FOREX Fundamental Analysis

Most FOREX traders rely on analysis to make plan their trading strategy. This article will discuss fundamental analysis. The other common form of analysis is technical analysis. After reading this article you should have a better understanding of fundamental analysis and how to use it as part of your FOREX strategy.

Political and economic changes are the basis of fundamental analysis. These can frequently affect currency prices. Traders that take advantage of fundamental analysis will gather their information from a variety of news sources. They are looking for information about unemployment forecasts, political ideologies, economic policies, inflation and growth rates.

Fundamental analysis will provide you with an overview of currency movements and a broad picture of the economic conditions. Most traders then will combine their fundamental analysis with technical analysis to plot actual entrance and exit points as well as confirming the information provided by their fundamental analysis.

Just like most markets the FOREX market is controlled by supply and demand. Many economic factors can affect the supply and demand but the two most critical ones are interest rates and the strength of the economy. The over all strength of the economy is affected by changes in the GDP, trade balances and the amount of foreign investment.

There are many economic indicators released by government and academic sources. These indicators are usually released on a monthly basis but will sometimes be released weekly. These are pretty reliable measures of economic health and are closely followed by all traders. There are many indicators that are released but some of the most important and commonly followed are : interest rates, international trade, CPI, durable goods orders, PPI, PMI and retail orders.

Interest Rates - can cause a currency to either strengthen or weaken depending on the direction of movement. In some cases high interest rates will attract foreign money, however high interest rates will frequently cause stock market investors to sell of their portfolios. They do this believing that the higher cost of borrowing money will adversely affect many companies. If enough investors sell of their holdings in can cause a downturn in the market and negatively affect the economy.

Which of these two affects will take place depends on many complex factors, but there is usually an agreement among economic observers as to how the current change in interest rates will affect the general economy and the price of the currency.

International Trade - If there is a trade deficit (more items imported than exported) it is usually considered a negative indicator. When there is a trade deficit it means that more money is leaving the country to buy foreign goods than is entering the country and this can have a devaluing effect on the currency. Usually though trade imbalances are already factored into the market consideration. If a country normally operates with a trade deficit then there should not be an affect on the currency price. The currency price will normally only be effected by trade differences when the deficit is greater than the market expected.

The measurement of the cost of living (CPI) and the cost of producing goods (PPI) are a couple of other important indicators. You should also watch the GDP which measures the value of all the goods produced in a country and the M2 Money Supply which measures the total amount of currency for a country.

In the US alone there are 28 major indicators, these can have a strong effect on the financial market and should be closely watched. This information can be found many places on the internet and is provided by many brokers.

How To Avoid Some Common Forex Scams

There is an old saying that states, "A Fool and his Money are Easily Parted". With the proper strategy and resources from which to educate yourself, there is no reason to be foolish. With all of the opportunities to make money from home there are plenty of people who can't wait to get right in and get started. The problem is, there are also plenty of scam artists out there who are all too willing to rip you off if you give them half a chance. In the Forex industry, experienced traders don't fall for the scams, but people who are new to the industry are ripe targets. Therefore, you need to know what to look out for.

The government agency that regulates Forex trading, as well as other futures and commodities markets, cautions newcomers to watch out for the scammers that try to paint unrealistic pictures of huge profit potential in Forex and other trading markets. Recently they have also put out numerous fraud alerts for consumers specifically about scams involving the foreign currency exchange market. Here are a few of the tips from the CFTC to give you some insight on how to avoid scams.

First off, you always need to be wary of people who promise huge returns at low or no risk. If you see ads that say things like, "Make $2500 in minutes" that is a pretty good sign that they are not a reputable company. A reputable company will always temper the allure of large profits with warnings that you can also lose just as big or bigger. The Forex market is not a cash cow; there are risks just as there is with any investment opportunity. People who are unaware of the risks involved usually quit trading when they begin losing money.

You were equipped at birth with the ability to question and reason. Use it and be suspicious of everything until you verify that a company is reputable. Use the CFTC and investigate the company or broker you are thinking of doing business with by checking their fraud alert pages. Another good thing to do is see if the company is registered with the CFTC or if they belong to the National Futures Association. By using these resources you can easily find out if there have ever been disciplinary actions taken against the company you are investigating. You can also verify addresses and phone numbers. With the ease of access on the Internet, it has become increasingly easy to run fraud scams with false credentials and fake names.

Just think about how easy it is to have an online presence now. A Domain name is less than ten bucks and you can get web hosting for less than $10 a month. That is a pretty cheap investment for the opportunity to reach millions of people and part them and their money. Be sure to take the time to investigate and verify the people you are considering with the agencies I mentioned above before you give them any private information or credit card numbers. Forex trading can be a wonderful experience and business. Just make sure you work with a reputable company and do your homework.

Forex Predictions

The Euro apparition led to an important decrease of Forex business, and the firm opened new directions, like applying for banking license or realizing regular transactions, similar to the postal service. Most traders dont like risk - they believe people that say that you can trade safely. The advantages of FOREX online system and how to choose a good one are outlined in this article. Sure, youll miss the absolute top and bottom, but no one can pick those anyway - so dont even try.

We generally do not consider these to be forex brokerage firms. Also, plain vanilla options are often the basis of forex option trading strategies known as exotic options. A trader needs to be very careful while choosing a broker. Leverage is the ratio of the money present in the account of the trader to the amount that opened the account. It deals with buying of one currency and selling of the other at the same time. The execution speed of discount brokers should also be considered, especially when you are a day trader.

You want the assurance that he/she will be able to act on your decision and access the funds needed. Many people when looking for a forex broker are overly concerned about the cost. Forex Broker Info is the sister site of Incorporating in Florida Web. But because of web-based Forex brokers individual traders now have that access as well. Brokers keep traders informed of market fluctuations, which help them to take maximum advantage of the forex market.

This alone is enough to highly recommend a Forex trading training. They do a technical analysis of market conditions and use a combination of indicators to identify trends and isolate profitable entry and exit points. In day trading, different shares are bound to undergo different resistance and support levels. Throughout the course of a month I managed to compile 23 wins and 2 loses, for a net profit of $1,219. I happened to be browsing the internet one day looking for things such as FOREX signals, automated trading signals and FOREX profits. I thought to myself, this is excellent; I am ready to begin with a live account and to trade for myself. After some though, I came out with the assumption that assuming I am the owner of a Forex signals provider, in order for my business to be in black, obviously I need some satisfying customers.

Failures, disruptions, or delays from these types of problems can happen. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. Pivot points take note of previous support and resistance lines as price will come back to retest these levels time and time again. Before you select a forex broker, ask for his/her references. A bull or a bear market does not affect the Forex market.

Earn Unlimited Money Trading in Global Forex

Global money trading involves the buying and selling of world's currencies, par excellence the most formidable ones on the fx markets. Initially only the privileged few like the enormous banks and big shot financiers had access to this remarkably lucrative market. But with the ubiquitous presence of internet, the suitable time for trading in global forex is not restricted in the hands of the big players. The hobby investors can also tap the high profit potential of the forex market to make some great money.

There are some typical advantages related with trading money in the global forex market that has made it the world's largest money spinning market.

foremost of all, while the national stock market operates with work hours, the Global forex stays open 24 hours a day. The fx-market opens every day in Sydney moving westward as the day advances. A truly globalized market, the trading moves around the globe as the trading opens in each major center, first to Tokyo, London, and New York. Thus, unlike any other financial market, you can instantly correspond to any type of fluctuations in any currency followed by economic, social and political events. And you can easily take decision the time they occur---day or night.

Unlike the domestic stock market, you do not have to deal with a share agent and do not have to pay any commsiion for making the trade. The FX market is Over the Counter type of market. It operates on the 'interbank' basis. Thus transactions are conducted between two parties in two different parts of the world via internet or over the telephone.

Then leverage is also essentially high in this market and practically you can make deals 100 times greater than the value of your deposit money.

You do not have to be present in person in the market to carry on the trade. As this market is not like any other markets you can think of. Trading is not restricted to any centralized location. Trading occurs worldwide and Forex is the world's largest and most intense market.

The currency trading involves the business on the spot between the US dollar and the six major currencies (Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar). Thus it is a enormous market which can not be controlled by any single factor or player. There is impossible for one man to control and manipulate the market in his favors. This trait makes it the most exciting market in the world. beside the major players like Central banks, private banks, multinational corporations, and money managers the little man in the street can also make unlimited money in the forex market.

So you can clearly see that there are significant opportunities of making money in this biggest market of the world. But there are risk factors as well. The aggressive day traders might experience substantial profit-loss swings per day. Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This implies you will always get an opportunity to react to the particular trends and a lower risk of getting trapped into bad deals without the opportunity of getting out.

Forex Trading and the Holy Grail

If you've ever looked into 'forex' (foreign exchange) trading, you will have a good idea of the potential gains. You can become wealthy in a very short space of time, although it pays to remember that one person's gain is another person's loss. Remember the warning 'prices can go down as well as up'.

There are a number of brokers or spread betting companies through which you can trade. I'm going to give you some advice on maximising your chances of succeeding. You will face challenges along the way but if you persevere for long enough you may find yourself in a very positive situation. First and foremost, know what you are getting into. Read as much as you can about every aspect of trading, and remain objective with regards to the many opinions you will hear on how to go about it.

If you are spread betting then you will need to find a company that offers a competitive 'spread'. Shop around. Find out what a spread is - this is very important. Be very sceptical about trading systems that offer instant wealth. Trading methods that worked last year may have run out of steam in the current market.

Once a system becomes widespread enough then too many people know how it works. Lots of people start using it and any advantage is wiped out. You may end up slaving away for little or no profit at all.

There is one system that can potentially make you rich. It's called 'your system'. That's right. The one you developed and didn't tell anybody about. This can take a good deal of work to develop. There are numerous software packages available to help you monitor market patterns, and design your killer strategy. If you develop a strategy that works then keep it quiet!

In my experience the most consistently profitable trading technique is a method called 'skimming'. This involves placing many trades for small market movements which build your profits based on a considerable number of transactions. It's only possible for spread betters to profit from this if they are able to place bets with a tiny spread. This requires experience and a good knowledge of the markets. Make sure you are fully prepared. This is an intensive method - you didn't expect it to be easy did you?

I have one final recommendation which is extremely important. You may be raring to go but if you remember just this advice you will save yourself considerable amount of stress. The most important advice you will ever hear about trading is- 'only trade with money that you can afford to lose'.

'Is that all' you may ask. Talk to those who have lost the money they traded which they could not afford to lose. Beware anyone who suggests otherwise as they very probably have something to gain from your additional risk-taking. They don't care if you crash and burn, as long as they get their slice. If you are planning to win in the long term then limit your exposure to losses in the short term.

Author Resource:- Richard Barker co-publishes the Hammock Survival Guide. To learn more about forex trading visit http://www.hammocksurvivalguide.com/ in particular the 'Currency Trading' category. Feel free to reproduce any article as long as the author's resource box remains intact.

Study Spanish Abroad - an Introduction to Language Immersion

Study Spanish Abroad - an Introduction to Language Immersion

Many people opt to study Spanish through the immersion approach, that is, in a country where Spanish is spoken. If you join a Spanish immersion program in a country where Spanish is spoken, you will be able to learn quickly. You can listen to native speakers and practice conversational Spanish on the streets, to ask for directions, greet people, shop, etc.

Language immersion courses involve learning a second language by using it to communicate, rather than by studying it. Learners are asked to avoid using their first language, in the class room, or anywhere else. They are encouraged to use whatever limited skills they have, in the second language.

Popular Destinations for Learning Spanish

If you want to learn Spanish in Europe, Spain may be the best choice for you. There are also many other popular destinations like Mexico, Costa Rica, Guatemala, Chile and Argentina. Some towns in Mexico and Argentina also make you feel like you are in Europe. Mexico is one of the more popular destinations in Latin America, for learning Spanish.

If you like to visit faraway places, you can consider joining a Spanish course in Colombia, El Salvador or Honduras. Ecuador and Costa Rica are the right destination for you, if you love nature. Guatemala offers some of the cheapest Spanish courses. If you study Spanish abroad, you will not spend all your time in the classroom so choose a destination which appeals to you.

Choosing a Spanish School For those who want to study Spanish abroad, Enforex offers Spanish language courses in 24 destinations in Spain and Latin America. You can join a Spanish course in Spain, Mexico, Argentina, Bolivia, Chile, Costa Rica, Cuba, Ecuador, Guatemala, or Peru. Enforex offers general and specialized Spanish courses for university students and adults. Programs and summer camps are also offered for juniors and teenagers.

Lingua Service Worldwide represents private foreign language schools all over the world. If you want to study Spanish abroad, you can choose from the many Spanish immersion schools in Spain and Latin America, which are affiliated to Lingua Service Worldwide. Spanish immersion courses are available in Argentina, Mexico, Chile, Ecuador, Costa Rica, Guatemala and Uruguay.

If you want to study Spanish abroad, choose a country that you would like to visit. Keep your purpose and budget in mind, while selecting a Spanish language school. Consider practicing with educational technologies or a local school before you go, and be sure to keep up you language skills after you return.

Author Resource:- Jim Zorn is web master of the Spanish Learning Guide. Please visit to find out more about learning Spanish through local schools, studying abroad and educational technologies.

Technical Analysis of the FOREX Market

In FOREX trading there are two common types of analysis that most traders utilize, they are fundamental and technical analysis. Fundamental analysis attempts to predict currency movement based off of political and economy indicators. Technical analysis uses historical economic information to predict changes in the FOREX market. This is the first of two articles that will explore technical analysis.

Technical Analysis is based on the following assumptions:

1. Price movements are a result of combined market forces. Political events, economic conditions, seasonal fluctuations, supply and demand are all things that can effect currency prices. Technical analysts do not concern themselves with why the market moves, they are only interested in the movements themselves.

2. Currency prices on the FOREX market follow trends. Predictable consequences have been linked with many recognized market patterns.

3. Historical trends can be used to predict current price movements. Data on the FOREX market has been collected for the last 100 years, over that time certain patterns have become emergent. Human psychology and the way people react to certain circumstances are the basis of these patterns.

Most traders consider technical analysis to be of critical importance even though they may also use fundamental analysis to support and confirm the strategy suggested by technical analysis. Unlike fundamental analysis technical analysis can be applied to many different currencies and markets at the same time. Since fundamental analysis requires detailed knowledge of the economic and political conditions of a certain country it is nearly impossible for any single trader to perform proper fundamental analysis on more than a few countries.

For the beginning trader the complexities of technical analysis may seem overwhelming and they may even wonder if it is actually necessary. If you wish to be successful at FOREX trading you must have a strategy. Any strategy can work but technical analysis has been proven as a reliable and effective method of predicting market changes. Many forces can effect currency prices though so technical analysis is no guarantee, most successful traders utilize a combination of technical and fundamental analysis.

Any quality online FOREX broker should be able to supply you with a large variety of online charts for technical analysis. You can purchase in-depth professional charts, there is usually a monthly fee involved in gaining access to this information. There is also free software available to help you with charting. Charts provide different snapshots of timeframes and usually can also have analytical overlays. These charts will provide a broad over view and can also be zoomed into the tick level. Good charts are updated in real time. These may be available on your brokers site or could be part of their software.

You should learn the market and study trends before for a period of time before you begin actively trading. Most brokers will provide you with a practice account where you can place "paper trades". Paper trades are just practice trades where no real money is made or lost. They act just like a real trade though so you can see exactly how your trade would have turned out if you had placed it for real. This allows you to become familiar with your brokers system and software as well as learning about the market and how it moves without risking any money while you learn.

The second part of this article will explore the various charts and technical indicators.