Selecting a Forex Market Analysis Mechanism

By Brad Morgan

Two kinds of forex market analysis prevail:

1. The form of analysis that concerns itself with analyzing the nature and the results of socio-economic and political undercurrents on the forex market is called FUNDAMENTAL ANALYSIS.

2. Technical analysis contrastingly , employs graphs and charts to surmise patterns that connote price movement.

So which is the more fitting analysis? If you check out forums and websites you will chance upon many traders resolutely supporting one or the other. Those who like to depends on charts will tell you that the only way to make money with currency trading is to find out trends and jump onto them as soon as possible.

On the other hand, the fundamental analysts will allege that currency prices are moved by socio-economic factors, a fact that cannot be declined. Thus according to them, chart patterns are mere eventualities that have no real relevance on reality.

That declaration should be taken with a grain of salt. While the direct and broader effects of economic changes is unmistakable, in post major announcements position and relatively event and change free times, technical analysis may be of benefit in predicting movements.

But if you place all your confidence in technical analysis, unexpected announcements in influential financial news will presumptively catch you off guard. Since you would be dependant on charts and not news, you could end up picking the least favorable time to trade. Such an event could be cataclysmic.

The verdict therefore is that short term trading can benefit from singling out trends via technical analysis while the large price movements are mostly created by socio-economic or political forces. Keeping both eyes open is the more sensible method as it equips one to use mathematics to predict short term movements while monitoring current news and happenings that would effect movements on a longer term and greater consequence. After all money in the FX market is made when one trades based on predicted movement and that prediction comes to pass.

Markets are sometimes characterized in terms of elasticity as they can move in either direction and fall back to their previous or another position. The factors that stretch the market are the fundamentals of socio-political and economic forces. How much it will stretch and where and when it will stay is the domain of technical analysis.

Therefore you would be well advised not to be a idealist in either form of analysis. Excellent returns are realized better when fundamental and technical analysis are combined together. - 23309

About the Author:

Forex trading requires understanding forex fibonacci trading. To trade forex effectively you must understand forex trading strategy to stay abreast of it all.

How The Stochastic Oscillator Can Make You Rich

By Sam Nielson

The Stochastic oscillator is meant to girate between 100 and 0. A very low level means emotions have caused people to sell in panic. A very high level means emotions have caused people to become too greedy.

Look for buying opportunities when the Stochastic oscillator nears its lower reference line. Look for selling opportunities when the Stochastic oscillator nears its upper reference line. Buying when the Stochastic oscillator is low is emotionally hard because markets usually look terrible near bottoms, which is precisely the right time to buy. When the Stochastic indicator rallies to its upper reference line, it tells you to start looking for selling opportunities. This also goes against the grain emotionally. When the Stochastic indicator rallies to a top, the market often looks fantastic, which is a good time to sell.

Newbie traders use indicators by themselves. Don't do this. Use the Stochastic indicator with other technical indicators. Keep in mind that when a powerful uptrend begins, the Stochastic indicator quickly becomes overbought and begins showing premature sell signals. In a sudden panic sell off, the Stochastic indicator quickly becomes oversold and begins showing premature buy signals. Therefore, this indicator only works if you use it with other trend-following indicators.

What you need to do is to enter a position when the Stochastic indicator is at an extreme. If you try and wait until the Stochastic indicator turns, you'll miss too much of the move. Think of the extremes of the Stochastic as telling you how much emotion is in the market. The more the emotion, the better you can take money away from other traders.

If the Stochastic has a bullish divergence from the price, go long. If it has a bearish divergence from the price, go short. Bullish and bearish divergences are just a short way of saying that the Stochastic moves in the opposite direction as the price of the stock.

Do not buy when the Stochastics is above its upper reference line and do not sell short when it is below its lower reference line. This is probably the most useful way to use the Stochastic. Moving averages are better than the Stochastics at identifying trends, MACD-Histogram is better at identifying reversals, channels are better at identifying profit targets, and the ADX is quicker at catching entry and exit points. The trouble with them is that they give action signals most of the time. The Stochastic identifies no trade zones. - 23309

About the Author:

I hope this lesson teaches you how to use the Stochastic Oscillator better and become rich. For more trading tips on the Stochastic go to stochastic oscillator

Explore The Secrets Of Forex Trading

By Rudolf Brits

In the world of Forex nothing is so out of place. It appears that even robots have found their way into the technology. With new programs being developed every day should you be considering finding a robot counterpart? A program capable of sifting through loads of information each day? If it came down to it who would you're taking recommendation from, a robot or a human?

Personally I am a large follower in the robots. You'd be surprised at how smart androids are. The reason for this I feel is kind of simple because robots don't count feelings they count numbers. They put the chances in your favor without any doubt.

The currency exchange is just one huge game, it's you one guy trying to get by a market of millions. It's hard work and I have met few folk who can claim to have made their living threw forex.

This of course is changing, each day more and more folks are ditching the standard approach of reading books and taking courses and taking a new way out. They're buying up to 10 screens and connecting them to programs. Programs which are designed to use market flaws and can notice them much quicker than their human opposite number.

The thing is that folk just can't sieve through data quick enough, androids see numbers where we see words. They see values where we see meanings. It's not surprising that folk can't beat robots in chess. A robot makes no mistakes just because he is as good as his programmer.

This is why I think the first class programs are truly quite the nick. It is nearly as if people are selling personal 'get rich' schemes. Take your chances and buy a program or do your research and buy something tried and proved.

No matter how I look at it a robot just beats a human. Sure he would lose you some money but with the percentages in your favor do you really believe your robot won't pay himself off? He's a machine made for making you money, and I bet it should be the best investment you may ever make. foreign exchange robots can make it simple for you, they can make it as simple as comparing some numbers and seeing where you need to make money today. They will relay all of the info that has relevancy to you and do it with such precision and accuracy that you'll be absolutely amazed.

Don't involve emotions in business, let a robot do the thinking for you and let the money start pouring in. Quite frankly I believe you'd be nuts, positively nuts not to speculate in one of these. It's what we call a marvel of modern technology or at least that is how history will remember them.

So there is no debate and there never will be. Androids are the future, androids are faster, smarter and more efficient then we may ever be. Get a robot and start watching the money pile up. - 23309

About the Author:

Johan Brits finally became successful at trading forex after he learned the secret of the trade. Follow him on Be Share Wise were he explores some of his secrets.

Future Of Economic Growth Is India

By Mike Swanson

We all know that there are a few countries that are known by many other countries as "third world". Why, and what is a "third world" country anyway? There are many discussions on this topic, but when you look into the matter you will find that the only real explanation is that those countries are short on cash and that they owe other countries money. A few years ago India was one of those countries, but it should be safe to say that India is out of the financial rut, or at least they are coming out of it, because the India economy is growing very rapidly.

The biggest thing that put India on the map was the roll Bollywood played in the world of cinema. Now for those of you who do not know what Bollywood is, it is India's take on Americas Hollywood, it is the City of Mumbai in India and is the city were all of the movie stars live.

India has made a huge name for herself in the movie industry over the last few years, but it is safe to say that this is not the only industry that put India on the map.

Yes, it all started with the movie industry, but there are other industries that lent a hand. The tourism industry also made a difference to how the world saw India. It was no longer a place packed with poor people. To the tourist it was a spiritual place, a place were real people lived.

You can tell that they have just by taking a glance at their tourism industry. The Indian tourism industry is one of the largest in the world, with thousands of American tourist flocking that way for a holiday every year, not to mention tourist from other countries.

The medical Industry has also played a large role in putting this great country on the map. This is because medical care is so cheap here. They also offer some of the best health care in the world, which is why so many people come from all over the world to get their operation done in India. - 23309

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For more on India and investing in emerging markets click here to receive our bric nations report.

Professional Forex Trading - How The Pros Trade

By James Oleander

Almost anyone can become a forex trader, because you dont need any highly specialized skills to succeed, and you definitely dont need a degree to be successful. As long as you have the basic aptitude for trading, you should be ready to begin.

However the ability to acquire employment at some of the higher-end, established financial institutions that deal in foreign exchange does take some work. It is important to have those valued qualifications and proper network of contacts. However, if you choose to conduct foreign exchange activities for yourself, with your own capital, then in addition to your own computer with internet connection, you don't need any qualifications at all.

In fact, there quite a few traders who make a living on the foreign exchange market trading on their own, from their own homes! In fact, although some do boast of degrees in finance and business, most will tell you that those degrees are not necessarily the reason for their "Forex" success. This further cements the point that trading in Forex markets does NOT require the specialized, formal training required for other areas of finance.

So what exactly are the skills need to tackle the foreign exchange market?

The only knowledge that will assist you with forex trading is a basic understanding of mathematical principles, especially basic arithmetic. Your success is more likely to be determined by whether or not you have certain useful character traits rather than a specific skill set.

There are other less tangible skills needed to succeed in Foreign exchange markets, but these are no less significant. You must be prepared to have an even-keel when approaching the market. Losses and setbacks are inevitable. The key is to able to persist beyond these temporary losses and continue on-- in fact, early on, when you are acquainting yourself with the market, don't be surprised if you are dealt a major setback or two. It's in the very nature of the market and of the learning process. So stay focused on the long term.

Another character trait you will need to make this work is discipline. You must be able to stick with your game plan even if you start losing money in the short term. You have to remember that the trading system will work in the long run and not lose your nerve or stop using the system. If you start putting down too much money and losing focus after you take a few hits, you shouldnt get involved with forex trading.

So fundamentally, everyone on paper can become a successful trader on the foreign exchange market, no matter what your background. But in practice, it will be those who have the ability to stay focus and disciplined in the face of volatility and uncertainly. It is only with this seriousness of mind that you can venture into the foreign exchange market and use these markets for their extensive opportunities for profit and revenue! - 23309

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