Forex Tracer - The Ideal Forex Trading System

Forex Tracer - The Ideal Forex Trading System

The currency market, or the forex market, gives many profiting opportunities for people. It operates twenty four hours a day, it does not suffer from long down periods, and it can create a profit regardless of market direction. The forex market has one more big advantage - it can be traded without any effort with an automated trading system. One such system is Forex Tracer, which seems like the ideal system.

First, it comes from a well known media group: NC Media. This group is well known for their high quality products and service. Their product description pages and download pages are top notch, and the Forex Tracer pages are not different. After purchasing their Forex Tracer, you are directed to a well explained download page with everything from the download link to a technical support address. This step ensures there is no scam in this system.

Easy installation also makes this system ideal. After downloading a little zip file, installation is the quickest thing you can do. The instructions manual is very detailed, and after the installation of MetaTrader 4, the system which Forex Tracer uses, you begin profiting within about five seconds. It can connect to most brokers, even some not popular brokers.

The biggest advantage of Forex Tracer is its ability to trade both uptrends and downtrends. After careful testing, most traders noticed that the direction of the market does not matter to this system. Money is coming regardless of market direction and the value of the United States dollar. There is always money to be made.

The Cherry Picker is sealing the decision about Forex Tracer. It is a custom set of forex indicators which works wonderfully. Traders who used these indicators claimed that a big portion of their profits came from them. The Cherry Picker comes with Forex Tracer at no extra charge.

All these reasons make Forex Tracer the ideal forex trading system. Every trader who wants an automated trading system should consider it as one of his trading tools.

To see Forex Tracer in action and download it, read the Forex Tracer review at my site.


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Forex Brotherhood Review - Trade Forex Like a Pro

Forex Brotherhood Review - Trade Forex Like a Pro
Trading the forex, or currency exchange, market is not an easy mission. There are many factors to consider, news events to read, and questions to ask. Unfortunately, unless you have a close friend who also trades in this market, you have no one to guide you through this difficult and volatile market. This situation leads to many losses and many traders who quit on their first year of trading. However, there is a solution for this problem. It is called Forex Brotherhood.

Forex Brotherhood is a complete package of all the information you need about the currency market. From forums and webinars to daily reports, this product has it all. Having the Forex Brotherhood is like having a professional trader looking behind your shoulder, making sure you are making the right trades. You will never make a wrong trade again.

One of the features Forex Brotherhood offers is two daily reports about currency news and events. This way you are not left alone in the dark, and there is someone who shows you the way. You can easily collect these reports into a big library which will help you to easily understand the world of forex trading.

Webinars are an excellent way to learn a new skills, and that is exactly what the Forex Brotherhood package offers, twice a day. The host of the program gives two daily videos in which he explains exactly what is his plan for the day and how you can copy his moves. These videos also help you learn more about this complex market.

Forums are a great way to learn and share, and Forex Brotherhood offers a wide range of forums in many topics related to the currency market, from general forex chat, specific currency pairs, and trading psychology to your spending plans. All these forums have one purpose: to make you the most professional trader you can be.

To get Forex Brotherhood and start enjoying its wonderful benefits, visit the Forex Brotherhood review in my site.

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Forex Brotherhood - Join the Club of Elite Traders

Forex Brotherhood - Join the Club of Elite Traders
Every job and business require experience, and forex trading is not different. However, trading the currency market has an extra risk - the risk of losing everything and hating it forever. Without someone to hold you in your hand, you are nearly doomed to failure in this field of infinite possibilities. Luckily, there is an answer for that. Forex Brotherhood. This big package includes so much information that even a trader who started trading yesterday can already generate some profits.

First, Forex Brotherhood offers two daily webinars, short video seminars, with a top trader. In this webinar, you will discover secret tactics, what is going to happen today, how it is going to affect you, and how you need to react in the upcoming day. These webinars are a wonderful source of information, and the huge content archive allows you to watch them over and over in order to really understand what is going on.

Two daily reports are also given to you so you can easily read, interpret, and understand the events on the currency market. Some people find it easier to read than to listen, and the reports do a wonderful job at explaining you exactly, at all levels, what is about to happen and why currency pairs moved they way they moved. The two reports are also included in the huge content archive, so you can read past reports and gain great amounts of knowledge.

Forums are an excellent way to meet people, network with others, and learn everything you want. Forex Brotherhood offers such forum with a professional trader. You can ask any question, you can discuss what you want to do with your profits, and you can meet other people who share your interest. This is the most fun and definitely the best way to practice and learn a new skill.

To start enjoying forex and making profits, read the Forex Brotherhood review at my site and sign up.

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How Forex Trading Can Get You Through the Subprime Crisis

How Forex Trading Can Get You Through the Subprime Crisis

The subprime mortgage crisis, the biggest financial crisis since the Great Depression, has hit the heart of the economy of America and the world. Banks collapse one after the other, huge companies file for bankruptcy, and it seems like the economy is coming to an end as we know it. All these problems may lead to a recession, which is very bad for you. However, you can protect yourself from an upcoming recession and go through the subprime crisis smoothly. The answer is trading forex.

Trading forex, or currency trading, is not affected by any financial crisis. Of course, exchange rates move according to different news items, but this market will never be closed, unlike traditional businesses. There is always a trade to be made at the currency market, and the opportunities never end. Even during a recession.

Another benefit of the forex market is its ability to trade both ways, so traders can profit whether the exchange rate goes up or down. In regular businesses, when owners buy something and its price drops, they lose, because they must sell it for a low price. However, in the currency market, it does not matter which way the exchange rate moves or which currency is stronger. There is always a profit to be made.

Automation is a big part of trading currencies. With an upcoming recession, everyone wants to expand their income sources, not rely on a completely new source. This is where Forex Tracer comes in. This piece of software is able to make trades on its own, even while the trader is away from his computer. This way anyone can have a regular day job and also make some hundred dollars per day on the side.

Enter the Forex Tracer area of my site to get Forex Tracer, read a complete review, and get a better understanding of this software. This way you can start earning faster and easily get through the credit crisis.

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Forex Tracer - The Stock Market Crash Personal Rescuer

Forex Tracer - The Stock Market Crash Personal Rescuer

September and October of 2008 will be remembered as two of the worst months in the history of Wall Street and the world's financial markets. Huge swings, from big gains to disastrous losses, sweep the market every day. This market condition and uncertainty raise the demand for something more stable, something that can generate profits over time. It is Forex Tracer, an automatic forex trader.

The first advantage of the currency market over the stock market is its relatively calm atmosphere. The forex market is about currencies, not companies. Currencies cannot go bankrupt, so they usually do not need to be saved like companies. This means you can trade easily, knowing that there will not be huge daily swings.

Two way trading is also a big advantage of forex trading. Short selling is possible in the stock market as well, but it can also be banned, like in September. However, since the currency market is not as heavily regulated as the stock market, short selling cannot be banned at all. This means you can trade both ways and profit in any market condition.

Automatic trading is also a benefit of forex trading that cannot be used in any other market. There are several programs that know how to analyze the market for you and place trades. These programs have been developed by professionals, so they act like one, so you can enjoy the profits of others. When you trade with an automated trader, your brain is a beginner, but your trades and profits are completely professional.

One such automatic trader is Forex Tracer, a program which rides market trends to generate the most profit. You can easily get it through my site.

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Forex Tracer - The Way to Profit From Recession

Forex Tracer - The Way to Profit From Recession

The subprime crisis has affected many financial institutions, and soon it will impact customers as well. While banks can handle the crisis with government support, ordinary citizens cannot do much about the problem. This causes people to hold money close to them, a situation which leads to a recession. Avoiding a recession requires you to have a constant stream of income, and there are not many of them during a recession. However, trading the forex market through Forex Tracer can easily create such revenue stream.

Currency trading, which is also known as forex trading, is the exchange of one currency for another. Trading on this market can generate profit by buying a currency pair at a certain rate and selling it late on a higher rate. This way you earn the difference between the buying point and selling point.

Recession can seriously affect the stock market, but the currency market is not heavily touched by it. Currency pairs keep going up and down every day, regardless of recession or prosperity. This means you always have a chance to win something in the forex market, regardless of economic fluctuations.

Profiting is always possible in the currency market. Most people think that the only way to profit is buying low and selling higher. This is only one way to make a profit. The other way is, of course, selling high first and buying low later. This technique can generate as much profit as the usual way, and sometimes even more.

Opening times are a huge advantage of the currency market in a recession. There are not any. This market is open six days a week, twenty four hours a day. You can trade any time with any person on the planet. No recession can change this.

The biggest benefit of the forex market is automation. Forex Tracer is a program that can trade the forex market on its own, without your presence. See the Forex Tracer review on my site and watch how big profits were generate while no one was near the computer.

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Preparing For a Recession With Forex Funnel

Preparing For a Recession With Forex Funnel

A world recession is looming. People are already buying less, the real estate market is in a free fall, and the stock market has its worst month in decades. Although official indices still show there is a growth, everyone agrees that a recession cannot be avoided. For this reason you need to be prepared. You should find a way to get through this crisis. The solution is currency trading with Forex Funnel.

Trading the currency market, or forex market, has become very popular over the last year, and for a good reason. People want to feel safe when it comes to their money, and they cannot trust their workplace to support them or even let them stay with their job. The currency market is open for everyone, so everyone can join and enjoy the profits.

Profiting ability is another reason the forex market is recession proof. Unlike a regular job, or the real estate market, you can profit when the value of something goes down. It is called short selling. Like the stock market, you can profit when the exchange rate of your currency pair goes down. Since recession makes the value of assets to go down, you can hugely profit from that situation.

Opening hours are also a benefit of the forex market. While regular working hours are fixed, the currency market is open 24 hours a day, 6 days a week. You can work with it any time. It can also be traded from anywhere in the world, so you are not limited to one specific location. You can trade the forex market from your bed or from your hotel room when you are on vacation. All you need is internet access and you are set to go.

The biggest benefit of the forex market is the ability to automate your trading. You can install a software that will trade and profit for you while you sleep or away from home. This way you can have a second source of income while you keep your job. One such automation softwares is Forex Funnel, a state of the art automated trader. Get it now on my site and start profiting.

Merry Christmas,
nadavs

Why Forex Funnel is One of the Best Forex Trading Systems

Why Forex Funnel is One of the Best Forex Trading Systems

Forex trading has become a hot trend recently with tens of automated traders, or in another name, "expert advisors". Their purpose is to trade automatically while you are away from your computer, so you can make money from currency trading while you handle your business. Even though there are tens or even hundreds of automatic traders, only some of them are worth mentioning. One such trading system is Forex Funnel.

Two way trading is one big advantage of Forex Funnel. Usually, trading systems allow traders to profit only when their currency pair is going up or going down. However, Forex Funnel can trade and profit from both sides of the coin. This is a huge benefit for you, since you profit regardless of market trends and the condition of the economy.

Loss protection is a crucial part of every successful trading system, and Forex Funnel definitely has a great loss protection mechanism. By opening opposite trades, the system makes sure that loss is never greater than a certain percentage of your account. By limiting your loss and enabling an unlimited profit, this system is guaranteed to generate you big sums of money.

Profit locking is another critical part of this trading system. Usually trading systems only protect themselves against losses but never guarantee profits. This is not a good sign, since a well earned profit can disappear before the system liquidized the position. However, Forex Funnel has a great profit locking mechanism. This way you will be guaranteed a certain profit when the currency pair you trade reaches a sufficient level or exchange rate.

Forex Funnel can easily be yours. Just enter the Forex Funnel download area of my site, and you will be on your way to forex trading success.

nadavs

The Big Day

Surprisingly (or not), the consumer confidence index went down to 50.4 with expectations for 56. This shouldn't be a surprise to anyone. Gas prices are the super-high, food prices are soaring, and getting a loan is tougher than two years ago. No consumer will be confident in that situation. The dollar took a dive after the report, Forex Funnel made $100.

Today there are two important reports and announcements. The first one is oil inventories, which, as you know, can make oil price be very volatile. However, the most important announcement for today is the new Fed interest rate. This should make the dollar move.

Today at 2:15pm EDT we will finally know if Bernanke is trying to avoid inflation, avoid a recession, or wait another six weeks before deciding. Watch out for your positions.

Good luck trading today,
Nadav

nadavs

Consumer Diffidence

Yesterday was an ordinary day without much events. Even the Dow and S&P indices felt this big nothing and moved about 0% (yes, zero) and 0.01%, respectively.

Today the consumer confidence report is due today, and it will a good gauge for economic activity. Without confidence, there are less consumers and the future doesn't look bright, as consumers make 2/3 of the US GDP.

Tomorrow is the big day with the announcement of the new interest rate. Bernanke will have to choose between restraining inflation and raising rates and avoiding a recession and lowering (or keeping) rates. Tomorrow at 2:15pm EDT, don't miss.

The dollar got stronger yesterday, rising against most major currencies. Like always, Forex Funnel managed to extract $100 out of the market. Let's see what happens tomorrow, after the interest rate announcement.

Good luck with your trades,
Nadav

nadavs

The Week Ahead: Last Week of June

June is about to end, but economic data is just getting more and more interesting. First, tomorrow is the consumer confidence and new home sales, which will show whether the economy is going for a recession or there is still some growth.

Wednesday is the big day. Ben Bernanke will announce the Fed interest rate, and will affect many prices: oil, stocks, the dollar, and others. Watch out for those, stay out of the market if you cannot handle high volatility.

Thursday will bring the final first quarter GDP, which is the ultimate gauge for recession. On Friday we will see another measure of inflation, and if it's high, expect high volatility as well.

Have a great week,
Nadav

nadavs

Plan Your Trades - Use a Forex Trading System

The forex market is hard to predict, and trading with guesses is not a good habit. To trade right, you need a plan.

A plan like this is called a system. System consists of many indicators, oscillators, fundamental economic data, exchange rate patterns, volumes, known pair behavior, and more. Systems usually don't contain everything, but rather focus on two or three components. Simplicity, not complexity, is key. You don't want a complicated system that generates a trade once a week.

Trading systems come in many shapes and forms, but there are two basic types: self-made and pre-made. A self-made system has the advantage of being free, since you develop it. However, developing a system takes time, experience, and testing tools, which can be rather expensive.

A pre-made system is not free, but it sets you free from all requirements of developing, testing, and having months and years of experience in the forex market. All you have to know is where to find a good system like this, and you are set to go.

If you want a good pre-made trading syste, read the Forex Funnel review or the Forex Tracer review. The reviews are based on my experience with them. These two trading systems are backed up by a satisfaction guarantee, so they are risk free.

Have a great weekend, and good luck with your trades this week!
Nadav

nadavs

Israel Raises Oil, Again(?)

Yesterday oil speculators found another reason to keep oil prices at their outrageous price. This time the excuse was an Israeli military practice that was reported to be a practice for bombing Iran. This bubble will not last too long, be warned.

The oil price, financial and automotive sector trouble, and rumors about profit warning in Merril Lynch made the Dow close under the 12,000 point mark, the Nasdaq index went down over 2%, and in general, this options expiration day was very negative.

The dollar took another dive today (Forex Tracer made $390, Forex Funnel made about $100) against most major currencies. The USD/CAD rate went up to 1.0170, and that was the only rise of the dollar against a major currency.

Have a great weekend,
Nadav

nadavs

Less Oil, More Unemployment

China, once again, sets the tone in the global economy. Yesterday they announced that they're going to raise oil caps, and as a result oil went down about $5 per barrel. This move helped Wall Street rise ahead of tomorrow's option expiration.

Unemployment, on the other hand, seems to be on the rise. 381 thousand new initial claims for unemployment have been filed, versus the expected 375 thousand rise. This number brings once again the fear of recession. The dollar responded with flat trading throughout the day, and Forex Funnel used it wisely.

Finally, tomorrow is the quarterly options expiration day on Wall Street. It is also the rebalancing day for some S&P indices. Watch out for high trading volumes and stocks that get "stuck" on a certain price.

Good luck with expiration,
Nadav

nadavs

FedEx Delivers Red Numbers

FedEx reported its earnings yesterday, and on the way warned from a downturn in the economy. As a result, Wall Street indices were faced down. Then, at 10:30am, one hour after the beginning of the trading day, the Energy Department reported a further decline in oil inventories. This pushed oil prices up and made the Dow go under 12,000 points.

On the forex front, the oil inventory report made the dollar fall again against major currencies. In turn, Forex Funnel and Forex Tracer did their job and pocketed some hundreds of dollars to the trading account.

Today at 8:30am EST the initial claims number will be released, followed by the leading indicators and the Philadelphia Fed report on 10am. Should be interesting.

Good luck with your trades,
Nadav

nadavs

Wholesalers Pay Much More

Consumers paid 0.6% more on May than April, but wholesalers paid more, much more. The producer price index (PPI), the index which reflects the change in wholesale prices, went up 1.4%. More than double the CPI. This is a very bad sign for the American economy, signaling high inflation and rising prices.

Contrary to the PPI, oil prices went down yesterday to below $134. Hopefully they will stay there and keep going down. Those outrageous oil prices make everything more expensive, and soon they will make loans and credit cards more expensive with higher interest rates.

I also started testing a new forex trading system called Forex Funnel. It has a very special trading strategy. I may write a review for it on a Sunday.

Yours,
Nadav

nadavs

Slick Excuses

It's excuses time at Wall Street. Yesterday oil nearly hit $140 per barrel, but then retreated. No one knew why that happened, so people invented a new excuse: options expiration. Options may drag oil to a round number, like $140, but there is also some economic reason, and oil went down to about $135.

Today's data includes the PPI, an important gauge of inflation. PPI is more volatile than CPI, but eventually wholesalers affect retailers, which eventually affect consumers. There is no way to escape it. Rising oil and food prices affect the entire economy, which in turn affects the forex market.

EUR/USD was unstable yesterday, rising and falling with no clear patterns. Forex Tracer still managed to pull a small profit out of that, but not as big as usual.

Have a great day,
Nadav

nadavs

The Week Ahead: Third Week of June

The week opened with a sharp rise on the EUR/USD (Forex Tracer decided to take a short position and eventually profited). The dollar went down against most major currencies.

The week ahead has many interesting reports, and an interesting one is the PPI, Producer Price Index. Usually this data comes before the CPI, and it is a good indicator for it. This month's PPI is expected to rise 1%, a huge increase compared to last month's 0.2%. This is a bad sign for the economy, and it usually signals that the CPI will also rise beyond expectations.

Since this is the third week of the month, this Friday is the day when options on Wall Street expire. This means mostly boring and flat trading for the day.

Good luck trading this week,
Nadav

nadavs

Forex Leverage: a Two-Edged Sword

As every forex broker says with pride, in the forex market you can leverage your money and make enourmous earnings. As attractive as it sounds, leverage also has a dark side, losses.

Leverage is just the ability to trade with more money than you have. If you have a leverage of 1:100, you can open a trade of $100,000 with $1,000. When the pair moves, you earn or lose 100 times this move. If the exchange rate goes just 1% in your favor, you double your money.

However, leverage is not perfect. Just like it makes profits big, it also magnifies losses. Just as a 1% move in your favor will double your investment, a move of 1% against you will erase it quickly. If the leverage is higher, and some brokers go as high as 1:500, your losses will be eliminated much faster.

When you trade or use a automated forex trading system, make sure to properly adjust your desired leverage. Don't make it too small, because you'll miss out some good opportunities. However, don't set it too high, or your losses will be greatly magnified.

Have a great trading week,
Nadav

nadavs

Good for Forex, Good for Stocks

Yesterday's CPI figure taught us two important lessons. The first one is that good sales numbers usually come with a higher inflation. The other lesson is that every market interprets data differently. The two markets in this story are the forex market and the stock market.

First, the expected CPI was +0.5%, which is not a small increase. However, the real CPI came out to be +0.6%. Usually, such a small difference does not make such a big impact. However, due to the upcoming Fed meeting, this number is very important.

The stock market reacted with joy to the fact that the Fed is not going to raise the interest rates, as many feared. The S&P index went up by 1.5%, the Dow jumped 1.37%, and the Nasdaq surged over 2%, probably do to the Yahoo-Google agreement.

On the other hand, the dollar rose against all major currencies. The reason for this rise is the completely eliminated risk that the Fed is going to lower interest rates. Inflation is too high, so the Fed can't lower the interest rate and boost inflation. Forex Tracer managed to pull out two quick trades out of this fall in EUR/USD.

As you can see, different market interpret the same data differently. As a trader, you need to know which way to trade on different news, or not trade at all during that times. Know your market and know your pairs.

Have a great weekend,
Nadav

nadavs

The Stimulus Checks are In

At 8:30am EST yesterday, the retail sales figure was published. To the surprise of many, it went up by 1% instead of the expected 0.5%. This big rise lowered the chances of an interest rate cut on June 25, and the dollar surged.

Analysts think that this rise in retail sales was caused by the new stimulus plan checks that arrived during April and May. For now, it looks like the plan definitely worked out.

Today is the big day with the CPI report. If it's above expectations, the dollar will rise and Wall Street will fall. If it's below expectations, there will be another fall for the dollar. Stay tuned, it's coming in 2:30 hours.

Good luck with your trades,
Nadav

nadavs

Oil Shortage Effect

Yesterday everything was calm, until the report by the Energy Department. Then, at 10:30am, the United States reported that the crude oil inventories went down by over 4 million barrels. Oil prices jumped, the dollar fell.

Today the retail sales figure finally comes out. A very positive figure will signal that the recession is not coming so fast. A negative figure will make EUR/USD jump and greatly increase the fears of recession. Tomorrow's CPI will also tell us where the economy is going.

Good luck with your trades,
Nadav

nadavs

Flat and Oily

Yesterday's Wall Street trading was mainly flat, but the Wall Street currency, the dollar, was headed in one direction against the Euro: up. The EUR/USD pair lost about 150 pips Yesterday, and as usual, Forex Tracer took full advantage of this situation.

A very important indicator will be released today at 10:30 EST, the crude oil inventories. This number is very important today, and it will help to determine the course of oil for today. If the inventories are exceptionally low, oil may jump beyond its past record.

The interesting indicators will come tomorrow: initial claims and retail sales. These numbers will definitely show the dollar a course of action. With Friday's extremely important report, the CPI, the retail sales figure will also make some people very rich.

Good luck with your trades,
Nadav

nadavs

Bernanke, Recession, and Inflation

Yesterday Bernanke gave a speech about the United States economy. In his speech, he mentioned several very important pieces of information for forex traders, including information about a recession and the inflation.

First, Bernanke talked about the potential recession. He said he knows that the recent job report and oil prices are very unwelcome, but the fear of recession should not be so big. The economy is starting to do better. This gave the dollar a little boost, but not as his inflation speech.

After mentioning the recession, Bernanke started talking about inflation. He said that if consumers and business owners expect inflation, they will behave in such a way that accelerates inflation, so it becomes a self-fulfilling prophecy. Then he warned that if inflation does stay at safe levels, the Fed may have to raise interest rates. This led the dollar to jump, the EUR/USD rate fell, and Forex Tracer managed to get a nice boost out of it.

Today's only interesting report in the US is the trade balance, something Bush managed to ruin. Let's see how bad it will be this time.

Good luck with your trades,
Nadav

nadavs

The Week Ahead: Second Week of June

The forex market opened yesterday with a rise of the EUR/USD to over 1.5760 (Forex Tracer managed to make another $390 off that move). Asian traders did not calm down from the disappointing job report and made the dollar dive.

Ahead of us is a week full of information with two major indicators: retail sales and the CPI. The retail sales indicator tells how much retail sales have grown over the last month, and it is a good indicator of consumer spending. High retail sales means consumers are spending more, and so expanding the economy. A negative figure tells that consumers spent less last month than two months ago. It's not that great, but as long as it doesn't continue, it's fine.

The CPI is the number everyone waits for. It stands for Consumer Price Index, and it measures the change in price of certain goods and services. This number is very important because it is a gauge for inflation. This month it's extremely important, because of May's job report. If the number is negative, it can signal about an upcoming recession. If it's near-flat, it means prices have not risen too much. If it's high, it can signal an upcoming stagflation, a combination of stagnation and inflation. Those two economic situations should cancel each other, but when they show up together, they are really hard to recover from. Beware of the bears.

Have a great week,
Nadav

nadavs

Forex Day Trading

As you know, there are many types of traders. Some are banks, trying to profit on long term trends of currencies. Others are hedge funds, trying to create a revenue for their customers. Some are investors who believe in a currency for the long run. And some are day traders, who have a very clear purpose: profit, and profit today.

Day traders have a very easy to understand mission statement, but their work is hard. They need to identify the exact entry point and exit points to make the most of a short term move. Missing an exit point can cost thousands of dollars.

Good day traders use an automated forex trading system. This system tells them when to enter a trade, how big it should be, and when to exit the trade. Expert traders create their own system, but beginners can handle with a pre-made system.

Pressure is a constant feeling of day trading, but that's where most day traders find the joy in the job. However, some people can't handle such pressure, and they should not day trade, or at least practice with demo accounts first, one supplied by their brokers.

Good luck with your trades,
Nadav

nadavs

Jobs, Oil, and the Dollar

After thinking for a while, I decided to let go of the forex terms right now and focus more on current events and market commentary. On days with not many events, like Sundays, I will continue to explain interesting and important forex terms.

Yesterday could be called Friday the 13, but it came a week earlier. The job report turned out to be extremely negative: 49,000 jobs were taken out of the market. The worse part is the unemployment figure which jumped to 5.5% from 5%, the biggest rise in 22 years. This figure means only one thing: the US is headed or already in a recession.

As a result, the US dollar and Wall Street took a dive yesterday. The EUR/USD pair, which nearly hit a bottom of 1.5360, simply soared to a rate of 1.5769 to end the week. A forex trading system I am testing right now, Forex Tracer, took advantage of this huge leap and created nearly $1000 in about 5:30 hours from an account of $3000.

Wall Street wasn't too impressed with the employment figures as well and sent the Dow Jones index to lose over 400 points near the end. At the close, the Dow went down "only" 394.64 points, a 3.13% decrease. The S&P 500 sank 3.09%.

The bad employment report also signals that a rate cut is likely. This signal sent the oil to one of its highest one day rises: over 7% in one day. A barrel of oil is currently priced at $138.39.

Let's see what Monday brings.
Nadav

nadavs

Forex Market Trends

Just like anything in life, the forex market has its own trends. Although some trends are hard to spot because of the variety of currencies, there are some currencies, like the Israeli shekel (ILS), which have increased in value over many currencies. Here are the three trends a financial market can have:

The first two are well known - an up trend and a down trend. These happen when there is a clear movement of a currency to either direction. It can be in one pair or in all pairs of a currency. For example, the dollar is currently in a long down trend. To profit from an up trend, you need to buy. To profit from a down trend, you need to sell. Simple.

The third trend is sideways, or flat. This trend is the most annoying, since there is no clear movement and prices just go up and down with no clear direction. To profit from such market, you need to ride minor trends or use options. Most forex brokers will allow you to do that, and if not, ask your broker for options (make sure you know how to trade them. Options are very risky).

Good luck with your trades,
Nadav

nadavs

Support and Resistance in Forex

When professional forex traders think about entering a position, their trading system may use either fundamental analysis or technical analysis. If their system uses only technical analysis, there is a very high chance their system uses supports and resistances.

A support is a price or exchange rate that prices do not go under. This happens because of big buying orders waiting at these levels. If there are many buy orders at the 1.5 exchange rate for EUR/USD, it will be hard to go below that price.

A resistance is the opposite of a support. It's a price or exchange rate that make an "upper bound" for currency pairs. This occurs because of big sell orders awaiting on these prices. If there are many sell orders on the 1.55 exchange rate for EUR/USD, it will be hard for the exchange rate to go above this level.

Supports and resistances come in many shapes and forms. However, there are two common forms for them. One is horizontal lines, which means the exchange rate does not go above or below a specific price. The other one is diagonal lines, which means prices are moving in a "tunnel", either upwards or downwards.

Good luck with your trades,
Nadav

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Bull and Bear Markets

When you read financial newspapers, you often encounter the term "bull market" or "bear market". Also, you can read about "bulls" and "bears". However, as you know, animals don't trade in the currency markets, so it means something else.

A bull market is a market where prices are going up. For example, the stock market was a bull market in the years 2003-2007. A bear market is a time of declining prices and uncertainty in the market, like after the dot com bubble crash.

The forex market does not have official bull and bear markets because currencies do not have a long term tendency to rise like stocks. However, If an analyst or a forex broker says he's "bullish" on a currency, it means that he believes that this currency will rise over currencies. If an analyst says he's "bearish" on a currency, it means that he believes that this currency will go down against others.

Catch the bulls,
Nadav

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The Take Profit Order

After the stop loss order, there is one more important order: the take profit order. This order is very simple: it just terminates the position and takes the profit generated. There is a really good reason to do that.

The reason for taking profit is that the forex market is never going in one direction for eternity. Eventually it is going to reverse its direction and start going against you. This is why you need to place a take profit order and take your profits in small bites.

Every good forex trading system sets a take profit order, also known as T/P order. However, not all systems do it the same way. There are systems that close the entire position on the take profit order. Other systems close only a part of the position, mostly half, and let the other part run for free until it hits the stop loss. The idea behind this strategy is moving the stop loss to avoid taking a profit and losing it back on the other part of the position.

Good luck with taking profit,
Nadav

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Forex Bid and Ask

When you trade the forex market, your forex broker is going to give you two important numbers: the bid rate and the ask rate. Both of these rates are very important in making trading decisions and estimating how good the broker is.

The ask price is how much the broker is asking to "buy" a pair of currencies. The bid price is how much the broker is bidding to buy back a pair of currencies (in other words, it's your selling price). Since the broker wants to profit, the ask price is always higher than the bid price. The broker buys (bids) low and sells (asks) high.

The difference between the bid and ask price is the spread, and this is where a good broker is measured. A good broker will give you a good spread of 2-3 spreads on the major currencies. More exotic currencies will probably suffer from high spreads, sometimes even 10 pips or more.

Also, when you get yourself or develop a good forex trading system, make sure it can handle the bid-ask spread, otherwise, you set yourself to losses.

Good luck with your trades,
Nadav

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Currency Arbitrage

.diIf you are trading in any financial market, you probably heard the term "arbitrage". This term means buying an asset at one market and selling it on another market, where the price is higher. Usually, this price gap is closed very quickly, but people who find arbitrage opportunities can make some quick, safe, profit.

Arbitrage is also possible at forex, but the high liquidity of the forex market makes it almost impossible to take advantage of such opportunity. Here is an example of a forex arbitrage you can use if you find (in this example there is no spread, but remember most forex brokers have).

There are three fictional currencies: ABC, DEF, GHI (original, right?). Their exchange rates are the following:
ABC/DEF = 2
GHI/DEF = 5

From these two exchange rates you can determine the exchange rates of all three pairs. Since the rate is a ratio between currencies, you can treat is as a mathematic proportion. That means the exchange rate ABD/GHI is 2/5 = 0.4.

Now, let's say that the direct trading of ABC/GHI reached a rate of 0.3. In this case, you can profit from the opportunity you got: if you trade from ABC to DEF to GHI, the rate is 0.4. If you trade from ABC directly to GHI, the rate is 0.3. A smart trader would do this (this example assumes the trader has 3000 GHI):

Buy ABC/GHI at 0.3 - sell 3000 GHI and buy 10000 ABC
Sell ABC/DEF at 2 - sell 10000 ABC and buy 20000 DEF
Buy GHI/DEF at 5- sell 20000 DEF and get 4000 GHI

As you can see, with three simple, risk free, orders, you created 1000 GHI out of nothing. Fortunately, this even is really rare, so people are not able to abuse such situations.

Hope you learned something,
Nadav

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Base and Quote Currencies

As you know, currencies are traded in pairs - one is sold and one is bought. When written, it is usually in the form EUR/USD or just EURUSD. There are two currencies in each pair. The "top" one, the Euro in this example, is called the base currency. The "bottom", or second one, is called the quote currency.

What such pair represents is how much of the quote currency you need to buy one unit of the base currency. It also means how mcuh of the quote currency you can buy with one unit of the base currency. For example, right now the USD/JPY rate is 105.49. That means you need 105.49 Japenese Yens (quote currency) to buy one US dollar (base currency) with your forex broker's trading system.

The use of base and quote currency becomes important when talking about a currency becoming stronger or weaker. If a currency is the base currency and it becomes stronger against the quote currency, the exchange rate of the pair goes up. If the quote currency becomes stronger, the exchange rate goes down. This is only terminology, but it's important to understand.

Good luck with your trades,
Nadav

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The Stop Loss Order

When you trade the forex market, your trade can go very well - you can make 100% in minutes and enjoy a daily income of thousands. However, just as trades can go well, they can go terribly wrong, and you can lose your entire trade in minutes.

Exactly for that the stop-loss order was created. Every forex broker lets you use it. It allows you to specify a price in which the position will be terminated. If you are on a "long" position (buying), the position will be sold. If you did short selling, your position will be bought back.

The big benefit of a stop loss order is clear. It allows you to set the maximum amount you're willing to lose. This is the heart of every forex trading system. Without a good stop loss, you're going to lose very fast.

However, a stop loss order can be a two-edged sword. Sometimes the exchange rate can just "touch" the stop loss point and then rush towards your original goal. This situation is very frustrating, and it causes loss of faith in the system. However, if the system is good, most stop loss orders are good.

Good luck with your trades and stop loss orders,
Nadav

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Forex Trader? You Need Nerves of Steel

When you trade the forex market, you will reach a point of impatience. "I can do better than the system", or the infamous "I'm smarter than the market". When you start saying that, close all the trades that need to be closed and shut down the trading software. You've gone too far.

Forex trading may sound easy, and it really is. But it's easy under one condition: discipline and nerves of steel. Sometimes your forex trading system will say something completely different than what you think. If you trust this system and it's good, just do what it says. Most of the times, you will profit.

Not only discipline and listening to the system are required. You also need nerves of steel. Sometimes you see your position going down 3%, and with leverage this can also mean 30%. The most important thing to do is not panic. Re-evaluate the situation. Does the trade entry point matches the system's orders? Does this situation require exiting, or the trade has not reached an exit point yet? First think, then act. If you act before you think, your money will disappear very quickly.

That is why you need to practice demo accounts first. Every good forex broker will let you open a demo account and practice your skills. Make sure you can stick to a system on virtual money. When you succeed there, move to real money.

Good luck,
Nadav

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Short Selling

Sometimes you want to enter a trade, but you don't have the right currencies. For example, your accound is funded with US dollars, and you think the dollar is going to rise over the Euro, so you want to "sell" the EUR/USD pair, meaning selling Euros and buying dollars. However, you don't have Euros to sell.

To get over this problem, your forex broker allows you to do "short selling". This means you sell something you don't have, and you agree to buy it later. This enables you to profit when something is going down. You sell it now, at a high price, and buy it when the price is lower. "Buy low, sell high". You do exactly that, but in reverse.

This order is common also on the stock market, so people can profit from a down market. However, it is not always available, and the risks are much greater (in theory, there is an unlimited loss). Also, if the price suddenly goes up, you may not be able to buy back the stock, and you'll be left with a huge loss.

Most good forex systems "know" that short selling is possible. This way you can benefit both ways - when a currency goes up, and when it goes back down.

Hope you learned something new today.
Nadav

nadavs

Pips - Forex Units

The last post was about the spread, which is measured in units called pips. A pip is the smallest unit of change in forex rates. It also appears on the stock market. The smallest unit of change there is one cent, so a pip on the stock market is one cent. Most forex trading systems and stock market auto-traders use pips, so it's a term you should know.

In the forex market, exchange rates usually go four decimal points. For example, the GBP/USD rate right now 1.9760, which means that for every British Pound you sell, you can buy 1.9760 US dollars. The zero is the ten thousandth digit, so that is what forex pips are in this pair. If the rate goes up to 1.9763, it is said that the exchange rate moved up 3 pips.

However, not all pips are the ten thousandth digit. Some currencies, like the Japanese Yen, go in hundreds. Currently, the exchange rate of the USD/JPY pair is 103.94. This means that for every US dollar you sell, you can buy 103.94 Japanese Yens. As you can see, the exchange rate of USD/JPY goes up to two decimal digits. A pip in this pair is one hundreth of the rate. If the exchange rate goes up to 104.00, it is said the rate went up 6 pips.

This is the reason the spread is important. The bigger the spread, the bigger losing position you start with. Your objective is to get the lowest spread possible to have the best opening position when entering a trade.

Good luck with your trades,
Nadav

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Forex Spreads

When you start trading in the forex market, you will probably hear the term "spread". If you are a beginner, you probably don't know what it means, or why you want this spread to be as small as possible. Here is the truth:

A spread is the difference between the buying and selling price of a currency pair at a given time. Usually your broker gives you two rates: a buying rate and a selling rate. The buying rate is always higher than the selling rate, so if you buy and sell without price movement, you lose.

Good forex brokers will give you a spread of 3 pips or less for the major currencies (a pip is a "forex unit" of the exchange rate, usually a ten thousandth of the rate) during normal market conditions. When the market becomes volatile (which happens after important announcements, like interest rate decisions) the spread usually grows. Bad forex brokers give spreads of 5 pips or more on major currencies.

The spread is just another form of commission. Most brokers don't take a commission on trades (if your broker does, consider switching), but they have this spread. It means you start from a losing position right after you enter a trade, and you need the exchange rate to move some pips in your direction just to break even.

This is the reason the spread is low on the major currencies and high on others. The major currencies have a high trading volume, so many people are buying and selling on the same price, and the broker profits from the spread. The more exotic currencies have a lower volume, so the brokers raise the spreads to make more money out of them.

Remember - the spread is a hidden commission. Don't compromise for a spread of more than 3 pips on the major currencies under normal market conditions.

Yours,
Nadav

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The Traders on the Forex Market

When you trade in the forex market, you are not alone. The daily volume of the forex market is over $3 trillion, which means a trade of one million dollars doesn't even touch the tip of top traders. It's a really huge market. But who is trading there?

First there are banks, including central banks and commercial banks. Central banks have some control over the economy of a country, especially with the ability to change interest rates. Central banks also control money reserves of countries, including reserves of foreign currencies.

Commercial banks manage the trades between other traders. They also buy and sell currencies for their own speculation and profit attempts. Those commercial banks are also forex brokers for some institutions and private traders.

Importers and exporters also trade the forex market, mainly to convert foreign currencies to their local currencies and "lock" their profit with contracts that guarantee exchange rates when they do international business.

Finally, there are private speculators. These can be private people, hedge funds, or any person or organization that does not have to report every move in the forex market to the authorities. Those speculators try to buy and sell currency pairs in order to make a profit. They usually have no intention to use foreign currencies for anything else.

Hope you learned something today.
Yours,
Nadav

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What the Forex Market is All About

Yesterday I briefly introduced the forex market. Today I want to go a little bit more in detail.

As you know, the forex market is where currencies are being bought and sold via a forex broker. After you sign up with a forex broker you make a deposit and you can start trading.

Forex trading is about selling one currency and buying another one. This is why forex price quotes go in pairs. For example, EUR/USD means how many US dollars are worth one Euro. When you use the "buy" command on this pair, you sell US dollars and buy Euros. Your main objective here is that the price of the Euro will rise in terms of US dollars, so you will make a profit.

After you achieved (or not achieved) your price objectives, you can "sell" the EUR/USD pair: you sell your Euros and get them in US dollars. If the price of the Euro increased, you get more US dollars. A profit!

Now that you understand how this works, sign up with a forex broker, ask the broker to open a demo account for you, and start demo trading. Don't put money right on the start. Get the feeling of the market first.

Enjoy,
Nadav

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So, What is Forex?

Welcome to my new forex blog!

I will be giving here short posts about the world of forex. It'll be mainly about the important parts of forex, like spreads, buying, selling, short selling, options, and so on. Forex is a big subject, and I'll give it to you in small bits, for an easier understanding.

Today I will start with the most important thing: what is forex?

Forex is a short way to write Foreign Exchange, or foreign currency exchange. The forex market is where currencies are being bought and sold for other currencies, mostly to make a profit.

I hope you will enjoy and learn from this new blog.
Yours,
Nadav

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