The Best Techniques For Forex Success

What are the best Forex trading techniques to use to enjoy Forex trading success? In this article we will look at some time tested techniques, you can easily apply for bigger Forex profits.

All the best Forex trading systems are simple and yours needs to be simple too, if you make your trading system to complex, it will simply break in the brutal world of trading now, lets look at some techniques you can put into your Forex trading strategy to make it successful.

The first Forex trading technique you need to become familiar with is basic technical analysis and learning how to read simple bar charts. You need to be able to spot areas of support or resistance that are important. The bar chart gives you a visual picture of the trend and once you have this, you can decide if levels of resistance are going to hold or break but how do you this?

If you want a simple Forex trading technique which works and will continue to work simply watch for significant levels of support or resistance to break and go with the break. You don’t have to guess or predict you simply trade the reality of the price break and go with it. This method is simple and effective and if you look at any currency chart, you will see all the big trends start there trends from these breakouts and also continue there trends from them so its timeless, easy way to make some great profits.

You need to look for levels that others traders consider important so look for levels that have been tested between four and six times and in breakout trading, its the more tests the better. Most traders don’t trade breakouts, as they want to buy high and sell low but this is simply not possible in Forex trading and involves prediction which is just hoping or guessing. If you trade breakouts, you let the market tell you where prices are going and trade the reality of price change; this method therefore, will get you in on all the best trends and profits.

You can put your stop close below the breakout point and then you need to learn another key Forex trading technique which is how to cope with volatility and stay with the trend, by learning how to trail your stop correctly.

Most traders try to restrict risk too much and end up creating it. If you look at the big trends they last a long time and you must have the confidence and the courage, to hold your stop outside of normal volatility.

A good way to do this is to trail your stop behind a key simple moving average and the 40 day MA is an excellent one to use. Sure, you give a bit back at the end of the trend but you have too as no one know when a big trend will end. Always keep in mind, if you caught just 60% of every major trend you would make a huge amount of money.

You must accept short term dips into your open profit, to stay with big trends and most Forex traders are not capable of using this Forex trading technique. They always want to have their stop to close and get stopped out with a minor profit, when they could have had a huge one.

Acceptance of short term open equity dips is essential to making money long term, so make sure you never place a stop to close and keep your eye on the big profits from the big trends.

If you learn breakout trading and how to trail your stops correctly, you will have two Forex trading techniques which you can put in your Forex trading strategy and enjoy some great Forex profits.

 

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Stock Exchange

stock exchange, (formerly a securities exchange) is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks (see stock valuation).
There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securites.

Role of Stock Exchange

Raising capital for businesses
The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public.[2]

Mobilizing savings for investment
When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels and firms.

Facilitating company growth
Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion.

Redistribution of wealth
Stock exchanges do not exist to redistribute wealth. However, both casual and professional stock investors, through dividends and stock price increases that may result in capital gains, will share in the wealth of profitable businesses.

Corporate governance
By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government. Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privately-held companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors). However, some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies. The dot-com bubble in the early 2000s, and the subprime mortgage crisis in 2007-08, are classical examples of corporate mismanagement. Companies like Pets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan (2001), Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International Group (2008), Lehman Brothers (2008), and Satyam Computer Services (2009) were among the most widely scrutinized by the media.

Creating investment opportunities for small investors
As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors.

Government capital-raising for development projects
Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

Barometer of the economy
At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.

Requirement By Stock Exchange

Companies have to meet the requirements of the exchange in order to have their stocks and shares listed and traded there, but requirements vary by stock exchange:

* Bombay Stock Exchange: Bombay Stock Exchange (BSE) has requirements for a minimum market capitalization of Rs.250 Million and minimum public float equivalent to Rs.100 Million.

* London Stock Exchange: The main market of the London Stock Exchange has requirements for a minimum market capitalization (£700,000), three years of audited financial statements, minimum public float (25 per cent) and sufficient working capital for at least 12 months from the date of listing.

* NASDAQ Stock Exchange: To be listed on the NASDAQ a company must have issued at least 1.25 million shares of stock worth at least $70 million and must have earned more than $11 million over the last three years.

* New York Stock Exchange: To be listed on the New York Stock Exchange (NYSE) a company must have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years.

Future of Stock Exchange

The future of stock trading appears to be electronic, as competition is continually growing between the remaining traditional New York Stock Exchange specialist system against the relatively new, all Electronic Communications Networks, or ECNs. ECNs point to their speedy execution of large block trades, while specialist system proponents cite the role of specialists in maintaining orderly markets, especially under extraordinary conditions or for special types of orders.

The ECNs contend that an array of special interests profit at the expense of investors in even the most mundane exchange-directed trades. Machine-based systems, they argue, are much more efficient, because they speed up the execution mechanism and eliminate the need to deal with an intermediary.

Historically, the 'market' (which, as noted, encompasses the totality of stock trading on all exchanges) has been slow to respond to technological innovation, thus allowing growing pure speculation to continue. Conversion to all-electronic trading could erode/eliminate the trading profits of floor specialists and the NYSE's "upstairs traders", who, like in September and October 2008, earned billions of dollars selling shares they did not have, and days later buying the same amount of shares, but maybe 15 % cheaper, so these shares could be handed to their buyers, thereby making the market fall deeply.[citation needed]

William Lupien, founder of the Instinet trading system and the OptiMark system, has been quoted as saying "I'd definitely say the ECNs are winning... Things happen awfully fast once you reach the tipping point. We're now at the tipping point."

One example of improved efficiency of ECNs is the prevention of front running, by which manual Wall Street traders use knowledge of a customer's incoming order to place their own orders so as to benefit from the perceived change to market direction that the introduction of a large order will cause. By executing large trades at lightning speed without manual intervention, ECNs make impossible this illegal practice, for which several NYSE floor brokers were investigated and severely fined in recent years.[6] Under the specialist system, when the market sees a large trade in a name, other buyers are immediately able to look to see how big the trader is in the name, and make inferences about why s/he is selling or buying. All traders who are quick enough are able to use that information to anticipate price movements.

ECNs have changed ordinary stock transaction processing (like brokerage services before them) into a commodity-type business. ECNs could regulate the fairness of initial public offerings (IPOs), oversee Hambrecht's OpenIPO process, or measure the effectiveness of securities research and use transaction fees to subsidize small- and mid-cap research efforts.

Some[who?], however, believe the answer will be some combination of the best of technology and "upstairs trading" — in other words, a hybrid model.

Trading 25,000 shares of General Electric stock (recent[when?] quote: $7.54; recent[when?] volume: 216,266,000) would be a relatively simple e-commerce transaction; trading 100 shares of Berkshire Hathaway Class A stock (recent quote: $72,625.00; recent volume: 877) may never be. The choice of system should be clear (but always that of the trader), based on the characteristics of the security to be traded.

Even with ECNs forming an important part of a national market system, opportunities presumably remain to profit from the spread between the bid and offer price. That is especially true for investment managers that direct huge trading volume, and own a stake in an ECN or specialist firm. For example, in its individual stock-brokerage accounts, "Fidelity Investments runs 29% of its undesignated orders in NYSE-listed stocks, and 37% of its undesignated market orders through the Boston Stock Exchange, where an affiliate controls a specialist post."

Forex Currency Trading System

One has to understand what a Forex Currency Trading System is before they start their search. In fact the first question you should ask yourself is what is it you are ultimately looking for? A way to increase or make profit? A more efficient trading platform? A forex trading strategy that works? A software system that will allow you to test and develop your own trading strategies? If you find yourself answering yes to these questions then you should realize that a complete Forex Currency trading System has many components. You may have one part of the whole system and are searching for other parts for a complete Forex Currency Trading System or perhaps get started in developing your own system.

Whatever the case may be, Swiss Capital can help you achieve these goals. From helping you access the right market at the best rates, to increasing your profits by helping you create automated trading and algorithm based execution systems.

Pre-Currency Trading Era – The 1950s

Entering into the 1950s, the United States of America had a distinct advantage over war-torn Europe. While Germany was heavily sanctioned, England, France, Italy, and several other Old World nations were just coming to terms with the heavy investment needed to rebuild their countries.
As a way to make it easier for the rest of the world to rebuild, the Bretton Woods Agreement was adopted. It was innocuously simple: in an effort to keep the United States of America (USA) from buying everything in sight, the Bretton Woods Agreement kept the USA in check by requiring all foreign currencies be pegged to the US Dollar. Some pegs were strong, some pegs were weak, but at the end of the day they never moved more than 1% in any direction. Like today's problem with the Chinese Yuan, forced to a peg against the dollar, it kept a constant, controlled flow of US dollars out of the country.
The peg would not have been so bad if not for the fact that the US dollar also had a unique relationship with gold. Just like currencies, gold was pegged to the dollar at a fixed value of US$35/ounce. What made it even worse was that US currency, at the time, was directly exchangeable for gold. This strategy was fine as long as the Fort Knox gold reserves exceeded $23 billion.
After World War II, the USA became the primary economic super power. Many foreign countries began to acquire US currency in lieu of gold. The dollar gained prominence in a way no other currency ever had before.
At the same time, we began to see the rebuilding of the Old World and foreign trade began to gain momentum. In 1950, foreign countries held US $8 billion. We also saw the oil business begin its ascent as a prominent import/export industry.

History of Forex

The Forex trading market is a relatively new phenomenon. Never before in the history of the world have we seen such an amazing event. In only 30 years, this industry has developed from almost nothing to a daily US$1.5 trillion market. How did this happen? Was it by design? Or was it by accident?
Well the answer falls somewhere in between. There are three distinct time frames that set the stage for today's style of currency trading. The first time frame is the pre-currency trading era of the 1950s. The second time frame is the worldwide, politically volatile atmosphere of the 1970s. The third time frame is what has occurred in this free market economy since the demise of the gold standard 30 years ago. In each time frame, there have been three catalysts: war, gold, and foreign banks- that have played a significant role in propelling currency development.

Forex MegaDroid Price Is Going Up

Hello everybody. I received an e-mail from a Forex MegaDroid promoter (Andreas Kirchberg of Forex Killer fame) a few minutes ago notifying me that the Forex MegaDroid developers are going to increase the price of their product. The way I see it either they’re just saying this to drive up sales (last minute rush sort of thing) or they really mean it. Your guess on his is as good as mine. Right now the Forex MegaDroid EA costs $97. I tried to find out how much they’re going to raise the price but unfortunately I did not find anything. But I don’t think it’s going be raised all that much - maybe to $140? I’m basing my speculation on the same tactic that the FapTurbo developers used. They too said they’re going to raise the price, raised it once, then they said they’ll raise it again but that second time never happened - could this be a repeat of this tactic? Could Forex MegaDroid be related in some way to FapTurbo? Anyways, enough of my speculations.

Here is a copy of the e-mail I received (this is an excerpt - I removed some stuff that was not pertinent to the subject):

The launch of Forex MegaDroid is almost over and, as
promised by John and Albert, the price is going up.

Remember, Forex MegaDroid has unique features that NO other
robot on the market has:

- Broker buster in-built mechanism (no broker in the world
will ever know you are trading with it and hence cannot
stop you from doubling your account every month)

Consistency - Year-by-year impressive performance. In 2009
alone the robot has almost QUADRUPLED the deposit!

- Multi-Market Performance – the only robot that is
capable of trading with 95.86% accuracy in every single
market condition: trending, non-trending, volatile,
non-volatile. This is HUGE since it’s the reason the robot
is able to trade every month with an uncanny accuracy rate.

- New Artificial Intelligence technology (RCTPA) which
allows the robot to see what will happen in the market
within the next 2-4 hours with unheard of accuracy rates.

Foreign exchange Market

The foreign exchange market (currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. ^[1]FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system until 1971.

Presently, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.^[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.^[3]

The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollars, Euros, Japanese yen, Pounds Sterling, etc., and the need for trading in such currencies.

GAIN Capital's FOREX.com Named Best Retail FX Platform by Profit & Loss Magazine for Second Consecutive Year

NEW YORK and LONDON, June 9, 2009 - For the second consecutive year, Profit & Loss Magazine announced GAIN Capital's FOREX.com as "Best Retail FX Platform" at the 2009 Digital Markets Awards Ceremony.

Profit & Loss' Digital Markets Awards recognize the efforts of the foreign exchange (forex) services industry in providing the tools and functionality that make trading forex more efficient. Winners are selected by professionals in the industry.

"Being voted as the best by customers and peers is a great honor and validates our belief that GAIN offers a market leading FX platform," said Glenn Stevens, CEO, GAIN Capital. "Winning the 2009 Profit & Loss Reader's Choice Award for the second consecutive year is testament to GAIN's clear leadership in the retail forex market."

In addition, GAIN Capital's Chairman and Founder Mark Galant was inducted into the Profit & Loss Hall of Fame for his significant contributions to the growth and success of the forex industry.

"I would also like to personally congratulate Mark for his well-deserved recognition," commented Mr. Stevens. "Mark's reputation as an industry pioneer and evangelist for retail forex is well-known. Notwithstanding, receiving the People's Choice award is further tribute to his positive impact on the FX industry as a whole."

About GAIN Capital

GAIN Capital is a market leader in the rapidly growing online foreign exchange (forex or FX) industry. Founded in 1999 by Wall Street veterans, GAIN now services clients from more than 140 countries and supports average trade volume of nearly $200 billion per month with its customers and trading partners.

GAIN Capital provides execution, clearing, custody, and technology products and services, supporting over 50 correspondent and white label arrangements with broker/dealers, Futures Commission Merchants (FCMs) and other financial services firms around the globe. The company also operates FOREX.com (www.forex.com), one of the largest, best-known brands in the retail forex industry.

With offices in New York City, Bedminster, New Jersey, London and Tokyo, GAIN Capital and its affiliates are regulated by the Commodity Futures Trading Commission (CFTC) in the U.S., the Financial Services Authority (FSA) in the United Kingdom, and the Financial Services Authority (FSA) in Japan. For company information, visit www.gaincapital.com, or for trading information, visit www.forex.com.

Forex Trading Method

(1) What's the Blog's Trading Method?
A trend following approach on the Daily-Chart.

(2) How are Stops calculated?
By the Average True range Indicator (ATR 14).
Example
For USD/JPY the ATR (14) value on the Daily-Chart is 1,55. This corresponds to 155 Pips. An approximation of the ATR-value is deducted from the price in an Uptrend or added in a Downtrend.

The approximation is between a full ATR (=155 PIPs) and a half ATR (= 78 PIPs) depending on technical supports and resistances as well as round numbers (USD/JPY 101,00, 101,50, 102,00 etc.).

(3) How is the target calculated?
The Stop-Loss distance in Pips is at the same time the distance to the Target. The Risk-Reward ratio is always 1:1. Target prices can vary a couple of pips due to support and resistances.

(4) How many signals per week are generated?
There is a maximum of 5 signals per week (Monday-Friday).

(5) Why get signals published at 18:00 GMT?
Because the trading method is based almost exclusively on technical analysis and usually after 18.00 GMT there are no more important fundamental announcements.

(6) What happens when neither Stop-Loss nor Target is met?
When neither is met until the subsequent day at 18:00 GMT , the trade will stay open for another 24 hours or closed at the opening price at 18:00 GMT.

(7) How many currency pairs are available?
There are 20 currency pairs available: EUR/USD USD/JPY GBP/USD, USD/CHF, EUR/JPY, GBP/JPY, CHF JPY, AUD JPY, NZD JPY, CAD/JPY, EUR/CHF, EUR/GBP, EUR/CAD, EUR/AUD, GBP CHF, AUD/USD, NZD/USD, USD/CAD, AUD CAD, AUD NZD.