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

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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

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