Successful In Forex Trading

A forex fundamental analysis is made up of strategic assessments in which a particular currency is traded on the basis of various criteria with the exception of the price action. To these criteria belong current economic conditions in the state that this currency represents and a great deal of other elements essential for the subject. Macroeconomic indicators, such as economic growth rates, inflation, interest rates, level of unemployment and other issues – all that is relevant for a good forex fundamental analysis.


There has always been a constant debate as to which analysis is better, but to tell you the truth, you need to know a little bit of both. It's important to get a birds-eye view of the currency markets and learn how news affects prices. This is why you must follow and understand the daily Forex news and market analysis of the professional currency analysts - that is forex analytics.


Trading forex works remarkably easy. Everything you need to realize your forex trading practice can be found in broker firm. In the forex trading market, currencies are always priced and traded in pairs. You simultaneously buy one currency and sell another, but you can determine which pair of currencies you wish to trade with forex.


We put forex professional forex articles of our readers to this part. They wrote interesting, useful and high-professional materials using their experience and being real forex traders or other forex market participants. There are articles about forex trading practice, fundamental and technical analysis.


There are the bank holidays of the USA, Japan and United Kingdom on the 2006 and 2007. Each holiday has their own recommended early close date and time. There is the information about currencies codes. The main descriptions of each currency are their Alphabetic code, Numeric code, Symbol and Subdivision.


Forex for beginners: forex history from The Bretton Woods Accord to Free-floating currencies and fixed exchange rates, forex psychology with trading psychology's rules, trading examples, forex glossary from A to Z, forex FAQ's and many other.

Forex signal trading
One of the important terms in forex trading is the forex signal trading.
After getting some education and practicing with a "demo" account forex beginner can make his own forex signal trading system. Most websites with trading platforms offer daily newsletters from a professional trader, broker or market analyst. They are very helpful because the main purpose of forex trader is to make profitable trades by using all available information.

Signal trading deals with identifying trends by using many varied and subtle indicators. These indicators help to indicate a good time to buy or sell, though these Forex brokers and analysts do charge a fee for their services.

A lot of times in signal trade brokers only monitor the most popular currencies such as EUR/USD, USD/JPY, GBP/USD and USD/CHF. But if you are interested you may find Forex signal services for the less common currencies and pairs. These however may charge a higher fee for their services.

There are some individual services included in Forex signal trading that are generally offered. A lot of basic subscriptions to these services will email alerts for the best times to buy and sell. A little bit higher level of subscription though will alert you about these via cell phone or pager. Some levels of subscription for Forex signal trade will provide the subscriber with live charts. Usually the minimum subscription fee is one hundred dollars a month.

A short-term trader capitalizes on very small changes in rates that they expect each day. The forex system
for the short term trader will focus on the study of daily charts, indicators and even time of day. A long term trader needs large amounts of capital to cover daily fluctuations. So his forex system will focus on long-term (fundamental) factors. Thus a long-term forex trading system will be quite different from a short term forex trading system.

The majority of traders are the medium-term traders who have the least risk and generally need less capital than the other types, but their trading opportunities are limited.

There is however a warning about signal trade being used alone, without any other indicators, especially if you are only looking at indicators over a short period of time. Instead when using this service you should use it in combination with other indicators.

In the meantime, use other indicators, trust yourself. Whether using the Forex market or another one, using any signal trade company or the signal trading company in particular, in the end it is up to you how and when you decide to use them.

Why forex signal trading is so important for successful forex trading?

One of the FOREX disadvantages is the time investment needed to monitor the markets for advantageous entry and exit points.

If you don't have the time to watch your computer screen and still wish to achieve as much profit as possible, sign up for a forex signal service. These services monitor and investigate the market for you and send their answer directly to your computer desktop, email, or SMS on your cell phone or pager.

Make sure that the sgnal service provide you with chronological data. Bear in mind that like any trader, Forex trading signals services also have loosing trades. You should not expect a signal service to be a certain ticket to immediate forex wealth, but rather look at them as another device in your trading toolbox.

If you want to get forex trading signals you have to sign up and give a monthly or yearly fee because companies that offer FOREX signals do on a paid basis. Some brokers may provide this service as an additional one that integrates into their trading software.

The charges for these services may vary from analyst to analyst, depending upon the choice of services the trader offers.

The biggest advantage of Forex trading signals services is that they help the traders from the bother of analyzing data. But, this does not mean that the traders should rely upon them completely to exploit their profits or minimize their losses. The traders should use their own decision and market grapevine to choose the trades.
Forex - Trading With The Stop Loss And Trailing Stop
By Sandy Robinson, J.D.
There are various risk management tools available to the trader in the foreign exchange (FOREX) market. Two of the most common ones are the stop loss and the trailing stop. What are they and what are they used for? Are they necessary for successful trading? This article will help you to understand these concepts and provide answers to these questions.

Stop Loss
The platforms provided by many online FOREX brokers contain built-in features such as the stop loss and the trailing stop to help manage certain risks inherent in trading. A stop loss is a feature which allows the trader to pre-determine the price level at which the position will be automatically closed should the market move unfavorably against the open position. The primary benefit of the stop loss is to put a cap on the amount of loss a trader is willing to suffer. A well-placed stop loss is an essential component of an effective trading strategy. There are, however, traders who trade without a stop loss or trade with the stop loss set improperly. Both of these approaches are courting disaster.

Day traders will typically have a different approach to setting a stop loss than those who take long-term positions. Because they are more interested in making quick profits resulting from small market movements, the day traders will typically utilize a smaller stop loss. In contrast, the wider stop is favored by long-term traders who are less concerned with the smaller moves of currency prices, including the temporary reversals present in the trend. Such price reversals would normally trigger the smaller stop loss of the short-term or day trader. Positions taken by long-term traders may be open for several days or longer, experiencing a fair number of reversals on the way to the take-profit target. Consequently, the wider stops would be preferable to this breed.

Trailing Stop
A trailing stop is often utilized in connection with the stop loss. Indeed, it would be futile to attempt the trailing stop without first setting the stop loss. That is because the main purpose of the trailing stop is to move the stop loss incrementally in the direction of the profit target as the currency price moves way. Such has the effect of incrementally bagging profits while the position remains open. The original stop loss level cannot be reached by the price reversal without the trader’s position having first been closed automatically at the new stop loss level made possible by the trailing stop.

In a news trading situation—generally characterized by rapid price movement—a trader would ideally utilize the smallest incremental trailing stop allowed. The smaller the trailing stop, the more possibility there is for making and keeping pips without being subjected to the vagaries of whipsaws or other rapid reversals in currency price. As in the case of the stop loss itself, a smaller trailing stop would be favored by the short-term trader. For example, instead of waiting for the price to move 20 pips before the stop loss is moved and the 20-pip profit realized, the trader can realize profits earlier by setting the trailing stop at 10 pips, with the expectation of bagging 10 pips with each 10-pip move in the currency price. Although it would be a trader’s dream to have a trailing stop as low as 1 or 5, the lowest to be found on any broker’s platform is probably 10. Still, by utilizing a well-place stop loss with the appropriate trailing stop, a trader can invest profitably and minimize the inevitable risks while preserving precious trading capital.

If you are ready to change your future by stepping into the exciting world of trading FOREX, go to http://www.winningtradersassociation.com for more information. Author Sandy Robinson, J.D. is part of the Winning Traders Association, an educational organization founded by John Beiler, President. The organization consists of a network of committed trainers and motivated traders willing to provide support to those interested in trading foreign exchange. Many of the members work from home.

Sandy Robinson, J.D.
Copyright 2007

Article Source: http://EzineArticles.com/?expert=Sandy_Robinson,_J.D.
Three Strategies To Trade Forex During News
By Tom Van Geert
In this article, I will discuss three ways how you can take advantage trading forex during economic news releases.

Trading the economic numbers


Straddle setup before the news


Hedge setup before the news


Currency traders try to take advantage of the discrepancy between the forecasted and the actual economic number, you need a very fast news data feed such as Reuters or Bloomberg because you want to get in the trade before the move begins.

Steps to trade the economic data numbers:

1) Trading the economic numbers strategy

1. Purchase a fast news datafeed at Reuters or Bloomberg
2. Track the news consensus and determine the significance of the economic news report being released, if it is not important, do not trade it.

You will be able to find all important data on a good economic data calendar
3. For each important news release you need to know how large a discrepancy has to be in order for you to act on the trade.
4. Finally, watch the news release using your fast datafeed and trade the numbers.





2) Straddle the News strategy





This strategy is very simple and consists of 2 limit orders, one to buy a few pips above the range high and one to sell a few pips below the range low, then wait for the price to breakout triggering one of your orders. Your stop loss order should be placed a few pips below the range low when buying, conversely, a stop loss order should be placed a few pips above the range high when selling.


3) Hedging the News strategy

What is hedging? Hedging enables a currency trader to simultaneously hold Buy and Sell positions in the same currency pair at the same time in one trading account.

1. To hedge, go both long and short at market price 30 min before the news release.
2. Add a protective stop loss order to both long and short positions 30 seconds before the news release.
3. Add a limit order to both long and short positions 30 seconds before the news release.

For more free tutorials, forex tools, free system downloads, news, forex calendar, forex product reviews and articles about forex trading, please visit us at Aboutcurrency.com | Forex
Article Source: http://EzineArticles.com/?expert=Tom_Van_Geert