Forex Trading and You

By Gretchen Jones

Oil, Gold and the foreign currency exchange market are three different markets that are intertwined. If you are interested in Forex trading, knowing what one does relative to another may give you an insight where the other markets may be heading. It would be useful to become familiar with those different markets as a trader and have some Forex education.

Let's have a look at those intertwined markets and how they are all interconnected.

GOLD

There is an inverse correlation for markets such as gold or oil that are priced in U.S. dollars in the commodities markets. When the U.S. dollar declines, not only do foreign currencies rise, but gold prices also go up. Studies have shown a negative correlation between gold and the dollar that is, they almost never move in tandem, but almost always move in reverse directions.

The value of EUR/USD versus gold prices, on the other hand, shows a very high positive correlation, this means that the value of the euro and gold prices often go hand-in-hand, suggesting these markets are both better off when funds are flowing away from the U.S. dollar.

Gold prices may be considered as an important indicator in looking at the forex market. A trend change in gold price may give a good clue to where the US dollar may be heading in the Forex market.

OIL

A increase in crude prices directly relates to a weakness in the American. Foreign oil producers view the increase in oil prices as a way to maintain their buying power in U.S. dollar terms. Forex brokers will tell you to counter the impact of higher oil prices a weaker dollar could ultimately give rise to inflation.

Oil is a key commodity driving global economic growth, and oil prices and the foreign exchange have a key relationship in the global economy.

Now lets have a look at the impact an increase in the oil price may have on the different major trading currencies around the world.

Japan: Economy suffers as it relies on imports for most of its energy needs, therefore the Yen weakens.

UK: Benefit the economy as UK produces oil. British pound strengthens.

Oil in world business has a heavy impact on the Forex market. Thus any disturbance in supply is likely to affect the foreign exchange market.

Some of these factors may be terrorist attacks, natural disasters and political instability. In such circumstances a shift from the dollar to the euro as the designated currency in crude oil could occur thus causing an immediate decline in the value of the U.S. dollar.

Gold and oil are not the only commodities affected by changes in forex values. Exports of agricultural commodities account for a large share of U.S. farm income.

When the value of the dollar rises, it tends to limit buying interest from an importing nation as the commodity becomes less affordable in terms of that nation's domestic currency.

When the value of the dollar declines, it reduces the price to an importing nation in terms of its currency and encourages it to buy more U.S. agricultural products. The influence that one market has on another market naturally shifts over time so these relationships are not static but should be the subject of ongoing study.

You as a Forex trader should be aware of the impact that those different markets have on the Forex. Though the changes may not happen quickly, it may however give you an insight on any possible trend changes in the near future. Happy trading. - 23159

About the Author:

For more forex trading information and forex eduction, visit http://www.forex-trading-domain.com/ BSFT220409

Learn About Forex Megadroid

By Marcus Learey

It seems as if theres always a new trading robot in every corner. And all these trading robots have the same goal and that is to provide their users with accurate stock picks. The newest trading robot to hit the websites is Forex Megadroid. Every trading robot that gets released always has distinct benefits for its users.

But is Forex Megadroid just another one of those general trading robots or is it finally different?

One distinction that it has from the others is that it operates by gathering information on the present foreign exchange market conditions so that it can make it can change its trading patterns based on what its assessments. This all results to coming up with trading picks that are more reliable and accurate than those of the others.

What past trading robots did was to collect past information about the stock market and then deduced trading patterns from there. Because of this, the stock picks that the trading robots came up with had a large margin of error.

The brains behind Forex Megadroid are John Grace and Albert Pierre, experts in forex trading with over 30 years of experience under their belt.

Forex Megadroid is the only trading robot that uses RCTPA (Reverse Correlated Time and Price Analysis) technology. Because of this, it is noted to be more accurate than the other trading robots in the market and boasts of 95% accuracy.

Forex Megadroid is also one of the few trading robots that have a user friendly interface. It is a plug and play software and its users only have to follow the simple steps provided in the installation guide to get the software up and running in no time.

To top it all up, Forex Megadroid offers a virtual money account for all of its users who wish to test the program but not want to risk losing money. The virtual cash amounts up to $100 so that users can really see if the software does live up to its promises.

For all that it only costs $97 and you can have a refund within the first 60 days if you think you wont make profits with the program. - 23159

About the Author:

Hey! Before you buy forex megadroid Look at my in depth forex megadroid review now

Forex Trading Psychology

By Ahmad Hassam

The most crucial element for a successful trader is to maintain a healthy psychological outlook while trading. This is often overlooked by many traders. No matter how skilled you may be as a trader, you need to be emotionally strong. At the end of the day, if you are unable to cope with the stress of the currency market fluctuations and unpredictable nature, you will not withstand the test of time.

As a good trader, you need to be emotionally detached in making trading decisions. One of the attributes of good traders is that they accept losing. Your trading decisions must not depend on fear and greed. Make decisions based on an intellectual level. Traders who get emotionally involved in trading make hasty decisions resulting in substantial errors. They try to whimsically change their strategies after a few losses. In case of a few winning trades they become carefree.

A good trader needs to be emotionally balanced. In the midst of a losing streak, try to take a break before fear or greed starts to dominate your strategy. You cannot win every trade. You must be psychologically capable of coping with losses. Even successful traders go through stretches of losing trades.

If you are going through a bad stretch in your trading, you should think of taking a break. Take a few days off from watching the markets. Try to clear your mind. If you keep on trading relentlessly during tough market conditions, it can breed greater losses and ruin your psychological confidence.

Make no mistake about it, no matter how much you study, practice and trade; there will be stretches of losing trades. The key is to make losing trades small enough in order to live to trade another day. By using good money management rules, you can overcome a lot of bad luck in your trading.

In order to master trading, you need to control your emotions. Many new methods have been introduced to traders but the one constant is the human emotional behavior. After all, markets are just the reflection of these emotions.

People afraid of losing their money start to sell in a panic. Fear of losing money makes the market prices to head lower. Greedy people buy trying to catch a free ride. Fear of losing a good opportunity makes the market prices to go up.

You need to learn technical analysis as a forex trader. Technical analysis will make you understand how to capture profits from movements in the price. You should understand how price action takes place. Develop a trading system that is ruled based. Dont make decisions based on emotions.

The best method to overcome emotions in trading is to develop a trading system that is ruled based and mechanical in nature. Trading is an art. There will always be 10% of discretionary judgment in each trade. Develop a trading system that has clear cut rules for entering and exiting a position. Use those rules consistently. There maybe a few losses as I have said there is always the chance of 10% going wrong. But with a good forex trading system, you can be sure the number of winner will be greater. - 23159

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

Trading In The Buff

By Mike Reed

There is a new course called Trading In The Buff. It was developed by a man named John Templeton. The concept behind the course is to the educate people on how to trade the forex market just by using price action concepts. This is done by getting rid of all the indicators that most people are used to using on their charts.

He teaches how price action can be used to identify the trends and countertrends of the market, how to be able to spot true support and resistance areas, where to identify the safest places to enter or exit a trade, and how to be able to predict future price movements. What I really enjoyed about the course is that this was all original material, which is a lot more than you can say about other trading courses that are available to the public. Most of them seem to just rehash the same information over and over again.

But that isn't the case with Trading In The Buff. There is nothing in the material that I have seen any where else. You can tell that the developer really created this idea, instead of copycatting somebody else's system. There was real in-depth analysis. The course is gone over in incredible detail. The developer, John Templeton really emphasizes every point as he wants to make sure everybody can understand it.

The material is presented in a step by step manner. After every chapter, there is a video to confirm what you have you just read in the book. It's also unique because you get the ability to understand the fundamentals. The problem I feel with many price action methods is that many people can't really explain why it works. For example, with candlestick patterns, you are just memorizing, but there is no fundamental reason why shooting stars (for example) work. All you are really doing is waiting for that particular pattern and trading it.

That isn't the case with Trading In The Buff. The course actually explains the underlying reasons the price action patterns work. It's also explained in a very simple manner so everybody can understand it. The keys are finding support and resistance, and then being able to follow the trend.

It's also quite simple. Many forex trading methods fall into the categories of really complex, such as trading with Elliot Waves, or so simple that they just don't have any depth, such as trading stochastic crosses. Trading In The Buff is a perfect mixture of that. Once you get the hang if it, its really simple to trade, but there is a lot of depth. In fact, I think you'll pick up something new almost every trading day.

They also have excellent customer service. I had a problem grasping one of the concepts of the course and I emailed support about it, and as a surprise to me, I got a reply within the hour with a very well detailed answer to my question. What was even more impressive was that it came from John Templeton, himself. He actually answers his own emails. It's nice to see that, nowadays.

Finally, the course just works, and after all, isn't that all that matters? As a person who has traded indicators for most of his trading career, I never really delved that deep into technical analysis, but it's amazing what you can find by just looking at the price movement. All I really knew were the generic patterns that everybody else does, like head and shoulders, double tops, etc... But there is so much more to price action than that. It's really easy once you open your eyes to the possibilities. - 23159

About the Author:

To get a forex education, make sure to check out Trading In The Buff.

Why The Foreign Exchange Market Is Different From The Stock Market Report

By Todd Schuyler

Do you want to know the difference between the Foreign Exchange Market and the Stock Market? Find out here on my Forex trading software reviews blog article report.

Basically the foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970's. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.

There are millions being traded daily on the forex market, and almost two trillion dollars is traded daily. This is really huge amounts of cash being traded. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and other types of financial institutions.

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any of the countries trading currencies.

The big difference between the stock market and the forex market is this. The forex market is worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.

The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market. You must get educated on forex because of the many types of currencies involved. - 23159

About the Author:

The Forex Review Guy is the creator of Forex Trading Software He recommends Forex Grid Bot. This program is helping folks who NEVER had experience trading, or dont know anything about Forex, earn extra casheveryday!