Currency Day Trading News: Sovereign Debt under Pressure Euro Down

Euro is under pressure again, this is an article by Bradley Davis Of Dow Jones Newswire

NEW YORK (Dow Jones)--The euro fell against the dollar Thursday as concerns once again heated over the region's simmering issues of sovereign debt.

Illustrating the increasing worry over the region's fiscally stressed periphery, the cost to insure against default on government debt issued by Portugal, Ireland and Spain all hit record highs.

"Pressure relating to the debt crisis is rising in the euro zone," said analysts at Commerzbank in Frankfurt.

Thursday morning, the euro was at $1.3703 from $1.3780. The dollar was at Y82.26 from Y82.30, while the euro was at Y112.72 from Y113.42. The U.K. pound was at $1.6132 from $1.6118. The dollar was at CHF0.9694 from CHF0.9713.

The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 77.928 from 77.652.

Euro-zone officials were out in force to calm markets, with European Commission President Jose Manuel Barroso telling reporters in South Korea, where he was attending the summit of the Group of 20 industrialized and emerging nations: "The EU is ready to support Ireland." Full article here

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Forex Day Trading - Forex Hedging

Hedging is defined as holding two or more positions at the same time, where the purpose is to offset the losses in the first position by the gains received from the other position.

Usual hedging is to open a position for a currency A, then opening a reverse for this position on the same currency A. This type of hedging protects the trader from getting a margin call, as the second position will gain if the first loses, and vice versa.

However, traders developed more hedging techniques in order to try to benefit form hedging and make profits instead of just to offset losses.

For the full article go to earnforex.com

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Currency Day Trading - Leave Out the Emotions

The key to making money in the currency exchange market is to avoid emotional decisions and to follow a carefully thought out strategy that takes the current market and history into account. Going with your gut is not the way to go in the Forex market. Going with your gut could cost you money. Forex trading is a highly volatile market where emotions tend to run high. Emotions can influence your trading decisions, unless you have a strategy planned in advance, and stick to it, no matter what you think you're seeing at the moment. The keys to success in Forex are system, analysis and perseverance.

Read the full article at earnforex.com

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Forex Day Trading - Economics for Fundamental Analysis

Let's begin our brief examination of fundamental analysis by observing that up until a century ago there was only one school of analysis, and there were still a large number of self-made trading millionaires. That one school of analysis, of course, was fundamental analysis. Technical analysis has been with us as an organized discipline since the end of the 19th century, but fundamental analysis has been here since the beginning of economics in the days of Lydians and Persians, at the very least. Those new to online Forex trading can benefit from this little detail as they make their decisions about the merits of the two schools of analysis.

Fundamental analysis aims to predict future market action on the basis of economic data and news. While technical analysis focuses strictly on the price, fundamental analysis studies the economic, political, and social dynamics in an economy in order to reach conclusions about an asset, which is a currency pair in Forex of course.

Read the full article at earnforex.com

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Forex Day Trading -Forex Market Indicators

All the investors in the forex market often base their decisions in trading upon economic and political news around the world. Forex and stock market depend on the countries economy. Using of industrial production index is the best way to predict the market trends in the future. All the traders are using this market indicator specially the traders who want to trader for a long time because if a country's economy is improving definitely its currency rate goes up and if the economy is decreasing, currency rate will automatically goes down.

Read the full article at earnforex.com

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Forex Day Trading - Spreads, Commision and Costs

The forex market is quickly becoming one of the most popular markets for trading.

Not only are the experienced traders looking to this market to maximize their trading returns, but many new, individual investors are now able to trade the Forex market — just as they do stocks and futures.

More and more individuals are seeing Forex not only as a new way to diversify their portfolio, but are also finding that it is becoming the most profitable component of their investments.

And that's because of the many advantages Forex offers over other markets like stocks or commodities. Here's what you will typically see advertized about Forex:

— Unparallelled liquidity. It is the largest financial market in the world by far. Almost $2 trillion being traded daily!

— Excellent leverage potential. Individual investors have access to leverage of 100:1 and even 200:1

— No Commissions (more on this later on)

— Low trading costs.

And yes, the Forex market really does offer all these advantages.

But the last two points above talk about costs, and that's what we'd like to focus on in this article.

Read the full article at earnforex.com

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Forex Day Trading = Forex vs Futures

Todays current futures market is quite unlike the futures of the 19th century. Todays future market is a worldwide one that includes manufactured goods, financial currencies and treasury bonds, and agricultural products.

When you speculate on futures it is not the actual good that is speculated upon rather it is the contract for the goods that is traded as value. Every futures contract includes a buyer and a seller. The following is an example of a futures speculation: A farmer agrees to deliver 1000 bushels of corn to a baker at a price of $5.00 a bushel. If the daily price of corn futures falls to $4.00 a bushel, the farmer's account is credited with $1000 ($5.00 — $4.00 X 1000 bushels) and the baker's account is debited by the same amount. Futures accounts are settled every day.

Read the full article at earnforex.com

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Forex Day Trading - Forex Advantages over Futures or Stocks

There are many different advantages to trading forex instead of futures or stocks, such as:

1. Lower Margin

Just like futures and stock speculation, a forex trader has the ability to control a large amount of the currency basically by putting up a small amount of margin. However, the margin requirements that are needed for trading futures are usually around 5% of the full value of the holding, or 50% of the total value of the stocks, the margin requirements for forex is about 1%. For example, margin required to trade foreign exchange is $1000 for every $100,000. What this means is that trading forex, a currency trader's money can play with 5-times as much value of product as a futures trader's, or 50 times more than a stock trader's. When you are trading on margin, this can be a very profitable way to create an investment strategy, but it's important that you take the time to understand the risks that are involved as well. You should make sure that you fully understand how your margin account is going to work. You will want to be sure that you read the margin agreement between you and your clearing firm. You will also want to talk to your account representative if you have any questions.

Read the full article at earnforex.com

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Forex Day Trading - ECN vs Market Makers

This article assumes some knowledge of the way the forex market and forex brokers work. If you are not familiar with this, we recommend that you first read our Structure of the Forex Market and Structure of Forex Brokers articles. Contrary to popular belief, ECN's are not superior to Market Makers in every way. There are advantages and disadvantages on both sides.

Minimum Deposits

There are retail market makers out there today that allow traders to begin with $1 in their accounts. That’s not to say that this is a great feature, but it does present options to people who may not have the kind of money it takes to open a Currenex account. It’s a good thing too, because ECN contract sizes are often multiples of $1 million, and some ECNs expect a daily volume of $25 million. Shackled with those types of minimums, you had better be well Capitalized (with a capital “C”).

Read the full article at forextradingzone.org

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Forex Day Trading - Trend trading Buying on dips and selling on rallies

Those members who have purchased our systems will quickly acknowledge that we have a fondness for trading systems that go long on dips and short on rallies. We have developed at least one system with that strategy in each of the markets we trade. In the S&P market and the Bond market we have developed more than one system that takes this preferred approach.  The benefits of buying into an uptrend on dips and selling into a downtrend on rallies are probably obvious.

If we compare the dips and rallies approach to entering on breakouts we can see that the "dips" entry strategy allows us to enter at cheaper prices with less risk and more profit potential. That is a nice combination of benefits. In this Bulletin we will share some of our conclusions from our many hours of research on how to identify these potentially profitable opportunities. 

Read full article at TradeJuice.com

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Forex Day Trading - Hedging a Good Thing?

It's easy to describe what an unhealthy risk is: scuba diving with a Great White Shark while holding a raw, rib-eye steak in your hand, for example. But it's a little harder to discern what a healthy risk is. Some seem to think safety in numbers amounts to a healthy risk -- the more partakers, the less the risk. In other words, as measured by head count, it looks like a lot of investors have followed Wall Street's lead: Living on the h-EDGE fund is, indeed, a safe bet. A December 15 New York Times article reports:

"Hedge funds have grown at supersonic speed [to become] the most important players in today's financial markets."

And, a Wall Street Journal column from the same day explains just how "important" IMPORTANT really is:

• In the first 10 months of 2004, $106.6 billion flowed into hedge funds vs. $72.2 billion in all of 2003.
• Assets in hedge funds have grown by 260% over the past five years, to a $1 trillion total ($1,000,000,000,000).

With this many zeros, it's natural to think. Superior performance in hedge funds must account for the rapid growth

Read full article at Tradejuice

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Forex Day Trading - Position Sizing is Important

Position sizing is a simple, effective trading strategy to maximize profits.  Even with a great  trading system, if you don't manage your money properly, you're just polishing the brass handles of a sinking ship.  Yes, even if you have a great strategy, poor position sizing will run your financial ship of opportunity into the rocks.

This is especially so if your trading account is not very large.  For the sake of simplicity, lets' say you have an account of $100 and you invest $25 per trade.  Obviously, if you incur only four losses in a row, your account would be wiped out!

On the other hand, what if you invested only $2 per trade with the same account (the famous 2% rule)?  It would take a string of fifty losses to clean you out.  But, being unnecessarily "safe" can also result in a loss in profits.

Read the full article at TradeJuice.com

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Forex Day Trading - Trading Frequency

When building or evaluating trading systems the many benefits of systems that trade very frequently are often overlooked. A system that trades frequently has many advantages over less active systems that appear to be more desirable because they have better performance ratios. If a strategy is profitable the more it trades the more money we should make. I apologize for stating what should be obvious but you would be surprised at how often I hear discussions about selecting systems with the highest level of "expectancy" or highest "profit factor" without relating these measurements to the system's trading frequency.

Simply stated, our goal should be to show the most profit with the least amount of risk and trading frequency plays a critical role in maximizing profitability and controlling our risk.

Trading frequency represents opportunity for profit. The more opportunities we can find the more profit we should expect.  Read the full article at Tradejuice

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Currency Day Trading Global trade and Forex

The global economy facilitates the fluid movement of products and services around the globe, a trend that has continued virtually uninterrupted since the end of World War II. It is unlikely that the architects of this system could have envisioned what it would become when they met in the New Hampshire resort of Bretton Woods in July 1944, but much of the infrastructure they brought into existence continues to be relevant in today's global market. Even the name "Bretton Woods" lives on in a modern guise, characterized by the economic relationship the U.S. has with China and other rapidly developing economies. Read on as we cover the modern history of global trade and capital flows, their key underlying economic principles and why these developments still matter today. 

Read full article at Investopedia

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Forex Day Trading - Money Management by a Pro

Put two rookie traders in front of the screen, provide them with your best high-probability set-up, and for good measure, have each one take the opposite side of the trade. More than likely, both will wind up losing money. However, if you take two pros and have them trade in the opposite direction of each other, quite frequently both traders will wind up making money - despite the seeming contradiction of the premise. What's the difference? What is the most important factor separating the seasoned traders from the amateurs? The answer is money management.

Like dieting and working out, money management is something that most traders pay lip service to, but few practice in real life. The reason is simple: just like eating healthy and staying fit, money management can seem like a burdensome, unpleasant activity. It forces traders to constantly monitor their positions and to take necessary losses, and few people like to do that. However, as Figure 1 proves, loss-taking is crucial to long-term trading success.

by Boris Schlossberg, read full article at Goforex.net

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Currency Day Trading - Make Money Day Trading Possible?

What if I was to tell you that day trading forex could potentially be the most dangerous and unprofitable activity for you and your portfolio. Honestly, there are better ways to trade forex than day trading, and easier ways to trade with much higher odds, but first let me explain these wild claims... Day Trading Forex Currency

Not only am I about to share with you the truth about forex day trading, I believe I will change your expectations and move your thinking towards trading higher timeframes with the aim of taking advantage of slightly longer term moves over several days of trading activity.

Read more: http://www.articlesbase.com/currency-trading-articles/day-trading-forex-currency-can-you-really-make-money-day-trading-forex-markets-2969459.html#ixzz10lfbdy8R 
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Currency Day Trading - Stop using your Stops?

Bob Prechter has done a lot of thinking about how to trade successfully. One startling conclusion he's come to: traders should often avoid using stops.

Here's why: If you analyze the market you're trading, you shouldn't need a stop to tell you when to get out of the trade.

In fact, the point of using Elliott wave analysis is to determine where the market is in a wave count, so that you are able to see where the trend is most likely to turn. 

Bob Prechter: I think people lose more money on stops than anything else. When a trader suffers five stop-outs at 10 S&Ps contracts apiece, that trader now has 50 points to make up. Every book says to use stops, but it is often a bad idea. Before you recoil in horror, consider that I know a futures trader who steadily makes $200,000-$400,000 every year, and he neveruses stops.

Read the full article at Tradejuice

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Currency Day Trading - How to become a Pro

Over the last few years, there has been a great deal of interest in Forex trading. This interest has been fueled by the fact that people are now starting to look for greener pastures, especially after the housing bubble burst in various countries and the slow down in the economy. Amidst all these issues, it is unavoidable that most of us feel the urge to learn to trade forex and keep abreast of investment opportunities that are made available by this exciting market.

Read more: http://www.articlesbase.com/day-trading-articles/forex-trading-how-anyone-can-trade-forex-like-a-pro-1565540.html#ixzz10aftNfre 
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Currency Day Trading - Hard Way to Money

Anyone who has ever tried their hand at forex trading will know just how difficult it is to make money on a consistent basis. It becomes a lot easier when you use a few technical indicators to help you find high probability set-ups, particularly when you focus on the longer term charts such as the 4 hour or daily charts, for instance. However it is significantly more difficult when you try and trade the markets on a short-term basis. So why is this?

Well the main reason is simply because technical analysis does not always work as well on the short-term charts. You only have to spend a few hours watching the 1 minute and 5 minute charts to find this out for yourself.

Read the full article at: theforexarticles

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Currency Day Trading - The History of Forex

The origin of Forex trading traces its history to centuries ago. Different currencies and the need to exchange them had existed since the Babylonians. They are credited with the first use of paper notes and receipts. Speculation hardly ever happened, and certainly the enormous speculative activity in the market today would have been frowned upon.

In those days, the value of goods were expressed in terms of other goods(also called as the Barter System). The obvious limitations of such a system encouraged establishing more generally accepted mediums of exchange. It was important that a common base of value could be established. In some economies, items such as teeth, feathers even stones served this purpose, but soon various metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value. Trade was carried among people of Africa, Asia etc through this system.  Read the full article at Earnforex.com

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