Forex Trading Fundamentals: Good News for the Dollar

By: Andrew Shiveley

Over the past six months it seems like almost every major finance magazine has published an article related to the weakness of the dollar. If you are a currency trader like I am then this topic is particularly relevant to you because you need to know what the long-term trends of each currency are so that you can make profitable trades.

What you probably have not been reading about in the news are some of the events that have been happening behind the scenes or that will be happening in the near future, and why the American economy will ultimately regain its strength.

The single most significant factor affecting the American dollar is the trade balance, and the biggest portion of this problem is related to our war in the Middle East that should never have been authorized, yet is still costing us billions of dollars every single day. I will not spend a lot of time talking about the horrendous actions of the Bush administration (namely that they defrauded their way into office in order to wage a cultural genocide for the sake of gaining control over oil), but there are truly good things that have been happening behind the scenes and that will be happening in the near future.

You will not hear about many of these things in the mass media news outlets in America such as CNN and ABC, and there is an exceedingly simple reason why these manipulated news networks try to convince the American people that there is a threat of danger when really none exists at all: War is profitable. There are powerful groups in our world today whose agendas are motivated by greed and control, and these people engage in heartless wartime profiteering so that they may satisfy their lust for power. But it is not all bad: I will discuss some of the wondrous events that are causing these groups to rapidly lose their power, and what all of this information means for the currency markets.

The Bush Administration has dropped to single-digit approval ratings, and millions of Americans have gone to websites such as Impeach Bush and spoken out about their opinions of why this man is no longer our leader. Dennis Kucinich, a representative from my home state of Ohio that I have had the pleasure of meeting, is leading the way for the eventual impeachment and forcible removal from office of Bush and his war-mongering cronies.

The Bush Administration has inadvertently caused a global recession with their desire to wage a heartless war, and the signs are strong that the global community has finally come together and told these warmongers "Enough!" They are rapidly losing power as people are becoming more conscious and aware of the fact that they have been lied to by the controlled mass media outlets.

If you are looking for really good forex trading opportunities, I would be willing to bet that when the news releases come out stating things such as Bush's impeachment or other things that peace-loving people the world over are working to create, there will be a large jump in the value of the dollar in the window of a day or two.

The really good news for the dollar and for the American people is coming from Japan. The Japanese are the largest holders of foreign dollar reserves (around $5 trillion dollars), and they have openly declared that they will no longer fund the American war effort.

The reason why I remain optimistic about the future of the American economy is because of the two main presidential candidates that have come forward to lead our country. In my mind (and in accordance with recent political data), the two main candidates in the 2008 presidential election will be Barack Obama and Ron Paul. Both of these men are benevolent leaders and are sufficiently equipped to rectify the errors of the Bush Administration, and Ron Paul has openly stated that he will abolish the Federal Reserve and the IRS to create a more prosperous America.

In the last paragraph, notice that I said the "American economy" and not the dollar. This is an important point, because many benevolent and powerful leaders are discussing new potential monetary systems for the United States that can lead to greater prosperity. The Federal Reserve system is based upon perpetual debt, and it is not sustainable because it steals wealth from the American people and puts it into the pockets of a few. This is all very good news, and so you may be wondering how this plays into your forex trading.

The dollar will continue to go down so long as our war is not stopped, and so for the next few months until the Bush Administration is forcibly removed from office or until they simply fade away to be replaced by a new leader, there will still be a downwards trend for the USD.

After our war ends due to internal political pressure from our benevolent leaders as well as financial pressure from the Japanese, many Japanese leaders are discussing the possibility of using their foreign dollar reserves to create a global humanitarian mission where they can bring knowledge and modern telecommunications access to countries that have not been able to provide it for themselves.

As this happens the American economy will regain strength because our trade balance will become much more sustainable. So ultimately for your forex trading, the downwards trend for the dollar will continue until these big benevolent changes occur, afterwards the American economy (as well as the global economy as a whole) will regain its stability.

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Forex Scalping: Fast Precision Forex Trading for Profit

By: Jason Fielder

If you've looked around online for information about Forex and Forex trading strategies, then it's likely you've come across the practice of "scalping."

In the Forex market scalping is an extreme example of day trading which involves traders who buy into a position intending to see a quick market movement, and then sell. Most scalping trades last only a few minutes, and none more than a day.

While technically some one or two hour trades can be considered scalping, generally that's just referred to as normal day trading. When someone in the Forex market mentions scalping, the image is of that "surgical precision" trade. The scalper who is trading the Forex is a trader who opens and closes a position in literally minutes - or in rare cases maybe even less than a minute.

The theory behind scalping is that by anticipating an immediate surge to a news release or other evens, a trader can jump in, and since the movement is so quick, they can show a profit, then immediately exit to help minimize the risk. By doing this effectively, a trader in theory could collect smaller profits bit by bit while avoiding any large violent market swings that could cause you to lose a lot of pips.

One of the most important parts of scalping is to have a stop and exit in mind before entering into a position. That way as soon as the market moves in either direction, the position is immediately closed. Even a few pips difference can be a big deal, since the leverage in the Forex market allows them to make a profit off even the smallest pip gains.

Scalping may limit potential losses, but since all transactions are so quick, it can also limit potential profits, since it would require a quick exit from what could end up being a breakout market.

So like any trading strategy, there are positive and negative points to this strategy. While scalping my be a favorite practice among some day traders, if you're just starting in the Forex market, it's best to find a solid Forex trading system that concentrates on long term strategies.

Learning to use a dependable long term system is the first step of profiting from Forex trading, and needs to be taken before even considering moving on to anything else, especially to something like scalping, which is an extreme version of day trading and not an easy skill to learn effectively.

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And now I would like to offer you free access to a Forex trading system that is 89.1%accurate, so you can literally start trading the Forex today. You can access it now by going to: www.foreximpact.com/reports/89percent/ From Jason Fielder - Founder, ForexImpact.com

Is Forex Better Than Stocks? 3 Reasons Why It Is

By: Jason Fielder

If you're looking for the ultimate trading market, forget Wall Street. The Forex Market is where the largest volume in trading is going on, with an incredible amount of nearly $2 billion worth of trading in a 24 hour day. Why is the Forex Market better than stocks? Why is a dollar better than a nickel? Because it's worth a lot more. That is one of the most basic and obvious answers to this question. There is a fortune that can be made in trading Forex because the Forex market is constantly trading.

Reason #1 Why Forex is Better Than Stocks Because:
The Forex market trades a larger volume than any other market in the world. The stock market trades roughly $10 billion in volume a day. That's not bad at all, but it isn't even 1% of what the Forex market trades daily. Not even close.

The Forex market trades an average of $1.8 TRILLION dollars of currency a day. No other market in the world comes remotely close to this figure. $1.8 Trillion dollars is only the first reason that the Forex is better than stocks.

Reason #2 Why Forex is Better Than Stocks:
No Enron, no WorldCom, no Tyco. These currencies are based on the strength of an entire nation's economy, not the reports of one company. This doesn't mean there isn't risk - every market has risk and Forex is no exception, but usually stable countries don't fall overnight.

I had a friend who went to college, got into stock trading, and had a personal stock portfolio worth six figures by the time he was only 27. Not bad. But almost all of it was McCloud, Enron, and MCI WorldCom. Nearly overnight his small fortune was worth less than $20,000.

All because of false stock reports from CEOs. This can't happen in the Forex. While economies can go up or down, there is both technical and fundamental analysis that can help you identify ahead of time the potential for a currency that is going to drop. Forex trading has risks like anywhere else, but one corrupt CEO is not one of them.
Also, when one currency goes down, the other in the pair goes up, so being on the right side can mean that one country's misery can still makes you a fortune.

Reason #3 Why Forex is Better Than Stocks:
There's always action. Unlike the stock market, which has a daily close to the market day, the Forex market is open every day, except Saturday. There is only one close in the Forex for an entire week, meaning almost any day, any time, you have the ability to trade. This allows a great flexibility in when, where, and how you can trade. Options are good.

These are only three of several reasons why the Forex is better than stocks, but if you want to trade where the most action is, there's no question you want the Forex market.

Article Source: http://www.tradeforex2000.info/forexarticledirectory

And now I would like to offer you free access to a Forex trading system that is 89.1%accurate, so you can literally start trading the Forex today. You can access it now by going to: www.foreximpact.com/reports/89percent/ From Jason Fielder - Founder, ForexImpact.com

4 Types Of Technical Indicator You Need When Trading Forex

If you have any experience in using any kind of charting packages to assist you with your forex trading, you will know that there are endless different technical indicators you can use. In this article I'm going to be asking what are all these indicators and which ones do you really need?

As you can guess from the title of this article, there are essentially four different types of technical indicator and they are as follows:

1.Trend indicators.

MACD, Parabolic SAR and the various moving averages are a few examples of trend indicators and they can all be used to identify a trend. It's widely argued that you should only trade with the trend so all of these indicators will help you to take the decision out of your hands, and therefore dictate which way you should be trading. Your only decision now is at what level to enter the trade.

2.Momentum indicators.

These types of indicators are essentially oscillating indicators and are most useful for determining overbought and oversold positions and can be very useful in signalling the start of a new trend. Examples include RSI, Stochastics and CCI.

3.Volume indicators.

As the name suggests, these types of indicators show the volume of trades behind a particualr price movement which can be extremely beneficial because a price movement backed up by high volume is a much stronger signal than a price movement based on low volume. Examples here include Chaikin Money Flow, Force Index, Money Flow Index and Ease Of Movement.

4.Volatility indicators.

Volatility indicators generally use ranges to show the behaviour of the price and the volume behind any movements. This is useful because any dramatic change in behaviour can provide a good entry signal. Common examples include Bollinger Bands, Average True Range and Envelopes.

So there you have the four different types of technical indicators available to you. Which ones you use is entirely up to you, but it's generally advised that you have at least one type of each in order to provide additional confirmation for entering a trade.

Trading forex using technical analysis is all about probabilities in that when you enter a long position, for example, you want all of your chosen signals to be signalling an upwards movement, therefore indicating a high probability of an upwards movement taking place.

If you use a strict stop loss policy and use these different types of indicators to confirm positions, then over time this high probability trading method should provide you with more winners than losers in the long run.
About the Author

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Author: James-Woolley
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Forex Trading Machines

Forex trading presents a real opportunity to achieve huge financial profits. All that you need is to tread in the market sensibly and use the tools available. Forex trading machine is one such tool. They are automated trading platforms through which you can trade into the market without having in-depth knowledge on forex.

Day by day, forex trading is becoming the most popular alternative career for people from every walk of life. Forex trading machines or the automated trading platforms are making life easier for them. To them it is the dream machine to trade forex that helps them to take each and every decision for their trading.

For veteran traders, forex trading machines are a place for experimenting different trading strategies. According to seasoned forex traders price driven forex trading or PDFT is one such strategy that works like a forex trading machine, churning out profits from every trade.

PDFT is a method free of technical indicators or any other trading tool. Therefore, according to experienced traders, this system works like a forex trading machine which is perfectly mechanical. Anyone will be able to trade following simple instructions given by the automated system.

But this exceedingly powerful forex trading machine can be exploited to its fullest potential with little innovation and understanding. If you learn the tricks of the trade, you will be able to use the ‘machine' even better. You must try to learn the essential basics of the forex trade before you actually start the trading.

An e-book by Avi Frister titled "Forex Trading Machine" introduces the readers to the forex market without bothering them with technical and fundamental indicators. The book is easy to understand and use. "Forex Trading Machine" will not teach you pivots, chart patterns, MA's or other techniques that demands your experience or judgment.

Instead, it focuses on strict entry and exit rules on basis of price action that eliminates subjectivity from trading. The author claims that after going through the steps, you would be able to trade like a ‘robot' with guaranteed profits.

Introductory chapters of "Forex Trading Machine" informs the reader about basics of the forex including explanation of currency quotes, pips, margins, daily ranges, technical and fundamental analysis etc. The book also describes how one can develop a disciplined trading strategy, control over emotion like fear and greed, watch the market for assessing the trends etc.

The book "Forex Trading Machine" outlines specific strategies following which you can develop a disciplined trading practice. These strategies are supported with risk management measures, which prevent you from incurring losses.

The main Forex trading strategy described in the book is ‘Cash Cow' which is perfect for a person who does not have time to analyze the forex market and forex charts or to sit in front of the terminal throughout the trading hours. Advanced traders, who are capable of employing more than one strategies will be immensely helped with the book in understanding technical or fundamental indicators.

About the Author
Author: city_tiger

Forming an Opinion Which Way Your Chosen Currency Might Go

It is known that currencies react to a series of events such as inflation, interest rates, the state of the economy, and so forth. Because of this, it is vital to keep evaluating the various data, in order to form an opinion of the direction the currency of your choice might be heading.

Let us look at inflation and what it actually means. It is not about a particular model of a boat or a motorcycle, or certain services costing more money, which could be due to business enterprise success or failure, but about a widespread increase in prices throughout the country.

The rate of the inflation is based on a calculation of the average price change right across the economy. This is usually taken over a period of a year, hence the term annual inflation.

If there is an annual inflation rate for a particular month, say March this year of two per cent, it would mean that the prices in general were 2 per cent higher this March, than in the same month last year. Therefore, a blend of usually purchased items costing GBP100 last March, would be costing GBP102 this March.

To get the right reading, prices are taken all over the country in many sectors like the supermarkets, big stores, travel and insurance firms, etc.

There are other issues which set the level of inflation in the economy, but the fundamental causes of inflation have to do with the extent of demand in the economy, and can be narrowed down to how much cash can be spent in relation to what can be produced.

When demand shoots up above what can normally be produced in normal circumstances, this upward pressure creates a rise in costs and prices. When the demand is down, this creates a downward pressure in costs and prices. To keep inflation controlled, it is required to keep a balance between the demand and output situation. When you have an excessive demand to the supply position, you have a formula to generate an inflation climate. This is the reason for stability as a goal.

Lowering interest rates may well see a rise in output, but only for a limited period. If both demand and output have been strongly increased and then suddenly fall, it is called boom and bust.

It is also useful to keep an eye on the extent of the employment and unemployment figures. These can indicate the size of the economic movement as well as the weight of labour demand, increases of wages, and of prices.

Do not forget to take notice of the (CPI) Consumer Price Index which is an important measure of inflation.

Watch also the balance of trade situation. A trade surplus is a positive balance of trade, namely the exports are bigger than the imports, whereas a trade deficit is a negative balance of trade with imports being larger than exports.

There are a number of other points that can be looked into of course, but the main ones are important to keep in mind at all times.

A number of people follow the charts, and keep an eye on what the position was year after year.

There is no known magic formula as such, to positively determine the direction of any currency pair, but being informed as much as possible, goes a long way to narrow the odds against you.

About the Author
Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.

Time to Evaluate the Possibility of a Change of Trend

Quite a number of shrewd American investors have been buying foreign stock these last couple of years, and made good returns in the process. It was a good decision, especially since the dollar started to fall and fall.

Of course, nothing lasts forever, and there is a whiff in the air of a change in the attitude towards the dollar. This is not without some reason albeit, that many think it is nonsensical to consider that the dollar should begin to appreciate.

The malaise with which USA has been dogged for some time now, is starting to reach the shores of other countries, notably Europe. It was inevitable that the problems of USA would affect others. The position of interest rates, falling house prices, the lot.

These consequences might be beneficial for the dollar, and those shrewd American investors may well decide to cut back on their investments abroad, and return to their currency with a profit while they can, because a rising dollar value would cut into their profit. This may be just one reason of several, to start a reversal trend.

For one thing, the British pound in particular, has been valued too highly, and whatever injections of support it has been getting, cannot last forever. Also, the high position of the euro is not easy to live with much longer.

It is well known that many factors have pointed to dollar weakness, and there are numerous people who will think the currency must weaken again in the long run.

It would certainly be nothing new, to see things turn out in a manner contrary to the book. The foreign currency game is prone to surprises. However, there are times when surprises, when put under the microscope, are in fact events which should have been seen as very real possibilities. Those, with that little extra foresight, may well be tempted and step in early by siding with the dollar.

So, is this the moment when the gamble might pay off and the dollar appreciation start?Everybody would like to know the definite answer to that, and the best way may be is to ask the question whether the dollar has reached the bottom.

This is the point where the gambling bit comes in. The answer is not too easy this time. The prize is certainly a big one, because if caught at the right time, the dollar might earn big money. However, if caught wrongly, how much more could it fall?

So the question is, are we facing the possibility of making a lot or losing a little. Put that way, it seems that the odds favour taking a chance with the dollar albeit, with your fingers firmly crossed.

If you are going to take a plunge, make sure you get the best attention and the best exchange rates. For this, make several calls to the various foreign currency exchange companies and select the one who offers the best deal. Almost without exception, they offer better exchange rates than the High street banks, and do not charge any extras.They will not run away with your money, as they would have nowhere to run without being instantly caught. Your money is sent to their bank and transmitted directly and at once, to your bank.

These days, movements of funds are carefully noted, because of money laundering risks, and all British companies dealing with any money transfers etc., must be licensed by H.M. Revenue and Customs, and display the Registration Number issued to them, which can be easily verified. Similarly, other countries have their own precautions in place.

About the Author
Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.