All posts by Owen Moore

Forex Trading

News Trading – Doing It Effectively

Leave a comment

You cannot underestimate the influence of news on the forex market. If you do you are sure to disregard your technical analysis based system at one point but little will you know that your system is as innocent as you are as ignorant of the influence news has on the market.

If you want to involve yourself in the forex market; you must know what affects it. There is only one answer to that. The news! No matter how good your trading system is, disregarding global news will make you baffled at some unexpected market moves.

Use of news trading When News is released, especially relevant news, you certainly can expect the market to make a move because you can also expect other traders to be watching the news and therefore you can expect to act on the news. At such times it will be better to be on the correct side of the market

Dangers of News trading As with all methods of trading the forex market there must be a disadvantage. -Because the markets are so volatile after the release of important news, most brokers will likely increase their spreads and this can hurt your trading.

-Slippage becomes probable during periods of important news releases. It occurs if you trigger an order and due to huge volatility you are filled in with a different price.

-Big market moves don’t generally move in a single direction. There is usually a high risk of a good whipsaw before market participants eventually agree on which direction is the best to go relative to the particular occurrence. It can lead to profits but it is difficult to implement. You need to have a ability in global economics and its impacts on the forex market. And this is simply not easy.

Which News is important There hundreds of news reported daily and if you were to follow all these reports you will definitely mess up your trading system. Below we identify key news releases you should follow in order to be successful in news trading.

The US is the most important player in the market and you should follow for a start only news from the US -US inflation and central bank news are so important and play a big role in the forex market.

Also keep a keen eye on geo-political news like wars, natural disasters etc. Although this may not have bearing like central bank information it can certainly move the market.

Follow major stock market motions too.

It is important to note that when trading the news you should trade only the liquid pairs as they are the pairs affected hugely and directly by Fundamental analysis.

These pairs are but not limited to: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD.

We conclude with some general basics to note : When you have a directional bias, you are expecting price to move a certain direction, and you’ve got your orders in already. It is always good to understand the underlying reasons why the market moves in a certain direction when news is released. When trading using non-directional bias you are not bothered about where the price will go but are always ready to follow the market.

Discover more about working on trading techniques on day trading strategy. Find out more about a wonderful broker unbiased recommendation to cater to your trading on AvaFX brokerage info.

Forex Trading

Choosing The Forex Broker- Five Facts To Consider

Leave a comment

There are many forex brokers available. This very fact leads to the confusion. It is likely that you will be a beginner so choosing the forex broker is a little tricky. It is a fierce market. Different brokers will come up with variety of ideas to attract more and more traders. You should not choose the broker based on the attractive schemes but on the basis of the few fundamental factors which are very important. If you get a good deal from a broker which suits you, then it will be a great combination.

Membership of the Regulatory Body

Your broker should be credible because you are going to deposit thousands of dollars of your hard earned money. Your money is safe with the credible broker. You can find this by checking if the broker is a member of a reputed regulatory agency. If the broker is a member of these agencies then it is a sign that they are doing the business seriously and are not cheating. Some of the prominent regulatory agencies are National Futures Association and Commodity Futures Trading Commission from USA, Financial Services Authority from UK to name a few.

Seamless Deposit and Withdrawal

The process of depositing and withdrawing the money from your account should be seamless. Excellent brokers allow performing these transactions with ease. You should to take money out whenever you want. Also consider the fees to perform these transactions.

Trading Software- An Important Consideration

The platform is also important consideration while choosing the forex broker. The platform should be very easy to operate and user friendly. The tools for analyzing should be included within the platform. The data release should be passed through the platform as and when they are released. Check out all types of platforms offered by the broker. You should juxtapose the short listed brokers.

Low Commission on Trades

On each trade you pay a certain amount to the broker. In forex you pay the difference between the bid and the ask price as a commission to the broker. This brokerage should be less than most brokers. But choosing the forex broker solely on the basis of low brokerage is not something you should do. Considering this aspect, you should also study your type of trading. If you are a scalper who is happy to scalp few pips many times a day, you are better off with a broker with tighter spread. If you are a position trader then tighter spread will not be much of a concern for you.

An Easy Access to Support Team

Enough consideration should be given to customer service while choosing the forex broker. You should be able to contact them anytime of the day. Choosing a local broker may help you because you can call them easily than a foreign broker. It is very important for a beginner.

Choosing the forex broker is a difficult decision. You are required to do some work to choose a broker. Look on the different forums for the reviews. Speak to senior people in this business. Try the demo account of different broker. It will also introduce you to actual trading environment. You should select the broker who fits your bill perfectly.

As you now know the fundamentals to think about, find out more detailed guide in choosing a forex broker. If you are seeking a decent broker, I would recommend your take a look at Lite Forex review.

Forex Trading

Forex Data Release Flows the Foreign Currencies. Playing with Data Release Is a Dangerous High Incentive Game.

Leave a comment

Forex Data Release- Three Considerations to Know

Forex trading involves a substantial risk. The reason for such a strong belief is the leverage. Along with the huge potential profits; leverage also increases the chances of huge losses. Many factors move the whole currency market. Knowing these factors will help you become a good trader. Forex data release is one of the movers of the currency market.

Substantial Risk Involved in Trading News

The volatility during the news release is mostly at the peak. A huge move withing few moments is not unheard of. You can make a lot of money by being in the market during such time but you also take the substantial risk which may not be suitable for you. Your stop loss may not work because market will fall or rise in seconds usually missing your stops. Inexperienced traders can stay out of the market. This way you will avoid lot of agony. You should trade forex data release on paper till you get familiar.

Major Mover of Currency- Macroeconomic Factors

The short term moves in the market are the result of the reaction of market to a particular event. For stocks it could be anything from macro level announcement to the micro level announcement by the company. Forex moves according to the interpretation of the macroeconomic events. The performance of the country will influence the movement in currency of that currency. For example forex data release from Australia will influence the Australian dollar. Many of the European countries use Euro as their currency. The data release from Europe will have an impact on Euro.

Subdued Reaction to News

There will be times when market will not react violently to the news. Not much of huge moves will be seen at times. Many cite the reason of the discount already factored in by the market. The expected data by market participants is publicly known. The actual data announced is same as expected data, market has already discounted such data and it will not react heavily to news announcement. You will often see huge moves during major forex data releases like interest rate decision, non farm payroll etc. So you as a beginner should avoid putting money on the table during such release.

Apart from above mentioned data releases, other important data releases are consumer price index, consumer confidence index, GDP, trade balances etc. The currencies you should keep your eye on for data release are USD, GBP, EURO, CHF, CAD, AUD, NZD, and JPY. There are numerous websites which give information about the upcoming forex data releases. A lot of money can be made from trading during the data release within a short span of time. But it requires a lot of practice to trade in such markets. If you can not take quick decision you should not be trading during data release. You make money not only from trading but also from not trading sometimes. Manage risk effectively when you trade.

The currency market trading is prone to activities caused by the release of economic news. You need to do the research and remain on top of financial news and you could harvest the gains. Pay a visit to best trading system to determine the best forex trading system. Visit Dukascopy forex broker which iscapable of maintaining decent spread also during news releases.

Forex Trading

4 Information And Events To Check (For News Trader) As Well As The Reasons Why

Leave a comment

There are only two ways of trading in the Forex market, technical and fundamental trading. The technical trading approach involves monitoring and watching Forex charts. Tools such as moving average and indicators such as fibonacci studies and trendline analysis are used to do this. On the other hand, the fundamental trading approach involves basing your odds on the market news. This is the overall principle of Forex news and event trading. By far, trading the Forex news and events is one of the most profitable strategies that would enable a trader to make large sums of money within a short time. As compared to technical trading, this approach is considered less risky. To be profitable with Forex news trading, there are various news and events to watch. Here are some of them.

1. US dollar news

To be profitable with news and events trading, you must keenly follow every news and events that involves US dollars. Forex trading and the market as a whole is greatly influenced by US dollar. This fact is well known by most traders including the technical traders. A number of participants in the market are keenly following the US dollar news to take any slight advantage and avoid being on the wrong side of the market which would make them less profitable. There are hot announcements involving US dollar which are released every month.

2. Employment reports

Employment report is released regularly every month on a Friday. This is a hot announcement to watch if you want to be successful with news and events trading. It is important for news trading because the employment has a direct impact on the US dollar currency. We have illustrated the impact that US dollar has in the Forex market. Any other item that affects the US dollar also affects the market in general. Massive moves in the currency prices are expected when large numbers miss employment. However, you need to be careful because the effect happens for a short duration.

3. International trade

The third important news and events to be privy of is the international trade announcements. There are two major reasons why the news about internal trade is very important. First, it influences both the economic strength and growth of US dollar. Due to this influence, it directly dictates the overall movement of other currency prices. Secondly, international trade is used as a strong measure of other trade-centric economies like the Japan.

4. Trade balance

In the Forex market, there are significant effects and impacts that news about trade balance causes to currency prices. This is because balance of trade directly influences the strength of the country’s currency and the economy at large. For example, an economy that is importing in excess of the amount of goods that they export to their trade partner would be forced to pay for the goods using their local currency making it weaker against the other currency. In the Forex market, this would lead to a weaker position for the particular currency pair.

Conclusion

Fundamental trading, or simply Forex news trading is only profitable if the trader understands the global news and events to watch and follow. There are many other news and events to watch apart from what has been discussed above. For a news trader to be successful, he must keenly watch two kinds of news; news which are moving the market and those that are causing predictable reactions.

Well right now you understand how essential it is to find out the global news and events, visit swing trading system to find out a few new approaches to improve your profit, also checkout RoboForex review to find some good info regarding one of the most trusted online forex brokers.

Forex Trading

Information to Learn Before You Participate In Day Trading

Leave a comment

Day trading provides very useful tools that allow anyone to be profitable in the foreign exchange market. For eager and prospective investor in the Forex market, you should understand how you can use the day trading tools to make profits. This is the aim of this article. In this article we provide an overview of the ad trading strategies needed before you enter the market.

In the Forex, there are different strategies that investors can apply to make profits. One of them commonly used is day trading. Through this strategy, a trader is required to open and close several trades within a single trading day. You profits from the little profit margins. If a trader opened several trades, the profits level is substantially increased. An open position is not held for long by a day trader. Continue reading through the article and you will understand the best way to take advantage of the day trading strategy and become highly profitable.

Understanding day trading

Let’s start by illustrating what day trading is. Day trading, as explained in the introduction, is Forex trading strategies that focus on opening and closing several different trades in a single day. The trader benefits from the small profits bagged from these traders. This results in huge profits when all these small profits are combined. More than 100 trades can be opened by a day trader within a single day. One major characteristic of day traders is their unwillingness to hold open position for long. A day trader is ready to close any open position shortly after a small price increment.

The risks taken

In general, Forex trading is a risky undertaking. Therefore there is substantial risk involved whether using day trading strategies or others. You should be fully aware of these risks so that you design the appropriate control measures to use. Although there are risks involved, day trading strategies are considered to reduce the level of risk exposure if used wisely. There Day trading strategies is considered risky due to many factors like the level by which your funds are exposed to the market uncertainties. The level of risks involved is increased when too many trading positions are opened. Stop Loss and Take Profit orders can be used to reduce the risk level. These tools provided by the Forex broker are very important and you can use them to manage your trades.

The training needed

Successful Forex trading requires training. Not only day trading strategies require sound training but the Forex trading concept and market at large. It is important to get the right training so that you get equipped with the right knowledge and tools necessary for Forex day trading. Your Forex broker will provide the necessary training. If you are a newbie, never initiate any trade without undertaking proper training. Proper training lets you understand the concept of day trading and how to use it to make consistent profits. In addition, training helps you learn the aspects of controlling and minimizing losses while you trade.

Conclusion

Day trading is one of the easiest and safest methods to turn highly profitable in the Forex trading. However, this success is only possible when the process is correctly undertaken. More than a million Forex traders are using day trading strategies and have turned profitable. It is one of the widely applied Forex trading strategies across the world. This method has yield consistent profitable results. The best part is that it gives traders greater opportunities to control the risks while trading.

Find out more thorough tips about winning in day trading on learn day trading. If you aren’t depending on news, see the information on a tight-spread broker that is fantastic for day trading at 1 Pip Fix review.