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Oil Pares Most Of Daily Losses, Closes Slightly LowerCrude oil closed modestly lower on Tuesday but rebounded off of its lows of the session. Traders looked ahead to Energy Information Administration data, which is expected to show another build in inventories. Light sweet crude for May delivery fell 18 cents to end at $53.92 per barrel. Prices slipped as low as $52.45 earlier in the ....
Gold Drops For Third Straight Session
Gold prices closed lower for a third straight session as the dollar amid hopes government plans to help the struggling economy will reduce the metal's hedge appeal. April gold finished the session at $923.80, down $28.70 for the session. Prices touched as low as $920.00 earlier in the day. The dollar firmed up a bit versus the euro Tuesday, ....
Dollar Steady Versus Most Majors Tuesday
The dollar continued to edge lower versus the resurgent sterling but was steady against most other majors on Tuesday in New York, as traders paused to hear from a trio of top officials regard the government's role in saving insurance giant AIG. Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner will appeared before a House Financial ....
Tuesday, March 24, 2009
Usd rebound on retrieving risk appetite
Tue, Mar 24 2009, 22:12 GMT
Dollar rebound Tuesday, after the Dow Jones Industrial Average retreated more than 100 points after rallying a day earlier, leading investors back to the major funding currency of their riskier bets, the dollar. Only Gbp sustained the overnight rally that reach a 6 week high against dollar, and stayed higher on the day. Euro fell as low as 1.3420 by the end of the American session and remains under pressure, as the ECB members change tone increasing chances of a rate cut for the euro zone next April 2nd.
FED’s plan to end recession and avoid risk of deflation, will begin tomorrow, as the Federal Reserve is going to be pumping U.S. dollars into the market buying long-term Treasuries in an attempt to drive longer-term interest rates. The first operation of $300 billion is aimed at notes maturing from February 2016 to February 2019, and in the coming days, the central bank plans to buy debt maturing between March 2011 and February 2039, according to the tentative schedule. If the plan works the U.S. will be leading the global economic recovery, gaining own strength and detaching forex market from stocks.
Tue, Mar 24 2009, 22:12 GMT
Dollar rebound Tuesday, after the Dow Jones Industrial Average retreated more than 100 points after rallying a day earlier, leading investors back to the major funding currency of their riskier bets, the dollar. Only Gbp sustained the overnight rally that reach a 6 week high against dollar, and stayed higher on the day. Euro fell as low as 1.3420 by the end of the American session and remains under pressure, as the ECB members change tone increasing chances of a rate cut for the euro zone next April 2nd.
FED’s plan to end recession and avoid risk of deflation, will begin tomorrow, as the Federal Reserve is going to be pumping U.S. dollars into the market buying long-term Treasuries in an attempt to drive longer-term interest rates. The first operation of $300 billion is aimed at notes maturing from February 2016 to February 2019, and in the coming days, the central bank plans to buy debt maturing between March 2011 and February 2039, according to the tentative schedule. If the plan works the U.S. will be leading the global economic recovery, gaining own strength and detaching forex market from stocks.
Forex Market Hours
When to trade and when not to
Forex market is open 24 hours a day. It provides a great opportunity for traders to trade any time of the day or at night.However, although it seems to be not very important at the beginning, the right time to trade is one of the most crucial points to be successful in trading at the forex market.So, when should one consider trading and why?
Forex trading hours, trading time:
New York opens 8:00 am to 5:00 pm
EST Tokyo opens 7:00 pm to 4:00 am
EST Sydney opens 5:00 pm to 2:00 am
EST London opens 3:00 am to 12:00 noon
EST And so, there are hours when two sessions are overlapped:
New York and London — 8:00 am — 12:00 noon
EST Sydney / Tokyo — 7:00 pm — 2:00 am
EST London / Tokyo — 3:00 am — 4:00am
EST For example,
trading EUR/USD, GBP/USD currency pairs would give good results between 8:00 am and 12:00 noon EST when two markets for those currencies are active. At those overlapping trading hours you'll find the highest volume of trades and therefore more chances to win in the foreign currency exchange market.
Forex market is open 24 hours a day. It provides a great opportunity for traders to trade any time of the day or at night.However, although it seems to be not very important at the beginning, the right time to trade is one of the most crucial points to be successful in trading at the forex market.So, when should one consider trading and why?
Forex trading hours, trading time:
New York opens 8:00 am to 5:00 pm
EST Tokyo opens 7:00 pm to 4:00 am
EST Sydney opens 5:00 pm to 2:00 am
EST London opens 3:00 am to 12:00 noon
EST And so, there are hours when two sessions are overlapped:
New York and London — 8:00 am — 12:00 noon
EST Sydney / Tokyo — 7:00 pm — 2:00 am
EST London / Tokyo — 3:00 am — 4:00am
EST For example,
trading EUR/USD, GBP/USD currency pairs would give good results between 8:00 am and 12:00 noon EST when two markets for those currencies are active. At those overlapping trading hours you'll find the highest volume of trades and therefore more chances to win in the foreign currency exchange market.
FOREX TRADING SYSTEMS
Where to find a good Forex trading system?
If you want to be consistently successful in Forex, you need a trading system.Beginner traders as well as experienced investors always search for the newest more efficient ways to trade and profit in Forex.
Why there is so much talk about having a Forex trading system?
- Without a trading system you won't be able to analyse what you did right and what you did wrong.
- Without a trading system your trading preferences will change all the time: every new trade could easily have different reasons behind it.
- Without a trading system you can be late on entries due to constant hesistation as a result of battling with your intuition or a sudden second opinion.
- Without a trading system you'll have more doubts about the best time to exit a trade or the best place to keep a protective stop.
- Without a trading system you cannot trade consistently and demand a disciplined trading from yourself.
- Without a trading system you cannot fully work out your money management and risks. - Without a trading system you'll be prone to fear of losing and every time you would need to regain the confidence.
All-in-all it is difficult to trade Forex without a trading system.
-So, you've found a good Forex trading system. Now what? Most obviously you'll begin testing it on your Forex demo account.But how about improving it? Does your new trading system have everything for you to trade currencies successfully? Stay tuned, as we will talk about "How one can improve any Forex trading system."
If you want to be consistently successful in Forex, you need a trading system.Beginner traders as well as experienced investors always search for the newest more efficient ways to trade and profit in Forex.
Why there is so much talk about having a Forex trading system?
- Without a trading system you won't be able to analyse what you did right and what you did wrong.
- Without a trading system your trading preferences will change all the time: every new trade could easily have different reasons behind it.
- Without a trading system you can be late on entries due to constant hesistation as a result of battling with your intuition or a sudden second opinion.
- Without a trading system you'll have more doubts about the best time to exit a trade or the best place to keep a protective stop.
- Without a trading system you cannot trade consistently and demand a disciplined trading from yourself.
- Without a trading system you cannot fully work out your money management and risks. - Without a trading system you'll be prone to fear of losing and every time you would need to regain the confidence.
All-in-all it is difficult to trade Forex without a trading system.
-So, you've found a good Forex trading system. Now what? Most obviously you'll begin testing it on your Forex demo account.But how about improving it? Does your new trading system have everything for you to trade currencies successfully? Stay tuned, as we will talk about "How one can improve any Forex trading system."
Forex Fundamental Analysis. Basics
What is fundamental analysis?
Fundamental analysis in Forex is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively.
What is economic calendar?
Economic calendar is created by economists where they predict different economics figures and values according to previous months. It contains next data: Date — Time — Currency — Data Released — Actual — Forecast — Previous
Whose speeches to keep an eye on?
Chairman of the Federal Reserve Bank of USA, Secretary of the Treasury, President of the Federal Reserve Bank of San Francisco and so on. Speeches of those prominent people are watched closely by traders
What are the most powerful figures that move Forex market?
Interest rate Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.
Employment situation
Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency. Trade balance, budget and treasury budget A country that has a significant
Trade Balance
deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.
Gross Domestic Product (GDP)
GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity. A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.
Fundamental analysis in Forex is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively.
What is economic calendar?
Economic calendar is created by economists where they predict different economics figures and values according to previous months. It contains next data: Date — Time — Currency — Data Released — Actual — Forecast — Previous
Whose speeches to keep an eye on?
Chairman of the Federal Reserve Bank of USA, Secretary of the Treasury, President of the Federal Reserve Bank of San Francisco and so on. Speeches of those prominent people are watched closely by traders
What are the most powerful figures that move Forex market?
Interest rate Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.
Employment situation
Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency. Trade balance, budget and treasury budget A country that has a significant
Trade Balance
deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.
Gross Domestic Product (GDP)
GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity. A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.
SUCCESS in FOREX
Tip 1. Gamblers go to casino.
-All unproved, spontaneous actions in Forex trading — are a part of pure gambling. Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...
Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account!
-Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline.Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.
Tip 3. Go with the trend!
-Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.
Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in.
-It gives the bigger picture of market price movements and so helps to clearly define the trend.For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements.If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper.Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.
Tip 5. Never risk more than 2-3% of the total trading account.
-One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in the money management approach.To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.
Tip 6. Put emotions down. Trade calm.
-Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning. Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.
Tip 7. Choose the time frame that is right for you.
-Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames.On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.
-All unproved, spontaneous actions in Forex trading — are a part of pure gambling. Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...
Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account!
-Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline.Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.
Tip 3. Go with the trend!
-Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.
Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in.
-It gives the bigger picture of market price movements and so helps to clearly define the trend.For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements.If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper.Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.
Tip 5. Never risk more than 2-3% of the total trading account.
-One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in the money management approach.To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.
Tip 6. Put emotions down. Trade calm.
-Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning. Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.
Tip 7. Choose the time frame that is right for you.
-Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames.On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.
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