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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Can Forex Trading Make You Money?
Forex trading involves buying and selling currencies on the internet. The buying and selling operations are done by the forex companies which are called ‘brokers’. When a certain currency is expected to rise in value with respect to another currency, the trader must buy that currency. Also when a currency is expected to fell in value with respect to another currency, the trader must sell that currency and, at the same time, buy the other currency.
When going to trade, the most critical and important factor is to predict where the price of the currency is going with respect to the other currency. Another important factor is money management and how much money is traded with respect to the full account balance. If these two factors are considered properly, good results could be obtained and forex trading will be successful.
Price prediction is like the whether forecast where a curve is given for two currency pair that gives the price change in the past. The forex trader must predict what the price will be going at the future. If this prediction is done carefully, the trading will be profitable.
How the Forex trader can predict currency price change? This can be done by two ways: Market analysis and technical analysis. Market analysis depends on analyzing the economical status of the countries that are related to the traded currency pairs. If the economy is strong for a country and week for another country, then the loan value is expected to grow for first country with respect to the loan value of the other country.
Technical analysis depends on drawing some indicators on the curve in study. Each indicator has its own interpretation and must be studied well by the trader before using it. If the indicator reaches certain value, for example, the forex trader can determine to buy or sell according to the value. Of coerce multiple indicators can be used as a confirmation. Beside indicators, there can be well known patterns in the curve itself that can help predict where the price is going. The trader must combine both the two methods to make a good prediction. He must make the fundamental and techniqual analysis together.
The important question is how to make a good prediction if the above two methods of analysis are studied and learned how they work? Recall that the essence of forex trading is to make good prediction for the currency price change. If you managed to achieve that, you will be a successful trader. The answer is to apply every learned techniqual indicator alone to see how it works and if it gives good result for price change. This can of coerce take time but if practiced regularly, new skills will be arisen in trading.
After practicing each techniqual indicator alone, the reader can choose the best two or three indicator that he learns. He can use them as his own way to predict currency changes. This will form a strategy for him. The power of the forex trading strategy fit in the analysis methods used inside it. These technical methods must be tested for a long time to ensure that it give good results. If it is found to be so, then you can really make money with forex trading.
Another important factor other than currency price prediction is money management. Money in the forex trading account must be treated carefully. Not all money must be assign for trading with it. There must be a remaining portion in the account to ensure safety. Also the amount of losses that the trader determine must be about 3% at most from the total value of money in the account. Money management is an important topic and must be planned properly.
Autochartist – Daily Forex Update: GBP/USD
GBPUSD is continuing to rise within the Rising Wedge price formation on the daily chart. This price pattern demonstrates significant Uniformity and Clarity – both rated at 6 bars by the Autochartist. The pair is trading around the round price level 1.6000 that should be cleared persuasively before the uptrend can continue.
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Price of oil hits six-month high
The price of oil hits a six-month high after strong manufacturing data in the US and China boosts confidence in the global recovery.
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U.N. Calls Emergency Meeting Over Rising World Food Prices
Rome, Italy (AHN) – United Nations officials warned of a major new world food crisis Friday at an emergency meeting over rising international food prices
The U.N.’s Food and Agriculture Organization (FAO) called the meeting in Rome to discuss the looming crisis. FAO officials blame recent environmental disasters as well as rampant speculative trading on commodity futures markets by investors.
Although food prices have not risen as much as they did during the 2008 food crisis, FAO officials were concerned.
“The FAO has recognized a variety of drivers behind food price spikes, such as drought, energy prices and trade restrictions; however, the impact of crude oil prices on food inflation cuts across all national boundaries and has a disproportionate impact on food prices,” said Bliss Baker, a spokesperson for Global Renewable Fuels Alliance.
“As long as we are dependent on crude oil for our primary source of energy, we will continue to see food prices climb as crude oil prices climb,” Baker added.
However, other forces are at work to increase food prices, according to the U.N.’s special rapporteur on food, Olivier De Schutter. In a paper released earlier this week, De Schutter said that as other investments turned sour and lost investor interest–including overvalued asset backed securitization investments–investors looking for profits flocked to invest in food commodity futures because everyone must eat.
“Beginning at the end of 2001, food commodities derivatives markets, and commodities indexes in particular began to see an influx of non-traditional investors, such as pension funds, hedge funds, sovereign wealth funds, and large banks that packaged and dealt the commodity index instruments,” De Schutter wrote. “The reason for this was simply because other markets dried up one by one: the dotcoms vanished at the end of 2001, the stock market soon after, and the U.S. housing market in August 2007.”
“As each bubble burst, these large institutional investors moved into other markets, each traditionally considered more stable than the last. Strong similarities can be seen between the price behavior of food commodities and other refuge values, such as gold. As the European Commission notes, the prices of both had been largely stable, began to rise slowly in 2005, and accelerated sharply in August 2007, when the subprime crisis hit. Similar behavior obtained in oil markets, which hit the $100 per barrel mark in February 2008 and peaked in June 2008, only to fall back subsequently,” De Schutter said.
De Schutter calls for regulation of the food commodity markets in a report titled “Food Commodities Speculation and Food Price Crises, Regulation to reduce the risks of price volatility.” The full report is available at: srfood.org/images/stories/pdf/otherdocuments/20102309_briefing_note_02_en.pdf
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Forex – AUD/USD Technical Analysis (Australian Dollar / US Dollar)
The parity continues its bullish movement above its bullish slant starting from August 25th. The price is currently testing its last highest. Indicators are globaly bullish. We maintain to trade only long positions as far as 0.94 is support or as far as the bullish slant is support. The breakout of the last highest will give a new buy signal.
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Forex Dealers In India – Forex Broker Houses Are Key Players in Forex Trading
Though Stock Market and Share trading is an age old practice, Forex trading has gained importance since last couple of decades. Forex trading involves trading of foreign currencies in the financial market. Foreign exchange market primarily helps international businesses to transact the currencies or in other words, convert the currencies. Since Forex involves the currencies for the countries worldwide, it is a market which operates 24X7. Because of the given nature of the trading involved, it is imperative to have managed currency trading. Possibly one of the reasons why central banks, Hedge funds, investment agencies, etc are active participants in the Foreign Currency trading exchange.
Forex Trading is unique in itself because of the huge volume of liquidity involved. A small change in the currency value would give a higher return only if the investment is high. So players in the Forex market trade using high volume of money. However, the Forex is somewhat different and complex than that of stock trading. There are lots of broker houses involved in Forex trading. The advantage is that these Forex brokers act as advisors or dealers on behalf of the retail customers and to an extent contribute to have a managed currency trading. Forex Dealers In India
The brokers try to get a good deal for the customer by trading at the most profitable price and in turn charge a commission for the trade they do on the customer’s behalf. These houses also provide Forex trading tips based the technical aspects of the Forex trading by considering the apparent patterns and studying price chart movements. Since huge liquidity is involved, the broker houses that have the authorization to trade in the currency market woo the customers and go head on in the competition. And then each house wants to be the Best Forex Broker and entice the customers. The Broker houses attract the customers to open accounts with their own houses which do professional Forex account management. Year after year, some broker house is chosen as the Best Forex Broker by experts in the Currency trading market.
The broker houses then sell the Forex Tips for a cost to the small broker houses and the currency traders. If you have equity shares with a broker house, you might as well get a margin for Forex trading, depending on your equity portfolio.
Though broker houses provide Forex trading tips for a cost, sometimes, retail customers may not be so well versed with the intricacies and the price movement of the currencies, it is advised that broker houses be used. A small change in price is what is seen in the currency market and these are very much dependent on the Economic changes, international events, central bank decisions, etc. Forex Dealers In India
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Day Forex Trading Training – Forex Trading Education
Learning to trade the forex market successfully is something that many aspiring traders fail to achieve. Many beginning forex traders erroneously drop thousands of dollars on forex educational products with the belief that the more expensive the product the more effective it will be. The issue with forex education is that there simply is no right or wrong way to trade the market. What works for one person may not work for another, it is really a matter of personal preference and how interested you are in trading. Some traders like to be very involved in the markets and enter multiple trades per day, while others do better by just trading a few times a month or even less. So in order to get a proper forex education you must first determine what level of involvement you wish to have with the markets.
Many traders have a desire to be shorter-term traders when they first begin trading. Day trading seems very glamorous and profitable, but it is a well known fact that longer-term swing traders make more money on average than day traders. Should you decide to become a swing trader that enters only a handful of high probability trades each month, there are some great free forex training resources available to learn from. Price action trading is one way to trade with a mid to long-term outlook that offers some very high probability trading setups. Many traders making full-time livings out of the forex market received a quality forex education in price action strategies because trading off price action can be very low stress but accurate at the same time. Day Forex Trading Training
In addition to the plethora of free forex training available on the internet you will also find more targeted resources such as a forex education course. Many such educational courses provide a comprehensive instructional system that can act as a guide to the forex market and give you a foundation to build a profitable trading plan around. Price action trading is a very good fit for the format of a forex education course because it is easy to explain and visualize. Other methods also can effectively be taught via a forex training course, however make sure the method is logical and not heavy on lagging indicators before spending time and or money on learning it.
Whatever direction you decide to take as a trader, make sure that you don’t spend unnecessary money or time on trading methods that are overly complicated. There are many scammers out there trying to sell forex trading software that looks and sounds effective, but really is nothing more than a marketing ploy. Free forex training can be just as effective as paying for it; it all depends on the authenticity of the creator of the forex training and what method they are teaching. Make sure you get your forex education from a trusted source, preferably someone who actually trades for a living and has a natural knack for teaching. Do the proper research before investing in any forex training system and you should be able to find enough objective information to make the right decision. Day Forex Trading Training
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Japan Forex Market Hours – Japanese Candlestick Patterns
Japanese candlestick charts are the most visually rewarding charts to use when trading the forex market. The clear depiction of price action that they provide is second to none. Japanese candles provide a different aspect to charting in that they allow you to see the force with which either the bulls or bears won for a given period of time. There are numerous forex candle patterns that you can use when trading price action in the forex market. Candlestick patterns are preferable to standard bar charts because they allow you to apply all Western technical analysis techniques used with bar charts and also provide a variety of their own forex candle patterns, not to mention they are just much easier to look at.
Candlestick charts are by far the most popular form of chart used today in the forex market. Using forex candle patterns to navigate the market is a great way to make sure you see all relevant reversal patterns as well as trend continuation patterns. The forex market is open 24 hours a day 6 days a week; this means there are many more price action setups to take advantage of than what other financial markets provide. Japanese candles work great in the forex market largely because there is almost always a trending market somewhere in the forex market. By using candlestick patterns in forex you can easily spot strongly trending markets and find great high probability setups into these trends. Forex candle patterns also allow you to spot market reversals at the earliest possible time. Japan Forex Market Hours
Forex candle patterns visually display the supply and demand situation for whatever currency pair you are looking at on any given time frame. This colorful visual representation of supply and demand makes price action analysis much easier and more relevant. By being able to quickly and clearly see the force with which the bears overcame the bulls or the force with which the bulls overcame the bears you will become a better price action analyst and the discretionary or “art” part of forex price action analysis will become much more accurate for you. This accuracy will spill over to your psychological mindset and make you a more calm and confident forex trader.
Japanese candlestick patterns are just as relevant to the forex market today as they were to the rice traders in Japan who invented candlestick charts back in the 18th century. Traders have been using these charts for hundreds of years to help predict future price movement, just as the rice traders in the 18th century obviously did not have any lagging indicators, you do not need them either. Price action trading via a stripped down and raw price chart combined with forex candle patterns is all you need to become a successful forex trader. Candlestick patterns in forex combined with price action analysis is all you need to develop a simple yet highly effective and profitable forex trading plan that will allow you to maintain clarity and objectivity while trading forex. Japan Forex Market Hours
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China Foreign Exchange Trade System & National Interbank Fund – Forex Options Market Overview
China Foreign Exchange Trade System & National Interbank Fund
The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an “interbank” market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today’s forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms. China Foreign Exchange Trade System & National Interbank Fund
Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.
Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.
Forex Option Defined – A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option “premium.”
The Forex Option Buyer – The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as “assignment” or being “assigned” a spot position. China Foreign Exchange Trade System & National Interbank Fund
The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.
On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option’s strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option’s strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.
Foreign currency options expires worthless if, at the time the foreign currency option expires, the strike price is “out-of-the-money.” In simplest terms, a foreign currency option is “out-of-the-money” if the underlying foreign currency spot price is lower than a foreign currency call option’s strike price, or the underlying foreign currency spot price is higher than a put option’s strike price. Once a foreign currency option has expired worthless, the foreign currency option contract itself expires and neither the buyer nor the seller have any further obligation to the other party.
The Forex Option Seller – The foreign currency option seller may also be called the “writer” or “grantor” of a foreign currency option contract. The seller of a foreign currency option is contractually obligated to take the opposite underlying foreign currency spot position if the buyer exercises his right. In return for the premium paid by the buyer, the seller assumes the risk of taking a possible adverse position at a later point in time in the foreign currency spot market. China Foreign Exchange Trade System & National Interbank Fund
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