Daily Forex Trading Review 03/08/2010

USD Dollar (USD) – The Dollar weakened against most major currencies as risk appetite was boosted by better than expected U.S. data on manufacturing activity which came out at 55.5 vs. 54.2 forecasts, succeeded to support risky assets instead of the dollar. Federal Reserve Chairman Ben Bernanke said rising wages would probably spur household spending in the next few quarters, even as weak job gains dragged down consumer confidence. NASDAQ and Dow Jones rose by 1.80% and 1.99% respectively, crude oil jumped by 3.0% closing at 81.34$ a barrel, Gold (XAU) strengthened by 0.1% closing at 1185.4$ an ounce. Today, Pending Home Sales are expected to become positive from -30.0% to 0.5%.

EURO (EUR) – The Euro strengthened to a three-month high versus the Dollar as a report showed U.S. manufacturing expanded for a 12th straight month. The pair has succeeded to break the resistance at 1.3110, therefore the momentum is strongly bullish, the next resistance is located at 1.3200 level. Overall, EUR/USD traded with a low of 1.3055 and with a high of 1.3195.

EUR/USD – Last: 1.3165

British Pound (GBP) – The Pound rose to the highest level in almost six months against the Dollar as a report showed U.K. manufacturing expanded for a 10th straight month in July, a sign the U.K. economy is recovering faster than some economists had forecast. As long the pair is trading above the resistance at 1.5660 on the daily chart the momentum is clearly bullish, the next support on the one hour chart is 1.5665. Overall, GBP/USD traded with a low of 1.5700 and with a high of 1.5907.

GBP/USD – Last: 1.5876

Japanese Yen (JPY) –The Yen fell against most of his major as signs the global recovery is gaining momentum fueled investor appetite for riskier assets. The main resistance of the USD/JPY on the one hour chart is 87.00 level, as long it’s trading below this level a short position is preferred and the momentum is clearly bearish, the next support is located at 85.90, the main momentum is clearly bearish. Overall, USD/JPY traded with a low of 86.32 and with a high of 86.88.

USD/JPY-Last: 86.37

Canadian dollar (CAD) – The Canadian Dollar strengthened against the Dollar, reached the strongest level since June 22, as futures on crude oil the nation’s largest export climbed 3.2 percent to $81.44 a barrel, succeeded to push the Canadian as well. As long the USD/CAD below 1.0400 levels the momentum is bearish, the next support on the daily chart is located at 1.0140. Overall, USD/CAD traded with a low of 1.0204 and with a high of 1.0290.

USD/CAD – Last: 1.0241

FOREX is the name that you mush have heard and I know you must be a little lot about it, you must have seen its being mentioned or shown on various financial channel or even you would have seen it being mentioned mostly by all the prim and proper newscasters on a very famous news channel, which is popular by the name of BBC or Bloomberg, but tell me what is the reality do you actually have an idea that what FOREX trading is all about? I know what your answer would be. And be sure your answer is a correct one, yes it is about FOREX trading with currency but tell me do you have any clue that how does a particular trading system works? How it is possible that you can make quite a lot of money from the trading system about which you don’t know anything? I am just writing this article in order to educate you, guide your way through all odds. I just want to make it a little easier for you, so that you can trade normally in FOREX market.

The FOREX market about which I am talking about is actually a market that deals really very strictly in currencies. Normally, the people who make their dealings with FOREX market purchases a very large amount of another countries currency in exchange of paying for some another currency. I know you must be really Confused with all this? But don’t I will explain you all this in a much deeper way. Yes all this is really possible. Basically it is all concerned about purchasing and selling of various forms of money. And this is actually the real way by which you make large amount of money. All this happens when one particular currency gets stronger or when the other one grows weaker. The trading market will always make an effort in order to balance itself out at that time when one currency gets weaker and weaker, so you and all the other traders can actually make heavy sum of money in both the ways. Downturn in the market of currency can actually make you a millionaire as all the other currencies will be much strong against it. In the market of trading the currency of U.S.A, which is dollar is considered as the normal benchmark but some of the people might argue on that in today’s market of trading, it is quite possible that it might be the currency of Germany, which is Euro or even the Sterling Pound of British. It is really very complicated to discuss on all this.

Being the biggest and the most liquid form of financial market in today’s genera, it visualizes the participation of all the banks, all large commercial companies, firms that are investing, trading brokers, trading firms and even many other smaller players.

If you are interested in Forex trading and want to know the process of trading in international Forex market, then here we are to guide you. There are many ways through which you can learn the basics of trading Forex in international market. Many games and simulations are available on the Internet that can help you learning the methods of Forex trading. You can also learn from experienced Forex traders. The international Forex market includes almost all the countries in the world and the countries use assorted currencies in the Forex market. The Forex market is mainly used for building wealth in for the governments, banks, brokers and also for many countries.

To know the process of trading in the international Forex market, you should first identify the Forex trading software education-learning method that you would like to utilize. If you want to learn from the Internet games, you should first download software to your PC and you will know how to earn and lose money in the Forex market, while playing the game. Such Internet games are intended to make you aware of the happenings in the Forex market. They will also help you learn how the Forex markets open and shut and the diversity of the currencies of various countries.

Once you get a basic idea about the Forex market, you can open an online account. With this account, you will be able to read market news and also discover and compare different Forex markets around the world. You will also be able to create demo trades so that you can see whether you are competent enough to enter real Forex trading. Using the account, you can make small investments in the market and this will help you be extra prepared and more educated about the Forex market. You will also be able to make use of the Forex trades to earn money.

However, you may still need the help of an experienced Forex broker or an organization to make profitable trades in Forex market. Though such organizations will help you make your transactions come out, with a better understanding of the process, you will know the trends of market better. You will also know when to make calls and when to read about the Forex news, the markets and the currencies in other countries.

You should do another thing before entering the international Forex market. You need to deal with a banker of first-rate reputation or an organization involved in Forex trading. There are many companies that have huge interests in the Forex markets. However, you should know that Forex trading can be done only through a stockbroker that deals in the funds and is from inside your own nation.

If you wish to win in Forex trading you need to know some simple facts like when, why and how the price moves. This is indeed the key to your success.  But most of the traders believe in four common myths, which ultimately bring nothing but failure.

The 4 top myths are as follows:

1. Someone can make you successful and fetch you profit

The Forex traders promise you huge money, success and above all an uninterrupted flow of income if of course you spend just a few dollars. This is indeed not a hypothetical situation and you face it almost every time. Ponder on this; if at all the profit is so huge then why they themselves are not trying to achieve that instead of hassling you!  Be realistic and do not fall in their trap. Remember, success is certainly not a toy that anybody can offer you, as you need to achieve that. In the domain of Forex trading the only person who can be your help, is you, yourself! Yes, you got it right. It is you who need to learn Forex trading to fetch profit for yourself.

If you ultimately do not learn the fundamental rudiments of the Forex trading yourself then it would be impossible for you to follow the system confidently and as we all know confidence and discipline are the two factors to be successful in Forex trading.

2. Forex trading during daytime ensures profit

This big myth has misled a number of traders till date. A lot of traders believe that day trading ensures profit. However, the fact is the day trading in most of the time is volatile and you actually stand nowhere to win during day trading. But there is a catch line. Forex trading is indeed an odd game and therefore you can never calculate the odds in this trade.

3. Even if you do not work still you will earn profit

No you cannot and actually you do not. You need to have the right kind of expertise, knowledge and above all apt Forex education to succeed. All you need is just adequate time to know the trips and tricks of Forex trading and then all falls into its own place and you will be able to trade in even less than an hour.

It’s not that the more effort you put in your trading currencies, the more you win. The fact remains, the market rewards you for being right, it’s not your effort which is recognized but the result.

4. A complex Forex trading system is a must have

Totally incorrect indeed!  In fact the truth is that the more complicated the system, the chance for success gets slimmer. Keep your Forex trading system as simple as you can!

The above-mentioned 4 myths have ruled the Forex trading since the remote past and are still continuing. Do not believe in any of these, avoid them and see what difference it brings in your Forex business identity.

There are support and resistance lines that you will come across even on the single price chart during your forex trading carrier. Now you will definitely want to know what support and resistance levels are. How you can identify them and why they are considered as such an important tool to know pips and reduce the losses in forex trading. So here is some information about the same.

Resistance and support are very powerful indicators by themselves and this is the most important feature of them. They reduces the chance of failing when combined with any other buy or sell indicators and thus they prove very beneficial..

Now to understand what is support taking it this way. There is base level of price this base level is the floor for your particular trading currency pair. Now when the prices will go down they will touch this floor level and will gain the bounce again.  This is known as support level as it will provide support to the price of your currency pair in which you are trading when they go down.

And for resistance level resistance level can be taken as the top level or the roof level. When the prices will go up the prices of your trading currency pair will touch the ceiling and then again change its direction and comes back to the normal standard level. Now more the market hits the support and resistance level more relevant that level becomes. And the level becomes stronger. And if it represents a round number amount with two zeroes then it is even more relevant.

Now to use these support and resistance level in your forex trading to gain success is in a way that first makes out which currency pair you want to trade with. Then go through set of price charts over different time frames thus examining points which market touches and rebound. Now when you know the trading range best for your currency just buy when market reaches the support level and continue moving upwards. Now you will have to place stop-loss order 10-15 pips below support level if you want to place your buy order and a take profit order below resistance level. When prices reach near resistance level you should enter the market if you want to place a sell order. In trading range stop loss should be 10-15 pips above resistance level with take profit order 10-15 pips above support level.

A new trading opportunity can open up for you if support and resistance lines are broken due to role reversal but it would not be desirable for the market. Role reversal here means that support and resistance level will change their directions support lines will take place of resistance lines and vice-versa. But you should not stat trading with these reversed roles with the previous strategies you must wait for the market to test once before you invest your money.

The automated Forex trading software has made a lot of waves in the Forex market, in recent years. The immersion of this software has made it possible for many people to earn money automatically, without many difficulties. The Forex market is considered one of the speediest financial markets in the world, as the market remains open 24 hours a day, 5 days a week. There are numerous people involved in Forex trading, who analyze the fluctuations and trends of the Forex market so that you can easily predict the future trends of the market. The high speed of the market used to demand a lot of time from those people and they had to be at computer all the time. But, the invention of the automated Forex trading software has made their work easier.

The automated Forex trading software has facilitated the around-the-clock monitoring of the Forex market for the traders. The software is able to monitor the Forex charts in real-time through a series of complex algorithms. By using this software, you can easily understand when you should make a trade and when you should pull it out. The software can constantly monitor the charts for you. You can see the position of the market and can also know the market’s history for an indefinite period of time, by using this software. You can predict the future of Forex market with almost 100% accuracy as well. The software has also gained popularity for being more consistent, accurate and more successful in spotting a winning trade, compared to a human being.

If you are engaged with a day job and don’t have much time to spend for Forex trading, then the automated Forex trading software is the ideal tool for you. As a novice Forex trader, you can leave your computer overnight and then check your balances in the morning to see how well the software has served you. Initially, it may be difficult for you to believe it, but it has really worked for many people in the world. There are numerous people in this world who earn ample money from the Forex market by using this software.

With the above discussion, if you have decided to buy the automated Forex trading software, we would suggest you to find an independent, honest and non-biased website. You should find out such a website that reviews the top performing software packages available in the market. An ideal for you would be the one that not just reviews but also use different software packages so that you can start trading with a balance as low as of $100. Most people using this software have made profit in the Forex market.

Have you ever imagined to making your Forex trades off site without using your computer? Avoid scams in your computer and use quality software like Forex MegaDroid, which is a VPS Forex service. Majority of the people do not realize that they are using the system below an optimal environment.

Suppose the Forex trader is not subscribed for a fast and reliable Internet connection, his Forex trading may get hampered every time he tries it online. If he is not informed about the currency prices in real time, he is sure to miss the potential trade. Often home computers are too outdated or full of spyware that can affect the ability of the Forex auto trading system to execute properly. Such Forex traders immediately need a VPS Forex service. This particular service enables the Forex trader to host the automated Forex trading system outside your home on a shared server. Now you are freed of any hassles to check your home PC functioning, and Internet connections. You can purchase a good VPS Forex hosting service for as little as $35 per month for newbie investors with plans for up to $115 per month for regular Forex traders.

Make sure that the VPS Forex service is working properly, before purchasing. The VPS Forex service should not be any normal shared server service, but something that is particularly made for Forex traders. The VPS Forex service should ensure you of its productivity; do not go for advertisements, rather check out for the real qualities. It is always not necessary to have a degree in computer science to use this particular service, since it should have already be installed in the your machine with MT4 and the most popular automated Forex robots. Preferably, your desktop should look neat, clear and organized.

The VPS Forex hosting service is one of the most premium ways to make your Forex trading fast and accurate, without any external or internal hindrance. The VPS Forex hosting company should be having a reliable datacenter quality with a really fast broadband network and not like the temporary kind of a company. And finally, the VPS Forex hosting company should have a money back assurance. By using a good VPS Forex service, you will not even need your own computer to make money online with an automated Forex trading system. This is just like the hand free procedure of gaining more momentum to your Forex business.

With time, the usage of VPS Forex service has increased amongst the Forex traders. This facility has improved the pattern and speed of the work. Much of these automated services have resolved the problems of online Forex trading. These automated services are available in various stores, both online and in commercial areas; checking into the quality of the service is essential before purchasing.