Forex Trading – Using Economic Reports & News for Profit

The internet has seen a massive growth in both the quantity of news and speed of delivery and many novice traders think this will help them win, however in most cases it simply helps them lose and lose quickly.

If you are looking at economic reports and news you need to consider one important fact first:

50 Years ago, 90% of FX traders lost and today the figure still remains the same – despite the advances in news forecasting and speed of delivery.

Most novices who watch news reports or trade off economic reports and fail miserably in their FOREX trading.

Why?

Firstly, they don’t realize that news is discounted by the market immediately and this is more true than ever today with any news available in any corner of the globe in a split second.

Secondly, if they see a so called expert talking about why a currency should fall it may sound convincing but that doesn’t mean the market will go the way they say.

Sure, it’s a convincing argument but these guys are giving opinions and are NOT traders.

An economist can always tell you why something has happened in hindsight, but is not so clever about telling you why something will happen.

Investors Determine Price Direction!

The fact is the news is not important in itself – it’s how investors perceive the news that’s important.

Humans make subjective judgements and all their opinions combined move the market price.

A Better Way To Trade

For most novice traders a better way of trading is to simply follow charts and use technical analysis.

As the marketing is a discounting mechanism you can simply assume all fundamentals will show up in the price instantly.

You can then simply follow the reality, rather than trying to second guess where currencies will go.

You will trade on the reality of price rather than predicting it.

Keeping Emotions Out of Trading

When you hear a convincing argument it’s easy to let your emotions get involved and trade with the losing majority.

Technical analysis allows you to set back from the market and see things without emotions and get a clearer perspective.

The fact that the news is bullish or bearish for a currency makes no difference on where it will go.

If you take major currency changes the fact is:

They tend to fall heavily when the fundamentals are most bullish and rally when they are at their most bearish.

Will Rodgers famously said:

"I only believe what I read in the papers"

He was joking of course but many FOREX traders do exactly this – believe what they read and hear and then lose.

Trying to trade off news stories for most traders is a complete waste of time and energy and sees them lose – don’t make the same mistake.

3 Reasons To Purchase Forex Software System Trading Today

Whether you are a beginner looking for some guidance or are simply looking to pick up some new tricks, forex software system trading can be extremely beneficial. Although many systems are created with the beginner in mind, everyone can benefit from the right software. Here are three reasons to purchase forex trading software

today.

1. Time saver
When it comes to running your own business or trading forex, time is of the essence. You will quickly learn that it seems as if there is never enough time in the day to complete everything. Instead of wasting countless hours analyzing the market and predicting where it will go next, software can do this for you. Fully automated software will analyze the market and can even place the buy and sell orders to your forex broker.

2. Training guide
As mentioned, you can never know too much when it comes to forex trading. Whether you are a novice or an expert, you can benefit from the tips and information forex software system trading can offer. Although some software can be quite pricey, the information you will gain from the software will generate you far more profit than the initial price.

3. Flexible trading
The final reason you will want to consider purchasing forex software system trading is because of the flexibility it will provide you with. Most software will work with all types of forex brokers and currencies. This allows you to trade 24/7 around the world if you choose to. Regardless of whether you have an internet connection or not, you can always plug-in the software on their servers and start trading; hence, the ultimate flexibility.

Best Forex Trading Software – Automatically Generate Your Trading Decisions When You Relax. Learn more about exactly what this product is about here: instantforexprofit.com

Valuable Tips To Make Note Of From Online Forex Trade Experts

Forex trading can be a rather easy way to make money on the internet. While some view it as a highly complex process, it can be quite simple if you have the right tools and understand the basics. Here are some valuable tips to keep in mind with online Forex trade.

First and foremost, never invest too much right out of the gate. It is best to get your feet wet and take baby steps. Although the initial return may not be huge, your losses will not be devastating either. Learn the process for a little bit with small amounts before you step up the game.

Another way to start small is to practice on the practice trading account. This allows you to learn how to properly trade without throwing around your real money. Even when trading with real money it can still be extremely beneficial to head to the practice trading account. As with anything in life, practice makes perfect when it comes to Forex trading.

The next online Forex trade tip is to stay between x5 and x25 range max. You should never leverage 100 or 200 times until you have become a pro. This is an easy way to fall into trouble and lose a lot of money fairly quickly. While everyone wants to make a large profit quickly, you have to think of the consequences of a big loss.

The final tip with online Forex trade is to keep your emotions out of the decisions. The second you allow your emotions to take over, you will end up losing a great deal of money. If your pair is losing, exit by booking losses. And if it is going up, exit at a price you had originally set as oppose to getting greedy.

Best Forex Trading Software – Automatically Generate Your Trading Decisions When You Relax. Learn more about exactly what this product is about here: instantforexprofit.com

Forex Tips – 5 Simple Ones to Increase your Profits

The forex tips below are all easy to do and all will help you achieve one aim increasing your overall profitability. So here are 5 forex tips for greater profits.

1. Use the Weekly Chart

I am amazed that most traders never bother looking at weekly charts but if you want to separate out “the wood from the trees” the weekly chart gives you a much clearer perspective.

The big trends are clearly visible on the weekly chart and if you are long term trend follower, start with this chart first and you will have a clearer view of support and resistance levels and entry points.

2. Cut Your Trading Frequency

This Forex tip addresses a major problem that most novice traders have – they trade too much.

They think they have to be in the market all the time and chase profits but the fact is, if you cut your trading frequency, you stand a better chance of success. Keep in mind; you only get paid for being right in forex trading – NOT for your effort and how often you trade!

By cutting your trading back, you can concentrate only on the high reward, high odds trades which give the best potential profits.I know traders who only trade a few times a year yet – they make between 120 – 430%! Annually.

Their simply trading the cream of the trades and ignoring the low odds, high risk ones and there are plenty of those.

If you cut your trading, you will probably see your profits soar.

3. Risk More Per Trade

This is directly related to the above point.

If you have a high odds trade take this tip and risk more.

You will read a lot of nonsense on the net about risking 2% per trade and no more.

Well, that’s fine if you are trading 100k but if you’re a small potato trader, trading 10k or less, that’s a maximum of $200!

If you have a small account you need to load up and risk 10 -20% on the high odds trades. Keep in mind if you don’t risk much you won’t make much!

To make meaningful gains you have to take risks – if you don’t like taking risks don’t trade forex.

4. Don’t Diversify

If you are trading a small account don’t diversify!

You need to load up as we have said above and concentrate on one trade only.

Diversification is simply another word for diluting profit potential and is something a small trader should not engage in.

5. Use an Account Profit Target

What s a realistic target to make per annum in forex trading?

You may have your own ideas – but if you made 100% that puts you up there with the best fund managers in the world.

You will often see people look at risk per trade but looking at your account overall and using a profit target is highly effective.

The 4 Key Players in the Forex Market

When trades are conducted in the equity market, they are normally conducted with institutional investors (e.g. mutual funds) or other individual investors. The Forex market operates differently in that there are additional players who trade for reasons that are different from that of the equity market. So for the purposes of educating the newcomers to the Forex market, the following is about the four key players in this arena.

Governments and Central Banks

Without a doubt, it could be strongly argued that the governments and central banks of the world’s countries are the big players in the Forex market. Normally, the central bank is an extension of that country’s government, and will usually formulate and regulate policy in conjunction of the government. There are governments that disagree with this, feeling that a centralized bank should be more of an independent entity.

The reasoning is that it could be more effective in the areas of curbing inflation rates and keeping interest rates down in the hopes of stimulating ongoing economic growth. But the government officials would still have the right to regular consulting privileges for the purpose of discussing monetary policy despite the banks independent platform.

Banks and Other Financial Institutions

Despite the depth of influence that governments and central banks exhibit, regular banks and other types of financial institutions are still a key factor in the Forex market in that they are available for those individuals who need to swap currencies in a small-scale type of transaction. So, they will deal with the neighborhood or local banks. However, these smaller scale transactions can’t compare to the volume of the transactions that are conducted within the Forex market.

Oftentimes referred to as the interbank market, this is the area wherein larger banks conduct transactions with other similar banks as well as determine the exchange rates that traders see on the trading platforms. Electronic brokering methods that are based on credit transactions are the means with which these trades are conducted. Only those banks that have an established credit based relationship with one another can be involved in this type of activity.

Hedgers

Businesses dealing in international transactions are usually the banks biggest clients. Whether a client is purchasing from or selling to an international client, the transaction will always be subject to the volatility factors that influence the exchange rate. And if there is one thing that management or shareholders despise, it is the uncertainty factor. Normally, these individuals will offset this uncertainty by entering the spot market and make an immediate transaction to purchase the currency that they need.

Speculators

Speculators are another market participant involved in the Forex market. Speculators usually will attempt to make monetary gains by taking advantage of fluctuations in the exchange rates rather than hedging against the rates or exchanging currencies to fund their transactions. Hedge funds are considered to be some of the largest speculators in the Forex market. They are also considered the most controversial. A good analogy that was once used to describe hedge funds was “mutual funds on steroids.”

Top 10 Currencies Traded on the Forex Market

When people hear of currencies changing, they are often confused. When they hear of the dollar gaining or losing on other types of currency, that do not realize that the currency is actually being bought, sold, and traded. The forex market, also known as the foreign exchange market, is a way for companies, banks, and individuals to trade currencies to try to gain on their initial investments. The forex market is different and unique; the three markets (US, Europe, Asia) have at least one running at all times during the weekdays; this makes this a 24 hour a week-day market, working constantly on the week days to make sure currencies can be traded. All currencies have the opportunity to be traded, but there are obviously major players that are traded the most on the forex market. There are 10 players on the market that find themselves a part of a majority of the trades that happen on the forex market.

The Norwegian Krone, the Hong Kong Dollar, and the Swedish Krona

The Norwegian Krone is the number 10 most traded currency in the forex market, as it is a part of nearly 1.5 percent of the daily transactions that happen. The Hong Kong dollar is the number 9 most traded currency as far as the forex market is concerned. Hong Kongs Dollar is a part of nearly 2 percent of the daily transactions. The Swedish Krona is a part of over 2 percent of the daily trades on the forex market.

The Canadian Dollar, the Australian Dollar, and the Swiss Franc

The Canadian Dollar finds itself at number 7 on the forex most traded list with over 4percent of the daily transaction on the forex market. The Australian Dollar finds itself with over 5 percent of the daily forex transactions and at number 6 on the list, and the Swiss Franc finds itself at number 5 with over 6 percent of the daily transactions.

The British Pound and the Japanese Yen

The British Pound, often compared to the Us dollar, finds itself at number four on the forex most traded list by being apart of nearly 17 percent of the daily transactions. The Japanese Yen comes in at number 3. The Yen is featured in slightly over 20 percent of the daily transactions on the forex market.

The Euro, and the United States Dollar

The Euro is an interesting currency, as it is the currency for multiple countries. This includes countries like Germany. Germany has the bank that does the most trading in the forex market. The Euro is the number two most traded currency on the forex market, as it is a part of nearly 37 percent of the daily transactions. The United States Dollar is easily the most powerful currency on the market, as it is a part of nearly 90 percent of the transactions that occur daily. As the number one most traded currency, it has 5 of the top 10 most active traders on the forex market.