Overcome Financial Uncertainty With FAP Turbo

Overcome Financial Uncertainty With FAP Turbo

Financial uncertainty has great impact upon you how you live your life. In this time of recession, is it any wonder that most of us are looking for ways to make our financial situation stronger? Forex trading can be just the thing to add to your net worth to help take some of the stress out of your finances and allow you to meet your financial dreams. FAP Turbo can be the tool that you need to make accurate trades that will give you the best results possible.

If you are tired of worrying about money, don't let another day pass you by without trying this new program. This forex trading robot will take the guesswork out of forex trading to allow you to make a profit consistently. This is something that other programs just cannot do for you.

If you think that you don't have time for a new venture, you will love FAP Turbo. The automated software will choose the most accurate and profitable trades for you time after time to allow you to consistently make money. Even while you sleep, this forex trading system will work for you, choosing trades to make you money.

If you are tired of living your life worrying about money, don't live your life like this anymore. Decide today that you are going to make a change. FAP Turbo can allow you to make money to meet your financial goals and dreams. Don't let another day go by without trying something new to change the way that you are living. Try FAP Turbo today!

Stop losing money. Get FAP Turbo now and start turning your financial situation around.

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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

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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

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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

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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

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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

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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

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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

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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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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

nadavs

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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