JAN 30 GDP Annualized FOMC Rate Decision Expected: 1.2% Expected: -50bp to 3.00% Previous: 4.9% Previous: -75bp to 3.50%(full text retrieval failed)
Wednesday, January 30, 2008
Will The Fed's Rate Decision Support Eur/usd, Treasuries, And The Dow? (daily Fx)
JAN 30 GDP Annualized FOMC Rate Decision Expected: 1.2% Expected: -50bp to 3.00% Previous: 4.9% Previous: -75bp to 3.50%(full text retrieval failed)
Monday, January 14, 2008
Learn More About Forex Trading When The Stock Market Declines
To all readers investing/speculating the stock market, it may be time that you start to take a serious look at the Forex Market. I try to avoid making overall market prediction. But it seems to me that the Stock Market is heading for further decline in 2008. Unless you are into shorting (selling), 2008 may not be a profitable year for people speculating /investing in the stock market. Before the end of 2007, there are many articles that talked about how 2008 is going to be a tough year for the stock market.
These people may be correct in their prediction. You just need to look at the result of the first trading week for the year. Dow Jones fell another 256 points, probably one of the worst first trading week of the year in many years. Nasdaq also fell 3.77%, the biggest point loss in a single day for the index since the market reopened for trading after 9/11. To make matter worse, we are only in January - historically the most optimistic month of the year.
There is simply too much negativity. Consumer debt keeps surging with the help of rising oil price. Housing woes is only starting to riddle its effects on major financial institution and begin to impact the broader US economy. Last Friday jobs report tanked the market and brings up recession talk. When the market believes and is convinced that the risk of US is for real. The market will continue to fall further.
Under such scenario the US dollar is likely to fall as speculators anticipate a series interest rate cuts from the Fed. The only consolation for a weaker greenback is US products become cheaper and more popular overseas.
With so much uncertainty in the stock market, investing/speculating in the Forex market becomes another better option. This is not to say that the Forex Trading is not without risk. In reality, you could lose your pants in Forex Trading if you don't know to control risk.
Comparing with the stock market, Forex market has no such thing as "bull" or "bear" market. In Forex Trading, you could make money in both directions. In the Forex Market, there is of no concern whether the economy is booming or in a recession. For stock trading, most of the profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical - all things that go up must come down, a scenario that we are facing right now. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit.
With the current anticipation of the stock market downturn, it is only time that you should take a serious view of Forex Trading.
Joon Trade is the owner of forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
Article Source: http://EzineArticles.com/?expert=Joon_Trade
These people may be correct in their prediction. You just need to look at the result of the first trading week for the year. Dow Jones fell another 256 points, probably one of the worst first trading week of the year in many years. Nasdaq also fell 3.77%, the biggest point loss in a single day for the index since the market reopened for trading after 9/11. To make matter worse, we are only in January - historically the most optimistic month of the year.
There is simply too much negativity. Consumer debt keeps surging with the help of rising oil price. Housing woes is only starting to riddle its effects on major financial institution and begin to impact the broader US economy. Last Friday jobs report tanked the market and brings up recession talk. When the market believes and is convinced that the risk of US is for real. The market will continue to fall further.
Under such scenario the US dollar is likely to fall as speculators anticipate a series interest rate cuts from the Fed. The only consolation for a weaker greenback is US products become cheaper and more popular overseas.
With so much uncertainty in the stock market, investing/speculating in the Forex market becomes another better option. This is not to say that the Forex Trading is not without risk. In reality, you could lose your pants in Forex Trading if you don't know to control risk.
Comparing with the stock market, Forex market has no such thing as "bull" or "bear" market. In Forex Trading, you could make money in both directions. In the Forex Market, there is of no concern whether the economy is booming or in a recession. For stock trading, most of the profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical - all things that go up must come down, a scenario that we are facing right now. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit.
With the current anticipation of the stock market downturn, it is only time that you should take a serious view of Forex Trading.
Joon Trade is the owner of forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
Article Source: http://EzineArticles.com/?expert=Joon_Trade
Saturday, January 12, 2008
Maximise Profits With The ICWR Forex Strategy
ICWR stands means Impulsive/Corrective Wave Retracement. The ICWR forex system is a list of rules that traders use to determine when to enter and exit the forex market.
The ICWR forex system is based on a combination of the Elliott Wave Theory and Fibonacci ratios. Traders have found that corrective waves have a inclination to retrace the preceding impulsive waves by a Fibonacci ratio.
So what are corrective waves? Corrective waves are short-term corrections that go against the long-term market trend. The major waves in in alignment with the long-term market are referred to as impulsive waves. Bring up a chart of a major currency (say the GBP/USD) with the interval set on daily and you will easily see the long-term trend, along with several corrective waves.
The most recurring Fibonacci ratios observed in the ICWR forex system are 25%, 38%, 50%, 61% and 75%.
Many traders use the ICWR forex system with an existing entry system to assist with their exit strategy to squeeze out the most gain possible from the trade. Many traders have found that managing a trade and determining the exit point is more important than choosing an entry point and direction to trade in.
The ICWR forex system is very simple to use. Simply open up a chart of an interval you wish to trade, find the preceding impulsive movement (in the direction of the long-term trend) and calculate the Fibonacci ratios. Now mark the Fibonacci ratios on your chart. For example if the preceding impulsive movement UP was 100 pips, for the Fibonacci ratio of 25% you will place a line 25 pips below the high of the impulsive movement. Many charting packages come with a Fibonacci function built in, calculating the ratios and marking the lines for you.
These Fibonacci ratios can then be used in a number of ways: - go your stop loss with each impulsive movement in your favor to maximize gain and minimize risk (the 75% ratio is commonly used for this) - determine when the corrective movement is probable to finish in order to determine good entry points.
Traders often tend to panic when their trade is in gain and it begins to go against them. By using the ICWR forex system you will be ready to ride out the corrective waves in order to squeeze out the most gain from your trades.
For more information on trading forex visit the link below.
Jon is the owner of iBlogForex, a blog about every aspect of the Forex market including Forex trading methods and strategies.
Article Source: http://EzineArticles.com/?expert=Jon_Provencher
The ICWR forex system is based on a combination of the Elliott Wave Theory and Fibonacci ratios. Traders have found that corrective waves have a inclination to retrace the preceding impulsive waves by a Fibonacci ratio.
So what are corrective waves? Corrective waves are short-term corrections that go against the long-term market trend. The major waves in in alignment with the long-term market are referred to as impulsive waves. Bring up a chart of a major currency (say the GBP/USD) with the interval set on daily and you will easily see the long-term trend, along with several corrective waves.
The most recurring Fibonacci ratios observed in the ICWR forex system are 25%, 38%, 50%, 61% and 75%.
Many traders use the ICWR forex system with an existing entry system to assist with their exit strategy to squeeze out the most gain possible from the trade. Many traders have found that managing a trade and determining the exit point is more important than choosing an entry point and direction to trade in.
The ICWR forex system is very simple to use. Simply open up a chart of an interval you wish to trade, find the preceding impulsive movement (in the direction of the long-term trend) and calculate the Fibonacci ratios. Now mark the Fibonacci ratios on your chart. For example if the preceding impulsive movement UP was 100 pips, for the Fibonacci ratio of 25% you will place a line 25 pips below the high of the impulsive movement. Many charting packages come with a Fibonacci function built in, calculating the ratios and marking the lines for you.
These Fibonacci ratios can then be used in a number of ways: - go your stop loss with each impulsive movement in your favor to maximize gain and minimize risk (the 75% ratio is commonly used for this) - determine when the corrective movement is probable to finish in order to determine good entry points.
Traders often tend to panic when their trade is in gain and it begins to go against them. By using the ICWR forex system you will be ready to ride out the corrective waves in order to squeeze out the most gain from your trades.
For more information on trading forex visit the link below.
Jon is the owner of iBlogForex, a blog about every aspect of the Forex market including Forex trading methods and strategies.
Article Source: http://EzineArticles.com/?expert=Jon_Provencher
Friday, January 11, 2008
Forex Trading Is for the Serious Only
When I knew little about investing, I still knew about FX. When I was studying to be an MBA in Information Systems and Finance, I came across the wondrous world of FX. Which is a fancy term for Foreign Exchange. A nifty bit of jargon would be the age old word "currency".
That this market presents to many unwilling bed-fellows is an interesting tidbit that gets traders excited. Compare that to the stock market where everyone is a willing participant. In the marketplace for foreign exchange, there are players such as banks that need to participate, as they have to clear international deals and international money transactions.
Compared to any other single factor, this is what drives the money marketplacer. Like in any moderately sophisticated trading floor, the objective remains the same: find deals that can rapidly be converted into winning positions, usually within the day. This need to square off within one day is especially felt as there is a serious cost of carry and that margins need to be marked to the market at the end of each trading day.
To give you an idea of what we are dealing with here, let me point out that there never really is an end to the day of the currency market As the earth rotates, there is someplace somewhere on the globe that is just encountering sunrise at any given point of time. All the same, there are a few major markets, London being at their center, where currency deals take place in the largest numbers.
Back to trading related discussion: foreign currency dealers are constantly on the lookout for situations where the pigs, i.e., people who must trade, will somehow subsidize their trade and help them turn a neat little profit.
This piece of wishful thinking has made many a trader's life unhappy, but at the same time, I know of dozens of rather disciplined trade-professionals who have built themselves a neat little fortune trading in these Dollars, and Pounds, and Yens, and Euros, and Rupees, and Cruzeros, and god alone knows what other currency.
Sounds strange, but not all dollars are created equal. Are we talking about the dollar from the United States of America? Or is it from the down under Australia? Or is it emblazoned with the roaring lion from Singapore?
It takes far more than preliminary analysis to get started on quantifying returns on foreign currencies. This does not mean that exchange rates cannot be forecasted. For instance, I am writing this article at the very end of 2007. I can bet that the Indian Rupee will continue to secularly rise against the US Dollar for the next few years, say at least for the next three years.
So, there, send in your millions to me. Just kidding Well, the rise is going to be so little and over such a long period of time, that I will not be able to make any real trading opportunity based on my forecast. And if you are reading this, please note that I am not giving you professional advice, but rather, thinking aloud.
If nothing else, I hope this article piqued your interest in foreign currency.
Want to know more? I recommend the forex trading blog. Regularly updated Market Wrap helps make for some easy forex trading.
Article Source: http://EzineArticles.com/?expert=Ajeet_Khurana
That this market presents to many unwilling bed-fellows is an interesting tidbit that gets traders excited. Compare that to the stock market where everyone is a willing participant. In the marketplace for foreign exchange, there are players such as banks that need to participate, as they have to clear international deals and international money transactions.
Compared to any other single factor, this is what drives the money marketplacer. Like in any moderately sophisticated trading floor, the objective remains the same: find deals that can rapidly be converted into winning positions, usually within the day. This need to square off within one day is especially felt as there is a serious cost of carry and that margins need to be marked to the market at the end of each trading day.
To give you an idea of what we are dealing with here, let me point out that there never really is an end to the day of the currency market As the earth rotates, there is someplace somewhere on the globe that is just encountering sunrise at any given point of time. All the same, there are a few major markets, London being at their center, where currency deals take place in the largest numbers.
Back to trading related discussion: foreign currency dealers are constantly on the lookout for situations where the pigs, i.e., people who must trade, will somehow subsidize their trade and help them turn a neat little profit.
This piece of wishful thinking has made many a trader's life unhappy, but at the same time, I know of dozens of rather disciplined trade-professionals who have built themselves a neat little fortune trading in these Dollars, and Pounds, and Yens, and Euros, and Rupees, and Cruzeros, and god alone knows what other currency.
Sounds strange, but not all dollars are created equal. Are we talking about the dollar from the United States of America? Or is it from the down under Australia? Or is it emblazoned with the roaring lion from Singapore?
It takes far more than preliminary analysis to get started on quantifying returns on foreign currencies. This does not mean that exchange rates cannot be forecasted. For instance, I am writing this article at the very end of 2007. I can bet that the Indian Rupee will continue to secularly rise against the US Dollar for the next few years, say at least for the next three years.
So, there, send in your millions to me. Just kidding Well, the rise is going to be so little and over such a long period of time, that I will not be able to make any real trading opportunity based on my forecast. And if you are reading this, please note that I am not giving you professional advice, but rather, thinking aloud.
If nothing else, I hope this article piqued your interest in foreign currency.
Want to know more? I recommend the forex trading blog. Regularly updated Market Wrap helps make for some easy forex trading.
Article Source: http://EzineArticles.com/?expert=Ajeet_Khurana
Thursday, January 10, 2008
Forex Trading - How to Get Started
Forex trading is a great way to earn money from home. Put world economics to work for you with a good computer program and a little bit of knowledge. Forex trading will change your life and your finances if you learn the secrets of the game. If done properly, forex trading is a relatively low risk form of investment that offers potential for high returns. With a little luck and some great software, it is possible to make thousands of dollars in one day with forex trading.
Essentially, forex trading is an industry term used to describe the trading of world currencies. It is also known as foreign exchange or simply FX. Some avid and experienced stock traders are unfamiliar with the inner workings of forex trading. The forex market as we know it is still young; having formed in the 1970's when exchange rates and floating currencies were introduced. There is no daily opening and closing bell, since its market is open 24 hours a day from 5:00 p.m. ET on Sunday until 4:00 p.m. ET. Also, there is not a central location for forex trade. Instead, forex business is conducted with electronic communication networks in various markets around the world.
Obviously, some are successful while others are not when it comes to forex trading. The key is knowledge, but how can you learn the industry's secrets without clearing out your bank account with trial and error? Find a computer program you trust and let it do the thinking for you. Make an extraordinary living working from home with forex trading and the right tools.
You need a trading strategy before you get started. Using software makes your strategy much easier to follow. Trading is not gambling. You do not want to end up in the fifty percent of people that lose money in the long run. In order to be profitable, you need a solid set of rules. Consistency is key and using a computer program ensures that rules will be followed. Computer software also takes the guesswork out of the process. You won't be hindered by self-doubt, stress or fear. The computer takes the emotions out of your trades: and that will be better on your nerves and your bottom line.
Selecting forex software is a challenge. You need to find a program that is easy to use, but it cannot be too simple. If it is overly simple, it likely won't be effective or customizable. Make sure you understand the software before you get up and trading. Use the demo feature until you feel comfortable trading actual money. Make sure you fully understand the charts that your software generates. Pay keen attention to your charts. They will give you a decided advantage if you put them to work for you.
When you are ready to get started using your software with actual cash, choose a sum of money for your initial investment. You need at least $500 to get started. However, a few thousand dollars is optimal if you have enough capital. Starting with the minimum amount means you will only be able to trade forex in small share lot sizes. Low trading capital puts you at a disadvantage initially, but still be able to get started even if you don't have thousands of dollars to invest up front.
Make an effort to learn about foreign currencies. Take your work seriously and do your homework. Keep up to date by following market news about the Yen and the Euro. Read up on financial blogs and participate in chats or forums. There are many valuable research tools online. You just have to seek them out. Before you know it, you'll have a lucrative home business in forex exchange if you play your cards right.
Diana Ajih is a website owner and a young online business entrepreneur. For more information on Forex, work from home opportunities, SEO, affiliate marketing, and other online money making opportunities, find it at http://diana67.blogspot.com/
Article Source: http://EzineArticles.com/?expert=Diana_Ajih
Essentially, forex trading is an industry term used to describe the trading of world currencies. It is also known as foreign exchange or simply FX. Some avid and experienced stock traders are unfamiliar with the inner workings of forex trading. The forex market as we know it is still young; having formed in the 1970's when exchange rates and floating currencies were introduced. There is no daily opening and closing bell, since its market is open 24 hours a day from 5:00 p.m. ET on Sunday until 4:00 p.m. ET. Also, there is not a central location for forex trade. Instead, forex business is conducted with electronic communication networks in various markets around the world.
Obviously, some are successful while others are not when it comes to forex trading. The key is knowledge, but how can you learn the industry's secrets without clearing out your bank account with trial and error? Find a computer program you trust and let it do the thinking for you. Make an extraordinary living working from home with forex trading and the right tools.
You need a trading strategy before you get started. Using software makes your strategy much easier to follow. Trading is not gambling. You do not want to end up in the fifty percent of people that lose money in the long run. In order to be profitable, you need a solid set of rules. Consistency is key and using a computer program ensures that rules will be followed. Computer software also takes the guesswork out of the process. You won't be hindered by self-doubt, stress or fear. The computer takes the emotions out of your trades: and that will be better on your nerves and your bottom line.
Selecting forex software is a challenge. You need to find a program that is easy to use, but it cannot be too simple. If it is overly simple, it likely won't be effective or customizable. Make sure you understand the software before you get up and trading. Use the demo feature until you feel comfortable trading actual money. Make sure you fully understand the charts that your software generates. Pay keen attention to your charts. They will give you a decided advantage if you put them to work for you.
When you are ready to get started using your software with actual cash, choose a sum of money for your initial investment. You need at least $500 to get started. However, a few thousand dollars is optimal if you have enough capital. Starting with the minimum amount means you will only be able to trade forex in small share lot sizes. Low trading capital puts you at a disadvantage initially, but still be able to get started even if you don't have thousands of dollars to invest up front.
Make an effort to learn about foreign currencies. Take your work seriously and do your homework. Keep up to date by following market news about the Yen and the Euro. Read up on financial blogs and participate in chats or forums. There are many valuable research tools online. You just have to seek them out. Before you know it, you'll have a lucrative home business in forex exchange if you play your cards right.
Diana Ajih is a website owner and a young online business entrepreneur. For more information on Forex, work from home opportunities, SEO, affiliate marketing, and other online money making opportunities, find it at http://diana67.blogspot.com/
Article Source: http://EzineArticles.com/?expert=Diana_Ajih
Wednesday, January 9, 2008
Introduction to The Psychology of Trading "IN THE ZONE"
Most amateur investors will bail out of an investment program after three straight losses.How you handle losing trades psychologically is a cornerstone to your ability to prosper in the makets. Losing properly (by losing small and continuing to makeyour trades) makes winning possible.You have to learn to accept your losses, because if you're not willing to take the chance that a trade could lose a pre-defined amount (by using a stop), you will be afraid to trade or will be scared out of a good position as soon as you get a small profit.This defeats the goal to score big when you are right. A successful trader's mindset must accept losses as a necessary and beneficial part of the trading process when handled properly.You must have the discipline to always cut your losses or keep them small. You must resist the temptation to say to yourself "It will come back". That type of thinking has ruined many traders.This is the main thing that will allow you to stay in the game long enough to become successful. If you have discipline and patience, the end result will pay off for you. After all, this is the greatest game in the world, and it's the fastest way to wealth!When I'm in the zone as a trader, I am totally focused and absorbed in the moment. Time seems to expand, my mind is clear, and I know what is coming next. My indicators speak clearly to me and I obey them automatically.And being a part of this "now" moment is what makes me, as a trader, perform at the highest level. My ego is not dreaming of riches or fretting over bills to pay - it's just along for the ride. My trading is not tied to my self-worth as a person.You will reach your trading goals by increments - once you accomplish one goal, you celebrate that success and then set another higher goal.Peak experiences seem to occur often in what many individuals call "the zone". "The zone" is a state of transcendental well-being, an altered sense of time, orbeing on a high, a state of focused energy, a euphoric state of optimal performance, exhilarating, uplifting, with a sense of mastery and control and invincibility.Others describe the zone as radiant happiness, laser-sharp intuition, a total absorption in the present moment, with no self-consciousness or distractions. This state of mind has been called "intrinsically rewarding" because it epitomizes the love for the game itself, and not so much the outcome. All great traders have a basic love for the game itself because the emotional rewards are so great.The zone is a rarely achieved psychological state, but once you have been there, you will want to return to the zone again.One of the keys as a trader is that you must spend the time necessary to make trading skills "automatic" and create winning trading habits. Preparation andpractice make for proper skill development. By making these actions automatic, the mind can be totally absorbed within the zone.What is the key to success? Dedication. The more you practice, the better you get. And you MUST believe in yourself and your ability to succeed. Keep your thoughts and behaviors positive, and you will increase your odds of a favorable outcome in your trading.Trading is an art form that can be developed with time and plenty of practice.Go slow, trade with caution, obey the indicators, and only trade when you're not tired or feeling stress. Source: http://www.articlecircle.com/ - Free Articles Directory
About the AuthorCynthia Macy is the co-author of 3 forex training ebooks. For more comprehensive trading information, visit her other websites at: http://www.professionalforextradingonline.info http://www.successtrading2000.com/forex http://www.shortterminvestingsite.com http://www.daytrade-forex.com
About the AuthorCynthia Macy is the co-author of 3 forex training ebooks. For more comprehensive trading information, visit her other websites at: http://www.professionalforextradingonline.info http://www.successtrading2000.com/forex http://www.shortterminvestingsite.com http://www.daytrade-forex.com
Euro Key Level Economic News Release Trading Strategy
Euro Key Level Economic News Release Trading StrategyForex traders know the importance of economic news releases and how that effects the exchange rate. A positive or negative news announcement in the US morning session can send the EUR/USD rate up or down extremely fast! One way to capture these large moves is to use ENTRY STOP ORDERS. Entry stop orders are an excellent way to get into a trade long or short AUTOMATICALLY. Often if the market is moving extremely fast (due to an economic news release or geopolitical event) and you want to get into a trade, itis extremely difficult to get the price you click (live market order) because the exchange rate is moving up or down so fast. It is like trying to jump on a train that is moving at full speed. An entry stop buy or sell order places an order with the dealing desk of your Forex clearing house to execute your order when the exchange rate touches the level you set the order at. The CMS VT platform guarantees that these types of orders will be filled. The following link outlines the economic news releases for the week. I find it very helpful because it rates every release in terms of importance on a grading scale of A-D. A denotes very important down to D with little significance to the markets. It even lists what the market expects to happen with the briefing.com forecast. Click Here for the Yahoo Finance Economic Calendar: http://biz.yahoo.com/c/e.html1. Check the economic Calendar2. Set your entry stop buy or sell at a key level 15-30 minutes before the announcement is released. Set your stop and limit on your order by right clicking the order when it appears on your VT platform.3. You can also "straddle" the price movement by placing a long and short entry stop or sell order (and subsequent stops) if you aren't sure which direction the news release will send the price. The above report was taken from the Euro Fractal Trading system, written by Erol Bortucene of the Day Trade Forex Team. This unique approach to day trading the EUR/USD involves using financial Fractals and no other technical indicators, as outlined in the Euro Fractal Trading System. The Euro Fractal Trading System also teaches how to use key price levels to take entry and exit positions, thus taking the guesswork out of trading. Source: http://www.articlecircle.com/ - Free Articles Directory
About the AuthorCynthia Macy has been trading various markets for over 12 years but now concentrates on the forex market and is the co-author of 3 forex training ebooks. For more comprehensive trading information, visit her other websites at: http://www.professionalforextradingonline.info http://www.successtrading2000.com/forex http://www.shortterminvestingsite.com http://www.daytrade-forex.com http://www.daytradeforex.com/products.htm
About the AuthorCynthia Macy has been trading various markets for over 12 years but now concentrates on the forex market and is the co-author of 3 forex training ebooks. For more comprehensive trading information, visit her other websites at: http://www.professionalforextradingonline.info http://www.successtrading2000.com/forex http://www.shortterminvestingsite.com http://www.daytrade-forex.com http://www.daytradeforex.com/products.htm
Tuesday, January 8, 2008
Is It Possible To Trade Forex Without Using Technical Indicators?
If you talk to any forex trader, you will find that the vast majority of them use technical indicators to make their trading decisions. However this does not necessarily mean that you need be an expert in technical analysis in order to be a profitable forex trader. Far from it in fact.
There's no question that technical analysis can help you greatly in making trading decisions, and many forex traders would be hopelessly stuck without it, but it is still possible to make good profits without using any technical indicators at all.
For instance you could decide to take a longer-term view and use fundamental analysis to help you make your trading decisions. This way you don't need to be so precise about your entry points and you can sit back and watch your position unfold without having to be constantly watching the markets all day.
This type of trading requires you to be able to interpret the current economic climate and to some extent predict future developments, such as which way interest rates will move in future months.
A classic case of someone who was successful using this method is George Soros, who took a now infamous position on the British pound in 1992. He shorted the pound heavily shortly before the Bank of England withdrew the pound from the European Exchange Rate Mechanism and pocketed over $1bn. This was obviously based on economic factors rather than any fancy technical indicators such as an oversold RSI or MACD crossover.
So you can definitely make big profits from long-term fundamental analysis, but if you are more of a short-term trader then there are still profits to be made. For example, you could look to adopt a strategy based on trading the economic data releases.
This is quite difficult to do, and is not something I'm particularly good at, but it is definitely possible to make profits this way. Indeed I know a few traders who trade the news releases for a living. The major announcements can create wild swings in a currency's price so there are plenty of opportunities to trade these volatile movements in price.
Finally, if fundamental analysis and technical analysis aren't your thing, then you can always use the only meaningful indicator you really need - price. After all the price history tells you how the currency has behaved in the past, and if read correctly can be used to predict future movements as well.
For details of three profitable price-driven forex trading systems please visit:
http://www.topforextradingsystem.com/
Article Source: http://EzineArticles.com/?expert=James_Woolley
There's no question that technical analysis can help you greatly in making trading decisions, and many forex traders would be hopelessly stuck without it, but it is still possible to make good profits without using any technical indicators at all.
For instance you could decide to take a longer-term view and use fundamental analysis to help you make your trading decisions. This way you don't need to be so precise about your entry points and you can sit back and watch your position unfold without having to be constantly watching the markets all day.
This type of trading requires you to be able to interpret the current economic climate and to some extent predict future developments, such as which way interest rates will move in future months.
A classic case of someone who was successful using this method is George Soros, who took a now infamous position on the British pound in 1992. He shorted the pound heavily shortly before the Bank of England withdrew the pound from the European Exchange Rate Mechanism and pocketed over $1bn. This was obviously based on economic factors rather than any fancy technical indicators such as an oversold RSI or MACD crossover.
So you can definitely make big profits from long-term fundamental analysis, but if you are more of a short-term trader then there are still profits to be made. For example, you could look to adopt a strategy based on trading the economic data releases.
This is quite difficult to do, and is not something I'm particularly good at, but it is definitely possible to make profits this way. Indeed I know a few traders who trade the news releases for a living. The major announcements can create wild swings in a currency's price so there are plenty of opportunities to trade these volatile movements in price.
Finally, if fundamental analysis and technical analysis aren't your thing, then you can always use the only meaningful indicator you really need - price. After all the price history tells you how the currency has behaved in the past, and if read correctly can be used to predict future movements as well.
For details of three profitable price-driven forex trading systems please visit:
http://www.topforextradingsystem.com/
Article Source: http://EzineArticles.com/?expert=James_Woolley
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