How to know how much a “pip” is worth for any pair!

Many times, newer traders ask me how they can find out how much a “pip” is worth for any pair. Some will refer to these as pip “costs”, others will say pip “values”, etc. but it’s all the same thing.

They all want to know, if my pair moves up one increment or down one increment…how many dollars does that equate to?

Here’s the simple answer. It’s automatically calculated for you on your trading station. You can view this on the “Advanced rates” which is the default setting..OR…you can view it on the Simple rates” tab.

See both of them below.

I’ve circled (in each format) where to find the pip cost/value for a pair. Notice that any pair that ends in USD (ex. EUR/USD, GBP/USD, NZD/USD, etc.) all have pip values of $1.00 per standard mini lot. Had this been a micro account, then the pip value would be 10 times less or .10 (10 cents) per pip of movement (since a micro lot is ten times smaller than a standard mini lot).

Remember, that a standard mini lot = 10,000 units of currency and a micro lot = 1,000 units of currency.

So the pairs that end in something other than USD (ex. EUR/CHF, USD/JPY, EUR/AUD, etc.) will have pip values that change slightly over long periods of time.

However, you can easily see what a “pip” is worth in that pair BEFORE you place your trade since it’s conveniently located on your quote screen.

This is important to note because there’s a big difference in EUR/GBP’s pip value of $1.66 and EUR/AUD’s pip value of .84 (84 cents).

So one pip of movement for or against you in EUR/GBP is +/-$1.66. However, in EUR/AUD this same amount of movement is +/-$0.84 (big difference, dollar wise…yet the same amount of pips moved). Click on the charts to enlarge them.

Sean Hyman

P.S. - Want to learn more about fundamentals and technicals? Sign up for an inexpensive, only forex course today and we’ll show you how: http://www.mywealth.com/currency-trading.php

Also, get a free, real time demo trading station here: http://www.fxedu.com/practice-forex-account

Green shoots are smokin!

It’s difficult to ignore that some green shoots are taking root. We may have seen the absolute bottom of the equity markets, but a steep incline is not sustainable, nor is a ‘v’ shaped growth graph. Reality and gut feeling tells us that we need to dredge along the bottom for a period of time before true growth can become sustainable. Perhaps we will get a rude awaking this coming Friday with NFP. There are whispers of a -200k print. Consensus has us at -375k with a +9.6% unemployment rate. Euphoria is always welcome, but the crash from the highs takes a lot of getting use to. Markets are flush with cash and after 5-months of a steep incline, many question ‘have they missed the boat’? Hardly, ‘the less bad is worse’ has occurred because of deep costing cutting and personal sacrifices. This quarter we get to see if it’s sustainable. All we are searching for is the true inherent value! And with US households with less cash to spend, it’s got to be lower not higher…

The US$ is weaker in the O/N trading session. Currently it is lower against 9 of the 16 most actively traded currencies in a ‘subdued’ illiquid O/N session.

Yesterday’s data confirms that the US consumer subtracted from last Q’s GDP growth. To fully understand one must look beyond the ‘nominal’ headline and focus on the ‘inflation’ adjusted print. In reality the consumer remains a drag on the US economy! In ‘Real’ terms spending was down in Mar., April, and June and flat in May. In total, spending was down -1.2% annualized for the Q (2/3’s of the economy remains in defense mode). According to analysts, the 1st Q rise was an anomaly vs. the yearly pattern of declines despite all the Government stimulus packages. Digging deeper, nominal-personal spending advanced in June (+0.4%, m/m) because of the surprising gains in non-durable goods, as durable goods expenditure fell -0.2%. Nominal-personal income fell -1.3% after 2-months of gains. Weakness was reported across most of the sub-categories. It’s worth noting that Government wages and salaries continued to rise despite the private sector depreciation. Social benefits fell -6%, m/m (1st decline in 10-months), despite UI rising in the month. With the ongoing pressures of the private sector wages, one can expect collection of personal taxes to also fall (less income for the Government). It’s fair to say that personal income will deteriorate further or best, remain static! The Core-PCE index (the Fed’s go-to inflation indicator) advanced in line with expectation (+0.2%), indicating that inflation remains well behaved.

US housing is doing its bit to contribute to the ‘green shoot’ theory. Yesterday, pending home sales of existing homes surged last month (+3.6% vs. +0.8%), this was the 5th-consecutive increase and exceed all analysts’ expectations. The main reason, lower prices continued to be backed up by low mortgage rates!

The USD$ currently is lower against the EUR +0.03%, JPY +0.28% and higher against GBP -0.06% and CHF -0.06%. The commodity currencies are weaker this morning, CAD -0.12% and AUD -0.32%. Yesterday was a time to reflect, the loonie treaded water in the morning session after its aggressive gains across the board this week. The greenback has managed to print new yearly lows and by default, apart from the MXN, most currencies have strengthened against the buck. The world covets commodity currencies as risk appetite increases and green shoots root. For the loonie per-se, nothing has changed, the currency managed to print its strongest level in 10-months yesterday. Last month it was the biggest G10 winner vs. the greenback, and this month like all its commodity traded cousins, it’s starting off on the same foot. This on-again, off-again recession is bringing risk takers back into the market. With US corporate earning’s beating expectations, this has prompted investors to seek riskier assets such as stocks and commodity-linked currency’s. By default, higher yielding assets like the loonie do much better. The strength of the currency continues to get ahead of fundamentals. Even the Finance Minister Flaherty said ‘there are some steps that could be taken to dampen it’. This would imply some kind of intervention in the market to weaken the CAD. This week we get to see North America’s employment numbers. Are we in for more surprises? Let’s see if the domestics want to cash in on the recent surge this morning and sell their own currency or are they about to take on the BOC?

Earlier this week the RBA kept O/N borrowing costs on hold for a 4th-consecutive month (+3.0%). Governor Stevens said that the Australian economy is stronger than their original predictions a few month’s ago, ‘with both consumer spending and exports notable for their resilience’. Last week Stevens indicated they may not wait for unemployment to peak before hiking rates again. This has heightened speculation that Australia will increase borrowing costs faster than most other nations. After touching its highs, its strongest level vs. the greenback in 11-months, the currency has managed to pare some of the gains after the RBA comments and Asian equities are off their highs (0.8424).

Crude is lower in the O/N session ($71.04 down -38c). It’s not surprising to see crude pare some of its 13% gains over the past 3-trading session. The fear of over extending the euphoric nature is just. Demand destruction remains intact, and there are no fundamental reasons to suggest otherwise at this point. Analysts are expecting another weekly gain in this morning’s EIA report. Reality tells us that inventories are high, demand is still really weak and the risk is increasing that we will see a bigger correction towards $60. We tried last week briefly, but the ‘Bulls’ went on a rampage, pushing prices briefly over the $72 a barrel on Monday. This was the 1st time in over a month and all of this on the back of stronger US fundamental data. Even gas prices surged, as increasing US industrial activity has boosted optimism and swayed investors that fuel consumption will rebound. This is a tall order on the back of recent crude fundamentals, where we continue to experience healthy ‘demand destruction’. The recent appreciation of the black-stuffs prices has been too rapid. There is no denying that with growth comes a commodity price increase. We are not seeing growth, but indicators are showing us a ‘less bad is good’ scenario. Investors are getting ahead of themselves. One of the major factors has been the amount of cash that has been left idle in this downturn. Money managers are aggressively trying to put some of it to work. It’s worth noting that OPEC increased their output levels for a 4th consecutive month in July (agreed compliance is slipping as some members states take advantage of the stronger prices).Their output averaged +28.39m barrels a day (up +45k, m/m). The key to this recent rally will be the US economy ability to continue this pick up or if it limps along! Last week crude prices plummeted on the back of a staggering surprise in the weekly EIA inventory numbers. They reported a whopping +5.1m barrel increase to +347.2m, w/w. The market had anticipated an average decline of -1.2m barrels. Refiners cut operations by -1.2% to +84.6%, relative to capacity, while imports climbed +8.9% to +10m barrels a day last week (the highest since Jan.). Gold prices are following other commodities, the yellow metal advanced to a new 2-month high as the greenback faltered, printing 10-month lows and equities climbed, thus boosting the appeal of the commodity as an alternative investment ($967).

The Nikkei closed at 10,252 down -122. The DAX index in Europe was at 5,418 up +2; the FTSE (UK) currently is 4,673 up +3. The early call for the open of key US indices is lower. The 10-year Treasury’s backed up 5bp yesterday (3.68%) and is little changed in the O/N session. Despite the plethora of US product last week (a record $150b), treasuries managed to grind higher. But yesterday we witnessed a 2nd-consecutive day of price declines as pending sales of existing homes in the US advanced more than forecasted last month. This is further evidence that the deepest US recession in 50-years is easing. On Monday, Treasuries prices declined the most in more than 2-months, as reports on manufacturing and construction spending topped analyst’s original estimates. Recent US data suggests that the 2nd Q may prove to be the final ‘negative’ US GDP number. If true, there is no reason to see lower yields in the short term. This Friday’s North American employment reports could provide some support for the freefalling FI asset class!

It appears the Swiss keep “raising the floor” on the EUR/CHF trade!

Okay, I realize that this isn’t the only pair out there. However, it is likely the ideal candidate right now as it likely has much more upside potential than downside due to the constant intervening of the SNB - Swiss National Bank (Switzerland’s central bank).

Also, keep in mind, the trend is now upward recently…and no longer downward. Being that the EUR/CHF is one of the more widely watched/traded pairs by institutions (which produce such enormous volume for a “cross pair”), it won’t be long before their automated “trend following” programs kick in and aid the central bank’s efforts.

And…it appears that the SNB keeps going into the market and selling francs “sooner and sooner” all the time. See how it continues to “raise the floor” for the EUR/CHF pair. Click on the chart to enlarge it.

Sean Hyman

www.forextradingblog.com

P.S. - Want to learn more about fundamentals and technicals? Sign up for an inexpensive, only forex course today and we’ll show you how: http://www.mywealth.com/currency-trading.html

At the “Economic Turning Point”?

If we’re at the “economic turning point” as I believe we are…then that will be bad for the dollar, yen and Swiss franc but will be particularly good for those currencies that tend to be influenced by inflation, commodities and risk taking…which would be the Aussie dollar, New Zealand dollar, Canadian dollar and British pound…and arguably in that order.

As an additional note, if this is true…then the natural course of “Swiss franc weakness” may kick in and help the Swiss central bank out with a weaker franc. They’ve been proactively “selling francs” but there may come a time (and we could be there now) that the market actually kicks in and “aids” their intervention efforts for a weaker franc to the euro in particular. If so, between their collective “franc selling” and the market’s turning point…it could bode well for those that are long (buyers of) EUR/CHF. The Swiss are attempting to put in a floor on the EUR/CHF pair around 1.50-1.51. So anytime it gets to around the 1.51 region, one could go long the pair with a wide stop and low number of lots and probably experience a good “upside to downside” risk ratio.

I’ll also note that, so far, the Swiss have been able to reverse the daily downtrend on the EUR/CHF pair and have “held the line” quite well so far. You can look at it from most any aspect you wish and it still holds true. The pair is technically above its downtrend line, 50 SMA, 200 SMA, etc…all of which are bullish for the EUR/CHF pair. See the chart below. Click on it to enlarge it.

Want to learn more about fundamentals and technicals? Sign up for an inexpensive, only forex course today and we’ll show you how: http://www.mywealth.com/currency-trading.html

Also, get a free, real time demo trading station here: http://www.fxedu.com/practice-forex-account

Sean Hyman

www.forextradingblog.com

Risk Aversion Edges Up

Over the last few weeks, the stock market rally has fizzled and commodities prices have cooled off. It’s not clear what triggered this sudden surge in introspection (I would call it reasonableness). Regardless, the markets are now wondering out loud whether the optimism of the second quarter wasn’t a bit naive.

After all, there still isn’t any evidence that global economy has turned a corner. Virtually all of the economic indicators that matter are still trending downwards. In addition, the apparent stabilization in housing prices could prove temporary, as banks move away from loan modifications and back towards foreclosure. Rumors that the Obama administration are considering a second stimulus plan are already circulating

With second quarter corporate earnings season set to kick off next week, investors are once again bracing for the worst: “Given the strong performance of stocks relative to March lows, a reality check from earnings could be detrimental to risk appetite.” Adds another analyst, “It’s renewed risk aversion, triggered by mounting doubts about a near-term economic recovery that’s evident in the sell-off on Wall Street and the subsequent decline in risk assets in general.”

This pickup in risk aversion is also manifesting itself in forex markets, via the upturns in both the US Dollar and Japanese Yen: “The prospect of a slow and bumpy recovery remained the overriding driver of market sentiment and the dollar was soon reasserting itself as the currency of choice - apart from the yen.” Ironically, negative economic data that applies directly to the US is benefiting the Dollar, which goes a long way towards explaining the current market orientation. Currency traders have yet to turn towards comparative growth differentials (despite the predictions of some analysts) and remain firmly focused on risk. Meanwhile, “The yen rally has extended, driven by the liquidation of long-risk asset positions.” In other words, the carry trade has come under pressure as investors move back into low-risk government bonds.

The “uncertainty” narrative will likely continue to drive the markets for the near-term, as neither the optimists nor the pessimists have the data to support their respective positions. In all likelihood, the markets will trend sideways and safe haven currencies will see a slight inflow, until there is confirmation that the economy is firmly on the path to recovery.

British Pound “Pauses for Breath” [Part 1 of 2]

After a nearly 20% rise against the Dollar, the British Pound has been rangebound for nearly the entire month of June, with one columnist likening the situation to a “pause for breath.” For him, this amounts to a temporary cessation on the Pound’s inevitable upward path: “Compared to long term levels, the pound was still better value than its peers. He said: ‘It’s still cheap - about 10% below it’s trade-weighted average at present.’ ” For others analysts, however, the picture is not so cut-and-dried.

Forgetting about purchasing power parity for a minute, there are numerous factors which could halt the Pound’s rise. First and foremost is the British economy, which is still struggling to find its feet. “The U.K. economy will recover ‘mildly’ next year, according to the OECD, compared with a previous projection of a 0.2 percent contraction. Gross domestic product will drop 4.3 percent this year, versus a March forecast of 3.7 percent.”

Some economic indicators have begun to stabilize, but the two most important sectors, housing and finance, are still wobbly. Economists warn that “any recovery could be slow and uneven because banks are still unwilling to pump loans into the economy.” In the latest month for which data is available, mortgage lending slowed to a record low, with consumer lending not far behind. With regard to housing,”The annual fall in house prices in England and Wales slowed for a third consecutive month in June, according to property data company Hometrack, but prices were still 8.7 percent lower than a year ago.”

There is the possibility that the BOE’s quantitative easing plan and the government’s fiscal stimulus will provide the economy with the boost it needs. At the same time, both programs will have to be reined at some point, sooner rather than later in the case of government spending. With UK national debt predicted to reach 90% of GDP by 2010, “Most people - the prime minister excepted, apparently - believe that taxes will have to rise and/or public spending fall after the next election. This would at least threaten to hold back economic activity.” Not to mention that both QE and government spending could actually backfire and generate inflation without economic growth (i.e. stagflation). BOE Governor Mervyn King captured this overall sentiment, when he said, “I feel more uncertain now than ever. This is not the pattern of a recession coming into recovery that we’ve seen since the 1930s.”

In short, from a purely economic standpoint, it doesn’t look good for the Pound Sterling. But of course forex is about much more than GDP…stay tuned for Part 2, in which I’ll elaborate on this point, and bring interest rates and inflation into the discussion.

Is Risk Aversion Back?

At the end of last week, I posed a question: what will be the next theme to dominate forex markets? Perhaps the answer can be found in Monday’s massive market selloff (”Triple-M Monday” anyone?), the worst day for stocks in over two months. Commodities and currencies- both of which have taken their cues from stocks of late- also trended downwards.

While I would be the first to caution against reading too much into one day (especially since the early indications are that some of these losses will be erased today), it’s possible that yesterday marked the breakout that many technical analysts have called for over the last few weeks. Asked one such analyst last week, “Taking a step back to look at the daily price action of the EUR/USD, we can clearly see that the currency pair is consolidating and a sharp breakout is imminent. The big question is, will it be an upside or downside breakout?”

What was the catalyst for Monday’s selloff? Perhaps it was my blog post on uncertainty: “The World Bank said Monday that prospects for the global economy remain ‘unusually uncertain,’ and it cut its 2009 growth forecasts for most economies” from 1.7% to 2.9%. But really, the World Bank was only echoing what every investor already knew- that the stock market rally rested on a house of cards, and that in fact the arguments in support of an economic recovery are still quite tenuous. In other words, “Some of the buying since early March was been based on a conclusion by many investors that government intervention had forestalled the threat of a doomsday scenario, such as another Great Depression…expectations were so low that stocks rose merely on news that indicators such as manufacturing activity or the service economy were shrinking less than had been feared. Investors didn’t require signs of actual growth.”

From trough to peak, stocks rallied 34%, pushing P/E levels back to normal levels. Now that all of the temporary pricing inefficiencies have been “corrected,” investors are taking a step back and looking to see whether the data supports further buying. Until there is solid proof that the “green shoots” are real, it’s my prediction that markets will trend either sideways or downwards.

What does this mean for forex markets? Investors will probably shun riskier currencies in favor of the Dollar and the Yen, which are still perceived as relative safe-havens. “Risk aversion has resurfaced as market participants take profits on riskier exposures. There are “renewed concerns about the extent of the ongoing global recession and the sustainability of the ‘green shoots’ of recovery,” said one analyst.

Of course, some would argue that that the emerging markets forex rally was built on a more solid foundation than US stocks. If this is the case, then perhaps the correlation between stocks and currencies will break down in the coming weeks. For now, at least, risk-averse investors will probably start to unwind carry trades and pile back into the mainstays of forex. Those with the highest interest rates will suffer the most. Until the day comes that bad economic news in the US doesn’t paradoxically buoy the Dollar, we can be certain that the current narrative is once again one of risk aversion.

G-8: Thinking of reversing $2 Trillion in Stimulus!

This past weekend, the G-8 (Group of Eight - 8 largest industrialized nations) met and started the talks that will eventually reverse the $2 trillion in global stimulus. Of course, they aren’t about to start this process yet since it was just their Finance Ministers at this meeting…but they were setting up the process for when their central bankers will gather in early July (10th - 12th). Why is this important? Because if these central bankers are comfortable enough in talking about reversing the stimulus, then it means that they really think that the global economy is close to being able to stand on its own two feet once again. If this is the case, it will end up helping riskier currencies in the long run (AUD, NZD, CAD, GBP, etc.) and will hurt the defensive currencies that benefited when the world was falling off of a cliff (USD, JPY, CHF). Now this effect will not be immediate. In fact, the dollar and yen are gaining a bit as of this writing. But after a good pull back, look for the trend to return towards “risk seeking” and not back into the defensive mode as we had before. My top picks, of course: AUD/USD and AUD/JPY to benefit the most…as the G-8 acknowledged the rise in commodities as the global economy is recovering.

Chinese Yuan Inches Towards Reserve Currency Status

The last week brought a few more developments in China’s quest to turn the Yuan into a viable reserve currency. Don’t get me wrong - I used the term “inches” in the title of this post for a reason - the Yuan will not supplant the Dollar anytime soon, if ever. Still, China deserves credit for their resolve on forcing the issue, as well as for providing an alternative to the Dollar monopoly.

An important boost came from Russia’s Finance Minster, who suggested that, “This could take 10 years but after that the yuan would be in demand and it is the shortest route to the creation of a new world reserve currency,” as long as it was accompanied by economic and exchange rate liberalization. The Head of the World Bank, Robert Zoellick, agreed: “Ultimately, that’s a good thing. And ultimately it’s good if you’ve got, I think, some multipolarity of reserve currencies to create, to make sure that people manage them well.”

These soft endorsements were precipitated by comments from a top Chinese banker that companies should start to issue bonds denominated in Yuan. “Guo Shuqing, the chairman of state-controlled China Construction Bank (CCB), also said he is exploring the possibility of issuing loans to trading companies in yuan, allowing Chinese and foreign companies to settle their bills in yuan rather than in dollars.” This would serve two ends simultaneously; not only would Chinese capital markets be strengthened, but the Chinese Yuan would benefit from the increased exposure. Already, “HSBC and Standard Chartered have both said they are preparing to issue bonds denominated in yuan” and international monetary institutions might not be far behind.

Conspiracies aside, the Chinese Yuan will become a reserve currency when it is ready to become a reserve currency. I’m sure this seems self-evident, but it’s important for China (and China watchers) not to get ahead of itself. It doesn’t make sense for risk-averse investors to hold a currency that is still essentially pegged to the US Dollar and that isn’t fully convertible. If there’s no pretense that the Yuan fluctuates in accordance with market forces, and if investors aren’t guaranteed the ability to withdraw RMB if need be, what possible reason would they have to hold it in the first place?

Summarizes one columnist, “China would have to gradually make the yuan convertible on the capital account; it needed a more liquid foreign exchange market; its bond markets and banking system needed to be more developed; and there had to be proper monitoring of cross-border capital flows.” The importance of having functioning capital markets cannot be understated. Simply, investors and Central Banks buying Yuan would not want to simply invest in paper currency; instead they would want stocks and bonds that trade transparently.

Currently, foreign investors are limited to savings accounts and investing/lending to firms that record earnings opaquely and are ultimately subject to the whims of the Central government. This system has functioned well in the past, only because investors were betting generally on the Yuan’s appreciation, and not necessarily on specific opportunities within China. If China wants the Yuan to be a serious contender with the Dollar, it needs to give investors more and better options. Ironically, if China had taken these steps in the past, it wouldn’t have found itself with $2 Trillion worth of Dollar assets that it is desperately trying to dispose of.

What is the biggest “market moving event” of the month typically?

By Sean Hyman

NFP: Non-Farm Payrolls in the U.S.

This event draws traders like bugs to a light.

However, it’s not always the most prudent thing to trade, especially for newer traders. Why? The volume can be thin before and during the event and even up to about 30 minutes to an hour or so afterwards.

You see, the big banks usually stop making new trades in the marker WELL BEFORE the NFP announcement because they don’t want to put on their huge trades (usually a billion units or more, no lie) right before an “unknown” like this. The pros aren’t much on gambling on what they don’t know and can’t quantify.

No, they want to know what they are facing before placing trades. So since the “big boys” are out of the picture, so is a lot of the “huge” fx volume that we’re all so accustomed to most of the time.

Why the huge draw to NFP? Because, since the volume is thin and the numbers can routinely come out well off of expectations, it set up an environment for huge pip moves. Take a look at the last NFP for EUR/USD. This pair normally moves an average of 180 pips over 24 hours right now. However, upon the NFP announcement, it moved well over 215 pips.

If you dare to trade this event…be aware that you should trade FAR FEWER lots than you normally trade…and stops would have to be wide. Be comfortable with the potential dollar loss that could happen and make sure it is no more than 5% OR LESS of your account equity. Get a demo to trade, here: http://www.fxedu.com/practice-forex-account

Sean Hyman

Trading in Different Time-Frames!

When trading different currency pairs, it is important to be aware of the time-frames you are trading in so that you can take advantage of different moves. Today is a perfect example of this scenario. So far this AM’s biggest losers are the commodity currencies. The Aussie dollar (AUD), Canadian dollar(CAD), and New Zealand dollar (NZD) are all losing ground against the US dollar (USD) and the Japanese Yen (JPY).Does this mean it is time to get short? Not so fast. In previous articles Sean Hyman has made a great case for these currencies and frankly the charts don’t lie! The uptrends on the commodity currencies have been going up steadily and the fundamentals are in place for their rally to continue. But what to do about a day like today?This is where looking at different time-frames can help you. Take a look at the charts below. The first chart is a 5-minute chart of the AUD/USD pair. The lines drawn on the chart represent short-term resistance, so trades entered on the short side near those resistance points would provide low-risk entries for a short position.(click on charts to enlarge thumbnail) The chart on the right side is the daily chart of the AUD/USD pair. As you can see, the trend is clearly up. Which means that you want to be long, and brings us to the theme of the day, that you can be in opposite positions on the same pair at the same time! This is known as “hedging”, and can really help add to your profits and help limit your losses.Recently the NFA (National Futures Association) outlawed this practice here in the US, but savvy currency trading firms have figured out a work-around. If you would like to learn more about hedging or how you can participate, email us at: sales@fxedu.com.

Why Forex Trading Beginners Fail in Choosing a Method that Works

Often, Forex beginners have a method complexity syndrome that separates the independent and the dependent minded ones. Finding themselves research trading methods, purchase and immediately do it, without carefully choosing to consider many factors such as risk management, discipline and psychology. Trading beginners tend to be dependent minded this way, which is very dangerous for any promising successful Forex trader.

Blinded by the sales page of the trading methods being sold to them, all those words of “unlocking the secret” and “unknown key to forex success”, make them disappointed in the end most of the time. They discover that some of the content are already heard about once or twice. The have the conclusion of it being too “simple”, no wonder there are some good,quality trading methods out there are having negative comments. It is not of the trading method, but the one who used it.

Some of them seek for a formula that others may find too complicated, where it is actually a ‘combination of indicators’ or a set of simple indicators combined in the most uncommon way. Thinking this way may also lead to disappointment, because they assume that a method in Forex must be complex and not too simple, and any other method they encounter should be more complex than what they discovered, or else, they complain and give up.

Amateur traders make this mistake. The process may repeat until one gives up, without even fully investing in understanding the full process in trading.

Most of the trading methods out there are not complicated, they are smaller set of rules combined in a simple manner and applied in the most uncommon way. The “complicated stuff” are for geeks and big banks. The bottom line is, if you can not understand something, it is impossible to apply it.

It is best not to skip in learning a powerful new method in Forex trading. You need to learn:

- the proper set-up, entry and exit rules
- how to protect your trade with stops
- how to apply your method in a timely basis, to get most out of the method
- how your learning adds up together to make you a better trader, not a frustrated one.

Simple is not always the easy way, it was just built step by step for the easiest of understanding and application. Simple=Powerful, with the use of just few indicators and rules in a non-textbook approach, is what makes success in the financial markets

Forex Wealth can be Made inspite of Economy in a Recession

If you are a Forex Trader, no matter what experience you have, this is information you don’t see everyday. It is possible to build more wealth from short term forex trading even if recession is been bothering you. It is just a matter of making the economy work for you.

It is true that there are successful traders out there, and some unsuccessful..yet. It is because they have not seen or recieved a forex training that is custom-made for soon to be elite traders. One of the top Forex Brokers has just released the March 2009 update of one of his multimedia training kits that defies all the odds that creates wealth and breaks the norm of the other forex traders.

If this 30++ year old forex instructor and trader showed you a custom made, multimedia “blueprint” that address every mistake you made or might make, will you grab it? This is based on the over 100,000 forex traders that took part in the study to determine what works in forex trading and what does not. Timing in a recession of the economy.

You shall have access to it later.

The result of this study is a multimedia system that shows that popular or “bandwagon” does not always mean effective in the Forex Markets. Instead, a system that reveals what the Forex Elite is doing.

The training introduction is called the Forex 4 Pack

20 minutes a day?

You will discover how the forex veteran spends 20 minutes a day trading with confidence, and maximizes the pip potential that most forex traders find in themselves hard to achieve, forex wealth.

You will also learn :

** How to “shake out” the good Forex brokers from the
unscrupulous ones. Many brokers won’t be prepared when you
ask them these 5 questions (part 1, page 16, & part 4).

** The “core essentials” of Forex trading that will let you
“leapfrog” over other traders, giving you a “fast track”
that would otherwise take months, or years to achieve (part
2).

** The 4 “golden rules” your Forex trading method MUST
follow if you want to have an edge over all other traders
(part 1, page 58).

** The “insiders formula” on how to determine the best mix
of technical indicators to use when trading Forex pairs
(part 1, page 27).

** Step-by-step tactics for applying the “Optimal Profit
Exit Strategy”. This is a deadly accurate way of enjoying
profit-taking as quickly as possible (part 1, page 37).

** The 4 market conditions that you should avoid at all
costs and that practically eradicate risk (part 3).

** How to drastically reduce your “time in the trenches”
trading Forex by spending only 20 minutes a day. These 2
discoveries make it all possible (part 1, page 70).

** …plus, there’s a TON more you’ll get to sink your teeth
into when you get the ‘4-Pack’…

Sadly, it isn’t for sale.

This is not like any other few page e-books that some people put value and sell off the net. Instead, it is a collection of reports, video tutorials, and even a scorecard you can use when choosing/evaluating a broker.

It is for free! Take your time and read it all. And is advisable to download it right away. Why? Because it may not be available always, it has a large file size and it can be cut off anytime if the servers have too much request for the material.

Tips to Find the Forex Method that will Give your Economy Rebound

The Forex Market is indeed to be one of the great places to produce tremendous wealth, even in an recent economy of uncertainty. Better than Stocks and Futures Markets combined, Forex has opened its doors to individuals that want to have wealth sooner than they thought, and even larger than they ever dreamed of, and yes, that is you and me. In a such situation of the economy, companies turn their heads on Forex for additional income.

Did you know that the Forex Market is like fire? Because, if you do not know how to nourish or control fire, it takes over you and does some damage that can scar for for a very long time. But if you know where to direct it, place it, control its intensity and quantity, then fire is not a damaging element anymore, but useful. Evolution and time has taught man to control fire.

Same as in Forex, if you do not know how to make Forex work for you, your loss can be heartbraking and traumatizing. Forex Traders fail in forex, but not because it was just too risky, if you dig down deep, they tend to use a trade method that doesn’t work, for them. Remember that no matter how “effective” a trade method is, it won’t work unless it works for you. There are many forex trader success stories, using the method that works for them.

But what is a good trade method?

Here are some guidelines in order to determine if a trade method will benefit you the most:

1. It must be a complete method, with setup conditions, entry rules, initial stop rules, and exit strategy rules, leaving no decision to chance.

2 . It must include specific risk management, money management, and portfolio management guidelines.

3. It must be based on technical analysis, but it must not be a 100% mechanical system.

4. It must take less than an hour a day to apply after learning how to trade with it.

In evolution and time, there are forex methods that some may not be aware of, on how Forex is flame that can be put to our good use and maybe it becomes an important resource of convenience, financial convenience. Find a good trading method using the guidelines mentioned, there are good methods out there that you can use to experience financial freedom with Forex, it is possible to have your economy rebound with Forex. Start now.

How to Find an Effective Forex Trading Method

One of the questions every Forex trader has, beginner or experienced, is what does good forex methods consist of? This article is about knowing what constitutes a good trading method, and what most methods look like ( what makes them not effective). This will help you evaluate a forex method.

There are trading methods and systems on the market, most of them are ineffective. Why? They share the following short comings:

- Too many courses there offered are not complete. they focus more on “theory”, but not really show how a Forex trader should succeed. Little to no time is spent teaching step-by-step forex strategies to help plan a trade.

- Most of the traders make this common mistake : not having risk management in their trades. If your Forex Course or system doesn’t include risk management, might as well walk away and find another.

- Fundamental analysis. Time consuming is not what you want in learning Forex. Most focus on fundamental analysis which require deeper study and has complex economic and financial issues.

- Most will require you to day trade. Most of the systems I encounter require being glued to the computer most of the time to be able to spot “opportunities”. Which is definitely not necessary.

… Then what is an effective , profitable method?

Based on research and interaction with forex brokers, traders and mentors, this should be the gauge in determining is a method is good or not.

- Complete. It must be teaching set up conditions, entry rules, initial stop rules and exit strategy. A careful and complete method leaves no profits to luck.

- according to this method, they must have money and risk management solutions. Meaning, a course or system must have risk management course.

- Must use technical analysis tools, but is not a fully automated or mechanical system.

- Forex Freedom must be the objective of this method. It is favorable to spend 20-40 minutes a day trading with this method.

This will help Forex traders in distinguishing the real from what is not. No wonder 95% of the traders fail. Forex Trading Tools should provide complete explanation ( of how to trade forex and protect your trades) and is easy to understand are the methods every trader should have in trading.

Forex trading freedom?I do it in less than 20 minutes a day.

How Important is Forex Private Investment in Education?

Think of this scenario, if you want so much to do something, say dance, be a model, an actress, or be a great chef, what is the your purpose of doing so? Maybe because you really want it, that is your passion. Or maybe you want to make money out of something that you love doing or really interested in. Like in college.

After realizing what your purpose, what do you do?

- research about it (talk to people, online reading)
- read more about it, watch media about it ( t.v. shows, dvd’s)
- if you really want to jump in, you enroll in classes (private investment in education)

Listed above are just some steps that you may take if you are really interested in something or want to succeed in doing something. The main point? Education in anything is a private investment is important that you take because it pays you in whatever form ( satisfaction, money, fulfillment)…forever.

You wouldn’t care much about the cost of learning it, because it is something you really want to do, make you understand more and whatever you gain is yours for the rest of your life.

What does that have to do with Forex? Well, it has everything to do with it. If you really want it, the same steps above (research, read, study and enroll in classes in) is the most common thing to do. Not only can it pay you hundred fold over and over again, but whatever you learn is yours forever!

The importance of such education in Forex is that you deal with real money here, mistakes can never be more devastating, but the other side of it, if done with the best forex trading method, as in a forex course would show you, rewards are just so overwhelming! Smart and elite traders invests in education, because they are constantly evolving. As our education grows, so is our portfolios, so is our home, our car, our lifestyle.

Free Courses and Paid Courses

Free Courses are great in Forex, a Forex mentor give that to share knowledge and experiences. On the other hand, paid courses are like courses in college, you pay for it, it has a systematic approach and specific curriculum, is based on research and study, and triggers your mind to grow in such a progressive way that the only destination for you is success.

There are many sources out ther just to get the money, after you pay, they disappear. A credible resource should be your choice, because in Forex, education is something you must not take for granted.

Online courses are still the choice for forex, not only can you have access to the best courses anywhere you are, but course materials online give you flexibility. If you are working, you can have access to your materials online in your part time. A mom can study forex when the kids are at school or asleep. That flexibility is what makes the internet a great invention.

A suggestion….

To save you time in finding the “right one” in Forex courses (with all the scams that promises ‘instant profits’), one of the most credible sources out there is Bill Poulos. He has received so many thumbs up with the courses he had made and has produced many successful Forex Traders out there.

With his latest Forex Course, The Forex Profit Accelerator, it is designed to make you learn how to profitably trade 20-30 minutes trading by the end of day ( 5:00 pm New York Close), so great for part time traders that doesn’t want to stare at charts all day.

What makes him special?

In all his courses, he practices transparency, honesty, simplicity and effectiveness that his courses are made from research and survey among Forex Traders themselves, the situations they deal themselves. A systematic yet easy to understand teaching style, and honesty that he answers all questions by his participants as fast as possible.

Quality information materials is what the core of the Forex Profit Accelerator, you get so many bonuses, free e-books and forex trading tutorials other than what you have paid for. And the customer support is superb. Think of you favorite teacher that answers to you all your questions no matter how many are they; he just wants you to understand as much as possible. Knowledge always starts with a question indeed.

If you want to achieve financial success, it always relies on you, but a forex course, like the Forex Profit Accelerator can give you confidence and a scientific way of learning that minimizes your risk and makes you get lots of pips as possible.

Bill Poulos transparency, honesty and strong emphasis on the essential elements every trader should learned has sealed the deal with Forex Profit Accelerator. Aren’t you tired with the overnight claims of BIG profits? It is so refreshing to hear Bill say that he has also losing trades. Nobody wins 100% indeed. Hearing from him how to manage trades, because you will lose some to gain more, made thousands of believers in Traders.

Dollar Loses to Euro Moderately after Good Fundamental News

EUR/USD rose today for the first time in four days as the U.S. fundamental news came out better than expected and spurred optimism in the Forex and stocks traders. At this moment EUR/USD is trading near 1.3549 after reaching as low as 1.3417 earlier today.

Durable goods orders increased by 3.4% in February after the revised decline by 7.3% in January (revised down from -5.2%). The market analysts expected this indicator to continue going down at 2.4% last month.

New home sales rose for the first month since June 2008 this February in United States — from 322k to 337k seasonally-adjusted annual rate. They were estimated to go down to 300k.

Why Forex Trading Beginners Fail in Choosing a Method that Works

Often, Forex beginners have a method complexity syndrome that separates the independent and the dependent minded ones. Finding themselves research trading methods, purchase and immediately do it, without carefully choosing to consider many factors such as risk management, discipline and psychology. Trading beginners tend to be dependent minded this way, which is very dangerous for any promising successful Forex trader.

Blinded by the sales page of the trading methods being sold to them, all those words of “unlocking the secret” and “unknown key to forex success”, make them disappointed in the end most of the time. They discover that some of the content are already heard about once or twice. The have the conclusion of it being too “simple”, no wonder there are some good,quality trading methods out there are having negative comments. It is not of the trading method, but the one who used it.

Some of them seek for a formula that others may find too complicated, where it is actually a ‘combination of indicators’ or a set of simple indicators combined in the most uncommon way. Thinking this way may also lead to disappointment, because they assume that a method in Forex must be complex and not too simple, and any other method they encounter should be more complex than what they discovered, or else, they complain and give up.

Amateur traders make this mistake. The process may repeat until one gives up, without even fully investing in understanding the full process in trading.

Most of the trading methods out there are not complicated, they are smaller set of rules combined in a simple manner and applied in the most uncommon way. The “complicated stuff” are for geeks and big banks. The bottom line is, if you can not understand something, it is impossible to apply it.

It is best not to skip in learning a powerful new method in Forex trading. You need to learn:

- the proper set-up, entry and exit rules
- how to protect your trade with stops
- how to apply your method in a timely basis, to get most out of the method
- how your learning adds up together to make you a better trader, not a frustrated one.

Simple is not always the easy way, it was just built step by step for the easiest of understanding and application. Simple=Powerful, with the use of just few indicators and rules in a non-textbook approach, is what makes success in the financial markets.

Tips on Improving your Forex Trading Mindset

There are two ways a Forex trader thinks, which one are you?

Whatever type of trader you choose to be, your trading mindset theory will dramatically affect the potential income you would make. Not only in the Forex Markets, but in the totality of life your gonna live. This article has tips to be positive to produce more results.

The mind has much much more effect on the reality we are experiencing right now as much as we realize, people who take the initiative to take control can experience the positive effect of the outcome, as for the more ‘general’ masses that just let the ‘river of life’ determine the kind of live that they will have.

Results( income or quality of life) is directly proportional on the effort and thinking we put to it. As we all know that anything requiring little to no effort produces limited results, and anything that will require the mind to work as it should produces lasting and more consistent results.

Trading the financial markets, whether be it forex investing or the other markets, has many unspoken results to prove that this is true. The most common that are noticed are two, which do you think mindset successful traders have?

The Dependent Trader

Sadly, this type of mindset produces no results. This type of mindset involves wanting forex made easy, making it rich quick, and never wants to put any effort into the process of thinking and doing things that will lead to results that is wanted.

Most of this mindset are the ‘band wagon’ type, trade based not on learning, but on the forex tips that is ever present on all those ‘money-making’ trading programs, listen to all those financial gurus with expecting of a great return which in the end results to the opposite of it.

In more simple terms, they are like lottery players, they know the chances of winning are slim, like 1: 100,000 , yet when they know that there is a big pot of gold over that rainbow, they wager their money still and “hope for the best”. In the end all the negative thoughts are present if (and most probably) they don’t get what they want.

The result? Giving up. No wonder most people are scared in the money making in Forex, they expect big returns for such little effort. There is nothing wrong with the system, it has results, but people fail. Why? because of their mindset. Fear will take us nowhere.

If you possess this kind of mindset, there is always a way to have mindset change which will produce a lot greater results.

On the other side of the coin,there is the Independent Mindset.

The Independent Trader

This trader has the mindset set on success, nothing more. The control over their financial future is theirs. Traders like this have learned (or are learning) to control the financial markets, by the methods that doesn’t rely on others for advices and is not much of a fan of the ‘buzz’.

If you have this success skill, then you must know that only you can achieve the success you want by maximizing the market and making it work for your favor. Learning from others is different from mimicking others, and constant adapting from mistakes, thus reaching new heights.

Most Traders, beginner and experienced, has a little bit of the dependent mindset at one point or another. The thing the separates the successful ones from the not is that people on the track to become Independent Traders seek a mentor or lean with a reliable education source, but as the learning and knowledge grows, they begin to be independent and apply the learning on their own. Dependent Traders fail.

What can you do?

Here are steps you can take to improve the forex trading mindset you have.

1. Find 2-3 credible education sources. You can find one forex course here in the end of this article. Your goal is to identify one that you can understand and trust. Get all the knowledge that you can get out from these sources. When you learn to trade forex properly, then you will find your self applying the concepts on your own.

2. Learn and test multiple methods of trading. Success is not possible without some basis in trading methodologies, specifically using technical or fundamental factors.

3. Based on what you have learned, make a trading plan. The best forex strategies is that best suits you. If you have a job or want to enjoy most of your time for other things other than Forex, end-of-day trading is for you. The learning you have from steps 1 and 2 must be aligned with end-of-day trading.

Tips in this article will require time and money as the investment. It should be considered education cost — such as in college. It is far better to invest money on yourself that to easily lose money on the market. If you are still looking for an easy way, then you must be that dependent trader.

There is an easy way to do things, and there is a BETTER way in doing things.

Forex trading freedom and Success is for you.

Learn How with a credible resource

The Forex Profit Accelerator Trading Method : Effective Coaching, Unconventional Success

I wrote articles on how to find effective forex trading methods and how you, a forex trader can identify them. Finding the effective forex method/s for you can not only take profit consistently, but it makes you confident trading the market.

Here is a review of a method that has met most of the qualifications of a good method and learn what makes it effective. Unconventional some might say, but most traders proved it produces success in forex. This article can save you a lot of time and energy finding the forex method based on the right qualifications.

The Forex Profit Accelerator

Forex profit Accelerator is the name of the course, pulled in together by Bill Poulos, a 30+ year veteran trader of Stocks and Forex and has devoted himself, along with forex traders with the same goal, in making courses and trading e-books based on quality research, study, surveys and of course, his own experiences.

The Forex Profit Accelerator course has been keeping a track record of successfully helping forex traders apply four different yet unconventional and effective coaching to trade the forex markets. It was made based on an in-depth study on what REALLY works and what doesn’t with the help of the main users, Forex Traders that have undergone surveys and interviews prior completing the course.

It has helped traders realize that there are methods out there that produces consistent and large profits, yet spending less time staring at forex charts. It teaches discipline, patience and an attitude based on financial success.

The Course Contains…

Back to the course, it contains a set of 6 cds and a manual, both of which are essential to self paced learning. Why self-paced? Although it has a Forex mentor in it, and has the top notch customer support, only you can gauge on how fast or slow you will understand the course, or even how often you will use the materials. This makes it flexible for part-time traders, and full time moms who still want a large, consistent income yet not consuming most of their time learning it.

Although flexible and simple, it teaches four specific methods to profitably trade the forex markets and includes an in-depth analysis on how the methods work. Also included is a forex basics course, technical analysis basic training, a review for experienced traders and perfect for beginners. Included also is a charting software information and trading “blue prints” to organize trade planning . Organization reduces confusion, boosts understanding and reduces time consumption.

It is recommended because it passed every test placed evaluating a trading method.

What Makes it Effective for You?

First, the method is absolutely complete. Forex Profit Accelerator teaches the precise setup conditions, exact entry rules, intial stop rules and different exit strategies for each of the four methods it contains.

This is so unique– because most courses out there barely teach Forex Traders a single method, but this teaches FOUR effective methods. The great thing about having to teach four methods is that it teaches forex traders to see more opportunities to maximize the profit potential.

Next, Bill Poulos is dead serious and hence one of the loudest voices in Risk Management. The risk management tactics is more than easy to understand, it is easy to apply and it lets you incorporate it into your own trading career. Education as such will be yours forever.

Another, the Forex Profit Accelerator is based on technical analysis, yet still is for market interpretation. One of the aspects that makes it “sold-out” to traders is that Bill Poulos made it clear that not all set-ups become trades. Technical analysis can only bring you up to some point, but with Bill Poulos’ basic and easy training style, you can master technical analysis faster than usual.

Last, and I think this is what the forex traders love about this, is that The Forex Profit Accelerator is so easy to understand and use, and is based on end-of-day trading (new york close). I found out that you can do all trading activities in less that 30 minutes a night, including analysis, placing orders, adjusting stops and managing open trades. Considering you have four forex methods to work with, that’s what makes it short, simple and yet profitable methods.

Tips for Forex Method Validation : See if Your Trading Method can Make you Rich

Every Forex trader finds himself literally drowned in all of the trading methods, systems and automated programs, day by day we are finding it hard the method that really works —at least for us. Any method out there, no matter how complicated, simple or “effective”, cannot guarantee you financial success unless YOU understand and learn to use it to your advantage.

I have made another article regarding the method validation for whatever trading method you are using, here is another in relation to that.

1. Technical Indicators. Any good trading method out there will avoid too many or wrong technical indicators. Any trader with too many forex indicators will find themselves confused and will have conflict in their profit potential. The key here is simplicity. The more simple indicators are to understand, the more it is effective.

If you want to find a good trading method, few forex indicators together can identify whether you have a strong trade opportunity or not. I have discovered 3 to 4 indicators working together to accomplish this. An easy trading method may mean simple; and simple is the key of being effective. Forex traders should be cautious if using more than 4 forex indicators.

2. Another, any good method should not be purely mechanical. By mechanical, I mean there will be no room for market interpretation. Any good method will allow a forex trader to see the larger picture. E.G. is a forex pair in an extended downtrend? If so, is now the time to buy an uptrend? A mechanical system will tell you “buy” but a forex trader who succumbs to this will not see the bigger picture or have his own interpretation and instead just follow the signals and may face a disappointing consequence.

3. A good method makes a good trader. The method you should be using should help you establish discipline. This means the actions of trading — buying, selling, setting stops, and the like. If you have to face too many decisions, you are more likely to end afraid, and may not profit because you did not make a trade. Fear brings you to nothing. A method you use should be easy to follow, because the way to remove fear is understanding.

The trading method that can make you rich should use simple indicators to identify a trending forex pair, and such a way provide a lower risk and higher profit potential. Any fx master’s method is more simple than you think, because it is easy to understand, apply therefore easier to lower risk and pull in the profits.

With these keys , I hope you are enlightened on what trading method you should follow. This information here and the other information in the articles I wrote should help you be saved from the headache and the heartbreak of a Forex loss.

How to Profitably Trade Forex without Staring at Charts all DayHow to Profitably Trade Forex without Staring at Charts all Day

Most of the courses, trading e-books, forex mentors and all other sources I encountered shares “the secret” in Forex trading, and no, I am not talking about the popular movie made by Bob Proctor etc. What “secret” the forex mentors and “gurus” out there may have teach you, directly or indirectly, is to Day Trade, which leads to OVERTRADING. Most say that you need to make a career out of Forex in order to succeed in it. This is not the secret to financial freedom.

What do I mean by that? I mean like replacing your current job with Forex, and yeah… you just did “fire your boss”, but you are not free,not at your best, you have just created another boss that is harder to battle than your current, YOU. Forex is an opportunity to enjoy life, a part-time income source, yet a full time devotion. You can enjoy financial freedom now with Forex.

You can be rich trading yet have time for your kids, do that hobby you always wanted, have vacations with all your forex profit (which means a lot), and whatever you want to do with your life it is possible with Forex, no wonder it already is becoming one of the most popular home business nowadays, without the competition of MLM and other businesses, but the profit potential is just huge!

The myth is, that if you cannot be successful in day trading, therefore you cannot be successful trading by end of day as well.

The truth is that there are many more Forex Traders growing by the minute, but not all of them are full time. It is so impossible to just stare at charts and day trade all day and have that job also. You cannot indeed serve two masters at the same time. And by the way, staring at charts all day requires so much attention that if you miss any detail, you may have lose the opportunity to gain profit.

Do you believe that there is always a better and more convenient way to trade at Forex? Contrary to the myth I just mentioned, you can still be successful and very wealthy in Forex even in trading by end of day, simply because they have different rules to follow and different attitudes required, but in the end, the less stressful and equally profitable choice to trade is at the trading by end of day.

Along with using technical factors, trading by end of day allows you to spend more time to see “the big picture” or the long term trends — is there really a trend? Am I doing it right? You can do this in a more peaceful trading hours following the New York close ( 5:00 pm eastern time). It also possible you spend 20-30 minutes in it.

Here’s a brief example:

Using a recent chart of the EUR/USD pair, from March 2009, shows a strong move from the 1.2600 range to 1.3000 — a 400 pip gain, which took about 7 days to complete and should have been captured by a good end of day trading method. However, that same chart shows more extreme fluctuations as the price ranged sideways in a 200 pip channel — if a forex trader is trying to day trade in that channel, the trader can quickly find themselves on the wrong side of a trade in more extreme short term volatility.

Simple, trading by end of day requires more patience, your own analysis (this is where the fruits of education and discipline comes in), another approach in trading methods, but is equally profitable as the stressful day trading. If you want to tap in the Forex goldmine yet still have a job, or a life, this is the best time for you. You do not want stress and still want to be rich with Forex right?

What if you can still have your cake and eat it too; that you can still have great taste without the calories, sounds heaven sent? Believe me it is not. There is always a better way.

Tips to Find the Forex Method that will Give your Economy Rebound

The Forex Market is indeed to be one of the great places to produce tremendous wealth, even in an recent economy of uncertainty. Better than Stocks and Futures Markets combined, Forex has opened its doors to individuals that want to have wealth sooner than they thought, and even larger than they ever dreamed of, and yes, that is you and me. In a such situation of the economy, companies turn their heads on Forex for additional income.

Did you know that the Forex Market is like fire? Because, if you do not know how to nourish or control fire, it takes over you and does some damage that can scar for for a very long time. But if you know where to direct it, place it, control its intensity and quantity, then fire is not a damaging element anymore, but useful. Evolution and time has taught man to control fire.

Same as in Forex, if you do not know how to make Forex work for you, your loss can be heartbraking and traumatizing. Forex Traders fail in forex, but not because it was just too risky, if you dig down deep, they tend to use a trade method that doesn’t work, for them. Remember that no matter how “effective” a trade method is, it won’t work unless it works for you. There are many forex trader success stories, using the method that works for them.

But what is a good trade method?

Here are some guidelines in order to determine if a trade method will benefit you the most:

1. It must be a complete method, with setup conditions, entry rules, initial stop rules, and exit strategy rules, leaving no decision to chance.

2 . It must include specific risk management, money management, and portfolio management guidelines.

3. It must be based on technical analysis, but it must not be a 100% mechanical system.

4. It must take less than an hour a day to apply after learning how to trade with it.

In evolution and time, there are forex methods that some may not be aware of, on how Forex is flame that can be put to our good use and maybe it becomes an important resource of convenience, financial convenience. Find a good trading method using the guidelines mentioned, there are good methods out there that you can use to experience financial freedom with Forex, it is possible to have your economy rebound with Forex. Start now.

Forex Wealth can be Made inspite of Economy in a Recession

If you are a Forex Trader, no matter what experience you have, this is information you don’t see everyday. It is possible to build more wealth from short term forex trading even if recession is been bothering you. It is just a matter of making the economy work for you.

It is true that there are successful traders out there, and some unsuccessful..yet. It is because they have not seen or recieved a forex training that is custom-made for soon to be elite traders. One of the top Forex Brokers has just released the March 2009 update of one of his multimedia training kits that defies all the odds that creates wealth and breaks the norm of the other forex traders.

If this 30++ year old forex instructor and trader showed you a custom made, multimedia “blueprint” that address every mistake you made or might make, will you grab it? This is based on the over 100,000 forex traders that took part in the study to determine what works in forex trading and what does not. Timing in a recession of the economy.

You shall have access to it later.

The result of this study is a multimedia system that shows that popular or “bandwagon” does not always mean effective in the Forex Markets. Instead, a system that reveals what the Forex Elite is doing.

The training introduction is called the Forex 4 Pack

20 minutes a day?

You will discover how the forex veteran spends 20 minutes a day trading with confidence, and maximizes the pip potential that most forex traders find in themselves hard to achieve, forex wealth.

You will also learn :

** How to “shake out” the good Forex brokers from the
unscrupulous ones. Many brokers won’t be prepared when you
ask them these 5 questions (part 1, page 16, & part 4).

** The “core essentials” of Forex trading that will let you
“leapfrog” over other traders, giving you a “fast track”
that would otherwise take months, or years to achieve (part
2).

** The 4 “golden rules” your Forex trading method MUST
follow if you want to have an edge over all other traders
(part 1, page 58).

** The “insiders formula” on how to determine the best mix
of technical indicators to use when trading Forex pairs
(part 1, page 27).

** Step-by-step tactics for applying the “Optimal Profit
Exit Strategy”. This is a deadly accurate way of enjoying
profit-taking as quickly as possible (part 1, page 37).

** The 4 market conditions that you should avoid at all
costs and that practically eradicate risk (part 3).

** How to drastically reduce your “time in the trenches”
trading Forex by spending only 20 minutes a day. These 2
discoveries make it all possible (part 1, page 70).

** …plus, there’s a TON more you’ll get to sink your teeth
into when you get the ‘4-Pack’…

Sadly, it isn’t for sale.

This is not like any other few page e-books that some people put value and sell off the net. Instead, it is a collection of reports, video tutorials, and even a scorecard you can use when choosing/evaluating a broker.

It is for free! Take your time and read it all. And is advisable to download it right away. Why? Because it may not be available always, it has a large file size and it can be cut off anytime if the servers have too much request for the material.

Why Forex Trading Beginners Fail in Choosing a Method that Works

Often, Forex beginners have a method complexity syndrome that separates the independent and the dependent minded ones. Finding themselves research trading methods, purchase and immediately do it, without carefully choosing to consider many factors such as risk management, discipline and psychology. Trading beginners tend to be dependent minded this way, which is very dangerous for any promising successful Forex trader.

Blinded by the sales page of the trading methods being sold to them, all those words of “unlocking the secret” and “unknown key to forex success”, make them disappointed in the end most of the time. They discover that some of the content are already heard about once or twice. The have the conclusion of it being too “simple”, no wonder there are some good,quality trading methods out there are having negative comments. It is not of the trading method, but the one who used it.

Some of them seek for a formula that others may find too complicated, where it is actually a ‘combination of indicators’ or a set of simple indicators combined in the most uncommon way. Thinking this way may also lead to disappointment, because they assume that a method in Forex must be complex and not too simple, and any other method they encounter should be more complex than what they discovered, or else, they complain and give up.

Amateur traders make this mistake. The process may repeat until one gives up, without even fully investing in understanding the full process in trading.

Most of the trading methods out there are not complicated, they are smaller set of rules combined in a simple manner and applied in the most uncommon way. The “complicated stuff” are for geeks and big banks. The bottom line is, if you can not understand something, it is impossible to apply it.

It is best not to skip in learning a powerful new method in Forex trading. You need to learn:

- the proper set-up, entry and exit rules
- how to protect your trade with stops
- how to apply your method in a timely basis, to get most out of the method
- how your learning adds up together to make you a better trader, not a frustrated one.

Simple is not always the easy way, it was just built step by step for the easiest of understanding and application. Simple=Powerful, with the use of just few indicators and rules in a non-textbook approach, is what makes success in the financial markets

Forex Scams - How To Avoid Them There is plenty of opportunity for unscrupulous people to make money fraudulently by launching a forex trading scam.

There is plenty of opportunity for unscrupulous people to make money fraudulently by launching a forex trading scam. Unfortunately there are always people who will part with money too fast in the hope of making more. However, we cannot assume that a system has to make cash for everybody using it in order to be genuine. So what are the signs of a real scam?

1. Unrealistic claims

All websites that are promoting a forex product or service will try to appeal to your wish to make money. That is what forex day trading is about, after all. But if a site promises to make you millions of dollars virtually overnight no matter who you are and without requiring any work on your part, stay clear.

2. Huge earnings on trading account screenshots

It is also common for sites to provide images of their own trading account results to convince you that their system makes money. This is common practice. A scammer will fake the screenshots using Photoshop, and it is pretty much impossible to tell.

So although having screenshots on the site is not in itself a problem, you shouldn’t pay much attention to them. Even if they are not faked, you don’t know that the person followed the exact system you are buying in order to obtain those results … and even if the figures are 100% genuine, it certainly does not mean that you will achieve the same results.

3. No guarantee

There should be a money back guarantee on any product and you should not have to jump through hoops to get it. Look for a “no questions” 100% guarantee rather than something that says you must have followed all instructions to the letter before you can qualify for a refund. Following the instructions may include investing more money than you have.

If you are buying a downloadable product such as an ebook or expert advisor, you can trust anything that is sold by Clickbank as far as refunds are concerned. Clickbank will always refund these items within about 56 days of your purchase.

If you are looking at a membership site or a service, refunds on past payments may not be offered because of the time that the company will have put in to providing the service for you during the time that you were a member. However, you should make sure that you can cancel at any time without incurring further charges. Don’t sign up for something that locks you into a contract for 6 or 12 months.

4. Bad press in the forums

All products will show you recommendations and testimonials from satisfied customers. If you want to be sure you can ask for evidence that they are real, and a genuine business will usually find a way for you to contact the person if there is not already a link given along with the testimonial.

But even the worst day trading system will have some users who were just lucky. What you want to know is what the unsatisfied customers are saying. There will be some for every product, no matter how good, and you need to find them and sift through their comments. Are they just unhappy because they didn’t make a lot of money overnight, or was there a genuine problem with the product? Search for them in online forums to get a clear idea of which products are worthwhile and which ones might be a forex scam.

Trading Software – Try It before You Trade Live

Forex has become almost pervasive in today’s trading environment, but which software performs the best? The answer to this question may be illusive because there are so many choices. This is dilemma is compounded by the fact that there is not very much margin for error because, with Forex, most people cannot afford to lose big in a live trading account. Demoing the various software offerings from various sources on a demo account makes the most since and will definitely save money in the short and long run..With so many competing, how does one go about finding the right software solution? First of all, it will depend on what your goals are. Do you plan to trade intraday, or will you trade over the long term? The trading strategy that you use when trading is critical when you are considering purchasing a Forex trading software platform. Conduct a bit of research before you decide which one that you want to use with your strategy. Blogs are a great source for information because people tend to be more honest on blogs.

Narrow down your selection after you have searched two or three blogs and forums. While this could be simple, it could be challenging. oftentimes] the software vendors manipulate emotions to buy by stating how much money that the software will make. charting software. To select the right software that is required for the chosen strategy, try to get past the vendor hype.

After the hype has subsided, open a demo account with a repitable broker to test drive the charting software. Trial periods are commonly offered by most Forex Charting software providers. Test the software with the demo account for one to two weeks to see if the software lives up to the hype. [Trying out. After using the software over a period of days, one should be able to access if it meets his/her requirements.

Conclusion, there are several trading sources that are competing in the Forex trading software markets, and it can be difficult to recognize which software meets the requirements for a given trading strategy or approach. Use caution when deciding which software to choose because eventually real money will be invested using the software. Test drive the software with a demo account first to make sure that it is stable, user-friendly, and reliable on a demo account before it is tested in a live (actual money) environment.

5 Risks The New Forex Trader Ought To Be Acquainted With

Just like almost all other forms of trading, foreign currency trading has risks and those new to foreign currency trading need to be acquainted with these before dipping a toe into the foreign exchange pond. In this article we look at the 5 most commonly encountered risks of foreign currency trading.

1. Forex scams. In recent years the industry has done a great deal to sort things out and today Forex scams are certainly far less common than they once were. However, they do still exist.

It is fairly simple to open a mini Forex trading account, especially online, and a Forex scam is simply a case of a crook setting up a website pretending to be a broker, inviting you to open an account and deposit money into it and then disappearing without a trace.

So that you do not get caught out you need to check out any broker very carefully prior to opening an account. Select a broker who has an association with a major financial institution (such as an insurance company or bank) and who is also registered as a broker. In the US brokers will be either registered with the Commodities Futures Trading Commission (CFTC) or will be a member of the National Futures Association (NFA).

2. Exchange Rates. One of the pulls of the foreign exchange market is that it can be tremendously volatile with currencies moving considerably against each other in very short time periods leading to rapid and considerable gains. However, the other side of the coin is that the market can also produce sizeable and rapid losses.

Happily traders do have tools available to help to limit this risk and new traders need to learn how to use these tools and ensure that they use them to the full each time they open a trading position.

3. Credit Risk. Because there are two parties (a buyer and a seller) taking part in each trade there is always a possibility that one party will fail to honor his or her commitment once a deal is closed. Generally this happens when a bank or financial institution declares insolvency.

You can lessen any credit risk significantly by trading only on regulated exchanges that require members to be monitored to ensure their credit worthiness.

4. Interest Rate Risk. Whenever you are trading a pair of currencies you need to watch for discrepancies between the underlying interest rates in the two countries in question because any discrepancy can produce a difference between the profit predicted and the profit which is actually received.

5. Country Risk. Occasionally a government will intervene in the Forex markets in order to limit the flow of its country’s currency. It is unlikely that this will take place in the case of a major world currency but might occur for minor and less often traded currencies.

Naturally, these are just a few of the risks involved in foreign exchange trading and novice traders will need to acquaint themselves with the other risks as they go along. Nevertheless, a sound understanding of the risks given here is vital before you enter the trading arena.

Trading Software – Try It before You Trade Live

Forex has become almost pervasive in today’s trading environment, but which software performs the best? The answer to this question may be illusive because there are so many choices. This is dilemma is compounded by the fact that there is not very much margin for error because, with Forex, most people cannot afford to lose big in a live trading account. Demoing the various software offerings from various sources on a demo account makes the most since and will definitely save money in the short and long run..With so many competing, how does one go about finding the right software solution? First of all, it will depend on what your goals are. Do you plan to trade intraday, or will you trade over the long term? The trading strategy that you use when trading is critical when you are considering purchasing a Forex trading software platform. Conduct a bit of research before you decide which one that you want to use with your strategy. Blogs are a great source for information because people tend to be more honest on blogs.

Narrow down your selection after you have searched two or three blogs and forums. While this could be simple, it could be challenging. oftentimes] the software vendors manipulate emotions to buy by stating how much money that the software will make. charting software. To select the right software that is required for the chosen strategy, try to get past the vendor hype.

After the hype has subsided, open a demo account with a repitable broker to test drive the charting software. Trial periods are commonly offered by most Forex Charting software providers. Test the software with the demo account for one to two weeks to see if the software lives up to the hype. [Trying out. After using the software over a period of days, one should be able to access if it meets his/her requirements.

Conclusion, there are several trading sources that are competing in the Forex trading software markets, and it can be difficult to recognize which software meets the requirements for a given trading strategy or approach. Use caution when deciding which software to choose because eventually real money will be invested using the software. Test drive the software with a demo account first to make sure that it is stable, user-friendly, and reliable on a demo account before it is tested in a live (actual money) environment.

Forex Scams - How To Avoid Them

There is plenty of opportunity for unscrupulous people to make money fraudulently by launching a forex trading scam. Unfortunately there are always people who will part with money too fast in the hope of making more. However, we cannot assume that a system has to make cash for everybody using it in order to be genuine. So what are the signs of a real scam?

1. Unrealistic claims

All websites that are promoting a forex product or service will try to appeal to your wish to make money. That is what forex day trading is about, after all. But if a site promises to make you millions of dollars virtually overnight no matter who you are and without requiring any work on your part, stay clear.

2. Huge earnings on trading account screenshots

It is also common for sites to provide images of their own trading account results to convince you that their system makes money. This is common practice. A scammer will fake the screenshots using Photoshop, and it is pretty much impossible to tell.

So although having screenshots on the site is not in itself a problem, you shouldn’t pay much attention to them. Even if they are not faked, you don’t know that the person followed the exact system you are buying in order to obtain those results … and even if the figures are 100% genuine, it certainly does not mean that you will achieve the same results.

3. No guarantee

There should be a money back guarantee on any product and you should not have to jump through hoops to get it. Look for a “no questions” 100% guarantee rather than something that says you must have followed all instructions to the letter before you can qualify for a refund. Following the instructions may include investing more money than you have.

If you are buying a downloadable product such as an ebook or expert advisor, you can trust anything that is sold by Clickbank as far as refunds are concerned. Clickbank will always refund these items within about 56 days of your purchase.

If you are looking at a membership site or a service, refunds on past payments may not be offered because of the time that the company will have put in to providing the service for you during the time that you were a member. However, you should make sure that you can cancel at any time without incurring further charges. Don’t sign up for something that locks you into a contract for 6 or 12 months.

4. Bad press in the forums

All products will show you recommendations and testimonials from satisfied customers. If you want to be sure you can ask for evidence that they are real, and a genuine business will usually find a way for you to contact the person if there is not already a link given along with the testimonial.

But even the worst day trading system will have some users who were just lucky. What you want to know is what the unsatisfied customers are saying. There will be some for every product, no matter how good, and you need to find them and sift through their comments. Are they just unhappy because they didn’t make a lot of money overnight, or was there a genuine problem with the product? Search for them in online forums to get a clear idea of which products are worthwhile and which ones might be a forex scam.