation Tiger said “yes.” There was an awkward silence while Tiger waited for the next question and the reporter waited for Tiger to expand upon his answer. I loved it and want us all to trade with the kind of confidence and discipline Tiger Woods displays while playing golf!
Wednesday, August 16, 2006
Seriously
If you have been following my blog you know that I am a big proponent of setting up a compounding account as a wealth building strategy for those of you new to the Forex market. This compounding account is not to be touched until you can meet your financial need with only withdrawing 50% of your profit without changing your risk profile. You can have your “Mad Money” account to satisfy some of your more exotic Forex desires, but having a compounding account where you are depositing a consistent number pips is critical to your long term viability as a individual currency trader.
So why is this so critical? Now that you are a trained trader you have probably realized that your Forex Journey has only just begun. You have discovered that there are numerous strategies and approaches to trading this market. You have also noticed that in the end most of the strategies are viable and that the most volatile factor in any trade is the human interaction in the marketplace itself. I am sure, like me, you have discovered you are your own worst enemy! Having a compounding account ensures that you are trading from a centered base. Your pip goal is reserved and very attainable and your entry and exit strategies will reflect this conservative approach. Trading this account will also build discipline and allow you to avoid those huge draw downs. In this account you are not the gambler, but the casino. When was the last time you heard of a casino losing money on their gaming operations? You rely on a strategy to meet your daily pip goal (at least 3:1) and through money management you are keeping the long term odds in your favor like a casino operator. Your actions will then dictate your profitable results!
Do the math! See what your results would be if you started with a $3,000 mini account, risk no more that 5% on any given trade and made just 15 pips per day. How much will your balance be at the end of a year of trading? The results will astound you!!
Happy Trading!!
For more about my trading visit my Lens!!
So why is this so critical? Now that you are a trained trader you have probably realized that your Forex Journey has only just begun. You have discovered that there are numerous strategies and approaches to trading this market. You have also noticed that in the end most of the strategies are viable and that the most volatile factor in any trade is the human interaction in the marketplace itself. I am sure, like me, you have discovered you are your own worst enemy! Having a compounding account ensures that you are trading from a centered base. Your pip goal is reserved and very attainable and your entry and exit strategies will reflect this conservative approach. Trading this account will also build discipline and allow you to avoid those huge draw downs. In this account you are not the gambler, but the casino. When was the last time you heard of a casino losing money on their gaming operations? You rely on a strategy to meet your daily pip goal (at least 3:1) and through money management you are keeping the long term odds in your favor like a casino operator. Your actions will then dictate your profitable results!
Do the math! See what your results would be if you started with a $3,000 mini account, risk no more that 5% on any given trade and made just 15 pips per day. How much will your balance be at the end of a year of trading? The results will astound you!!
Happy Trading!!
For more about my trading visit my Lens!!
Sunday, August 13, 2006
Make Forex Education Your Top Priority
I have been doing a ton of reading this summer. This is not atypical for me. Reading is a way to continue my education and renew my focus on the task at hand. I have recently been exposed to several Forex training evaluation sites, as well attended some of those FREE Forex workshops you see on TV (some of them are still calling me!). It got me thinking
… “What advice can I provide to all those who are eager to learn the currency market with all that information out there without getting burned?”
I have come up with 3 Golden Rules to follow when evaluating currency training opportunities.
1. Know Thy Self – This is probably the most important advice I can provide. There is good training and bad training. Often the worst training has the best marketing plans. First figure out how you best learn information. Are you the type of person that can read a manual on rocket science and build a spaceship or are you a person that needs to be shown things through personal instruction and repetition? Figure out how you receive and process information and align Forex training source that fits your method of learning.
2. Don’t Believe the Hype – There is no golden system and it will take considerable effort to trade currencies successfully. Accepting these realities before embarking on your Forex Journey can save you tons of money and more importantly time spent climbing up the learning curve! If it sounds too good to be true, then it probably is. This should be no surprise! It is buyers beware market out there. Look for a Forex education company that can provide you with some solid aftercare resources.
3. Be Realistic – It is a journey and all good journeys take time to develop and flourish. This can be a remarkable journey, but one where you are apt to lose your account a few times before you surrender to the market and learn to take what the market is offering for profits that day. Listen to recommendations, but make decisions based on your own criteria, because in the Forex market this skill will serve you well!!
When reading internet-based sales letters or infomercial or forums, just remember that everyone has an opinion, but in the end the only one that matters is your!!
Happy Trading!!
For more information visit my Lens!
… “What advice can I provide to all those who are eager to learn the currency market with all that information out there without getting burned?”
I have come up with 3 Golden Rules to follow when evaluating currency training opportunities.
1. Know Thy Self – This is probably the most important advice I can provide. There is good training and bad training. Often the worst training has the best marketing plans. First figure out how you best learn information. Are you the type of person that can read a manual on rocket science and build a spaceship or are you a person that needs to be shown things through personal instruction and repetition? Figure out how you receive and process information and align Forex training source that fits your method of learning.
2. Don’t Believe the Hype – There is no golden system and it will take considerable effort to trade currencies successfully. Accepting these realities before embarking on your Forex Journey can save you tons of money and more importantly time spent climbing up the learning curve! If it sounds too good to be true, then it probably is. This should be no surprise! It is buyers beware market out there. Look for a Forex education company that can provide you with some solid aftercare resources.
3. Be Realistic – It is a journey and all good journeys take time to develop and flourish. This can be a remarkable journey, but one where you are apt to lose your account a few times before you surrender to the market and learn to take what the market is offering for profits that day. Listen to recommendations, but make decisions based on your own criteria, because in the Forex market this skill will serve you well!!
When reading internet-based sales letters or infomercial or forums, just remember that everyone has an opinion, but in the end the only one that matters is your!!
Happy Trading!!
For more information visit my Lens!
Wednesday, July 19, 2006
Run to the Light
Hello Forex Nation!!
If you have not noticed my posts have been a little less frequent over the past several weeks. I take time in the summer to vacation and renew. I also enjoy going to trainings and seminars. Not all of these events tie directly back into trading currencies, but then again I also have other interest and passions.
I was at one such seminar last week in Los Angeles. I was networking after the event with a bunch of other entrepreneurs. We spoke about all kinds of topics (I was the only trader in the group … surrounded by mostly real estate investors!), but the topic that seemed dominate is the on around making the jump from W4 employee to being out on your own.
I know there are Forex traders out there that enjoy trading, but have never considered taking the leap to trading fulltime. But, if you are one of those that want to trade fulltime then I have some tips for you that would make that transition easier and they do not involve trading!
Be in Control
It goes without saying that you must have supreme confidence in your trading acumen to cross over. Always have a check and balance in place, because there is a fine line between supreme confidence and arrogance. The latter will end your stint faster that a bucket of ice on my hot summer patio in Phoenix. Recognize that you still have one last unexplored psychological hurdle to cross. You won’t have that paycheck to fall back on anymore! This brings another level of pressure that did not exist before.
Build a Business Plan
Like any other professional venue you will have to trade as a business. You should structure you trading within a legal business entity and develop a business plan which will guide your approach to trading.
Understand Wealth Building Principals
Before making the leap you should have the wealth building principals done pat! They are:
Make a constant investment to your account and watch it grow. I have written previously that you should have a separate Forex compounding account where you deploy conservative strategies and just let it grow! You can only withdraw funds from this account to feed other wealth builsing entities such as real estate or business investment. This account will be your golden goose!
Give your investments time for growth. Getting rich slow in some of your accounts is quite OK!
Know your yield. Your financial education will determine your yield. Remember an investment in you will always offer the greatest return. Become a life long student!
Follow these principals will lead to tremendous wealth!
Network!!
Build a network of entrepreneurs and traders. Seek out their knowledge and expertise on items such as health insurance. Take every advantage your corporation will allow.
One final point to consider, think about developing another source of revenue outside of your trading account. At this stage you have developed an expertise that people are willing to pay to access. Finding a way to leverage this could provide an additional stream of income, adding financial flexibility.
These are a few points to consider. It is way more than just pure trading, but necessary steps to ensure your success!
Happy Trading!!
If you have not noticed my posts have been a little less frequent over the past several weeks. I take time in the summer to vacation and renew. I also enjoy going to trainings and seminars. Not all of these events tie directly back into trading currencies, but then again I also have other interest and passions.
I was at one such seminar last week in Los Angeles. I was networking after the event with a bunch of other entrepreneurs. We spoke about all kinds of topics (I was the only trader in the group … surrounded by mostly real estate investors!), but the topic that seemed dominate is the on around making the jump from W4 employee to being out on your own.
I know there are Forex traders out there that enjoy trading, but have never considered taking the leap to trading fulltime. But, if you are one of those that want to trade fulltime then I have some tips for you that would make that transition easier and they do not involve trading!
Be in Control
It goes without saying that you must have supreme confidence in your trading acumen to cross over. Always have a check and balance in place, because there is a fine line between supreme confidence and arrogance. The latter will end your stint faster that a bucket of ice on my hot summer patio in Phoenix. Recognize that you still have one last unexplored psychological hurdle to cross. You won’t have that paycheck to fall back on anymore! This brings another level of pressure that did not exist before.
Build a Business Plan
Like any other professional venue you will have to trade as a business. You should structure you trading within a legal business entity and develop a business plan which will guide your approach to trading.
Understand Wealth Building Principals
Before making the leap you should have the wealth building principals done pat! They are:
Make a constant investment to your account and watch it grow. I have written previously that you should have a separate Forex compounding account where you deploy conservative strategies and just let it grow! You can only withdraw funds from this account to feed other wealth builsing entities such as real estate or business investment. This account will be your golden goose!
Give your investments time for growth. Getting rich slow in some of your accounts is quite OK!
Know your yield. Your financial education will determine your yield. Remember an investment in you will always offer the greatest return. Become a life long student!
Follow these principals will lead to tremendous wealth!
Network!!
Build a network of entrepreneurs and traders. Seek out their knowledge and expertise on items such as health insurance. Take every advantage your corporation will allow.
One final point to consider, think about developing another source of revenue outside of your trading account. At this stage you have developed an expertise that people are willing to pay to access. Finding a way to leverage this could provide an additional stream of income, adding financial flexibility.
These are a few points to consider. It is way more than just pure trading, but necessary steps to ensure your success!
Happy Trading!!
Sunday, July 16, 2006
Entries and Exits
Hello Forex Nation,
Well, I just returned from some well earned rest & relaxation! It is always a good time to escape the heat of the desert during the summer months. One of the things I like to do during my down time is to catch up on my reading. One of the key points on the Roadmap to Forex Success (visit FX Trade Central for more details) is continuous education and one of my favorite ways is to read.
I just finished "Entries & Exits: Visits to Sixteen Trading Rooms" by Dr. Alexander Elder. I have added this book to the "must read" category for anyone who trades. It really does not matter what instrument you trade, this is a gotta have to any success library!
The long and short of it is the Dr. Elder visit 16 traders that he has met and mentored throughout his career. The traders explain, in short story format, how and why they trade the way they do. This is followed my Dr. Elder's commentary on their trades. The "gem" of this book is to follow the commentary of each trader. In theirs words you will gain great insight and knowledge and determine they are no different than us, so similar and so unique. These trader have cracked the code and the nuggets provided will help you do the same. It is a very easy read, a kin to 16 short stories. I encourage you to read each story and reflect on what lessons you can bring into your own trading room.
I don't care if you get this book from me (http://www.squidoo.com/forexjourney), your local library or borrow from a friend ... just get and read this book! It is worth the 10 pips price of admission!!
Happy Trading!!
Well, I just returned from some well earned rest & relaxation! It is always a good time to escape the heat of the desert during the summer months. One of the things I like to do during my down time is to catch up on my reading. One of the key points on the Roadmap to Forex Success (visit FX Trade Central for more details) is continuous education and one of my favorite ways is to read.
I just finished "Entries & Exits: Visits to Sixteen Trading Rooms" by Dr. Alexander Elder. I have added this book to the "must read" category for anyone who trades. It really does not matter what instrument you trade, this is a gotta have to any success library!
The long and short of it is the Dr. Elder visit 16 traders that he has met and mentored throughout his career. The traders explain, in short story format, how and why they trade the way they do. This is followed my Dr. Elder's commentary on their trades. The "gem" of this book is to follow the commentary of each trader. In theirs words you will gain great insight and knowledge and determine they are no different than us, so similar and so unique. These trader have cracked the code and the nuggets provided will help you do the same. It is a very easy read, a kin to 16 short stories. I encourage you to read each story and reflect on what lessons you can bring into your own trading room.
I don't care if you get this book from me (http://www.squidoo.com/forexjourney), your local library or borrow from a friend ... just get and read this book! It is worth the 10 pips price of admission!!
Happy Trading!!
Friday, July 7, 2006
Where Do We Go From Here?
Well, US non-farm payroll numbers where released, the market reacted and now all the traders have retired for the weekend. For the record, US non-farm payroll (NFP) rose by 121,000 in June. A figure I was personally watching this morning, the revision from May (which I thought was low) was revised from 75,000 to 92,000. Also, average hourly earnings increased to 0.5% from 0.1%, which to me reflect employers more willing to pay overtime than take on new employees.
No USD friendly numbers!
So, where do we go from here? I am not an expert on Forex fundamentals. I do, however, recognize the importance of fundamental analysis in maintaining and confirming the long-term technical view of the currency pairs I trade. Can the long awaiting sentiment change in the USD finally be upon us? Before you get comfortable in your range-trading strategies here are a few points to consider for your summer trading.
The Federal Reserve – My favorite people (ha, ha, not!). Will interest rates continue to rise or will Bernanke and crew take their collective foots of the economic breaks?
Economic News – Do the NFP numbers signal a slowing economy and can we expect trade balance to narrow and foreign capital flows into the US slow?
Energy - Will the EU spat with Russia over energy policy have a greater impact on the global economy? Will the North Atlantic hurricane season be as devistating as last year? With another rough season forecast, it is sure to spook investors!
World Politics - Will the geopolitical situation in Iran and now North Korea be another reversal factor? Will Afghanistan's reviving insurgency rival the intensity in Iraq?
I don’t know the answers, but as we progress in the month I am taking a keener interest in the fundamentals. I do declare myself a technical trader. I am looking for chart patterns, wave patterns and am still best friends with Mr. Fibonacci. However, I am learning to appreciate fundamentals more and more to the point where I now incorporate them as an additional confirmation in my trade plan.
Technicals are the rudder of the sail boat, but fundamentals deliver the wind to the sails!!
Happy Trading!!
Remember FX Trade Central and Forex Journey Lens are great sources for Forex training, education and information!!
Why Forex? Click Here now and discover the currency market for yourself!
No USD friendly numbers!
So, where do we go from here? I am not an expert on Forex fundamentals. I do, however, recognize the importance of fundamental analysis in maintaining and confirming the long-term technical view of the currency pairs I trade. Can the long awaiting sentiment change in the USD finally be upon us? Before you get comfortable in your range-trading strategies here are a few points to consider for your summer trading.
The Federal Reserve – My favorite people (ha, ha, not!). Will interest rates continue to rise or will Bernanke and crew take their collective foots of the economic breaks?
Economic News – Do the NFP numbers signal a slowing economy and can we expect trade balance to narrow and foreign capital flows into the US slow?
Energy - Will the EU spat with Russia over energy policy have a greater impact on the global economy? Will the North Atlantic hurricane season be as devistating as last year? With another rough season forecast, it is sure to spook investors!
World Politics - Will the geopolitical situation in Iran and now North Korea be another reversal factor? Will Afghanistan's reviving insurgency rival the intensity in Iraq?
I don’t know the answers, but as we progress in the month I am taking a keener interest in the fundamentals. I do declare myself a technical trader. I am looking for chart patterns, wave patterns and am still best friends with Mr. Fibonacci. However, I am learning to appreciate fundamentals more and more to the point where I now incorporate them as an additional confirmation in my trade plan.
Technicals are the rudder of the sail boat, but fundamentals deliver the wind to the sails!!
Happy Trading!!
Remember FX Trade Central and Forex Journey Lens are great sources for Forex training, education and information!!
Why Forex? Click Here now and discover the currency market for yourself!
Thursday, July 6, 2006
July USD Outlook
Here is what I see as a possible July USD Outlook
Possible end of tightening cycle
No Federal Reserve meeting – No interest rate
Q2 GDP will likely drop below 3% vice 5.3% in Q1
Wave 5 extension beginning EUR/USD and GBP/USD
July could be a rough month for the USD!
Tuesday, July 4, 2006
Forex and the Job
So you live in the western part of North America (I trade from Phoenix, Arizona) and you have discovered the power of trading the Forex market. Your passion runs so deep that almost instantly you are convinced that you want to do this full time. You get your requisite training and are ready to trade your live account. Just one problem … the job is keeps getting in the way!
Those of us who live in the Western part of the United States and Canada have a unique challenge when it comes to currency trading. Our time zones are not conducive to trading the European session and our window is small to trade the New York session before we must pack it up and hit the road. The Asian session is perfect timing, but not very active in the currencies rookies tend to focus on first.
I absolutely love trading the European session, but I am wasted the entire day from lack of sleep. I am very selective when I trade with London, because you ALWAYS want to be focused and on top of your game when trading!
Here are some simple recommendations to help you through your transition period.
1. Do Your Homework! This is valid with any trader, but for those of us who have a small window to trade peak hours need to be prepared to take advantage of any pips the market is offering up. This is really not a disadvantage. This can build and nurture a most profitable habit.
2. Go to Bed Earlier! It is very important to get your rest and trading in the Pacific Time zone requires an early wake up call to trade the London-New York overlap session. I awake 4:00 am pacific time to make sure I am awake and prepared when New York opens.
3. Develop a Solid Exercise Plan! I find when I am in decent condition I can get an additional 2 hours more of focused time out of my day. Those two hours I dedicate to making myself a better trader.
4. Find Your Trading Style! Synergize your trading style with your trading session. If you are like me and primarily trade from the 15-minute, 1-hour and 4-hour charts the European and New York sessions are my bread and butter. I use the Asian session to do my homework. If you are a position trader a whole new set of synergies come into play.
5. Be confident in your analysis. When I first started seriously trading currencies and juggling the job I found I had done my homework, planned an entry only to miss it because it occurred while I was in the middle of my mid-morning meeting. I learned very quickly to get comfortable with entry orders.
As you can see from these simple examples that becoming successful in currency trading requires two key elements…
Persistence will allow you to climb the learning curve and learn from your mistakes!
Change of mindset to not allow life to dictate the level of your currency trading success!
Happy Trading!!
Visit Forex Journey Lens for other tips and tricks.
Those of us who live in the Western part of the United States and Canada have a unique challenge when it comes to currency trading. Our time zones are not conducive to trading the European session and our window is small to trade the New York session before we must pack it up and hit the road. The Asian session is perfect timing, but not very active in the currencies rookies tend to focus on first.
I absolutely love trading the European session, but I am wasted the entire day from lack of sleep. I am very selective when I trade with London, because you ALWAYS want to be focused and on top of your game when trading!
Here are some simple recommendations to help you through your transition period.
1. Do Your Homework! This is valid with any trader, but for those of us who have a small window to trade peak hours need to be prepared to take advantage of any pips the market is offering up. This is really not a disadvantage. This can build and nurture a most profitable habit.
2. Go to Bed Earlier! It is very important to get your rest and trading in the Pacific Time zone requires an early wake up call to trade the London-New York overlap session. I awake 4:00 am pacific time to make sure I am awake and prepared when New York opens.
3. Develop a Solid Exercise Plan! I find when I am in decent condition I can get an additional 2 hours more of focused time out of my day. Those two hours I dedicate to making myself a better trader.
4. Find Your Trading Style! Synergize your trading style with your trading session. If you are like me and primarily trade from the 15-minute, 1-hour and 4-hour charts the European and New York sessions are my bread and butter. I use the Asian session to do my homework. If you are a position trader a whole new set of synergies come into play.
5. Be confident in your analysis. When I first started seriously trading currencies and juggling the job I found I had done my homework, planned an entry only to miss it because it occurred while I was in the middle of my mid-morning meeting. I learned very quickly to get comfortable with entry orders.
As you can see from these simple examples that becoming successful in currency trading requires two key elements…
Persistence will allow you to climb the learning curve and learn from your mistakes!
Change of mindset to not allow life to dictate the level of your currency trading success!
Happy Trading!!
Visit Forex Journey Lens for other tips and tricks.
Sunday, July 2, 2006
Conquer the Crash
A Book Review
“Conquer the Crash”
By Robert R. Prechter Jr.
If you have been trading the Forex market you will have no doubtlessly come across R.N. Elliott’s Wave theory. In this book Robert Prechter, President of Elliott Wave International, details a compelling economic theory using this wave analysis. Prechter walks us through a technical, social and fundamental analysis of past economic events in a manner for which prior wave analysis is not necessary. He is leading us toward a prediction of future economic events which will leave you staggering! His stunning conclusion of an upcoming economic downturn not seen since the Great Depression will leave you thinking not only of future planning, but also of current events. Warning aside, there are a myriad of strategies outlined in this book that, once deployed, can not only allow you to survive this economic apocalypse, but flourish despite the odds.
The blog is dedicated to Forex education. During major economic downturns your financial education will be the difference between prosperity and struggle. This is must reading for traders and investors alike!!
Click Here to obtain your copy of “Conquer the Crash” by Robert Prechter.
Click Here to preview the lastest Elliott Wave International Market Perspective.
Happy Trading!!
“Conquer the Crash”
By Robert R. Prechter Jr.
If you have been trading the Forex market you will have no doubtlessly come across R.N. Elliott’s Wave theory. In this book Robert Prechter, President of Elliott Wave International, details a compelling economic theory using this wave analysis. Prechter walks us through a technical, social and fundamental analysis of past economic events in a manner for which prior wave analysis is not necessary. He is leading us toward a prediction of future economic events which will leave you staggering! His stunning conclusion of an upcoming economic downturn not seen since the Great Depression will leave you thinking not only of future planning, but also of current events. Warning aside, there are a myriad of strategies outlined in this book that, once deployed, can not only allow you to survive this economic apocalypse, but flourish despite the odds.
The blog is dedicated to Forex education. During major economic downturns your financial education will be the difference between prosperity and struggle. This is must reading for traders and investors alike!!
Click Here to obtain your copy of “Conquer the Crash” by Robert Prechter.
Click Here to preview the lastest Elliott Wave International Market Perspective.
Happy Trading!!
Friday, June 30, 2006
FX Education & Training
I have been receiving an ever increasing amount of emails for those of you interested in having dialog about Forex trading strategies. Of course you can email me at info@fxtradecentral.com. I have several sites with a different emphasis within the Forex Education and Training umbrella.
FX Trade Central
This is my mother ship Forex Education and Training website. The focus on this site is to provide an approach or methodology for learning to trade currencies. I also provide a running Forex course evaluation for a comprehensive approach to learning opportunities. Click Here now to view this site!
FXT
This is my premiere training site. This is where I learned to trade currencies and am an active participant in the Online Trading Rooms where the real training takes place during active market hours. Click Here now to view this site!
Forex Journey – Blog
Frankly this is where I can talk about anything I want. I try to relay my personal experience is learning the Forex market, as well as tips and tricks along my journey. I will always be a student of currency trading. Don’t click here because you are already there!
Lens
If you missed my posting on what the heck is a Lens just search back in the May/June archives. I have two lenses which are designed to provide more of a focus on my trading (http://www.squidoo.com/forexjourney) and why Forex trading is the next great frontier (http://www.squidoo.com/successinfx). The Forex Journey Lens is the only site I post excerpts from my trading plan and current trade set ups I am evaluating.
Your risk management strategy resides between your ears. Don’t listen to any sales pitch claiming one system is easier than others. It really lies in a simple formula. Dedication and perseverance! It is not as easy as the sales people make out, but it is also not as hard as the naysayer claim either! You education is truly a lifetime financial skill! No matter where you get your forex education, just get it! It is your most important investment.
Keep the emails coming! Your feedback matters!
Happy Trading!!
FX Trade Central
This is my mother ship Forex Education and Training website. The focus on this site is to provide an approach or methodology for learning to trade currencies. I also provide a running Forex course evaluation for a comprehensive approach to learning opportunities. Click Here now to view this site!
FXT
This is my premiere training site. This is where I learned to trade currencies and am an active participant in the Online Trading Rooms where the real training takes place during active market hours. Click Here now to view this site!
Forex Journey – Blog
Frankly this is where I can talk about anything I want. I try to relay my personal experience is learning the Forex market, as well as tips and tricks along my journey. I will always be a student of currency trading. Don’t click here because you are already there!
Lens
If you missed my posting on what the heck is a Lens just search back in the May/June archives. I have two lenses which are designed to provide more of a focus on my trading (http://www.squidoo.com/forexjourney) and why Forex trading is the next great frontier (http://www.squidoo.com/successinfx). The Forex Journey Lens is the only site I post excerpts from my trading plan and current trade set ups I am evaluating.
Your risk management strategy resides between your ears. Don’t listen to any sales pitch claiming one system is easier than others. It really lies in a simple formula. Dedication and perseverance! It is not as easy as the sales people make out, but it is also not as hard as the naysayer claim either! You education is truly a lifetime financial skill! No matter where you get your forex education, just get it! It is your most important investment.
Keep the emails coming! Your feedback matters!
Happy Trading!!
Wednesday, June 28, 2006
The Impact of News Events, Part 2
As we mentioned in Part 1, fundamental news tends to adjust the technicals and these adjustments translates into potential trading opportunities on the Forex market. Give these facts it is important we use both fundamental and technical analysis in our approach to trading currencies.
Fundamentals tend to be very inconsistent. This is why most traders, including myself, focus on the technicals. Fundamentals focus on the structural issues of currencies, such as flows of money and tend to be cyclical. Certain fundamental data carry different weight for different currencies. You will hear terms such as balance of trade, capital flows, employment and industrial production.
What does it all mean?
I have no clue. I am not an economist and I will never ever pretend to be (even with my fascination of the Central Bank role in the currency markets). In the end price action matters! How the currency price reacts to the news is the key. For example, EUR/USD pair is trending down and unexpected economic number that is dollar negative is released. The pair is likely to spike up and over a period of time resumes its previous downward technical direction.
It is all about using technical analysis to assess the likely direction of price and supporting it all with fundamental data. It is entirely possible to have two technical indicators and use fundamental data as a 3rd confirmation.
So how do we incorporate this into our currency trading plan?
Know the news and its anticipated impact on the currency pair. In my previous blog posting I provided some links to the two sites I use to monitor economic releases. If you reviewed the site you would have picked up on the fact that some news events are given a greater weight than others. I trade the London-New York overlap session, so the 8:30 am releases (and Fed news) catches my attention, but I will also get up a little earlier if significant news out of the ECB or Bank of England is expected. I tend not to have any short term position on or if I do I may close attention to my stop-loss. I let the market set the trend and enter the market when the “whip-saw” action has settle down and the market sediment for the news and trend has been established.
Be patient and be discipline! Always understand the big picture!
Happy Trading!!
For more information on how I trade visit http://www.squidoo.com/forexjourney. Feel free to email this lens to your friends!!
Fundamentals tend to be very inconsistent. This is why most traders, including myself, focus on the technicals. Fundamentals focus on the structural issues of currencies, such as flows of money and tend to be cyclical. Certain fundamental data carry different weight for different currencies. You will hear terms such as balance of trade, capital flows, employment and industrial production.
What does it all mean?
I have no clue. I am not an economist and I will never ever pretend to be (even with my fascination of the Central Bank role in the currency markets). In the end price action matters! How the currency price reacts to the news is the key. For example, EUR/USD pair is trending down and unexpected economic number that is dollar negative is released. The pair is likely to spike up and over a period of time resumes its previous downward technical direction.
It is all about using technical analysis to assess the likely direction of price and supporting it all with fundamental data. It is entirely possible to have two technical indicators and use fundamental data as a 3rd confirmation.
So how do we incorporate this into our currency trading plan?
Know the news and its anticipated impact on the currency pair. In my previous blog posting I provided some links to the two sites I use to monitor economic releases. If you reviewed the site you would have picked up on the fact that some news events are given a greater weight than others. I trade the London-New York overlap session, so the 8:30 am releases (and Fed news) catches my attention, but I will also get up a little earlier if significant news out of the ECB or Bank of England is expected. I tend not to have any short term position on or if I do I may close attention to my stop-loss. I let the market set the trend and enter the market when the “whip-saw” action has settle down and the market sediment for the news and trend has been established.
Be patient and be discipline! Always understand the big picture!
Happy Trading!!
For more information on how I trade visit http://www.squidoo.com/forexjourney. Feel free to email this lens to your friends!!
Monday, June 26, 2006
The Impact of News Events, Part 1
News is the Fuel.
The Forex market is driven largely by world financial market and news, both of the domestic and international variety. There are a host of players on the international FX stage including businesses, hedge funds, governments, banks, consumers and of course us traders!
By now I am sure you are wondering why a self-proclaimed technical trader is blogging about the news? After all isn’t this just more fundamental mumbo-jumbo?
Well you know what they say …
NEWS IS THE FUEL BUT THE TECHNICALS ARE IN CONTROL!!
Fundamental news has a tendency to adjust the technical when the news is unexpected. Before beginning my trading session I am sure to review the up coming economic releases to view any event that has potential to provide rocket fuel to the market. Some news will move the currency pair (Non-Farm Payroll) and some are may not. To get a list of those pre-planned economic releases that have the potential for moving the Forex market look into the following links.
http://www.dailyfx.com/calendar/briefing/
http://www.forexfactory.com/index.php?page=calendar
Here are some recommended sites to get a more comprehensive fundamental view of the market.
Getting to know the impact of news events on your chosen currency will allow you to anticipate movements and plan your trades for more profitable entries.
http://www.morganstanley.com/GEFdata/digests/digests.html
This site will give you much more the Forex, but you can search the archives for the FX related article. This site has been very informative for my long term planning.
In Part 2 we will discuss how to incorporate news events into your trading plan.
Happy Trading!!
The Forex market is driven largely by world financial market and news, both of the domestic and international variety. There are a host of players on the international FX stage including businesses, hedge funds, governments, banks, consumers and of course us traders!
By now I am sure you are wondering why a self-proclaimed technical trader is blogging about the news? After all isn’t this just more fundamental mumbo-jumbo?
Well you know what they say …
NEWS IS THE FUEL BUT THE TECHNICALS ARE IN CONTROL!!
Fundamental news has a tendency to adjust the technical when the news is unexpected. Before beginning my trading session I am sure to review the up coming economic releases to view any event that has potential to provide rocket fuel to the market. Some news will move the currency pair (Non-Farm Payroll) and some are may not. To get a list of those pre-planned economic releases that have the potential for moving the Forex market look into the following links.
http://www.dailyfx.com/calendar/briefing/
http://www.forexfactory.com/index.php?page=calendar
Here are some recommended sites to get a more comprehensive fundamental view of the market.
Getting to know the impact of news events on your chosen currency will allow you to anticipate movements and plan your trades for more profitable entries.
http://www.morganstanley.com/GEFdata/digests/digests.html
This site will give you much more the Forex, but you can search the archives for the FX related article. This site has been very informative for my long term planning.
In Part 2 we will discuss how to incorporate news events into your trading plan.
Happy Trading!!
Sunday, June 25, 2006
Find Your Forex Niche
It is important to find the Forex strategy right for you! When I began learning to trade the Forex market I was introduced to intraday trading using 5-minute charts. I gained an understanding of the nuances of market movements and the importance of technicals tools, such as Simple/Exponential Moving Averages and Fibonacci. These proved to be valuable lessons coming from the options world.
OK, truth be told … I hated it!!
This style of trading just did not suit my personality. It was a necessary step, but as soon as I felt comfortable and confident in the 5-minute trading style I dialed my chart right out to the hourly charts and beyond. I know lots of people that like the fast pace, simplicity of this style and are some of the most successful traders I know.
I am just not one of them!
My personality fits a longer term view and I just did not thrive in the faster paced decision making required in the 1-minute and 5-minute styles. My focus is on swing trading on the 240-minute chart and intraday trading on the hour and 15 minute charts. It is important while you are learning to trade FX you maintain an open mind to all Forex strategies, but in the end your personal trading style must recognized and exploited for long term success!
Happy Trading!!
For more information visit my site at http://www.fxtradecentral.com or my lens at http://www.squidoo.com/forexjourney!!!
OK, truth be told … I hated it!!
This style of trading just did not suit my personality. It was a necessary step, but as soon as I felt comfortable and confident in the 5-minute trading style I dialed my chart right out to the hourly charts and beyond. I know lots of people that like the fast pace, simplicity of this style and are some of the most successful traders I know.
I am just not one of them!
My personality fits a longer term view and I just did not thrive in the faster paced decision making required in the 1-minute and 5-minute styles. My focus is on swing trading on the 240-minute chart and intraday trading on the hour and 15 minute charts. It is important while you are learning to trade FX you maintain an open mind to all Forex strategies, but in the end your personal trading style must recognized and exploited for long term success!
Happy Trading!!
For more information visit my site at http://www.fxtradecentral.com or my lens at http://www.squidoo.com/forexjourney!!!
Wednesday, June 21, 2006
Chart Patterns
Now that we are in the summer doldrums, chart patterns take on a whole new significance!
For a review bookmark this link!!
http://www.stockcharts.com/education/index.html
Happy Trading!!
For a review bookmark this link!!
http://www.stockcharts.com/education/index.html
Happy Trading!!
Tuesday, June 20, 2006
It is Better in Groups
Banks and Hedge Fund Managers do it! And you should too!!
Too often I hear about the lonely trader who sits at their computer while the Forex market forces devour their capital. These are the same people who say currency trading is too risky and it doesn't work.
So you have taken the classes and read the books. Most humans don't learn that way. We must also be shown how to do it. In our case we must be shown (and repeatedly) how to trade, when to trade and when not to trade. Repetition is the key to learning.
And so is trading in a group!
If you do not have a group of traders then form your own group. Just look on Skype to see the myriad of Forex traders out there. Ask questions in forums (know you source though). You interaction with other enhance your Forex trading skill and acumen.
This just may be what the doctor ordered to have that breakout that puts you well on your way to Forex success!!
Happy Trading!!
Click Here to visit a forex training and education site that offers cources and mentoring beyond the tex book and into the live currency market!!
Too often I hear about the lonely trader who sits at their computer while the Forex market forces devour their capital. These are the same people who say currency trading is too risky and it doesn't work.
So you have taken the classes and read the books. Most humans don't learn that way. We must also be shown how to do it. In our case we must be shown (and repeatedly) how to trade, when to trade and when not to trade. Repetition is the key to learning.
And so is trading in a group!
If you do not have a group of traders then form your own group. Just look on Skype to see the myriad of Forex traders out there. Ask questions in forums (know you source though). You interaction with other enhance your Forex trading skill and acumen.
This just may be what the doctor ordered to have that breakout that puts you well on your way to Forex success!!
Happy Trading!!
Click Here to visit a forex training and education site that offers cources and mentoring beyond the tex book and into the live currency market!!
Do not buy unknown Forex Trading Strategy!
Lately i was many times asked about, forex trading strategies for sale, they always offer big returns easy trading without stress and the can be applied by everyone.
So i decided to make my own investigation, and i must admit i had big issue with those trading strategies, they all show proofs of earning, have got "happy" customers statments even with their happy faces, but on the other hand i never heard that someone made money trading bought strategy. I actually couldn't find anyone who was or is using one of this strategies, so i asked asuthors.
Results where terryfinig it happens those who sell this strategies don't even know what they are talking about, for example what is "forex trading hours" some of sellers are not even aware of that they can trade forex 24 hours a day!!! Not to mention they do not even know what leverage, long or short position is.
There also happens sellers who know what forex is, proboably traded for some years but there are no proofs they made money, or that they strategies are succesfull.
Finally there are few gems i can recommend, i contacted their authors and belive buying this books will be a good investment.
If you have any experiences with any of this strategies please comment my post or write to me, it will be interesting for us all.
So i decided to make my own investigation, and i must admit i had big issue with those trading strategies, they all show proofs of earning, have got "happy" customers statments even with their happy faces, but on the other hand i never heard that someone made money trading bought strategy. I actually couldn't find anyone who was or is using one of this strategies, so i asked asuthors.
Results where terryfinig it happens those who sell this strategies don't even know what they are talking about, for example what is "forex trading hours" some of sellers are not even aware of that they can trade forex 24 hours a day!!! Not to mention they do not even know what leverage, long or short position is.
There also happens sellers who know what forex is, proboably traded for some years but there are no proofs they made money, or that they strategies are succesfull.
Finally there are few gems i can recommend, i contacted their authors and belive buying this books will be a good investment.
If you have any experiences with any of this strategies please comment my post or write to me, it will be interesting for us all.
Monday, June 19, 2006
Foreign banks increase exposure in gilts & forex
With the ongoing volatility in domestic interest rates as well as in the Sensex movement, foreign banks, whose numbers may be small, have suddenly emerged as the leading players in both the segments - gilts and forex - in the money market. In the first week of the current month, foreign banks have bought g-secs worth nearly Rs 1,000 crore on a daily basis. This accounts for nearly 40% of the total daily g-secs deals , which is much higher than the earlier period.
According to Clearing Corporation of India Ltd (CCIL), the share of foreign banks in total g-secs' purchases was only 28% in May. In April, their share was still lower at 24%.
The Reserve Bank of India (RBI) permits foreign banks to classify government securities purchased under the reverse repo auction as part of the statutory liquidity requirements (SLR) exposure of the bank. However, given the 50 basis points rise in reverse repo rates in the last six months, purchase of securities through reverse repo auction has proved to be a costlier route. As a result, foreign banks prefer outright purchase of g-sec through the secondary market.
Further, given the prevailing high volatility in the domestic equity markets, many foreign banks have pared their exposure in equities and increased that in the government securities.
Financial Technologies (India) recommends 260% dividend
Financial Technologies India has recommended a final dividend of 260% for the year. During the year the company has paid interim dividend of 40% and accordingly, total dividend for the year aggregates to 300%.
The decision was taken by the board of directors of the company at its meeting held on June 17, 2006.
Financial Technologies (India) (FTIL), headquartered in India and listed on the Bombay Stock Exchange, is India`s leading vertical specialist enterprise delivering mission-critical, straight through processing solutions comprising domain expertise, technology licensing and development & transaction outsourcing services.
Read more here.
The decision was taken by the board of directors of the company at its meeting held on June 17, 2006.
Financial Technologies (India) (FTIL), headquartered in India and listed on the Bombay Stock Exchange, is India`s leading vertical specialist enterprise delivering mission-critical, straight through processing solutions comprising domain expertise, technology licensing and development & transaction outsourcing services.
Read more here.
Japanese Forex Trading Preview
The dollar starts the week softer against the euro, sterling and Swiss franc, but firmer versus the yen. Traders are in store for a slower week in the way of US economic reports, with the following slated for release; May housing starts, building permits, weekly jobless claims, May leading indicators and May durable goods orders. Returning to the fore is uncertainty from Asia, with North Korea completing fuelling of missiles with a range to reach the US.
Read more here.
Read more here.
FX Trading.com offers 2 wide spreads to RefcoFX Forex clients
Refco FX, one of the largest firms in the Forex industry, has recently announced it’s filing for bankruptcy protection. Refco FX, a subsidiary of Refco Group, has finally fallen to its parent company’s financial troubles and has been forced to suspend all trading.
Refco Group experienced a massive devaluation earlier this year as a result of its CEO, Phillip R. Bennet, being accused of a scheme to falsely inflate the company’s stock price through improper accounting practices. Refco FX was initially unaffected by the scandal, but has recently announced its inability to proceed.
Read more here.
Refco Group experienced a massive devaluation earlier this year as a result of its CEO, Phillip R. Bennet, being accused of a scheme to falsely inflate the company’s stock price through improper accounting practices. Refco FX was initially unaffected by the scandal, but has recently announced its inability to proceed.
Read more here.
Thursday, June 15, 2006
CSI Forex
If you trade the Forex market you will inevitably encounter the proverbial down day (or worse yet a series of down days). By bad day I mean when you put on a trade and from 'pip' one just goes against you. Tell me, after this happened have you:
Chased the trade and ended up losing more?
Revenge traded against the trend to recoup your losses and ended up losing more?
Moved your predetermined stop and ended up losing more?
Flipped your position and ended up losing more?
Have you noticed a theme??
Well, when I have a series of losing trades I go into CSI mode!
I actually conduct a crime scene investigation on my trading. First if I suffer a big lost I close my trade station immediately. Experience has taught me that I am susceptible to revenge trading. After a break (could be several minutes or several hours or several days) I take a look at my trade journal and look for clues as to why I suffered a draw down. Keeping a detailed journal allows me to reconstruct my trades to isolate potential errors.
If I am lucky I found that I had sound analysis and execution, but just hit some losers. More likely is that I got away from my style of trading or over-complicated my technique and entered into a bad trade.
Go back to the basics! It works every time!!
Happy Trading!!
Chased the trade and ended up losing more?
Revenge traded against the trend to recoup your losses and ended up losing more?
Moved your predetermined stop and ended up losing more?
Flipped your position and ended up losing more?
Have you noticed a theme??
Well, when I have a series of losing trades I go into CSI mode!
I actually conduct a crime scene investigation on my trading. First if I suffer a big lost I close my trade station immediately. Experience has taught me that I am susceptible to revenge trading. After a break (could be several minutes or several hours or several days) I take a look at my trade journal and look for clues as to why I suffered a draw down. Keeping a detailed journal allows me to reconstruct my trades to isolate potential errors.
If I am lucky I found that I had sound analysis and execution, but just hit some losers. More likely is that I got away from my style of trading or over-complicated my technique and entered into a bad trade.
Go back to the basics! It works every time!!
Happy Trading!!
FOREX-Dollar hits 6-week high on core US inflation data
NEW YORK, June 13 (Reuters) - The dollar on Tuesday hit six-week highs against the euro and the yen after a higher-than-expected reading of core U.S. inflation heightened expectations for more Federal Reserve interest rate increases.
Interest rate futures markets pushed up the chances of a quarter percentage point rate increase in the federal funds rate at the end of June, and some analysts are now suggesting the Fed may not stop there.
"Topping out in the fed funds rate is not quite clear and no one is concluding that it is one more move and we're done," Alex Beuzelin, foreign exchange market analyst with Ruesch International in Washington, said. "That's supporting the dollar."
Join the Online Trading Revolution!
Forex is the largest trading exchange in the world. Foreign exchange is a frenetic, fast-paced trading platform, which routinely trades over $1.5 trillion in a single day.
/24-7PressRelease/ - ODESSA, ON, CANADA, June 15, 2006 -- Forex is the largest trading exchange in the world. Foreign exchange is a frenetic, fast-paced trading platform, which routinely trades over $1.5 trillion in a single day. With its unique style of instantaneous transactions, 24 hour trading and 0% commission on exchanges, Forex has become the largest and most lucrative trading platform in the world today.
In an industry built around perpetual motion, Forex has embraced the developments on the Internet to allow online brokerages and individual traders to make a market impact. With trading tools, analysis and all the plausible data at users' fingertips, trading on the Forex market has never been simpler.
But in a market overflowing with potential but still rife with danger, new and experienced traders alike need a resource to hone skills and understand exactly what is happening in the industry today. ForexFusion.com provides all of the solutions that will get any person on the right road for trading success.
With advice, jargon busting and basic foreign exchange strategies, ForexFusion.com is a one-stop shop for any aspiring trader. In an industry that never
stays still, ForexFusion.com will keep visitors up-to date on all the latest advances, as well as providing all the information a person could ever require to become a successful trader on the worlds largest exchange.
Read more here.
In an industry built around perpetual motion, Forex has embraced the developments on the Internet to allow online brokerages and individual traders to make a market impact. With trading tools, analysis and all the plausible data at users' fingertips, trading on the Forex market has never been simpler.
But in a market overflowing with potential but still rife with danger, new and experienced traders alike need a resource to hone skills and understand exactly what is happening in the industry today. ForexFusion.com provides all of the solutions that will get any person on the right road for trading success.
With advice, jargon busting and basic foreign exchange strategies, ForexFusion.com is a one-stop shop for any aspiring trader. In an industry that never
stays still, ForexFusion.com will keep visitors up-to date on all the latest advances, as well as providing all the information a person could ever require to become a successful trader on the worlds largest exchange.
Read more here.
Forex Fundamentals
US Dollar. The US dollar’s rally over the past month has become extremely overextended and the market is finally beginning to feel it.
After yesterday’s sharp movements in the
commodity and stock markets, today’s theme has been retracements. Oil and gold
prices are both slightly higher, along with the Dow. In the FX markets, the buck
has sold off even though today’s US data is more dollar positive than negative,
purely because buyers are starting to become scarce ahead of critical resistance
levels. Inflation is the Fed’s primary focus, which made today’s report on
consumer prices even more important. Headline prices rose 0.4 percent while core
prices rose 0.3 percent, which was slightly stronger than expected. Although it may
seem like only a mild up tick from the 0.2 percent forecast, the three month
annualized rate of core inflation, the number that Bernanke is keeping an eye on,
hit 3.8 percent, the highest level in over a decade. This strong pace of growth has
sent rate hike expectations to 100 percent, with the market already beginning to
price in a tiny chance for another hike in August. However, a closer look at the
report shows that a large part of the rise was due to the higher cost of owners
equivalent rent. The pickup in mortgage rates has made renting a far more
attractive option than owning. Bond yields has risen as traders price in higher
rates, but at the same time the yield curve has inverted further, indicating that
the market believes the higher interest rates will have a big impact on growth.
Even though the rise in owners equivalent rent is an immediate inflationary concern,
it is also a longer term headache. The higher mortgage rates rise, the more risks
it poses for the housing market. The Fed’s Beige Book is already showing signs of
this impact as many of the districts report slower growth and higher inflation. Yet
the Fed has chosen to focus exclusively on the inflation component at the risk of
growth. This is a dangerous game to play, but with such solidarity behind their
decision to unanimously tell the markets that another quarter point rise will be
coming in June, it is a message that we cannot ignore. Therefore until the next
meeting, even if we do see the dollar give back more of its gains, it will probably
not come close to 1.30 in the EUR/USD as the fear of how far the Fed will go keeps
dollar bears cautious of taking on new positioning. Meanwhile tomorrow we are
expecting the TIC data, also known as the report on net foreign purchases of US
securities. Talk of reserve diversification over the past few months could bring
about a weak number, which would extend the dollar’s losses.
Read more here.
After yesterday’s sharp movements in the
commodity and stock markets, today’s theme has been retracements. Oil and gold
prices are both slightly higher, along with the Dow. In the FX markets, the buck
has sold off even though today’s US data is more dollar positive than negative,
purely because buyers are starting to become scarce ahead of critical resistance
levels. Inflation is the Fed’s primary focus, which made today’s report on
consumer prices even more important. Headline prices rose 0.4 percent while core
prices rose 0.3 percent, which was slightly stronger than expected. Although it may
seem like only a mild up tick from the 0.2 percent forecast, the three month
annualized rate of core inflation, the number that Bernanke is keeping an eye on,
hit 3.8 percent, the highest level in over a decade. This strong pace of growth has
sent rate hike expectations to 100 percent, with the market already beginning to
price in a tiny chance for another hike in August. However, a closer look at the
report shows that a large part of the rise was due to the higher cost of owners
equivalent rent. The pickup in mortgage rates has made renting a far more
attractive option than owning. Bond yields has risen as traders price in higher
rates, but at the same time the yield curve has inverted further, indicating that
the market believes the higher interest rates will have a big impact on growth.
Even though the rise in owners equivalent rent is an immediate inflationary concern,
it is also a longer term headache. The higher mortgage rates rise, the more risks
it poses for the housing market. The Fed’s Beige Book is already showing signs of
this impact as many of the districts report slower growth and higher inflation. Yet
the Fed has chosen to focus exclusively on the inflation component at the risk of
growth. This is a dangerous game to play, but with such solidarity behind their
decision to unanimously tell the markets that another quarter point rise will be
coming in June, it is a message that we cannot ignore. Therefore until the next
meeting, even if we do see the dollar give back more of its gains, it will probably
not come close to 1.30 in the EUR/USD as the fear of how far the Fed will go keeps
dollar bears cautious of taking on new positioning. Meanwhile tomorrow we are
expecting the TIC data, also known as the report on net foreign purchases of US
securities. Talk of reserve diversification over the past few months could bring
about a weak number, which would extend the dollar’s losses.
Read more here.
Tuesday, June 13, 2006
Time for a Breakthrough
Have you every wonder why do Forex traders fail? Even better have you ever wondered what holds must of us back from reaching our true potential as a Forex trader?
Want a hint?
Just look in the mirror!!
The key to success in trading the Forex market is to just plain get out of our own way!! Here are the common mistakes that leads most traders to failure or better yet, hold the true successful trader in all of us back from achieving our true potential. See if any of these areas you can improve upon.
Lack of Forex Education - training is the true key to success. That is why I have dedicated my website, FX Trade Central, this blog and my Lens to this enitre topic. The money spent on proper currency education will be recoup and paid back 1000X!! Click Here for a list of Forex training and education courses on FXTC or Click Here for Forex training opportunity Lens.
Emotions - great if you are watching the NBA Playoffs or World Cup, but it has no home in trading. Again, this is another topic I am passionate about and quite honestly one I struggle with each and every trading day.
Not sticking to a trading plan - or not having a plan at all!! This goes a long way in predetermining your trading decsions and help removing the emotions from your trades.
Expectations - Having realistic expectations at all times. My "Ah-Ha" moment was when I focused on the pips and let my trading plan worry about the lots. Compounding works!
Risk Management - I still hear from people time to time who continue to trade without a stop loss. One word ... STOP!! Just for the fact that you are risking your account on your ISP my account started growing when I managed my risk, took trades that fit my reward-risk profile, and used my stop-loss as a mechanism of last resort to exit a losing position and not a first option.
Bottom line, focus on these areas as much as the mechanics of the trade and you will get over the hump and start benefiting from the most powerful financial market in the world!!
Happy Trading!!
Want a hint?
Just look in the mirror!!
The key to success in trading the Forex market is to just plain get out of our own way!! Here are the common mistakes that leads most traders to failure or better yet, hold the true successful trader in all of us back from achieving our true potential. See if any of these areas you can improve upon.
Lack of Forex Education - training is the true key to success. That is why I have dedicated my website, FX Trade Central, this blog and my Lens to this enitre topic. The money spent on proper currency education will be recoup and paid back 1000X!! Click Here for a list of Forex training and education courses on FXTC or Click Here for Forex training opportunity Lens.
Emotions - great if you are watching the NBA Playoffs or World Cup, but it has no home in trading. Again, this is another topic I am passionate about and quite honestly one I struggle with each and every trading day.
Not sticking to a trading plan - or not having a plan at all!! This goes a long way in predetermining your trading decsions and help removing the emotions from your trades.
Expectations - Having realistic expectations at all times. My "Ah-Ha" moment was when I focused on the pips and let my trading plan worry about the lots. Compounding works!
Risk Management - I still hear from people time to time who continue to trade without a stop loss. One word ... STOP!! Just for the fact that you are risking your account on your ISP my account started growing when I managed my risk, took trades that fit my reward-risk profile, and used my stop-loss as a mechanism of last resort to exit a losing position and not a first option.
Bottom line, focus on these areas as much as the mechanics of the trade and you will get over the hump and start benefiting from the most powerful financial market in the world!!
Happy Trading!!
Forex Fundamentals
When trading forex long term it is good to keep an eye on forex fundamentals, so here is a brief overview of what is going to happen with major currencies.
S Dollar. The foreign exchange market has been extremely quiet today with most currency pairs aside from the Canadian dollar calmly consolidating....
The next few days will be very
busy as traders prepare themselves for a long list of key economic data scheduled
for release from all of the major countries around the world as well as a number of
Fed speeches. Bernanke’s credibility has really come to question over the past few
days and will be tested even more so this week. Financial editors of the press have
had a blast touting his keen ability to confuse the markets which comes in clear
contrast to the transparency, clarity and simplicity that he initially promised when
he became Federal Reserve Chairman. He is slated to speak this evening and then
once again in the morning and in all likelihood, he will stick to the script on Bank
Supervision because he knows that if he fails to affirm his newly hawkish stance,
all credibility would probably be lost. Given earlier signs of slower growth, this
week’s data, starting with tomorrow’s retail sales report could potentially surprise
to the downside. If retail sales do come out extremely weak, the market will wonder
whether Bernanke is playing with fire, risking a global slowdown to combat
inflation. Of the other Fed officials that spoke today, they either refrained from
mentioning monetary policy or simply repeated their concerns with inflation.
Whether inflation is really prevalent will also be proved this week as we first see
the producer price index tomorrow morning and then the consumer price index on
Wednesday. These will be watched even more closely than they usually are because if
neither confirms the strong inflation concerns of the Fed, Bernanke’s credibility
will be in question once again, which would be negative for the US dollar. The only
piece of economic data that was released today was the US’ monthly budget statement,
which reported a larger deficit of -$42.8 billion compared to a -$35.4 billion
forecast. Structural problems have been plaguing the US economy for years and based
upon the latest figures, it is far from being resolved. Meanwhile the hurricane
season begins with warnings that the season’s first Tropical Storm Alberto could be
named a hurricane. With oil prices still hovering above $70 a barrel, if any
hurricanes this summer hit the US oil and gas heartland along the Gulf Coast, we
could easily see another record high in crude, which could pose another risk to the
sustainability of consumer spending. If the US consumer goes, so does the US
dollar. However as long as the US consumer holds on, the Fed will be able to as
well, which would validate and exacerbate the greenback’s recent climb * so keep an
eye on weather patterns as well as retail sales.
Read more here.
S Dollar. The foreign exchange market has been extremely quiet today with most currency pairs aside from the Canadian dollar calmly consolidating....
The next few days will be very
busy as traders prepare themselves for a long list of key economic data scheduled
for release from all of the major countries around the world as well as a number of
Fed speeches. Bernanke’s credibility has really come to question over the past few
days and will be tested even more so this week. Financial editors of the press have
had a blast touting his keen ability to confuse the markets which comes in clear
contrast to the transparency, clarity and simplicity that he initially promised when
he became Federal Reserve Chairman. He is slated to speak this evening and then
once again in the morning and in all likelihood, he will stick to the script on Bank
Supervision because he knows that if he fails to affirm his newly hawkish stance,
all credibility would probably be lost. Given earlier signs of slower growth, this
week’s data, starting with tomorrow’s retail sales report could potentially surprise
to the downside. If retail sales do come out extremely weak, the market will wonder
whether Bernanke is playing with fire, risking a global slowdown to combat
inflation. Of the other Fed officials that spoke today, they either refrained from
mentioning monetary policy or simply repeated their concerns with inflation.
Whether inflation is really prevalent will also be proved this week as we first see
the producer price index tomorrow morning and then the consumer price index on
Wednesday. These will be watched even more closely than they usually are because if
neither confirms the strong inflation concerns of the Fed, Bernanke’s credibility
will be in question once again, which would be negative for the US dollar. The only
piece of economic data that was released today was the US’ monthly budget statement,
which reported a larger deficit of -$42.8 billion compared to a -$35.4 billion
forecast. Structural problems have been plaguing the US economy for years and based
upon the latest figures, it is far from being resolved. Meanwhile the hurricane
season begins with warnings that the season’s first Tropical Storm Alberto could be
named a hurricane. With oil prices still hovering above $70 a barrel, if any
hurricanes this summer hit the US oil and gas heartland along the Gulf Coast, we
could easily see another record high in crude, which could pose another risk to the
sustainability of consumer spending. If the US consumer goes, so does the US
dollar. However as long as the US consumer holds on, the Fed will be able to as
well, which would validate and exacerbate the greenback’s recent climb * so keep an
eye on weather patterns as well as retail sales.
Read more here.
Online Education Helps FOREX Currency Trade
FOREXBusinessSchool.com currency trade education has conducted research aimed at identifying the training needs of FOREX traders... who want to increase their chances of success.
Staff of FOREXBusinessSchool.com, determined that, especially due to the "investor beware" climate of the FOREX markets, there is a need for an independent source to provide currency trader training.
The FOREXBusinessSchool.com program is being developed by college educators who are experienced investment and finance professionals. This educator advantage does not exist with currency trader training programs that are affiliated with dealers and brokerage houses.
"We will undoubtedly make FOREXBusinessSchool.com the very best online training source for people interested in, or involved with, online currency trading" said Leonard Cox, program developer for the online FOREX school.
Many educators and investment experts are previewing drafts of the FOREXBusinessSchool.com curriculum. The preliminary ratings of FOREX Business School are excellent. You can subscribe to the mailing list on the FOREXBusinessSchool.com contact page to receive updates.
Read more here.
New Online Business Opportunity Helps Entrepreneurs Succeed Where They Once Failed
Alexandria, VA, June 13, 2006 --(PR.COM)-- The number of new online businesses started every year is growing at an astounding rate. Enticed by promises of a three-hour workweek and a million dollar salary, people are convinced that all they have to do is build their own website and they’ll be rich. But less than 1% ever actually generate any income from their venture.
Now there is an opportunity that lives up to its promises. Backed by 12 years of experience, the Prosperity Automated System (PAS) is a new type of network marketing that is allowing entrepreneurs to succeed where they once failed.
"The complete automation of PAS, from the presentation of the opportunity to the professional follow through by the team leader staff among other things, truly remove many of the variables potentially responsible for past failure rates” says Amber Barth, a PAS business owner. “With a bit of effort, I believe anyone, regardless of their background can have success with this business."
As its name suggests, the Prosperity Automated System is an automated system for earning money online. With PAS, business owners focus on getting prospects to visit their website and from there a trained PAS representative does the follow up and closes the sale. Unlike other network marketing businesses, members do not have to spend time cold calling, answering customer questions or following up with prospects.
Read more here.
Now there is an opportunity that lives up to its promises. Backed by 12 years of experience, the Prosperity Automated System (PAS) is a new type of network marketing that is allowing entrepreneurs to succeed where they once failed.
"The complete automation of PAS, from the presentation of the opportunity to the professional follow through by the team leader staff among other things, truly remove many of the variables potentially responsible for past failure rates” says Amber Barth, a PAS business owner. “With a bit of effort, I believe anyone, regardless of their background can have success with this business."
As its name suggests, the Prosperity Automated System is an automated system for earning money online. With PAS, business owners focus on getting prospects to visit their website and from there a trained PAS representative does the follow up and closes the sale. Unlike other network marketing businesses, members do not have to spend time cold calling, answering customer questions or following up with prospects.
Read more here.
Gold, oil extend drop, dollar up on rate talk
Gold, metals and oil extended losses on June 14 as investors dumped higher-risk assets, Japanese stocks regained lost ground and the US dollar set a seven-week high on persistent talk of higher US interest rates.
Japan's Nikkei stock average (N225) dropped almost 1% at the start but clawed back the losses and registered a 1.05% gain, thanks to advances by retailers such as Aeon Co which are dependent on the domestic economy.
The insipid recovery in Tokyo was reflected in other Asian stock markets with South Korea's benchmark KOSPI rising 0.9% and Taiwan's key index adding 0.85%.
Tokyo shares had their biggest one-day percentage fall in two years on June 13. The losses in Asia spilled over into Wall Street where the Dow Jones industrial average dropped 0.8% to 10,706.14 yesterday. After more than a month of steady declines, it has now lost all of its gains for the year.
The tech-heavy Nasdaq composite index fell for the eighth straight day, dropping 0.9% to 2,072.47.
Investors have dumped riskier assets and moved their money to dollars since May on worries that the US Federal Reserve would be forced to raise rates for the 17th straight time at a meeting on June 28-29 to stymie inflation despite signs that the world's biggest economy and Asia's biggest export market was slowing.
The rate expectations helped push the dollar to a seven-week high against the euro and yen in New York and kept them near those levels in early Asian trading on June 14.
Spot gold plunged to US$561 (RM2,070) an ounce to notch up a 22% drop in the past month. June 13's drop in gold prices was its sharpest decline in 15 years.
"The market continues to see movements linked to risk aversion," said Kota Kimura, forex manager at Shinkin Central Bank. "Unless some fresh and strong incentives come out, money is likely to keep flowing back to dollar assets."
Seven Big Things Professors Won�t Teach You (But You Should Know)
Are you studying finance? If so, then terms like present and future value, efficient market theory, capital budgeting, arbitrage pricing and a whole slew of other exciting phrases are becoming part of your vocabulary. And if you�re thinking about studying finance in college or graduate school, be prepared to be lectured on those topics and more during your coursework. This is all well and good. If you plan on a future in finance, you�ll need a grounding in financial theory. Here�s the problem, though. Your instructors won�t teach you the good stuff, the stuff that can really help you excel in your job or make money in the markets. That all falls under the umbrella of �practical knowledge� which is not what college curricula are generally designed to pass along to young, eager minds looking to learn.
Have no fear, though! This report will help fill in the gaps. While it�s impossible to cover everything you could possibly want to learn in this brief space, here you will be given seven specific areas of focus. It is my intent to provide you with something of a guide to help you go beyond your text books and take your financial education to another level. From there you�ll be able truly accelerate your growth at a rapid pace, allowing you the opportunity to have more success.
Read more here.
Have no fear, though! This report will help fill in the gaps. While it�s impossible to cover everything you could possibly want to learn in this brief space, here you will be given seven specific areas of focus. It is my intent to provide you with something of a guide to help you go beyond your text books and take your financial education to another level. From there you�ll be able truly accelerate your growth at a rapid pace, allowing you the opportunity to have more success.
Read more here.
Sunday, June 11, 2006
Greed Can Force The Remote Forex Trader Into An Early Retirement
I recently found an interesting article about currency trading and greed. Athor makes few good points so i think it will be good to read and reread it.
In the markets, greed is often a good thing. It is what drives companies to perform well, and what drives much of the markets movement. It’s the effort that the remote forex trader will expend trying to make a profit that creates the market movement that enables you, as a remote forex trader, to succeed.
The desire to make money is what motivates a remote forex trader to become successful. But the desire to succeed is different from the desire to get every bit of possible profit from a trade. This kind of reckless greed makes a remote forex trader hold on to their position long after the downside has started to outweigh the upside, until risk outweighs potential reward.
Here's an example: a remote forex trader sees that a particular stock is starting on a run; it's reported good news and is already up 20% for the day. The volume is still building; it's stable at the current price; the market is rallying strongly; and it looks like it will go higher. The remote forex trader buys 1,000 shares at $6 a share. By 12:15 P.M., the stock has raced up to $10 - a gain of over 66% for the day, and a profit of $4,000 on 1,000 shares.
This remote forex trader knows that round number price points, like $10, are psychological barriers for the remote forex trader and that if a stock is going to stop rising, it will probably be near a point like this. As it turns out, after momentarily shooting to $10.03, the price stops rising and starts to go down.
Read more here.
In the markets, greed is often a good thing. It is what drives companies to perform well, and what drives much of the markets movement. It’s the effort that the remote forex trader will expend trying to make a profit that creates the market movement that enables you, as a remote forex trader, to succeed.
The desire to make money is what motivates a remote forex trader to become successful. But the desire to succeed is different from the desire to get every bit of possible profit from a trade. This kind of reckless greed makes a remote forex trader hold on to their position long after the downside has started to outweigh the upside, until risk outweighs potential reward.
Here's an example: a remote forex trader sees that a particular stock is starting on a run; it's reported good news and is already up 20% for the day. The volume is still building; it's stable at the current price; the market is rallying strongly; and it looks like it will go higher. The remote forex trader buys 1,000 shares at $6 a share. By 12:15 P.M., the stock has raced up to $10 - a gain of over 66% for the day, and a profit of $4,000 on 1,000 shares.
This remote forex trader knows that round number price points, like $10, are psychological barriers for the remote forex trader and that if a stock is going to stop rising, it will probably be near a point like this. As it turns out, after momentarily shooting to $10.03, the price stops rising and starts to go down.
Read more here.
Surge in aluminium prices helps lift trade figures
A surge in prices for aluminium exports helped lift the merchandise terms of trade index 1.1 per cent in the March quarter, Statistics New Zealand (SNZ) said today. The figure was unexpectedly good with economists polled by Reuters having forecast a 1 per cent fall. The terms of trade index measures how many goods can be imported for every dollar of exports. SNZ said merchandise export prices were up 3.2 per cent, the largest quarterly increase since a 7.2 per cent rise in the June 2004 quarter. The most significant contributor was non-food manufactures up 5.9 per cent, predominantly driven by a 22.6 per cent increase in aluminium prices. The second most significant contributor to the rise in export prices was a 4.9 per cent rise in the forestry products index, with prices for wood exported as logs up 6.5 per cent, wood pulp up 5.1 per cent, and paper and paper products up 2.7 per cent. The rise followed depreciation of the New Zealand dollar against currencies of our major trading partners, combined with increasing world prices for some of our major export commodities, SNZ said. Import prices were up 2.1 per cent, with transport equipment up 4 per cent, pushed by higher prices for aeroplanes and other aircraft, and new passenger motor cars. The petroleum and petroleum products index continued to rise although at a slower rate. In the March quarter it was up 4 per cent, following a 5.6 per cent rise in the December quarter and 11.3 per cent rise in the September quarter. Weakness of the New Zealand dollar had been a factor in the import price rise, with the March quarter being the first since June 2004 that the currency had fallen against the currencies of all major trading partners, SNZ said. Seasonally adjusted export volumes fell 2.4 per cent, with a 17.2 per cent drop in meat volumes the main contributor. The volume of meat exports was at its lowest level since the December 2002 quarter. Seasonally adjusted import volumes were up 0.5 per cent with fuels and lubricants the main contributors.
Read more here.
Read more here.
Central bank to unite forex trading systems
The central bank is planning on combining the nation's traditional foreign exchange trading system with a new system initiated last year by the end of 2006, the China Securities Journal said Saturday.
An integrated system would be the lastest in a series of reforms to increase market efficiency and monitoring, the newspaper said.
The new system was launched a year ago and allows domestic trading in eight foreign currency pairs. It is a step toward a market-based environment by allowing domestic banks to trade foreign currencies, but is separate from yuan trading.
Morgan Stanley, Calyon Diverge on Dollar-Euro Amid Volatility
Forecasters Stephen Jen and Mitul Kotecha agree that traders may have to get used to abrupt currency swings of the kind they saw last week, when the dollar had its biggest surge against the euro in nine months. They disagree on where the U.S. currency will end the year.
Morgan Stanley's Jen says the dollar will strengthen to $1.24 to the euro by Dec. 31 from $1.2645 now. Along the way, it will bounce wildly, falling below $1.30 before rising, he said. Kotecha, at Calyon, a unit of Credit Agricole SA, sees the dollar slumping to $1.35 per euro by year's end.
``We will be in a much more volatile environment in the second half,'' said 35-year-old Kotecha, Calyon's London-based head of global foreign-exchange strategy. ``The dollar won't fall in a straight line.''
The divergent forecasts show the difficulty of predicting currency moves at a time when Federal Reserve policy-makers have been changing their tone on the pace of interest rate increases. Thirty-two economists surveyed by Bloomberg on average predict the dollar will weaken by year's end to $1.30 per euro -- a level almost reached at the beginning of last week, when it touched $1.2980.
The U.S. currency then gained 2.1 percent against the euro, its biggest advance since August, to finish at $1.2650 as Fed officials makers signaled that they would keep raising rates to keep inflation in check. The central bankers' comments also helped trigger the biggest weekly slump in global stock markets in more than 3 1/2 years.
Fake currency seized, one held
Thirteen fake currency notes of denomination Rs 100 were seized from one Md Ibungo(30) s/o Md Shah of Lilong Turel Ahanbi while he along with two other accomplices tried to make use of the fake currency in purchasing petrol at Kyamgei Pal Ahanbi at around 7.15 am today.
Read more here.
Read more here.
Currency Strategists: Deutsche Bank Says to Buy Yen on BOJ Move
June 12 (Bloomberg) -- The yen will rise to its strongest since January 2005 in the next six months on prospects the Bank of Japan will boost borrowing costs at a faster pace than the Federal Reserve, according to Deutsche Bank AG.
The yen has gained 3.3 percent against the dollar this year on speculation the BOJ will lift its benchmark rate from near zero percent, while speculation is building the Fed is close to the end of its cycle of rate increases. Japan's central bank cut overnight rates to zero in 2001 to combat deflation.
``The Fed is going to be on hold while the BOJ will continue to hike throughout the year,'' said Jens Nystedt, a currency strategist in New York at Deutsche, in a phone interview on June 9. ``The interest-rate differential going forward is going to favor the yen. I certainly want to be long,'' or buying the yen, he said.
From 113.97 per dollar at 5:27 p.m. in New York on June 9, the yen will rally to 102 per dollar by year-end, Nystedt predicts. It would be the strongest since 101.68 yen on Jan. 17, 2005. The yen reached an eight-month high of 109 yen on May 17.
Frankfurt-based Deutsche is the largest currency trader, according to an annual survey by Euromoney magazine.
Nystedt predicted the BOJ will boost its benchmark rate starting in July by a total of 0.75 percentage point by year-end. The Fed will lift its target a 17th straight time by a quarter- percentage point to 5.25 percent at its June 28-29 meeting and then pause, he said. The U.S. benchmark rate will only exceed Japan's by 4.5 percent by year-end, he said.
Money, Banking and the Federal Reserve
I have never been a big fan of the FED. If you have a moment follow this link and view this video. It will provide some interesting insight!
http://video.google.com/videoplay?docid=-466210540567002553&q=mises
Happy Trading!!
For Forex training and education visit my Forex Journey Lens
http://video.google.com/videoplay?docid=-466210540567002553&q=mises
Happy Trading!!
For Forex training and education visit my Forex Journey Lens
Dollar May Gain on Inflation Reports, Forecast for Fed Rates
June 12 (Bloomberg) -- The dollar may gain against the euro on speculation U.S. government reports will signal inflation is accelerating and prompt the Federal Reserve to raise interest rates for a 17th consecutive time.
Sixty-two percent of the 53 traders, strategists and investors surveyed by Bloomberg on June 9 from Sydney to New York advised buying the dollar against the euro. Forty percent recommended purchasing the U.S. currency against the yen.
``The market's very nervous about inflation and the prospect of higher interest rates, and that's favoring the dollar,'' said Ian Gunner, head of foreign exchange in London at Mellon Financial Corp., which holds $4.13 trillion in assets. ``We're likely to see more strength for the currency.''
Producer prices probably rose 4.3 percent in May compared with a year earlier, the biggest increase since January, according to the median forecast of economists in a Bloomberg survey. Consumer prices likely increased 3.9 percent in May from a year earlier, after a 3.5 percent gain in April. The reports are scheduled for release June 13 and 14.
The U.S. currency rose the past five days, its longest rally since January, as traders boosted bets the Fed will lift its target rate by a quarter-percentage point on June 29 to 5.25 percent. Odds of an increase surged to 84 percent last week from below 50 percent a week earlier, trading in interest-rate futures show, after Fed Chairman Ben S. Bernanke and central bankers emphasized their concerns about inflation.
DGCX launches currency futures trading
Trading in currency futures commences tomorrow, Monday 12th June 2006 on Dubai Gold and Commodities Exchange (DGCX).
This is the third product to be launched on the DGCX after Gold, (November 2005 at launch) and Silver (March 2006).
From today, DGCX brokers will be able to trade Euro/US Dollar, Yen/US Dollar and Sterling /US Dollar contracts with other contracts coming on line over time. Each of these currencies will have four forward months contracts maturing in March, June, September and December. The contract size for Euro/USD and Sterling/USD will be 50,000 while the contract size for Yen/USD will be 5,000,000.
DGCX continues to develop apace with the existing contracts achieving phenomenal growth. In the most recent market update, DGCX confirmed that Gold futures volumes grew by 54% from April to May, reaching a staggering 62,139 Kilos. These figures include a highest ever daily traded volume of 6062 contracts on 15th May.
With commodity markets in the middle of a major bull run, the introduction of a diverse range of commodities on DGCX, offers an ideal platform for market participants to trade all the products on a single exchange platform. The Exchange plans to introduce futures contracts on steel and marine fuel oil in the fourth quarter of 2006.
Read more here.
This is the third product to be launched on the DGCX after Gold, (November 2005 at launch) and Silver (March 2006).
From today, DGCX brokers will be able to trade Euro/US Dollar, Yen/US Dollar and Sterling /US Dollar contracts with other contracts coming on line over time. Each of these currencies will have four forward months contracts maturing in March, June, September and December. The contract size for Euro/USD and Sterling/USD will be 50,000 while the contract size for Yen/USD will be 5,000,000.
DGCX continues to develop apace with the existing contracts achieving phenomenal growth. In the most recent market update, DGCX confirmed that Gold futures volumes grew by 54% from April to May, reaching a staggering 62,139 Kilos. These figures include a highest ever daily traded volume of 6062 contracts on 15th May.
With commodity markets in the middle of a major bull run, the introduction of a diverse range of commodities on DGCX, offers an ideal platform for market participants to trade all the products on a single exchange platform. The Exchange plans to introduce futures contracts on steel and marine fuel oil in the fourth quarter of 2006.
Read more here.
Saturday, June 10, 2006
Euro FX Trade
We just exited our June Euro put spread for a little more than a 200% return in 11 trading days. As I mentioned in the June spread I remain a longer term bull of this market. Today's breakdown is nothing more than a shakeout of the longs one day before June's option expiration, coincidence?...I think not.
We may break down a bit more in the coming days but by then end of this month I expect to see this market back towards 1.30. Mr. Bernanke may have spooked the markets but it is nothing more than the typical over reaction that we are seeing in the Dollar.
The ECB did surprise us by only raising rate by .25 point rather than the .50 point that was expected. While this story was spun as bearish, I believe that as a whole the European's financial house is in better order than here in the US and we should see that reflected in the currency exchange rates as this becomes more evident.
Friday, June 9, 2006
U.S. Dollar Mixed Against Other Currencies
The dollar turned mixed Friday against other major currencies, rising against the euro, holding steady against the British pound and falling against the Japanese yen.In late New York trading, the euro slipped slightly to $1.2644 from $1.2646 in New York on Thursday.
The British pound was lower at $1.8413 in late New York trading, while the dollar fell to 113.92 Japanese yen from 114.21; 1.2312 Swiss francs from 1.2323; and 1.1063 Canadian dollars from 1.1224.
The European Central Bank boosted its key lending rate by a quarter percentage point to 2.75 percent at a meeting Thursday in Madrid, Spain, but some had speculated it would raise rates even higher.
Read more here.
The British pound was lower at $1.8413 in late New York trading, while the dollar fell to 113.92 Japanese yen from 114.21; 1.2312 Swiss francs from 1.2323; and 1.1063 Canadian dollars from 1.1224.
The European Central Bank boosted its key lending rate by a quarter percentage point to 2.75 percent at a meeting Thursday in Madrid, Spain, but some had speculated it would raise rates even higher.
Read more here.
Weekly Outlook: Aussie Cools Its Heels At A Bad Time
The plethora of data released for the aussie this past week could not save it from overpowering dollar strength and weak commodity prices, especially considering the mixed nature of data.This coming week much more brief, which may lend even less support to the currency as it consists almost completely of surveys and lacks any heavy economic announcements.
Traders will have to wait until Monday night for the first release as Manpower Inc announces its third quarter employment outlook. With the labor market showing strong improvement, the outlook should be positive, however this may be slightly dampened by evidence that a cooling economy may be hurting companies’ intentions to hire more workers. Tuesday, National Australia Bank releases its May business survey. Recent surveys have shown that, despite higher fuel, wage, and borrowing costs, businesses do have a positive outlook for their futures and have confidence in the economy.
The next day lists the Westpac consumer confidence survey for June. Confidence fell 6 percent during May after the Reserve Bank raised rates 25 basis points, but should have recovered slightly as consumers become accustomed to the higher rate. Thursday has the RBA bulletin for May to provide figures on the foreign exchange activity of the bank for April. Also released will be consumer inflation expectations for June. May’s expectations revealed that the majority felt prices would rise considerably. Expectations for June may be slightly less severe after last month’s rate hike but the price of energies will be in the back of Australians’ heads.
Read more here.
Traders will have to wait until Monday night for the first release as Manpower Inc announces its third quarter employment outlook. With the labor market showing strong improvement, the outlook should be positive, however this may be slightly dampened by evidence that a cooling economy may be hurting companies’ intentions to hire more workers. Tuesday, National Australia Bank releases its May business survey. Recent surveys have shown that, despite higher fuel, wage, and borrowing costs, businesses do have a positive outlook for their futures and have confidence in the economy.
The next day lists the Westpac consumer confidence survey for June. Confidence fell 6 percent during May after the Reserve Bank raised rates 25 basis points, but should have recovered slightly as consumers become accustomed to the higher rate. Thursday has the RBA bulletin for May to provide figures on the foreign exchange activity of the bank for April. Also released will be consumer inflation expectations for June. May’s expectations revealed that the majority felt prices would rise considerably. Expectations for June may be slightly less severe after last month’s rate hike but the price of energies will be in the back of Australians’ heads.
Read more here.
Oil, imports help push up trade deficit
The trade deficit is rising again after two months of declines, pushed by higher oil prices and a flood of imports from China. Analysts warned that oil prices of more than $70 per barrel will further swell the deficit in coming months.
The Commerce Department reported Friday that the gap between what the United States sells abroad and what it imports rose to $63.4 billion in April, 2.5 percent higher than the March imbalance of $61.9 billion.
The trade deficit fell in February and March, after hitting a record high of $66.2 billion in January. While economists noted that the April deficit was smaller than the $65 billion that had been expected, it was still the sixth-largest imbalance on record.
U.S. Trade Deficit Up to $63.4B in April
The trade deficit is rising again after two months of declines, pushed by oil prices and a flood of imports from China. Analysts warned that global oil prices above $70 per barrel will swell the deficit more in coming months.
The Commerce Department reported Friday that the gap between what the United States sells abroad and what it imports rose to $63.4 billion in April, 2.5 percent higher than the March imbalance of $61.9 billion.
The trade deficit fell in both February and March after hitting an all-time high of $66.2 billion in January.
While economists noted that the April deficit was smaller than the $65 billion that had been expected, it was still the sixth largest imbalance on record. They said deficits in comings months were likely to be worse given the jump in global crude oil prices.
On Wall Street, stocks finished their worst week of the year as investors remained nervous over worries about inflation and interest rates. The Dow Jones industrial average fell 46.90 points Friday to close at 10,891.92, ending the week with a loss of more than 355 points.
Investors' worries about inflation increased after the Labor Department reported that prices for imported goods jumped 1.6 percent in May. Excluding the big rise in petroleum products, import prices were still up 0.6 percent last month.
Read more here.
The Commerce Department reported Friday that the gap between what the United States sells abroad and what it imports rose to $63.4 billion in April, 2.5 percent higher than the March imbalance of $61.9 billion.
The trade deficit fell in both February and March after hitting an all-time high of $66.2 billion in January.
While economists noted that the April deficit was smaller than the $65 billion that had been expected, it was still the sixth largest imbalance on record. They said deficits in comings months were likely to be worse given the jump in global crude oil prices.
On Wall Street, stocks finished their worst week of the year as investors remained nervous over worries about inflation and interest rates. The Dow Jones industrial average fell 46.90 points Friday to close at 10,891.92, ending the week with a loss of more than 355 points.
Investors' worries about inflation increased after the Labor Department reported that prices for imported goods jumped 1.6 percent in May. Excluding the big rise in petroleum products, import prices were still up 0.6 percent last month.
Read more here.
Philosophical FX Mistakes
Trading the Forex market can be tricky at times. We all see this massive flow of money moving between central banks and all we want is to cast our little net into this river of money for some pips. As a technical trader these are the coomon traps I fell into while developing my trading plan.
Don’t Analyze the News for Future Price Action!
Fundamentals matter, but as a technical trader we are aware of economic news as they tend to act as catalyst. News events offer opportunities, but price action is what matters most! How often have you seen news spur price to technical support and resistance levels? I will leave that to the economist!
Don’t Trade the News!
Again, we should always be aware of news releases during our trading session. I don’t trade the news, but I then again I am not a fundamental currency trader either. I do know some super successful fundamental currency traders. It is just not my game. I like to wait for the dust to settle a trend to emerge before jumping into the fray. If, and that is a strong if, I have any open positions going into any major announcements I am really focused on where my stops are located to protect my position if I am deep into profit. More often than not I exit open trades if minimally in profit or in a losing position. News is the fuel, but technicals are in control.
Keep it Simple!
When I began trading I wanted to learn every forex strategy on earth. I found that the simpler strategies afforded me more consistency! And that is what I was after all along. After being able to consistently drive profits out of my trading activities I turned my focus to maximizing entry and exit points, yet deploying simple strategies all along.
Happy Trading!!
Don’t Analyze the News for Future Price Action!
Fundamentals matter, but as a technical trader we are aware of economic news as they tend to act as catalyst. News events offer opportunities, but price action is what matters most! How often have you seen news spur price to technical support and resistance levels? I will leave that to the economist!
Don’t Trade the News!
Again, we should always be aware of news releases during our trading session. I don’t trade the news, but I then again I am not a fundamental currency trader either. I do know some super successful fundamental currency traders. It is just not my game. I like to wait for the dust to settle a trend to emerge before jumping into the fray. If, and that is a strong if, I have any open positions going into any major announcements I am really focused on where my stops are located to protect my position if I am deep into profit. More often than not I exit open trades if minimally in profit or in a losing position. News is the fuel, but technicals are in control.
Keep it Simple!
When I began trading I wanted to learn every forex strategy on earth. I found that the simpler strategies afforded me more consistency! And that is what I was after all along. After being able to consistently drive profits out of my trading activities I turned my focus to maximizing entry and exit points, yet deploying simple strategies all along.
Remember, these are my "Enlightened" thoughts. You should develop your own strategies and plan.
Happy Trading!!
Investors nervous about rates
Stocks were mixed in early trading Thursday as investors eyed sinking oil prices and a selloff in stock markets overseas.
The Dow Jones industrial average (down 15.05 to 10,915.85) and the broader Standard & Poor's 500 index (down 0.75 to 1,255.40) both hovered around the breakeven about a half hour into the session.
The Nasdaq composite (down 6.27 to 2,145.53) lost 0.5 percent.
The European Central Bank hiked its key interest rate a quarter percentage point at its meeting in Madrid Thursday, in line with forecasts of economists, sparking concerns about rising global interest rates.
Asian markets ended lower, with Japan's benchmark Nikkei index tumbling 3 percent, and European shares were lower in early afternoon trading.
Oil prices sank for the third straight session Thursday on news of the death of Abu Musab al-Zarqawi, the leader of al Qaeda in Iraq.
DGCX to start currency trading from June 12
The Dubai Gold and Commodities Exchange (DGCX) will start currency futures trading in three currency contracts from June 12, said Framroze Pochara, Chief Executive Officer of DGCX yesterday.
With the launch of currency futures, DGCX has entered select league of global derivative exchanges that offer currency derivatives. DGCX already has gold and silver futures and expects to add fuel oil and steel futures in the near future.
Speaking to Khaleej Times yesterday, Pochara said there is a huge spot market for leading international currencies in the UAE. While the futures market will serve as an ideal hedging platform for banks, money exchange houses and trading houses it will also offer investment opportunities for currency investors.
Initially DGCX will trade futures contracts in 3 currencies — Euro-Dollar, Yen-Dollar and Sterling-Dollar with contracts maturing in March, June, September and December each year. These will be deliverable contracts. This will establish DGCX as the first exchange for trading currencies in the Middle East.
The global spot market for currencies exceeds $2 trillion daily turnover while the derivative transactions are several fold larger than the spot market. DGCX expects participation from all leading local, regional and international banks in the currency futures trading. “Currently we have more than 100 broker members on DGCX and all of them are eligible to participate in currency trading from day one. The initial response has been very encouraging and we expect good response from all market participants,” said Arshad Khan, Director of DGCX.
DGCX will follow T+1 trading system in currency trading with National Bank of Dubai and HSBC acting as delivery banks for settlement of DGCX currencies futures contracts.
Thursday, June 8, 2006
CBR has no intention to change structure of forex reserves-Ignatiev
Russia’s Central Bank has no intention of changing the structure of the foreign exchange component of its gold and foreign exchange reserves.
“That component is diversified well enough,” CBR President Sergei Ignatiev told the international banking congress in St. Petersburg on Thursday.
The dollar component constitutes half of the foreign exchange reserves and the euro component, 40 percent. The other currencies are the British pound and the Japanese yen, the latter accounting for less than one percent of the reserves.
SAFE lifts forex quotas
China will scrap quota restrictions on how much foreign exchange domestic companies can buy to finance their overseas investments, the latest move in a string of measures to relax the country's forex controls.
Under the new rules, which will take effect on July 1, domestic companies will be allowed to use their own foreign exchange holdings, buy foreign currency from regulators or borrow from both overseas or domestic lenders to invest abroad, the State Administration of Foreign Exchange (SAFE) said in a statement posted on its website yesterday.
Overseas investments refer to companies setting up subsidiaries, mergers and acquisitions, the foreign exchange regulator said.
"The policy revisions will help companies' 'go abroad' strategies and meet their increasing demand for conducting overseas investments," it said in the statement.
"The move is not surprising and is in line with the country's changing forex management policy," said Li Yongsen, an economist with the Renmin University of China, referring to the country's new policy of encouraging households and businesses to hold more foreign exchange.
Read more here.
China will remove restrictions on how much foreign exchange domestic companies can buy to fund overseas acquisitions or expansion, a step toward a more freely traded currency.
Companies may use their own holdings, buy foreign exchange from regulators or borrow from overseas or domestic lenders to invest abroad starting July 1, the State Administration of Foreign Exchange said in a statement on its Web site on Thursday. The regulator’s move won’t change approval requirements set by other government bodies.
China is gradually loosening controls on the yuan after ending a decade-old peg to the dollar in July. Surging exports helped drive the nation’s foreign-exchange reserves up 33% to a record $875.1 billion in the year to the end of March.
Forex - US dollar little changed vs yen in Tokyo after correcting from NY levels
The US dollar was little changed against the yen in midday trade here though it was well off its New York levels overnight, with the greenback having posted solid gains in recent days on the back of renewed expectations for further US interest rate hikes, dealers said.
'The dollar had risen 3.30 yen over the past four trading days and it was too fast,' prompting a mild technical correction from levels in New York, said Kikuko Takeda, a currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
However with Federal Reserve officials expressing unhappiness over inflation levels, expectations for further Fed rate hikes have moved up considerably this week, and this could provide further support for the dollar in the near term.
Read more here.
'The dollar had risen 3.30 yen over the past four trading days and it was too fast,' prompting a mild technical correction from levels in New York, said Kikuko Takeda, a currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
However with Federal Reserve officials expressing unhappiness over inflation levels, expectations for further Fed rate hikes have moved up considerably this week, and this could provide further support for the dollar in the near term.
Read more here.
Joys of Compounding
Hello Forex Nation!!
Here is a simple tip. Trade in at least 2 forex accounts. I have a compounding account where I have a dialy pip goal of only 15. I also have what I call my true currency trading account. Here are the differences.
Compounding Account
15 pip daily goal
Intraday trading only
5% maximum risk
When daily pip goal is reached I close all trades and trade station
I rarely withdraw from this account and only for investments into other wealth buidling vehicles (eg real estate)
Trading Account
PIP goals established by reward -risk ratio (minimum 2:1)
Focus on swing and position trades
2% - 5% maximum risk
Use exit strategies predifined in my trading plan
Withdrawals allowed (I use this as an incentive)
My true joy is the compounding account. For those of you who want to witness the true power of trading forex then this is what a compounding account can do for you!!
January 1st - Open a Super-Mini Account with $300.00. Average 15 pip daily goal throughout the year (5% risk). December 31- Account balance ~ $168,000.00
This same scenario with a Mini Account with a starting balance of $3,000.00 would yield a year end balance of ~ $1,680,000.00!! Lots of zeros people! Just want to save for retirement? Average 15 pips PER WEEK and you will have the same amount in 5 years.
How's your 401(k) looking now!
Happy Trading!!
Vistit me at my Forex Lens to jump start your forex education and training!!
Here is a simple tip. Trade in at least 2 forex accounts. I have a compounding account where I have a dialy pip goal of only 15. I also have what I call my true currency trading account. Here are the differences.
Compounding Account
15 pip daily goal
Intraday trading only
5% maximum risk
When daily pip goal is reached I close all trades and trade station
I rarely withdraw from this account and only for investments into other wealth buidling vehicles (eg real estate)
Trading Account
PIP goals established by reward -risk ratio (minimum 2:1)
Focus on swing and position trades
2% - 5% maximum risk
Use exit strategies predifined in my trading plan
Withdrawals allowed (I use this as an incentive)
My true joy is the compounding account. For those of you who want to witness the true power of trading forex then this is what a compounding account can do for you!!
January 1st - Open a Super-Mini Account with $300.00. Average 15 pip daily goal throughout the year (5% risk). December 31- Account balance ~ $168,000.00
This same scenario with a Mini Account with a starting balance of $3,000.00 would yield a year end balance of ~ $1,680,000.00!! Lots of zeros people! Just want to save for retirement? Average 15 pips PER WEEK and you will have the same amount in 5 years.
How's your 401(k) looking now!
Happy Trading!!
Vistit me at my Forex Lens to jump start your forex education and training!!
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