LENDI FOREX

GBP / USD Technical Analysis - June 13, 2011

2011-06-12T23:17:00.000-07:00

Pounds Sterling weakens to lowest in two last week against the dollar. Depressed by the data showing the decline in British industrial output. For the month of April, industrial output fell 1.7% reported English, missed much of economists expectations. Against the dollar, the pound traded down about almost 0.9% from the level of opening to the closed 1.6227 in late trading Friday.

For technical trading today will still be weakened, if the GBP / USD through the 1.6205 level it will continue bearish

R 3 : 1.6333
R 2 : 1.6301
R 1 : 1.6250

S 1 : 1.6205
S 2 : 1.6150
S 3 : 1.6105

GBP/USD Technical Analysis - April 26, 2011

2011-04-25T23:06:00.000-07:00

GBP / USD: Potential Towards Support 1.6384

Looking at trade data yesterday sterling currency tends to be on a limited range, 80 pips (high-low). To this day potentially sterling currency touched 1.6433, the potential to continue to support 1.6384.

The focus of economic data today for Sterling are:
1. GBP CBI Industrial Order Expectations at 6:00 am
2. GBP MPC Member Sentance Speaks at 8:50 pm

Risk Management in Forex Trading

2011-03-03T02:12:00.000-08:00

Your success in forex trading depends on your ability to manage risk. Investment, of any kind is always risky, in addition to expected profit. With you can understand the risks, then you can take steps to minimize losses. To minimize the losses / risks is called Risk Management. That is how we can control the risks that we endure.

In the investment world, there is a law that is an investment that promised big returns, the investment has the same risk amount with the promised return. Conversely, if you are looking for an investment with little risk, usually offered too little return.

Everyone has an investment profile that is not the same. There are people who have type Risk Lover that is, those who love the risk by promising big profits. But there are also so-called Risk Averter that is, those who prioritize security over the funds and choose the investment with minimal risk to the consequences of the return generated is also small. nothing better to each other in order to remain successful in trading. matter back to the private individual in understanding the purpose of investing.

There are 3 kinds of trading risk management that we can use. In this case, we can use one or all of them depend on the willingness and ability of risk will be borne by traders.

1. Cut loss
Close your position opposite the market price movement. Cut loss used to limit the losses suffered so as to avoid even greater losses.

For example, say we're opening our position on Open Buy GBPUSD at 1.6000 price. Open a Buy position means that we expect prices to rise above 1.7000, so we get lucky. Our hope as the price moves up to 1.7100 so that we can obtain 100 points profit. But what power, turns out the price moves against what we expect. It turned out that the price goes down continually from 1.7000 to 1.6950 and still showed a tendency to fall.

Instead of experiencing further losses and ultimately experience a margin call, the better the position was closed even though we bear the loss of 50 points (1.7000 to 1.6950 = -50 points).

2. Switching
This action is similar to cut loss, but the difference after closing the position we are losers, we
opening new positions in the same direction with the market price movement.

In the same case with a cut loss above, then we close our position at 1.7980 and then we open a new position Sell as prices tend to decrease. Thus, if prices continue to fall, say reach 1.7900 then our overall experience loss 20 points but gain profit by 80 points (1.7980-1.7900 = 80) so that the total profit we still get 60 points.

3. Averaging
This method requires extra capital to maintain the position we have open that was moving against the market price.

Say the same case with the example above Cut Loss, then if we want to take action averaging then we open a new position but in this case is not like switching a closed position we are experiencing loss and opened a new position as opposed to our previous position by reason prices have moved down. In averaging we are not closing our position which has been opened (in this case Open Buy) and then we even added by opening new positions in the same direction that is Open Buy back!

Why is that? Do not we have done previously Buy and suffer losses, then why are we doing Open Buy again? The reason is simple, we would expect because the price has come down then the price will go up so that when we perform a second action Buy expected price moves up and even surpass our Buy first so that we gain a double advantage.

The three above risk management is very simple and easy to do.So, be very harmful if we do not know the things above. But the question is, whether by knowing that we do not experience loss?

The answer is of course not. If you look at the three above risk management relies on one thing: our ability to analyze price movements. That's what's at the heart of forex trading. Risk management does not even become effective when we are not able to do the analysis correctly and accurately. So, knowing the analysis is imperative in starting an investment in forex trading.

Forex Scalping

2011-03-03T01:54:00.000-08:00

When you are familiar with forex, you will find several kinds of techniques for success in trading. one of them is scalping. Forex scalping is startegy take advantage in a short time. between 5-15 pip profit target. startegy is done at the time of currency movements are in a trend and with considerable volatility.

Three key factors trading with scalping

The more liquid the market the better.
The intensity of the volatile periods overshadows the more settled period (60-80%) and it is Easier to get trades through in these circumstances.
The timing of the trade is critical.

Remember that the goal initially is scalping, which means the expected profit 5-15 pips for a trade occurs. It should be noted also the trends and indicators that you mastered.

The Advantages of Forex Trading Over Other Investments:

2011-03-03T01:42:00.000-08:00

When I decided to forex trading, because I see there are several advantages offered forex trading that is not offered by other investments. Development of Information Technology advances facilitate trading activity. Simple questions are often raised by new investors before embarking on its investment in forex trading is: Why should I invest in forex? What are the advantages compared with other investment forex?

Here are some of the advantages of forex trading over other investments:

The highest return on investment than other investments. Is there any investment that could offer a return to infinity? Forex can do it!
High liquidity. This means you can always buy or sell currency that you want traded and there is no term "fail to deliver here. When you take action to buy, there are always others who will sell it to you and vice versa. This occurs because the scope is the stock forex investment world that are connected to each other.
Capital required is relatively small. Today some brokers offer low initial capital to set up an account at Marketiva enough with $ 1 you can participate in trading.
Hours trading 24 hours a day and 5 days a week. No word night or during the day in the world of forex trading. The market lasts for 24 hours a day starting from the Asian market to European and American markets. Compare with Shares which are only open in office hours or the commodities market is only open in the morning until noon. If you're an office worker, you can trade forex trading at night and not disturb your working hours.
Anywhere, anytime and anyone can join. Yes, investments do not recognize caste. So also with forex trading. Whoever you are, traders, workers, a housewife, or even once a farmer can join. And more great again with the progress of the internet, you can trade anywhere without having to go to the relevant stock exchange or call your dealer directly. It definitely saves time and cost you!
Investors acting active in investment. Unlike other investments where the investor can only rely on third-party managed funds (mutual funds, insurance, deposits, etc.), in forex trading is you who decide when and how much you want to invest by buying or selling. Now your investment depends on yourself and not to others.
Real time prices that you can access at any time free of charge. We think this is enough, no need to explain again. Everything is free.
Available demo account you can have for free without paying any sepesr! If you are a novice in the forex world, this will really help you because the prices listed on the demo account is the same as the price is actually happening in the market.
Leverage 1:100 offered. This means with one part of what you spend, you can buy or sell as many as 100 parts. This is the excess of the margin trading where it takes is only guaranteed to buy or sell the items required. In forex trading is implemented with a capital of $ 100 then you can buy the dollar as much as $ 10,000 and also contrary to the selling action. High leverage and low margin can basically increase your loss of profits or otherwise. Thus you should consider the investment risk and your investment plan.
Online reporting and transaction. It was formerly forex trading is done via telephone and written reports the results of your transaction will be sent via email or even post every month. But now with internet access, even reports of your transactions you can access them whenever you want without having to wait for the part of the report to your broker.
Security and confidentiality is assured. Although transactions are done via the internet does not mean security and confidentiality of information and your funds are not guaranteed. Party broker in the transaction provides data encryption and secure your funds were stored in segregated accounts at the broker if you do it legal.

So now we return it to you to consider it objectively and customize it with your investment goals.

inspiration posting from belajarforex

2 Mental Attitudes That Affect A Trader

2011-03-02T23:28:00.000-08:00

There are two mental attitudes which are involved in a trader when trading, FEAR and Greed. Traders who exercise caution when trading will be more controlled by FEAR. Traders will be wasting a lot of opportunities because of fear of the loss in viewing opportunities. My experience, FEAR will make you late entry points so that the benefits I get no maximum or in other circumstances I forced myself out of the transaction for fear of experiencing big losses when the potential loss is only temporary. Instead, a greedy trader risked their capital in the transaction once because he wanted to achieve huge profits or sustain a position that is advantageous when there have been changes in trends because they still expect higher profits.

Price movements in the forex market itself is motivated by two emotions, the only traders who can handle both emotion that is able to survive and succeed. This section confirms the mental attitude you should take the time to trade for keeping our trading limit fixed rational and emotional attitudes.

Example:

I do the analysis and trading based on what I see on the chart and not based on what I WANT to see.
I will do the trades to follow market trends rather than follow the wishes and my hopes.
If I lose, I will not take revenge, but I'll take the time to analyze the transactions that loss.
I will not vent my anger on objects disekita me if my transaction loss, but I will accept the losses with a cool head and make it as a valuable lesson.

7 Questions About Currency Trading Answered

2011-03-02T23:23:00.000-08:00

Although forex is the largest financial market in the world, it is relatively unfamiliar terrain to retail traders. Until the popularization of internet trading a few years ago, FX was primarily the domain of large financial institutions, multinational corporations and secretive hedge funds. But times have changed, and individual investors are hungry for information on this fascinating market. Whether you are an FX novice or just need a refresher course on the basics of currency trading, read on to find the answers to the most frequently asked questions about the forex market.

How does this market differ from other markets?
Unlike the trading of stocks, futures or options, currency trading does not take place on a regulated exchange. It is not controlled by any central governing body, there are no clearing houses to guarantee the trades and there is no arbitration panel to adjudicate disputes. All members trade with each other based upon credit agreements. Essentially, business in the largest, most liquid market in the world depends on nothing more than a metaphorical handshake.

At first glance, this ad-hoc arrangement must seem bewildering to investors who are used to structured exchanges such as the NYSE or CME. (To learn more, see Getting To Know Stock Exchanges.) However, this arrangement works exceedingly well in practice: because participants in FX must both compete and cooperate with each other, self regulation provides very effective control over the market. Furthermore, reputable retail FX dealers in the United States become members of the National Futures Association (NFA), and by doing so they agree to binding arbitration in the event of any dispute. Therefore, it is critical that any retail customer who contemplates trading currencies do so only through an NFA member firm.

The FX market is different from other markets in some other key ways that are sure to raise eyebrows. Think that the EUR/USD is going to spiral downward? Feel free to short the pair at will. There is no uptick rule in FX as there is in stocks. There are also no limits on the size of your position (as there are in futures); so, in theory, you could sell $100 billion worth of currency if you had the capital to do it. If your biggest Japanese client, who also happens to golf with Toshihiko Fukui, the Governor of the Bank of Japan, told you on the golf course that BOJ is planning to raise rates at its next meeting, you could go right ahead and buy as much yen as you like. No one will ever prosecute you for insider trading should your bet pay off. There is no such thing as insider trading in FX; in fact, European economic data, such as German employment figures, are often leaked days before they are officially released.

Before we leave you with the impression that FX is the Wild West of finance, we should note that this is the most liquid and fluid market in the world. It trades 24 hours a day, from 5pm EST Sunday to 4pm EST Friday, and it rarely has any gaps in price. Its sheer size (it trades nearly US$2 trillion each day) and scope (from Asia to Europe to North America) makes the currency market the most accessible market in the world.

Where is the commission in FX?
Investors who trade stocks, futures or options typically use a broker, who acts as an agent in the transaction. The broker takes the order to an exchange and attempts to execute it as per the customer's instructions. For providing this service, the broker is paid a commission when the customer buys and sells the tradable instrument. (For further reading, see our Brokers And Online Trading tutorial.)

The FX market does not have commissions. Unlike exchange-based markets, FX is a principals-only market. FX firms are dealers, not brokers. This is a critical distinction that all investors must understand. Unlike brokers, dealers assume market risk by serving as a counterparty to the investor's trade. They do not charge commission; instead, they make their money through the bid-ask spread.

In FX, the investor cannot attempt to buy on the bid or sell at the offer like in exchange-based markets. On the other hand, once the price clears the cost of the spread, there are no additional fees or commissions. Every single penny gain is pure profit to the investor. Nevertheless, the fact that traders must always overcome the bid/ask spread makes scalping much more difficult in FX. (To learn more, see Scalping: Small Quick Profits Can Add Up.)

What is a pip?
Pip stands for "percentage in point" and is the smallest increment of trade in FX. In the FX market, prices are quoted to the fourth decimal point. For example, if a bar of soap in the drugstore was priced at $1.20, in the FX market the same bar of soap would be quoted at 1.2000. The change in that fourth decimal point is called 1 pip and is typically equal to 1/100th of 1%. Among the major currencies, the only exception to that rule is the Japanese yen. Because the Japanese yen has never been revalued since the Second World War, 1 yen is now worth approximately US$0.01; so, in the USD/JPY pair, the quotation is only taken out to two decimal points (i.e. to 1/100th of yen, as opposed to 1/1000th with other major currencies).

What are you really selling or buying in the currency market?
The short answer is "nothing". The retail FX market is purely a speculative market. No physical exchange of currencies ever takes place. All trades exist simply as computer entries and are netted out depending on market price. For dollar-denominated accounts, all profits or losses are calculated in dollars and recorded as such on the trader's account.

The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations who need to trade currencies continually (for example, for payroll, payment for costs of goods and services from foreign vendors, and merger and acquisition activity). However, these day-to-day corporate needs comprise only about 20% of the market volume. Fully 80% of trades in the currency market are speculative in nature, put on by large financial institutions, multi-billion dollar hedge funds and even individuals who want to express their opinions on the economic and geopolitical events of the day.

Because currencies always trade in pairs, when a trader makes a trade he or she is always long one currency and short the other. For example, if a trader sells one standard lot (equivalent to 100,000 units) of EUR/USD, she would, in essence, have exchanged euros for dollars and would now be "short" euro and "long" dollars. To better understand this dynamic, let's use a concrete example. If you went into an electronics store and purchased a computer for $1,000, what would you be doing? You would be exchanging your dollars for a computer. You would basically be "short" $1,000 and "long" 1 computer. The store would be "long" $1,000 but now "short" 1 computer in its inventory. The exact same principle applies to the FX market, except that no physical exchange takes place. While all transactions are simply computer entries, the consequences are no less real.

Which currencies are traded?
Although some retail dealers trade exotic currencies such as the Thai baht or the Czech koruna, the majority trade the seven most liquid currency pairs in the world, which are the four majors:

* EUR/USD (euro/dollar)
* USD/JPY (dollar/Japanese yen)
* GBP/USD (British pound/dollar)
* USD/CHF (dollar/Swiss franc)

and the three commodity pairs:

* AUD/USD (Australian dollar/dollar)
* USD/CAD (dollar/Canadian dollar)
* NZD/USD (New Zealand dollar/dollar)

These currency pairs, along with their various combinations (such as EUR/JPY, GBP/JPY and EUR/GBP) account for more than 95% of all speculative trading in FX. Given the small number of trading instruments - only 18 pairs and crosses are actively traded - the FX market is far more concentrated than the stock market.

What is carry?
Carry is the most popular trade in the currency market, practiced by both the largest hedge funds and the smallest retail speculators. The carry trade rests on the fact that every currency in the world has an interest rate attached to it. These short-term interest rates are set by the central banks of these countries: the Federal Reserve in the U.S., the Bank of Japan in Japan and the Bank of England in the U.K. (To learn more, see What Are Central Banks?)

The idea behind the carry is quite straightforward. The trader goes long the currency with a high interest rate and finances that purchase with a currency with a low interest rate. In 2005, one of the best pairings was the NZD/JPY cross. The New Zealand economy, spurred by huge commodity demand from China and a hot housing market, has seen its rates rise to 7.25% and stay there (at the time of writing), while Japanese rates have remained at 0%. A trader going long the NZD/JPY could have harvested 725 basis points in yield alone. On a 10:1 leverage basis, the carry trade in NZD/JPY could have produced a 72.5% annual return from interest rate differentials alone without any contribution from capital appreciation. Now you can understand why the carry trade is so popular! But before you rush out and buy the next high-yield pair, be aware that when the carry trade is unwound, the declines can be rapid and severe. This process is known as carry trade liquidation and occurs when the majority of speculators decide that the carry trade may not have future potential. With every trader seeking to exit his or her position at once, bids disappear and the profits from interest rate differentials are not nearly enough to offset the capital losses. Anticipation is the key to success: the best time to position in the carry is at the beginning of the rate-tightening cycle, allowing the trader to ride the move as interest rate differentials increase.

FX Jargon
Every discipline has its own jargon, and the currency market is no different. Here are some terms to know that will make you sound like a seasoned currency trader:

* Cable, sterling, pound - alternative names for the GBP
* Greenback, buck - nicknames for the U.S. dollar
* Swissie - nickname for the Swiss franc
* Aussie - nickname for the Australian dollar
* Kiwi - nickname for the New Zealand dollar
* Loonie, the little dollar - nicknames for the Canadian dollar
* Figure - FX term connoting a round number like 1.2000
* Yard - a billion units, as in "I sold a couple of yards of sterling."

source : investovedia

What Is Fundamental Analysis?

2011-03-01T00:46:00.000-08:00

Fundamental analysis is a method to interpret the news and events, both economic and political, which is expected to have an impact on currency movements associated countries. For example, the U.S. unemployment report the adverse effect on the strength of the currency to USD, or a political feud between America and China, could affect the currency of countries that are commodity based, such as the AUD and CAD, because dikhawartirkan this feud will affect China's imports from Australia, Canada , and so forth.

The analyst would predict links from news stories with each other, eg declining industrial production data, but consumer demand is still high, it can predict there will be price increases. Or another example, meingkatnya unemployment will trigger a decline in private consumption, this will affect the rotation slowing economy, the central bank will lower interest rates for the population more quickly turn their money and open up new ventures.

The advantages of fundamental analysis is that we know the long term trends, such as the end of 2010 UK GDP was released bad, still shows a slow economy, in the next few weeks look GBP continues to weaken because investors feel pessimistic about the UK economy, need something new to convince them that Britain's fine. So with fundamental analysis, we can assess how the economy of a country, when compared with other economies, which is more powerful? Let's say middle America better than England, then the GBP / USD trend was likely to fall.

Of course, all methods must have a flaw. Fundamental analysis is prediction, and therefore no subjective element. How do analysts predict the numbers that appear to be influenced by the person of the analyst himself, eg in the U.S. unemployment data are released is an analyst with American, they will tend to put great expectations for his country. This is called 'bias'. In addition, the reaction of each person against the emergence of the actual numbers will be different, take the example trader A will assume rising house prices as a harbinger of faster rate of economic turnover, on the other side trader B, may think this is a symptom of inflation.

source : asiasurabaya

Forex Trading - What Is Technical Analysis?

2011-02-28T22:39:00.000-08:00

In simple terms, technical analysis means that one looks at price movements. Price movements that occurred in the period then become the basis of analysis of price movements in future periods.

The main objective is to observe the price chart:
1. can quickly find the price trend
2. can predict the likelihood of time and distance trend
3. can take advantage, when to enter and exit the market.

In the development of modern investment, investment decisions seem to rely more on technical analysis than fundamental analysis, especially for short-term investment decisions such as forex. According to Meyers, this is because, the price movement of securities, including currency-is no longer random, but repeatedly and form a certain pattern that can be identified.

Prior to use in trading, it's good to understand the basic principles of this technical analysis. Among experts there is no mutual agreement on a number of principles that must be met. However, there are at least three principles that can be used as a basis for understanding the technical analysis, namely:

1. Market discounts everything

The first is that technical analysis market is a reflection of everything. Changes that occur in the market price is the result of the action (purchase or sale) are taken by actors with diverse backgrounds, information, knowledge and emotions are different.

Through the observation of price changes that occur in the market is enough for an analyst to predict subsequent price movements, technical analysis.

2. Prices move in a trend

Technical analysis prices tend to move in the same direction during several periods. Movement can be raised, lowered or moved in a certain area (sideway) form patterns whose effects can be recognized. Technical analysis does not believe that prices move randomly, so it can be estimated. If the price of an asset moves up at the end of this week, then next week is likely to continue the movement, to mark the end of the increase in technical analysis emerges clearly.

3. History repeats Itself

The patterns of specific technical analysis which was formed by the movement of prices that occurred in the past will happen again and cause a similar effect in the future. Technical analysts believe that the behavior of human transaction that is driven by information, desire and emotion en masse tend to be repetitive, such as technical analysis of mass crowd who do the queue due to the scarcity of kerosene at this time will return to repeat the behavior in the future when faced with similar situations.

Source : Google

Forex Market

2011-02-27T23:37:00.000-08:00

Forex (Foreign Exchange market) is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. Transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. During exchange, the exchange rate of one currency to another currency is determined simply: by supply and demand – exchange to which both parties agree. The foreign exchange market determines the relative values of different currencies.

The primary purpose of the foreign exchange in forex market is to assist international trade and investment, by allowing businesses to convert one currency to another currency. For example, it permits a US business to import Japan goods and pay Yen Japan, even though the business's income is in US dollars. It also supports speculation, and facilitates the carry trade. A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate.

The scope of transactions in the global currency market is constantly growing, which is due to development of international trade and abolition of currency restrictions in many nations. in 2007 was recorded daily trading volume in the forex market to reach US $ 3.900.000.000.000. With high trading volumes and the highest rates of information technology development in the last two decades, the market itself changed beyond recognition. Forex transactions that used to be the privilege of the biggest monopolist banks not so long ago are now publicly accessible thanks to e-commerce systems.

Typical attractive the forex market:

Liquidity: the market operates the enormous money supply and gives absolute freedom in opening or closing a position in the current market quotation. High liquidity is a powerful magnet for any investor, because it gives him or her the freedom to open or to close a position of any size whatever.

Promptness: with a 24-hour work schedule, participants in the FOREX market need not wait to respond to any given event, as is the case in many markets.

Availability: a possibility to trade round-the-clock; a market participant need not wait to respond to any given event;

Flexible regulation of the trade arrangement system: a position may be opened for a pre-determined period of time in the FOREX market, at the investor’s discretion, which enables to plan the timing of one’s future activity in advance;

Value: the Forex market has traditionally incurred no service charges, except for the natural bid/ask market spread between the supply and the demand price;

One-valued Quotations: with high market liquidity, most sales may be carried out at the uniform market price, thus enabling to avoid the instability problem existing with futures and other forex investments where limited quantities of currency only can be sold concurrently and at a specified price;

Market Trend: currency moves in a quite specific direction that can be tracked for rather a long period of time. Each particular currency demonstrates its own typical temporary changes, which presents investment managers with the opportunities to manipulate in the forex market;

Margin: the credit “leverage” (margin) in the forex market is only determined by an agreement between a customer and the bank or the brokerage house that pushes it to the market and is normally equal to 1:100. That means that, upon making a $1,000 pledge, a customer can enter into transactions for an amount equivalent to $100,000. It is such extensive credit “leverages”, in conjunction with highly variable currency quotations, which makes this market highly profitable but also highly risky.

Source : wikipedia and fxmarket

Definitions Forex Trading

2011-02-25T03:37:00.000-08:00

Forex (Foreign Exchange) or the buying and selling foreign exchange (forex) is the buying or selling foreign currency in the form of a contract system in which to exploit fluctuations in price rises and price drops that we can make a profit.

Excluding foreign exchange market the market, as is usually because the foreign exchange market is not available place where buyers and sellers meet to conduct the transaction as well as commodities markets. Buyers and sellers have sex only through a sophisticated telecommunications network.

Foreign currencies are often traded is USD (U.S. dollar) against the British Pundsterling (GBP), Japanese Yen (JPY), Euro Currency (EUR) and Swiss Franc (CHF).

Global trade takes place between the world's financial centers by involving major banks duni as the main executor of this transaction.

With the time difference between the market makers (the world's foreign exchange banks, non bank financial institutions, insurance, investment management, investors, individuals) worldwide, making this market is active 24 hours from Monday to Friday