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Sunday, November 14, 2010

Forex News Trading with the 8 Major Currency Pairs

Forex News Trader - How To Trade Forex Using News and Economic Releases
By [http://ezinearticles.com/?expert=Peter_Lim]Peter Lim

While many forex traders are technical traders and institute their trades based on technical indicators from a price chart, there are some traders who are basically pure forex news traders.

What is actually forex news trading?

The forex news trader is basically a forex trader who makes his decisions to trade based on news and reports that are released daily. He does not depend on any technical indicators at all.

Why is news trading possible?

The forex market is a 24 hours market, and there are 8 major currency pairs available for trading with well over 17 derivatives, therefore allowing the economic news releases almost daily from any one or more of these currency pairs to impact on their movements.

What are these 8 major currencies that forex traders often watch for economic news releases that impact on their value?

The eight major tradeable currencies are


1. U.S. dollar (USD)

2. British pound (GBP)

3. Euro (EUR)

4. Japanese yen (JPY)

5. Australian dollar (AUD)

6. Swiss franc (CHF)

7. Canadian dollar (CAD)

8. New Zealand dollar (NZD)



The availability of these currency pairs and their derivatives such as the USD/JPN, Euro/USD, AUD/USD and several others means that you can trade some currency or its derivative pair at any time as these currencies span the globe!

So for the forex trader who trades on the news, he will have his eyes and ears set on the release of economic news and data that affect currency values.

Generally, we will watch out for news regarding the interest rates or direction of interest rate such as the FOMC rate decisions, release of retail sales figures, indications of inflation which can be gauged from consumer price index or the producer price index, unemployment figures, news on industrial production, news that indicate a boost in business such as business sentiment surveys and consumer confidence surveys,manufacturing sector surveys and news on the country's trade balance(such as foreign purchases of US Treasuries).

Different new releases impact upon currencies, and often lead to breakouts in volatility.
The key to trading on news is to take advantage of these movements in volatility which can last a few minutes or hours, and even days into the future.

Trading purely on news release is harder than it seems, but the task is made easier and more profitable with the use of indicators, such as a breakout indicator as a bollinger band or a breakout of a candlestick or a price bar. Statistics have shown news release can trigger movements that range in size from 33 to 124 pips, leading to trading opportunities.

By studying into high probability trade setups that has occurred consistently with the release of historical economic data, the forex news trader can devise strategies that can allow him to extract fast profits from volatile movements arising from news releases. The potential gains can be massive where the forex news trader can react quickly.

Are your forex trading activities bleeding your account dry? Discover how you can reverse these stunning losses with massive profits by visiting the author's blog [http://1forex-trading.blogspot.com]

Article Source: [http://EzineArticles.com/?Forex-News-Trader---How-To-Trade-Forex-Using-News-and-Economic-Releases&id=456586] Forex News Trader - How To Trade Forex Using News and Economic Releases

Friday, November 12, 2010

Trade Forex News for Profit

Trading Forex News Releases - The Quickest Legal Way to Make Money
By [http://ezinearticles.com/?expert=Christopher_M._Hall]Christopher M. Hall

You can make so much money in the forex by trading news. I mean, where else could you make 10%, 20%, 50% of your money in just a few minutes? Trading forex news releases can be everything you imagine in trading - fun, exciting, heart-pounding, instant, daring, and profitable - if you know how to do it right!

So how do you trade the news profitably? Let's look at some basic strategies.

1. Don't trade before or immediately after news releases

You might get lucky, but more than likely you will just lose money. The spreads are too high, the liquidity is too low, and the volatility is too unpredictable.

2. Straddle strategy

Before the news is released, find major support and resistance lines. Place an entry order above the resistance line and an entry order below the support line. Make these orders dependent on one another so that when one of them is filled, the other is automatically cancelled (your broker can tell you how this is done).

What you are doing here is using the news as a catalyst to get the market beyond the major support and resistance lines. You are assuming that once those critical levels are broken, the market will continue in that direction and make you money.

3. Reversal strategy

It is not unusual for the market to take off in one direction after a news release only to retrace and move strongly the opposite way. This is because the first initial trading flurry is caused by small traders who just reacted to the news.

The big forex players actually read the news release (imagine that!) and form long-term biases based on the content. Then they enter the market with their millions of dollars and move the market in the opposite direction.

So be patient. Let the initial outburst run its course and look for signs that the big players are entering and reversing the market. Once you see this, jump in!

Learn so much more about the basics of the forex in my latest [http://www.tyrotrading.com/beginners.html]forex training ebook of more than 35 pages called "The Insider Secrets to Forex Trading for Beginners." Get it right now absolutely free. It gives a lot more detail about this subject and many, many other details profitable traders know.

Also, get trading advice, discounts on products, and insider forex trading secrets at my [http://www.tyrotrading.com/beginners1.html]forex training website.

Article Source: [http://EzineArticles.com/?Trading-Forex-News-Releases---The-Quickest-Legal-Way-to-Make-Money&id=4852130] Trading Forex News Releases - The Quickest Legal Way to Make Money

Thursday, November 11, 2010

Low Commissions Drive Stock Investors To Trading Forex

For Immediate Release:


Dean R Curtis


Invest Your Money with a Low Commission Forex Currency Account and Say Good-Bye To High Stock Commissions

Surrey, B.C. November 11 2010 - A common complaint stock traders have - is how much commission they’re forced to pay eats into their profits. Not so with forex – most forex brokers charge little or no transaction fee, as they make their money from the spread between the bid and ask prices of the currency pair you are trading. The Forex market was once dominated by large institutions like banks and brokerage firms for several years. The last few years,the Forex market had experienced a major change because of growing numbers of private investors and traders.

A real benefit when trading the forex market, is that you can pick your own hours,as forex offers a 24 hours a day, 6 days a week hours. The market opens every Sunday at 5pm EST, and closes Friday at 4pm EST. Compare that with the trading day of any given stock market around the world, which is open for 7.5 hours per day only, not counting after hours and pre-market trading. Trading pre and post market hours on the stock market still does not offer the benefits of the forex market.

The knowledge gained in analyzing stocks, can easily be transferred to the forex market. Reading charts and processing data, can help you determine if you want to go long or short on a forex trade.

"The potential for enormous gain, is one of the major reasons, why forex trading is so attractive for investors" comments Mr. Keegan from ForexMarketSytem.com. "Forex trading also offers the advantage of limited risk, as smart investors learn to use margin, to ramp up investment profits".

The ForexMarket System teaches the user to make decisions for themselves, using a trading formula that is very doable.The information is distributed by email,and allows people to learn at their own speed.More information can be found at the companies website, http://forexmarketsystem.com

CONTACT INFORMATION:

Forex Market System
#104 17719 58a ave
Surrey, B.C. Canada
rkfxmarket@gmail.com
1+ 604-576-2820

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