How To Analyze The Forex Market

by Forex Tree Dude on December 18, 2010 · 0 comments

Today, we'll discuss how to do an analysis of the forex markets and the trades you'll be making. Not "how" as in perform step one, step two…, but "how" as in how to get your brain to think – technically, sentimentally, and fundamentally. Most forex experts use a combination of these three thinking methods, and in order to be successful you will need to as well.

The Technical Thinker
The technical thinker looks at trading histories and price movements in order to discover patters that help them determine their next move. Our previous post on learning from history is the mantra the technical thinker lives by (thanks again Mr. Churchill). Technical thinking is at the root of most good forex software, and it is an important component in your trading strategy.

The Fundamental Thinker
The fundamental thinker is one of our favorites as they possess an understanding of the basics behind this money system – the law of supply and demand. By keeping in mind the fact that economies are built entirely on the amount of products they produce and the number of people willing to purchase these products, we have defined the core of what makes forex exist in the first place.

The Sentimental Thinker
We never want your trading to bring to to tears, however there are reasons why the sentimental thinker must be a part of your trading arsenal. Why sentimental? Because some decisions require your gut instinct (and technical and fundamental instincts as well) in order to achieve success. Although we rarely let the sentimental thinker take control for long, we do want you to listen to the voice of the sentimental to avoid the "Something told me to…" conversations with yourself.

 

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Tips On Choosing A Forex Broker

by Forex Tree Dude on December 3, 2010 · 0 comments

When looking to branch out into the world of online investments, the Forex system offers a great opportunity to step into the trading market.  With its trading done online, the system can be daunting at first, but there are plenty of websites offering hints and tips about how to make your way.  One of the first things, and possibly one of the most crucial is finding yourself a good broker.

The broker will be your link between you and your investments in the market, so it is important to look for someone reputable with proven experience. The better the track record a Forex broker holds, the more likely your money will be secure in their hands.

Plenty of online brokers are competing for your business and it is important to not get blinded, by seemingly lucrative offers.  You cannot be promised and guaranteed returns, and anyone offering such incentives should probably be avoided.  The position of a broker holds trust, but there are people looking to exploit the inexperienced trader.

Research will go a long way to helping you narrow down your choices of who to take on as your broker.  Remember, this is someone you will be working closely with and putting faith in them to protect your interests and follow your instructions. Search for testimonials and independent reviews in Forex forums about successes with brokers.  Word of mouth is often the best form of advertising.  If you can speak to someone within the company to answer questions, then even better.

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How To Evaluate a Fund Manager’s Track Record

November 26, 2010

Two of the most useful parameters to evaluate a fund manager's track record are yearly ROI and maximum drawdown. ROI, or "return on investment", is the percent return on the initial balance, usually over the course of a year, while the drawdown is the peak-to-trough decline during a specific record period of an investment and [...]

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How To Protect Your Money From Forex Scams

November 21, 2010

Like that old saying goes, "if it's too good to be true, then it probably is". Managers who promise astronomical yearly profits with minimal risks, which are not member of the NFA, and whose reviews are invariably accompanied by an affiliate link, are likely to be a scam. Trading robots that are sold on a [...]

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How To Choose a Forex Fund Manager

November 19, 2010

Many traders nowadays are tempted to entrust their savings to a trading robot or fund manager that promise outstanding performance with very little risk and little or no work at all on their part. If you are one of those traders, this article is meant to give you a few tips to help you decide [...]

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Forex News Today: Thanks Winston Churchill

November 17, 2010

A wise man once said that those who fail to learn from history are destined to repeat it, and that saying is not lost in the world of forex. And so Mr. Churchill, we will move forward and spread today's news with the strong anticipation that everyone who remembered the previous lesson will jump up [...]

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Market Psychology and Forex Exchange Rates

November 14, 2010

Market psychology is the root cause of the unpredictability of this financial market, and it has an important impact on currency exchange rates that is often unrelated to the economy. This is because market psychology is essentially the sum of traders’ perceptions and reactions to various events. One good example is the unpredictable and volatile [...]

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Market Psychology, Macroeconomics and Forex Exchange Rates

November 12, 2010

@font-face { font-family: “Arial”; }@font-face { font-family: “Calibri”; }p.MsoNormal, li.MsoNormal, div.MsoNormal { margin: 0in 0in 10pt; line-height: 115%; font-size: 11pt; font-family: Calibri; }div.Section1 { page: Section1; } There are many factors that influence Forex exchange rates, from macroeconomic data to trading volumes and market psychology. Many people, though, are surprised to learn that market psychology [...]

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Forex News Today: Paying Close Attention to USD/JPY

November 10, 2010

Like great parents, we always like to reinforce the importance of watching trends in the forex market. And although we can't force you to do anything,  we can remind you of the good old sayings about "learning from the past", "putting your best foot forward", and "mother's always right". Today, we're going to glance over [...]

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What to look for in Currency Trading

November 7, 2010

Once you've acquired a 'lot' (or a little, ha ha ha) of one currency pair, your options on what to do and when become quite limited. In terms of trading to make money, you can either trade the currency pair you have for another one (sell), you can obtain more of the currency pair (buy), [...]

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