Forex Exchange Blog

FXReturn asked:

Forex|Trading|TechnicalAnalysis| We take an in depth look at the EUR/USD,British Pound GBP/USD and the Japanese Yen USD/JPY in this Market Quickview Forex Video. We will go over all the important levels to consider and provide Technical Analysis insights for the coming week, along with all the high impact News Events that can move the Forex Market this week.

MICHALEK

nataliru asked:

Learn who trades Forex and why

REISINGER

ForexStrategySecrets asked:

Free Forex Trading Tips: http://www.forexstrategysecrets.com/blog Forex Tip: do not set your stop loss by a set number of pips, or at a pivot point, or a Fibonacci line. Set your stops where the Forex market tells you to set them. This forex tip has helped me improve my trading tremendously. There is no such thing as a Forex autopilot mode.

LITTS

loren d asked:


Basically an understanding of what goes behind the decisions of selecting to go for a spot rate of exchange or a forward rate of exchange.

MULDROW

Roman Sadowski asked:


You have traded Forex exchange market for quite a while now. You have read hundreds of Forex guides and ebooks or Forex trading advice widely spread over internet. Those gave you basic knowledge about forex. Now you know the terminology, rules, currency movement trends and all factors influencing whole Forex market.

There is a lot to take at once.But let me tell you something here,Forex is something people learn all their lives and still there is something left.

You have probably wondered many times before which tactic to take.

Will I rely on technical analysis?

Should I look at the bigger picture and consider all economic conditions?

Will I trade news for quick profits or maybe invest long term.

I believe you went through many demo trading accounts to try them out.

If you picked up your strategy and you decided to go and trade technical chart analysis here is so much else left to consider. At this stage your knowledge should extend to whole terminology including:

support, resistance, chart names. You should know about moving averages, Bollinger band, Fibonacci or Elliot wave theory, Pivot points etc. Now all you have to do is apply all the above rules on your chart and here we go happy pips. Well it is not as easy as it seems to be!

There is one piece of advice that we would like to give you.

Not all the rules apply to all the currencies. That is right. If you have had enough experience and spent thousands of hours watching charts moving you have probably noticed that almost every single combination of currencies have their own flings and this makes them difficult to predict. Not all pairs would create head and shoulders, double top or bottom to signal the potential major movement. Some of them will but that may mean nothing.

Another combination would not necessarily bounce back from 55 or 200 hours moving average or follow pivot points. Other will not create hammers to indicate diversion. All above rules would apply to successful technical analysis trading.

We strongly advise you to do your homework and research. Before you select certain rules for certain pairs make sure that there is a pattern to follow. Adjust moving averages, Play with a few values and backtrack to see where there is a rule that you could use in the future forex trade.

There are many examples to learn from. If you study eurjpy and euraud pairs you will see how different they are. Euraud seems to have a strong trend on daily charts where eurjpy has not got one.

Take also eurusd and we will see that there was strong head and shoulder with the bottom formed on 22 Jan 2008 and instead moving significantly up it did not. Compare the daily chart of eurchf which on the other hand follows nicely its double top and bottom pattern.

We encourage all beginner traders to consider those factors before trading real money.

Select your indicators to your pairs in the way they are most suitable for each one of them.

Make sure it is backtracked and there is evidence for such a selection.

Remember: plan your trade and trade your plan.



SCANTLIN

Forex Training asked:


Once you become somewhat familiar with how the forex market works, and you understand to a point what is involved in trading on the Foreign Exchange Market, you would want to start to gauge market trends in order to profit from your business ventures on the open market.

The name of the game is statistics, and the first rule is that you must be aware there is no such thing as a sure thing on the forex market. While you can never be 100% sure at any given time of the next move that will be made on the market as a whole, being able to read statistics and interpret them will place you ahead of the pack in regards to “guessing” what will happen next.

Forex trading is a lot like gambling. If you can keep track of the cards that have already been played, you are more informed, statistically, regarding what is likely to be dealt next, meaning you can place a bet with greater insight than someone who has no clue what has already been played. With the forex market, if you have information as to what has already occurred over the past few days, months, or even years, you are again placed in a better position to more logically conclude what will happen next. You simply learn the pattern and follow it to the end, reaping the financial rewards.

Charts And Chartists

Wait, did you think you were going to have to research and map out the market’s past all by yourself? Of course not! There are people who get paid to do that sort of work. They monitor the market hourly, daily, weekly, monthly, and yearly so that they can provide big-time traders with the same knowledge mentioned before. The more a trading company knows about the market, the more money they can make.

The best part of this is that you have access to the same information as these VIP clients. Chartists, who are essentially market analysts that publish their findings in easy to read charts, produce what is referred to as a candlestick charts. These charts are basically a combination of a line graph and a bar graph that show the trend of various stocks, indexes, or other interests over a specified period of time. Therefore, you can easily determine if the currency is on an uptrend or if it is taking a downturn, when the last major change occurred, and how long it is predicted that the currency pair will continue on the current path.

If your broker does not supply you with these charts, then you should easily be able to draw them yourself with the modern day charting software or trading platform that you get from your broker. These software platforms can draw most charts for you by entering a couple of parameters and viewing the result.

It is recommended however that you learn at least the basics of charting and statistics before you start trading live.



INABINET

theroyaleblood asked:


Do they ever accept checks? How do they work? Would appreciate any answer!

NICOLE

mcarroll05 asked:


Will someone please recommend a couple of solid blogs that clearly and systematically detail events in the FOREX market place, rationale behind market fluctuations (i.e. Other than spook talk by Trichet about inflation and more along the lines of Yen/Euro carry-trade or why 5.5% unemployment clearly drives declining parity), and solid insight into what is going on.

I have looked over many blogs and haven’t found anything insightful.

HACKWORTH

Jim Pretin asked:


The Foreign Exchange market (Forex) is truly the largest exchange in the world. The amount of dollars traded on the Forex market on a daily basis is in the trillions. Most of this currency trading takes place between between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. However, individual traders are starting to get in the mix, using internet discount brokers such as Etrade to participate in the currency exchange market.

There is no central exchange or meeting place for the Forex. All trading is done over computer networks between traders in different parts of the world. Also, unlike the stock market, the foreign exchange market is open 24 hours per day, because it is a global market. A trader in Hong Kong may be exchanging currency with a trader in Australia while an American trader is sleeping.

There are several different markets within the Forex exchange system. First, there is the spot market. The spot market deals with trades that are based on the current values of currencies. One person trades a certain amount of currency with another trader in exchange for an equivalent amount of a different foreign currency. Spot trades take two days for settlement.

The other two types of foreign exchange markets are the forward and futures markets. In the forward market, the buyer and seller agree on an exchange rate and a transaction date is set for a specific time in the future, at which point the trade is executed regardless of what the rates are at that time. On the futures market, futures contracts are bought and sold based upon a standard contract size and maturity date. Futures trades take place on public commodities markets.

A currency quote is listed differently from a stock quote. Stocks are quoted in terms of price per share. Currency exchange prices are listed as either a direct quote or an indirect quote. A direct quote uses the domestic currency as the base and the foreign currency as the quote. An indirect quote works the exact opposite way.

So, if you were to view a quote in an American newspaper that said USD/JPY = 75, that would be a direct quote and would mean that $1 of U.S. currency is equal to 75 Japanese yen. If that same quote appeared in that same American newspaper and was listed as JPY/USD = 0.013, that would be an example of an indirect quote.

As with stock prices, currency exchange prices have a bid and ask spread. The current bid is the amount of foreign currency that someone is willing to spend in order to buy $1 U.S. base currency. The ask is the amount of foreign currency that someone is demanding in order to be willing to sell $1 U.S. base currency.

The Forex markets are generally considered to be less volatile than then stock market because within the course of a trading day, it is highly unlikely for the value of a single currency to move all that much. With equities, it is not uncommon for a trader to buy a stock, and then a negative press release causes the stock to lose considerable value within a day or even a couple of hours. Sometimes, however, the Forex can be volatile. If there is a significant economic or political development with a certain country, the currency of that country can lose value quickly.

There is a higher degree of liquidity on the currency exchange then there is on the stock exchange because the currency exchange is open 24 hours per day and because the very nature of currency exchange is to bet on when certain currencies will go up or down; so, it is easy to sell your position in a certain currency even when the value of that money is going down. A plummeting stock is more difficult to unload, but not impossible.

If you want to begin currency tranding, try to set aside some money and open an account with an online broker. Start slowly, then as you get the hang of it, work your way up to larger trades and higher volume. However, do not gamble your nest egg on currency trading because inexperienced traders can lose everything they have rather quickly in spite of the relative safety of the Forex market.



NEPHEW

Eweje egboje asked:


forex exchange market.

DREGER