The markets have been crazy lately. It’s hard to believe the DOW was over 14,000 at one point, but now it’s dropping hard and fast! But how are we able to tell which direction the market is going?
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Substantial moves like the ones that we have recently witnessed present opportunities to succeed or fail in the markets. Traders who stayed on the correct side of the trend were rewarded substantially.

Serious questions effecting your portfolio still remain:

- Have we seen the Indexes bottom or top?
- Is a reversal in the near future?
- Is it too late to go short?

Stay on the correct side of the market. Let our Trade Triangle technology work for you. It’s free, It’s informative, It’s on the money.

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The best way to forecast forex markets is to look at the markets' internal structure.

The U.S. dollar rallied strongly against the euro in intraday trading today (August 14), pushing the exchange rate down to $1.4780 – the level it hasn't seen since February. What's behind such a persistent show of strength on the dollar's part?

As usual, it depends on whom you ask. The mainstream media forex analysts blamed the August 14 EURUSD decline on the fact that "crude oil fell and a report showed Europe's economy contracted for the first time since the 15-nation currency was introduced almost a decade ago." (Bloomberg)

If that's true, that means that in order to catch Thursday's drop in the EURUSD, you needed to know ahead of time what oil was going to do that day, and also what that European report was going to say. So, instead of trying to predict one market – the EURUSD – you now have to watch, and correctly forecast, three.

And even then you weren't guaranteed success. The dollar could have easily lost on Thursday, after the news. Can you imagine a headline saying, "Falling oil prices send the U.S. dollar down, indicating slowing U.S. consumer demand and continued economic weakness"? And, "The U.S. dollar slides as a key European report indicates the EU's economy is still growing faster that the U.S."?

That's the beauty of fundamentally-based explanations: You can spin them any way you want, using the same factors to justify both the market's rallies and declines.

But there is a way to simplify your forecasting process. In Jack D. Schwager's excellent “Market Wizards,” one famous trader summarized his success this way: “Listen to the market, it will tell you everything you need to know.” In other words, don’t let the economic data confuse you. Watch market sentiment; track momentum; look for repeating patterns in the charts, etc.

That's exactly the process Elliott Wave International's Jim Martens, the firm's Senior Currency Strategist and editor of Currency Specialty Service, used when he posted this intraday forecast for subscribers on the morning of Thursday, August 14 – about an hour before the EURUSD began to fall in earnest:
By Vadim Pokhlebkin
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24 hours a day, EWI's Currency Specialty Service brings you forecasts of all major forex markets. Details.

Make money trading currencies on-line. Currencies are the most actively, heavily traded financial instruments in the world. The liquidity of the forex market directly translates into several critical benefits for traders that can gain an understanding. There are companies and trading schools that you can find on the Internet that will train you for a fee or others that you can sign up with and become a member and many will try and show you the ropes. Some companies offer free demo’s to help train you. Its like using play money until you get the hang of it. All anyone really needs is a computer. So you should be able to operate with a very low overhead. With excess to a phone line or an internet wireless computer card you should be all set. And you can start with very little cash. I know people who have started in this game with as little as $300.00. And I’m sure there is still others who have started with even less. The public has just in the last few years been able to participate in this trade. It wasn’t very long ago this turf was exclusively for governments and large international and prime bankers.

Forex trading generates around $1.9 trillion per day in volume, making it by far the world's largest, most liquid market. Serious traders know that the futures and equities markets provide only limited liquidity when compared with the spot currency market.

In addition, though there are obviously many currencies around the globe, roughly 80% of all daily trading is concentrated in the major G-7 currencies. By contrast, the futures market is fragmented among hundreds of types of commodities listed at dozens of exchanges, and equities market volume is spread across some tens of thousands of listed stocks.

Order Execution

The deep liquidity of the forex market ensures that bid/ask spreads are typically very tight, and the market can absorb large trades quickly and easily. Learn More…
24-Hour Trading no matter where you are located
You get consistently tight bid/ask spreads, day or night, because the currency market offers around-the-clock liquidity. As a trader, this allows you to react to economic and political events immediately. Learn More…

Risk Management

The forex market's size and nearly non-stop activity means that it tends to trade in a more orderly fashion than futures markets. Dangerous trading gaps and limit moves are all but eliminated. You'll ordinarily be able to get in and out of positions with ease.

No Market Manipulation

Thin stock and futures markets can be pushed up or down by specialists, market makers, commercials, and locals. Given the sheer size and depth of the spot FX market, however, real buying/selling by banks and institutions is required to move prices. Any attempt to manipulate the forex market usually is futile.

Trade FX and Lower Your Transaction Costs

Every trader should know that transaction costs can reduce profits or exaggerate losses. Due to the decentralized, electronic nature of the FX market, transaction costs are far less than the costs associated with trading either stocks or futures.

No Exchange Fees

The absence of any centralized exchange, such as the NYSE or the CME, means that there are no exchange fees with FX. Whereas equity and futures markets take small pieces of each transaction, FX is an over-the-counter market, which means that participants deal directly with one another, typically via the Internet.

No Commissions

FX costs are further reduced by the efficiencies created by a purely electronic marketplace that allows clients to deal directly with other traders or a dealer, thereby eliminating middlemen, brokers, commissions, and ticket charges. There are no commissions charged when you trade FX.

High Transparency

Every financial market has a spread between the bid price and the offer price. In futures and option markets, current bids and offers often aren't displayed, so the real cost of the trade is hidden. By contrast, in the FX market, you can always see current bids and offers, so you'll always know the true cost of the trade.

Tight Bid/Ask Spreads

Because the FX market is global, continuous, and always liquid, traders benefit from tight, competitive pricing both day and night, making this an excellent market choice for aggressive short-term traders and longer-term position traders alike.

Free Streaming Quotes

Because FX is a decentralized marketplace, real-time, streaming prices are absolutely free. Real-time, streaming futures data, in particular, has always been exorbitantly priced, and as more futures exchanges convert from membership organizations to for-profit public enterprises, it is reasonable to assume that such costs may increase. This trend is likely to make the FX market's cost advantage even more pronounced.

24-Hour Currency Trading

Currency trading essentially follows the sun around the world, so you can buy and sell currencies 24 hours per day. If there's a market-moving event, day or night, you can take advantage of it.

- Somewhere around the world, there's always a major financial center open where banks, hedge funds, international corporations, and individual speculators are trading currencies. If you're an event-driven trader, the 24-hour nature of the currency market allows you to react to virtually any important development, regardless of when it occurs.

- By contrast, the centralized exchanges in the stock and futures markets effectively close at the end of each business day, and after-hours market liquidity can be thin and occasionally treacherous.

- Nearly continuous trading and deep liquidity mean there are fewer dangerous gaps in the currency market, so you won't have to endure the unfortunate surprise of a market that closes one day and reopens the next at a drastically different price.

- Stock and futures traders who carry positions overnight are exposed to the very real risk that positions may not be able to be immediately liquidated, should that become necessary or desirable. When trading resumes the following day, prices may have moved substantially from the previous afternoon's close.

Major Financial Center Chicago Time GMT

Tokyo Open 6:00 PM 00:00

Tokyo Close 3:00 AM 09:00

London Open 2:00 AM 08:00

London Close 11:00 AM 17:00

New York Open 7:00 AM 13:00

New York Close 4:00 PM 22:00

Forex Market Overview

Many active traders have come to love forex because of its strong advantages and exciting opportunities. Not sure how the forex market works? Here's a quick overview to help you get started.

Factors Effecting the Market

Currency prices are affected by a variety of economic and political conditions, such as interest rates, inflation, and political stability. Moreover, the central banks of various governments occasionally intervene in the forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely, by buying in order to raise the price. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and depth of the forex market makes it practically impossible for any single market participant to "drive" the market in one direction for any length of time.

Economic Growth

Investors want to be sure that they are investing in a solid economy that is achieving steady growth. Currency traders looking to assess the economic growth of a country will look at unemployment, trade, and GDP data.

Interest Rates

Money tends to follow interest rates. If interest rates go up, money will flow into the country from all over the world as investors seek to capitalize on higher returns. To determine whether interest rates will rise or fall, investors pay attention to economic inflation indicators, as well as speeches by influential figures. Generally, the timing of interest rate moves is known in advance. They take place after regularly scheduled meetings by the Bank of England, The U.S. Federal Reserve, European Central Bank, Bank of Japan, and other central banks.

Political Stability

Election turmoil, changes of government, high unemployment and international conflict all make investors cautious to put their money in a given country. Investors will watch for major news that comes out of a country.

Forex is a Decentralized, OTC Market

The forex market, unlike other financial markets, has no physical location or central exchange. Rather, it's an over-the-counter (OTC) or "Interbank" market, due to the fact that participants deal directly with one another via the telephone or an electronic network. The forex market is unique in that there's live, active, continuous trading 24 hours per day for most of the week. Somewhere around the world, there's always a major financial center open where banks, hedge funds, international corporations, and individual speculators are trading currencies. Essentially, foreign exchange trading follows the sun around the world, allowing traders to buy and sell currencies whenever it's convenient, or whenever the need arises. The world's currencies are on a floating exchange rate and are always traded in pairs, such as Euro/Dollar or Dollar/Yen. Forex transactions always involve the simultaneous purchase of one currency and sale of another – in other words, in every open position, an investor is long one currency and short the other.
FX traders express a market position in terms of the first currency in the pair. For example, a trader who has bought Dollars and sold Yen (USD/JPY) at 103.99 is considered to be "long" the USD/JPY (pronounced "Dollar/Yen"). Quoting convention is to display one unit of the first currency in the pair expressed in terms of the second currency in the pair. By way of example, if the USD/JPY pair is quoted as 1.6433, this means that $1 is the equivalent of 1.6433 Japanese Yen.

Regulation of the Forex Market

The Commodity Futures Modernization Act of 2000 (CFMA) placed responsibility for overseeing and regulating the foreign exchange market with the Commodity Futures Trading Commission (CFTC). Generally, if a brokerage company offers over-the-counter (OTC) foreign exchange trading to retail customers, it must be registered as a Futures Commission Merchant (FCM) is subject to strict capital requirements.

So good luck and have fun and hopefully make some money.

http://www.lagunajournal.com

Michael Webster
301 Forest Ave., Laguna Beach, CA 92651. Ph. (949) 949-7121. Fx. (949) 583-0154. e-mail mvwsr@aol.com http://www.michaelwebster.net Mr. Webster is a United States Citizen of Native American Heritage.

America's leading authority on Venture Capital/Equity Funding, Trustee on some of the nations largest trade Union funds. Labor Law, Teamster Union Business Agent, General Organizer, Union Rank ñ - File Member Representative, Grievances, NLRB Union Representative, Union Contract Negotiator, Workers Compensation Appeals Board Hearing Representative and a noted Author, Lecturer, Educator, Emergency Manager, Counter-Terrorist Specialist and Business Consultant. Michael Webster is a world-renowned expert on global economics, financing, emergency management, preparedness and terrorism. He is the author of Venture Capital, the Christian Covenant the RedRoad, the LemonFast. And the United States Civil Defense Emergency Training Manual. Mr. Webster has Collaborated on a Community Emergency Response Team (CERT) course having over 300 plus pages

We all know that it's difficult to predict where any currency exchange is going, not to mention the Euro Vs. Us Dollars rate since these two currencies represent the 2 biggest economic blocks in the world. However, I will try simply because I believe that there's a lot of money to be made, and lose in trading of this forex pair. Indeed, I believe that some people are going to lose their shirts in the near future.
Anyone who has followed the Forex market in the past few weeks has noticed that the us dollar has plummeted versus the Euro. In fact, the Euro has recently broken records high, and the dollar is crashing against all major currencies in the world. This is due to the financial crisis which the US is facing and which leaves a great deal of uncertainty over the markets.
What will happen between the Euro and the American Dollar?
In the past week I've heard many people say that the worst has passed, and that the dollar will now strengthen gradually. I believe this is false and that these people will lose a lot of money. As far as I can tell, the economic indicators support the continuing strengthening of the euro versus the dollar:
The European economy has been least affected by the current crisis in the US financial sector
The European interest is much higher than the American, and while the Fed will likely continue to lower interest rates in the near future, the European central bank shows no signs of following suit.
We have likely not seen the last repercussion of the financial crisis in America
All of these things say one thing: The euro will become stronger Vs. the US dollar, and not the other way around. I would hold a position on the Euro. It will likely continue to make profit in months to come.
By John J. Drummond

There are many forex trading strategies but most come up very short when it comes to really testing the results. In fact, you would be hard pressed to find one that can make you 5 to ten pips a day consistently. That is until now. Most forex traders try to go for the home run and lose all their trading capital in a very short period of time. I believe in the "hit a bunch of singles theory." Find out how to make small but very consistent profits and you will get rich in a relatively short period of time. Trust me, that is how you do it. In reality, technical analysis, if used properly is the best way to find opportunity when trading in the currency market. So, the question comes up: How do you find the best forex trading indicator? Let's take a further look into this matter:
There is a lot of talk about technical analysis and which trading indicator is best but the answer simply is NONE. You need more than one indicator to spot an opportunity. In actuality, the best way to make consistent profits is to trade with two indicators to confirm a trading signal generated form reliable forex trading software. It may sounds like overkill but trust me, this is the way to do it. I personally recommend using the Relative Strength Indicator (RSI) and the 200 day moving average. You should make sure you use these two indicators to confirm a move generated from a reliable software product. If you are interested in a quality software program you may want to check out a review on the three most popular software programs. I have provided a link below. Good luck with forex trading ahead.By George Knoechel

Now, let me introduce you to another trading technique of making it big in the Forex market and walk away with mega profits within the shortest trading time. Believe me that I have tested this technique and also want to let you know that 75% traders in Nigeria are scalpers. I really celebrated the New Year thanking God for giving me the courage to develop more on scalping as a trading strategy.
What is Scalping? Many traders don't really understand that simple word. Some even pronounced it wrongly, and if you don't understand the meaning now, you can not benefit from the mega returns that the strategy is generating in the world's largest financial market.
Scalping is a focused technique that involves making a minuscule trade to generate profit within a short period of time. This method of trading the FX market is of high probability trades with extremely small risk stops and predefined profit objectives, it is also a means of taking a million trades to make a million dollars.
There are different types of traders; "Position Traders" "Intraday Traders" and "Scalpers" A position trader could engage in trades that are intended to last for multiple days or months with huge pips target of hundreds to thousands. An Intraday trade could typically engages in trades that might last for less than a day aiming for targets of 20 to 100pips while A Scalper engages in trades that might last for few minutes and the minimum target could be 5+ pips. Pick your calculator now and calculate 5pips on a 2.00 standard lots of 5 trades per day for 20 trading days (5pips x 5 trades x 20 dollars x 20 trading days = $10,000 monthly) If all the scalping techniques are adhered to. Are you saying it's not possible! Just demo trade this for a month and see what I am saying.
A scalper normally trade higher lots size or volume depending on your account size and risk acceptance. For the fact that this technique requires a maximum Stop Loss of 20pips, you must also maintain a good equity management principle. If you could just sincerely follow the rules that I will be teaching you on this technique, you could rake in more profits to your bank account without stress compared to day or position traders.
Let me sound this warning that if your account can not accommodate the risk involved scalping with higher lots or contract value, please don't trade higher lots. Simple! Because scalping is more emotional and advanced in nature in the aspect of making a very quick decision and trade execution. Don't trade without setting your stop loss when scalping. Trading without stop loss could wipe off your account with this strategy. P-L-E-A-S-E, just follow the simple trading rules that I will be sharing with you.
Scalpers often engage in multiple trades per day. Some traders execute several trades and make profits with ease. Don't worry, I will teach you the technical know-how of scalping the market. Scalps are executed in the direction of the current trend of the Forex market. You can't run away from the fact that the "trend is your friend" if you don't know the trend of the market, don't place any order.
You could also take larger profits as this lesson is getting more technical by applying trailing stop. What is Trailing Stop? Stop Loss is intended for reducing losses where the symbol or currency pair price moves in an unprofitable direction. If the position becomes profitable, stop loss can be manually shifted to a break-even level. To automate this process, Trailing Stop was created. This tool is especially useful when price changes strongly in the same direction or when it is impossible to watch the market continuously for some reason.
The beauty of scalping is that, it allows traders to trade even when other techniques would make you sit with your PC for long without trading. Scalping is best used in conjunction with or as a supplement to other trading techniques - so keep trading your normal strategy that you are used to and add scalping to your trading toolbox.
TYPES OF SCALPING
There are three methods of scalping the Forex market which I will be teaching in this article: You could apply the EMA 4/12/63 to 15 minutes chart of your trading platform and scalp with the strategy. Alternatively, apply the one I will be sharing basically for this technique.
1. Time-sensitive trades: This comes in 2 forms: Firstly, in opening range breakouts, where a quick scalp is taken minutes before the open, in the direction of any market thrust. I revealed an important secret in the previous edition of SDE on the best trading time for the EMA 4/12/63. Meanwhile, if care is not taken, the bull back preceding the breakout of the 7:45am Nigeria time might strike your stop loss. But you can perfectly study the market; and scalp to make profits before the main breakout. And I will advise you always use your Bollinger Bands, preferably on a separate 15mins chart.
Secondly, trading to capitalize on the regular market turnaround time of the New York opening session. Infact, scalping is the best strategy to apply because something must happen. Keep your eyes also on 15 to 30 minutes to the FA release. I bet you that you would have made your target before the news. Then if the news is worth trading, trade and make more profits. Always tie this law on your neck and do not let it depart from you "make 20 or 30pips per day and every other pips shall be added unto thee"
2. Countertrend trades: Scalping when the market is silent or consolidating during the trading day. It could be the Asia session too.
3. Trend continuation trades: These methods focus on entering the market in the direction of a trend AFTER the trend has gone underway. They are also classified as retracement trades.
One of the most liquid, active and electronically accessible market is Online Forex Trading and I feel the scalping method represents the best known chances for picking consistent profits as a trader/scalper.
Oh! Getting interesting? Then I expect you to contribute, so that I can show you more ways of scalping the market soon.
Scalping is a very good trading strategy but I will like to encourage you that this strategy is not for all traders because of the emotion and risk involved. It is an advanced trading method that needs to be mastered before committing your live account. The scalping trading strategy that I will be sharing involves simple indicators; MACD and MOVING AVARAGE(s).
The MACD is an acronym for Moving Average Convergence/Divergence. It is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD default is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average, called the signal or trigger line is plotted on top of the MACD to show buy/sell opportunities.
MACD's can be used as an oscillator, does that sound too technical? No! Oscillators indicates that the asset will revert back to its mean valuation OR a Momentum indicator; indicates that the trend is strong and will continue. Parameters: The MACD line is the difference between the 12 and 26 day EMA. The signal line is the 9 day EMA of the MACD. Visually, the MACD consists of three elements, like the MACD, it is a line plotted on the bottom of the chart. The MACD line. This is simply the difference between the 12 and 26 day EMA. It is a line plotted on the chart. The Histogram. The MACD histogram is simply a bar chart located at the bottom/top of the chart, where the MACD and signal lines are plotted. The histogram is simply a visual representation of the difference between the MACD and the signal line. The "zero" point of the histogram - meaning the point where the bars cross above and below - is referred to as the centerline.
A Trade Signal is received when the MACD crosses the signal line. Traders can enter positions following the direction of the MACD Overbought/Oversold. No specific numbers indicate whether it is overbought or oversold, but if it is relatively far from its mean compared to its recent history, this may suggest that it is due for a decline. Divergence occurs when the pair makes new highs/lows but the MACD does not, this suggests divergence, and that the trend may in fact be weakening with a reversal in store. The MACD crossover is a straight-forward indicator that provides precise timing for entry points. The one drawback of this indicator is that it is sometimes too slow to provide a signal. Sometimes it signals an entry several candles after the ideal entry point. The price has already moved far enough that the trade no longer has a favorable risk: reward ratio. Always consider support/resistance when entering a trade regardless of the crossovers.
MACD is truly a trend following indicator - sacrificing early signals in exchange for keeping you on the right side of the market. When a significant trend developed, the MACD would alert you on how to capture majority of the move. Moreover, MACD proves most effective in wide-swinging trading markets and there are three popular ways to use the MACD: Crossovers, Overbought/Oversold Conditions, and Divergences.
CROSSOVERS: The basic MACD trading rule is to sell when the MACD falls below its signal line. While a buy signal occurs when the MACD rises above its signal line. It is also popular to buy or sell when the MACD goes above or below zero line.
OVERBOUGHT OR OVERSOLD CONDITIONS: The MACD is also useful as an overbought or oversold indicator. When the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions exist vary from security to security.
DIVERGENCES: This is an indication that an end to the current trend may soon change when the MACD diverges from the security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought or oversold areas.
Now, for the Scalping Trading Strategy, you will modify the MACD default by 2 deviations. And you must follow the trading rule strictly, work on your trading plan and target per trade. Preferably, 5 to 10pips is attainable with this system but once you make your target, PLEASE close your trading platform to avoid over trading, agreed and losses. Does it sound funny? You can not exempt yourself from the fact that emotions can't rule your trading strategy and plan when you over trade.
To set up MACD for scalping, subtract 2 from the default parameters i.e. Fast EMA = 12 to 10, Slow EMA = 26 to 24, MACD SMA = 9 to 7, Apply to Close. Select the Color Tab and change the color to your favorite, you could also increase the line style. Click the Levels Tab - Add the Zero line and also change the color. You could also double-click the Description space opposite the zero value and type "Center Signal" and increase the line style too. Under the Visualization Tab, deselect the "All Timeframes" and select M15 only because this trading strategy work best on 15 minutes chart and you could also try it on 5 minutes. But I recommend 15 minutes because of how emotional and noisy the 5 minutes chart is.
Add EMA 4 (yellow), LMA 10 (DarkTurquoise), LMA 120 (white), LMA 40 - 90 (red) to your trading chart.
HOW TO INTERPRET THE MOVING AVERAGES: Exponential Moving Average (EMA) 4 is the fast EMA, Linear Weighted Moving Average (LMA) 10 is the slow LMA, LMA 120 is the Trend line while LMA 40 to 90 signifies how stronger or weaker the trend of the market is. Let me quickly state here that; do not trade when the market is trendless/sideways or consolidating because the opportunity of trading is always indecisive. I believe you know that there are three types of market trend; and you should not trade against the trend because the probability of trading along the trend is more than trading against it.
BASIC SYSTEM RULES:
Buy Signal
Notice the confirming indicators: EMA 4 crossed LMA 10 upward on up trend is advisable and realistic of achieving your target daily i.e. both moving averages crossed LMA 120, then set your Stop Loss 10pips below the LMA 120 or look for the swing low. Also confirm you signal when the MACD histogram is above the 0 line; signaling upward momentum.
Sell Signal
The chart is an example of SELL signal. Notice how MACD Histogram went from positive to negative, and how the moving averages confirmed the sell signal. The EMA 4 crossed LMA 10 down. Set your Stop Loss 10pips above the LMA 120.
When LMA 40 - 90 are above the LMA 120, it implies that the market is in up trend while below LMA 120 signifies down trend. You should also watch for overbought and over sold. Do not join the traders with mentality of "it will soon reverse" at losses. Get the trend as early as possible and follow the trend to maximize your profits.
Using 15 minutes chart, 10 to 20 pips is a realistic initial profit target, especially if you are trading EUR/USD, GBP/USD, USD/JPY. Even the other major currency pairs should yield this much on a properly measured signal.
TRADING PERIOD FOR THIS STRATEGY: Always watch out for good trading opportunity between 7:45 am NG time to 11:45 am for morning trading session, while 1.00 pm NG time to 3.45 pm is advisable for afternoon session.
TARGET: The purpose of scalping is making small profits while exposing a trading account to a very limited risk, which is due to a quick open/close trading method. I will advise you go for 10 pips plus spread per trade and demo trade this strategy for a month before going live with it. You could even go for 5 pips if you notice that the market is almost at it peak.
HIDDEN SECRETS: An additional advantage for traders technically is when there is no major news affecting the market. You will always see a clear trend for the day. When trading using technical indicators, make sure you know when the news is going to be released so that you can position yourself. i.e. close your trade 10 to 15 minutes before the (FA) news. Then 15 minutes after the (FA) news, you could trade.
You are already at the top!
Taiwo Balogun
http://www.fxlebconcepts.com

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?
This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.
Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.
Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments. The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.
Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.
Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.
Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.
Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.
No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.
Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.
The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.
Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.
Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.
Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.
Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.
Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.
Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.
Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.
Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.
The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.
Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.
Focus - Fantasising about possible profits and then "spending" them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.
Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.
Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.
Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.
The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.
Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.
Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.
Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.
Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.
Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.
Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.
Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.
Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).
One cross is all that counts - EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EURUSD looks good to you, then just buy EURUSD.
Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.
Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.
Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.By John Gaines
John GainesA veteran of online trading, John Gaines offers the financial services industry his perspectives and expertise on a variety of trading systems and financial instruments, ...

How can you ensure you are selecting a forex trading platform that can best meet your needs, bearing in mind that an unsuitable trading platform can be disastrous to the way you trade and in fact to the eventual trading outcome- whether you are profitable or losing money in the trades?
Irregardless of whether you are just beginning to trade and are looking around for a suitable forex trading platform, or whether you are already trading, but would like to review the suitability of the trading platform, here are 6 selection criteria that can be used to determine the suitability of the forex trading platform.
1. Timeliness - Is the forex trading platform a high-edge system that employs the established but highly sophisticated technologies in order to provide you the real time, up-to-date quotes? This is very important, as a real time streaming quote platform will allow you to check your account and positions in real time, and more importantly 24 hours a day, as forex trading never ceases. With real-time information via the trading platform, you as a trader can be in full control of your funds whenever you wish.
Some brokers also slow the execution of the orders. This is really a big issue as this will impact negatively on your trades because the rate of the currency pair would change during this period of time, causing you to enter the market at a different rate than the rate you wanted.
2.Easy to Use software- Preferably, no software download. Look for a platform that enables users to start deals immediately, without the need to download proprietary software, or to spend weeks to learn how to use an unwieldly possibly outdated system.You should not have to install any software on your own computer, and you should be able to log in from any computer that has an internet connection. There are also desktop solutions or trading platforms, but unless they allow you real time information and the ability to be in control of your trades, they are not desirable.3.Trading Rates - Some preferred trading platforms have a freeze and trade system involving a "freeze-the-rate you see" for buying and selling for a few seconds, irrespective of rates movement. This means that the rate you see and freeze is the rate you get, and there is no lag that can cause you to lose out due to fluctuations and lapse of even a few seconds.
4.Easy Money Deposits - Are there easy mechanisms for payment of money deposits into your account and are these immediately reflected in your trading account? Some preferred trading platforms allow you the possibility to make money deposits for margins and pay premiums using credit card, so that you are not hindered from making physical deposits, or have to attend to make deposits at your local bank.This is a real time saver and allows you to trade immediately without delay after a deposit or payment has been made.
5. Competitive Spreads: Currencies, unlike futures and stocks, are not traded through a central exchange. Thus, the spread can be different depending on the broker. Some brokers adopt a variable spread, which might appear to be nice and small when the market is quiet, but when things get busy they can widen the spread which means the market must move more in your favor before you start to make a profit.This makes it harder for you to be in profits. So always check this out before selecting such a trading platform and broker. Fixed spreads built into the trading platform is good for you especially if you are using stop loss in your trading strategy because if the broker changes the spread according to prevailing market conditions, you may find your trades hitting their stop levels where they should not!
6. Technical Support- The forex market is a 24 hours market, and your broker should provide 24 hours support for the use of their trading platform. Ask questions about their support because some brokers may not give equal support to retail clients as compared to institutional clients.
As you go over this checklist of criteria, always bear in mind the broker and the trading platform should assist you to eliminate or reduce risk of trading while allowing you to maintain control over your funds in real time. Spend time to check your trading platform to be used, and you will not regret it later.
About the Author
Need help to reverse those difficult losses that are bleeding your trading account dry? Discover powerful tips, trading techniques and lesser known secrets - including the best forex trading platform - from the author's blog http://1forex-trading.blogspot.com

Home-based businesses are gradually gaining popularity and the best reasons behind it are simple: you can set your own hours, do what you love and still earn a substantial income. Among the many home-based businesses today, the majority are focusing on online business activity. The most popular are affiliate marketing, IT and web services, selling on ebay, and blogging. While these activities require a lot of time and effort, there's one excellent home-based business that many seem to shun because it's commonly believed to involve a lot of mathematical skills. This amazingly profitable business is forex trading.
Forex trading is the specialised field in which you buy one currency and sell another. Whether it's referred to as forex, foreign exchange or just FX, it all means the same thing. The global foreign exchange market is worth over 3 trillion US dollars and is extremely large in comparison to the combined world markets of stocks and bond trading. The forex trading market is based on speculation, rather than actual commercial requirements.
The huge growth in today's foreign exchange trade is because of the internet. With the internet's growth, instant communication has reached new levels and this is very helpful for the forex trader. Exchanging currency values depend a lot on the 'spot market', which means you fix a value immediately and arrange for the trade then and there, based on the current market potential. With instant, real-time communication, online trading has become the next generation standards of forex trading. This is, perhaps, the most sound reason for starting a home-based business in forex trading.
Since online trading is perfectly acceptable and all current traders favour immediate trading activity, your forex trading home-based business will flourish quickly. If you are unfamiliar with forex trading, there are many free online tutorials to teach you the basics. Once you've mastered the techniques and learnt all the nooks and crannies, you'll be unstoppable. Also, there are many robot trading software applications, which take on the hard work on your behalf. These online trading software monitor the market and does analytical speculations for you, saving you lots of time and effort. As a home-based business, online trading is a profitable market and combining this with the immense potential of forex trading gives you a limitless earning possibility.
There are three excellent reasons to consider forex trading as your home-based business.
Convenience - There's great convenience in the forex trading business, because you can set your own times for sitting down and conducting a few trades. As mentioned earlier, online trading robot software can take care of all the monitoring and speculating on your behalf. The main operative points are in New York, London, Frankfurt, Syndey and Tokyo, which means the market is open 24-hours.
High Liquidity - The currency trading market is not governed by a central exchange, unlike stock trading. So, forex trading is considered as an interbank market, which simply means the trading is done within a few hours and is based on over-the-counter rate tendencies.
Low Operative Costs - Probably the best reason to make forex trading your home-bases business, it costs very little to make a single transaction.By Andre Maier