A Different Type of Moving Average Cross by Mark Mc Rae

Virtually every trader has dabbled with or experimented with some sort of moving average.

What I want to introduce you to in this lesson is a different sort of moving average cross method, which I have found to be very good at identifying short term trend changes.

As we know a moving average is normally plotted using the close of a bar e.g. if you were plotting a 3 period moving average, then you would add the last three closes and divide the total by three to get a simple moving average.

This is where I want you to think a little differently. I have always been an advocate of taking traditional thinking and changing it around. What if you used the open instead of the close? What if you used the close of one period of a moving average and the open of another?

First, most charting packages will allow you to use the open, high, low or close to plot a moving average.

In the example below of the daily Dow Jones, I have used a 5 period exponential moving average of the close and a 6 period exponential moving average of the open. As you can see it catches the short term trend changes really nicely.

In the next example of the 1 hour EUR/USD, you can see that the close/open combination worked really well. Of course you will go through periods of consolidation with any market and any moving average method you use will be whipsawed. To get around this you need some sort of filter or approach that helps you keep out of the low probability trades.

You could use ADX, Stochastic or MACD to help filter the noise but I also like to add a time frame.

In the next example of the 4 hour GBP/USD you can see that on the 24th September 04 at 4:00 there was a cross of the 5 period exponential moving average of the close above the 6 period exponential moving average of the open. This signal has remained in place until today as I write on the 27th September.

Although there was a signal on the 4 hour, to help identify even better entry points you can drop down a few time frames to the 30 minute chart. As you can see from the 30 minute chart there have been quite a few crosses of the 5 period exponential moving of the close above or below the 6 period exponential moving average of the open.

There are lots of ways to trade this but a neat little trick is to wait for the signal on a higher time frame and then drop down a few time frames and wait for a pullback. The first signal after the pullback on the lower time frame is normally a pretty good entry point e.g.

If there were a cross up on the large time frame then drop down to a lower time frame and wait for the market to retrace and then give another buy signal (cross up). The opposite is true for short signals.

Once you get the signal on the shorter time frame depending on where support is you can usually place your first stop loss under the nearest support area (valley).

If the market begins to make progress you can move your stop so that it trails the market by moving your stop to just under the most recent support area.

In this lesson I have use an exponential moving average but experiment with different types of average such as weighted, smoothed or simple. You can also experiment with different lengths of moving average.

Good Trading

Best Regards
Irfan Chouhdry

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Forex 1-2-3 Method by Mark Mc Rae

This particular technique has been around for a long time and I first saw it used in the futures market.

Since then I have seen traders using it on just about every market and when applied well, can give amazingly accurate entry levels.

Lets first start with the basic concept. During the course of any trend, either up or down, the market will form little peaks and valleys. see the chart below:

The problem is, how do you know when to enter the market and where do you get out. This is where the 1-2-3 method comes in. First let's look at a typical 1-2-3 set up:

Nice and simple, but it still doesn't tell us if we should take the trade. For this we add an indictor. You could use just about any indictor with this method but my preferred indictor is MACD with the standard settings of 12,26,9. With the indictor added, it now looks like this:

Now here is where it gets interesting. The rules for the trade are as follows:

Uptrend

1. This works best as a reversal pattern so identify a previous downtrend.
2. Wait for the MACD to signal a buy and for the 1-2-3 set up to
   be in place.
3. As the market pulls back to point 3, the MACD should remain in
   buy mode or just slightly dip into sell.
4. Place a buy entry order 1 pip above point 2
5. Place a stop loss order 1 pip below point 3
6. Measure the distance between point 2 and 3 and project that
   forward for your exit.
7. Point 2, should not be lower than point 1

The reverse is true for short trades. As the market progresses you can trail your stop to 1 pip below the most recent low (Valley in an uptrend). You can also use a break in a trend line as an exit.

Some examples:

There are a lot of variations on the 1-2-3 setup but the basic concept is always the same. Try experimenting with it on your favorite time frame.

Good Trading

Best Regards:
Irfan Chouhdry

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Day Trading the Forex Market Profitably

Being a forex day trader can be very lucrative. The currency market is by far the most liquid and volatile market in the world and with this come various opportunities. No matter what type of market you chose to day trade you must know the “personality” of the market you are trading.

Every market has it’s own characteristics and it is important to know what they are before attempting to profit from it. The forex market is no different. In this article we will go over very important general day trading principles/rules and then we will see what a day trader has to recognize when specifically day trading the forex market.

As the term implies, day traders are concerned with what happens in the market today. Not tomorrow, not next week and not next month, but today. The day trader’s job is to capture intraday price swings. Depending on the system or trading method employed, this can mean capturing one intraday swing or various intraday swings. The general job of a day trader is (then we will go over the more specific job of the forex day trader):

To control risk

One of the most important jobs as a day trader is to control your risk exposure. Sure, controlling risk is a concept you must use in any type of trading, however in day trading you must look at this issue from a different angle. Since your job is to capture various price swings during the day naturally your profit objectives will be much smaller than that of a swing trader (who places a single trade aiming for a much larger profit objective). So, when placing several trades during the day it can be easy to “drift” away from your pre-determined stop loses. A common (very common actually!) day traders thought is “if I extend my stop loss just a bit I hope the market will turn around”! Hope is one of the trader’s biggest enemies. These little extensions of stop losses add up and suddenly without noticing you are losing more dollars per trade than planed making your risk/reward ratio turn against you.

To be disciplined

This principle is key for any type of trading but particularly for day trading. If I had to name one single aspect of a day trader that can make him or her a winner or a loser it is discipline. You can have a so-so system but still make money if you are disciplined. However, you can have the best trading system in the world but if you are not disciplined I guarantee you will not be a successful trader. So, what is all this discipline everyone talks about when discussing trading? Very simple, it’s respecting and strictly following your trading plan, your trading system, your money management rules, and your commitment to the business. Being disciplined with regard to each and everyone of these components is essential for your success.

It is so easy to deviate from your trading plan, the rules of your trading system or any of the above mentioned components, especially when day trading. Why? Two reasons. First, because the trader is trading very frequent and does not have time to cool down, think, and evaluate. Second, because reality is replaced by hope. Your trading system rules (reality) says: “get our of the trade” hope says “hang in there, maybe it will still be profitable”. Your money management rules (reality) say “risk only 2% of your account on this trade” hope says “since I lost on the last trade I will risk 4% on this next one so I can make up for the loser and also be profitable”. Your trading plan (reality) says “trade each day 4 hours, give yourself Wednesday or Thursday a vacation to rest” hope says “Since I am not doing very well now I don’t need this rest day, and I will also trade 7 hours per day to make up”. I know (not hope!) you now understand the point!

To focus on the appropriate time frame

As a day trader your primary concern is to catch intraday swings. Your trades start and finish the same day. Your world is the day you are trading in. You don’t care what will happen in the market tomorrow or the day after tomorrow. Your objective when trading is focusing on the appropriate time frame chart. My opinion is that day trading should be done on a 1, 5 or 10 minute bar chart. Remember, you are looking to capture several fast moves during the day and hence you must focus on the charts that best illustrate events as they happen in a short period of time. However, the fact that you are day trading on a 1,5 or 10 minute bar chart does not mean you can’t use a larger time frame chart for the purpose of analysis. This however, is very subjective and depends very much on the traders strategies and methods of trading. As an example, many day traders would look at one hour bar charts in order to have a view of how the market has been behaving in the last week. Is it moving sideways (and so maybe I should only place trades between support and resistance areas)? Is it trending (and so maybe I should only be looking at placing trades in the direction of the higher time frame trend)? Are there any major support and/or resistance levels I should be aware of (areas where I should refrain from placing trades since it is uncertain how the market will react when reaching them)? Did the market brake out of a congestion area?

Again, it is very subjective. Some day traders believe that with proper larger time frame analysis they can select better day trades. My personal opinion is that the more you analyze the more conflicts you will have and the more uncertainties will appear (especially if you are new to trading). I like making things simple and I found it very useful when trading (proof of this is that all of the trading systems I use are 100% mechanical). Don’t get me wrong, this is not to say that larger time frames should not be used at all for analysis purposes. But, try to keep it simple and if you see that looking at larger time frame charts interferes with your correct decision process when placing day trades then simply stop.

To trade volatile and liquid markets

Since your job as a day trader is to capture intraday swings it is crucial that the market you are trading has enough movement to allow you to do this. It is also important that the market you are trading has enough liquidity so that order fills do not suffer from excessive slippage. You have to select a market that it’s volatility is permanent and not a temporary occurrence. Since you are basing your trading method on catching intraday price swings you have to know that you are trading in the right place. As a day trader volatility is your allay and you have to know that you can count on it every single day (or at least 90% of the days). Liquid markets will provide you with good order fills. As a day trader this is very important since you are aiming at smaller profit objectives and hence larger slippage will eat away more of your profits. When trading several times a day this adds up and can be the difference between success and failure.

As a forex day trader you have to apply all the above rules and principles plus other criteria that are unique to the forexmarket.

Time of day trading

The forex market is a 24 hour market. Never stops except on weekends. Within this 24 hour period different currencies behave in different manners. As a day trader it is very important to know the “personality” of the currency you are trading. For example, the GBP/USD is more volatile in early to mid European session than any other liquid pair. For a day trader trading in these hours it would be wise to take advantage of the price swings the GBP/USD pair offers instead of trading some other currency pair that constantly shows no movement. The USD/CAD pair is “silent” in the early to mid European session but starts to have more price movement toward the start of the US session. Every time Non Farm Payroll is released most if not all currency pair have a very small price range up to release time. As a day trader it wouldn’t be wise to trade during these pre-announcement hours with strategies that are based on breakouts. It would probably be smarter to use strategies that are based on range support and resistance.

Spread and liquidity

Forex brokers don’t charge you a commission for every trade you make (at least most forex brokers). Instead, they make their profit on the bid/ask spread which is measured in pips. As a forex day trader you are aiming at capturing small price swings sometimes several time per day. Also, your profit objectives are obviously much smaller than the swing trader’s profit objectives. All this means one thing: every pip counts.

You cannot afford to trade currency pairs with large spreads, if you do your profit will get eaten up to a point where you will not be trading with an adequate risk/reward ratio. Forex day trading must be done with liquid pairs.

Most forex brokers will provide you with a very narrow spread for the most liquid currency pairs. As an example, many brokers are now offering a 2 pip spread for EUR/USD and USD/JPY and a 3 pip spread for USD/CHF and GBP/USD. These are the most liquid pairs and the ones a day trader should focus on.

Volatility

As a day trader volatility is you friend, a friend you cannot afford to trade without. In it’s basic definition, volatility is simply the amount of price change with relation to time. Volatile currency pairs have various price swings (price changes) during a small period of time (one day). These price swings are what a day trader lives on. In the forex market volatility many times comes hand in hand with liquidity. The most liquid pairs are the ones that are the most volatile. The big 4: EUR/USD, GBP/USD, USD/JPY and USD/CHF are the most liquid pairs that provide the best volatility and hence opportunity for the forex day trader. Within these four pairs, the GBP/USD is the most volatile. Although it’s not the most liquid (the EUR/USD is), but it’s the most volatility. This pair, traded with the right broker (one that provides a 3 pip spread) can present many profitable opportunities for the astute day trader.

Specific news announcements

Currency rates are affected by rumors, news, economic indicators and government reports. As a day trader you must always be aware of what economic reports are scheduled on the day you are trading and at what time. Why? Simply because many of these reports can have a strong momentary impact on the market once they hit the news wires. This impact can be of 10 pips or 100 pips depending on the report and it’s difference from the market consensus. The most important and impacting economic indicators and government reports are issued by the US government. They affect every USD/X or X/USD currency pair. Again, always know what are the release times and the importance of the economic report. For example, suppose you are in a EUR/USD trade at 8:25 a.m. You know that an economic report is scheduled for release at 8:30 a.m. You might consider either exiting the trade before the release (in order to avoid unnecessary speculation as to what impact the report will have on the market) or entering your profit objective and stop loss into your deal station (for risk exposure reasons).

In conclusion, the forex day trader has to be prepared not only with the basic day trading rules, skills and principles. His job is to incorporate into his trading the characteristics and uniqueness of the forex market. Remember, every currency pair might present different opportunities and it is your job to always focus on the ones that best fit the purpose and objectives of day trading. I hope to have contributed to your forex trading education and I thank you for taking the time to read this article.

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Detailed Gbp/$ Forex Analysis 22nd June

In Tuesdays profit warning update I described what was happening on the cable (gbp/$ ) chart above and tried to show you areas to look at for possible reversal areas on a forex pair.

Gbp/Usd: In the analysis for the chart above I explained that what was extremely interesting to me was where price was then. The arrow is pointing to where the 4 hour and the daily trend lines meet.

I said “This area is critical. If price starts to go back up from here we could be at the bottom of a major move upwards for 100’s of pips (possibly a 1000 to the top trend line)”.

What I am going to explain is how I bring my varied trading methods together to try and calculate where price is going next.

I have been trading forex for over 5 years now. You can not expect to pick all this up overnight, but it will give you an idea of how a professional forex trader tries to build up a detailed picture to arrive at a decision. Especially on a trade like this which could yield many 100’s of pips.

This analysis for cable will be extremely detailed. If you have read the free lessons on the main site, hopefully this will all be starting to come together. If you are new, don’t worry, just try to absorb the information.

My thought process is as follows

1. On the daily chart (above) I can see that price has been in an uptrend/channel for 6 months (the 2 parallel yellow lines) and price has bounced off the bottom line 5 or 6 times. As price comes down to this area I am therefore looking for other reasons for why price might react in this area. That is I am looking for other pieces of the jigsaw to support the theory. So next I go to the 4 hour chart as shown in fig 2.

2. The almost horizontal yellow line is the 4 hour down trend line as shown in the following diagram

Fig 2

4 hour down trend gbp/usd

Here on the 4 hour forex chart we are looking for;

• an aggressive trade, a bounce back off the bottom line with a stop just below the trend line (not a great idea in the markets for the last few days) or

• A more conservative break & close of a candle through the top line

• A 3rd option of course is to consider all the reasons why we might short (sell) the pair; a break and close below the daily trend line would be a major reversal

Are there any other clues we can look for ?

Fibonacci. Take a look at the same chart with fib lines added (Fig 3). See how price has bounced twice at the 5o% fib line (standard fib pullback strategy as I have explained numerous times before). This 50% has also become a double bottom, another strong support area.

Notice also how price has failed to break & close above the 23.6% fib, therefore this is a resistance area in roughly the same area as the upper trend line.

Fig 3

So What Happened next & where do we go now ?

Gbp/$ 4 hour chart break out of uppper 4 hour trend line after bounce off daily and 4 hour trend line at point 1

Possible entries

1. The aggressive trader would have bought at point 1 which is a close of a hammer candle after a bounce off a 50% fib and daily trend line. I missed it ! I was watching for it but had to go out. Doh !
2. Less aggressive trader at point 2 where the candle has broken (and most importantly closed) above the upper (yellow) resistance/trend line. I caught it here. It was not an LMT move, just my normal stuff.
3. More conservative trader would Definatley look to enter here, the only problem it was so late on friday that you need to wait for Monday open to look for an entry. I never enter trades friday pm. Also beware pullback Monday market open though, or now wait for LMT signal). At point 3 we have had. Confirmed break and close of trend line and fib as well as close above fairly major psychological level of 1.6500.

The final piece of the jigsaw for me is my normal chart set up that I show in the last diagram below (as explained in detail in the free lessons).

Price is above all the emas on the 4 hour forex chart for gbp/$

For those of you who are new to forex trading this may seem more than a little overwhelming ! The secret at the start of your forex trading career is to take things one step at a time. The LMT is great for you to get started with, as well as being a great addition to the arsenal of an experienced trader. To start with keep things as simple as possible and read, read, read as much as you can. If any of you are interested in joining the LMT Forex Trading Formula, (we have relatively new traders who have gained 5/6/700 pips in their 1st week with this amazing system) ! click on the link below;

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If you would like to receive regular free analysis, tips and advice from me, just send me an email: marc@forex-fxtrader.com I will post less detailed analysis for the other 10 pairs here on the blog tomorrow, regards, Marc

Please visit my website for more inform

This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

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Available Forex Trading Courses In UK

One of the most important goals in every people’s lives is to be able to obtain a good education. Each type of education will serve it’s own purpose, and for a forex trading course it will guide people especially the beginners through the competitive world of Forex trading. This venture can be very lucrative but as much as it is profitable is same as it is complex. The financial market drastically changes every minute or even every second. With this characteristic, you can never tell as to which currencies are a good buy and which are not at a certain period of time. You can never predict what is about to happen in forex trading. What matters more in forex trading is the timing and for you to be able to know which is the best time for trade, you need to educate yourself for the basics. Assumptions guided by skills out of a forex trading course will brace you towards success.

Now where on earth will you be able to enroll yourself for a forex trading course? Since there’s an increasing demand of interests now on forex trading, lots of companies are offering training courses, they can be reliable but there are those whom we consider as scammers who takes advantage. It is therefore, important that prior to taking these kind of courses, one must take necessary consideration in terms of the reliability and quality of a certain institution that offers a forex trading courses. Speaking of reliability, this accounts to the degree of knowledge and experience, an institution and its instructors have with regard to trading forex. I believe that there’s no better way to determine than knowing that these institutions are located in an area where the activity of forex trading are centered. Now, US & UK account for more than 50% of the forex market transactions. We can therefore say that from these areas situated one of the best forex trading courses are offered. Indeed, there are lots of them have opened up training centers for this purpose.

Forex trading courses in UK will help you acquire: the basic knowledge of forex, it’s benefits and role; the technical terms involved in forex; the introduction and implementation of various tools and software; the strategies needed in trading in forex market; it make you understand the overall trading system i.e. when to enter a trade and when to stop the trading and there are a lot more that needs to be learned especially for a beginning trader. All these will equipped you to compete in the world of forex trading. All you need to provide is the patience, perseverance and above all a positive mindset for success.

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Advice On Learning Forex Trading

Business these days is a very tough task and it pays to know exactly what your doing. This is especially to true when dealing with the forex market. It is indispensable that learning forex trading and all that is associated with it to best of your ability in order to succeed. The various stakes and players. When you choose to learn forex trading you need to know exactly what your dealing with such as

* The value of the currency
* The various factors that will affect the value of the currency
* The trading strategies
* All the different market trends.

Knowing these will greatly help your cause. The fundamentals to forex trading is solid research. As it’s such a tough market then getting your hands on a good course to help in your knowledge of learning forex trading will help.

Why Should You Look For A Good Forex Trading Course?

Forex trading courses will help in teaching you the ways in which to predict or chart the continuous movement in the market as well as when the perfect time to buy or sell a commodity is. It will help you in getting familiar with various forex trading terminologies and the process of trading.

Because forex trading is done in real time and decisions are done on the spot, a trader should be emotionally equipped and prepared to handle the demands, challenges and the stress of the market. And these, one can learn in a forex trading education.

What To Look For in Forex Trading Courses

The Basics. A good forex trading education should include in its program the basics on margins, types of orders and leveraging as these are essential in the forex market transactions. It should teach the basic terminologies, the types of analyses being used, the software and tools and other such important things as charting and leverage. These are essential as the trader learns when to cut back and minimize his losses as well as gain profit.

Analysis. It should also teach you how to analyze common mistakes and at the same time, the ways to avoid such mistakes. Basic to a forex trading course is a detailed discussion on doing technical and fundamental analysis and tools.

Values. More than the theories and the basics involved, a good forex trading education should teach you proper money management and the development of a proper trading disposition and psychology. As the stakes are upped, a trader may become too emotionally involved. It is important that a forex trading course develops the appropriate values needed in money trading, such as discipline, patience and commitment.

Experience. A good forex trading course should provide real life experience through apprenticeship. There is no better teacher than experience, they say, and as forex trading is as real as it can get, forex courses should offer avenues where the student can practice trading. Some courses have live conference rooms or boards where the trader can learn to trade in real time or, in some cases, in a simulated environment. These experiences should also have a one-on-one feedback and forums for discussion and exchange of information and lessons.

For those who’d like to get a good grasp of the market and the rules of the game, there are online sites offering courses and workshops on forex trading. These sites offer courses on risk and money management, trading strategies, technical analysis, market trends and networking. There are also tutorials on the latest softwares and tools being used. There are also online sites that offer lifetime membership and support. Some online schools allow their students to retake the course for updates on the newest trends and strategies. You can try www.trainingacademy.com, www.realtimeforex.com, www.go-forex.net, www.forexmentor.com and www.fxcm.com.

Innovations

With the advent of the Internet, there’s already online forex trading, a system that allows corporations and players in the game to do business virtually. With online forex trading, one can check and monitor the value of the currencies, and even trade directly on the internet. It offers trading of almost 15 currencies, and with the growing number of online traders, it spells more possibilities and more earnings.

Of course, nothing beats the real thing. And a successful forex trader’s skill and knowledge is developed with continued experience. A forex trading education may or may benefit you, but it sure can spell a difference. With the forex market’s volatile environment and fast-paced transactions, one must be fully-equipped with the appropriate tools, knowledge, skill and disposition. The key here is to know the market. Of course, don’t forget to read up on the market, learn how to compare the currency values and generally become a better money manager.

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Learning Forex Trading From Free Course Ebooks

Many people are getting interested in forex trading. Not only that this venture is very lucrative, it gives you also the luxury of time at the comfort of your own home. But before you even begin trading forex, getting a good forex trading course is very essential. The forex market is largely a technical market with its own forex terms and processes so it is important to grasp the fundamentals of it by taking online forex trading courses and taking advantage of their free ebooks.

This forex trading courses can be taken just online. The main objective here is for you to understand the world of forex trading– its terminologies, concepts and above all learning the forex trading strategies. With taking this course, free ebooks are provided, it will basically give you the beginner knowledge you need to take part in trading forex. These ebooks are easy to download and comes in a pdf format. So, anybody who owns a computer with an internet connection and above all has interest on forex trading can take forex trading courses and avail of their free ebooks.

While these ebooks contains just about everything you need with dealing forex trading, all you need to do is to read on every detailed information. These ebooks will help you equipped you mainly with the topics of forex market introduction, trading strategies and tools, types of deals, some fundamental and technical analysis and added to them are some guides to online trading and tips as what to do and what not to do when it comes to forex trading.

Although, there are some who takes risk at trading forex without having the sufficient knowledge and equipped with strategies; the tendency with them is that they are bound to burn and lose all their resources. Which of these tow options you would prefer: losing time with taking forex training courses or losing all your resources? It’s all up to you. Truly. Forex trading can become a very lucrative source of profit and that’s why it appeals to many people but the downside is that it can also lead to substantial losses. Thus, for traders who rush into deals without a solid knowledge and training are bound to suffer the consequences.

Besides sufficient training, it is important for any forex trading beginner to note that successful forex trading takes patience and perseverance as it is a long term investment. And with the combination of disciple for controlled forex trading, making forex trading profitable is a hundred percent possible. With continued research from forex trading ebooks, tutorials and guides, along with constant practice; you’ll be honed with greater skills and learn more effective strategies because as with all successful ventures; knowledge always equals power.

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Forex Trading Tips To Help You Master The Forex Market

Forex Trading Tips To Help You Master The Forex Market

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Are you one of those who have heard about Forex trading but not sure what it really is? Or you would like to find forex trading tips on how it works and if you can make money out of it, but not sure whom to ask? Well, I can tell you are not alone in this situation. Many people think that they are familiar with Forex trading, but in reality, most of them think that forex trading has something to do with stocks or bonds.

Forex trading is different from stocks or bonds. It is a type of trading that involves trading of currency pairs. The currencies that are usually chosen for trading are considered above the rest because they are stable and have a greater value than other foreign currencies.

For all the newcomers to the forex market, the first piece of tips is to protect themselves from frauds. If you’re new in forex trading, it doesn’t hurt to take some advice from the ones who are already engaged in forex trading. In fact, you can make use of their tips for your own good, and even to your advantage.

People across the globe participate in forex trading and that’s why it is not surprising to see the kind of frauds that are able to infiltrate the financial market. To shield the legitimate traders from these frauds, they must be made aware of these growing facts, so that they can take suitable actions to protect their trading career.

The opportunities that forex trading provides for different individuals, firms, and organizations is growing rapidly every year. And accompanying this growth is the widespread growth of different scams related with forex trading. But you should not worry because there are a lot of legitimate companies or firms that can help you in forex trading.

The best thing to do is to find these legitimate companies to stay away from fraudulent ones. However, most new traders fall prey to these scammers because of their savory offers.

Don’t get fooled by the companies that advertise high profits for minimal risks. The fact is that, if you want to earn high profits, then you are likely subjected to high risks as well. Higher rate of profit means higher risk.

So, always stay on the safer side. If you’re looking for a forex trading broker, and since each broker is part of a certain company, make sure that you select a government registered company. In signing any contract with them, double check if they are registered or certified brokers. This is one basic precaution that will prevent any misfortune that you might encounter in the future.

The job of reducing the risk is entirely yours, not that of the broker; so if the company offers or promises little risks, guaranteed profits, and the like, that is a sure sign that they are there to make a fool out of you.

Even if you are not a professional trader, a little use of the common sense can help in long run.

Before actually participating in any forex trade, make sure you have done your homework. Do the research and jot down all the necessary details about the trading transaction that you wish to perform. Ever heard of inter-bank market? Stay away from companies which lure you into trading in the inter-bank market because the currency transactions are negotiated in a wobbly network of large companies and financial institutions.

Also, make sure to check the background or history of the trading company. If a certain company does not disclose information about their background, that should serve as a red flag. It means that you should continue doing transactions with them. Nor is it advisable to transfer/send cash through the mail or the internet. Practice caution in everything you do, and you’ll be more than sure that you are always safe.

Fraudulent companies often solicit services and advertise soaring pressure tactics to attract you in participating or joining their services. An offshore company which guarantees no risk and return of profit is a big NO. Always be skeptical and don’t give in to any instant offer that comes your way.

What forex trading tips would you like to know about? Check out the professional advice below

- Get the latest information on online forex trading brokers system

- Help on learning forex trading

- Recommended forex trading courses

- What you should know about forex trading software

- Advice on forex mobile trading software

- More about forex trading signal software

Take a carefully evaluated decision about your trading company or transaction. These pieces of advice are merely to guide you. Ultimately, it will entirely depend on you to identify and reject offers from fraud companies. One wrong decision could seriously jeopardize you trading career, so act wisely.

The success of Forex trading, like any other trading, lies in your ability to buy for less and sell for more. You can trade in Forex market successfully if you keep patience and a little diligence. You can also safeguard yourself from Forex trading frauds if you stay alert and skeptical.

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Business Development Manager

Business Development Manager -

• Innovative and dynamic global business
• Full time position in London
• Salary – negotiable

UKForex is an Australian-based, high growth, financial services company expanding rapidly with offices in Sydney, London and Toronto. From these three offices, our dealing rooms service our global client base 24-hours a day.

As one of the world’s largest online foreign exchange providers, UKForex is a young, innovative and dynamic business that is offering a unique opportunity to the right person to be part of our global expansion and development.

Due to our ongoing success and continuing growth, we have an exciting role within our UKForex office based in London.

The role is for a Business Development Manager reporting to the Sales Manager for UKForex. The successful candidate will possess a friendly and positive manner and will be able to take initiative and will be accountable for driving incremental growth in revenue and new clients.

You will be investing a significant portion of your time negotiating with key decision makers and forming relationships through various channels across a range of industries for referral and partnership arrangements. You will be involved in marketing the UKForex online platform face to face and via the phone to key decision makers within the SME space, establishing UKForex as the provider of choice.

We will provide you with ongoing training in the following:

• Custom built CRM system and online platform
• Sales Training
• Product Training
• FX Market knowledge
• Industry certification

The ideal candidates will possess:

• Strong attention to detail
• Integrity and good work ethic
• Excellent written and oral communications skills
• The ability to work autonomously as well as in a team
• Great process management and multi-tasking abilities
• Superior computer skills
• A commitment to providing consistently outstanding service
• High levels of self motivation and positive can do attitude
• Drive, passion and initiative necessary to deliver outstanding business results
• Effective organizational and time management skills
• A tenacious approach; and possess ability to effectively adapt to change
• A high degree of professionalism, with a confident and persuasive manner

Given your sales focus we will also provide you with a sales and marketing plan, growth strategy and projections, laptop with internet access and a car and phone allowance. Ideally you will have minimum 2 years of business to business solution sales experience with a proven track record within the industry.

For any conscientious employee, this role could be a great continuation of an ongoing career in the finance industry. We will offer a competitive packaged salary commensurate with experience to the right candidate. This is an exciting time to join our innovative and dynamic company that continues to grow in profitability as we expand our services and products globally. Please send your resume to and include the following in the subject heading:

• Business Development Manager - London
• Your full name

We look forward to hearing from you soon!

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What Is The Difference Between Forex and Futures?

1. A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market, moreover Forex traders could make more profit from the Forex market due to the larger trading volume (the transaction volume is a few times larger), the REFCO Switzerland rich transaction platform allowed transaction between 1-100 times to be carry on, moreover a Forex trader could decide his or her own transaction amount, for example: Your account has $30,000, the basic transaction unit is each $1,000 (which transaction amount in $1.00, million), namely, so the proportion of the margin of each transaction unit is 100:1.
   
   
2. The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required, the Forex trading system will automatically settle your position, this means even if a Forex trader suffered losses, moreover if the market is suffering from a disaster fluctuation, your loss could not surpass your account amount. In order to understand the advantages, please apply for the demo account to carry on the complete zero risk.
   
   
3. A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world. At present the trading volume in the Forex market is 140 billion Dollars, such big market will completely digest your transaction cash.
   
   
4. A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open, such linkage market enable you to do 24 hours transactions, also provide flexibility for Forex trader to do transaction.

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Famous Forex Quotes

“If you get in on Jones’ tip; get out on Jones’ tip”. If you are riding another person’s idea, ride it all the way.

1. Run early or not at all. Don't be an eleven o'clock bull or a five o'clock bear.
   
   
2. Woodrow Wilson said, "a governments first priority is to organize the common interest against special interests". Successful traders seek out market opportunities capitalizing on the reality that government's first priority is rarely achieved.
   
   
3. People who buy headlines eventually end up selling newspapers.
   
   
4. If you do not know who you are, the market is an expensive place to find out.
   
   
5. Never give advice-the smart don't need it and the stupid don't heed it.
   
   
6. Disregard all prognostications. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word-nobody! Thus the successful trader bases no moves on what supposedly will happen but reacts instead to what does happen.
   
   
7. Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough.
   
   
8. Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment yourself if a trade continues winning without you. Chances are it won't continue long. If it does console yourself by thinking of all the times when liquidating early preserved gains you would otherwise have lost.
   
   
9. When the ship starts to sink, don't pray-jump!
   
   
10. Life never happens in a straight line. Any adult knows this. But we can too easily be hypnotized into forgetting it when contemplating a chart. Beware of the chartist's illusion.
    
    
11. Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic.
    
    
12. Whatever you do, whether you bet with the herd or against, think it through independently first.
    
    
13. Repeatedly reevaluate your open positions. Keep asking yourself: would I put my money into this if it were presented to me for the first time today? Is this trade progressing toward the ending position I envisioned?
    
    
14. It is a safe bet that the money lost by (short term) speculation is small compared with the gigantic sums lost by those who let their investments "ride". Long term investors are the biggest gamblers as after they make a trade they often times stay with it and end up losing it all. The intelligent trader will . By acting promptly-hold losses to a minimum.
    
    
15. As a rule of thumb good trend lines should touch at least three previous highs or lows. The more points the line catches, the better the line.
    
    
16. Volume and open interest are as important to the technician as price.
    
    
17. The clearest and easiest way to determine a trend is from previous highs and lows. Higher highs and higher lows mark an uptrend, lower highs and lower lows mark a downtrend.
    
    
18. Don't sell a quiet market after a fall because a low volume sell-off is actually a very bullish situation.
    
    
19. Prices are made in the minds of men, not in the soybean field: fear and greed can temporarily drive prices far beyond their so called real value.
    
    
20. When the market breaks through a weekly or monthly high, it is a buy signal. When it breaks through the previous weekly or monthly low, it is a sell signal.
    
    
21. Every sunken ship has a chart.
    
    
22. Take a trading break. A break will give you a detached view of the market and a fresh look at yourself and the way you want to trade for the next several weeks.
    
    
23. Assimilate into your very bones a set of trading rules that works for you.
    
    
24. The final phase in a bull move is an accelerated runaway near the top. In this phase, the market always makes you believe that you have underestimated the potential bull market. The temptation to continue pyramiding your position is strong as profits have now swelled to the point that you believe your account can stand any setback. It is imperative at this juncture to take profits on your pyramids and reduce the position back to base levels. The base position is then liquidated when it becomes apparent that the move has ended.

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Forex Development History

Foreign exchange development history - exchange market evolution foreign exchange development history - exchange market evolution gold remittance system and Bretton woods agreement In 1967, a Chicago bank rejected to provide pound loan to a professor named Milton Friedman, because his purposed was to use this fund to sell short the British pound. Mr. Friedman realized excessively that the price ratio from the British pound to US dollar at that time was high, he wanted first to sell the British pound, after the British pound fell he buys back the British pound to repay the bank again. This family bank rejects the loan offer based on the "Bretton woods Agreement" which was established 20 years ago. This agreement has fixed the various countries' currency to US dollar exchange rate, and the price ratio between the U.S dollar and the gold is also fixed to 35 US dollars to each ounce of gold. The Bretton Woods Agreement was signed in 1944, the purposed was to prevent the currency to escape between countries, and also to limit the international speculation, thus to stabilize the international currency. Before this agreement was signed, the gold remittance standard system which was widely used since 1876 - was leading the international economy system until the First World War. In the gold remittance system, the currency was at the stable level under the support of the gold price. The gold remittance system has abolished the old time king and the ruler which depreciates the currency value unlawfully, which will lead to inflation. But, the gold remittance standard system is certainly imperfect. Along with a country economic potentiality enhancement, it can import massive products from overseas, until it exhausts the gold reserve of certain country. It resulted the supply of the currency reduces, the interest rate raises, the economic activity will start to decline until it reaches the recession limit. Finally, the commodity price falls to the valley, gradually attracts other countries to stream in, massively rushes to purchase this country commodity. This will pour gold into this country, this will increase this country currency supplies quantity, and it will reduce the interest rate, and will create the wealth. This is so called the "the prosperity - decline” pattern and is the circulation of the gold remittance standard system, until the trade circulation and the gold freedom was broken by the First World War. After several catastrophes wars, the Bretton Woods agreement has appeared. The countries which signed the treaty agreed to maintain the domestic currency to US dollar exchange rate, as well as the necessity of the corresponding ratio of the gold, and only allow a small fluctuation. Countries are prohibited to depreciate the currency value for the gain trade benefit, only allows the country to depreciate not more then 10%. Enters the 50's, the continuous growth of the international trade causes the fund large-scale shift which produces because of the postwar reconstruction, this causes Bretton Woods system which establishes the foreign exchange rate to lose stability. This agreement was finally abolished in 1971, US dollar no longer could convert to gold. Until 1973, each major industrialized nation currency exchange rate fluctuation has been more freely, mainly regulates by the foreign exchange market through the currency supplies and demand quantity. The business volume, the transaction speed as well as the price variability, have achieved a comprehensive growth in the 1970's, come along with the emerge of price ratio fluctuation, the brand-new financial tool, then only the market liberalization and the trade liberalization could be achieved. In the 1980s, along with the published of the computer and correlation technology, the international capital has flow rapidly, and strongly related the Asia, Europe and America market. Foreign exchange business volume from 80's rises daily from 70 billion US dollars to 150 billion US dollars after 20 years.
	European market inflation
	One of the reasons why the foreign exchange developed rapidly was the rapid development of the Euro dollar market. In a Euro dollar market, US dollar is stored beyond the border of America banks. Similarly, the European market is refers to property depositing outside the currency rightful owner country market. A Euro dollar market was formed at first in the 50's, at that time Russia deposited its petroleum income beyond the US border, avoid being freeze by the US government. This has formed a large offshore US dollar national treasury which is beyond the control of the US government. The American government has formulated a law to prohibited US dollar from lending money for the foreigner. Because the degree of freedom of the Euro dollar market is bigger and the rate of return is bigger, therefore it has large attraction. Starting from the 80's, the American company starts to borrow loan from the offshore market, they discovered that the European market is a wealth center which consists of large amount of floating capital which could provide short-term loan. London once was (until now still is) one of the main offshore market. In the 80's, the Bank of England in order to maintain its global finance industry center dominant position, using US dollar as England pound substitution to make loan, thus to become a Euro dollar market center. London's convenient geographical position (is situated between Asian and Americas market) also helps to maintain the European market as the dominant position.

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Forex Charts

Forex charts assist the investor by providing a visual representation of exchange rate fluctuations. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates.

In order to help the investor attempt to predict when or in what direction a rate may change, advisors provide forex charts. Quality forex websites provide subscribers with a daily newsletter that includes a forex chart, forex signals and a forex forecast.

There are a variety of forex charts available for the investor to use and study. Some are very simple using only a couple of forex signals or indicators and are ideal for beginners. Others include 30 or 40 forex signals or indicators and live on-line streaming data so that the investor may analyze trades quickly and accurately.

In order to make an accurate forex forecast, it would seem that the more indicators, the better, but some analysts prefer a simpler system.

The idea behind studying forex charts is that history repeats itself. Instead of trying to “see the future”, a forex forecast evaluates the past. That is to say that the analyst who is responsible for attempting to predict future currency moves analyzes what happened to an exchange rate yesterday, last week, last month or last year and uses this knowledge to the best degree he knows how.

Some people trade short term, some intermediate term, and some long term. All three types of traders may benefit from the use of forex charts, just adapted to their own trading time frame.

Investors also create their own forex charts to evaluate their own performance. Creating a forex strategy for oneself is the goal of many investors. Instead of looking to a professional to analyze forex signals, these investors choose to create their own forex forecast.

Others, however, create their own strategy but also follow the opinions of professional currency traders at the same time. It all depends on your personal preferences.

There are other forex charts that deal with known correlations between two currency pairs, that is, how they move in relation to each other. Some exchange rates are known to affect other exchange rates, either by moving in the same or the opposite direction depending on the correlation.

Charts are available that explain these correlations in detail and show which pairs have strong correlations or strong negative correlations, so that an investor can use the movement of the exchange rate of one currency as a signal to trade another currency. These correlations are also the basis for some forex forecasts.

It can be difficult and overwhelming to enter the world of forex trading alone. Experts recommend education, practice with a demo account and advice from a reputable broker who is backed by a quality institution. Learning to read forex charts and evaluate forex signals is a skill that comes with time, skills that are essential when an accurate forex forecast is the the goal.

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