FX Trading Systems - Currency Trading For Beginners

FX Trading Systems - Currency Trading For Beginners

Finding a good FX trading system can be tricky at the best of times, even for the most gifted financial brain. You can spend days tracking the different trends and charts, have a whole array of FX trading software and still get it wrong. When trading foreign exchange you can predict the price movements down to minute percentage points of accuracy, only to have the price move in the complete opposite direction. This is not only heart breaking but it can also be very costly. Although FX Trading systems can provide a huge advantage on the market, there are many forex trading systems that simply don't allow for a big turn against their position. Managing risk is the most important aspect in any forex trading system. Get that right and you could have a very profitable FX Trading system.
The economy has been in a downward spiral, but this doesn't mean that you can't make money from forex trading. The market doesn't have to be going up to make a profit. In fact it can be easier to make money when the market is having some trouble. This generally brings more volatility into the markets and this in turn creates more opportunities. Especially if you have a good FX trading system in place.
FX Trading systems are often confusing and more, they contradict themselves. FX trading software for analysis of these charts can be a great way to let the computer do the hard work. Depending on the software it can turn an impossible job into a few easy decisions. Combine this with some good FX trading platforms and it can be lucrative. The secret is to stack the odds in your favor and that is exactly what a great forex trading system will do for you. It won't win every time but it should greatly increase your chances of success.
With currency trading systems the main consideration is timing. You must place your trades, no matter what instrument you are using, at the right time to gain the best price. Start to look into the future at events that may alter a currencies price eg. Rate rise etc. This can give you a huge advantage especially when you combine your knowledge with that of you forex trading software. Together you can create the perfect FX Trading systems.
Whenever dealing with a new financial instrument like forex you must know your limits and your margins. Never exceed your own limits and put yourself at the risk of financial ruin. The more work you put in the more chance you will have of succeeding. Do as many investment seminars and read any financial book that you can get your hands on. If you are dedicated then you can succeed, it really is as simple as that.
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Article Source: http://EzineArticles.com/?expert=Scott_Martin

The Right Way to Choose Forex Signal Software

The Right Way to Choose Forex Signal Software

By Kareechy Ken

When this is the case, you can end up feeling desperate. Don't go about things the wrong way. The right way to choose Forex signal software is to base your decision on past experience.
I'm not talking about your past experience, but the past experience of the ones running the signal software engine. If you opt for the cheapest software, there is a good chance that you won't do any better with the assistance of a signaler than you did on your own.
Make sure to shop around and find Forex Signal Software that has proven results. Don't just take the word of someone who has been paid to write a review of the software program or provider, either. Actually do some research. Find out who has the best reputation through viable clients. Search you blogs and websites for information regarding signalers that are proven to give decent returns and results.
When someone is doing well, with or without the help of signal software, they're usually quite happy to show you visible proof of their success. Make sure that you check out the signal software you're considering and make sure that there has been a steady stream of positive results before making the jump.
You also need to actually understand a little bit about the Forex before selecting the right Forex signal software. You can find programs that use aggressive trading techniques that may be a little risky but yield higher returns or you can select one that lets you have a little more say in the speed of trades.
There's no right or wrong way to go when it comes to this aspect of Forex software. It's up to you if you feel more comfortable putting your faith in a less aggressive software program that may yield lower returns on your trades. There's nothing wrong with using a not so aggressive program. You'll still see great strides over the way you were doing, making trades on your own.
It's just like most other aspects of trading, you need to be smart and do some research. Look before you leap, if you will. Don't forget, you can get ahead quickly with Forex software but there's a wrong way to go about doing things. Now you know the right way to choose forex signal software, so get started and make more money today.
I will tell you about how to choose forex software? and brief review by our expert ,see reliable list top 5 Forex Signal software at http://www.forexsignalsoftware.net.

Article Source: http://EzineArticles.com/?expert=Kareechy_Ken

Euro May Cash in on its Anti-Dollar Role Before the ECB Decision

Euro May Cash in on its Anti-Dollar Role Before the ECB Decision

Written by John Kicklighter, Currency Strategist
The dollar is near collapse; and its liquid counterparts stand to reap the benefits of the potential cross-currency winds. However, from a fundamental standpoint who stands to benefit the most? Those pairs that have pressed all the way to the edge of their recent historical highs against the ailing reserve currency (the British pound or Aussie dollar) are heavily dependent upon unpredictable risk appetite. The stalwart among the group is the euro.



Euro May Cash in on its Anti-Dollar Role Before the ECB Decision

Fundamental Forecast for Euro: Bullish

- German unemployment falls for the first time; but this improvement is a result of seasonal adjustments
- German consumer confidence rises for a third month
- What does the technical outlook for the euro look like?

The dollar is near collapse; and its liquid counterparts stand to reap the benefits of the potential cross-currency winds. However, from a fundamental standpoint who stands to benefit the most? Those pairs that have pressed all the way to the edge of their recent historical highs against the ailing reserve currency (the British pound or Aussie dollar) are heavily dependent upon unpredictable risk appetite. The stalwart among the group is the euro. Liquidity, a steady yield, bullish growth forecasts and a policy authority that is confident financial conditions are sound make for an appealing alternative for the most actively traded currency in the market. However, is the outlook truly as bright as the market is pricing in? More importantly; do speculators even care?

In trying to approach the first question, it is important to remember that valuing a currency is always done on a relative basis. For example, the euro could still rise against one of its major counterparts even when the economy is sinking as long as the Euro Zone is contracting at a slower pace. That being said, the objective answer is that the economy is not as stable as the strength of the currency would suggest. We will not see the first round of the German and Euro Zone second quarter GDP figures until August 13th. Nonetheless, expectations will readily discount each indicator that crosses the wires until then. This past week’s data further exposed a significant discrepancy between expectations and actual data. Surveys for consumer, business and economic sentiment all reported improvements in their July readings (though they were mostly still below the net expansion/contraction line). In contrast, the German unemployment rate has held at its highest level since December of 2007. Consumers are the foundation for economic health and will determine whether the Euro Zone will struggle to recovery or truly return to growth. Retail sales, factory orders and industrial production will all factor in to this outlook.

Each of these indicators will feed into the market’s unobserved and dynamic growth forecasting model; but the true benchmarks for economic activity will come from the ECB. The central bank is scheduled to announce rates on Thursday and both the market and economists suspect the benchmark will be left unchanged at 1.00 percent. The real value from the event comes from the statement that accompanies the announcement and President Jean Claude Trichet’s forum with the press shortly after the official release. Political pressure has intensified from some of the region’s largest economies to reign in stimulus to avoid stoking inflation. What’s more, the RBA has set a precedence in suggesting it was taking a cautious, hawkish turn; and the ECB no longer carries the burden to be the first. These factors aside though, the economy is certainly not stable enough to take such a passive (much less hawkish) approach. There are still economies suffering severe recessions; and even those that are considered relatively strong are still contraction. Should the group remove the safety net too soon, they run the risk of exacerbating a pull back that develops later.

Another generally accepted truism that has worked in the euro’s favor is that the region has remained otherwise financial sound while the UK and US were nearing structural collapse. However, many of the biggest risks to the broader markets going forward come from the Euro Zone. A premature draining of financial aid threatens to choke the economy, regional banks have yet to write off their losses (they will) and Eastern Europe threatens to default on its loans to the EZ in masse. All of these are considerations to keep in mind. – JK



Written by: John Kicklighter, Currency Strategist for DailyFX.com
Questions? Comments? Send them to John at jkicklighter@dailyfx.com

Forex Strategy Outlook: US Dollar Breakout Critical to Trend Systems

Forex Strategy Outlook: US Dollar Breakout Critical to Trend Systems

Written by David Rodriguez, Quantitative Strategist

Our forex trading strategies have seen major gains on the US Dollar’s breakdown against key currencies, as the trend-following systems remain heavily short the USD through time of writing. It had increasingly become a battle of patience for breakout traders who have waited for the US currency to break below key levels. Now that the Greenback has finally broken, the question becomes whether we can see sustained directional moves in the Euro/US Dollar and other important pairs. A relatively muted response from volatility expectations limits optimism for continued trends.

We were fortunate to remain biased towards 'Momentum' trading signals through the past week of trade, as currency pairs have finally seen major sustained price moves on the US Dollar and Japanese Yen breakdown. It was a gutsy decision as the USD was near major support, and it is a similarly gutsy decision to remain biased towards Momentum systems as we are at prime risk for reversal. Suffice it to say, we hope to have similar fortune in the week ahead.



Momentum2 and Breakout2 have largely underperformed through the past month or so of trading, but the very recent USD and JPY breakdowns have left both systems with sizeable floating profits. We remain similarly bullish the strategies through the coming week's trade, but we are wary of risks that FX markets will see major retracements on sizeable moves. There is obviously little way to know for sure whether such pullbacks may occur, but we will keep risk relatively tight on any Momentum or Breakout trading positions.



DailyFX+ Market Conditions Outlook


NOTE: Data has once again been changed. Due to the ineffectiveness of the 30-day horizon, we are returning to the original 90-day time horizon.

Definitions
Volatility Percentile – The higher the number, the more likely we are to see strong movements in price. This number tells us where current implied volatility levels stand in relation to the past 90 days of trading. We have found that implied volatilities tend to remain very high or very low for extended periods of time. As such, it is helpful to know where the current implied volatility level stands in relation to its medium-term range.

Trend – This indicator measures trend intensity by telling us where price stands in relation to its 90 trading-day range. A very low number tells us that price is currently at or near monthly lows, while a higher number tells us that we are near the highs. A value at or near 50 percent tells us that we are at the middle of the currency pair’s monthly range.

Range High – 90-day closing high.

Range Low – 90-day closing low.

Last – Current market price.

Strategy – Based on the above criteria, we assign the more likely profitable strategy for any given currency pair. A highly volatile currency pair (Volatility Percentile very high) suggests that we should look to use Breakout strategies. More moderate volatility levels and strong Trend values make Momentum trades more attractive, while the lowest Vol Percentile and Trend indicator figures make Range Trading the more attractive strategy.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.

NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES IS MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION.
OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. The FXCM group will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance contained in the trading signals, or in any accompanying chart analyses.