Want To Trade Forex The Ask Yourself This Simple Question

Trading Opportunity The Euro A Live Example A Trade For Big Profits

The euro against the US dollar is showing a trading set up that could yield some great profits regardless of whether the currency moves up or down.

Let’s look at how this currency pair can be traded and how a move either way could make some great profits.

For this example we are using the free charting futuresource.com.

Pull up the daily chart; you will see that we are near critical resistance which the euro is trying to hurdle.

We have two possibilities of course we can either

See a breakout of the highs at 1.3400 or we can see the euro retreat from the highs and stay within the range.

A clear break of the highs would mean that important resistance is broken and the possibility is that stops will be hit and fresh buying could propel the euro much higher.

The other scenario is that resistance holds and the euro falls back.

How do you trade this move?

Watch the near term price momentum.

Resistance RSI & Bollinger bands

For this you need the stochastic indicator and the RSI.

At present the stochastic momentum is weakening and if the lines cross to the downside with bearish divergence, the odds favor the bears.

Target would be the middle of the Bollinger band (the green line) which represents the longer term moving average.

Notice how the RSI has peaked at overbought levels and is trading just off these levels.

At present it looks like the bears will prevail. The bulls will take charge on a clear break above 1.3400 – with stochastic momentum supporting the move.

Wait for confirmation

We favour the bears however don’t try and impose your view on the market. Go with the stochastic signal to see if the odds favour the bulls or the bears.

By using the stochastic to give you near term price strength or weakness and using the resistance level you can decide which direction the currency is likely to go in and the odds of success.

Follow Price Action

This is a good trading set up and stop protection is obvious on either a bull break, (below the breakout point) or on a bear break (above resistance) - it’s a good set up and easy one to trade.

Remember: Don't impose your view -wait for confirmation fro momentum before trading either way.

By: Sacha Tarkovsky

Article Directory: http://www.articledashboard.com

FREE TRADER INFO & A FOREX COURSE WITH A REAL TRACK RECORD On all aspects of becoming a profitable trader including articles, feature, downloads and systems and an exclusive Gann Trading Course visit our website at www.net-planet.org/index.html

Trading Currency Through Online Forex Brokers

Access to foreign exchange (forex), the most extensive market on the planet, is generally through an intermediary known as a forex broker. Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex trading performance.

Financial institutions are generally the most influential in the forex market through high-volume, large-value forex currency transactions. Historically, banks enjoyed monopolistic access to the forex markets, but through the Internet, any forex speculator can also enjoy 24 hour access to the market via a forex broker.

Forex traders have the aim of using the smallest amount of one currency, say the US dollar, to purchase another currency like the British Pound. If supply of the pound lessens in a busy market, it will cost more dollars to buy pounds, and the forex trader hopes to sell their pounds at a higher than their purchase price.

Secure web connections today allow many forex traders to work from home, where ready access to news and other technical advice informs decisions on what forex positions to take. Similar moves are being made by stock brokers, who are also moving out of banks and other traditional institutions.

Your needs in the market will influence your choice of forex broker. Online forex brokerage firms, known as houses, provide those new to the forex market with detailed research, advice and simulators to learn how to use their forex trading tools. The experienced online forex trader is catered to by other broking houses, with in-depth advice, but less focus on forex trading instruction based on the assumption that you are familiar with the forex market. To make an informed choice, it is advisable to trial several differing online forex broking houses and their trading tools to find the best fit for your needs.

About the Author:
Jay Moncliff is the founder of http://www.forex-web.info a website specialized on Forex Broker, resources and articles. This site provides updated information on Forex Broker. For more info on Forex Broker visit: http://www.forex-web.info

Read more articles by: Jay Moncliff
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There Are Real Live People Behind Currency Trading

The Internet offers an abundance of information about investing, currency trading, forex market, about how, when and what to do to earn more money in the easiest way possible. The “information highway” is practically a gold mine for traders that have a lot of experience and for beginners that need articles, tips and glossaries to get ahead. So much to see and so much to do…One should be worried that all these people (that are looking for information and for knowledge or are offering it) forget that behind the computers there are hearts beating and brains thinking, and blood pulsing through veins.

The useful information that is found on the Internet about foreign exchange, charts, capital risks, currencies, brokerage, and transactions isn’t just a virtual world separated from reality. It is other people’s experience, thoughts and feelings. The articles written about this subject represent their time and effort to supply novelty, to help, to guide their fellow readers. And those to whom they address their knowledge are people too. The Internet is actually people’s humanity, their strive to contribute, even a little to man kind.

Currency trading isn’t impossible to learn as one might imagine when encountering problems. Trading difficulties aren’t a reason not to invest anymore. These procedures and words were invented by people (who have weaknesses, who are sometimes foolish, sometimes too ambitious or who want to take advantage of your own faults), but for the people also. And, because you, the reader, are here to use their information you are proving yourself to be human. You should now endeavor to understand what others have so much worked to teach. Yes, you might stumble upon different terms that place you in a difficult situation: Wash trade, Whipsaw, vostro Accounts and abbreviations like: EDI, ECU, EMS, EFT, G7 or G10. But you will also find the answers to all of your questions from the same people that use these terms.

Currency trading speaks about money and finance and business, so about people and their wishes of great wealth. Trading in general talks about human psychology — something that should be taken into consideration usually. The risk that exists in trading has a direct effect on the trader. Therefore bad transactions are made because of hesitation, fear of making a choice that might lead to loss of money and lack of faith. The advice: “trade only as much as you can afford to lose” was given just because of these reasons. Currency trading has less to do with psychology than other trading systems, but it still reefers to people and the way they think.

So human weaknesses can be taken advantage of (you can profit from someone else or someone else will profit because of you). The good aspect of currency trading is that buying and selling currencies is safer than other risky markets because the psychological factor weights less here. But, if you want to make sure that you are in control of the situation, don’t forget you are human! Read articles and lose the weaknesses!

There are hundreds of interesting titles on the net: “Currency Trading, Advantages and Disadvantages”, “Online Currency Trading is a reality”, “Learn Currency Trading, Forex Strategies, Forex Software, Forex Investment”, “Make your own story of currency trading success”, “Risks in Currency Trading”, “Trading currencies is easy for everyone”…. There is so much free information about any aspect of the investment world that if you ever lose money because of lack of knowledge you won’t have any excuse. Learn from what you read and “knowledge will set you free” (in this case make you rich!) Don’t even think for a minute that you are wasting your time reading because you are actually investing right now.

If you don’t know where to start (you should click here for some tips and articles) think of the keywords that are mostly used for the foreign exchange market: “Currency trading” and “Forex trading” and use these terms together with the word “article” in the Google search engine. Google will display 222,000 and 608,000 links to sites that have categories or articles referring to this topic. You can enjoy your readings thinking they will actually be useful.

Don’t forget you are human and you need discipline, planning, management and information to get rich. You are behind Currency trading and you need to know how things and other people work before making any investment. If risk is not your business than wisdom should let you know that no one can guarantee 100% earnings without any loss. You are the one investing your money so you should first learn to do this and then be prepared for anything. Investment winnings are just as unpredictable as people are.

About the Author:
Amelie Mag is an Internet writer for Forex Trading Plus. For further information about Currency trading you can write at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or visit: Currency trading

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The Seven Most Traded Currencies in FOREX

Currencies are traded in dollar amounts called “lots”. One lot is equal to $1,000, which controls $100,000 in currency. This is what is known as the "margin". You can control $100,000 worth of currency for only 1,000 dollars. This is what is called “High Leverage”.

Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded. The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair. In this example ABC is the symbol for one countries currency and DEF is the symbol for another countries currency.

Here are some of the common symbols used in the Forex:

USD - The US Dollar
EUR - The currency of the European Union "EURO"
GBP - The British Pound
JPN - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you can not ever trade a EUR by itself. You always need to compare one currency with another currency to make a trade possible.

Some of the common PAIRS are:

EUR/USD Euro / US Dollar
"Euro"

USD/JPY US Dollar / Japanese Yen
"Dollar Yen"

GBP/USD British Pound / US Dollar
"Cable"

USD/CAD US Dollar / Canadian Dollar
"Dollar Canada"

AUD/USD Australian Dollar/US Dollar
"Aussie Dollar"

USD/CHF US Dollar / Swiss Franc
"Swissy"

EUR/JPY Euro / Japanese Yen
"Euro Yen"

The listed currency pairs above look like a fraction. The numerator (top of the fraction or "left" of the / however you want to SEE it) is called the base currency. The denominator (bottom of the fraction or "right" of the /however you want to SEE it) is called the counter currency. When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD. If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency. You are always doing the opposite of what you did with to base currency with the counter currency.

If this seems confusing then you're in luck. You can always get by with just thinking of the entire pair as one item. Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. You only need to be aware of the base/counter concept for Fundamental Analysis issues.

So why is it important to know about the base/counter currency? The base/counter currency concept illustrates what is actually taking place in a Forex transaction. Some of you reading this, know that short-selling was restricted in the stock market *(Short-selling is where you sell a stock/currency/option/commodity first and then try to buy it back at a lower price later). But in the FOREX you are always buying one currency (base) and selling another (counter). If you sell the pair you are simply flipping which one you buy and which one you sell. The transaction is essentially the same. This allows you to short-sell with no restrictions.

You want to be able to short-sell with no restrictions so you can make money when the market drops as well as when it rises. The problem with traditional stock market trading is that the market has to go up for you to make money. With FOREX trading you can make money in all directions.

Omar Vargas; FOREX Trader and Freelance writer.
http://www.1-forex.com

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