Oil price continues to rise as the cold weather, demand in consumer goods manufacturing and a weak US dollar fuel demand
Oil has continued to climb higher in recent weeks, breaking the previous resistance level of $88.54 in which traders sold off positions and went short. From a purely technical perspective this was due mostly to a Fibonacci projection at play where the re-tracement found support at the 38.2% level. Sellers looking to come into the markets looked for the 138.2 projection level to enter the markets.
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Geithner heads to China with forex demand
US Treasury Secretary Timothy Geithner was to head to China on Sunday bearing a demand for emerging economies to let their currencies appreciate, following fractious G20 talks in South Korea.
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Asian Currencies Have Seventh Weekly Gain as Growth Lures Funds
Oct. 16 (Bloomberg) — Asian currencies completed a seventh weekly advance, led by the Singapore dollar, as relatively high yields and the world’s fastest economic growth spurred demand for asse…
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A weak demand for the dollar, gives other currencies an opportunity to rise
The European common currency rose against the dollar following yesterday’s correctional movement that drove the euro to drop from a five-month high against the dollar. Today, the greenback fell again versus majors counterparts, on speculation that the Feds may release this week a new round of stimul.
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India rupee retreats from 3-month peak on import demand
The Indian rupee pulled off from three month highs on Monday by dollar demand from oil companies and importers but gains in local shares and broad losses in the dollar boosted sentiment.
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Is There Any Money Left In Currency Trading?
Currency trading may be one of the most liquid forms of trading, but it is also a volatile market that requires strategy if you wish to make money. The truth is that more people make small profits in this market, while a few are highly successful. The constant change makes this form of trading exciting and with a high profit potential; however, making a fast buck in this market may not be as easy as it used to be.
What is Currency Trading?
In its basic form, currency trading, also known as “forex trading,” is simply that–trading money. It involves trading one currency for another, such as U.S. dollars for the Euro. The exchange rate is known as the foreign-exchange rate, forex rate, or FX rate and is one of the largest markets in the world, trading trillions of U.S. dollars each day. Currency trading gained enormous popularity in the 1990s, and continues today. One reason this type of trading is so popular is that it can be done from a computer, twenty-four hours a day. There are fewer currencies to trade with, which makes learning the practice much easier (as opposed to learning about the many stock options available). The most commonly traded currencies are the U.S. dollar, the Japanese yen, and the British pound.
Currencies are traded in pairs. The trader buys the one that he or she believes will appreciate in value over the other. Currency fluctuates as there is demand for it. Interest rates tend to be an indication of a currency’s demand. The higher a country’s interest rate, the higher demand. However, countries will sometimes try to create demand for a currency by changing interest rates. The well-informed trader needs to conduct research and make educated guesses on a currency’s future.
Currency Trading is Big Business
The currency trading business is big. An estimated two trillion in U.S. dollars is exchanged each day. The forex market is the largest in the world. Because it can be done from home, many people are interested in getting involved, and the payoff can be big. It is also possible to get involved with little investment. Traders simply determine how much they are able and willing to risk, and they can enter the market.
As with other forms of trading, watching the market and making calculated decisions is more likely to result in a profit than making decisions based on emotions, hunches, or preferences. Many courses are available on currency trading. Learning more about the process can help traders make better choices. Choosing a quality course is also a matter that requires a bit of research. However, currency markets fluctuate on both short and long-term timelines, and learning how to best track these changes and the events that affect the markets can help traders, especially those new to the process. The allure of making quick cash is still out there, however, as it is possible to close a contract after a few minutes, hours, days, or weeks.
Is it Nearing its Peak?
The currency trading frenzy, which expanded rapidly during the 1990s, may be reaching a peak. Why? While in some ways currency trading is easy, many people who enter the market do not make money. The idea that you can make quick cash is not as easy as it sounds. Additionally, while traditional stocks are based on a company’s physical assets and product, currency trading is not absolute. Further, governments control, or attempt to control currencies to reach political objectives. Unforeseen events, such as natural disasters, can also alter a currency’s value, making it more difficult to make an educated guess on a currency’s future. Finally, the global marketplace is changing currencies around the world (the Euro is one such example).
This does not mean that a person cannot make money in the currency market. However, as the global marketplace continues to expand and global politics affect currencies, it is much more difficult to determine a currency’s value. Making money in the Foreign Exchange market is possible, but it is not easy. Even economists have a difficult time estimating the future of currencies and purchasing power, so a trader must conduct thorough research, determine trends, and try to make the best guess possible.
Author: Mike Singh
Article Source: EzineArticles.com
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Forex Charts – How and Why They Work
Many forex traders think that you can never win with forex charts, because you need to know the supply and demand fundamentals. On the other hand, there are those forex chartists who believe the charts reflect human nature which is constant and prices can be predicted. Who is right?
The answer is forex charts work – but we must get rid of one misconception about them before we start and that’s there are a predictive tool – They are not!
Forex prices do not move to a scientific theory, because if they did, we would all know the price in advance and there would be no market!
Common sense really – but don’t think you can’t make money with forex charts and technical analysis you can, just understand this equation:
Supply and demand (fundamentals) + Investor psychology = Price
The above equation brings me on to my next point and it’s obvious from the above:
The fundamentals are un-important its how they are perceived that determines the course of events.
All forex technical analysis does is:
Make the assumption that the fundamentals are instantly discounted in the price and it’s investors who will decide which way prices will go.
It is the forex traders (all of them combined) who make the price and they all see the fundamentals and supply and demand facts – but they all draw different conclusions from what they see. This is why investor psychology is vital to where prices may go.
Humans determine the price of anything in a free market and its their perception of facts that is so important.
Investor Psychology
Forex charts allow you to see the fundamental picture and the how investors react to it, all in one method and that’s a huge advantage.
So forex technical analysis takes into account the supply and demand facts and how investors perceive them – it’s a short cut form of fundamental analysis and it lets you see graphically on a forex chart how investors have reacted.
Now we said that forex chart were not scientific – but you can trade the odds with them.
This is because human psychology is reflected in the charts and human nature never changes – so you will have patterns repeat and repeat overtime as does human nature, as it never changes.
Trade the Odds
With forex charts your aim is to look for these high odds chart patterns and trade them for profit.
You wont win every trade but if you win more than you lose and you run your profits and cut your losses, you can enjoy currency trading success.
Charting is an art not a science but an art.
If you get the right forex education and do your homework, you will have found a great way to achieve long term forex trading success.
When you have a forex trading strategy based upon forex charts, you are the equivalent of a captain of a ship at sea.
Your charts can help you earn a living in a hostile (but lucrative) environment, if you learn to use your charts correctly, or if you don’t, you will hit the rocks and drown. The choice is yours.
A Simple Powerful Route to Forex Profits
Forex charts are if learned correctly, are a simple time efficient way, of earning huge profits from the effort you put in – so try and base your forex trading system on them and you could soon be earning big consistent FX profits.
Author: Kelly Price
Article Source: EzineArticles.com
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