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If you have read our previous article, then you will already be familiar with some of the principles we talked about such as the fact that Forex is indeed the very largest financial industry in the world, so huge in fact that is 3 times as larger as both the Stock and Futures market combined. In today's article, we will go over some of the tangible advantages that Forex represents in terms of potential and above all accessibility. Accessibility is indeed a driving force particularly of beginners or traders with limited start up funds. Indeed in this article, we will show how it is possible to become a Forex trader with as little as $250. In later articles, we will also introduce the notion of leverage and how with a limited startup deposit, you can multiply your earning potential by a factor of 200. (Meaning that if you had $500 available as a deposit you would, through leverage be able to buy and sell $10,000 worth of currency! But we will leave this for later.) Today we will answer the questions that is most asked: Why Should You even Want to Trade Foreign currencies? The answer to that question, I must confess is one of the reason why I talk so much about Forex, and indeed, why so many traders are currently well established in terms of financial stability and more. Yes. The answer lies in the simple fact that no other industry allows even complete newbies with very little money to invest to get into a position where they too can achieve their financial goals, which ever they might be! If you have ever walked through the streets of a city stock exchange district, one thing about all will have caught your attention! The display of power and money! Far from me the idea to lure anyone with promises of riches, fancy Italian sports car or even chauffeur driven Rolls Royce's but the truth is, if there is one market which makes it possible to have such toys, it is indeed the financial market! And the Foreign Exchange Market is even larger than that! How much larger? Well, if you take the Stock and Futures markets, combine them together, take the result and multiply it by THREE, then you will have some idea of how larger Forex is! Here are some reasons why you should consider Forex as a means to achieve your own financial goals: • No government fees • No clearing fees • No commissions • No brokerage fees • No exchange fees There are of course many other reasons and we will cover those in a different article such as Leverage, Free Accounts, Lots sizes and many more. Forex Trading is an enormously profitable business, which as we have seen before doesn't require a great deal of start-up deposits (the money you need to have available in order to start buying and selling). Indeed, if this was like any other money market, chances are that most Forex traders who are successful in this industry might never been able to start!

GBP/USD Status:Close ENTRY POINT:Sell at 1.2404 TAKE PROFIT:1.2373 STOP LOSS:1.2505 DATE: 30-Mar-2017 USD/JPY Status:Close ENTRY POINT:Buy at 111.04 TAKE PROFIT:111.35 STOP LOSS:110.12 DATE: 30-Mar-2017 USD/CHF Status:Close ENTRY POINT:Sell at 0.9963 TAKE PROFIT:0.9994 STOP LOSS:0.9872 DATE: 30-Mar-2017 EUR/USD Status:Close ENTRY POINT:Buy at 1.0734 TAKE PROFIT:1.0703 STOP LOSS:1.0825 DATE: 30-Mar-2017 Get Best Forex Signals Service.

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DATE :27-03-2017 EUR USD :10 USD JPY :11 GBP USD :15 USD CHF :12 TOTAL :48 Get Best Forex Signals Service.

Fibonacci discovered that a series of numbers and their ratios to each other occurred throughout nature and in fact are incredibly commonplace in the world. Just how does this relate to forex trading? The ratios that the Fibonacci numbers exhibited are also seen in the price movement of currencies, Ratios found in the Fibonacci sequence can be seen in currency price movements. They also appear in the price movements of stocks and other types of investments. The big three numbers you should pay attention to in Forex trading are 0.382, 0.5, and 0.618. The resulting Fibonacci numbers 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, are the result of his equation. To use these numbers, in technical analysis to make money, you dont have to solce any mathamatical problems. you dont have to even memorize them because all the trading platforms let you draw the Fibonacci levels and they have everything ready to use. The only thing you should know is how to use the Fibonacci levels in the technical analysis. While Fibonacci numbers have many applications, they have received much interest from Forex traders due to their uncanny accuracy in spotting market turning points well in advance. Another term that often goes along with Fibonacci Numbers is 'The Golden Ratio'. In Fibonacci Numbers series, if we take the ratio of two successive numbers in the Fibonacci series (that is, we divide each number by the number after it in the sequence) we will gravitate towards a particular constant value. That value is 0.6180345 which has been referred to as "the Golden Ratio". If you also calculate the ratios using alternate numbers in the Fibonacci series (that is, do the same calculation but skip over a number) the resulting ratios approaches 0.38196. Fibonacci Guides Stop Loss Levels A trader can use Fibonacci numbers to set stop loss orders. Fibonacci Guides Position Size Depending on the risk you are prepared to take per trade, Fibonacci numbers can also define position size. Fibonacci Guides Objective Setting Utilizing Fibonacci numbers, once a pattern competes against a Fibonacci set price zone you can utilize this information to set profit objectives to salvage partial profits or re-adjust stop loss levels. Chart oriented individuals are split on the usefulness of applying Fibonacci to any of the popular the markets. There are also some technical analysts who would use little else to analyse markets. Like most things in life, it is up to individual preference and developing a strategy that works easily with your existing investment approach. This is just the barest of introductions to Fibonacci Numbers. If this subject interests you search Fibonacci Numbers and really understand it before you invest your hard earned money.

In the 1700s a Japanese man named Homma, a trader in the futures market, developed a method of technical analysis to analyze the price of rice contracts known as candlestick charting. Candlestick charts display the high, low, open, and close for a commodity each day over a specified period of time, in a format similar to a bar chart, but in a manner that maximizes the relationship between the opening and closing prices. A narrow line shows the day's price range. A wider body marks the area between the open and the close, referred to as real body. If the close is above the open, the body is white or green (not filled); if the close is below the open, the body is black or red (filled). Steve Nison is normally credited with popularizing candlestick charting in the west and is recognized as a leading expert on how a trader might interpret the readings. Candlesticks provide specific visual cues that make understanding price movement easier. Trading with Japanese Candle Charts allow speculators to better comprehend market feelings. Offering a wider range of information than traditional bar charts candlesticks give emphasis to the relationship between close price and open price. Traders who use candlesticks are likely to more quickly identify different types of price action that tend to predict reversals or continuations in trends. Furthermore, combined with other technical analysis tools, candlestick pattern analysis can be a very useful way to select entry and exit points. Candlestick charts are much more appealing and understandable than a standard two-dimensional bar chart. There are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period. There are multiple forms of candlestick chart patterns: White candlestick - signals uptrend movement Black candlestick - signals downtrend movement Long lower shadow - bullish signal Long upper shadow - bearish signal Hammer - a bullish pattern during a downtrend; Shaven head - a bullish pattern during a downtrend; Hanging man - bearish pattern during an uptrend Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade; Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade; Shooting star - a bearish pattern during an uptrend Spinning top white - neutral pattern, meaningful in combination with other candlestick patterns Spinning top black - neutral pattern, meaningful in combination with other candlestick patterns Doji - neutral pattern, meaningful in combination with other candlestick patterns Long legged doji - signals a top reversal Dragonfly doji - signals trend reversal Gravestone doji - signals trend reversal Marubozu white - dominant bullish trades, continued bullish trend Marubozu black - dominant bearish trades, continued bearish trend Candlestick charts are a visual aid for decision making in stock, forex, commodity, and options trading. This is a very simplified primer on Japanese Candlesticks. If you are not interested in this much detail I suggest that you research automatic Forex Trading systems.

DATE: 22-Mar-2017 EUR USD :22 USD JPY :52 GBP USD :-13 USD CHF :36 Total: 97

GBP/USD Status:Close ENTRY POINT:Buy at 1.2371 TAKE PROFIT:1.2402 STOP LOSS:1.2330 DATE: 21-Mar-2017 USD/JPY Status:Close ENTRY POINT:Buy at 112.79 TAKE PROFIT:113.10 STOP LOSS:112.38 DATE: 21-Mar-2017 USD/CHF Status:Close ENTRY POINT:Sell at 0.9965 TAKE PROFIT:0.9934 STOP LOSS:1.0006 DATE: 21-Mar-2017 EUR/USD Status:Close ENTRY POINT:Buy at 1.0790 TAKE PROFIT:1.0821 STOP LOSS:1.0749 DATE: 21-Mar-2017

The first step is to determine how much money you need to pay your everyday bills. When the accumulated monthly profit amount is at least twice as much as the amount you need to live, you may consider taking out 50% of those profits. Once you reach that point you will make a living and your trading account will increase each month and at the same time the amount you deduct from your account will also increase every month from that point on. To accomplish that goal you need start up capital. Please do not expect to open an account with $3,000 and expect to earn a livable wage from that investment. If you are looking at making around $2000-2500 a month, which is 150 to 250 pip if you are trading whole lots, then you would expect drawdowns of not less than 300 pips. Your initial account won't last very long. You should plan on investing at least $25,000.00 if your goal is to earn around $2,500/month. There is a very good quote attributed to Dr Alexander Elder who wrote an excellent book called Trading for a Living. That quote is as follows: Brokerage records indicate that 95 out of 100 people trading today will probably be gone from the markets a year from now. They will hit rock bottom, crumble and leave. They will try to forget trading as they would a bad dream. In order not to be one of the 95% mentioned above you need to find a system. A good system is the key of financial investing success. If you have your own system or you want to copy some elses system, you need to look at two things first: 1. Maximum Drawdown, 2. Feasibility and hours of trading. There are a few types of traders: Casino Traders Casino Traders are traders making decisions based on instinct alone. Such traders always have two results to expect the price is going to go down, or the price is going to go up. Casino Traders will do their best to follow the trend, but without understanding how a trend works, they will only have past price history to Bookworm Traders The Bookworm Trader, has gained Forex knowledge from researching free resources available across the web, participating on Forex forums, reading free e-books, and other materials. It may be a very long time before they are ready to trade confidently. Educated Traders As we know, 95% of all traders end up losing, and only 5% survive as successful traders. Before investing money in a live account, they invest in themselves by paying tuition for professional Forex education. The dream can become reality, it is not easy but it is doable. Many Forex investors utilize automatic Forex Trading Programs. There are some truly amazing programs available. Do some serious research.

EUR USD :12 USD JPY :-08 GBP USD :51 USD CHF :14 TOTAL :69

Points to evaluate: Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. You should know that Forex brokers don't charge a commission, so this difference is how they make money. In comparing various brokers, you will find that the difference in spreads in Forex is as large a spread as you would find in the stock market. To keep more of your profits keep the spread lower. Quality Institution - Forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required. Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You will find this important information on the website of its parent company. Make sure your broker is backed by a well known and stable institution. Tools and Research - Forex brokers offer a multitude of trading platforms for their clients. Before committing to your chosen broker, be sure to request free trials to test different trading platforms. Find a broker who will give you the correct tools you need to succeed! Questions to ask your prospective broker: What are the normal spreads? Are the spreads fixed or do they vary? Do the spreads differ depending on ticket size? Do all clients on your platform get the same spreads? Some types of transactions Margin Trading Margin means borrowing money from a broker to buy a stock, or commodity, or currency pair and using the investment as collateral. It is, to all intents and purposes, a performance bond in cash or another means of security deposited by a trader. Barriers This is a standard option that automatically cancels out if spot trades through a prearranged knock-out level. This level is set below the initial spot for a call option, and above spot for a put. Reversals Reversals are primarily a Floor Trader strategy used to capitalize on minor price discrepancies between calls and puts. As implied by its name, reversals are the exact opposites of conversions. Types of brokers Market Operators This most reliable group includes big commercial banks which are regulated according to bank laws and rules. If you elect to deal with such banks you will need large amounts of money to start. Minimal lot is approximately $1, 000, 000. Market-makers Market makers are financial which work with smaller broker companies and offer probable opportunities of Forex trading to individuals whose trading capitals exceed $50,000. They offer lower cost of Forex market trading. The minimal size of the bill is $50,000. Small brokers Smaller brokers working with individuals' small capital - which ranges from hundreds up to several thousand dollars. Risks of carrying out of deals begin when these little broker enterprises clear orders of their clients and work with the dealer or a market-maker. Kitchens The scheme of "kitchen" works fine if somebody doesn't start to win all the time. Their founders know that many clients just lose their money. And the profit of "kitchen" is these clients' losses. Then "kitchen" is closed with the remnants of clients' money and about two months later appear under other name. The scheme usually works like that. They offer to teach you for free and to learn how to trade in Forex market. Be aware that anytime money is involved, some one will try to help themselves to it.

DATE :20-03-2017 EUR USD :08 USD JPY :12 GBP USD :15 USD CHF :10 TOTAL :45

The Foreign Exchange market (Forex) is truly the largest exchange in the world. The amount of dollars traded on the Forex market on a daily basis is in the trillions. Most of this currency trading takes place between between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. However, individual traders are starting to get in the mix, using internet discount brokers such as Etrade to participate in the currency exchange market. There is no central exchange or meeting place for the Forex. All trading is done over computer networks between traders in different parts of the world. Also, unlike the stock market, the foreign exchange market is open 24 hours per day, because it is a global market. A trader in Hong Kong may be exchanging currency with a trader in Australia while an American trader is sleeping. There are several different markets within the Forex exchange system. First, there is the spot market. The spot market deals with trades that are based on the current values of currencies. One person trades a certain amount of currency with another trader in exchange for an equivalent amount of a different foreign currency. Spot trades take two days for settlement. The other two types of foreign exchange markets are the forward and futures markets. In the forward market, the buyer and seller agree on an exchange rate and a transaction date is set for a specific time in the future, at which point the trade is executed regardless of what the rates are at that time. On the futures market, futures contracts are bought and sold based upon a standard contract size and maturity date. Futures trades take place on public commodities markets. A currency quote is listed differently from a stock quote. Stocks are quoted in terms of price per share. Currency exchange prices are listed as either a direct quote or an indirect quote. A direct quote uses the domestic currency as the base and the foreign currency as the quote. An indirect quote works the exact opposite way. So, if you were to view a quote in an American newspaper that said USD/JPY = 75, that would be a direct quote and would mean that $1 of U.S. currency is equal to 75 Japanese yen. If that same quote appeared in that same American newspaper and was listed as JPY/USD = 0.013, that would be an example of an indirect quote. As with stock prices, currency exchange prices have a bid and ask spread. The current bid is the amount of foreign currency that someone is willing to spend in order to buy $1 U.S. base currency. The ask is the amount of foreign currency that someone is demanding in order to be willing to sell $1 U.S. base currency. The Forex markets are generally considered to be less volatile than then stock market because within the course of a trading day, it is highly unlikely for the value of a single currency to move all that much. With equities, it is not uncommon for a trader to buy a stock, and then a negative press release causes the stock to lose considerable value within a day or even a couple of hours. Sometimes, however, the Forex can be volatile. If there is a significant economic or political development with a certain country, the currency of that country can lose value quickly. There is a higher degree of liquidity on the currency exchange then there is on the stock exchange because the currency exchange is open 24 hours per day and because the very nature of currency exchange is to bet on when certain currencies will go up or down; so, it is easy to sell your position in a certain currency even when the value of that money is going down. A plummeting stock is more difficult to unload, but not impossible. If you want to begin currency tranding, try to set aside some money and open an account with an online broker. Start slowly, then as you get the hang of it, work your way up to larger trades and higher volume. However, do not gamble your nest egg on currency trading because inexperienced traders can lose everything they have rather quickly in spite of the relative safety of the Forex market.

Though when you are caught up in trading, it is very easy to become so focused on the technical aspect and trying to gain an edge with the latest indicator that you forget to focus on the mental aspect of trading. In a sense, a trader will fall into the trap of putting to much of their focus outside of themselves and will actually forget that *they* are the ones making all of the choices and decisions. This mental aspect of forex trading incorporates what we call the 'soft elements' of a forex trading strategy, and the two main parts to focus on are psychology and money management. This is as opposed to the 'hard elements' of your trading strategy, which would be the type of charts, indicators, and oscillators you are using that make up the technical portion of your trading strategy. Money management and trading psychology are inextricably related, and one cannot be successful without the other. Trading psychology mainly encompasses focusing on your emotions while you are trading and making sure that emotions such as fear or greed do not make you deviate from the rules of your trading strategy. You will feel all kinds of different emotions during your forex trading (it can be rather like an emotional roller coaster), but the two emotions that can be the most devastating are fear and greed. Trading psychology means that you learn to tame these emotions as they pop up, and coming to terms with the fact that dealing with large sums of money can be a very emotional experience. Money management is an offshoot of forex trading psychology, but it is probably the most important soft or mental element of your strategy. A simple definition of money management would be 'acting in such a way to maximize gains and minimize losses.' One of the most important rules of proper money management is to always trade with the same number of lots every time you receive a buy or sell signal. Another rule is to never forget to enter a stop loss order, and always go for the same profit/loss ratio. A common proportion that many forex traders follow is 1.5/1 or 2/1, meaning that they will always enter a trade hoping to get 1.5 or 2 times the amount of pips that they are willing to risk (and this usually includes the spread). As you should see, money management can be difficult or even impossible to implement if you ignore trading psychology, because you must already have emotional stability if you are going to focus on maximizing gains and minimizing losses. If you get fearful every time the market turns against you and rush to exit the trade before it has time to turn around in your favor, you will short circuit the power of your trading strategy. If you ignore the soft elements of your forex trading strategy, it really doesn't matter how powerful your combination or indicators and oscillators is because you will always fall short when it comes to making an emotional judgment call. There is no quick fix to creating a profitable forex trading strategy; including all of the essential technical and mental aspects is the key to success.

Forex stands for foreign exchange. It is the largest trading market of the world with an average daily trade of US$ 2 trillion and above. The market is held in high esteem for its long working hours, geographical dispersion and extreme liquidity. A trader with basic knowledge regarding forex trading can easily earn substantial profit in forex market. And to get the knowledge of forex trading, a trader can mull over forex training programs. Following is a brief note about the nature and worthiness of forex training programs. Forex training programs are available everywhere. Several forex firms have come up with forex training courses which are designed to boost a new trader before he lands in the forex market. The best place to get forex training is online. Just a single click will help you identify forex firms, who specialize in offering forex training programs through online method. With their help, you can get the basics of forex market and learn the ways to combat the odds of the forex market. Online method of forex training is good for newcomer for it helps him to get prepared with nuts and bolts of the trading market. Except online, a trader of forex market can also avail training programs from traditional classrooms. Several schools and colleges have been established to offer up to date information regarding forex trading to traders. Such training programs will help you get the basics of the forex market from its root. You can get practical experience of the trading market directly from the experts. You can also find quality books on forex trading written by experts from your nearest library. Experienced professional can also become good source for your forex education. Search out those, who have years of experience in forex trading. They can tell you what matter in the market and when to trade for earning substantial profit. Now, while selecting a forex training program, you need mull over a few important things. It is important for you to be sure about the worthiness of your forex training program. A good forex training should address the basics of the market. It should tell you how the forex market actually works. It should also talk about the risk control measures of fx trading. A good forex training program should also teach you the techniques to manage a forex trading account. With access to a good forex training program, you get a scope to remain up to date about the latest happening of the trading industry. Here, you get a scope to learn from the masters, who have years of experience in forex market. Forex training is always beneficial for a trader, even if he has a few months of practical knowledge in forex market. And for a new comer, it is a blessing.

DATE :16-03-2017 EUR USD :17 USD JPY :19 GBP USD :18 USD CHF :00 TOTAL :54 DATE :15-03-2017 EUR USD :57 USD JPY :92 GBP USD :61 USD CHF :49 TOTAL :249

Even though you start with 60% winning odds 95% of traders will lose because of their Poor Money Management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is. It's very important for you to understand the concept of money management and trading decisions. Money management represents the amount of money you are going to invest on one trade and the risk your going to accept for this trade. There are many, many different money management strategies. Preserving your balance from high risk exposure is the main objective. You must understand what the following term means. Core Equity Core equity = Starting balance - Amount in open positions. If you have a balance of $20,000 and you enter a trade with $2,000 then your core equity is $18,000. If you enter another $2,000 trade, your core equity will be $16,000. When you trade without sound money management rules, you are in fact gambling with your investment. You are not looking at the long term possible on your investment. Rather you are only looking for that quick high return. Sound money management rules will not only protect your investment, but they will make you very profitable in your investing future. People go to Las Vegas, Atlantic City or New Orleans to gamble hoping to win a big jackpot. We all know people who have won and won big. The question might be how are casinos still making money? In the long run, casinos are still profitable because they take in more money from the people that don't win. Like attempting to lose weight and working out, money management is something that most traders say they practice Money Management but few truly practice. Money management is unpleasant because it forces traders to constantly monitor their positions and to take necessary losses. It is difficult for most people to do that constantly. What is the Percentage Risk Method? The percentage risk method aims to risk the same percentage of your cash float (not the same trade size) for each trade. This method assumes that you are aware of: 1. The stop loss size of the trade 2. The percentage risk (of your unleveraged cash float), that you want to risk per trade. The percentage risk method states that there will be a given percentage of your cash that is at risk per trade. Before you know what is at risk in a trade you need two bits of information: the stop loss size for that trade, and the percentage risk that you've chosen in your investment program. Assume that you chose a percentage risk of 4% of your cash float. If your cash float is $10,000, this means that you want to risk 4% of $10,000 per trade, which is $400. So with every trade, the maximum you would be willing to lose would be $400. With this chosen percentage, it would take you 25 losses in a row before you lose your entire float (25 x 4% = 100%). If your system is a good one, then 25 losses in a row would be highly unlikely. On the other hand, if the risk chosen was 2%, then it would take 50 rather than 25 losing trades in a row to lose the entire float. The number of losing trades required to lose the float decreases as you increase the percentage risk. Forex money management is a way of life for the prudent investor. Practice money management and you just might be one of 5 out of 100 that will be in a position to make money from Forex Trading.

Price Charts contain information regarding FOREX prices at specific time intervals. Intervals range anywhere from one minute to several years. Prices are usually displayed in the form of line graphs, and occasionally the change over each given time period is depicted in the form of a bar graph or candlestick graph. Line graphs are useful for providing a broad overview of price fluctuations over time. They display the closing price at the end of the given time period. Line graphs possess several advantages when compared to other types of graphs: they are are quite easy to understand and they are useful for finding patterns over a long period of time. However, a key disadvantage is that they lack the degree of detail possessed by bar and candlestick graphs. In contrast, bar graphs provide a greater amount of information than line graphs. The length of each bar demonstrates the price difference for the specific time interval - a longer bar indicates a bigger separation between high prices and low ones. Furthermore, each bar contains two tabs. The left tab on a given bar displays the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. Using this system, it is easy to see price fluctuations over a given time interval, and to understand specifics of the variation in price. At times, it can be difficult to read bar graphs which have been condensed and printed on paper, but most computerized graphs usually possess a zoom feature, which makes it easy to see the specifics. Candlestick graphs originated in Japan, where they were frequently used in order to analyze rice sales. These resemble bar charts in that they indicate prices at the beginning and end of a certain time interval, as well as the peak and low prices over that interval. Furthermore, these charts are color coded, which assists in the ease of understanding. Green candlesticks are associated with increasing prices, while red candlesticks demonstrate decreasing prices. Candlestick shapes - these shapes, when viewed in comparison with neighboring candlesticks, provide information regarding market fluctuation. This information is helpful in analyzing graphs. Different shapes of candlesticks come as a result of several values: price diffusion, and the disparity between prices at the beginning and end of a given interval. Candlestick patterns have been dubbed names which correlate with their physical shapes; names including 'morning star' and 'dark cloud cover'. When an individual learns these shapes, he or she is easily able to find them on a graph, and utilize this information in identifying tendencies in the current market. Price graphs are frequently supplemented with various technical indicators. Many of these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market. Common technical indicators frequently used in FOREX are as follows: Average Directional Movement Index or ADX for short - this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual. Moving Average Convergence/Divergence or MACD for short - this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line. Stochastic Oscillator - this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought. Relative Strength Indicator or RSI for short - this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity. Moving Average - this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6. Bollinger Bands - these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.

Forex Day trading is system of trading on the foreign currency exchange market, where the trader begins and ends all trades on the same trading day. The trades are typically completed quickly, with the trader profiting from the changes in a currency exchange rate from time he buys and sells. Depending on the method or system that the trader uses to pick the trades, it can be very complicated. Currency exchange rates fluctuate over the course of the day. Multiple factors change the rate many times per day. Some of those factors are other traders, world news and what current rumors. Day trading in the foreign currency market is affected by rumors, current events and news stories more than other types of trading in stocks, currency and future markets. Traders can maximize their profits by paying close attention to the current news and how it is affecting the currency exchange rates. The foreign exchange currency market, also referred to as Forex, is the most liquid market in the world. Each day, the trading volume on Forex exceeds $1,300,000,000,000 U.S. dollars are. Forex is the world's largest market, partly due to the practice of day trading. Day trading differs from other types of trading in the duration between buying and selling the stocks, or in this case currency. A day trader sells everything by the close of the day's market. No currency is held over to be traded the next day. Whatever the trader buys must be sold by the end of the day or vice versa. In actuality, the market does not have an end of the day. It is open 24 hours, there from Sunday afternoon to Friday afternoon. So the beginning and end of the trading day is defined by the trader, and not the market itself. One thing to keep in mind when day trading is that the more frequently you trade the higher your transaction costs will be. This is why it is important for Forex day traders to use trading systems which can produce enough profit to overcome all transaction costs. It is believed that the difference between a day trader and an investor is the duration between buying and selling. That definition is simplistic. The major difference is in the goals and perspective of the traders. An investor buys a stock believing it will increase in value over time, and expecting to hold for a long time so that increase can happen. A day trader buys and sells in anticipation of minor, short-term fluctuations in the currency market. Forex trading is done in large lots of 100,000. A small fluctuation in the exchange rate might not seem significant, however, it can be very profitable, or costly, when multiplied by 100,000. Day trading on the foreign currency exchange has potential risks and rewards just like any other type of trading. Successful traders get to know the market and understand the ramifications of their trades. Traders who begin trading without an understanding of the fundamental and technical workings of the Forex market are destined to fail, just as they would in any business. High potential profit comes with high risk. Traders must be educated and prepared before they engage such the volatile, fluctuating market of day trading.

Online Forex brokers give clients access to information about market prices and the ability to make trades via their forex trading software offerings. Online Forex trading is fairly well established so there is general agreement amongst brokers about what kind of software is optimum for these purposes. The major division of the software is between client based and web based examples. Of course, a primary need is for real-time, second-by-second access to market information. Forex trading is very fast paced and there is no room for a lag in delivery of information so that trading decisions can be properly made. Despite the claims of all Forex dealers that their particular software will perform speedily there are many things that can delay the receiving of data. Having a newer computer, with adequate power and speed, is one critical consideration. Another is to have an Internet connection that is high speed so you can take advantage of all that your broker's software can offer you. Since distance from the broker's servers is another important point it is wise to have a broker in the same general area as you are. Having a broker half-way around the globe may cause you critical delays during times of rapid trading. This, of course, may be less of an issue as trading technologies advance. A Choice: Client Based or Web Based? Client based software offerings are those where critical portions of the software resides on your own computer. Web based packages run over the Internet and you can access your account on your broker's website from any computer with a web connection. Is one preferable? The trend is toward web based packages because these are much more convenient and reliable. If your computer is down for any reason you can still conduct business through a another computer. With client based software you would be restricted to the one computer. Because the web-based software resides on the broker's system there is much greater security. The broker can secure the data by high-strength encryption so transmissions are always protected. A single trader's computer, on the other hand, is much more vulnerable to hackers, viruses, and other such security breaches. The most basic features of a Forex trading software package is allowing a trader access for buying a selling and seeing real-time price information. So, of course, all packages should offer this ability. The trader can see up to the minute quotes for those currency pairs most often traded and can manage their accounts, either buying or selling by price or using stops and limits to enter and exit the market. Charting functions integrated right into the software are also very desirable. Most brokers will offer a basic software package for free but there are higher-level, more capable programs also offered for a monthly fee. These more capable programs give you access to a large range of analytical functions and allow you to trade directly from the chart withing the Forex trading platform. Since the heart of these systems are the data servers, Forex brokers' servers must be secure, with all transactions processed correctly and all data integrity maintained. Since every computer system can be crippled by events outside of the control of individuals there should be separate backup servers in different locations. This means that a natural disaster, or even a simple loss of power supply, does not cripple the operation. Data backups at regular intervals will also go a long way toward assuring that client data is preserved in an accurate state no matter what.