Drawing Correct Trendlines

By Ahmad Hassam

Learning currency trading is like building a new car from scratch without an instruction manual for new traders. Many of them acquire quality parts like brakes, wheels, motors, seats, steering wheels etc to build the car.

To become a successful trader you need right parts with right instructions to put them together. After all, a part such as a $2.00 gasket can bring your car to a screeching halt.

Understand that forex trading is very different from trading stocks. Companies can file for bankruptcies like Enron or GM or Goldman Sachs. Companies go completely out of business taking their share value to zero. However in case of currencies, there is no threat of a country going bankrupt. The only thing that can happen is a loan default by a poor country.

Trade balances and budget deficits play a role in determining the price of a currency. What can happen is that trade balances and foreign capital inflows can cause severe economic pressures on a currency! This can create dramatic changes between the currency values relative to other currencies. When that happens, it can be an incredible financial opportunity for savvy, educated currency traders.

You need to learn how to find the current trend before you enter the markets. For a skilled and educated trader, learning how to spot a trend that can last from a few hours, several days or several months can create an enormous financial return.

Fighting a trend is like swimming against the current and getting drowned. You should always trade in the direction of the market. Traders make many mistakes. The biggest one is trading in the wrong direction.

Suppose you are an active trader. You should have the trading software that has the moving trend line indicator. If not then, you will need to learn the skill of drawing correct Trendlines. An incorrectly drawn trendline can be the difference between making and losing money in a trade.

There are three types of trend lines that you need to learn how to draw. 1) An Inner Trendline. 2) An Outer Trendline. 3) A Long Term Trendline. These three trendlines form on all time frames and in both uptrends and downtrends and you will need them in your trading.

In any uptrend draw a straight line connecting levels of support without penetrating bodies or wicks of a candle. Correctly drawn trendlines can project future levels of potential support in an uptrend and future levels of resistance in a downtrend.

You find and draw inner uptrendlines by finding the last two levels of support and drawing the line from left to right. Similarly draw the outer uptrend line by starting at the far left of the chart and moving to the right connecting the majority of the support levels with a straight line.

Draw the outer term trendline by going on a larger time frame and connect the levels of support starting from the far left of the chart moving forward. In a downtrend, the market reacts the same way as an uptrend but in an opposite direction. That means all the rules are the same but in the opposite direction. Instead of a support level, use the resistance level to draw trendlines in a downtrend. - 23305

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

When To Use Fixed Income Investments

By Amy Nutt

Whether one is living in difficult or robust economic times, it is always important to have an investment strategy that includes relatively safe investments. One form of investment is known as Fixed Income Investments.

Fixed income investment refers to any type of investment that generates an average return. Investors loan their money to a government body, corporation, or financial institution and receive interest on a regular basis. Although the rate of return may not be high, there is comfort knowing the risk is minimal. If a person is seeking to invest their money where there is not a high risk, fixed income investments are usually the solution.

The term fixed-income investment include such investments as bank notes, mutual funds, mortgage backed securities, retirement investments such as GICs, T-Bills, as well as government and corporate bonds, and other forms of securities. While the principal and return are not fail-safe, these fixed-income funds offer the chance for a higher return. They are popular for those planning on retiring in the near future.

GICs are a popular choice as a fixed income investment. The interest and principal are insured to a certain degree so your money is for the most part protected. Fixed-income mutual funds are a good choice for wary investors as they provide the opportunity to predict income over a set period of time. This is handy for budgeting purposes, so people can plan for retirement.

Many prudent investors acquire bonds as a fixed income investment. They generally pay out twice a year or on a monthly basis. Bonds are a tax-free investment income. Such bonds can be federal, state, or local municipality bonds.

Certificates of Deposit allow people to earn interest on their investment without any real risk of loss. It is much like putting money in an insured bank investment for a fixed period of time. It will earn a preset interest rate for a fixed time period. After the time expires, the certificate matures and the investor can cash in the certificate. They will receive their initial investment plus any interest earned.

Savings Bonds pay a fixed interest rate that is delayed until the bond is redeemed or for 30 years. The rate is based on the interest rate at the time of purchase. The interest paid is adjusted for inflation.

If you are about to retire and are in need of an investment with low risk, fixed income solutions can be the right choice. Investment portfolios will benefit by having a safe and secure stock. By combining investments that are affected differently by economic events, investment risk is reduced. These investments are often chosen during periods of market instability. Fixed investments can fluctuate with market conditions. If you have to sell them prior to maturity, you will usually receive a penalty fee.

Fixed Income Investments are a sound choice for cautious investors and those seeking a safe investment for retirement. Most fixed-income investments also provide a foreseeable flow of income. This can be an advantage for those on a pension or social security. - 23305

About the Author:

Whether you're looking for mortgage rates or great GIC rates, with Meridian Credit Union you'll have a customized financial plan that makes sense for you.Just for you.

Online Forex Trading Software Analysis

By Reginald Shiver

Are there any lucrative and authentic online Forex trading software and where can you download them? Having examined several currency trading systems and software, I have come to understand that most of them are not beneficial over the long term even though their systems' reasons makes accurate sense. They are generally disguised as some powerful system and software by able dealers who appear to make good proceeds by selling them to inexperienced traders.

Moreover, there are some genuine Forex programs and software that are really valuable and work to make wealth in the long term. Their owners generally provide useful lifetime maintenance to update their clients about the latest market fashions.

1. How to Create Bucks with an article of Genuine Online Forex Trading Software?

Some of the finest currency devices comprise software that can assist its users analyze market trends and also generates trades and makes money mechanically for its users. The entire package that I use offers me with a basic education on forex trading and what I should do to get started making bucks from currencies trading. It should give you a clearer understanding of Forex trading and also pioneer you to a whole host of tools and software that can make your business processes simpler.

2. What Are the Most Usual disadvantages of Online Forex Trading Software?

Most courses and techniques will want their users to learn and study complicated technical diagrams and terms unnecessarily. These complicated investigations courses can generally be eradicated with the correct business techniques and software programs. These are the perfect kind of devices that generate large financial organizations huge income daily, and dealers worldwide are constantly searching for the most beneficial Forex software. I presently use a software course also known as an Expert Advisor that earns me income consistent every single month. - 23305

About the Author:

Now listen carefully, if you're ready to produce a lot of money in Forex, earning more pips than you ever imagined completely on autopilot, then you must read Chris Rowe's Internal Strength System.

The Forex Market During This Recession

By Michael Fredericks

The biggest question right now is how the Forex market is being affected during these difficult economical times. It seems that even during a looming recession, Forexs performance is holding steady on the currency market and Forex forecasts are correct.

Though it is impossible for traders not to be worried in such a questionable time. It is hard to determine what might happen in this current market situation, and like any other companies, the Forex market may be affected negatively. It is difficult to determine what we should do and when it should be done.

If you are a experienced trader, then you understand that the Forex market has no competition. Your efforts in trading will be rewarded as long as you can leap out on faith and choose the Forex market. We must not be afraid to take risks in this unstable time.

Even experienced traders, though, have been taken aback by some recent developments. The sharp decline of the dollar prior to the overall drop in the fall of 2008 could not have been foreseen. Forex trading depends on taking action based on events occurring in markets elsewhere. Without a clear view of those events, and the overall situation going in unknown directions, many were unclear on what their next move ought to be. Still, while traders can't control what happens in the world, they can and must control their responses and reactions to it.

Last year saw a succession of collapse similar to dominos. The value of the dollar was not fluctuating. The market gave no hint that the large firms and banks on The Street would soon be revealed as so many naked emperors. When all was revealed, overseas investors had grave doubts about any investment on any timeline, now or going forward, and the heavy downward skidding began.

The conventional wisdom at a time like this would be to turn towards Asia. Asian currencies are seen as strong especially in light of the entire region's growth in terms of both production and of demand. The crowd is going to be pursuing Asian investment because it may be seen by some as a safe bet despite the uncertain times.

There's also the question some are asking, which is what's going on with the Swiss? Things have not bottomed out, most people believe, and in fact some places are just in the early stages of the downturn and could take any number of turns. Is Swiss currency the safe harbor some traders are looking for?

It might be a good time to put your energy into the region where demand tends to remain high regardless of what else is going on globally. Rising prices in Asia represent opportunities in the currency markets. Some might see this as a time to re-align, seek change, and develop a new outlook as a boost to Forex market prediction and actions. - 23305

About the Author:

For more information about forex price action, then you can check out this website: Forex Trading Tutorial

Use Best Expert Advisor For Success

By Lukas Veselinov

When it comes to Forex trading, it is always best to learn how to chose best Forex robot, especially if you are planning to be in the game for a while. There is a large number of Forex robots sold on the market today. Each distributor of the robots may claim that their product will offer you the best returns.

In spite of the claims made by the distributors not every robot will provide you with the best results. You have to be careful in selecting the robot that works best for you. Some of the leading robots include Fafturbo, Forex Autopilot and Forex Megadroid.

We can review these programs to help you decide how to chose the best Forex Robot. Forex products such as the FAPTURBO have two integral strategies that include short-term and long-term tools, such as the scalper and the trend trader. The robot works perfunctorily which means you do not have to command the system since it does the work for you. There is an anti-loss algorithm that works silently in the background and this is referred to as the "stealth mode."

The MEGADROID is a complex system that works in a multi-market environment. This robot deals with trends in the market and its market range. It is capable of handling multi-market volatile ranges in the Forex environment. The marketers and company of this product claims that the Forex robot will produce 95.82% of rates with precision. The program has been set up with the most up-to-date artificial intelligence (AI) technology.

For those of you who want 20 divergent choices of indicators that make up the DeMarker, Fractals, alligator and Williams' (%R) Percentage Range then the AUTOPILOT is a good choice. The robot has the facility to chose the trends so that you will be able to trade during the strongest market points. The program allows you to recognize the trends. The indicators are used to spot those trends. You have a streaming flow of results on a structured system that allows you to gain instant entry to the trends while you develop your strategies and mature in the Forex trade.

You have a huge selection of Forex robots to choose from, but to find out how to chose the best Forex robot for you, you will need to scrutinize the market by putting forth some effort to find the best choice. Searching for others who have been in Forex trades and asking them about the different robots may help you find the right program that works for you. Speak with the traders in Forex and learn about their success.

Find out which programs they used. Ask traders online to help you find the top robots that has worked for others. Look for a few success stories from others who have had good experience with using the robots.

Investigate the robots scrutinize the tools and features. Discover which tools and features can best serve you. - 23305

About the Author:

If you are looking for automated forex system recommendation or maybe popular internet and network marketing tips you can check Smart Product Reviews read our reviews and chose the one You like best .To Your success.Lukas Veselinov - Smart Product Reviews Team