Forex Trading And Analysis

I've become a little frustrated with most of news sources out there. If you've been an active forex trader for any length of time you'll notice that talking heads are always trying to tell you why something happened.

That's really nice, and might possibly help you learn about various financial interactions, but it's absolutely useless from a trading point of view. If you are trading you need to figure out what's going to happen -- not what just happened. Check out this video (complete with atrociously low audio levels).

This type of analysis is unlikely to help you with your fx trading tomorrow. Generally, how the markets will move tomorrow, based on tomorrow's news, is not something you'll get from any of the gurus and talking heads.

On the other hand useful analysis will be too slow to be meaningful. For example, I'm very confident the world economy will eventually recover. When that happens we'll have a period of high interest rates as rising commodity prices drive inflation. Guess what? This will mean that carry trades pairs will end up at much higher prices. Unfortunately, I can't tell you when the world is going to focus on this. Generally, not before the money moves from wherever it is to wherever it is finally going to end up.

The closest thing to predictive analysis, or something you can really use to drive your forex trades, is technical analysis. Charting. Something which gets very little respect in some circles. Many people don't understand it and many others discount it because it isn't able to make perfectly accurate predictions. Technical analysis does not have to be a perfect tool for prediction. It merely has to increase the odds that your fx positions end up earning you a profit.

Choosing A Day Trading System

CocupEveryone that aspires to trade in the markets should select a consistent trading system. Below are the principles for examining a trading system. How many of these principles do you adopt with your current approach?

• To corroborate a trading system you need a minimum of 50 trades in the test. You should also have at least 75 ticks (overall market trades) in a bar to have a sound charting approach.
• Calculate your average profit per trade, the average loss, and the percentage of your all wins and losses.
• The biggest winning trade should not surpass 50 of the net profit. Otherwise the random lucky trade factor will throw off your system results.
• What is the Expectancy Ratio of your method? If it does not surpass 2 to 1 with a 50 but makes money, can you psychologically trade it and except all the losses necessary to stick with the system?
• As Van K. Tharp, Mark Douglas, Bill Williams, and Bent Steenbarger the Market Wizards all say, you trade your beliefs about the market. What does your trading system expose about your trading mentality? Does your system lead to doubt or confidence?
• Compare your trading system to other types of investments. Which system has the best Internal Rate of Return with the least risk? At minimum you need at least four times the return of a low risk investment (T-Bills) to make your system worth trading.
  

What is the best approach to build a solid trading system? Just like you build anything else. You first start with a goal, and apply the principles to reach the end result. Then you create a plan to achieve that goal, which includes all the risks, rewards, terms and conditions necessary to reach your goal.

The missing element is often the next step: execute the plan, closely observe your results, and make necessary modifications or changes to the system. The last step is to observe your emotions to see if you can accurately trade these signals, and play the probabilities for gains versus losses as you have laid out your system.

Mental control is the biggest challenge of any trading system. Have a plan, and trade your plan. This is the best path to achieve your goals.

What You Should Know About it

There are a lot of opportunities online now a day where one can make a living and in some cases make a serious income which will enable them to quite their day job. These online opportunities include affiliate marketing, multi-level marketing, paid survey, online investment and the list goes on. Among the opportunities, foreign currency exchange or better known as Forex Trading is one that many online income opportunity seekers looking for.

However there are a lot of things and aspects should be considered before one decides to make forex trading as their prime online business. A better understanding of the forex industry and how forex trading operates are important.

Foreign exchange market
Foreign exchange market is the place where currencies are trade. Banks (commercial and central bank) and financial institutions will facilitate the buying and selling of foreign currencies transaction activities here. Other financial institutions include currency speculators, corporations and other institutions.
The main purpose of the forex market is to facilitate international trade and investment. Major currencies traded are US Dollar, Pound Sterling, Euro, Japanese Yen,etc. The continuation growing of the daily volume in global foreign currency exchange market and its related markets have make forex market one of the largest financial market in the world.

Foreign Exchange Rate
Forex rate are determine by floating exchange rate and fixed exchange rate. Fixed foreign exchange rate are decided and fixed by its government. Under floating exchange rate system, forex rate will be fluctuating according to the demand and supply of the particular currency. If the demand (buying) for a certain currency is more than what its supply (selling), its rate will be higher. There are 3 major factors which determine the buying and selling of a currency. There are Economic factors, Political conditions and Market psychology. However, these things tend to be short-term, and don't affect it for long.

Margin Account
To trade in foreign currency exchange, a bond account called margin account should be open. It’s like a saving account where you should deposit certain amount of money in it before you start your forex trading activity. This account will be overseen and monitored by your broker. Different brokers require different amount of margin money to keep your positions open.Normally your broker will not allow you to risk more than what is in your margin account.

How foreign currency is trade
Foreign currency trading occurs when one country's currency is traded for another country's currency at the prevailing exchange rate.Currency is trade in LOTS. Each lot has amount of currency and its trade on a point or pips system. Different currencies have its worth of amount for each point or pips.

Advantages of Forex trading over other types of investment
As compare to other type of investments, Forex trading has the following advantages:
i). Lower margin
ii). No commission and exchange fees
iii). Lower risk
iv). 24 hour market place
v). Free market place

Conclusion
Lots of people make money on online forex trading; some people have become extremely wealthy however as with any online business opportunities, there are no guarantees that you will make money or lose everything you own. You need to be very careful and exercise due diligence. Learn as much as you can about online Forex trading before investing any money and start trading.

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PDA Mobile Forex Trading

Are you PDA users want to monitor the movement and forex trading through your PDA or Pocket PC phone wherever you are and whenever using signal GPRS Packet data or... coming here given a application / software is a file format. CAB and you can download forex trading application for mobile with a free.

Mobile trading (m-trading) — controlling of trading account via mobile devices such a cellular phone or a PDA (Personal Digital Assistant). Wireless access technologies WAP and GPRS provide access to the Internet.

System requirements: PDA, Windows Pocket PC 2002 or higher.

MetaTrader 4 Mobile for Pocket PC program is comparable with full-function trading terminal. You have a possibility of full access to financial markets and making deals from anywhere of the world.Moreover, technical analysis and graphical visualization of financial instruments are available (including off-line mode - without connecting to server). Trade dealing is done with careful observation of confidentiality and is absolutely safe. If required, you always have the history of completed trade deals.


MetaTrader 4 Mobile features:

• sound alerts - there is no need anymore to watch PDA frequently, alerts will inform about changes in the market;Trailing Stops are a technology that allows to drag the current Stop Loss level (SL) of the order automatically following to the moves of the price in the direction of increasing the profit of the order;
• support of 30 technical indicators, among them are Alligator, Bollinger Bands, Ichimoku Kinko Hyo;
• VGA-mode the support of which allows to see much more information on the PDA display having 640x480 resolution;
• multilanguage support allows to switch between languages of the mobile terminal interface and work with all features of the terminal in the native language;
• access to the news flow allows to make reasonable decisions considering the latest events at the world financial markets.
  


Download:
Terminal MetaTrader 4
Download Metatrader4 for PDA (Windows Installer)
Download Metatrader4 for PDA (cab)