InvestMacro FX

By David McKean

If you are a beginner and want to start trading then the first step is to buy a forex trading account. There are many options available in the market when you go for buying a trading platform. You should always go for a trading platform that offers you a free demo account. Any broker who is confident of his platform would offer a trial accounts to new potential customers.

Once you get the forex demo trading account you should try out its trading techniques and features. No doubt going in for a forex demo trading is a time consuming but it would prove to be a wise decision in the long run. You can easy find different training sites which would offer you a demo forex trading accounts for anywhere from a day to 6 months. You can switch to a full-fledged account when you feel you’re confident and comfortable with a particular trading platform.

Apart from the above listed advantage forex demo trading also lets you test your broker. The best approach is to look for different brokers and try different demo accounts and narrow your choices with each demo account usage. This technique will help you to test how different brokers work with you and how comfortable you are working with their trading user interface.

The better you understand a trading application, the less time it will take you to learn to use different trading techniques and hence the faster the trading would be and the more you can then earn.

The bottom line remains that the opportunity to demo a trading account, its knowledge and techniques before buying is a wise decision. Having a good knowledge of the trading account before buying will help you in trading especially when large amounts of money is at stake. Do not bother about the time that you may spent on a demo account as it is time in building confidence and this confidence can help you make huge profits.

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Find out more about forex trading tutorial and how it can help you with successful forex trading

By David Adams

There are a number of statistics that are bandied about regarding the success rate of new traders. The general statistic that you hear quoted is a 90% failure rate within the first three months. It would be hard for me to dispute this statistic, as I see waves of traders enter the market without training and attempt to become millionaires. It doesn’t work like that, and the exchanges are not ATM machines that spit out money to the uninitiated.

Let me say from the onset that this is a difficult question to answer. E-mini traders come in varying degrees of intellect and trading acumen. In reality, the traders that have the highest natural aptitude in trading stand the very best chance of succeeding. That being said, I have trained many successful traders who persevered through hard work and diligence.

There are a number of statistics that are bandied about regarding the success rate of new traders. The general statistic that you hear quoted is a 90% failure rate within the first three months. It would be hard for me to dispute this statistic, as I see waves of traders enter the market without training and attempt to become millionaires. It doesn’t work like that, and the exchanges are not ATM machines that spit out money to the uninitiated.

As an aside, I had a double major in college. I earned a degree in business and another degree in performance piano. Of course, the degree in piano was far more difficult than a degree in business. One of my teaching professors in the piano department once told me that if I wanted to be the best I “had to want it.”I have never forgotten these words, and they apply to all facets of life, especially trading e-mini contracts.

Let’s talk about the reasons people fail.

1. Many traders simply lose interest in trading before they become competent. Trading is a lot of work and some traders simply don’t devote the time and effort necessary to master trading concepts.
2. Many traders do not have the prerequisite skills or temperament to be effective in trading.
3. A large number of traders never master the psychological side of trading. There is a general concession that it is enough to learn the setups to be successful. Nothing could be further from the truth. Managing trades and managing your trading account are essential skills in the trading experience.

I keep fairly careful records on the outcomes of my trading education and find that about 50% of the traders in my programs succeed. In relation to the 90% failure rate, that is something of which to be proud. Just the same, 50% of the students in my program fail, and that is a disheartening statistic. The cold reality of trading is that some traders are never going to be effective and should find other work, or another career.

Of course, there is some good news, many e-mini traders go on to have successful careers in the trading business. This success is a function of natural aptitude, mental toughness, and a desire to succeed. I have met very few traders who possess these three attributes that are not successful. In order to trade successfully, you “have to want it.” There are no magic oscillators, breakthrough indicators, or trading techniques that will assure your success. Only careful study of a tried and tested system, then mastering that system, will give you the potential to succeed and e-mini trading.

From a personal standpoint, I have vowed over the past 25 years to quit trading more times than I count, but I keep coming back for more and have traded very successfully over the vast majority of my years in training. You can too.

In summary, we have looked at the overall failure rate among new traders. The numbers can be very disheartening and discouraging. We have also pointed out that one of the keys to success is perseverance and hard work. Just the same, not all traders succeed and that is a fact of life. With proper training and hard work I think most people can learn to trade successfully, some traders are more successful than others; that’s also a fact of life.

About the Author

Real Live Trading Doesn’t Lie. Spend several days in my trading room and see if you can benefit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here

Gold prices rose significantly in the last week and peaked at $1396.76 an ounce. Gold has made a significant upward correction, which can be directly correlated with the bullish trend of the EUR/USD cross. However, the daily chart is suggesting that a recent upward trend is losing steam and a bearish correction is impending. This recent activity has raised the stakes for traders. From here on, the forex and commodity markets will see very high volatility indeed.

• Below is the daily chart for gold by ForexYard.

• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.

• Point 1: The Slow Stochastic indicates an impending bearish cross, signaling that the next move may be in a downward direction.

• Point 2: The Williams Percent Range has peaked at the 0 marker and has turned bearish; this means that there may actually be a strong level of downward pressure.

• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.

Gold Daily Chart

By Doug West

I’ve never been a big fan of Risk-To-Reward ratios. There are a million ways to calculate them for one thing. It is simple to say that you want a 2 to 1, or a 3 to 1, or a 4 to 1 ratio, but where do you start, and where do you get out of the trade? Do you base that on someone’s pivot points (another trading aid that has MANY formulas), or some other formula?

The problem I have with Risk TO Reward ratios is that I have seen them cause traders to hold trades too long. I am a firm believer in taking profit when the market makes it available to you. If you don’t, you can let a profitable trade become a loss. I’ve seen this happen time and again when someone is putting too much weight on some magic ratio.

I do see the attraction with these ratios. If you can get a 2 to 1 risk to reward ratio, you can actually lose over half your trades (if you make sure your losses are 1/2 the size of your winners), and still come out on top! Sounds great in theory, but in live action I find much harder to accomplish.

The problem is that you NEVER know what the market is going to do next, I don’t care how many formulas you go by, or how many indicators you look at! Those indicators are all based on formulas too.

Here is another problem, whose formula do you go by? Ted’s, Jed’s, Ed’s, or Fred’s formula? There are a TON of them to choose from.

In the long run I have found that you will do a LOT better by just taking what the market gives you, and cutting your losers short. If you do that consistently, you will be way ahead of those who look to some arbitrary ratio on their trades. They may work for longer term investments, but with day trading I like to stay in the moment and take what the market is offering. OH, I see my set up coming, I’ve got to go!

About the Author

Doug West has worked in Financial Planning and Investment training for over 20 years. Get his No-Cost Audio Report on how you can Secure Your Retirement with Free-Online Tools:

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Learn the art of simple Mini-Dow Index Trading.

By Vytautas Zilenas

A newbie that comes to the Forex market expecting to make millions in a matter of a few months usually gets disappointed quite quickly. If he/she spends just a few weeks on a demo account and rushes to open a real one, the chances are that his/her real account will be shattered within a few weeks, hopefully a few months. Financial markets present lots of opportunities to make money, but even more to lose it. From my own experience I can say that the only way you are going to become successful in Forex is by learning it the hard way, making mistakes, trying and losing, trying again and losing again and finally arriving at conclusion that Forex is not for you, or by finding some good forex trading strategies and following them with a sound money management system and proper discipline.

Understanding of conditions is the first step to success

My favorite author on investing and speculation is Jesse Livermore. He lived, traded and wrote in the beginning of last century but his great experience and tips are still valuable today as they were one hundred years ago. Jesse used to say that if you want to be successful you need to understand market conditions, which means: you have to see if the market is in a range, a trend or it goes sideways. Then, you have to be able to use an appropriate strategy for those market conditions. If you neglect this and continue trading spontaneously jumping from one strategy to another without any plan and methodology, you will definitely ruin your account. Blowing up your account is not necessary, but unfortunately it happens till traders learn to see market conditions and act accordingly on the knowledge they have gained.

You have to develop your own trading strategies and systems

Learning from others is very good; however you should develop your own trading strategies and systems in order to be successful. People are different and they create different trading methods that best suits their personality. My trading style might not be very good for you as you are a unique trader you’re your unique goals and expectations. If I risk 5 percent on my trades, it does not mean you have to do the same, because your monthly or annual targets might be different from mine. Having that in mind I can say with conviction that buying signals from some signals’ provider is a temporary strategy. Why? Well, what would you do if something happens to that signal provider? What if he starts giving you bad signals? And are you going to become a professional trader by following somebody’s signals? I guess not. I do not mean to belittle the usefulness of those companies and traders that provide forex signals, I just want to stress the point that if you want to be a professional trader you have to use your own head. If you just want others to trade for you or suggest you how to trade, then forex signals are for you.

About the Author

There are many more tips that could be given but I am going to do it in my future articles. If you want to find out more about the subject you can read how forex trading system can be applied under different market conditions reading about basic forex trading strategies and by watching a video about application of forex signals.

By James McKee

Investors world wide have greeted the problems in the Middle East with continued anxiety as the wave of revolution spread from Tunisia to Egypt and now elsewhere. The severe loss of life and property that has occurred in Egypt already has stirred a wave of controversy in the Western world. Western currencies could end up taking a tumble in the near future if these problems begin to affect oil production. The USD and all other major currencies are inherently dependent on the consistent availability of oil, without this most precious of commodities the world cannot function.

Besides the obvious consequences in the energy market destabilization between China and Europe could cause serious consequences with regard to trade and ease of communication. China has been expressing a large amount of interest in both Europe and Africa as of late investing in their economic stability and infrastructure. Instability in the Middle East could hinder these efforts causing harm to both China and Europe; the whole world truly is invested in a solution. Although the problems of economic hardship and inequality have gone ignored for decades citizens of countries such as Egypt have said “enough”…and the consequences are all too real.

Waiting until the whole world was more or less at an impasse financially has resulted in the very least amount of aid going to the Middle East by way of the west aside from political posturing. The United States has a vested interest in the stability of countries such as Egypt since without a presence in this area of the world production and manufacturing would be undermined and as a result the USD would suffer. Those on the Forex currency exchange should take care to mind the status of uprisings in at-risk countries in the Middle East. These countries have been powder kegs for years now and the fuse has been lit.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

After hitting a low of 81.08 last February 4, the USDJPY pair has rallied back to mark a high of 83.97 2 days after Valentine’s day. It appears, however, that US dollar’s push against the Japanese yen is starting to lose some momentum. As you can see from its 4-hour chart above, the pair has formed what looks to be a head and shoulders pattern with a neckline at around 83.10. In the process of doing so, it likewise broke its short term uptrend line. After breaking the uptrend line, the pair immediately fell towards the neckline of the head and shoulders. Notice that this neckline corresponds to the previous highs that I highlighted in pink. Anyway, should USDJPY clears below the said neckline support, it could further fall down to around 82.50.

While the price is suggesting a likely fall in USDJPY’s price, a presence of a hidden bullish divergence, where the price registers higher lows and the stochastics make lower lows, is saying otherwise. For those who do not know, a hidden bullish divergence as in this case signals a probable pick up in prices. Hence, if USDJPY is able to rebound off the head and shoulders’ neckline, it could once again reach the peak of the right shoulder at around 83.50.

But what’s the safer play, if you ask me, given this set-up? If it’s me, I would follow first what the price action is saying before I look at the other indicators. The recent price price suggests a likely fall given the formation of a head and shoulders. So what I would do here is that I will wait first for the breakdown to happen. At that time the hidden bullish divergence will be still in effect. Sooner or later the pair will rebound and when it does, I will short it (buy the yen and sell the dollar) probably at the neckline area or any Fibonacci retracement levels from the peak of the right shoulder and the first significant swing low that it will make following a breakdown.

More on LaidTrades.com …

By James McKee

The decline of the United States and its currency (the USD) have resulted in many hardships experienced around the world, and as the United States capital reserves and borrowing power erode local governments are feeling the pain. California has recently lowered most state workers’ pay to minimum wage, causing outright uproar. In a state where the average rent for a 1-bedroom apartment is over $1500.00, many find it difficult to survive on $10.00 an hour (before taxes, of course). These difficulties have resulted in a populace that is discontent and outright irate, many other states thought that California was an isolated incident but they are waking up to the truth.

The truth is that the USD’s value has dropped by over 20 percent in the last 15 years; this means that things are far more expensive than we realize. The prices of many goods have become cheaper due to outsourcing and the purchase of goods from abroad as well as government subsidies…however these subsidies are coming to an end. The Obama administration has stated they will be cutting the Federal Pell Grant program’s funding in half, in an already expensive education system this is quite the blow to those who want to improve their lives.

Most municipalities across the US are being weighted down to the point of implosion through various pensions that have accumulated nearly 50 billion dollars of debt. The reaction to this financial quagmire has been to cut the pay of those state workers still on the payroll, and to slash their benefits as well. A country without the proper infrastructure at a local level cannot hope to survive and there will be a price to pay for underpaying and not providing support to police, fire departments and so on. Those on the forex currency exchange should carefully monitor how the United states copes with these issues in the near future.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

EURUSD is testing 1.3743 key resistance, a break above this level will indicate that the fall from 1.3861 has completed at 1.3428 already, then further rise towards 1.3861 previous high could be seen. However, as long as 1.3743 resistance holds, the bounce from 1.3428 could possibly be correction of downtrend from 1.3861, and another fall to 1.3300 area is still possible. Support is at the rising trend line on 4-hour chart, now at 1.3568, a clear break below the trend line support could signal resumption of downtrend.

Daily Forex Forecast

By John Eather

I’m sure by now that you have heard about Demo or Micro accounts if you’ve been doing any kind of research concerning online Forex trading.

Use a Demonstration Or Micro account to test your system. Resist the urge to leap right into the trading system with fists full of money. Take the time to perfect your skills through practice by utilizing your Forex demonstration account. This placeholder account can be your proving grounds. If you re unable to grow this demonstration account, you probably won’t be able to make any significant money using your trading methods.

It’s suggested that you test out your new Forex trading strategies with demo accounts before you launch them into your larger accounts. Don’t forget that perfection only comes from practice when you’re trading Forex.

Understand Forex Trading: It’s not wise to purchase an automated Forex program and allow it to do all of the work for you. Ultimately, if you learn the ins and outs of Forex trading yourself, you will find a greater degree of success. Teach yourself about Forex by picking up a Forex book, or attend a Forex class, and test what you find out on your demonstration account.

Only Use Risk Capital To Trade: ‘Risk capital’ can also be called ‘capital which you can afford losing’. This amount is everything you’ve put aside to test out Forex market speculations. With this money categorized differently, you could still afford to continue living if it all suddenly were lost in a bad trade.

If you trade using money that you absolutely need to function in your everyday life, you’re trading with ‘scared money’. ‘Scared money’ is cash which you’re terrified of losing, to the point where you’ll lose sleep and have trouble functioning.

You’re entering very dangerous territory if you are trading with money that you really need in your Forex account. Don’t forget that even the most solid strategy for trading Forex cannot predict your exact profits, or when they’ll be delivered to you when you need them most.

Don’t Add Money To A Failing Trade: This trap is easy to succumb to. No one ever likes to lose money from Forex trading. You need to come to peace with the idea that some trades will result in losses. It’s just a normal part of trading in Forex, which everyone has experienced – even the Forex traders with the greatest successes.

About the Author

Are you ready to become a Forex trader? Sign up for John Eather’s Free eCourse on Forex Trading. Keep up to date with the latest info concerning Automated Trading. Go to http://www.MoneyMakingFxTrader.com to get more details.