Fed Members Continued To See Tapering This Year, Despite The September Disappointment

Although the Fed failed to announce tapering in September, the FOMC minutes unveiled that most policymakers expect it to begin this year. The minutes showed that the Fed decision to not taper last month was driven by the tightening in financial conditions, uncertainty over the fiscal outlook and the ambiguous economic data released since the June meeting. Meanwhile, policymakers were divided into 2 camps when considering whether to taper with the first camp mainly concerning about whether economic conditions warranted tapering while the second focused on how the tapering decision would affect the credibility of the Fed monetary stance.

The minutes indicated that some members saw financial conditions as tighter and a risk from "sizable increases in interest rates' although the intermeeting data suggested that the economy was 'expanding at a moderate pace'. Meanwhile, 'household spending and business fixed investment advanced, and the housing sector was strengthening, but mortgage rates had risen further and fiscal policy was restraining growth'. Yet, others viewed that 'cumulative progress' in labor markets since the beginning of the QE warranted reduction of stimulus. They believed that monetary policy credibility would be 'best served by announcing a downward adjustment in asset purchases' at the meeting while any postponement 'of such an announcement to later in the year or beyond could have significant implications for the effectiveness of Committee communications'.

Concerning the forward guidance, some members expressed the concerned that a 'delay could potentially undermine the credibility or predictability of monetary policy by, for example, increasing uncertainty about the Committee's reaction function and about its commitment to the forward guidance for the federal funds rate, with the result of an increase in volatility in financial markets'. The Fed members also 'discussed the potential for clarifying or strengthening the Committee's forward guidance' and the steps suggested include 'stating that the Committee would not raise its target for the federal funds rate if inflation was expected to run below a given level or providing additional information on the Committee's intentions regarding the federal funds rate after the 6.5% unemployment threshold was reached'.

Policymakers had a vigorous debate about whether to taper in September and how the process should work. It's stated in the minutes that 'a few participants expressed a preference for not cutting MBS purchases but reducing purchases only of Treasury securities initially, with the intent of continuing to support the recovery in the housing sector'. With respect to the economic projections, the minutes indicated that 'most participants viewed their economic projections as broadly consistent with a slowing in the pace of the Committee's purchases of longer term securities this year and the completion of the program in mid-2014'.

In short, the minutes were a dovish one. Yet, most member continued to expect tapering to begin later this year but economic data, especially those reflecting the labor market situation, are the deciding factors.

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Dovish Yellen Defended Easing As Economic And Employment Growth Remain Far Short Of Potential?

Vice chairman Janet Yellen's testimony before the Senate contained few surprises. Yet, it did not prevent equities to rise, and US dollar and yields to fall, as the upcoming Fed chairman reiterated her dovish stance and defended the central bank's accommodative monetary easing measures. Yellen indicated that the best way to normalize monetary policy is to normalize the economy, noting that 'a strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases' and 'Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy'. In short, economic developments remain the key determinant of the tapering schedule on which Yellen refrained from giving any hints.

Senators criticized the negative impacts of low rates on deposits and risks to financial stability. While admitting that low interests rates hurt savers, Yellen noted that slack demand would have resulted in low yields even if the Fed had not implemented monetary policies and/or QE. Instead, the Fed's easing has supported the job and housing markets. Concerning risks on financial stability, Yellen defended that she has not see signs of systemic bubbles despite the large size of the balance sheet. Yet, she affirmed that the Fed has been monitoring the risks. In contrast with the case of Bernanke, senators did not questioned about the inflationary risks. After all, Yellen stayed consistent with the Fed's mandate to keeping the Fed's long-run inflation target at 2%. She also stated that she and her colleagues have been striving to maintain price stability.

Another mandate of the Fed is on employment. Yellen appeared to be skeptical of the representativeness of the employment figure (e.g. the unemployment rate) on the actual job market conditions. Indeed, in previous occasions, Bernanke noted that the drop in labor force participation has partly led to the apparent decline in the unemployment rate, and this likely has overstated actual improvement in labor markets. The Fed might find it difficult to rely on the reported statistics in assessing the real employment conditions. Yellen also cited similar reasons to warn that the job market is probably not as healthy as suggested by the job market data. These comments might trigger to speculations of the recent hot topic that the Fed might lower the unemployment threshold. Unfortunately, we failed to get any hint from Yellen. While her comments appeared to support a lowering of unemployment rate threshold as part of the FOMC's communication on interest rate policy, Yellen at the same time noted that there may be resistance should the Fed move the threshold to 6% or below.

As an existing core Fed member, it's expected the Yellen's comments were mainly supportive of the Fed's monetary policies. She explicit stated that she believed the benefits of asset purchases and lower rate for longer guidance exceeded the costs both in terms of financial stability and inflation risks.

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FOREX FUNDAMENT KNOWLEDGE

As we mentioned before, prices do not cause prices. The reasons that lie behind price movements in the forex market are the subject of fundamental analysis, and those familiar with trading stocks should have little trouble in becoming familiar with fundamental analysis of currencies. Just as stock traders measure the health of a publicly-traded company by examining its balance sheet, indebtedness and cash flow statistics, the forex trader decides on the soundness of a nation’s economy by considering such things as central bank interest rate differentials (which is the difference between the borrowing costs as decided by the central banks of different countries), trade surplus or deficits, along with employment trends, productivity, and a number of other factors.


Fundamental analysis states the causes of major price movements in a straightforward and clear manner. For instance, because of the ease of borrowing and the resultant abundance of global liquidity in recent years, the interest rate differential between two nations’ central banks has been the most important indicator in determining price trends in the forex market. While this is unlikely to remain so in today’s difficult environment, interest rates will remain one of the most important drivers of currency market trends for as long as financial actors are free to move capital across national borders.


Fundamental analysis attempts to discover and predict the causes of forex trends, and in doing so it uses a number of indicators to present a comprehensive picture of global finance. But beyond the indicators themselves, what really causes a currency pair to move in a particular direction? Are currency movements really decided by statistics and news flow only?


This question brings us to another definition of fundamental analysis: Fundamental analysis attempts to predict money flows into and out of a particular currency. Statistics are significant only as far as the markets regard them as a basis for directing cross-border money flows. A nation can have very low unemployment, a high current account surplus, excellent productivity rates, and very good statistics in general, and its currency can still do poorly against others — if, despite all those advantages, there’s a greater supply of it with respect to total demand. In other words, no indicator, no statistic or standard is enough to magically appreciate a currency versus another, if the general economic environment (i.e. the financial markets in general), is unwilling to make use of the advantages that a sound and healthy economy provides.


Later we will return and take a deeper look at fundamental analysis.

The strength of fundamental analysis lies in its ties with economic events at the root level. It is relatively straightforward about its descriptions, and its rules and principles are often simple and easy to understand. And, the fact that fundamental causes decide the major trends in forex markets is indisputable. The trader possesses a very reliable tool in this kind of analysis. The problem with fundamental analysis, on the other hand, is twofold: it’s very poor as a timing indicator; and markets do not always react to its dictates in a rational manner. What must be remembered when the market value of a currency is a lot different from its fundamental value, is that the market would not have tolerated an irrational quote if some people somewhere were not making a great profit from that irrationality. It is therefore imperative that the analyst identify the abnormality, examine the causes of it, and formulate a strategy to exploit the discrepancy.


If fundamental analysis is a poor method for deciding on the timing of a trade, what will you, the trader, use to define your entry and exit points? Which method will allow you to decide when to take a profit or accept a loss? This question leads us to introduce the subject of technical analysis.

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RETAIL FX TRADING CONTINUES TO SURGE

Pretty much every brochure advertising forex trading highlights the fact there is no such a thing as a bear market in forex. Stocks, bonds, and commodities can all lose value simultaneously (as happened when Lehman Brothers declared bankruptcy in October 2008) but it’s impossible for all currencies to decline simultaneously. A bear market in the Euro might be offset by a bull market in the Dollar; or Swiss Franc; or Brazilian Real. Regardless, you don’t have to search far to find currencies that are outperforming, whereas a stock picker would certainly have his work cut out for him during an economic recession. I remind you of this cliche because in the current market environment, it has apparently taken on new significance. Anecdotal reports of investors frustrated with stocks, or having been burned by China, or disappointed by the collapse in oil, are flocking to forex by the thousands. Angry about suspended trading rules on stock markets? This could never happen in forex (at least not under current rules), since currencies are traded on multiple exchanges linked through a decentralized system. Here are the stats: at Forex.com, “New accounts have increased about 30 percent a month in the last six months from pre-September levels, while the number of trades per day has risen almost 50 percent. GFT Forex said trading volume rose 187 percent from late 2007 to late 2008….By the end of 2006 [the last year apparently for which this type of data is available], average daily trade volume reached over $60 billion, a 500 percent increase from 2001…Trading volume generated by ‘retail aggregators’ — electronic trading platforms that cater to individual retail traders — rose almost 43 percent from 2007 to 2008.” This dwarfs both overall growth in forex, as well as retail growth in the bread-and-butter securities markets.
One trend worth drawing attention to is that new investors are focusing on the most popular currency pairs. [See Chart below, courtesy of Wikipedia]. It has been proposed that this is because of widening spreads (i.e. more PIPs) on less liquid pairs, but it is just as likely being caused by investors applying the stock market logic of “buy what you know” to forex. It is understandable that those new to the game would want to get their feet wet by dabbling in the Euro/Dollar/Yen, rather than diving right in to niche currencies such as the Mexican Peso or even Korean Won, whose movements are both more volatile and more difficult for the average trader to understand.

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What Types of Orders Provide: part-3

One-Cancels-the-Other (OCO)

Whenever entering the market, exiting the market at some future time is required. An OCO order is a

procedure that means "one-cancels-the-other." Upon entering the market, place a protective Stop Loss

Order and establish a projected profit target. That projected profit target can be your Limit Order.

If you simultaneously place both Limit and Stop Loss Orders when you enter the market, you can OCO

them and walk away from your computer. What does that mean? At some future point in time, either

your Stop Order or Limit Order will automatically cancel your opposing order. If the trader is sure about

a trade, they can execute an OCO order and walk away from the trade. The trading software will then

manage the trade.

Cancel/Replace Orders

A Cancel/Replace Order is a procedure and not an Entry or Exit Order. By definition, it is when the trader

cancels an existing open order and replaces it with a new order. A Cancel/Replace order is primarily a

strategy of trading and predominately used after one has taken a position in the market and wants to

stay in the market locking in profit. For example, you buy Swiss at 1.410. Your protective Stop Loss Order

is 1.390. The market moves in the direction you projected. Now, you want to reduce your potential loss.

So, cancel your Stop Order at 1.390 and replace it to 1.410 where you got in. You are now in a trade with

no risk! As the market moves further North, in your direction, you want to lock in more profit. You can

cancel your 1.410 Stop Loss Order and replace it with a new 1.440 Stop Loss Order. You have captured

 . You are in an all-win, no-risk trade. Keep canceling and replacing your Stop until you are finally

stopped-out. This is discussed separately under "Protective Stops" in the Ultimate Traders Package on

Demand.

..................Remember................

Sellers are ASKing for a high price

Buyers are BIDding at a lower price

Trading is an auction

Slippage occurs with most Market Orders

The difference between the ASK and the BID price is the SPREAD.

Thanks for being with us.

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Best time to trade forex currency.

Before you place a trade, it’s important to decide on your trading timeframe and also

understand when to place your trade.

The forex market doesn’t sleep.

The 24-hour nature of the forex market means traders have the opportunity to place trades at

any time of day or night. You can’t buy shares in Barclays after 4.30pm but you can buy EUR/

USD at midnight if you want!

Whilst this flexibility is a huge advantage, it does mean that your open trading positions will be

moving whilst you’re tucked up in bed. For this reason we always recommend using a stop-loss

when trading forex (see preserving your capital).

Trading volumes are at their highest during European and US trading hours, whereas Asian

trading is generally much quieter. In fact, forex trading volumes hit their peak during the

crossover period of the UK and US trading sessions – this is from 2.30pm to 4.30pm British

time. So technically, it’s best to place a new forex trade during this ‘crossover’ period.

However, different currency pairs are more likely to move during certain times of the day.

For example, EUR/GBP will experience its greatest movement during the European session.

Whereas AUD/USD can regularly experience large moves overnight during Australian market

hours.

This isn’t to say that you shouldn’t be trading pairs that are likely to move overnight. You just

have to be adequately equipped to trade them.

When trading a currency pair that is likely to be volatile during the Asian session we recommend

placing a limit order along with your stop-loss.

A limit order is essentially an order to close your position when it reaches a certain level of

profit. So placing a limit order will ensure that if the market moves heavily in your favour

overnight, your position will be closed and your profits will be taken. 

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What Types of Orders Provide: part-2

Slippage

Slippage is a trade executed between a buyer and seller where the resulting buy or sell transaction is

different than the price seen just prior to order execution. On average, one to six pips will be lost with

Market Orders, perhaps more, due to slippage. Market Orders are rarely filled at the exact, anticipated

price. Market Traders Institute recommends caution when entering or exiting with a Market Order.

Limit Orders

Limit Orders are orders given to a broker to buy or sell currency lots at a certain price or better. The

term "Limit" means exactly what it says. Most of the time, you will buy at that exact limit price or better.

Limit Orders are used to enter and exit the market. They are generally used to acquire a specific price,

avoid slippage and unwanted order fills (execution price), which can happen with Market Orders.

When selling above the market, it is a Limit Order.







When buying below the market, it is a Limit Order. A Limit Order will be executed when the market trades through it. Seventy to ninety percent of the time, if the market is trading at your Limit Order, it will be executed. The market must trade through your specified Limit Order number to guarantee a fill. The trading software provides notification within

seconds of the fill. A trader does not have to call his broker to see if their order has been filled.

Stop Orders

Stop Orders are orders placed to enter or exit the market at a desired, specific price. When buying

above the market, it is a Stop Order. When selling below the market, it is a Stop Order. Stop Orders turn

into Market Orders when the market trades at that price. Stop Orders, as well as Market Orders, are

subject to slippage, Limit Orders are not.

The majority of Stop Orders are used as protective, Stop Loss Orders. These orders are placed with an

Entry Order to ensure an exit when the market goes against you. A good trader never trades without a

protective Stop Loss Order. They are orders executed to get you out of the market when your trade has

gone against you. Protective Stops are discussed in depth in the Ultimate Traders Package on Demand.

Thank you

Wait for What Types of Orders Provide: part-3

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How to use this Site for forex

This Site has been developed to help the Forex beginner, though experienced

and professional traders may find it a handy reference.

Beginners and novice traders are likely to benefit from reading the entire

text, starting with Chapter 1, which provides a basic overview of what

currency trading is, and how to get started.

The chapters are set out in a logical flow, but do not need to be read in order

to make sense, as each works as a discrete unit unto itself.  You may prefer to

focus first on those chapters that you feel will complement your particular

knowledge base best.  

Chapter 11 is a glossary of terms (listed alphabetically)

used in the Forex business, that will prove helpful as you read this Site, and

may serve as a valuable reference as you become an experienced currency

trader.

With the help of this guide, you will soon be ready to start trading Forex – in

fact, with the assistance of the online

team, you can start today.

We wish you success in your trading, and hope you find this Site interesting,

helpful and enjoyable.

Before you start, please remember:

Forex trading (OTC Trading) involves substantial risk of loss, and

may not be suitable for everyone.

Before deciding to undertake such

transactions, a user should carefully evaluate whether his/her financial

situation is appropriate for such transactions.

Always ask your Forex dealer (the TRADING PLATFORM you wish to

trade with) the questions we prepared for you in this Site (chapter 9).

Selecting the appropriate Forex TRADING PLATFORM is essential for

success in handling your trading and monitoring your activity, as well as

maximizing profits, while minimizing losses and costs.

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What Types of Orders Provide: part-1

Types of Orders

A Trader must understand what each order is and what part it plays in capturing pips.

A Forex Trader must use three (3) types of orders: a Market Order, a Limit Order, and a Stop Order.

The two, primary orders used for entering and exiting the Forex market are Limit and Stop Orders. Once

an order is placed, there are two critical procedures: One-Cancels-the-Other (OCO) and Cancel-and-

Replace Orders. Properly understanding the procedures of order execution is a vital step to capturing.

Remember: All good carpenters carry a toolbox. The sharper the tools, and the more skilled the

carpenter is at using them, the more effective they are. The sharper you become as a trader, the more

efficient and lucrative you will be.

Market Orders

A Market Order is an order given to a broker to buy or sell a currency at whatever the market is trading

it for at that moment. The Market Order can be an entry order into the market, or an exit order to get

out of the market. Traders use Market Orders when they are ready to make the commitment to enter or

exit the market. Caution should be exercised when using Market Orders in fast moving markets. During

periods of rapid rallies, or down reactions, gains or losses of many points may occur due to slippage

before receiving the fill.

Trading is an auction where there are buyers bidding on what sellers are offering. The bid is the buy and

the offer to sell is the ask.

Thanks for today.....

Wait for What Types of Orders Provide: part-2

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Which Currency market You like most?

The currency market is not just my job. It is a passion and interest of mine and has been so for many years now. I started covering it in 1991 as a journalist in the run up to the Sterling crisis the subsequent year and “Black Wednesday”, September 16, 1992, when the UK currency was forced out of the Exchange Rate Mechanism (ERM) 

and promptly collapsed in value. The abiding memory of mine to this day is of the sheer power of the currency market in its ability to “defeat” the might and resolve of such a respected central bank as the Bank of England, which gave everything it had in its effort to defend sterling’s ERM “floor” against the Deutschmark of 2.7778. It is a memory of currency dealers screaming 

down the phone, of wave after wave of official intervention to support sterling being swatted aside by the sheer weight of selling pressure. The lesson of this neither is nor should be that financial markets will out in all cases. Rather, it is that the currency market has become so huge that it simply cannot be resisted for any length of time. In the case of “Black Wednesday” — or “White Wednesday” 

as many would have it subsequently — the UK economy was experiencing a severe recession and thus simply could not tolerate the raising of UK interest rates needed to support sterling and keep it within its ERM band commitment. The economic pain of this interest rate and exchange rate commitment was completely at odds with the economic reality in the UK at that time. Moreover, 

UK foreign exchange reserves were fast being wiped out in that defensive effort. In 1992, the global currency market’s daily turnover was the equivalent of USD880 billion, according to the Bank of International Settlements (BIS) tri-annual survey. Thus, the Bank of England’s ability to intervene to support sterling, albeit in the billions, 

was dwarfed by the size of the forces opposing it. As of the 1998 BIS survey, daily turnover had increased to some USD1.5 trillion, subsequently falling back to USD1.2 trillion in the 2001 survey in the wake of the creation of the Euro.

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Do you Know what is Margin Trading: Part - 2?

As I have already mentioned margin trades do not require from investor the whole sum of trading contract.

When investors want to make a trading operation, they deposit a certain sum, which depends upon the total size of the trading contract, and crediting conditions set up by brokerage firms.

When the brokerage firm provides the leverage of 1:100, this means that the investor has to pay the pledge of $1,000 for trading $100,000.

The pledge secures brokerage firms from possible trading losses on FOREX.

Margin trading is very popular because it is easily affordable to average investors. Investing ones capital for getting fixed income from securities foreign countries can hardly bring high profits. No one would dare to doubt that US exchequer bonds are stable and reliable, but they are expensive and give low 

revenue (about 6% annually); that is why they are regarded as long-term investments. Shares can give higher income, however the size of dividends strongly depends upon successful (or not) activity of the company and the favors of shareholders.

 Share purchasing for speculating for the rise of the shares is considered to be more interesting and profitable, but it requires large volumes of investments.

Margin trades do not have these restrictions: you can buy and sell whenever you wish and you will need 0.2-10% from the total size of trading contract.

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Why You can get better trading tools at FXCM with offer ?

FXCM's SIZE and FINANCIAL STRENGTH allow FXCM to allocate large amounts of resources to its education and research departments.

Since 2001, FXCM has expanded its staff to over 500 employees worldwide, including TRADING EXPERTS, FX EDUCATION SPECIALISTS, and TOP-NOTCH FX ANALYSTS, in addition to its large customer support, dealing, and technology development staffs. 

This infrastructure has allowed FXCM to aggressively develop new trading tools to meet the needs of all clients, from beginner to professional FX traders. FXCM offers a wide variety of trading tools to help clients learn about forex, 

analyze the market, develop trading strategies, and stay on top of the latest FX

news and headlines. As a result, FXCM has been named to the Inc. 500 list of America's Fastest Growing Private Companies in 2004, 2005,2006 and 2007.

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Some other popular technical tools

Patterns and forecast methods used today

Basic Forex forecast methods:

Technical analysis and fundamental analysis

This chapter and the next one provide insight into the two major methods of

analysis used to forecast the behavior of the Forex market. Technical analysis

and fundamental analysis differ greatly, but both can be useful forecasting

tools for the Forex trader. They have the same goal - to predict a price or

movement. The technician studies the effects, while the fundamentalist

studies the causes of market movements. 

Many successful traders combine a

mixture of both approaches for superior results.

If both Fundamental analysis and Technical analysis point to the same

direction, your chances for profitable trading are better.

In this chapter…

The categories and approaches in Forex Technical Analysis all aim to support

the investor in determining his/her views and forecasts regarding the

exchange rates of currency pairs. This chapter describes the approaches,

methods and tools used to this end.  However, this chapter does not intend to

provide a comprehensive and/or professional level of knowledge and skill, but

rather let the reader become familiar with the terms and tools used by

technical analysts.

As there are many ways to categorize the tools available, the description of

tools in this chapter may sometimes seem repetitive. The sections in this

Some other popular technical tools:

Coppock Curve

is an investment tool used in technical analysis for predicting

bear market lows. It is calculated as a 10-month weighted moving average of

the sum of the 14-month rate of change and the 11-month rate of change for

the index.

DMI

(Directional Movement Indicator) is a popular technical indicator used to

determine whether or not a currency pair is trending.

The Parabolic System (SAR)

is a stop-loss system based on price and time. It

is used to determine good exit and entry points.

You are almost ready to trade in real-time, but you want to discuss

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History of Gold Trading for you

In the commodities market the term " Loco "means" in ". Derived from the Latin locus meaning place. Loco London represents the basis of trade and settlement of international gold and silver in London. Implementation of this market under the auspices of the London Bullion Market Association ( LBMA ), but not stock.

Physical gold market ( spot gold ) is the world's largest London and Zurich, but London is the most prominent. London grew to dominate the gold market when gold became major currencies. Significant discoveries in the Urals ( Russia ) has increased the global gold production in the 18th century.

Mid-19th century to be the moment for England to dominate world trade and finance, as a source of capital for the mining of gold, and a gold standard of the local currency, the British Pound. So as London became the center of world gold trading and settlement.

Trade Over-the-Counter ( OTC )

London gold market is a market Over-The-Counter which means trading is done directly between the two parties involved, and not through third parties that govern trade, such exchanges.

OTC market lasts for 24 hours a day and has no formal structure and no central meeting place. Most of the trading is done via telephone or electronic dealing system.

In today's global financial markets, gold trading in London held almost all the time around the world. Quoted bid and ask prices on a continuous basis in the financial market information system that can be accessed as Reuters. Besides in London, other major trading center for gold London including New York, Zurich, Tokyo, Sydney and Hong Kong, where the Hong Kong became the center of commerce in Asia.

Why invest in gold ( OTC Spot )

Prices are usually quoted and traded against the U.S. dollar;

Loco London Market can serve multiple purposes such as hedging transactions, investment and speculation;

In the OTC market, investors can maintain their position during the time that they want without any maturity;

Receive interest when selling gold or silver Loco-London final on interest rates;

Transactions leverage on margin;

Investment portfolio diversification.

Gold investment is very safe compared to investments in other areas.

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Part III. Forex Scam - Trading Bots, Signals, and Brokers.

Trading signals services

   In general signals services are not much different from managing and trading bots. The major different in them is that you can decide – to take signal or not, with what volume to trade and can monitor overall development of the trade. In fact, a traditional signal service just gives you the kick – “Dude, Buy!” or “Dude, Sell!” After this you are scratching your head and trying to come to any conclusion. NOTE: Some signals services offer link to a “slave” EA that copies the trades automatically to your account.

 And what’s wrong with it? At least I’m controlling situation and can accept or denied the signal. I’m my own master. With third part management I do not see anything – trades, decision context – nothing. With trading bots I also can’t do much, but here – all the cards in my hands, I suppose.

   I tell you, there are still some scam traps here:

1. One of the possible conditions to get signals, could be an opening account with some particular broker. For example – you will open account with us and you will get trading signals for free. Taking into account broker’s interest (at least fast and flat trading, if not to say worse), you can imagine what kind of signals they could provide;

2. Some good traders could provide their own signal services for free, but usually they do it, if you subscribe for some another services, say trading online room or some others;

3. Take a note that when you take some signal – you absolutely do not know what the foundation of it is, what’s the context and reason for provide it, and how it has appeared at all. All choice that you have is just to take it or not. How do you know, maybe some guy tossed a coin and say – “Heads – buy, tails – sell” and have sent this signals to you. Other words, if you trade – you do it blindly. That sounds not too fascinating, right?

4. Also signal service could be based on some trading bots, that even you have seen before and denied it. But now those swindlers run the same bot in their office, get signals and send them to you. In fact, you’ve bought the same bot, but do not know about it;

5. Human beings psychology is structured so, that it notices unwelcome event stronger than good ones. For example, if you will not take received signal today but the market will accomplished it – you will feel regret about it. At the same time, if you will take 3 losing signal trades in row after that – you will forget about it as soon as will see another missed signal opportunity. This lets bad signal services exist and be demanded by lay people;

6. Here we have to give you the same advice – take a look at promotion way, remember Dennis The Menace 2. If they promise you gold mountains with just $50 monthly subscribe for first 2 weeks (to test the service) – be careful. If their signal service is so good, why do they share with it? Why they do not just use their signals for themselves?

 So, what I have to do then?

   I’ll give you different ways to act with signal services, depending on what you want to get.

If you want just use signals

1. Meet with our Forex Signals Reviews. At least this will let you to avoid many pure scams. You can also check the FPA's Performance Tests of many signals companies;

2. If a signals service comes from a famous trader – he will not give signals absolutely free. Probably you will have to pay for something else – books, forum access, software and get signals just as some add-on.

3. Test signals for some time on demo. Better if you will test them in different market environment – trending and ranging;

4. If signals are provided with foundation and explanation – much better. In this case you can understand why they tell you to buy or sell, and you can compare the signals with your own trading plan;

5. Using signals blindly is a dead-end track in trading – no experience, no success, no profit.

If you want to study

1. That is what we strongly recommend to you.

2. If you follow some trading technique, say, Harmonic patterns, De Mark, DiNapoli, or Elliott Waves – never mind. Find famous and successful trader with this technique and subscribe for their signal service or on-line trading room. This will let you to get access to historic researches, pass through them and get priceless experience of your technique application to real markets.

3. Use only those signal services that provide trade foundations as well. So, that you can understand why they call you to buy or to sell;

4. At the same time follow your own trading plan. Use third party business only as add-on or additional check of your analysis.

5. FPA will give you different opportunities here. First, this is daily signals by Huskins based on fundamental data trading with explanations. Second, Shoulder of Giants part that provides you with full foundation of particular assessment current situation on market – as weekly as daily with video.

6. And last, but not least, by example of FPA, you may see that it is better to deal with those who have not its own trading business, and stands independent from trading process. Also FPA services are free. We are proud are feedbacks of those who use our site content and Youtube.com subscribers to our channel.

Scam Brokers

   Yes they also do still exist, but we will not speak much about them. Their major tricks are bid/ask spread manipulation and clients’ stop grabbing. It is normal if you see 1-3 pips difference in quotes of different brokers, but if this spread is 6-8 pips and very unstable, has a tendency to widen occasionally – that is not good at all. Maybe this is not crucial for you, if you make 1-3 trades per day, but imagine how it will be for scalpers. Besides, 5 pips more spread is just for 1 client and 1 trade, but what if they have hundreds of clients with hundreds of trades per day. This is I can say good money…

Second, is about stop grabbing. The point is that Forex brokers surely know where clients have placed their stops. That’s normal. Also as if you trade via exchange you see all orders that have been placed. But while on exchange there could not be any difference with trading quotes and historical price among the traders, on forex it could. When price approaches to clients orders, back-alley forex brokers manipulate with quotes so, that those stops can be triggered. In reality there was no such price on the market. This is very easy to do, especially if you recall how quotes are provided by DD brokers.

 I suspect something like that…

   Although regulators are struggling with such back-alley brokers, and they are much fewer now, still they exist. Here we can advise you following things:

1. In the US, choose a broker that has been registered as FCM (Futures Commission Merchant) with the CFTC and NFA. The point is that there are almost 2000-2500 forex brokers in US, or claiming to be in the US, but only about 1% of them are registered as a member of NFA;

2. Do not trust any broker by word or advertisement – check out its status (has it registered with NFA or not) by phone (800) 621-3570 or on the NFA website;

3. Do not be upset if you’re not in US – many other countries also have regulators as well I will list some of them in the next lesson of this chapter;

4. Also the NFA is doing much to prevent frauds on the Forex market. Once it has released some NFA basic course. We recommend you to read it;

5. Also we do our own work. We suggest you to read Pharaoh's education folder in the forums, especially his article on broker choosing procedure and our reviews of brokers.

6. Do not deal with a broker that is not a member of NFA/CFTC or other major regulator and do not put money with them. Do not tell us later that you haven’t been warned.

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Market Forex Can work for you

Pasar perdagangan forex (foreign exchange) buka 24 jam sehari 5 hari dalam seminggu dari hari (Senin pagi  s/d Sabtu pagi) tetapi tetap perhitungan bunga inap dihitung 7 hari, waktu perhitungannya hari Senin dihitung 1 hari, selasa 1 hari, rabu dihitung 2 hari, kamis 1 hari, jumat 1 hari sedangkan hari sabtu dan minggu tidak dihitung bebas bunga. Jadi hati2 bertransaksi di hari rabu sebab perhitungan bunga inap masuk dalam waktu bunga 2 hari.

Namun demikian seperti pada umumnya pasar biasa, tidak setiap saat selalu ramai. Ada hari dimana pasar ramai dan sepi. Ilustrasi nya market forex itu ibarat kolam renang. Disaat kolam tersebut kosong tidak ada yang berenang maka air nya kelihatan tenang. 

Tetapi disaat orang2 mulai mencebur ke dalam kolam maka akan terlihat air bergelombang2. Waktu perdagangan forex ada kala nya pasar kosong (rata2 para penggerak market biasanya melakukan wait and see) tetapi pasar tetap buka. 

Dan ada bulan-bulan tertentu dimana pengunjung benar-benar ramai dan terkadang over kapasitas.

Wawasan tentang waktu teramat penting untuk bertrading forex. Sesuai dengan karakter mata uang masing-masing kapan dia akan bergerak naik dan kapan bergerak akan turun.

Sesi / Market     Jakarta GMT + 7                EST         GMT

Sydney Buka      04.00 pagi            5:00 PM                10:00 PM

Sydney Tutup    12.00 siang          2:00 AM               07:00 AM

Tokyo Open       06.00 pagi            7:00 PM                12:00 PM

Tokyo Close        14.00 siang          4:00 AM               9:00 AM

London open     14.00 siang          3:00 AM               8:00 AM

London close     22.00 malam       12:00 PM             5:00 PM

New York open 19.00 malam       8:00 AM               12:00 PM

New York close 03.00 pagi            5:00 PM                10:00 PM

Terdapat perbedaan waktu diatas apabila terjadi perubahan iklim waktu summer dan winter. Terima kasih semoga bermanfaat,..................Salam trader.

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Learn How to Analysis Forex For gain.

Essentially forex trading is the art, in this case is the art of analysis. How? Obviously very able, each person / individual can produce art / style of trading different reply. In a sense even if you sit under the same person, not necessarily the result is the same for each of his followers. And not necessarily the same even with the teacher himself.

Capabilities and expertise (skills) of analysis, will be one of the main factors of success or failure of a person in the world of forex trading. Forex Analysis who will either be able to always be consistent / repeated profit, and able to survive in the long-term if possible and for all.

Well let’s start learning the basics of analysis in forex trading. Broadly speaking there are two basic types of approaches / analysis of common reply.

1. Fundamental analysis.

2. Technical analysis / technical.

Which is best? do not get stuck for the favored one. And wasting time searching for articles where a better comparison. Although the above was written in the No. 1 fundamental analysis, this does not make it better than the technical. So let’s review a leisurely one by one, and then put back together for the benefit of the size of the two.

Fundamental analysis

Fundamental analysis is a way of seeing the market through economic, social power, and politics that affect supply and demand. In other words, you look fine day economic conditions, or conditions who sucks. The idea behind fundamental analysis is that if the economy of a country properly, then their currencies would also be nice. And resulted in the trust who rose from the other countries of the currency.

For example, the value of the U.S. dollar continues to rise because the U.S. economy strengthened / improved. The consequences could be even higher interest rates to control inflation, the effect is the value of the dollar will also continue to strengthen.

Above is one example illustrates how the fundamentals can affect currency values. In the articles on this site you can find any kind of news / factors that include the fundamentals as well as the factors / news everywhere of the most influential. For now we take the base line, that fundamental analysis is a way to analyze the market through economic conditions of countries concerned.

Technical Analysis

Technical analysis is the study of price movements in terms of mathematical analysis. From here we can imagine there will be charts or calculations / mathematical formulas in it. With historical data and price movements are now imaginable then analysis can provide a projection on where the price will go up, down, or turn around. Or it could be called ‘trend’ is sought in the technical analysis. By identifying trends or patterns correctly, will help you find the best trading opportunities.

People say that in the technical analysis TREND is your friend. If you are able to properly recognize the trend your friend, then he will give money (profit) to you.

Up here you so discouraged? Well I’m not good at math, I would be weary to use technical analysis, do not imagine I must be dizzy see the numbers and formulas ..

Take it easy:) .. patient to follow and read our articles. Not as complicated as who imagined .. And believe me it’s not worth the loss of your responsibilities will reply (later in the trading) compared with the well known technical analysis.

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Forex Training for success: Part-2

The many available resources and tools to train yourself

There are many free tools and resources available in the market, particularly

online. Among these, you will find:

Charts

There are many kinds of charts (see Chapter 6, Technical Analysis). Start with

simple charts.  Try to identify trends and major changes, and try to relate

them to technical patterns as well as to macro events (news, either financial

or political). Make an effort to determine the general magnitude of each

change on the chart (meaning: what is the $ value of the change, if you were

trading at that point).

Guided tours

Most platforms provide guided tours, demos or tutorials, either online or via

download.

News / breaking news

Keep abreast of world news. Read all the headlines, particularly those directly

related to Forex. Check the impact of such news, if any, on the charts.

Forex outlooks

Read daily/weekly outlooks posted on Forex or general financial sites. Many

include alerts to upcoming reports and events such as market indicators and

interest rate decisions.

To read today’s professional outlook and view detailed charts, join Easy-

Forex™ (registration is quick and free, no obligation):

Forecasts

Read forecasts, some of which are available free of charge. Bear in mind that

forecasts and predictions are made by people, none of whom can guarantee

the occurrence of future events…

Indices

Follow the indices of the leading markets (e.g. Dow-Jones, NASDAQ; Nikkei;

etc.). Compare them to the changes in the Forex market, as well as to

changes in particular currency pairs.

Economic indicators

Pay attention to the release of economic indicators (for example – the

monthly unemployment rate in the USA), and try to identify their impact on

the market in general, and on specific currency pairs in particular.

Glossary

Don’t hesitate to browse Forex glossaries, which are offered free on many

platforms. A given word may have different meaning as it relates to Forex and

to the terminology used by the Forex market participants.

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