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Wednesday, August 5, 2009

A Forex Trading Course on Fundamental Analysis in Currency Trading

By Bart Icles

Forex trading requires a lot of learning about the basics of this profitable yet volatile market. Part of these basics is fundamental analysis. A good forex trading course must include this vital topic as you will need to analyze a lot of different data while you participate in currency trading. With all the information that you will need to take in, it is important that you remember not to allow yourself to be overwhelmed with the seemingly big words as they are relatively easier to understand than what they seem.

In forex trading, fundamental analysis simply refers to the dynamic studies of erratic behaviors, distinct plans, and unforeseen events that, in one way or another, influence the economics of the market. Its focus generally lies on the different economic and socio-political forces that drive the trends in the supply and demand of various currencies. These major forces include government and bank policies, social stability, overall economic trends, and even natural disasters.

Fundamental analysis is significantly valuable in making mid-term and long-term investment calls. However, if you are looking more into day trading, you might want to lessen your focus on these factors and set your sights more on making technical analyses.

Simply put, fundamental analysis covers analyzing different macroeconomic situations. Therefore, economic indicators will play a large part in your investigations. Some economic indicators you might be interested in will include GDP growth rates, retail sales, interest rates, and unemployment rates. These indicators are known to be used heavily in assessing the currency of a certain country. These are also among the most frequently used economic indicators in currency trading. You will also need to learn more about other indicators like consumer product indices, manufacturing production, and manufacturing PMI-ISM.

The economic situation of given country has a direct impact on how its currency fares in the forex world. As a forex trader, you must therefore be able to keep a close eye on financial calendars published by different countries or by private financial groups. Take note that the aforementioned economic indicators are not the only ones that affect the valuation of currencies. There are still technical factors, third-party reports, and many other forces that can significantly affect the power of a certain currency. It is recommended that you study the fundamental economic aspects of different countries while you engage in forex trading so you can have a general, as well as detailed, idea of how certain currencies are performing in the market. - 23208

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FAPTurbo Review Forex Robot

By Frank M. Rivera

When it comes to profiting on the forex market, making good use out of an expert advisor can seriously increase your profitability. One of the better-value robots for money is FAPTurbo. This incredibly popular trading software is easy to add to your trading account and the interface is very user-friendly. But is the FAPTurbo worth all the marketing hype on the internet lately?

The first thing you should know is that the robot costs $149. For an expert advisor that can bring you consistent profits on the forex market, this is a very reasonable price. Other robots on the market charge many times this amount for something that doesn't work quite as good. The low price is part of the reason that people think it might be a scam before they buy into it. They simply can't believe that it's so cheap.

Does the robot actually work? In a word...yes. It works. However, if you're expecting to double your account every single month, then you're probably going to be disappointed. However, for $149, if you could get a robot that would double your account in a year, wouldn't you be ecstatic? I think this is a very reasonable accomplishment for FAPTurbo. In fact, you could probably realistically expect to double your account every 3 or 4 months if your settings are right and you have a good broker.

How does this forex robot make profits? FAPTurbo works best on a scalping level, although it does also have the capacity to act as a longer term trading strategy. With this scalping trading software, you're able to trade and cross-trade four currency pairs. These are the EUR/GBP, EUR/CHF, GBP/CHF, AND USD/CAD.

While being limited to just these few major currencies may be limiting for a more experienced trader, there is more than enough profit to be made by simply trading these simple currency pairings. Using the pricing indicators and strategic tactics offered by the software, each of these pairs can generate healthy profits.

It seems the robot is set to trade throughout the pre-Asian trading session, when it seems that the market is very quiet. This means the choices of the major pairings enter into the ideal ranges for quick scalping. Due to the quietness of the market, it may be worth keeping your trades open a little longer than the usual few minutes. Perhaps even overnight if the conditions permit.

It's worth keeping in mind that no trading robot is able to perfectly predict the market every time. All robots will incur losses from time to time, so don't feel as though this is a software fault. It's a normal part of the risk associated with trading. However, there is also a large potential for regular profits across one or two trades per currency pairing during your trading sessions each day.

FAPTurbo is a good quality robot that represents good quality for money. For the price tag on the software, you can realistically expect to increase your likelihood of turning a profit with each trade. Have a little patience and take some time to work with your robot. When you're more familiar with the way it works, you'll be pleased with your purchase. - 23208

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Stock Indexes (Part II)

By Ahmad Hassam

The Nasdaq-100 is a modified capitalization weighted index. Modified cap weighting involves adjustments to the capitalizations of the various components of the Nasdaq-100 index. The NDX contract at the CBOE is based on Nasdaq-100 as is the MNX.

Frank Russell Company one of the leading global investment consultants is also involved in performance measurement, analysis and investment management. Several Russell Indexes have become benchmarks for specific areas of investment management. Russell 2000 is the well known benchmark for small capitalization sector.

Russell 3000 Index as the name implies includes 3000 issues. These 3000 companies represent 98% of the investable US equities. The index is adjusted for certain factors such as cross holdings and the number of pairs in hands.

Russell 3000 is further split into subsets like Russell 1000 Index. It covers the top 1000 about 92% of the value of the entire 3,000 stock index. The Russell 2000 Index is the smallest 2000 companies in the Russell 3000 Index.

Dow Jones is the publisher of the Wall Street journal. The Wall Street Journal is probably one of the most perfect business franchises from the business point of view. The net worth of most of its readers is in seven figures. Wall Street Journal is a franchise that is very hard to duplicate.

DJIA became an important business barometer over the years. Dow Jones Industrial Average (DJIA) comprising 12 smokestack companies made its debut in the year 1896 and it grew to encompass 30 large industrial companies.

The DJIA is still one of the worlds best known stock measures and consists of 30 largest and most liquid blue chip stocks in the US. The average is maintained by the editors of the Wall Street Journal.

Recently Microsoft and Intel were added to the DJIA. The DJIA unlike the S&P 500, Nasdaq-100 or Russell 3000 Indexes is a price weighted average. The highest price issues hold the most influence over the average.

A 1 percent move in a $90 Microsoft (MSFT) stock would have a greater impact than a 1 percent move in a $30 Intel stock on DJIA as compared on the S&P 500. ETFs exit on many Dow Indexes like the DJIA, the Dow Jones Global Titan Index, the Dow Jones Total Market Index, and various sector indexes.

Wilshire flagship index is the Wilshire 5000 Total Market Index. Wilshire serves over 400 organizations in over 20 countries across the globe representing over $2 trillion in assets.

Over the years, it has increased to 6500 issues representing the increase in the number of companies in the US. It represents the broadest index for the US equity markets.

The Morgan Stanley Capital International (MSCI) database contains nearly 25,000 securities covering 50 countries. One of the advantages of MCSI and its foreign indexes is consistency. It calculates nearly 3,000 indexes daily and services a client base of over 1,200 worldwide. - 23208

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The Basic Facts Of Currency Exchange

By Jerry Barr

Forex is the name given to the currency market. This market exchanges currency between nations permitting companies in one country to pay for goods and services in another. This helps world trade and investments. If you are traveling to Europe, you go to your bank and exchange dollars for Euro dollars so that you have money to spend on your trip. Your bank bundles this exchange with others and then exchanges the greenbacks for Euro Bucks through forex.

The foreign exchange market has no physical location and is open for business 24 hours a day between Monday morning in New Zealand thru Friday night in Asia. The average trading volume is over 3 trillion dollars a day. Margins are relatively low.

The market trades, typically over three trillion dollars a day. Margins are small, but that isn't an issue when trading in amounts this large.

By contrast, about eighty percent of the trading is done by the ten most active traders, which are massive international banks. These traders make up the top tier of the market. The difference between the bid and ask prices at these levels are extremely narrow and unavailable to the rest of the traders. These top tier traders account for 53% of total trading volume. Below the top tier are smaller investment banks, big multi-national firms and massive hedge funds.

More than seventy percent of the the transactions in this market are speculative. Individual traders can only participate thru currency exchange brokers. Brokers may trade against their clients and take other side trades which could lead to a conflict of interest. The market is moving to regulate brokers to stop this situation. This points out another difference between currency exchange and the stock markets. Stock brokers are exactly controlled and can face criminal penalties for acting against their client's interests.

Lots of the transactions, about 70%, are of a hopeful nature. That is, they are done in the hopes of earning a profit instead of an exchange for practical use. Average financiers can only gain access to this market thru a forex foreign exchange broker. Until fairly recently, their were few limitations on the practices of the brokers. There is an ongoing effort to break down and eliminate brokers who take trades that are in contest with the best interests of their clients.

Foreign exchange is a speculative market. Even though it might be less dangerous than high risk stock trading, as with any investment there is a potential for both gain and loss. When shake ups in the market occur, most traders head for the safest, or most stable currencies, like the Swiss franc. This drives the rate of exchange up on those currencies.

Different types of trading instruments include the futures contract which is usually for three months, and the spot transaction which has similarities to a futures contract, but is normally a 2 day exchange. The forward contract boundaries risk somewhat, because money doesn't change hands till a fixed on date in the future. One type of forward contract involves a swap, where two parties exchange currencies for a fixed upon length of time. The foreign exchange option gives the holder the right, but not the requirement to exchange one currency for another an at a previously agreed upon rate of exchange on a pre set date. The option is analogous to a stock option.

The forex market is extremely complicated and with a lot less regulation than the exchange, more subject to abuses. It's advantages are its liquidity and the fact that it trades twenty 4 hours per day. This is a fairly hopeful investment and may be approached with caution by tiny investors. Before considering an investment in forex, you'll need to study the market and the best investment secrets. - 23208

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Why You Should Have A Forex Mentor

By Peter Kimber

Knowledge is power and in forex trading its absolutely essential. Learning the vernacular of trading and knowing a product from the inside out can keep you from feeling overwhelmed as a new investor in forex trading. Because there are so many excellent websites available to learn from choosing the right one for you can be a bit demanding, but learning the fundamentals can make all the difference in the world.

Forex is simply a shortened version of the term Foreign Exchange. Forex trading is trading the currency of one country with that of another. Unlike in Wall Street, there is no central place where this trading is done. All Forex trading is carried out on line or through phone with a network of a huge number of bankers, currency traders and brokers. What must be emphasized here is that the timing of the trade is vital in forex market. If you trade at the right time, you will be rewarded by a sizeable profit.

You need a solid education on forex trading. This will give you the training required to profitably use trade opportunities in the forex market. With such training, you will know when is the right time to trade in a particular currency.

Newcomers to the market who truly want to learn and move forward need to be willing to take the time, and risk, that comes with an advanced and complex forex trading education. The time, money and energy expended is worth it as it will help you learn from trial and error what red flags to look for when making investments so that you dont continue to make faulty trades but instead learn which trades are logical and have the greatest potential for a high yield return.

One of the most important tools in training is opening a model account. This account, a starter account used specifically for training, will help you learn how to manage your investments before you move on to real trading. It will give you a chance to have fun a bit in the market, making mistakes with less risk, and help you become skilled so that when youre ready to open up a trading account you do so with self-assurance.

You can search online for various websites that offer demonstration accounts for free. This would be the best place to go to get your education in trading forex.

Free seminars are available in most cities, a look online at your local investment banks and even local libraries can usually produce several results. Remember knowledge is power; dont be afraid to ask questions, it can only help in the long run.

All the information given above should help you find a forex training program that will best suit you. - 23208

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