The GBPUSD has carved out a head and shoulders top from the October low. More importantly, an extremely rare diamond top appears to forming since the early summer months. A diamond top is really the combination of an expanding and contacting triangle. A better short entry may present itself in early 2010. Cable has reached former resistance (now support) at 16130 but trend structure is bearish below 16415. Former supports from 16165 to 16225 are now probable resistance levels. Levels to expect some support in the weeks(s) ahead are 16030, 15920, and 15835. The big trade will come in 2010 from break of the diamond top.
Sunday, December 20, 2009
Currencies Mark Time at end of Strong Dollar Week
US Dollar / Canadian Dollar
The rally and decline from 10200 counts as a 1-2 base. What I mean by that is that the rally from 10200 is impulsive and the decline from 10875 is corrective. There is little question that the decline is a correction (albeit a complex one). Risk can be moved to 10550. A break above 10875 would shift focus to Fibonacci extensions at 11070 and 11490.
US Dollar / Japanese Yen
Trading above 9080 would signal a breakout and warrant a long position (although risk is not yet clearly defined). Near term, the pair remains range bound and there is the risk of a turn lower and drop below 8940. Longer term - "The USDJPY low in November has that 'look' and feel of an important bottom. The low was in a spike fashion and occurred at the midline of a well defined multiyear channel. Structurally, the decline from the 2007 high (12420) may be a diagonal. Sharp rallies tend to follow diagonals. Keep this longer term picture in mind as we wait for a clear entry."
Japanese Yen to Fall Against US Dollar on Bond Yields Outlook
Dec 19, 2009 (DailyFX via COMTEX) -- The US Dollar pushed sharply higher against the spectrum of major currencies last week as markets reacted to a decidedly upbeat interest rate announcement from the US Federal Reserve. Most significantly, Ben Bernanke and company said "deterioration in the labor market is abating," which traders took as validation of the boost to the priced-in Fed rate hike forecast over recent weeks that was set off by better than expected outcomes for November's nonfarm payrolls and retail sales reports. The US central bank is widely expected to look at the jobless rate as the key gauge for timing a reversal of its ultra-loose monetary stance, and a Credit Suisse gauge now shows that the market is pricing in 81 basis points in monetary tightening over the next 12 months, up from just 52bps at the beginning of December.
Meanwhile, the Bank of Japan struck a decidedly dour tone, saying the current momentum of self-sustaining recovery is insufficient and warning that overcoming deflation is a critical challenge, with the bank unwilling to tolerate CPI at or below 0%. The bank added that although the economy is picking up, the pace of improvement will be moderate until the middle of the 2010 fiscal year. This suggests the Japanese central bank may be starting to cave in to pressure from the Ministry of Finance to continue on with its liquidity-boosting asset purchase programs, a prospect that promises to underpin domestic bond prices and keep yields contained as the government issues a record amount of debt to finance the gargantuan fiscal deficit.
On balance, this monetary policy landscape seems to point to gains in USDJPY.
Japanese Yen to Fall Against US Dollar on Bond Yields Outlook Fundamental Forecast for Japanese Yen: Bearish - Bank of Japan Strikes Dovish Tone, Keeps Policy Unchanged - Japanese Firms Plan Record Spending Cuts in the Fourth Quarter
Friday, December 11, 2009
Foreign Exchange and Trade Services
Foreign Currency Travellers Cheques
Travellers Cheques are a safe and easy way to protect your money when you travel. You can encash them only when you need to, and only against your signature, unlike cash which can be stolen and misused by anybody, immediately. Loss of Travellers Cheque can be reported anywhere in the world by making a single phone and the pre-fixed amount on the cheques are made refundable.
Travellers Cheques are offered in major currencies like USD, GBP, Euro, CAD, AUD and JPY. These are available in various denominations to suit your needs. At present HDFC Bank offers American Express Travellers Cheques which are widely accepted at Merchant Establishments and Financial Institutions across more than 200 countries.
Foreign Currency Cash
Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc.
You could avail of Foreign Currency Cash in USD, GBP, EURO, AUD and CAD from our branches offering Foreign Exchange facilities.
Foreign Currency Demand Drafts
You can now avail of our FCY DD facility to make payments for various purposes like:
* Payment of University fees abroad
* Making a gift remittance to a friend or relative
* Payment of application fees for various exams like TOEFL , GMAT etc.
* Payment for medical treatment abroad
* And all other permitted purposes as per the RBI guidelines.
FCY Demand Drafts are issued in seven currencies like United States Dollars (USD), Great Britain Pounds (GBP), EURO, Japanese Yen (JPY), Australian Dollars (AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD).
Foreign Currency Cheque Deposits
You can directly deposit your foreign currency cheques, foreign currency demand draft and Travellers Cheques in to your saving or current account. HDFC Bank will then have the cheques sent for collection and the funds will be credited to your account in Indian Rupees. We accept cheques of various currencies like USD, GBP, Euro, JPY, Australian Dollars, Canadian Dollars, UAE Dirhams, Hong Kong Dollars and Swiss Francs.
Please follow the simple guidelines below to enable faster processing
a. Ensure that your
* Account Number and Name are correct and clear on the payin slip
b. Make sure the Cheque / Draft is countersigned in case of an alteration
* In the payee's name
* In the date
* In the amount
* Or over-writing on the signature
c. Ensure that the amount entered in words and the figures are written correctly.
Please note that Cheques drawn in one currency payable in another country where currency is different will take a longer period to realise and would attract charges of various correspondent banks as per their own tariff schedule over which we do not have any control. For e.g. A cheque drawn in USD payable on a bank in Singapore or Cheque drawn in GBP payable on a bank in South Africa or Cheque drawn in USD payable in Canada.
Cash to Master
Often, foreign ships travel through India and dock their vessels at various ports / harbors in the country. One of the major requirements during such temporary stays, is that of FCY Cash that has to be made available to the Captain of the Ship for covering Crew wages or for other expenses on board the ship.
These requirements are usually met through a facility called "Cash to Master". To collect this cash, the master of the ship has to approach the branch with his passport and a duly filled up application form. This product is available only in United States Dollars, Pounds Sterling and Euro Currencies.
Forexpoint - Non HDFC Bank Account Holders
Now foreign exchange facilities can be availed by customers who do not have accounts with us at any of our branches transacting in Foreign Exchange. You can buy FCY Cash, TC's and FCY DD's from any our branch and also encash your TC's and Cash at our branches (available at select branches only).
Foreign Exchange can be availed against payments by Cash, Cheque or Pay Order/ Demand Draft. A maximum of Rs. 49,999/- (as per Indian Tax Laws) will be accepted in cash and any amount above Rs. 49,999/-, against a Pay Order or Cheque after clearance of the same. You need to carry the required Documentary Proof for issuance of Foreign Exchange.
Travellers Cheques are a safe and easy way to protect your money when you travel. You can encash them only when you need to, and only against your signature, unlike cash which can be stolen and misused by anybody, immediately. Loss of Travellers Cheque can be reported anywhere in the world by making a single phone and the pre-fixed amount on the cheques are made refundable.
Travellers Cheques are offered in major currencies like USD, GBP, Euro, CAD, AUD and JPY. These are available in various denominations to suit your needs. At present HDFC Bank offers American Express Travellers Cheques which are widely accepted at Merchant Establishments and Financial Institutions across more than 200 countries.
Foreign Currency Cash
Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc.
You could avail of Foreign Currency Cash in USD, GBP, EURO, AUD and CAD from our branches offering Foreign Exchange facilities.
Foreign Currency Demand Drafts
You can now avail of our FCY DD facility to make payments for various purposes like:
* Payment of University fees abroad
* Making a gift remittance to a friend or relative
* Payment of application fees for various exams like TOEFL , GMAT etc.
* Payment for medical treatment abroad
* And all other permitted purposes as per the RBI guidelines.
FCY Demand Drafts are issued in seven currencies like United States Dollars (USD), Great Britain Pounds (GBP), EURO, Japanese Yen (JPY), Australian Dollars (AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD).
Foreign Currency Cheque Deposits
You can directly deposit your foreign currency cheques, foreign currency demand draft and Travellers Cheques in to your saving or current account. HDFC Bank will then have the cheques sent for collection and the funds will be credited to your account in Indian Rupees. We accept cheques of various currencies like USD, GBP, Euro, JPY, Australian Dollars, Canadian Dollars, UAE Dirhams, Hong Kong Dollars and Swiss Francs.
Please follow the simple guidelines below to enable faster processing
a. Ensure that your
* Account Number and Name are correct and clear on the payin slip
b. Make sure the Cheque / Draft is countersigned in case of an alteration
* In the payee's name
* In the date
* In the amount
* Or over-writing on the signature
c. Ensure that the amount entered in words and the figures are written correctly.
Please note that Cheques drawn in one currency payable in another country where currency is different will take a longer period to realise and would attract charges of various correspondent banks as per their own tariff schedule over which we do not have any control. For e.g. A cheque drawn in USD payable on a bank in Singapore or Cheque drawn in GBP payable on a bank in South Africa or Cheque drawn in USD payable in Canada.
Cash to Master
Often, foreign ships travel through India and dock their vessels at various ports / harbors in the country. One of the major requirements during such temporary stays, is that of FCY Cash that has to be made available to the Captain of the Ship for covering Crew wages or for other expenses on board the ship.
These requirements are usually met through a facility called "Cash to Master". To collect this cash, the master of the ship has to approach the branch with his passport and a duly filled up application form. This product is available only in United States Dollars, Pounds Sterling and Euro Currencies.
Forexpoint - Non HDFC Bank Account Holders
Now foreign exchange facilities can be availed by customers who do not have accounts with us at any of our branches transacting in Foreign Exchange. You can buy FCY Cash, TC's and FCY DD's from any our branch and also encash your TC's and Cash at our branches (available at select branches only).
Foreign Exchange can be availed against payments by Cash, Cheque or Pay Order/ Demand Draft. A maximum of Rs. 49,999/- (as per Indian Tax Laws) will be accepted in cash and any amount above Rs. 49,999/-, against a Pay Order or Cheque after clearance of the same. You need to carry the required Documentary Proof for issuance of Foreign Exchange.
Foreign Exchange and Trade Services
The following are different methods of transacting in Foreign Exchange and remitting money.
Foreign exchange India
Foreign exchange system in India - The central government in India has wide powers to control transactions in foreign exchange. Until 1992 all foreign investments in India and the repatriation of foreign capital required prior approval of the government. The Foreign-Exchange Regulation Act, which governs foreign investment, rarely allowed foreign majority holdings. However, a new foreign investment policy announced in July 1991 prescribed automatic approval for foreign investments in thirty-four industries designated high priority, up to an equity limit of 51 percent. Initially the government required that a company's automatic approval must rely on matching exports and dividend repatriation, but in May 1992 this requirement was lifted, except for low-priority sectors. In 1994 foreign and nonresident Indian investors were allowed to repatriate not only their profits but also their capital. Indian exporters are also free to use their export earnings as they see fit. However, transfer of capital abroad by Indian nationals is only permitted in special circumstances, such as emigration. Foreign exchange in India is automatically made available for imports for which import licenses are issued.
Because foreign-exchange transactions in India are so tightly controlled, Indian authorities are able to manage the exchange rate, and from 1975 to 1992 the rupee was tied to a trade-weighted basket of currencies. In February 1992, the government began moves to make the rupee convertible, and in March 1993 a single floating exchange rate was implemented. In July 1995, Rs31.81 were worth US$1, compared with Rs7.86 in 1980, Rs12.37 in 1985, and Rs17.50 in 1990.
Because foreign-exchange transactions in India are so tightly controlled, Indian authorities are able to manage the exchange rate, and from 1975 to 1992 the rupee was tied to a trade-weighted basket of currencies. In February 1992, the government began moves to make the rupee convertible, and in March 1993 a single floating exchange rate was implemented. In July 1995, Rs31.81 were worth US$1, compared with Rs7.86 in 1980, Rs12.37 in 1985, and Rs17.50 in 1990.
Bombay Stock Exchange
Bombay Stock Exchange Limited is the oldest Stock Exchange in Asia . Popularly known as BSE it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in India
Bombay Stock Exchange played a pivotal role in the development of the Indian capital market and its index, SENSEX, is tracked worldwide. The Exchange has a nation-wide Reach the presence in 359 cities and towns of India
Bombay Stock Exchange has several achievements to its credit. It is the world's premier exchange in terms of the number of listed companies and the world's 5th in transaction numbers. BSE is the first exchange in India
BSE has won several awards for its efficient and responsible work. The World Council of Corporate Governance with BSE awarded the Golden Peacock Global CSR Award for Initiatives in BSE's Corporate Social Responsibility (CSR). BSE has also won the Asia-Pacific HRM award for its excellent Human Resources practices.
Major Foreign Banks in India are
ABN-AMRO Bank
The history of ABN Amro Bank dates back to the year 1924, when King Willem - I ISSUED Royal Decree declaring the establishment of the Nederlandsche Handel-Maatschappij (Netherlands Trading Society, NTS). The NTS had been established with an aim to promote the trade between the Netherlands and the Dutch East Indie.
Abu Dhabi Commercial Bank Ltd..
Abu Dhabi Commercial Bank (ADCB) is one of the most prominent nationalized banks of the United Arab Emirates (UAE). Three different banks viz. the Khalij Commercial Bank, the Emirates Commercial Bank and the Federal Commercial Bank merged in the month of July 1985, leading to the incorporation of the Abu Dhabi Commercial Bank.
American Express Bank Ltd.
With its headquarters located in New York, U.S., American Express Company is a global financial services provider, also known as "AmEx" in short. American Express had been established in the year 1850, and is well known all around the world for its dedicated Credit Card, Traveler's Check & Charge Card Services.
BNP Paribas
BNP Paribas is one of the oldest banks in the Continent of Europe, and the largest bank in the eurozone (Consortium of countries having adopted the euro as their primary currency), as reported by The Banker Magazine. The bank is present in 87 countries with a 162.700-strong workforce by offering their services to the Bank.
Citibank
Citibank is one of the largest banks in the U.S., and is a part of the Citigroup financial services. Citibank had been founded in the year 1812. Initially its name was City Bank of New York, which was later changed to First National City Bank of New York.
DBS Bank Ltd.
DBS Bank is a Singapore-based bank, and is known to be one of the largest banks to exist in South East Asian Region by Asset Value. The Government of Singapore established the DBS Bank in the year 1968, and it was primarily Aimed at providing development oriented financial services.
Deutsche Bank
Deutsche Bank, headquartered at Frankfurt in Germany, ranks among the leading global business and Securities Banking, Transaction Banking, Asset Management and Private Wealth Management. It is one the world's leading International Financial service providers with roughly Euro 2.2 trillion in Asset and approximately 80.000 employees.
HSBC Ltd.
HSBC Bank is a subsidiary of HSBC Holdings plc, the London based Banking Giant which, according to the Forbes Magazine, is the largest Banking Group in the world, and the 6th largest company in the world as of January 2009.
Standard Chartered Bank
Standard Chartered Bank is a London based bank, currently operating within over 70 nations with more than 1,700 branches and strong workforce 73.000 as of January 2009. Although the bank is located in Britain, still a huge chunk of its revenues originate from the continents of Asia, Africa and Middle East.
Barclays Bank
Barclays GRCB India is led by Samir Bhatia as its Managing Director. In a short period of just two and a half years, Barclays GRCB India has placed itself Amongst the most respected foreign banks in the country that is serving more than 830.000 customers.
The history of ABN Amro Bank dates back to the year 1924, when King Willem - I ISSUED Royal Decree declaring the establishment of the Nederlandsche Handel-Maatschappij (Netherlands Trading Society, NTS). The NTS had been established with an aim to promote the trade between the Netherlands and the Dutch East Indie.
Abu Dhabi Commercial Bank Ltd..
Abu Dhabi Commercial Bank (ADCB) is one of the most prominent nationalized banks of the United Arab Emirates (UAE). Three different banks viz. the Khalij Commercial Bank, the Emirates Commercial Bank and the Federal Commercial Bank merged in the month of July 1985, leading to the incorporation of the Abu Dhabi Commercial Bank.
American Express Bank Ltd.
With its headquarters located in New York, U.S., American Express Company is a global financial services provider, also known as "AmEx" in short. American Express had been established in the year 1850, and is well known all around the world for its dedicated Credit Card, Traveler's Check & Charge Card Services.
BNP Paribas
BNP Paribas is one of the oldest banks in the Continent of Europe, and the largest bank in the eurozone (Consortium of countries having adopted the euro as their primary currency), as reported by The Banker Magazine. The bank is present in 87 countries with a 162.700-strong workforce by offering their services to the Bank.
Citibank
Citibank is one of the largest banks in the U.S., and is a part of the Citigroup financial services. Citibank had been founded in the year 1812. Initially its name was City Bank of New York, which was later changed to First National City Bank of New York.
DBS Bank Ltd.
DBS Bank is a Singapore-based bank, and is known to be one of the largest banks to exist in South East Asian Region by Asset Value. The Government of Singapore established the DBS Bank in the year 1968, and it was primarily Aimed at providing development oriented financial services.
Deutsche Bank
Deutsche Bank, headquartered at Frankfurt in Germany, ranks among the leading global business and Securities Banking, Transaction Banking, Asset Management and Private Wealth Management. It is one the world's leading International Financial service providers with roughly Euro 2.2 trillion in Asset and approximately 80.000 employees.
HSBC Ltd.
HSBC Bank is a subsidiary of HSBC Holdings plc, the London based Banking Giant which, according to the Forbes Magazine, is the largest Banking Group in the world, and the 6th largest company in the world as of January 2009.
Standard Chartered Bank
Standard Chartered Bank is a London based bank, currently operating within over 70 nations with more than 1,700 branches and strong workforce 73.000 as of January 2009. Although the bank is located in Britain, still a huge chunk of its revenues originate from the continents of Asia, Africa and Middle East.
Barclays Bank
Barclays GRCB India is led by Samir Bhatia as its Managing Director. In a short period of just two and a half years, Barclays GRCB India has placed itself Amongst the most respected foreign banks in the country that is serving more than 830.000 customers.
Foreign Banks in India
The road map has two phase. During the first phase between March 2005 and March 2009, foreign banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion of existing branches into a WOS. The second phase will commence in October 2009 after a review of the experience gained after due consultation with all the Stake Holders in the Banking sector. The review would examine issues concerning extension of national treatment to WOS, dilution of Stake and permitting mergers / acquisitions of any private sector banks in
List of Foreign Banks in India
• ABN-AMRO Bank
• Abu Dhabi Commercial Bank
• Bank of Ceylon
• BNP Paribas Bank
• Citi Bank
• China Trust Commercial Bank
• Deutsche Bank
• HSBC
• JPMorgan Chase Bank
• Standard Chartered Bank
• Scotia Bank
• Taiba Bank
By the year 2009, the list of Foreign Banks in India is going to become more quantitative the number of foreign banks are still waiting with baggage to start business in India.
• Abu Dhabi Commercial Bank
• Bank of Ceylon
• BNP Paribas Bank
• Citi Bank
• China Trust Commercial Bank
• Deutsche Bank
• HSBC
• JPMorgan Chase Bank
• Standard Chartered Bank
• Scotia Bank
• Taiba Bank
By the year 2009, the list of Foreign Banks in India is going to become more quantitative the number of foreign banks are still waiting with baggage to start business in India.
Forex And Daytrading
Online trading is great way for serious investors to make money, but inexperienced Traders often wind up with big loss. A good set of instructions can minimize the risk and save years of expensive trial-and-error learning.
Day Trading
Day Trading had its heyday during the bull market of the 1990's. All the Amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.
Forex
The Foreign Exchange Market (FOREX), the world's largest Financial Exchange Market, originated in 1973. It has a daily turnover of currency worth more than $ 1.2 trillion dollars.
Unlike many other Securities, FOREX does not trade on a fixed exchange rate, instead, Currencies are traded primarily between central banks, commercial banks, various non-International Banking Corporation, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of Traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual Traders increase their skills.
As a matter of fact, it's advisable to take FOREX training even before opening a trading account.
It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX Traders would do well to either Enroll in a FOREX training courses or even purchase some books regarding Forex Trading.
There are pros and cons to enrolling into a FOREX course. For Beginners FOREX course is a rapid method of learning the basics of Forex Trading. Not much time is worked on history of the market or arcane economic theories. Often, online or phone support from a skilled Forex Trader is available to answer any questions. Also, the information is condensed and Practical, often with graph and charts.
The disadvantage is the price, the courses are more expensive than a Paperback from the bookstore. Also,
the course may just teach the approach of the Trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realize that nothing is Predictable in the FOREX market, and many different strategies will bring Profits in varying market circumstances. In addition, knowledge of Practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.
The best advice would be to do some background research on the FOREX market first, and then Enroll in a course.
What's Fibonacci Forex Trading
Fibonacci Forex Trading is basically a lot of forex trading systems used by a great number of professional forex brokers around the world, and many billions of dollars are profitable traded every year based on these trading techniques.
Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it's formed by a series of numbers where each number is the sum of the two prior numbers, 1, 1, 2, 3 , 5, 8, 13 ... But in the case of currency trading what is more important for the Forex Trader is the Fibonacci ratios Derived from this sequence of numbers, ie .236, .50, .382, .618, Etc.
These ratios are Mathematical proportions prevalent in many places and structures in nature, as well as in many man made Creations.
Forex trading can greatly benefit form this Mathematical proportions due to the fact that the oscillations Observed in forex charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as Indicators of resistance and support levels, maybe not to the last cent , but so close as to be really amazing.
Fibonacci price points, or levels, for any forex currency pair can be calculated in advance so that the Trader will know when to enter or exit the market if the prediction given by the Fibonacci forex day trading system he uses fulfills its predictions.
Many people Trie to make this analysis overly complicated scaring away many new Forex Traders that are just beginning to understand how the forex market works and how to make a profit in it. But this is not how it has to be. There I say it's a simple concept but it is quite understandable for any Trader once he or she has grasped the Basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help to improve the accuracy of the entry and exit point for every particular trade.
Free chapters of a forex day trading system can be downloaded at the author's website in case you are interested in learning more about Fibonacci Forex Trading.
Start Trading Forex For Free
Ya, really true, you can trade the forex markets for free and using the same state-of-the-art software packages that professional Forex Traders around the world, are currently using to make real-time, live currency holes.
And you can also experience the same dynamic market action and go through the same process of making decisions based on breaking news, reacting to charting patterns, and tracking ones performance the same way professional Forex Traders do.
And all this can be done even if you do not put any real money into your account, you will not see any difference in how the market behaves and how you react to the market. In short, at some point, every new Forex Trader needs to start Demo-trading.
Once you start placing holes demo, you will learn a lot about how Forex transactions are placed. I can not emphasize you enough, that this is a very important step for you in order to be able to learn how to become a hole. The demo account allows one to become familiar with trading procedures, such as placing Market, Limit, Stop, opening Orders without any risk. All dollar loss or gain on a demo account are Imaginary but, as mentioned above, the trading experience you Acquire is not.
You should notice that making big gains in a demo-account does not guarantee Profits in live trading, however, those who are not successful trading on paper rarely are successful when money is on the line. So, yes, just playing around and getting familiar with the demo account can be a great learning experience, however, you will not learn how to become a Trader this way. You need to have a trading strategy.
Once you sign up for a mini-demo account, you will need to try one of the trial charting packages from the broker you choose. Any demo software you choose will do because they have all the necessary indicator tools you need. Once you have Downloaded the software you can then set up your demo account and start drawing trendlines, marking support & resistance levels, monitoring Moving Average, etc.. This is also a very good way to get used to how orders are placed. Once you have a real trading system, you will already know how to place orders properly.
And remember, everyone makes mistakes placing orders. So you need to experiment before in a demo account so you can make your mistakes without losing any real money.
Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it's formed by a series of numbers where each number is the sum of the two prior numbers, 1, 1, 2, 3 , 5, 8, 13 ... But in the case of currency trading what is more important for the Forex Trader is the Fibonacci ratios Derived from this sequence of numbers, ie .236, .50, .382, .618, Etc.
These ratios are Mathematical proportions prevalent in many places and structures in nature, as well as in many man made Creations.
Forex trading can greatly benefit form this Mathematical proportions due to the fact that the oscillations Observed in forex charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as Indicators of resistance and support levels, maybe not to the last cent , but so close as to be really amazing.
Fibonacci price points, or levels, for any forex currency pair can be calculated in advance so that the Trader will know when to enter or exit the market if the prediction given by the Fibonacci forex day trading system he uses fulfills its predictions.
Many people Trie to make this analysis overly complicated scaring away many new Forex Traders that are just beginning to understand how the forex market works and how to make a profit in it. But this is not how it has to be. There I say it's a simple concept but it is quite understandable for any Trader once he or she has grasped the Basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help to improve the accuracy of the entry and exit point for every particular trade.
Free chapters of a forex day trading system can be downloaded at the author's website in case you are interested in learning more about Fibonacci Forex Trading.
Start Trading Forex For Free
Ya, really true, you can trade the forex markets for free and using the same state-of-the-art software packages that professional Forex Traders around the world, are currently using to make real-time, live currency holes.
And you can also experience the same dynamic market action and go through the same process of making decisions based on breaking news, reacting to charting patterns, and tracking ones performance the same way professional Forex Traders do.
And all this can be done even if you do not put any real money into your account, you will not see any difference in how the market behaves and how you react to the market. In short, at some point, every new Forex Trader needs to start Demo-trading.
Once you start placing holes demo, you will learn a lot about how Forex transactions are placed. I can not emphasize you enough, that this is a very important step for you in order to be able to learn how to become a hole. The demo account allows one to become familiar with trading procedures, such as placing Market, Limit, Stop, opening Orders without any risk. All dollar loss or gain on a demo account are Imaginary but, as mentioned above, the trading experience you Acquire is not.
You should notice that making big gains in a demo-account does not guarantee Profits in live trading, however, those who are not successful trading on paper rarely are successful when money is on the line. So, yes, just playing around and getting familiar with the demo account can be a great learning experience, however, you will not learn how to become a Trader this way. You need to have a trading strategy.
Once you sign up for a mini-demo account, you will need to try one of the trial charting packages from the broker you choose. Any demo software you choose will do because they have all the necessary indicator tools you need. Once you have Downloaded the software you can then set up your demo account and start drawing trendlines, marking support & resistance levels, monitoring Moving Average, etc.. This is also a very good way to get used to how orders are placed. Once you have a real trading system, you will already know how to place orders properly.
And remember, everyone makes mistakes placing orders. So you need to experiment before in a demo account so you can make your mistakes without losing any real money.
Forex Trading Online - 7 Reasons You Should
Forex trading online is a fast way to use your investment capital to it's fullest. The Forex markets offer distinct advantages to the small and large Traders alike, making Forex currency trading in many ways preferable to other markets such as stocks, options or traditional-looking statements. Here are seven reasons why you'll want to look into Forex Trading online.
Forex is the largest market.
Forex trading volume of over 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than future, Forex Traders give nearly unlimited liquidity and flexibility.
Forex Never Sleeps
You can run Forex Trading Online 24 / 7, from 7AM New Zealand time on Monday morning, to 5pm New York Times on Sunday evening. No waiting for markets to open: they're open all night! This makes Forex trading online a very attractive component that fits easily into your day (or night!)
No Bulls or Bears
Because Forex trading online involves the buying of one currency while simultaneously selling another, you have an equal opportunity for profit no matter which direction the currency is headed. Another advantage is that there are only around 14 pairs of Currencies to trade, as opposed to many thousands of stocks, options and future.
Forex Trading online offers great leverage
You can make the most of your investment resources with Forex Trading online. Some brokers offer 200:1 margin ratios in your trading accounts. Mini-FX accounts, which can typically be opened with only $ 200-300, offer 0.5% color, meaning that $ 50 in trading capital can control a 10,000 unit currency position. This is why people are flocking to Forex Trading online as a way to highly leverage their investments.
Forex prices are Predictable
Currency prices, though volatile, and create and follow trends, allowing the technically trained Forex Trader to spot and take advantage of many entry and exit points.
Forex trading online is free Commission
That's right! The Commission, the Exchange Fees or any other Hidden Fees. This is a very transparent market, and you'll find it very easy to research the Currencies and the countries involved. Forex brokers make a small percentage of the bid / ask spread, and that's it. No longer any need to compute Commissions and Fees when executing a trade.
Forex trading online is instant
The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds. Since this is all done electronically with no humans involved, there is little to slow it down!
Forex trading online can get you where you want to go quick and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you.
Benefits of Trading the Forex Market
Trading the Forex market has become very popular in the last years. Why is it that Traders around the world see the Forex market as an investment opportunity? We will try to answer this question in this article. Also we will discuss come differences between the Forex Market, the stock market and the future market.
Some of the benefits of trading the Forex market are:
Superior liquidity.
Liquidity is what really makes the Forex market different from other markets. The Forex market is by far the most liquid market in the Financial world with nearly 2 trillion dollars traded Everyday. This guarantee price stability and better trade execution. Allowing Traders to open and close transactions with ease. Also such a tremendous volume makes it hard to manipulate the market in an extended Mann.
24hr Market.
This one is also one of the greatest advantage of Forex trading. It is an around the click market, the market opens on Sunday at 3:00 am EST
when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminate operations. There are transactions in practically every time zone, allowing active Traders to choose at what time to trade.
Leverage trading.
Trading the Forex Market offers a great buying power than many other markets. Some Forex brokers offer leverage up to 400:1, allowing Traders to have only 0.25% in color of the total investment. For instance, Trader using 100:1 means that to have a $ 100,000 position, only U.S. $ 1,000 are needed on margin to be able to open that position.
Low transactions costs
Almost all brokers offer Commission free trading. The only cost Traders incursion in any transaction is the spread (difference between the buy and sell price of each currency pair). Spread this could be as low as 1 pip (the minimum Increment in any currency pair) in some pairs.
Low minimum investment
The Forex market requires less capital to start trading than any other markets. The initial investment could go as low as $ 300 USD, depending on leverage offered by the broker. This is a great advantage since Forex Traders are able to keep their investment risk to the lowest level.
Specialized trading
The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main Investments (85% of all trading transactions are made on the seven major currencies). Allowing us to monitor, and at the end get to know each instrument better.
Trading from anywhere.
If you do a lot of traveling, you can trade from anywhere in the world just having an internet connection.
Some of the most important differences between the Forex market and other markets are explained below.
Forex market vs.. Equity Markets
Liquidity
FX market: Near two trillion dollars of daily volume.
Equity market: Around 200 billion on a daily basically
Trading hours
FX market: 24hr market, 5.5 days a week.
Equity market: Monday through Friday from 8:30 to 5:00 ET EST.
Profit potential
FX market: In both, rising and falling markets.
Equity market: Most Traders / investor profit only from rising markets.
Transactions costs
FX Market: Commission free and tight spreads.
Equity market: High Commissions and Transaction Fees.
Adquisitivo
FX market: Leverage up to 400:1.
Equity market: Leverage from 2:1 to 4:1.
Specialization
FX market: most volume (85%) is made on Major Currencies (U.S., EUR, JPY, GBP, CHF, CAD and AUD.)
Equity market: More than 40,000 stocks to choose from.
Forex market vs.. Future market
Liquidity
FX Market: Near two trillion dollars of daily volume.
Future market: Around 400 billion dollars on a daily basically.
Transactions costs
FX Market: Commission free and tight spreads.
Future market: High Commissions Fees.
Margin
FX market: Fixed rate of color on every position.
Future market: Different levels of color on overnight positions than day time positions.
Trade execution
FX market: Instantaneous execution.
Future market: Inconsistent execution.
All this makes the Forex market very Attractive to Investors and Traders. But I need to make something clear, although the Benefits of trading the Forex market are Notorious, it is still difficult to make a successful career trading the Forex market. It requires a lot of education, discipline, commitment and patience, as any other market.
Some of the benefits of trading the Forex market are:
Superior liquidity.
Liquidity is what really makes the Forex market different from other markets. The Forex market is by far the most liquid market in the Financial world with nearly 2 trillion dollars traded Everyday. This guarantee price stability and better trade execution. Allowing Traders to open and close transactions with ease. Also such a tremendous volume makes it hard to manipulate the market in an extended Mann.
24hr Market.
This one is also one of the greatest advantage of Forex trading. It is an around the click market, the market opens on Sunday at 3:00 am EST
when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminate operations. There are transactions in practically every time zone, allowing active Traders to choose at what time to trade.Leverage trading.
Trading the Forex Market offers a great buying power than many other markets. Some Forex brokers offer leverage up to 400:1, allowing Traders to have only 0.25% in color of the total investment. For instance, Trader using 100:1 means that to have a $ 100,000 position, only U.S. $ 1,000 are needed on margin to be able to open that position.
Low transactions costs
Almost all brokers offer Commission free trading. The only cost Traders incursion in any transaction is the spread (difference between the buy and sell price of each currency pair). Spread this could be as low as 1 pip (the minimum Increment in any currency pair) in some pairs.
Low minimum investment
The Forex market requires less capital to start trading than any other markets. The initial investment could go as low as $ 300 USD, depending on leverage offered by the broker. This is a great advantage since Forex Traders are able to keep their investment risk to the lowest level.
Specialized trading
The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main Investments (85% of all trading transactions are made on the seven major currencies). Allowing us to monitor, and at the end get to know each instrument better.
Trading from anywhere.
If you do a lot of traveling, you can trade from anywhere in the world just having an internet connection.
Some of the most important differences between the Forex market and other markets are explained below.
Forex market vs.. Equity Markets
Liquidity
FX market: Near two trillion dollars of daily volume.
Equity market: Around 200 billion on a daily basically
Trading hours
FX market: 24hr market, 5.5 days a week.
Equity market: Monday through Friday from 8:30 to 5:00 ET EST.
Profit potential
FX market: In both, rising and falling markets.
Equity market: Most Traders / investor profit only from rising markets.
Transactions costs
FX Market: Commission free and tight spreads.
Equity market: High Commissions and Transaction Fees.
Adquisitivo
FX market: Leverage up to 400:1.
Equity market: Leverage from 2:1 to 4:1.
Specialization
FX market: most volume (85%) is made on Major Currencies (U.S., EUR, JPY, GBP, CHF, CAD and AUD.)
Equity market: More than 40,000 stocks to choose from.
Forex market vs.. Future market
Liquidity
FX Market: Near two trillion dollars of daily volume.
Future market: Around 400 billion dollars on a daily basically.
Transactions costs
FX Market: Commission free and tight spreads.
Future market: High Commissions Fees.
Margin
FX market: Fixed rate of color on every position.
Future market: Different levels of color on overnight positions than day time positions.
Trade execution
FX market: Instantaneous execution.
Future market: Inconsistent execution.
All this makes the Forex market very Attractive to Investors and Traders. But I need to make something clear, although the Benefits of trading the Forex market are Notorious, it is still difficult to make a successful career trading the Forex market. It requires a lot of education, discipline, commitment and patience, as any other market.
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