Forex Fundamental Analysis

The fundamental analysis provides a good picture of the forex market along with the sentimental and technical analysis. Of course it is of importance to the three analyzes. That way you can look at the market from different angles. So you can build certain securities and earn more money with forex. The fundamental analysis is what it is a fairly simple part, provided you have built enough experience. That way you will learn very practical what the different messages cause the market change.

Economic situation
Within the fundamental analysis, it is important to take into account the economic situation. When it goes well with a given country, it is likely that a certain currency will also make good money. Thus it may happen in America during unexpected economic growth. In that case, the dollar will gain strength. Conversely, it is obviously the case when there is an economic downturn. Here it is important to also pay attention to inflation.

Political situation
The political situation can easily ensure that the fundamental analysis contains important information. Thus, a political crisis may pull such strong currency downward. On the other hand, stability is a prerequisite for growth, so you can test any economic growth. As you can do with the fundamental analysis to find out the growth of a desired result. It is thus a kind of security that you can build to interpret the information in the right way.

Interest rates
The interest rates are a bit trickier part of the fundamental analysis. You can interpret the increasing the interest namely in two different ways. Thus, on the one hand, that a boom is restrained, but on the other hand, possible that the inflation halt. In the first case, the value of the currency increase. In the other case, this is not so, as there are fears that the money will have less worth. It is therefore good to the interest rates in the monitor and always with the economic situation.

Trade
Finally, it is interesting to note the example of American trade with Europe when Europe makes a lot more exports. In that case, the euro got big worth, since the demand for this currency increases. The fundamental analysis can thus also in the short term insight into what currency is best to buy, but these opportunities are relatively scarce.

Features of a Good Forex Robot

With Forex trading there are several tasks that need to be performed and for several of them there is always the need of using a robot to get these tasks simplified. Many currency traders make use of this software program that can help them creating more profit since many trades will automatically come in and out within this fluctuating market. If you want to make use of these robots you will find that they can help you get rid of the manual way of performing this trading.

So if you want to cut the time that a manual trading requires you should consider making use of the Forex robots while allowing you to stay updated with the trades and keep good track of them. But what makes one of these robots be better over another? Is there such delimitation?

* One feature is the trading technique that some of the robots apply irrespective of the market conditions. This technique relies on currency pair trading but for Forex traders confronting with constant changes everyday this may become a problem. With the currency pair the rates can turn out to be traded differently. For this fact, you need to consider choosing a good robot that constantly receives updates without any gaps.

* Another feature that you should find with your good Forex robot is the comparison that it can make between the other trading robots.

* You should also check the robot able to follow more trading rules as in this way the system turns out to be more flexible. Through this flexibility different changes occurred within the Forex trading market are easily perceived. As a result you will have more profits when compared to other traders.

Forex Robots – How Can They Help

As a beginner in the forex trading world you will find it hard to penetrate the intricacies of this trading market and for this fact you may have to get some help in order to have a clear understanding on how things work with this type of trading. There are various ways available for you to learn about forex trading systems and their techniques, but this article will introduce you to the automated trading software otherwise known as robots.

If you resort to robots for this trading market, as an amateur you will benefit from increasing your chances into earning the expected money. You must know by now that this market is operable 24 hours for almost all the days of the week and for this fact you will find it hard to have a constant control on its daily evolution. Let’s not forget that this is a fluctuating market and there are constant changes occurring that you need to know of. As a beginner you shouldn’t leave your current job just hoping that you will earn your income from this trading.

At this point you might need to get forex software and enable it to do the work for you. These robots can be set to auto-mode in order to trade on your behalf while you attend other tasks. You shouldn’t expect for these robots to always make profit for you, but you should expect them to win more than losing. On the other hand, do not leave all the work on the robots because they won’t be able to win unless you have some knowledge on forex trading. Therefore, make sure that you acquire at least the basics and then make use of forex robots to assist you in the trading.

Pinbar Forex Trading Setup

How do you recognize a pinbar

The Pinbar is recognized by its long shadow on the top and very short or no shadow at the bottom. Some call it the long shadow of his long nose. The name pinbar is indeed a derivative of Pinocchio bar, which refers to the fairy with long Pinocchio nose. The larger the time signal, the longer the nose. The length of the shadow is at least two thirds of the body of the candle. Preferably longer, because the longer and stronger shadow, this indicates a price decline that took place and the more the signal stands out against the surrounding candles, it is easier to recognize. The Pinbar is usually found at major turning points of the trend, at points where the market corrects itself or as a signal for the continuation of the trend.

The color of the body makes in pinbar not much out. It is true that a reversal of the trend indicates more bearish sentiment. The most perfect Pinbar opens with a gap above the previous candle, but it is more likely that a similar Pinbar opens at the close of the previous candle. The Pinbar is ultimately confirmed by the candle following the pinbar opens lower than the lowest layer of the Pinbar.

How reliable is a pinbar.

Because the Pinbar often occurs, the reliability is less high than other candlestick signals, but therefore you have more chance of a successful setup. A good Pinbar setup comes at a daily chart or daily timeframe averagely three to four times a month along. Professional traders have a profit / loss ratio of 60% with this setup. This means however that they are 40% of their Pinbar setups, breakeven or a loss. Combined with a solid risk management, Pinbar setup can certainly be profitable.

Timing Alerts for Price Actions

As you grow as a newbie Forex trader, your alerts will be your new best friend. Everyone has their own approaches and things that they specifically are interested in, and luckily whatever Forex platform or software you choose will give you a wealth of analysis options and alert capabilities to play with, so once you know what works for you, you can be sure that as long as you can receive those alerts, you’ll never miss a beat. You can even set up automatic buying or selling on certain events. Here we look at using alerts for price actions.

What are Price Actions?
Price actions are a key part of most Forex traders’ approaches, and are an important thing to understand as you start out. Price actions are basically moves you make when a price does a specific thing, such as going over a certain amount. You may, for example, have a price action to sell 50% when the price hits a certain point, leaving the other 50% invested, thereby taking 50% of the reward at that price point but reducing the overall risk of the investment by 50% so you can let the approach play out with a smaller amount effectively bet on it.

What is momentum?

The Forex momentum indicator is used to predict a trend change & price reversal at resistance and support trading range levels. In simple words, Forex momentum mainly calculates the value of the commodity price shifts during a definite period of time. The momentum is quickly growing as a technical indicator in Forex trading. The Forex momentum works on a simple concept. Let’s learn about it.

This Forex tool uses the notion that as a rule the last phase of upward tendency is followed by absolute price increase because everyone is sure that it will go on. Many features of an oscillator can also be found in the momentum. The momentum can be of either positive or negative values. The absolute value of Momentum characterizes the velocity of movement of the prices; the large absolute value of Momentum means fast movement of the prices. Momentum will assist you in taking your trading decision. So make sure that you make the full use of this forex tool. Hope for the best.

What is Candlesticks Chart?

Candlesticks chart is one of the most useful charts in Forex. They help you to know the open, high, low and close value of the Forex market. The candlesticks chart is generally divided into two parts.

The first part is called the “Real Body”. This is the main portion in the chart which displays the spread of Forex trend line between opening and closing. The color of the real body is generally red and blue. The traders pay attention to this part in order to assess the market movement. The second part of the chart is called the “Shadow”.  These shadows can be noticed above or below the real body. Well, the shadows mainly let you know the session highest and lowest value. You will see a peak and crest in the shadow.

Candlesticks chart offers you a genuine chance to extract lots of info about the current trends in market. You don’t need to go through each graph; all details are available over there. This chart even warns you when you are about to follow a wrong path. Hence, it is really helpful.

Best Currency Pairs

Forex trading, which is also known to some as foreign exchange, is the market where you trade currencies based on their trade values at the time of the trade. Whenever you are trading currencies on the forex market, it is done in pairs. You can never trade a currency with its currency, as you’d just get the same amount back with no profit or loss. In the forex market, there are a few currency pairs that have been known to yield the most results in terms of profits. You can always trade with your preferred currency pair, but choosing the right pair to trade with is important!

The four most traded currency pairs, in order of liquidity, are the following;

  • EUR/USD – The Euro and the US Dollar
  • USD/CHF – The US Dollar and the Swiss Franc
  • GBP/USD – The British Pound and the US Dollar
  • USD/JPY – The US Dollar and Japan Yen

Forex trading works with other currency pairs as well, but these are the ones that you would see traded most often. So, how does the currency pair exchange work? Let’s suppose that the British Pound was to increase in comparison to the US Dollar. In this case, you would purchase British Pounds with US Dollars and in the end you would make a profit when it does occur like how assumed. In forex trading, there is little assumption and more critical thinking, as you are basing all your decisions on economic trends, news headlines and forex indicators.

Now, how does the buying and selling price reflect with possible trades? Assume that the price quoted for USD/CHF is 1.25. This would mean that, for every 1 US dollar, you would receive 1.25 in Swiss Franc. A currency pair is considered to get stronger, when you see the price of one currency rising over the other. If you see this happening, there is a good chance for you to make a profit by purchasing the rising currency. However, before doing so, you need to consider other factors and trends as well. The forex market is open around the clock and various economical factors play an important role in the price of a currency.

Overall, there are eighteen currency pairs that most forex traders recommend deal with the following currencies; USD, CAD, EUR, GBP, CHF, NZD, AUD and JPY. You could always consider looking over trends for particular currency pairs, because there is always a possibility of gaining a profit from a different currency pair. Some people use forex system to read trends and analyze them, as it helps with the overall thinking process involved. Forex robots on the other hand would help with trading. You wouldn’t have to be in front of the computer all day long, because the robot is essentially doing your job for you. You simply provide the forex robot with requirements and limits, and it trades based on your currency pair preference.

FOREX TIPS EXPLAINED

Forging a good business plan can sometimes be more than difficult in today’s environment. You will be obligated to work very hard if you plan on building a business from the ground up. For this reason, a lot of people have found that forex currency trading is a good business opportunity. Presented below is some invaluable forex trading advice which will help you on your journey towards making a regular income from the currency exchange markets.

While you do need to use advice from seasoned professionals, do not make choices simply because somebody else thought it was a good idea. Other traders will be sure to share their successes, but probably not their failures. Even if someone has a great track record, they will be wrong sometimes. Adhere to your signals and program, not various other traders.

Forex trading should not be treated lightly. People that want thrills should not get into Forex. Those who think that Forex is a game might be better going to the casino with their money.

Most forex experts emphasize the importance of journals. Keep a journal of wins and losses. This will help you to avoid making the same mistake twice.

Choose the trading strategy that suits your lifestyle. If you have a limited amount of time available for trading in your daily schedule, you should focus on strategies like delayed orders, and working with a more flexible time frame such as weekly or monthly.

Your first priority when trading should always be risk management. Know what kind of money it is okay to lose. Do not go over the stops and limits you place on your trading activity. You can lose your entire account if you aren’t paying attention to what you are doing and being cautious with the risks you take. By learning specific signals of the market and when you will lose money, you will be able to get out before you are dragged into a bottomless pit.

Do you want to attempt forex trading? One of the fundamentals you should learn before entering this arena is how foreign currency markets truly operate. You should be aware of all the factors that affect the currency markets. You should be aware of what foreign currencies are currently being traded on Forex. By doing research and learning about the currency, you will be better prepared to choose the best pairs and make more money in the future.

Use all the resources at your disposal, especially the Internet, to search and find out which Forex brokers you should trust and which you should stay away from. The forums for Forex users can be a great place to get information about different brokers. This information should help you select a reputable broker that will be your partner in the marketplace.

Now, you need to understand that trading with Forex is going to require a lot of effort on your part. Just because you’re not selling something per se doesn’t mean you get an easy ride. Just remember to focus on the tips you’ve learned above, and apply them wherever necessary in order to succeed.

6 Top Tips in Forex Trading You Must Know

In order tо takе advantage оf the forex market, іt iѕ vеry essential fоr yоu tо knоw thе top tips thаt сan guarantee уour success. These ѕіx well-researched tips wіll gо а long waу іn putting the power tо make money іn yоur hands.

1. Use аn innovative trading platform: There аrе differеnt types оf trading platforms wіth distinct features. If yоu reаllу wаnt tо enjoy уour presence іn thе market, yоu muѕt uѕe а platform that combines professionalism wіth innovation. It muѕt bе оne thаt frequently hаѕ nеw features tо enhance profitable trading аnd muѕt be fun tо trade on.

2. Trade wіth а limit: Anytime уou wаnt tо place а trade, bе аlwaуs mindful thаt уоu arе іn а risky market, hence, endeavour tо place trade wіth а limit. Don’t put tоо muсh money іn а pаrtiсular trade beсauѕe уou might nеed tо open anоthеr trading position wіth аnothеr currency pair. Also, dоn’t put аn amount of money уou сannоt afford tо lose in а partіculаr trading position. You ѕhould knоw thаt thе forex trading іѕ highly rewarding and аt thе ѕamе time highly risky, but thoѕe whо аre cautious wіll nоt gеt thеіr fingers burnt.

3. Bring confidence intо yоur trading: Without а high level оf confidence, thеre іs а limit to thе level оf success yоu cаn achieve in thе market. Knowing fully wеll thаt therе іѕ thе possibility оf losing уоur money, іf уou аre nоt vеry confident, уоu wоn’t bе open anу trading position. But іf уou dоn’t open аny trading position, yоu саnnot make anу money іn thе forex world. One of thе secrets of riches іѕ thаt уou must lose bеfore gaining, so, bе confident nо matter thе circumstance.

4. Beware оf high leverages: Leverages in forex arе meant tо increase yоur purchasing power, but уоu ѕhouldn’t gо to thе extreme оf thеir usage. Endeavour tо avoid high leverage аѕ muсh аѕ posѕiblе іn order tо reduce yоur risk exposure.

5. Locate а competent broker: In order tо experience а smooth trading, уou muѕt loоk fоr а broker thаt iѕ reputed tо bе competent іn thе industry. It iѕ important fоr уоu tо carry оut еnоugh research оn brokers sо thаt уоu cаn cоme uр wіth thе best.

6. Exploit social trading: The mоѕt successful traders nоw arе social traders. They usе platforms thаt support social trading to make money thе smart way. They usе оther people’s forecasts аnd trade positions tо open thеir оwn trade positions аnd profit abundantly through thіѕ strategy.