By James McKee – At its core the market is comprised of people, not numbers or goods or even units of currency, the market is a living entity in much the same way that its parts (people) are living entities. This is why large companies fear unions, and why companies spend huge amounts of money to address the needs of their individual employees, individuals make decisions (good or bad) and the market reflects them through stock price, the price of goods, and of course the value of currency. Recognizing the impact of not only individuals but that the status of various companies and even their host country is critical in assessing the stability of a given stock or currency at any given moment.

Currently Japan and China are a great example of a eminent global market shift due to political tensions, a couple weeks ago a Chinese fishing boat captain collided with Japanese coastguard vessels and was arrested. The Chinese government contested the arrest and threatened Japan with political action if the man was not released. Several days later the ship captain was released into Chinese custody. Despite his release Chinese officials are still posturing against Japan politically and have recently arrested (and subsequently released) 3 Japanese chemical disposal experts who were in China disposing of chemical weapons left there by the Japanese during WW2. One Japanese employee remains detained and China has begun threatening to place an embargo on Japan in regard to precious and rare minerals, which are used in the manufacturing process of many Japanese automobiles and electronics.

Such an embargo with have an immense ripple effect on not only many businesses in Japan, but retail outlets around the world and particularly in America. The implications for forex exchange rates are open to interpretation but it is clear that the US dollar and Japanese Yen may be effected in ways which would depress their value if the Chinese embargo moves forward. American imports from Japan would decrease and the availability of many US goods including hybrid cars, many electronic devices and other unknown components of devices I can’t begin to speculate on.

Information such as this is presented daily not only online but in newspapers as well, having the foresight to connect the dots and realize that being in the know in regard to current events is critical in the stock market as well as in the forex exchange market. Even though it might seem boring reading that newspaper and dropping in on the Wall Street Journal is truly the first line of defense against business related ignorance. So don’t hesitate to pick up the newspaper and find out where your favorite stock or currency might be standing, never hesitate to think outside the box and remember that if you observe an oncoming trend or series of events before someone else does it doesn’t mean that you’re being unconventional or taking a risk…it means that you have discovered something valuable, and the best strategy is the one you do NOT share with others (hence the reason no one else has mentioned it).

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. It is vital to remain in the loop where new technologies are concerned, make sure to stay up to date and aware of forex exchange rates and developments

By James Woolley – One of the first things people learn about when they enter the world of forex trading is technical analysis. The reason why is because by using specific technical indicators you can create your own profitable trading system and use these indicators to find lots of high probability set-ups.

I should start by explaining what technical indicators are first of all. Quite simply they are basically just mathematical calculations based usually on price and/or volume. The calculations are derived from the past behaviour of a currency pair and are used to predict the future price movements of this pair.

The key word is ‘predict’ because they are not foolproof by any means. They are only there to provide you with guidance. However when you combine a few of these indicators you will find that when they all indicate that either an upward or downward movement is most likely to occur in the near future, you get plenty of high probability set-ups where the odds are in your favour.

It’s up to you to decide which indicators you wish to use, but it’s important that you don’t go overboard and use too many. If you do, you will simply end up getting lots of conflicting trading signals, and therefore very few opportunities to place a trade with any confidence.

The best strategy is to test out different indicators on your chosen time frame and choose a few which seem to offer the best results. They should hopefully produce the same signals at approximately the same time and help provide you with more than enough high probability set-ups.

Indeed once you have produced some kind of trading system that incorporates a few of these technical indicators, your subsequent success or failure is then often determined by how well you manage your money. In an ideal world you want to cut your losing trades early using a strict stop loss and let your winning trades run for as long as you can.

I personally like to close half the position for around 40 or 50 points, and then let the second half of the position run for as long as possible. If you move your stop loss to break-even after you close the first half of the position, you’re essentially creating a free trade for yourself, which is a great position to be in.

Anyway the point is that technical indicators can be an invaluable tool for any forex trader. They are not 100% accurate at predicting future price movements, but when a few of them are used in conjunction with each other, they can provide lots of decent trading opportunities where the odds of success are firmly in your favour.

About the Author

Click here for more information about a forex course that will teach you all the basics of currency trading, and to read a full review of Forex Nitty Gritty.

By ProIndicators – The most popular trading software is produced by MetaQuotes and is known as Metatrader4. The reason indicator mt4 is most popular and sought after software are numerous and the article will try to explain why it is considered so much popular. In today’s market traders as well as brokers both use Metatrader4 which in short form we can say as mt4. Serious forex traders use this platform because it is considered the best in the market and therefore most of the brokers provide the facility of interface with Metatrader4.

The major benefit of using indicator mt4 for individuals is that it is totally free for them. The company MetaQuotes does not take a penny from the individual traders but it covers its cost through the brokers, because this software is so good that need to have special software interface for their computers through which their different clients are able to use indicator mt4 from home. Moreover, the indicator mt4 comes with an interface that is unique. The interface allows you to access tools and 50 built-in indicators. Many people argue that the best advantage which indicator mt4 is its ability to trade automatically.

What automated trading means is that even if you are not present the software will still trade? All you need do is create rules and let the software do the work. Not only just some basic rules but also complex mathematical trading system. If you are not capable of producing such complex rules you can still easily find them. You will come across many people who have made their own trading systems that you can use as your own. Moreover, in order to see if these systems would work, you can test it with historical data to see if it’s profitable. This testing is known as “backtest”.

One of the recent innovations in the last few years is the Forex EA’s. Many people including traders, former hedge fund managers and Ivy League graduates have tested with metatrader4 so that they can produce automated systems that have all the features. Such systems have been produced and they are profitable at short as well as long run. Forex Expert advisors, EA’s, boot and robots are such programs and they now have become very common and are being used at an individual level.

At present, many traders do want create their own systems instead they rely on systems created by someone who has the ability and knowledge of trading to use in their own trading. People who are best in their field usually create theses robots. What this has done is that for individuals who do not have the ability to make use of complex mathematical trading system but still can use these systems by plugging it in indicator mt4 and use it through the software. Another reason why people need such programs is that market conditions change so rapidly that unless or until you don’t have an automated complex system to work with you won’t do well as a trader. This automated system helps to do the trade faster and easier.

About the Author

ProIndicators.com is providing high precision TradeStation. The indicator mt4 comes with an interface that is unique.

By Taro Hideyoshi – The winning traders are not ones who have never lost. To be a winner in trading game, you have to think in terms of long run. Hence, if you want to be one of winners, you have to find trading methods that work over the long run what is known in gambling as an edge.

By thinking in terms of long run, one question that you ask yourself is “What happens if I keep doing this?” If there is more chance to win the game, it is a positive expectation game while the negative expectation is vice versa. The negative expectation game is the one that you have more chance to lose.
An edge refers to one’s systematic advantage over an opponent. Without an edge in games of chance, you will lose money in long run.

So, what about your trading? Consider your trading method, what happens if you keep using it? If it will give you profits over long run. That means you are trading with an edge.

To find your trading edge, you need to locate entry points where give you greater than normal probability that market will move in the same direction with your trades and within your desired time frame. Besides entry strategy, as I have always mentioned that good trades also comprise of exit strategy. Therefore you have to pair the designed entry with an exit strategy in order to maximize your edge.

Entry strategy must be paired with appropriated exit strategy. Thus, trend-following entry strategies can be paired with many different types of trend-following exit strategies. Also, swing trading entries can be paired with many different types of swing exit strategies and so on.

Elements of an Edge

To get more understanding of an edge, let’s dig further into the components that make up the edge for a trading system. The following are the elements of an edge described by Curtis M. Faith in his book “Way of the Turtle“.

Portfolio selection: The algorithms that select which markets are valid for trading on any specific day

Entry signals: The algorithms that determine when to buy or sell to enter a trade

Exit signals: The algorithms that determine when to buy or sell to exit a trade

It is possible for an entry signal to have an edge that is significant for the short term but not for the medium term or long term. So, find the signals that give you an edge to your trading styles, personality and money management.

About the Author

Taro is an experience trader who trades in stocks, futures, forex. He strongly focuses on technical analysis, trading systems and money management.

If you would like to find more articles on MetaStock Tutorials, MetaStock Formulas, Trading Systems and Money Management. Please go to MetaStock Trading System.

By Daniel Shaw – Trading on Forex market becomes more and more popular today. There are many new traders who try to obtain the profession of a trader. However as in any other sphere of activity the proficiency in knowledge and skills is possible only with a special education. There is a huge selection of courses and seminars over there that provide the traders with necessary knowledge of online trading. Various Singapore brokers offer a Forex trading training in different forms convenient for the students: demo trading, attending lectures, online courses, webinars, classes or distance learning with the offered material.

Current full-time education in the Forex market usually consists of two parts: a theoretical part and practical exercises. The theoretical part includes lectures on the basics of economics and techniques directly applied to the analysis of financial markets. Students that have the economic education, this course does not seem difficult. It will only deepen their knowledge and get familiar with the specifics of the Forex market. Traders who don’t have any economic knowledge may find this course a little complicated, since in order to work professionally on Forex, you must have skills in market’s analysis. But economic background is not necessary for a successful Forex trading. You need to have a common knowledge, as there are many trading techniques based only on technical analysis that almost don’t involve the economic situation.

To sum it up, the theoretical part of the training course usually includes the basic concepts and principals of Forex market functionality and structure, fundamental techniques of economic analysis of the market and also the basics of the technical analysis of the Forex charts. Some courses also include the lectures about futures, shares, commodities and stocks. During the study of basic concepts of the Forex market, the students are introduced to the history of the currency market, the subjects and objects of trading, see the examples of transaction and learn how to make deals following the rules of a successful trading in Forex market.

Learning of the technical analysis involves working with the trading terminal. A teacher demonstrates the possibility of finding certain patterns in price movements in the currency. Students also become familiar with the principals of the trading terminal and the main technical indicators, also learn to make calculations required for the implementation of technical analysis.

Practical exercises help students learn to apply their knowledge to the trading: open and close of the trading positions, determine a good moment to enter the market and leave it, to use technical indicators, take control over emotions, money management and risks. The teacher monitors the actions of the students and makes necessary recommendations.

Of course taking a Forex trading course doesn’t guarantee you the full success on Forex trading and doesn’t make you a professional trading yet. You need to get a necessary experience to feel confident on the market and make successful trades. But the course gives you the necessary knowledge and the basics that will help you avoid many mistakes on trading Forex.

About the Author

Daniel Shaw is a Forex Trading professional. Visit his site Singapore FX to get more useful information and tips on how to tradeForex in Singapore.

AUDUSD remains in uptrend from 0.8771 and the rise extended to as high as 0.9916 level. Support is at 0.9540, as long as this level holds, uptrend is expected to continue and next target would be at 1.0100 area. Only break below 0.9540 could indicate that the rise from 0.8771 has completed, then the following pullback would bring price back towards the uptrend line on daily chart.

For long term analysis, AUDUSD is in uptrend from 0.8066, further rise to 1.1000 area is still possible in next several weeks.

Weekly Forex Analysis

By James McKee – Now that you have a basic understanding of the words used in the market I will go ahead and share with you some slightly more advanced terms used to convey events in the currency world and specific items or systems associated with forex trading. There are many electronic methods utilized by traders every day to make their activities more efficient and effective that every trader should be aware of. Many of these things are completely free to use but again, you must first understand something before you can utilize it, in this article I aim to do just that!

Candles- One of the very first things a new Forex trader will notice in the market when they begin to get their feet wet is the esoteric data flowing around on various charts. Forex charts can be a bit intimidating because of the colors, units and overall composition being presented to the trader. The real key to understanding this data is the same as any thing else you’ve ever learned, one step at a time. The first step in understanding a candlestick forex chart is the candle, a candle is a block with a line coming out of the top and bottom which represents a period in time which either gains or losses for the currency pair in question. Most often gains will be represented by green candles while losses will be represented by red ones. As you will see looking at just about any chart utilizing candles gains and losses are numerous and go back and forth often, but it is the overall arc you need to watch and follow in order to come out on top. A candlestick chart is just one type of chart used in the Forex community, bar charts are also very widespread.

MT4- One of the most popular automated trading systems currently being utilized by forex traders is MT4 or Meta Trader 4. However where time is money you will notice that traders love to use abbreviations, pseudonyms or whatever else they can to save time when discussing something market related or otherwise. MT4 is a useful tool to have but by no means is it a silver bullet and as with every thing else you should approach this software with caution and an open mind.

EA- This is something that should raise the hairs on your neck and always bring about extreme critical thinking and caution, EA or “expert advisor” is a type of software which advises you on which trades to make and when. While some have proven to have limited success all too often the real case using an EA is that you not only wasted money on bad software but lost some listening to it. Is it possible that an EA out there will work for you? Sure it is, but it is not likely and therefore you should always remain skeptical when you see someone refer to having an EA that will fix all of your problems. Caveat Emptor.

Please feel free to ask me for any clarification regarding the information and above, and do not be afraid to visit forex forums for advice.

About the Author

I am a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. Understanding and utilizing forex charts is key to success!

By Daniel Shaw – Online trading is a performance of buy and sale transactions of foreign currencies in the internet. When trading some traders consider the trading as hunting, where the online Forex market is a dangerous beast with horns and teeth that can take all your money and kill your trading positions. Scalping can hardly be called hunting a wild beast, it is more fishing than hunting. This strategy gives a profit from many transactions in forex market that sometimes last no more than a few minutes.

Thus, unlike the traders who operate with large funds and ready to wait for a long time to make profit, scalpers can trade with a small balance and earn large number of minute deals. In scalping every trade may earn you just few pips. For that reason online traders must complete as many transactions as possible to have a big profit. For a successful scalping, traders must learn to trade with minimal losses. Lets discuss some trading approaches that make scalping less risky.

There are few types of scalping trading method: time trading, trading with a trend and trading against the trend. Time trading is a trading strategy where a fifteen minute chart is using. The distinctive feature of this method is that the profit is fixed very quickly, but the deal rarely lasts more than a minute. Seeing a moment of the breakdown, a trader enters the market on the level of few pips above the maximum or few pips below the minimum of the price. Once the price reaches your position, you must close it once you have earned 1 pip including spread. Please notice that if the spread of this position is 3 pips so your total gain must be 4 pips in order to be in profit.

The next type of scalping trading method is called trading against the trend. This online trading is also called gathering cents where the trader is taking one-two pips of profit in each position. Every trend has the moments of so called correction and a small wave against the trend. Study the candlestick chart and look for the bullish and bearish candles in the trend. This strategy is recommended to be applied during the first and last hours of trading in a specific zone.

The next most popular type of scalping is trading with a trend. This method of scalping is applied during the trend’s rolling back. When the market is going up, you need to buy when it rolls back down, if the trend is downward, then you have to sell on a rollback up. It is better to use the 10 minute candlestick chart for this strategy and a moving average with a period of 10. You close the position once it reaches 2 pips of profit.

In this article we have shown some most simple and popular methods of scalping. Online traders who use scalping must act quickly and decisively. But also must be prepared for losses and understand that scalping doesn’t let you earn much at a time. You must collect your profits little by little.

About the Author

Liked this article? Visit our website Singapore Forex to find the answers on most of your Forex trading questions and review the most popular Singapore Brokers.

By CountingPips.com

The U.S. dollar has been mostly weaker in forex trading today against the other major currencies following today’s government employment report. The British pound, Swiss franc, Japanese yen,New Zealand dollar, Australian dollar and Canadian dollar have all gained ground versus the American currency today while the euro has gained slightly since the report but trades mostly unchanged on the day versus the greenback.

The US stock markets, meanwhile, have been trading higher today with the Dow Jones industrial average increasing by over 45 points and the Dow briefly reached the 11,000 point mark for the first time since May. The NASDAQ has also increased by over 10 points and the S&P 500 is higher by over 4 points at time of writing.

Oil has risen by $0.94 to the $82.66 level while gold has continued its upward trajectory with an increase by $10.30 dollars to trade at the $1344.80 level.

The U.S. Nonfarm Payrolls data released today showed that jobs declined by more than expected in September as the private-sector added jobs and government hiring continued to decline. The Department of Labor nonfarm payrolls report showed that U.S. payrolls lost 95,000 jobs in September while the unemployment rate remained unchanged at 9.6 percent. September was the fourth straight month that the nonfarm payroll report has declined although private companies continued to add workers for a ninth straight month with a rise of 64,000 workers.

August’s employment data was revised to a loss of 57,000 jobs after originally showing a decline of 54,000 and follows a revised decline of 66,000 jobs lost in July.

The September report came in worse than the market forecasts that were expecting a loss of approximately 5,000 jobs and beat the expectations that the unemployment rate would reach 9.7 percent.

The decline in jobs was led by the loss of 159,000 workers in government jobs in September as temporary census government workers fell by 77,000 for the month. This follows decreases in government hiring in July by 183,000 workers and in August by 150,000 workers.

The goods producing sector saw a decline of 22,000 workers in September as manufacturing lost 6,000 jobs in construction jobs fell by 21,000 workers.

The service-providing sector created 86,000 total jobs in September with education and health services adding 17,000 workers while professional and business services also added 14,000 jobs. Retail trade added approximately 6,000 jobs for the month while leisure and hospitality jobs increased by 38,000.

EWI’s Wayne Stough adds another Flash opportunity service to the line-up: ETFs

By Elliott Wave International

Every trader or active investor at times wishes they could pick the brain of a pro that has “pulled the trigger” on real-money trades before.

EWI Director of Analysis Wayne Stough is one of these pros. For several years, several times per month, he’s been alerting his Flash service subscribers to opportunities in futures markets.

And now, there is a new addition to the Flash service line-up: ETF Opportunity Flash. We caught up with Wayne in his office and asked him a few questions:

Q: What method do you use when looking for high-probability trade set-ups?

Wayne Stough: My main approach is The Elliott Wave Principle. I look for clean, precise wave counts — usually ones that other analysts can confirm, so there is a general consensus on market direction. Once the market meets my other criteria for a high-confidence trade, I send out a Flash recommendation to my subscribers.

Q: How do you define a “high-confidence” trade?

WS: That’s a good question, because no market forecast is ever guaranteed, whether you use Elliott or some other forecasting method. Having said that, there are definitely moments when probabilities (or odds, if you will) strongly suggest a particular move. For example — and this is just basic Elliott — the Wave Principle says that markets move in a series of five waves in the direction of the larger trend (labeled on a chart 1, 2, 3, 4, 5) and three waves against the trend (labeled A, B, C). Also, there are certain proportions between these waves that markets often adhere to. So whether I’m counting a 1, 2, 3, 4, 5 pattern in a rally or a decline (i.e., in a bull or bear market), I focus on where the fifth wave should end, according to Elliott wave guidelines.

Once I’ve identified that price termination point, it becomes a matter of waiting for the market to get there. Fifth waves come at the end of the pattern and are usually weaker than third waves. So once I see certain technical indicators diverging (e.g. the RSI), my confidence grows: We are near the end of the pattern, and prices are about to reverse. That’s just one example of a high-confidence situation. But I do suggest a protective stop with every new Flash alert, in case the forecast doesn’t come true.

Q: Are you aiming for a particular percentage gain?

WS: Absolutely. When I send a Flash alert, I’m typically looking for a 3-to-1 ratio, at a minimum.

Q: Does that always work out?

WS: No. I monitor the recommendation for warning signals that let me know when a different scenario is unfolding in the charts. In those cases, I send out another Flash alert suggesting to lower or raise the stop-loss level, or exit the recommendation entirely.

Q: They say you love the S&P Mini as a trading vehicle. Why?

WS: I’d put it differently. I have traded the S&P for a long time, I understand that market’s nuances, and I like the leverage and volatility. But while the S&P comes naturally to me, I’ve also made many Flash recommendations on other markets, like gold and currencies. So, a better way would be to say that I love any market that gives me the desired risk-reward ratio. Now I’m also “looking for love” among various ETFs.

Special Introductory Offer: Get ETF Opportunity Flash now and have 2nd month FREE. Details.

Q: If traders expect a bear market, should they still consider Flash Services?

WS: Absolutely. I think we’re at the cusp of something very big in the stock market. And this is the time to act. Just keep in mind that speculating in severe bear markets (or during extreme volatility) carries additional risks. So be sure you do your research and know how your financial instruments behave under these conditions. And anyone who chooses to trade in this environment must only risk the money they absolutely can afford to lose.

Q: Who do you think should consider subscribing to EWI’s Flash Services — including the newest addition, the ETF Flash?

WS: Anyone who has some risk capital but not enough time or experience to find their own opportunities. Anyone who understands and accepts the fact that when you bet your money, there will be winners and losers. (Sometimes more of one than the other.) Anyone who knows better than to risk all their capital on a single recommendation; the old “all eggs in one basket” situation. I think in terms of quarters: I want all my subscribers smiling at the end of a quarter.

EWI ETF Opportunity Flash service now brings you potential high-probability opportunities in exchange-traded funds (ETFs). Don’t miss this special offer.