Saturday, April 9, 2011

Market Relationships in Forex

As the largest of financial markets, Forex is a series of interrelationships between the different markets like the commodity market, stock market and the bond market. These markets usually affect each other. For example, the value of the dollar can be affected by the U.S bond market. You must understand the interrelationship between these financial markets if you want to be a successful trader. You can use the situations in one market to predict the expected situation in the other.

Participants in the bond markets include individual investors, institutions and governments. Governments are the biggest participators because bonds are very risky. Most Forex traders want to invest in bonds that are doing well and those offering the best interest rates.  By seeking a good mPowerFx Rreview to help you decide where to invest may be your best move. The economies of such governments must also be stable, and this is the reason they do well. Once you have identified the governments that are doing well, you can easily decide which currencies to buy and which one to sell. With this, you can see that the performance of the bonds and determine the performance of the currency markets.

Another important relationship is stock market and Forex markets. The concept between these two can be summarized as follows. Money flows in when stocks are doing well, and it flows out when stocks are performing poorly. If stocks in one country are doing better than those of another, traders will move their money to the country where stocks are doing well.
Markets interrelationships are important considerations in Forex trading because they can act as indicators of the market’s performance.

Friday, January 21, 2011

Charts and the Patterns Made by CandleSticks

Making use of candlestick charts can offer you more data than a bar chart can. This is because candlestick charts include all the same data as bar charts, but also endeavor to track market sentiment as well. Even greater, candlesticks can be color coded so that changes in price can be recognized more quickly. A white candlestick shows that a price has raised, while a black candlestick reveals that prices depleted. Making use of candlesticks is a rapid and successful way to look at currency price charts. Forex traders appreciate using candlesticks, but they can be used for practically any financial instrument.
Candlestick charts will not eliminate any adaptability when it comes to displaying price differences over time. They show adjustments instantly and are less complicated to use than conventional charts. Due to the fact that these charts have been about for a long time, patterns that reveal price changes have been refined.
It is important to keep in mind that charts should represent the appropriate time frame with the Elemental Trader. Day traders must look at lesser increments of time than position traders. The greatest thing about charts is that patterns are universal irrespective of time frame. The proven patterns go beyond time; a sell signal will be the exact same regardless of the time frame you look at.

Wednesday, September 22, 2010

Yesterday the federal government decided to leave interest rates at the same level. When the announcement came out there was not too much volatility against the US dollar, however the dollar has falling against most currency pairs this morning.
The dollar has fallen sharply over the course the day in reaching 1.34 against the euro which is the strongest level the euro has seen since April. The dollar is also weakened against the Yen and the pound. The dollar is also reached 2008 lows against the Swiss franc. Obviously the dollar is pretty weak at this moment to the fact that interest rates have been staying stagnant for quite some time. This shows that the recession continues and there is no need to push the dollar up any time soon. Usually when this happens gold will move up handsomely and most investors will put their money there.
The Canadian dollar weakened sharply after unexpected decline in retail sales. The US dollar did bounce back to 1.0190. The sudden drop in retail sales for Canada shows that their economy is in a bit of a struggle as well. The Aussie dollar also settled to fresh two-year highs based on some news and events that have occurred throughout the day. Everywhere you look it appears the US dollar is weak. Everything started falling in 2008 as well when the dollar was starting to go against everything else and not reaching new highs.
Some pretty crazy Forex scam news that occurred yesterday. Federal prosecutors had alleged Bradley D Eisner was part of a scheme to defraud investors in razor FX. In a total of $66 million Ponzi scheme has been discovered in the spot foreign currency exchange market. I don't understand where these guys get their balls from, but it's absolutely absurd that they think they can get away with this, stuff. It's guys like this that makes you not want to trade sometimes and it puts a real big damper on everything else.

Friday, September 17, 2010

The Power of Trading

Working for yourself is a lot of people's dream come true.  As a trader, you can have this freedom while making a lot of money.  However, you need to keep in mind that as a trader, you can lose a lot of money as well.  Following strict guidelines will be the number one thing you need to do.  Money management is critical to maintaining a certain lifestyle as well.

What market to trade is also important.  Do you want to trade stocks, Forex, Futures?  There are a lot of options in this area.  Finding what works for you is most important.  We like Forex because you are able to trade markets 24-5 days a week and the account minimums are a lot lower then say the $25,000 you need for a day trading account for stocks.

Finding a good trading strategy is also important if you want to be successful.  Until you are ready to go on your own, you will want to work with other people's ideas and build off of them.  Which method to follow will be up to you, but there are a lot of them out there. 

The Oracle Trader strategy is a great way to get started in Forex.  You have access to the best time to trade, which is news time.  News trading is fast and serious.  OracleTrader allows you to access these markets with precision.  You can make a lot of money trading this way for sure.  All in all you are in good hands when you use this software.

Wednesday, September 15, 2010

Success in News Trading

How do you take advantage of the fast Forex markets during news time? With so many currency pairs that each retail broker offers how do you determine which pair to trade? What it comes down to is finding a currency pair that likes to move significantly around news time. This happens on many of the currency pairs but sticking one or two different pairs is your best bet. Depending on the news event you are facing, for example, nonfarm payroll you most likely want to trade a US dollar currency pair. However, if you are facing a European or Great Britain news event such as euro retail sales, you would want to trade a euro pair or Great Britain pair.

So many traders would like to trade the Forex market during news time. If you don't understand how to trade the news, then your potentially taken a trade that can work against you. In trading, you need to have the advantages on your side and not go against the big money traders. News trading will either make you a lot of money or or you may lose a lot of money. Knowing which news event to trade and how much to trade is also very important around news time. A lot of people just get into a trade based on the news numbers before or after the release time. There are so many times we've entered a long trade only to see it go up in your favor and then drop significantly the other way.

Within the last five years a product called Oracle trader has been under development. This product allows you to predict the market at the moment news release comes out. This takes away all the guessing in trading. You are predicting which direction the market will move milliseconds before the trade is triggered. This is a huge advantage to all the other news traders out there. You also have access to this information quick enough to get your order filled and make some significant profit. Now there is a learning curve to trading the news, but after watching a few events you should be in the right spot.

Which news events to trade?

Although there are hundreds of news releases each month, you are better off sticking to the main news releases you know will trigger a trade. These events include the nonfarm payroll, Canadian unemployment number, US retail sales, Great Britain retail sales, and a few others. Don't try to force trades on news events. Let the trades come to you and the success rate will increase over time. If there's something you don't understand about news trading we recommend you read several different articles online to help you understand what it is all about.

After a few months of news trading you will soon understand how powerful it is. You may be disappointed that there might not be any trades in a certain period of time, but that's the beauty of this trading style it will keep you away from harm. It will only put you in trades where it knows it has the potential for winning. Oracle trader will allow you to access the markets at the best points in time with the least amount of risk.