Forex News Trader - How To Trade Forex Using News and Economic Releases By Peter Lim

While many forex traders are technical traders and institute their trades based on technical indicators from a price chart, there are some traders who are basically pure forex news traders.

What is actually forex news trading?

The forex news trader is basically a forex trader who makes his decisions to trade based on news and reports that are released daily. He does not depend on any technical indicators at all.

Why is news trading possible?

The forex market is a 24 hours market, and there are 8 major currency pairs available for trading with well over 17 derivatives, therefore allowing the economic news releases almost daily from any one or more of these currency pairs to impact on their movements.

What are these 8 major currencies that forex traders often watch for economic news releases that impact on their value?

The eight major tradeable currencies are
1. U.S. dollar (USD)

2. British pound (GBP)

3. Euro (EUR)

4. Japanese yen (JPY)

5. Australian dollar (AUD)

6. Swiss franc (CHF)

7. Canadian dollar (CAD)

8. New Zealand dollar (NZD)

The availability of these currency pairs and their derivatives such as the USD/JPN, Euro/USD, AUD/USD and several others means that you can trade some currency or its derivative pair at any time as these currencies span the globe!

So for the forex trader who trades on the news, he will have his eyes and ears set on the release of economic news and data that affect currency values.

Generally, we will watch out for news regarding the interest rates or direction of interest rate such as the FOMC rate decisions, release of retail sales figures, indications of inflation which can be gauged from consumer price index or the producer price index, unemployment figures, news on industrial production, news that indicate a boost in business such as business sentiment surveys and consumer confidence surveys,manufacturing sector surveys and news on the country's trade balance(such as foreign purchases of US Treasuries).

Different new releases impact upon currencies, and often lead to breakouts in volatility.
The key to trading on news is to take advantage of these movements in volatility which can last a few minutes or hours, and even days into the future.

Trading purely on news release is harder than it seems, but the task is made easier and more profitable with the use of indicators, such as a breakout indicator as a bollinger band or a breakout of a candlestick or a price bar. Statistics have shown news release can trigger movements that range in size from 33 to 124 pips, leading to trading opportunities.

By studying into high probability trade setups that has occurred consistently with the release of historical economic data, the forex news trader can devise strategies that can allow him to extract fast profits from volatile movements arising from news releases. The potential gains can be massive where the forex news trader can react quickly.

Are your forex trading activities bleeding your account dry? Discover how you can reverse these stunning losses with massive profits by visiting the author's blog http://1forex-trading.blogspot.com

Article Source: http://EzineArticles.com/?expert=Peter_Lim

Will you be the next Warren Buffet? by Jeffrey Wilde

Almost every new person that ventures into the markets is lured by the same thing. EASY MONEY!

To the uninitiated, it seems like all you have to do is look at a few squiggly lines on a chart and then buy low and sell high. Unfortunately its not quite that easy! As some wise person once said, "if it was so easy everyone would be doing it".

Statistics show that over 90% of traders fail within 1-2 years. Forex brokers have told me that many new forex traders blow out their accounts in a few months!

As a trading coach I witness traders hitting the same obstacles day in and day out and I can now tell within a few minutes of speaking with them whether they will succeed or not.

Take a minute to ask yourself these questions...

1. Are you really motivated and excited about making money, but even more afraid of losing money?

2. Are you convinced that if you study long enough that you will find the "Holy Grail"

3. Do you think that the markets behave based on logic?

4. If given the chance would you rather lock in a small profit or risk it in order to go for the much bigger profits.

5. Can you take 3, 4 or 5 losses in a row and jump right back in an take the next signal?

If you answered yes to any of the first four questions then your success is questionable at best. If you answered no to #5 then you are in trouble too.

Sorry to be the bearer of bad news, but the way you answered these questions is extremely accurate in determining your future success or lack of it. Now the good news is that I will share some tips for getting you on the right path. Lets look at each question in more detail...

1. The reality of trading is that it is a risky business and you have to be a risk taker. The bottom-line is that you need to be comfortable putting your hard-earned money at risk every time you place a trade. If this is hard for you to do or stomach then you simply can not make it.

There simply is no way to trade with out risking money!!! Trading offers the opportunity to make some exceptionally high returns compared to other investments, but also raises the risk substantially as well.

If you truly can't stomach risk then I would say don't get into trading! Traders who are fearful of losing money make many mistakes as a result of this fear. It's ironic as their fear of losing money actually makes them lose even more money.

2. If you are new to trading let me take a second to explain what I mean by the "Holy Grail". The "Holy Grail" represents a trading system, strategy or software that basically never loses or at worst has very small and infrequent losses and very large wins.

The novice trader sees all the flashy adds and thinks that someone somewhere has the "Holy Grail" and all they have to do is fork over the money. Ladies and gents, I spent over 50 grand and have a group pf friends who collectively spent a jaw-dropping 250 thousand and guess what? We never found the "Holy Grail".

For the amount of money we spent, if the grail existed we would have found it. While we didn't find exactly what we had hoped, we did find ways to trade the markets that could give us a mathematical edge to be profitable over the long haul.

In order to get off the endless quest for the "Holy Grail" you need to first admit that you will never find a perfect system and that losses are ineviatble. Once you truly understand this you can move on and have an actual shot at making money in this business.

The next step is you need to find a system/strategy of trading that you are comfortable with and that gives you a mathematical edge. This edge is what will allow you to "beat the markets". The only thing left to do is trade the startegy the same way day in and day out.

3. Most people that trade are very intelligent and tend to be very logical in their thinking. What they fail to realize is that the markets do not behave in a logical manner. Instead they are driven by fear, greed, emotions and when you mix all these factors together there is a lot of unpredictable behaviour. The end result is that you can't beat the markets on logic alone.

As a technical analyst I don't try to "figure out" the markets because I know the markets are forever changing and unpredicatble. With this in mind, my goal is to simply identify short-term windows of opportunity and quickly capitalize on them. The way to exploit these windows of opportunity are through the use of a trading system/strategy.

4. A common mistake in traders is to bail out of a trade way to early. There is a saying that, "you can't go broke taking profits". I say Bull Shit! Excuse my langauge, but I have seen many a trader including yours truly fall victim to this bad advice.

Typically what happens is a trader will make $50 here, $20 there, breakeven on the next trade and then lose $100 on the next trade. As a result their account balance slowly bleeds to death. In addition all their small profits get eroded away even further by commissions.

In order to succeed you have to capture some big trades so that you can absorb all the losses and still remain profitable. As a rule of thumb you should look to make 2 to 3 times more when you win versus when you lose.

The only way to not bail out early is to have a strict money management plan in place ahead of time and follow it religiously. You also need to apply strict discipline over your emotions to keep you from bailing out.

5. A major mistake traders make is to stop using their strategy at the worst possible time. What I am talking about is they will take a series of losses and then not take the next signal generated by their strategy/system.

Inevitably what happens is the trade they didn't take turned out to be a big winner and would have made up for the previous losses. Now the trader is beside themselves as they don't know what to do.

The thing that you have to remember is that all trading systems and strategies are based on mathematical probabilites.

Say you develop your own strategy and after back-testing you find it gets 75% winners. That is excellent and you should be excited but...

You still need to remember that there will be 25 losers out of every 100 trades. Whats more, it is possible that you could have up to 25 losers in a row right off the bat. Odds are very remote that could happen, but it would not be unreasonable to have 3, 4 or 5 loses in a row.

For most traders this is too many losses to handle and they will usually give up using their system and go searchfor another one. This cycle keeps repeating itself over and oever and over again.

Look at baseball players, they only need to get 3 hits out of 10 to get into the Hall of Fame. Think about this, they will fail 7 times out of 10 yet keep stepping up to the plate. If they didn't keep swinging they would never have a chance to achieive fame.

This is the same way in trading, you have to keep swinging and take every trade that your system generates. That is the only way to let the mathematical probabilities work in your favor.

I could write a book on each of these areas as they truly are that critical to your long-term sucess. Stay tuned for more...

Free Forex Education - Everything You Need to Win and Make Triple Digit Gains You Can Get For Free! by kelly Price

There is a wealth of free forex education online which you can use to build and execute a forex trading strategy of your own for triple digit gains and here I will show you how to do it...

You can of course buy forex education and if you get the right forex trading course it can be worth the money you send many times over but its always worth learning the currency basics for yourself anyway, so lets look at the best sources to learn currency trading online and win.

First let's look at some sources that won't help you win.

Forex forums are one such source. You get people giving there wisdom in them but I don't know any successful forex traders who have time to hang around a forum. You normally get traders who are losers - but try and make themselves feel better, or vendors wanting to sell you worthless products.

Next on the list is forex news. There is a ton of it online and it's all very convincing as experts give you their view - but their just stories, and won't help you win. If you could win by following news stories, 95% of traders wouldn't be losing their accounts.

Now lets look at how to do it properly.

If you are a newcomer then you should try forex trend following and the big trends can last for weeks, months or even years.

Now the best way to catch and lock into these trends is by using forex charts and following price action - but how do you do this? Simple look up the following searches and learn about the following.

1. Support and Resistance

If you want to trade with forex charts you need an understanding of support and resistance so look it up.

2. Breakout methodology

If you want a simple, timeless way to make money, study breakouts. It's a fact that most major trends start from new market highs - NOT market lows. If you continually look for breaks of important resistance levels and go with them, you can make huge profits.

3. Momentum Indicators

When you get a break resistance then you need to go with it but ONLY if price momentum supports the break and this will put the odds on your side.

There are a lot of momentum indicators out there but we love the stochastic and Relative Strength Index, look them up or see our other articles.

A forex trading system based around the above will be logical, robust and will work. Don't be deceived by its simplicity, all the best forex trading strategies for success are simple.

Now the hard part!

Getting a system is only half the equation for success.

You now need to acquire the all important trait of discipline. You must have the discipline to execute your trading signals through periods of losses and keep on track, until you hit a home run.

Think it's easy?

You probably haven't traded then - it's hard. You have to keep going when the market makes you look a fool and that's hard. Your advantage is if you study the key areas we outlined earlier is that you will have confidence in what you are doing and confidence leads to discipline.

Now for an inspiring story on what you can achieve.

Look up the story of Richard Dennis and the turtles.

This famous story concerns trading legend Richard Dennis, teaching a group of people with no trading experience how to trade in 14 days and then setting them off with accounts and watching them make $100 million in 4 years!

Read their story, we have written about it frequently and it's interesting and combines a simple forex trend following system which they had confidence in and executed with discipline and they found the discipline the hardest part and you will to.

So build your system, read the story of the turtles and search out anything you can on money management and discipline and learn it.

If you take advantage of the searches above, when you look for your free forex education, you will have the salient points you need, to enjoy currency trading success.

Can you be a successful trader?

Of course - but you must have the right education, confidence and discipline and if you do, the road to financial freedom is open to you, all you have to do is invest some time and if you do, your efforts will be well rewarded.

Forex Tracer Review By Josh Gould

Forex Tracer is the latest Forex trading system online and it's selling like hotcakes. Much like the previous trading systems Forex Tracer requires no previous experience and has been designed to be on autopilot and make you money. All that is required is a reliable Internet connection and the ability to leave your computer of choice on 24/7. Write that down.

While I couldn't find much information on the fine folks that created Forex Tracer, I did find out that they are expert advisors that worked with mathematicians to develop complex algorithms. Oh and that this program is safe and legal. That's what daddy likes to hear.

So if you're lazy like me and would much rather pay someone to do something for you or find something to do it automatically this is the type of system you should be looking into. It automatically buys and sells for you, it's a beautiful thing. I'm not into learning the Forex system, why would I waste my time learning when I can launch a program to do it all for me? That's just not an efficient use of time.

Forex Tracer was tested over an extended period of time and in all kinds of market conditions and in the end had made $25,000-$335,000. The average winning-trades in a row have been 19 and the maximum being 53 which is total insanity (as you may or may not know).

One thing I'm loving about this fancy Forex Tracer is you can start with a "demo account" so you can play the ol' market with "play money" and see how much you could/would profit before even investing a dime. How genius is that? This simple fact combined with the 60 day money-back guarantee makes it totally risk fee.

Before purchasing it this is what I said to myself: "Ignore their sales page/pitch for a second and look at their proposal logically. They're offering a trading system for $97 which may or may not make me $1000's. I can test the market before investing any money. There's a 60 day money-back guarantee. Worst case scenario I'll see no potential profit while using the "demo account" within 59 days and I get my money back. Best case scenario I make $1000's of dollars doing little to no work." Where's the risk? I know right, everything is much clearer when you think logically.

I've been tinkering with the "demo account" and I've seen great results. I'm going to be using my actual money this week, I'm excited. Are you excited? You should be excited. Regardless of your financial goal Forex Tracer can help you get there... whether it's getting out of debt or investing in your favorite donut shop.

My goal is to quit my day job and spend the rest of my life sipping margaritas on the beach, join me won't you?

Click here to check out reviews of the top three selling Forex trading systems.

Article Source: http://EzineArticles.com/?expert=Josh_Gould

Forex Trading Strategy - Have a Look at This Strategy By Dylan Jonathan

Forex Trading Strategy can be really difficult to develop, especially if you do not know what you are doing. What I provided in this article is a simple strategy that can be very helpful for those who are struggling in forex trading.

This strategy is based on the fast moving averages. Therefore it is very easy to follow. We will use the 1 hour or 15 minute time chart to do our trading. This strategy works on any currency pair, but works best in USD/JPY.

The indicators needed for this system is: 10 EMA, 25 EMA, 50 EMA

You can plot this indicator on your chart, preferably different colors each. When you have plotted, look for when the 10 EMA crosses over the 25 EMA and it continues to crossover the 50 EMA. When this happen, get ready to buy or sell in the direction of the 10 EMA. Enter the market according to the direction of the 10 EMA when it has clearly gone through the 50 EMA. It is advisable to wait for the next bar to close, this will help to avoid false signal.

To exit the market, wait until the 10 EMA touches the 50 EMA. And again it is better to wait the next bar closes first.

The good thing about this strategy is that it is easy to follow, perfect for beginners and it gives a very good result, especially if the market is trending, during big breakouts and big price moves. But make sure you do not use this strategy when the market trades sideways.

This is a very simple forex trading strategy to follow and will likely to improve your trading results. If you are looking for an easier way to trade, and perfect for beginners and experienced traders alike, then I suggest looking at the Forex Funnel, my most profitable trading strategy is inspired by this system. You can learn a lot by observing an automated trading system trades. You can learn more about Forex Funnel and read a review made by a real user, just click here.

Article Source: http://EzineArticles.com/?expert=Dylan_Jonathan

Forex Trading With Candlesticks By B.M. Davis Platinum Quality Author

With everything that is at stake when you are trading Forex, it is only logical that you would want the best tools available to help you. Forex trading is the epitome of volatile trading and even the best trading systems seem to fail eventually. This is why over 90% of new forex traders blow through their accounts and go bust. Don't get me wrong, volatility is a good thing and can lead to quick profits. But we have to remember that the same effect can also lead to quick losses.

So now that I have stated the obvious you are asking yourself what is needed to analyze a currency chart and that is the purpose of this article. When we analyze a chart we need only look for signals that indicate one of two emotions; fear and greed. These two emotions are found quite frequently in forex markets due to the high leverage and quick gains or losses. By using a trading system like Japanese Candlesticks with your trading plan and research, you are giving yourself the best chance for success in Forex trading.

What's so different about candlestick trading forex? When you are watching your favorite chart as the market moves it's easy to forget that what we are watching are the collective trading activities of every trader, both institutional and individual, leaving their tracks for us to interpret on the chart. This is very important and I want you to stop and think about it for a minute! No matter how small the timeframe, the chart will show us not only the collective trading activity but the collective emotions as well. Fear, greed and uncertainty are easy to spot with the use and understanding of candlesticks and are also easy to learn.

Japanese Candlesticks have been around for centuries and have proven their effectiveness in all tradable markets. With forex however, we need to adjust our thinking a bit because the patterns form differently due to the fact that forex is traded twenty-four hours a day and there is no open or close to the trading day. Many traders are under the false misconception that candlestick trading won't work in forex due to this feature of the forex market. In actuality, there isn't a better market to use candlesticks than forex once you learn to spot the different nuances in the candlestick reversal patterns.

With everything at stake while trading forex it's time to stop relying on useless indicators and start concentrating on the chart itself. A candlestick chart if you want to learn to quickly asses the mood of the forex market. I urge you to spend a little time studying forex candlestick trading and see for yourself how easy it is to spot these changing tides of emotions that lead to price moves and reversals.

B.M. Davis is an active trader and the publisher of the Forex Candlestick System. If you would like more information about candlestick charting the forex market please visit http://www.forexcandlestickcourse.com

Article Source: http://EzineArticles.com/?expert=B.M._Davis

Regulated Forex Brokers - Who is Regulating? By Danielle Franklin

As a new forex broker your first challenge is to choose the right forex broker. It isn't as easy as it sounds and the whole searching process might leave you breathless. Due to enormous competition between forex brokers, they offer different features, exciting capabilities and outstanding advantages. However, along with the exceptional features you might find a potential weakness.

The weakness I am talking about here is whether your forex broker is a regulated entity. Forex brokers can be naughty and you might find it difficult to withdraw your profits if your forex broker is not under some kind of authority supervision.

What are those regulatory authorities? Let's list some of them here:

1. National Futures Association (NFA)
2. Commodity Futures Trading Commission (CFTC)
3. Australian Securities and Investments Commission (ASIC)
4. Swiss Federal Department of Finance (FDF)
5. Escalade Incorporated (ESCA)
6. Canadian Investor Protection Fund (CIPF)
7. International Financial Services Centre (IFSC)
8. Cyprus Securities and Exchange Commission (CySEC)
9. The Financial Futures Association of Japan (FFAJ)
10. German Federal Labour Market Authority (BaFin)

The next question you probably want to ask is how these regulatory authorities keep forex brokers straight. Here is the simple explanation:

Your broker is responsible for your money, whether deposited or profited. A Regulated forex broker is under a watchful eye of the regulator authority. In case something goes wrong with deposit, withdrawal or even with the trading platform, you can complain, sue or file an appeal regarding your forex broker. The regulatory authorities protect forex traders against fraud, scam and illegal trading practices.

Regulated forex brokers get homework which needs to be submitted to the authority. This so-called homework is the financial reports. If a forex broker fails to submit his homework, there is no second chance here - he gets an "F" and the regulatory authority either request a fine or, even better, remove them from their membership list.

The Regulated forex broker will not hide the fact that he is regulated and who is the authority. You can easily spot it on the forex broker website - either on the home page or at "about us" section.

The authority of a regulated forex broker is located at the country where the broker is registered in. For example, forex brokers which are regulated by NFA and CFTC are brokers located in USA. While any regulated forex broker registed in Swiss is regulated by FDF.

To summarize, trading with regulated forex broker gives you a security and protection you need as a forex trader.

Check out more forex articles, tutorials and forex brokers reviews at http://www.forexexplore.com

Article Source: http://EzineArticles.com/?expert=Danielle_Franklin

Best Forex Trading Indicators - 4 of the Best Indicators For Bigger Profits by Monica Hendrix

Many traders use numerous indicators - but over the last 22 years I have four favourites and I will share with you here and they have worked for me and they will work for you. Let's look at them...

Today, good old bar charts have gone out of fashion but I think their essential and use them in conjunction with the indicators below. I don't use candlestick charts, there is a big myth there better but there not. If you like using them, then do so but the relationship between the daily range open and close is obvious.

Here are the four indicators and you can read more about them in our other articles. There available on most free chart services and will take you around 30 minutes each to learn and then, your all set to start using them on your forex chart and start making bigger profits.

1. The Stochastic

For me this is the ultimate timing tool.

Trading stochastic crossovers with bullish or bearish divergence, into chart resistance or support, from overbought or oversold levels, is simply the best market timing tool. If the stochastic crosses from chart highs or lows the signal is even more powerful.

2. Relative Strength Index

This gives you the strength of the trend and when RSI weakens or strengthens, when the trend is still up or down, especially from over bought or oversold levels, you have advance warning of a contrary move.

When combined with the stochastic, you have a great combo for better market timing.

3. The Bollinger Band

Gives you the volatility of price and you simply need to understand it to make money at forex trading.

I love using pops to the outer band, near chart support and resistance, to look to take profit or, initiate a contrary trend. Also in a strong trending market, dips back to the centre band ( the moving average) are great value areas to look to add extra positions in a strong existing trend.

You don't time with them - you look for areas in line with support and resistance to trade into.

4. Moving Averages

Simple moving averages are great and I have just mentioned the mid band of the Bollinger band, which is in fact a simple moving average, to buy and sell back to in existing trends.

In strong trends dips to the 18 - 25 day moving average are a great place to load in new trades.

Another excellent time period is the 40 day moving average which acts as the last line in a strong trend with nearby support or resistance. In strong trending moves we like to trail our stop behind this level and it keeps us in the long term trends.

When trading with the above and support and resistance lines you will get market timing for your trading signals.

There are some other useful technical indicators and we like the ADX line and the MACD too - but the above are the four we use all the time. If you spend 30 minutes on each one you will soon have four powerful indicators that you can use in your own forex trading strategy, to seek currency trading success with.

Check them out, there simple, powerful and can work for you too with a little practice.