InvestMacro FX

By Kelly Price – In this article, we will look at common Forex myths most traders believe which cause losses. If you want to avoid the 95% of losers and enter the elite 5% of traders who make big Forex gains, then this article can lead you to Forex trading success.

First lets look at the biggest Forex myth which new traders believe.

Cheap Forex Robots Work

For a cost of under $200.00 the sellers of these robots claim you can make a huge regular income with no effort. So a lifelong income for just the cost of a good night out – doesn’t quite add up does it? It looks to good to be true and it is these systems are so cheap, because they don’t make money not becuase they do! Avoid these get rich quick systems or you will lose.

Currency Trading Requires Hard Work

This is a common myth and while hard work can help you in many jobs, it doesn’t help you succeed in Forex. Traders who think the more effort they put in and the more they trade, the better the chances are of making money – are wrong. These traders make a lot of effort and take low odds trades and lose. In addition, they try and be to clever which leads me to my next point.

The Best Forex trading Systems are Simple

The trader who thinks, that complex strategies work better than simple ones is wrong – Why? Because simple systems work best and the reason – if you make a system to complex, it will have to many elements to break.

You can Predict Currency Prices in Advance

Many traders think you can predict prices in advance with science and use systems based on science which include – Fibonnaci, Gann and Elliot Wave. If you try and predict Forex prices you will find, your predictions end up as accurate as your horoscope. Forget predication and simply trade the confirmation of price action. Sure you won’t win every trade but if you keep your losses small and run your profits, you will make huge gains.

Why You can Win at Forex

As you can see, successful currency trading requires only a simple system and in addition, you don’t need to work hard or have a college degree to win. If you have a simple system which trades the reality of price change, you cut your losses and run your profits, you can enjoy Forex trading success.

You have to make some effort and learn skills but anyone can learn the skills needed to win and for effort you need to put in the rewards can be life changing.

About the Author

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf’s, with 50 of pages of essential Forex info and the BEST Currency Trading Strategies for success, visit our website at: http://www.learncurrencytradingonline.com.

By Arnold Smith – FX strategies can be very helpful in your currency trading ventures. Foreign exchange (FX) is the medium where a country’s currency is exchanged for another currency. It is the largest capital market so far, and a far second would be the New York Stock Exchange. Traders include banks, nonbank institutions, corporations and governments among other individual investors.

The size and nature of the foreign exchange market, since it does not have any physical presence, usually leaves a passerby with the perception that it is foolish and may be fraudulent. Even if the market is seen this way, it responds quickly to changes in the economy.

A market participant would love not to incur to costs when trading. Participants do not want too much spending as it would affect their businesses and could develop more profit. So, we need to have the right tips and the best FX strategies when participating in the market.

1. You should know the current state of the market. If the economy state is growing. Then that would be the best time to trade.

2. Do not trade with huge amounts of money. Never put your eggs in one basket.

3. Identify the market trend. If you’re in the proper direction, then successful trades could be achieved.

4. Time your trades. You shouldn’t be too early or too late when trading. The right time for trading means success.

5. Trade with extra money, trading in the forex market is an investment. You win some, you lose some. Because the currency rate is fluctuating, you need to trade with extra cash, not money that you use for other important things. By far, this is one of the best FX strategies used by a lot of traders around the world.

About the Author

Discover a Secret Forex Signal Service Used by Pros to Make Thousands of Incredibly Accurate Predictions. If you’re really serious about doing profitable trades in forex, then go to http://specialreport.tips4fxtrading.com/ to get your FREE ebook

Top 5 Fx Strategies

By Cedric Welsch – An online forex currency trading scam is hard to spot. Between 2001 and 2007, the Commodity Future Trading Commission investigated 26,000 claims from people who lost $460 million. These are just the people in the United States. Unscrupulous people prey on the hopes and dreams of individuals trying to make money or protecting their investment accounts.

There are seven different warning signals these investors need to pay attention to. The seven signals are investment account set up outside the country the investor lives in, constantly moving accounts to collect the commission, selling software guaranteed to make money, improperly managing accounts, false advertising, Ponzi schemes and indicating the forex market is a low risk and high profit investment.

The currency market is self regulated by the National Futures Association; members agree to abide by certain rules and regulations or their membership is terminated. In the United States the Commodity Futures Trading Commission has some oversight over currency brokers operating here. Other countries regulate the currency brokers operating within their borders; some have oversight and some do not.

One popular online forex currency trading scam is to have an investor submit funds by wire or certified check to an account in an unregulated or under regulated area. Once the funds are received, the funds become the property of the account holder and used for that account holders benefit. The primary concern of any investor should be the return of the investment account; the secondary concern is the return on this investment account.

Potential investors should carefully scrutinize any website of the company they are considering using. Scammers do not waste time setting up and maintaining professional looking web pages. Their web pages are quickly drafted and may contain spelling and grammar errors. Any second grade teacher will warn people about using “professionals” who do sloppy work; astute investors pay attention to that wise teacher’s advice.

There are many ways to find legitimate currency brokers. Most of these belong to professional organizations and have a good standing. They include this information in their advertising and on their website. Other investors in this market can provide valuable information.

Any investor who trusts a complete stranger with thousands of dollars needs to do their due diligence and investigate that currency brokerage. It is easier to spot an online forex currency trading scam by remaining alert and remembering that wise old saying, “If it sounds too good to be true, it is.”

About the Author

Do you want to really make profits with forex? Make sure you get fresh updates ahead of everybody else here: Forex News

Also, you need to know how to read and analyze the trading market well. Learn Currency Trading News

By Cedric Welsch – If you have ever been interested in the world of forex trading, you need to familiarize yourself with online forex currency trading basics before you get started. Understanding how certain aspects of the trades work will allow you to stay afloat in the world of forex trading no matter what brokerage or software you choose to use in your forex trading quest. In order to get started in the world of trading, you need to understand a few basic facts about the business.

Many people get into the world of online forex currency trading basics believing that there is a ton of money to be made relatively easily. While it is true forex trading can net you a considerable profit, what you should understand about this profit is that it is earned, not instantly gained through a few quick trades. One of the most common mistakes newbie traders make is assuming forex get rich quick robots will provide a steady flow of income with little to no input. The simple truth is these robots are designed to give you false hope while pocketing the money you paid for the “license” of their use. Robots cannot accurately predict the flow of the market, otherwise everyone would use them. Do not fall for this scheme.

The most important thing you can learn about the Forex market is learning to read the charts. Being able to spot high odds and knowing which simple system to employ to take the best advantage of a situation can net you much more in profit than relying on someone else’s expertise. Charts can quickly provide you with a summary of all activity in the markets since your last observance, helping you make quick decisions as to which currencies should be traded high and low.

Market prediction techniques rarely work. You need to keep this in mind when you are planning your purchases. Instead of trying to predict the ebb and flow of the market, you should trade breakouts as this is an effective way to make cash over and over again. Aside from sticking with a simple plan that works, you need to be able to trade with discipline. If a particular strategy is not working, you should alter it so that it does. By altering your strategy to conform to the market instead of expecting the market to conform to you, you will have accomplished more in learning online forex currency trading basics than most newbies who begin trading in the first few months.

About the Author

Do you want to really make profits with forex? Make sure you get fresh updates ahead of everybody else here: Forex News

Also, you need to know how to read and analyze the trading market well. Learn Currency Trading News

By Cedric Welsh – It’s hard to walk past the finance section in a library without tripping over a book that claims to be a forex manual for successful trading. Fact is that the only real manual required is a few days in the trenches entering and exiting trades. To be fair, the books do provide some valuable background and clear up the basic concepts. So read this carefully, and it just might do some good.

As a start, there is no forex market housed in some large building packed with gazillions of traders. The forex market is simply a name for a global body of the largest financial entities in the world that trade currency pairs and set currency rates. When someone speculates on currency pairs with the intention of pocketing the difference caused by fluctuations, that’s forex trading.

The first order of business is to set up a margin account with a currency broker. This account doesn’t need large deposits, and can be opened with a minimum deposit in between $1000-$2000. This gives the trader one ‘lot’ to play with, which is $100,000. The leverage available in the forex market is a lot bigger than stock markets.

This may seem astronomical, but in the forex market, the risk is lower. Even so, it’s important not to get carried away in the heat of the moment. Every good forex manual for successful trading says that trades should be placed based solely on analytical data and logic. Just to be safe, make it a rule never to place trades totaling in excess of 20% of the margin account, and make sure each individual trade doesn’t exceed 5 to 10% of the account.

Start with a demo account and paper trades where real money is not at stake. Traders usually offer demo accounts to help new traders get a feel for how the market works. It comes in handy for clarifying basic fundamentals like pips and spreads and how much brokers take, and what’s left for the trader.

Start reading about forex futures contracts, signals, indicators, trading strategies and systems. A very important tip for new traders is to focus relentlessly on one or at 3-4 currency pairs. Even big traders and financial institutions spend all their time and resources on a few chosen currency pairs.

Stay away from low trade volume currency pairs and stick to the popular ones like USD/CHF, USD/JPY, GBP/USD and EUR/USD. All this is basic stuff that isn’t classified as a full-fledged forex manual for successful trading. But it should be enough to start with, so long as our intrepid trader keeps going in the right direction.

About the Author

Do you want to know how you can really make more profits doing forex business? Get the very first daily currency updates ahead of other traders: Forex News Trading

Cedric is an article marketing expert, freelance article writer, link building professional, and freelance seo specialist.

Adam Hewison – Many traders get so involved with the market on a daily or even an intraday basis, that they somehow lose out on the bigger picture. Weekly charts are enormously helpful in giving clues to the future direction of the market.

In today’s video we examine one of the biggest markets in the world, the S&P 500, using a weekly chart. The video runs about two minutes in length and I think you will find it both educational and informative.

Enjoy the video and be sure to share your thoughts.

To see more of Adam’s Videos click here or sign up for Adam’s Free 10-part Professional Trading Course.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

By CountingPips.com

The U.S. economy expanded in the second quarter of 2010 for a fourth straight quarter but at a slower pace than previously reported, according to a release by the U.S. Commerce Department. The second government estimate showed that the U.S. Gross Domestic Product grew on an annualized basis by 1.6 percent in the April to June quarter following a real 3.7 percent growth rate in the first quarter.

The first estimate for the second quarter, released in July, had shown GDP growth by 2.4 percent. This marks the fourth consecutive quarter of U.S. economic growth after the GDP had fallen for four straight quarters over the second half of 2008 and the first half of 2009.

The latest data surpassed market forecasts that were expecting GDP growth to be revised to 1.4 percent for the quarter.

Contributing to the lower economic growth was a decrease in private business inventories when compared to the first released estimate. Private business inventories added $63.2 billion in inventories for the second quarter which contributed 0.63 percentage points to the GDP . The first estimate had shown $75.7 billion added in private inventories and 1.05 points added to the GDP growth.

Consumer spending was revised higher and rose by 2.0 percent in the second quarter following the 1.9 percent increase registered in the first quarter. Consumer spending makes up roughly two-thirds of U.S. economic activity and the second quarter increase marks the largest gain since the first quarter of 2007.

Imports increased more than previously thought as imports surged by 32.4 percent (from previous 28.8 percent) in the second quarter following a first quarter rise of 11.2 percent. Exports of goods and services, meanwhile, grew by 9.1 percent in the second quarter following a gain of 11.4 percent in the first quarter.

Spending by the federal government rose by 9.1 percent following a 1.8 percent expenditure in the first quarter and was unchanged from the first estimate from July.

The third release for the U.S. GDP is scheduled for September 30, 2010 at 8:30 A.M. EDT.

By Greg Holden – Switzerland is due to publish its KOF Economic Barometer report today at 9:30 GMT. This measure is a gauge of Swiss economic sentiment and is meant to forecast the direction of the economy in the six months following. The Swiss franc has been gaining ground steadily against its rivals due to its safe-haven status during times of financial risk.

As a result, an important currency to compare the CHF to would be another safe-haven whose economy is similar, like Japan’s. The CHF/JPY, therefore, offers an important valuation of the franc’s real strength. In fact, during the franc’s rapid rise against its European counterparts earlier this year, the yen actually dominated the direction of the pair. This highlighted the fact that Switzerland was also pummeled by the Greek debt crisis, and was only opted for in place of the other regional currencies which were far more impacted by uncertainty.

The other area where these two currencies are similar is the undesirability of strong currencies by their respective central banks. Both the Swiss National Bank (SNB) and Bank of Japan (BOJ) would like to see their currencies weaker than they are at present because both countries are trade dependent. Speculation about interventions by these two banking giants has fueled much of the volatility in the market lately.

The importance of today’s KOF barometer is less than many expect. While it is indeed an important piece of data for franc investors, it likely won’t carry much impact on the safe-haven status of the CHF and therefore may not create too much volatility in the major pairs, with the exception of the CHF/JPY.

While these two currencies vie with one another, today’s barometer will be the only piece of fundamental data which carries a direct impact. Today’s expectations are for an insignificant decline in economic sentiment for Switzerland. The reading is expected to fall from 2.23 to 2.22, more accurately reflecting stability over decline. For the CHF/JPY this means we should see some upward appreciation as the safety of the CHF is confirmed.

Technical Analysis

On the technical side we have two clear indications for further upward movement, in support of our fundamental analysis above.

– First, in our Fibonacci retracement we have further potential for an upward move with a target of 83.10-20. Beyond that, our next target would be as high as 84.75.

– Second, the Parabolic SAR (Stop-and-Reverse) on the daily chart shows the indicator switching just this morning into a buy signal (see chart below).

Both of these notions, along with the fundamental forecast above, support the idea that we should see some additional upward movement in this pair; with targets at 83.10-20 and 84.50-75. On the downside, we have a significant support level just above 81.50 and a lower-border support at 79.50.

CHF/JPY – Daily Chart

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Russell Glaser – A sharp decline in the value of the EUR/USD followed by a bounce higher has setup a consolidation pattern that could lead to further declines in the pair.

The 4-hour EUR/USD chart below shows a sharp drop in value for the pair beginning on August 23rd at a price near the resistance level of 1.2730 (R1) to a low near the 1.2610 support level (S1). This drop in the price was followed by a short period of rising prices which failed to close above resistance level, forming a bearish flag pattern.

The next move may be to the downside as the flag pattern is rising. The measured move following a breakout below the lower line of the flag pattern should equal the length of the flagpole, roughly 140 pips.

A continuation of the downward move may send the EUR/USD even lower to the 2009 low at 1.2450 (S2).

Additional resistance can be found at 1.3030 (R2).

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Forex Research

Fundamental Outlook at 1400 GMT (EDT + 0400)

USD

The dollar weakened ahead of the second estimate of Q2 GDP and Fed Chairman Bernanke’s speech at Jackson Hole and risk sentiment overall was weak with equities slightly negative and the Dow Jones Industrial Average settling below 10,000. Initial jobless claims was better than estimated at 473k though the trend is still higher and the consensus estimate for GDP is at 1.4% annualized versus 2.4% in the advance estimate, which was released at the end of July. The much anticipated Bernanke speech is due but investors have increasingly questioned what, if anything, he can say to mollify worries on recent US data softness in between FOMC meetings. The Fed might need further assistance from the fiscal side of things but it will be interesting to see if Bernanke announces any new monetary possibilities beyond the ones that have already been discussed (i.e. extending the “extended period” language, reducing interest on reserves). The text of the speech should be released at 1400 GMT and no Q&A session is anticipated. Should the Bernanke speech pass without much incident, we could see safe havens supported as investors may take that as a sign that further easing, which would be risk-supportive, is not in the cards. EURUSD traded 1.2651-1.2764, USDJPY 84.32-84.89.

EUR

Data divergences have been in favour of the Eurozone versus the US as of late but uncertainty on central bank policies have kept EURUSD range-bound this week. Eurozone M3 was as expected and Germany August CPI is expected to be flat. GfK consumer confidence came in slightly above expectations at 4.1 (cons. 4.0). While much of the direction for the pair will come from the US, investors should bear in mind that fiscal tightening will keep the ECB on hold for quite some time as well, and banking recapitalization concerns and sovereign financing will also provide some overhang for the Eurozone.
JPY

DPJ former Secretary-General and party heavyweight Ozawa will likely challenge PM Kan for the leadership (and the Premiership as the DPJ still commands a lower-house majority). Political uncertainty will likely increase uncertainty and the policy deadlock, but given that Japanese investors’ traditionally respond to domestic-based risk aversion with yen buying, this may not constitute a significant risk event which could open up USDJPY upside. Japanese PM Kan noted that he did not talk about intervention in a meeting with business leaders. However, he noted that cooperation between authorities would continue, and BoJ Governor Shirakawa will be attending the Jackson Hole meetings this week.
National CPI is expected to remain negative, which would keep pressure on the BoJ to implement further easing measures.

CHF

Consensus estimate for the Swiss KOF leading indicator is 2.20, roughly in line with the July reading. Elevated KOF levels will support the Swiss franc as investors look towards the September policy meeting, where we expect some form of policy tightening, and also as they rotate among the safe haven currencies. The employment data for Q2 2010 recorded a new all-time high in the number of employed.

TECHNICAL OUTLOOK

EURUSD BEARISH Sell-off from 1.3334 found support at 1.2588, a break here would expose 1.2434 with scope for 1.2152 next. Near-term resistance holds at 1.2933.
USDJPY BEARISH Decline through 84.73 halted at 83.60, which lies ahead of 79.75 key support. Near-term resistance is defined at 85.20 ahead of 86.38.
GBPUSD NEUTRAL While resistance at 1.5713 holds, move below 1.5324 would put odds in favor of a negative trend. Next support lies at 1.5125 ahead of 1.4906.
USDCHF BEARISH As long as resistance at 1.0676 holds expect loses to target 1.0131 and 0.9918 next.
AUDUSD BEARISH Momentum is negative; initial support is defined at 0.8663 ahead of 0.8531. Only a move above 0.9080 would hurt the negative tone.
USDCAD BULLISH While 1.0677 caps the upside initially, next resistance lies at 1.0853. Initial support lies at 1.0511 ahead of 1.0248.
EURCHF BEARISH Defined a fresh trend low at 1.2972 clearance of which will expose 1.2755 next. Near-term resistance at 1.3242 ahead of 1.3458.
EURGBP BEARISH Focus is on 0.8068 and 0.7974 support levels. Short-term resistance is defined at 0.8247 ahead of 0.8363.
EURJPY BEARISH Bearish pressure held above 104.72; breach of the level would expose 100.00, round number support. Near-term resistance is defined at 108.87 ahead of 111.11.

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.