Forex Guide

Recent economic condition - influences on Forex trading

Any kind of business is directly related to economy. If economic condition runs well, business will run well. An investor’s confidence depends on economic condition. A smooth economy situation is essential to build up investor’s confidence.

Forex is the biggest and decentralized market place for currency trading. Being decentralized a lot people around the world are trading here. If you want to invest here, you have to gain confidence at first. Because, this is a virtual and risky place. You have to make a big analysis to invest here. Otherwise you could fall in problem. To do so you can take help from Forex tutorial. Forex practice account is also helpful. Here you can have the chance of live forex trading.

If you consider the recent world economic conditions, it will be horrific to you. If you consider the last decade, the world economic was not so good. But now it is trying to recover and has already done to some extent. Day by day the world’s economy is going to be more decentralized and we are now getting its good result. As a result Forex trading is getting more popularity day by day. If you want to learn forex, you can take forex trading tips.

     Let’s see some regional examples ------- 

            Euro Zone:

In recent days some of the countries of Europe did well. Their economic condition is growing fast. Over last 15 months, the economic confidence is enhancing among the investors of euro area. As a result their currency rate is going higher against the other country’s currencies.

At present their consumer sentiment is much higher and highest after April of last year. The currency rate of EURO is now getting stronger against YEN. It is also going stronger against USD. So Forex is influencing by the world’s economic condition.

 JAPAN: 

JPY was stronger against USD over a month. But last week after the victory of LDP, JPY lost its currency rate seriously against USD. I can mention the price of JPY was highest 100.44 against USD. It’s a serious position. And till now USD is stronger against JPY.

  

           AUSTRALIA:

Australia’s currency is now going through a critical situation. Money inflation is a severe problem of there now. Due to increase of inflation and decrease export in recent days, their economic condition is suffering and currency rate already gone down. AUD has lost its currency rate against most of the currencies.

  

            CANADA:

In recent days, there have been positive changes in Canada’s economy. Their export is growing and their currency rate is enhancing. Canadian currency is going to be stronger against almost all currencies. This is because of their economic growth.

  

            AMERICA:

In recent days American dollar is showing lower rate against most of the currencies. But in case of a few currencies, it is stronger.

Actually if you want to invest in Forex trading, you must have confidence, and which depends on economic condition. So if the economic condition remains good, it will influence Forex trading and increase currency rate. 

Analysis to Achieve Goal

From the last some of the days Forex market has been running unusually. Due to decreasing the value of the biggest currency – USD, currency market is now more unpredictable than before. So if you want to invest in this condition, you have to be more careful. To do so, you can gather more information about economical condition. Here, forex tutorials are helpful.

As a Forex trader, you must be up date with latest news. And if you want to achieve your expected goal, there is no alternative way to latest news. You have to go with the latest information of world economy to take a better investment decision. Actually a right investment decision depends on right information to a large extent. So you have to learn forex at first.

If you able to make a good analysis and apply your personal skill and sixth sense perfectly, you will be the gainer. To do so, you can take a forex training. Here, analysis depends on collected information and the information should be up date. Old information could affect badly to your decision. So you have to emphasize on latest Forex trading news.

Some Latest News:

• USD: In recent days USD went back foot in the comparison with others currencies. Till now the fall of USD price is staying strongly. Actually this is a tough time for USD. In the last week it was on back foot and now this is continuing. 

Actually, the value decreasing process of USD is continuing over five weeks. Though the first of US GDP was good, the currency was low price. And now they are going to announce the second quarter of their GDP. And they are expecting they will be able to attract the consumers and currency rate will be high against the others currencies. Now the USD is suffering from the low rate from all of the currencies. 

Fed will announce GDP of their second quarter tomorrow. And they have emphasized on consumers friendly announcement. Their expectation is that it will make confident the investors the price will grow. 

• AUD: Now Australia is facing inflation. Its bad effect has already fallen in Australia’s economy. Their currency has rate already gone down. China has already decreased their demand on Australia’s commodity. As a result the inflation has appeared. In this situation RBA has announced of the cut of interest rate. The top central banker of Australia said it (inflation) will not affect the cut of interest and local currency could fall. In this situation, an investor should take analytical decision for buying AUD pair.

On the other hand Japan’s Yen lost its currency 0.4 percent per dollar in Tokyo at 1.47 pm at the same time it lost the same rate against euro its price.

In case of Canadian dollar; it has been increasing its currency rate for one month. And its rate is increasing against majority percent of currencies. So you can think it as a positive investment pair.

Actually this is too difficult to predict Forex trading. But I ensure you, if you take decision confidently by making analysis skillfully with forex trading news, you will gain.

A Guide To Hiring A forex broker

Maximum new investors don’t know how they should start in forex trading. That’s why, as a new comer need analytical support. At the beginning you can hire a forex broker. But you can face complexity here too. Because forex market is fully unknown place to you. So you need guide. No problem, you can go through the following steps to hire a professional and perfect broker for you.

Professionalism and duration:

At first you have to consider the professionalism and duration of the brokers business. Highly professional brokers are able to return you benefit mostly. So you can depend on them. You can realize their professionalism considering their manner, demand, customer dealing, payment method etc. Then you have to consider their business duration. It is big factor. Some brokers are short experienced. You should avoid them, because you are a new investor. You can seek for the brokers who are doing this job for a few years and dealing with big clients. Actually the brokers are bearing good reviews, you can go there. This will help you learn about forex and gain profits.

Expense:

Any kind of purchasing decision depends on costs. If you think the ROI (Return on Investment) is favorable then you can purchase something otherwise you won’t buy that. In case of hiring forex broker, you have to consider the expense of the broker. Generally the brokers demand different kinds of charges and commissions for trading. It depends on trades, spreads etc. Where you find the ROI is favorable, make investment there. Maximum time commission rate is appeared as the most important factor for choosing brokers.

Familiarity and fame:

Famous brokers are mostly familiar among the investors. Client’s friendly and logical transactions make a broker successful in forex market. Then a broker gain familiarity and fame. So you should go to a successful broker, who is bearing reputation.

You shouldn’t think for low cost. Because, new and inexperienced brokers could harm your total investment. If you hire a costly and experienced broker, you will learn a lot of valuable things about trading. So think deeply before taking a big decision.

Trading decision:

Selecting a currency pair is opening a new trading window. You should consider the explanation ability of the broker with your own decision to him or her for selecting a new pair. If he or she is bearing good implementation ability, you can hire him or her.

Technology:

Forex trading is a business which depends on technology. So you have to consider the technological support or software capability of the broker. He or she must be smooth in handling software.

Clients dealing:

The most important point is the clients dealing. Sometimes phony brokers are found. They could harm you and your investment. So before taking decision, you have to observe the clients dealing in your own eyes. Some brokers are much technical and try to make delay willingly for returning profit. So you have to be careful about them.

At first you can face difficulty here, but with the passing of time you will be able to go with them normally. For the first decision, you can follow the above steps. Hope you will get the highest success in forex trading.

Ways to reduce risks in Forex Trading

Risk is one of the main factors in forex trading. Because this is very risky money market. If you want success here, you have to overcome all risks. And you can reduce your risks by following some rules and taking some steps.

     Pre-trading tasks:

• Market analysis: You can analyze market condition. To do so you have to draw together much information of market’s previous statistics and present flow. In this way you will know the weaver and variance of market. It will help you to reduce risk. 
• Risk management: If you have clear idea about risk management, it will be easy to reduce your investment risk in forex trading. Risk management is consisted with theoretical and mathematical process. So it helps to reduce risk by showing mathematical statistics with theoretical analysis. 
• Experience gather: In forex trading experience does the main tasks. If you are a new investor in forex trading, you must gather experience. You can gather experience with the passage of time with forex. But the perfect way is discussion. You can discuss with some experienced and successful traders. They will show you the real way and share their practical experience. Here you can have idea of risk reduction.

Trading time tasks:

     What you did before trading, it doesn’t matter. If you do any wrong in trading time, you have to pay for this. So trading time tasks are mainly important.   

• Risk assumption: You have to assume risk and explain it in mathematical way. Let’s see some rules
• Ratio analysis application: Imagine you invest $500 @ 1.5963 assuming highest price 1.5983 and lowest price 1.5943. Here probability is +/-20 pips. So ratio is 1:1.

Price                                  Highest price              Lowest Price               Ratio

1.5963                               1.5983                         1.5943                         1:1

1.5963                               1.5993                         1.5948                         2:1

1.5963                               1.5978                         1.5933                         1:2

 In the second raw we can see profit could be twice than loss probability. So here profit ratio is positive. In the 3^rd raw it is opposite to second raw. If you analyze ratio and follow the 3^rd raw, your investment will reduce risk. 

• Stop trading: It is situational task. Imagine your trade is @ 1.5963 and you want to stop order if the price goes under 1.5943 or your trading limit is 20 pips. It will automatically stop your order if the price crosses your limit. 
• Much thinking: If you think much and take trade decision on the basis of chart and condition your risk will reduce. 
•  Apply intelligence: At the every step you can apply your intelligence and sharp sixth sense. As a result you will be able to reduce your investing risk.

Actually every step is very important in forex trading. Because it will affect your capital. So take decision intelligently with analyzing statics and deep thinking. And reduce your trading risk. Hope you will be able and get success.

The Best Forex Trading Tools

Due to development of technological tools, forex trading is going to be more dependable on technology. And gradually a lot of technological tools are adding here. That’s why, if you want to be update with forex trading, you must be skilled with the latest and necessary tools.

     You can find out a lot of trading tools in market. But you have to use the most effective tools to be successful. Considering your necessity, I collected information about the best tools and the tools are using the successful traders and they previously used. Let’s be introduce with these……..

• Autochartist: Autochartist is one of the most popular tools in forex trading. It finds out a huge amount price data and predicts market condition. Basically it collects data according to predefined instruction and shows it from chart. About 70% forecast is proved correct of it. 
• Moving Average:  This is very effective to know about market trend. It also shows you whether the market is neutral or bearing other conditions - such as bearish or bullish. It shows markets probable highest price and the resistance level. Actually it shows the average movement of market. 
• CPR: Candlestick Pattern Recognition is an indicator for showing custom charts in forex trading. It also shows the markets entry points and different time frame values. And you can make important decision seeing CRP result. CRP shows the information below— 

1. Morning Star and Evening Star, 
2. Piercing Line, 
3. Dark Cloud Cover, 
4. Three inside and outside up, 
5. Three inside and outside down, 
6. Three white soldiers and black crows etc.

• Fibonacci Retracement: This is a web bases tool in forex trading. Using this tool you can know the support and resistance level of market. According to the information of it, you can fix an entry and exit point. You can know the lowest and highest market points of a certain day. Actually you can take an effective decision of a certain time using this tool. 
• Economic Calendar: Economic calendar shows the different market situations and its impact on market flow online. It provides the information for a long time. So that it helps to understand the present and future market flow analyzing the previous conditions. 
• Volatility Indicator: If you want to know the market volatility, this indicator will help you perfectly. Such as – certain pair volatility has halved for a certain time. Actually it indicates the most volatile pair which is correlates with the pip value. This is very effective for MT4. And you can easily be informed about the currencies which are facing volatility. 
• Pivots: As technical and analysis tools, pivots indicators are most popular. It shows the daily and weekly pivots as well. It will help you to calculate the resistance and support value and the level of your charts. According to pivots analysis you can make a successful decision.

These trading tools are very effective and helpful. So if you learn these fully, it will help you to gain success in forex trading.

Risk Management and Ways in Forex Trading?

Proper risk management can return your profit rationally. So if you want to invest, you have to calculate the risk behind your investment. As an unpredictable and very risky market, you must learn about risk management in forex trading.

Reason to Risk Management:

      For the following reasons you have to learn about risk management.

• Risk reduction: Without reducing risk from your investment you won’t gain proper profit. So risk reduction is the main reason of learning risk management. 
• Loss control: Controlling on loss largely depends on risk management. If you want to set up total control over your investment and make a reasonable risk on loss, you have to gain excellent capability of risk management. That’s why you should know risk management. 
• Profitability index: Success depends on profit. If you want to grow the highest profit, you have to compare profitability index with risk margin to take better decision. And this is possible if you know the risk management totally. So you should learn risk management. 
• Calculating technical terms: Percentage of risk and pips are vital technical terms in forex trading. If you want to assume these perfectly you have to know about risk management. Risk management shows the variables of risk and assumption methods. 
• Stop loss: According to previously taken risk management terms, you can stop your loss in a margin. So that the amount of loss will confined to a level. 
• Risk ratio: Investment depends on risk ratio. If the risk ratio is much higher than your investing amount, you should deny it. Otherwise it could harm your total investment. If you want to calculate the risk ratio and apply it to your business, you must know risk management. So you should learn risk management. 
• Analysis of overall gain: Different analytical terms and components are to analyze to be success in forex trading. Risk terms are mostly important to catch the expectation. That’s why you need to learn risk management.

Ways to risk management:

      You can follow various risk management methods. The most effective methods are as follows. 

•  Stop Orders: This is the vital method of risk management. In this way you can stop your order in a certain situation. For example – your trade was EUR/USD @1.2579 for $20000. And you fixed if the price will go under 50 pips it will stop. As a result if the price will go 1.2519 it will automatically stop the trade. 
• Percentage: You can fix your loss percentage 2 or 6 as you want. 2% is more effective than any other. Assume your investment is $20000 and you don’t want to take risk under 2% or 20000 x 2/100 = $400. 
•  Leverage: This is very effective when your capital is small. If you fix your leverage is 100:1 and your deposited amount is $1000 it can be gone up to million dollars. Here your loss merging is 1%. If your amounts face 1% loss, it will wipe out your total deposited amount.

Risk management is a crucial point in forex trading. So you have to learn this perfectly and apply this technically.

Emotions and Control it in Forex Trading

Where there is money there is emotions. Normally your emotions can work for forex trading. But you have to give up emotions to catch success.

As a realm of gambler big and successful traders also suffer from emotion. But they technically avoid it and make successful trades. At first you have to know the different emotions of forex trading and then it will be possible for you to avoid these.

    Emotions: 

1. Over confidence: Some traders feel over confidence. Most of the times they focus on their personal opinion and even don’t observe the chart. That’s why they don’t feel for thinking before trading. As a result maximum time they lose profit. Sometimes they spend a big amount for one trade. If they lose, they lose for a big amount. But it is possible to reduce risk by trading various small amounts. Over confident persons are bearing high risk taking mentality. In case of forex trading, without considering the situation, taking high risk is nothing but foolish. 
2.  Lack of confidence: If you don’t have confidence, you have to suffer here. If you don’t have the metal power for taking risk, it won’t be easy to gain money. Actually you have to understand the reality and no need to feel fear.
3. Greed: Greed is a vital emotion for losing money. So you have to give up greed. This place is for money. But if you become greedy, you will take wrong decision and lose capital.

    Ways to control Emotions: Actually this is not easy to avoid emotions. But if you follow the following tasks, hope you will set up control on emotions for forex trading. 

1.  Follow up: You have to observe the market situation and follow up the latest news for a long time. Try to understand and point out the secret of it. To do so you can open a demo account. Learn the technical terms and find out the tricks. Observe the successful traders. Then you can think for buying. 
2.  Make a research: Make a personal research of forex. By the passing of time with forex you will gather important information and then try to explain the incidents personally. It will increase your reality knowledge and will help to avoid emotions. 
3.  Comparison ROI: Before making a trade you can compare probable ROI (Return on Investment) with possibility of Risk. It will help you to take decision logically. 
4.  Small trade: You can divide your amount into a lot of small trades. So your risk won’t be confined to a one trade and profit probability will increase into various trades. 
5.  Low risk: You can select low risk pairs. But you have to do it confidently, without having any hesitation. 
6.  Long term plan: You have to make a master plan and some small and flexible plan. If you do according to your plan, no emotions will affect your trade. 
7.  Goal oriented: You have to be planned and goal oriented. So you need to stick to your plan until success. And it will remove your instant emotions.

Forex trading is like gambling. So, sharp thinking and instant intelligence has to apply here to gain success. And that’s why you have to avoid emotion. But following above rules you can give up your emotions and get success