forex club

For Beginners

Nikola_dv — Fri, 24 Feb 2012 07:45:04 GMT

In order to become a competent participant of FOREX market, i.e. a professional trader, it is necessary to pass through inevitable stages, acquiring the skills and knowledge which are essential for working on FOREX.

To be a novice trader - does not mean to incur losses. Owing to the fact that the accounts of InstaForex do not have limits to the volume of minimal lot, you can start working with any sum, having the opportunity to reduce risks. Getting more experienced, you expand the volume of trading operations, thus increasing risks as well as the opportunity of collecting higher profit.

3 easy steps on FOREX market:

1 Step. Training on DEMO-account.

Every person can open DEMO-account and learn how to operate the trading terminal and trading strategies for unlimited period of time and absolutely free. Even without having any idea about FOREX market you can try yourself as a trader, opening a DEMO-account. In spite of the fact that all deals on DEMO-accounts appear virtual and are not put on FOREX, you have exactly the same conditions as on live accounts. On a DEMO-account a trader can conduct deals as if he or she were trading on a real account.

No matter how many questions arise, you can try to find the answers working on a DEMO-account, without risks and having the opportunity to open any number of such accounts totally free. Moreover, 24/5 support department is available by ICQ, chat, telephone or e-mail. 2 Step. Trading on the live account.

Having got the hand in working with terminal and learning the main trading strategies, you can try yourself on the real account, limiting your risks. Owing to the absence of limits on minimal deal’s volume you can trade according to the principle "risk=profit", when you define the volume of your investments.

Working on a live account lets you understand and learn more in comparison with a DEMO-account, no matter how seriously you take the virtual trading. Working with real, even minimal funds, you start to feel the connection between your profit and currency movements. This experience is very important for raising to the next level of trader’s development. 3 Step. Professional work.

Having obtained the necessary knowledge, a trader is able to work independently on the currency market, using his own or borrowed trading strategies for collecting profit from currency movements. A professional trader develops the style of his trading and chooses the instruments which are more suitable for his strategy.

Not all new coming traders are able to reach this level, but InstaForex Company guaranties that our team bends every effort in order to help each client to go forward and get professional support if any problems arise.

U.S. Dollar Index - USDX

Nikola_dv — Mon, 24 Oct 2011 15:21:26 GMT

U.S. Dollar Index (USDX) was introduced in March 1973, when the Bretton Woods system ceased to exist. The index shows the ratio of U.S. dollar against a basket of six major world currencies - the euro is (EUR), Yen (JPY), British Pound (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss Franc (CHF). As part of the basket each currency has its own weight:

EUR - 57,6%
JPY - 13,6%
GBP - 11,9%
CAD - 9,1%
SEK - 4,2%
CHF - 3,6%

The composition of the basket of 1973 changed only once - in 1999, when the euro was introduced.

At the time of occurrence of the index had a value of 100 points. Historic lows it reached in March 2008 - 70.7 points, while the maximum was recorded in February 1985 - 148.1 points. The index traded at the time of the global currency markets - 24 hours a day, 5 days a week. Trading is to exchange ICE (Intercontinental Exchange) - The former New York Mercantile Exchange (NYBOT - New York Board of Trade). The index is presented in the form of various traded instruments: the stock market investment funds (exchange traded funds, or ETF), mutual funds (mutual funds), stock options.

The index is calculated as a weighted geometric mean of the above rates as follows:

USDXt = 50,14348112 x (EURt) -0,576 x (JPYt) 0,136 x (GBPt) -0,119 x (CADt) 0,091 x (SEKt) 0,042 x (CHFt) 0,036

In the formula, the power coefficients corresponding to the weights of currencies in the basket. Calculation of the index coincides with the data used in calculating the Fed trade-weighted dollar index of currencies of countries which form the main foreign trade turnover of U.S.. Most of the international trade in the U.S. accounts for the euro area (57.6%), followed by Japan - 13.6% United Kingdom - 11.9% Canada - 9.1%, Sweden - 4.2% Switzerland - 3.6 %.

How to use the dollar index at forex?

It is important to understand whether you like it or not, that the U.S. dollar dictates trends of major world currencies, so the index is an excellent starting point for determining the strength or weakness of U.S. dollar currency pairs.

As a rule, the change trend of the index leads to changes in the trends of the currency pairs in which the USD and myself present. For example, during an uptrend USDX pairs with direct quote will also increase (eg, USDCHF, USDCAD), and a pair on the back - slow down (it EURUSD, GBPUSD).

Using technical analysis tools, such as candlesticks, support / resistance levels, moving averages, you can get an idea of the power of the U.S. dollar in terms of long-term trend, possible long-and short-term reversals, as well as changes in market sentiment.

Fundamental and technical analysis of currency market Forex

Nikola_dv — Mon, 24 Oct 2011 14:49:06 GMT

Fundamental and technical analysis of currency market Forex - is the most enigmatic and unpredictable market in the world. But you can minimize risk and increase your profitability by trading on Forex. This is an analysis of fundamental and technical factors affecting the currency fluctuations. Distinguish fundamental and technical analysis. Each in his own good, each has its fans and followers.

Fundamental analysis

Fundamental analysis - is one way to predict the foreign exchange market. Followers of this type of analysis is that the situation in the forex market can be predicted, based on events occurring in the financial market. This monetary policy of the state, the unemployment rate, the overall condition of the national economy or the financial viability of its leading enterprises.

There are a lot depends on various internal and external factors that affect the position of the national economy and its position relative to other states. If there is a strengthening of the economy of one of the leading countries, this can not affect the partner countries. The same rule applies to a weakening economy.

Recall the recent collapse of the exchange rate and China shares on the stock exchange in March 2007. It would seem, well down on the main Chinese stock quotes, and we are what? And then went to a chain reatsiya for all countries in the world. Quotes fall in London, Moscow, New York. All in the financial world is interconnected, and the position of one currency affects the position of others.

The main criteria for fundamental analysis are generally considered the economic situation in the country under consideration currency, monetary policy, the position of the currency against the currencies of other countries and other "fundamental" aspects.

There is a so-called "economic calendar of events," where is reflected the situation with the economy of many countries. In addition to reports of various governmental and nongovernmental organizations, there is shown the value of indicators of the economy. Everyone knows in advance the schedule publication of statistics of different countries: to what day and what time certain measures will be officially announced, and market participants around the world are trying to predict them.

Technical Analysis

Technical analysis - the area of market analysis, which assumes that the market has a memory and that the future course of motion is greatly affected by the laws of its past behavior.

Prediction of the situation, training and direct work in the market allows us to understand aspects of capital movements, since technical analysis is in itself more objective than random. The main tools of technical analysis are the graphs of currency prices for certain periods of time prior to make deals, and technical indicators are derived from mathematical analysis of characteristics of price movements.

With the advent of modern computers and low-cost software investors and traders have access to technical analysis. Technical analysis allows us to predict the direction and at constant exchange rates.

Technical analysis - a science that demands attention. This type of analysis is interesting primarily because it allows you to work with many of the tools one by one, or both. You can, for example, to analyze the currency pairs to use the Stochastic Oscillator or, as for the analysis of CDF - other tools of technical analysis.

Periodic publications of the technical analysis of business long ago took a strong position. None of the analysis of the Forex market is not without technical data analysis and forecasts for the near future.

How to deal with losses. Two trading rules

Nikola_dv — Mon, 24 Oct 2011 14:39:44 GMT

Trading Rule 1

Decide in advance what counts as a loss in each of the planned transaction. Under "choose" means the following: determine what to do or be a market where all the transactions have been exhausted - at least in part of your trading period.

Unless otherwise come to the losses, the possibility of losing is not threatening to respond with pain. The most successful traders have changed their views on the loss, losing a fortune, and even a few states. Having lived through the most terrible fears losing, then they realize: we simply do what is necessary, and then there will be nothing to fear. But what should you do? Assume that the possibility of error is not excluded, and therefore recognize that loss is not completely avoided. Thus, to admit and accept the inevitability of loss - is a commercial science. Of course, most difficult, it is given, but without it does not lay the foundation, in fact, just what you need to know to become a successful trader.

Asses the current market (and there are relatively few) learned the hard way. Do you have a chance to make the journey easier. This will help two components of the inner world. First - your understanding of why it is important to admit the possibility of loss. Otherwise, you have a fear, but eventually you will come to what is just avoiding. Really mastered the concept of it, you will not be able to trade on the basis of the previous installation to avoid losses at all costs.

The second component - this is your willingness to change their ideas about what it means to "play." This can be done with the help of some of the psychological exercises. I'd rather loaf than to come to the same conclusion at the cost of a full or nearly full market devastation.

The conclusion is: "The loss did not detract from me (ie you) as a person." The sooner you realize this, the easier it will be seen and to stop a losing deal. Stop loss trade automatically, as part of the trading strategy - so be prepared psychologically for the next chance, even if it falls in conditions similar to this unprofitable deal, from which you just came out.

Trading Rule 2

Stop loss trade, barely revealing her. When the criteria for loss determined in advance, and losses are stopped without hesitation has nothing to ponder, weigh, measure and - consequently - nothing to be seduced. In addition, there will be threats to bring yourself to extremes possible - before the crash. If you happen to find yourself that you are considering, weigh or evaluate something - it means you either do not have predetermined criteria for a loss, or do not repress it, hardly revealing. If the second case the transaction will be profitable, you will only be strong in its wrong approach that will inevitably bring you to ruin. If the deal is, on the contrary, it will still losing money, then you're in a vicious cycle of emotional pain, which is difficult to get out. Let the loss take its course - a big mistake. But there is another common oversight - is to abandon the next had the chance, which invariably leads one way - to win. After such blunders happen before people angry at myself, it's easy to commit a new trade or mass missteps misstep - for example, enters into a transaction on the advice of another trader, which invariably leads one way - to lose.

Take yourself on a note the following: achieving full confidence in their ability to prevent the loss, you will eventually reach and to the point where no longer need to define the criteria for loss. Is it possible to achieve such a high degree of objectivity? Yes. And it has achieved. Entering into a transaction, such traders rely on their ability without any criteria to notice when it becomes unprofitable. The market itself will tell them this time - rather, they would understand, based on in-depth knowledge of various market participants and the various relationships between price movement and time. How could they have learned so well-versed in the market? The fact that the terms of their focus expanded by increasing the volume of undistorted information. They became keener, but first learn to trust yourself. Remember that fear - it is really the only thing that prevents a person to learn new things. After all, how to know more about the behavior of the market, when fear: what not to do what you want? suddenly do something that is not necessary? He who learns to identify the criteria for loss and prevent it in the bud, open to the development of the best ways to make way for profit.

The best time for bargains

Nikola_dv — Mon, 24 Oct 2011 14:12:21 GMT

There are a few tips on what time it is best to make transactions on the Stock Exchange trading. In fact, the information on this issue is not so much because it is not particularly popular with traders. However, there are several recommendations that could and should be followed.

Recommendation One: The best time to conduct operations with currency pairs PD, franc, euro - this is the period from 10:00 to 22:00. With those currency pairs, which include the yen, the best work in the morning, starting at 3:00 AM and 8:00, and the late afternoon, from 15:00 to 22:00 (GMT time).

The second recommendation - it is necessary to use the calendar, news of the economic world. Warrant in this case should stand for quite a short time before the news.
It should be noted that the second recommendation of listening is not all: many believe that it should not be in the market during the news. These people follow its rules for the timing of transactions, namely:

1. When conducting transactions scheduled in accordance with the daily schedule, the question of "when?" Solved automatically. Should be an analysis of a new candle when it occurs, or later at night or early morning.

2. When conducting transactions planned by H4, the question of "when?" In principle does not arise. The key point in this case is the appearance of certain images, which, for example, will be visible when the price reached the borders of the channel, etc. So browse the schedule must state each time, as will a full cycle period, ie four hours at least once to look at.

3. When conducting transactions or open them, they plan on H1 (M30, M15, M5), then the wisest is the following approach. It is established that the largest fluctuations in the market place at the same time. These are:
a) early in the morning, with three to five hours
b) in the 10:30
c) an hour in the afternoon (ie at 13:00)
d) a long period of from four to seven hours in the afternoon. Moreover, the peak of excitement usually takes place at 16:45 and 18:30.

Of course, these recommendations can not be a direct guide to action: someone totally agree with this information, someone may object, or add your own. However, noticed that using the proposed advice and showing the order in specified time intervals (that is, doing everything as described above), you can get good results!

Forex strategy

Nikola_dv — Mon, 24 Oct 2011 09:11:48 GMT

Trading in financial markets is a serious business, which is based on a set of trading practices, known as succinct word strategy.

Section "Forex Strategy" provides an excellent holistic plan for the work. It consists of components such as the Trading System, which supplies signals to enter the market, as well as methods for calculating purposes. Trading systems are hosted in this section includes not only mathematics (based on indicators), but also graphics - for example, the Fibonacci levels.

Immediately warn that the use of strategies offered in this section, it is not guarantee profits. You can use them as sources of ideas that you can add in your own trading strategies.

The list of strategies:

How to calculate the aims of the movement: Average True Range

Fibonacci Method Joe DiNapoli

As a hedge against currency risks

The eternal value of gold

Nikola_dv — Sun, 04 Sep 2011 04:34:54 GMT

The eternal value of gold
Gold prices continue to hit new historical record: successfully overcome bar in 1800 dollars, and now to take the heights in 1900 dollars per troy ounce. At a time when global economic recovery in question, and the supply of U.S. dollars from the Federal Reserve System in the next so-called quantitative easing is growing, investors prefer not to risk it and buy tools, time-tested.

It is obvious that as long as the debt crisis in Europe and slowing U.S. economy will not be terminated, gold remains as the main source of stability. Moreover, the attraction (ie value) of the precious metal could still rise. Gold increases in the price for 11 consecutive years, from the beginning of this year, the yellow metal has gained 34%. It is noteworthy that the trend in demand for gold is supported not only by institutional investors and private players and central banks that seek to replenish their reserves: in the second quarter of 2011, they purchased 70 tons of gold bars.

The demand for gold increases around the world. And what remains to be done to investors, when trust in traditional, seemingly unshakeable investment, like treasury bonds of the United States, now is not as strong as before?

Gold turns to a new world currency - the landmark of the entire financial community. Let this temporary defensive asset, but it is the reality: alternative simply does not exist now.

Euro meets the downside risks

Nikola_dv — Sat, 03 Sep 2011 19:23:45 GMT

Euro meets the downside risks.
Euro expect significant downside risks in the coming weeks, they say in Deutsche Bank, pointing to the difference in interest rates and yield spreads on government bonds. The bank added that a stronger tendency to soft-policies the president of the European Central Bank / ECB / Jean-Claude Trichet next week can help boost confidence in the currency markets over the use of the euro as the currency borrowed. As noted in the Deutsche Bank, there is little indication that the pressure on European financial markets will weaken in the coming weeks, due to the fact that the austerity measures, the volatility in the market, slowing growth and political risks creating a negative feedback to the crisis in the peripheral countries of Europe . Moreover, the flow of funds to developing country markets has slowed, suggesting that the normal demand of central banks in the euro could fall and have a single European currency, less support. As of this writing, the euro / U.S. dollar was trading at 1.4230.

The U.S. currency continued to demonstrate its advantages

Nikola_dv — Sat, 03 Sep 2011 19:12:30 GMT

The U.S. currency continued to demonstrate its advantage against European and high-yielding currencies in trading Thursday. In addition, at yesterday's session of the "greenback" has registered growth over and against one of the major currency of refuge - the yen. Obviously, the emergence of data on the economy, celebrating the positive results recorded on the market, not only as signs of improvement in the recovery process, but also as a factor that dramatically reduces the likelihood that the Fed will launch QE3 in the near future. At the same time, evidence of lack of confidence in the power of "green" can be considered the fact that the Swiss franc continued to rise against the U.S. currency.

Most of the news on the U.S. economy possessed a good mood - the number of initial claims for unemployment benefits last week fell by 12 thousand to 409 thousand, as expected reduction in only 7 thousand secondary applications also declined by 18 thousand, bringing the total number to 3 735 thousand, this situation raised the popularity of the dollar, but the level of the primary requirements in excess of 400 thousand reflects the continuing weakness of the labor market.

Positive, contained in the report of the Institute for Supply Management (ISM) also supported the dollar - in manufacturing activity in August, not down in the zone of recession - lower than 50, as suggested by forecasts. The manufacturing ISM index in August fell only to 50.6 after 50.9 in July, while the new orders index rose in August to 49.6 vs. 49.2 previously, causing the optimism about the prospects, but that's an indicator of employment in August fell to 51.8 from 53.5 the previous month . Were disappointing data on expenditure on construction in the U.S..

In July, a sharp decline, spending fell by 1.3% compared to the previous month and amounted to 789.51 billion dollars a year. Forecasts expected the opposite trend - growth of 0.3% m / m. The main theme of today's news package on the U.S. economy will, of course, employment. The market will present a report on work in August, it is assumed that the number of jobs outside of agriculture increased by 75 / 90 thousand after that in July there was 117 thousand, the unemployment rate expected at the same level - 9.1%.

Obviously, this information will be increased indicative for the approval of views regarding the next phase of quantitative easing, ie will come close to answering the question - what is the probability of making decisions about the beginning of the QE 3 at the next meeting of the Fed. Good progress report on employment can give a strong impetus for the dollar, as reinforce doubts about the next round of quantitative easing in September.

Restrain the growth of the Swiss franc has become increasingly difficult

Nikola_dv — Sat, 03 Sep 2011 19:06:08 GMT

Restrain the growth of the Swiss franc has become increasingly difficult.
For some time, the Swiss National Bank may have believed he had achieved his goal. Substantial liquidity injections a couple of weeks ago boosted the euro by almost 20% against the Swiss franc as well as reduce the direct pressure on exporters currency of Switzerland. But everything went wrong again in the last few days. And, taking into account recent developments, the upward pressure on the franc, perhaps this time will be amplified. Firstly, there is a limit to how much the Swiss National Bank may intervene in order to reduce the rate of the franc. The solution of the Swiss National Bank to carry out injection of liquidity of about 20 billion francs was made after the bank seems to have realized that direct intervention in the forex market, like the one he had at great expense spent a couple of years ago, can achieve significant results in struggle with the pressure on the market. Therefore, the bank implemented a liquidity injection to try to further reduce market rates and make deposits in francs less attractive. However, money markets of Switzerland just not big enough to cope with such injections, and when you are done two weeks ago, the central bank again left the market.