Forex Questions

If you want to get started in currency trading, currency swing trading is ideal. Here is a simple, easy to understand swing trading system to help you trade currencies for profit.

Swing trading is based on sound logic, unlike forex scalping or day trading which is the route a huge amount of traders go and lose.

Forex day trading and scalping doesn’t work, because volatility in short term time frames is random, so you can never get the odds on your side.

Currency swing trading though involves using valid data of around 2 – 7 days which is valid and is based on the following logic.

Markets move to the following equation.

Fundamentals + Trader Perception of = Price

It’s not the facts that are important; it’s how traders perceive them that is.

Traders will always push prices to far away from the fundamentals, when greed and fear take hold.

Prices then become overbought and oversold in the short term and by executing trading signals against these overbought and oversold levels, the trader can make a profit, as prices return to more realistic levels which are in line with the fundamentals.

These price spikes are easy to see on a forex chart.

The trader can use the following method to take advantage of opportunities.

1. Look for a price spike

You are looking for price spikes, that make the market overbought or oversold in the short term and look for a level you think will hold.

2. Use Momentum Oscillators

These will show you when short term prices are overbought or oversold.

We have discussed them fully in our other articles. Some excellent ones to use are – the stochastic, RSI, ADX AND MACD.

These are visual indicators and you don’t need to know the calculation, just look at the visual set up.

When currencies become over bought or oversold, you look for a price change in the opposite direction, supported by momentum changing in the direction you wish to trade.

3. Stop and Target

When you get the chance to execute your trading signal, put your stop behind the area of support or resistance you are trading into.

You then need to look to take your profit early if the price moves your way and do it, just before it reaches an important level in the other direction.

You should always take your profit early, before other traders do, as this keeps the odds in your favour.

The above is simple to do and can make big profits.

Currency swing trading is ideal for novices, as it’s easy to understand, you get plenty of action and of course, it can be very profitable.

If you want to make big forex profits a currency swing trading system can do it for you. Make swing trading part of your forex trading strategy and it can give you big long term consistent profits.

Try swing trading in currencies and you maybe glad you did.

By: Kelly Price

About the Author:

samatefm asked:


and the past few months a had learned alot about technical analysis cause there are tons of resources on the web about that topic,but ai also need to learn about fundmental analysis but i cant fibd a single site that concentrates on the fundmental analysis of the forex market ,i mean like the political facts and and the relation between the prices in the forex market and othe financial markets.SO PLZ IF ANY BODY KNOW A GOOD FREE SITE THAT CONCENTRATE IN TEACHING FOREX FUNDMENTAL ANALYSIS PLZ TELL ABOUT IT

Insite asked:


I am lookin for a website to help me back my own analysis of the foriegn currency markets?

Forex currencies are always traded in pairs. For example, EUR/USD, which means Euro over US dollars, would be a typical pair. In this case, the Euro, being the first currency can be called the base currency. The second currency, by default USD, is called the counter or quote currency. As mentioned, the first currency is the base, therefore in a pair you can refer the amount of that currency as being the amount required to purchase one unit of the second currency. So, if you want to buy the currency pair, you have to buy the EURO and sell the USD simultaneously. On the other hand, if you are looking to sell the currency pair, you have to sell the EURO and buy the USD. As a part of forex trading strategies the most important thing is to understand the currency pairs, or more precisely in a Forex transaction, what currency you will be selling or buying. Having good knowledge of major currencies of the world is important while learning forex trading.

Major currencies US Dollar – The United States dollar is the world’s main currency – a universal measure to evaluate any other currency traded on Forex. All currencies are generally quoted in US dollar terms. Under conditions of international economic and political unrest, the US dollar is the main secure currency, which was proven particularly well throughout the past Southeast Asian crisis. As it was indicated, the US dollar became the leading currency toward the end of the World War II, as the other currencies were almost pegged against it.

Euro – The Euro was designed to become the premier currency in forex trading by simply being quoted in American terms. Like the US dollar, the Euro has a strong international presence stemming from members of the European Monetary Union. The currency stays plagued by inadequate growth, high unemployment, and government resistance to structural changes. The pair was also weighed in 1999 and 2000 by outflows from foreign investors, particularly Japanese, who were forced to liquidate their losing investments in euro-denominated assets.

Japanese Yen – The Japanese Yen is the third most traded currency in the world; it has a much smaller international presence than the US dollar or the Euro. The Yen is very liquid around the world.

British Pound – Until the end of the Second World War, the Pound was the currency of reference. The currency is heavily traded against the Euro and the US dollar, but has a spotty presence against the other currencies.

Swiss Franc – The Swiss Franc is the currency of a major European country that belongs neither to the European Monetary Union nor the G-7 countries. Although the Swiss economy is relatively small, the Swiss Franc is one of the four major currencies, closely resembling the strength and quality of the Swiss economy and finance. Typically, it is believed that the Swiss Franc is a stable currency.

Canadian Dollar – Canada decided to use the dollar instead of a Pound Sterling system because of the ubiquity of Spanish dollars in North America in the 18th century and early 19th century and because of the standardization of the American dollar. The Province of Canada declared that all accounts would be kept in dollars as of January 1, 1858, and ordered the issue of the first official Canadian dollars in the same year.

Australian Dollar – The Australian Dollar was introduced in February 14, 1966, not only replacing the Australian Pound but also introducing a decimal system. Following the introduction of the Australian Dollar in 1966, the value of the national currency continued to be managed in accord with the Bretton Woods gold standard as it had been since 1954. Essentially the value of the Australian Dollar was dealt with reference to gold, although in practice the US dollar was used.

By: Andrew Daigle

About the Author:

In this article, I want to explain how you can make money automatically in the foreign exchange market. The earning potential in this market is extremely high and millions of people contribute to a daily turnover of over $3 trillion. This forex trading tutorial will tell you how to place and close trades automatically.

The way to place trades that will have the greatest chance of coming out in profit, without you doing anything, is by using forex trading software. Forex trading software will work as an expert advisor application on your forex trading platform.

Now, if you already have a trading platform, that is good and you can install the software to work with it. If you don’t have one, you can get a free one, such as MetaTrader 4 and set up the software in a matter or minutes.

Next, you will want to enable the software to start working. Let it analyze the market conditions and execute trades. These software programs are extremely smart and can make very reliable decisions, which makes you the most money.

Now, before you use this forex trading tutorial with real money, I recommend that you use it with a demo account to make sure it makes good trades. Keep in mind, however, that no software is perfect. There will be trades that lose money, but the majority of them will make good profits that outweigh the bad trades that come every once in a while.

I hope that this short forex trading tutorial has helped out better understand how a forex trading software program can help you and make your trading much easier. As someone who has used forex software, I recommend it highly.

By: Cory Sanders

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smartestmanalive asked:


I see that Zulu Trader has an app for the Iphone and i have a mini fx account with FXCM. I was just curious whether or not this is compatible with the mini accounts.

Beast from the East asked:


Hi I am an all time loser in forex. I have been losing money since a very long time 2003 but I still trade with the hope that one day I will win. Has anyone ever won in Forex? If yes, then please share your trading strategy.

Thomas G asked:


There is no need to have floating currencies in the world because global trade is increasing and currency values are reflected in the trade of product, and not trade of currencies, anymore. It also eliminates speculation, which is responsible for ruining people’s lives (like the Asian Financial crisis in 1997/98)

cyruswendydevo asked:


… trade on the Foex? I am a beginner, and I specifically want to learn about the basics, how to spot trends, tradeing techniques, etc..
Even if you want to recomend a book- that would be helpful. (FYI: I cannot afford a pricey course, so any recomendations to that fact will not be considered).

THANKS!

ehowfinance asked:

Currency trading allows investors to purchase currency from one country in the hopes that it will rise or fall against another country’s currency. Use practice software before trying to invest in foreign currency trading with advice from an insurance andfinancial adviser in this free video on currency trading. Expert: William Rae Contact: www.hbwfl.com Bio: William Rae has been licensed in the insurance and financial fields for more than 30 years. Filmmaker: Christopher Rokosz…