Forex Commerce and Wall Street - A Terse History

By Steve Peterson

Approximately 25 percent of large companies that are exposed to foreign currency fluctuations don't do anything to hedge their risk. Larger companies however do hedge in the currency markets.

For an US based company, when the dollar is strong during their reporting period, accounting for its foreign earned revenue can result in a negative performance. That's because foreign-currency denominated revenue will exchange for fewer dollars when converted and reflect negatively for the accounting period. Having a Wall Street Journal subscription will help find this data.

By some estimates, five to ten percent of Forex activity is the result of pure hedging activity by governments and business. The rest of trading activity is blatant speculation.

High profile players love the Forex market since they don't get locked out due to 24 hour trading. The huge liquidity allows for easy inexpensive entry and exit points.

Forex activity is heaviest in New York from Wall Street between the hours of 8 AM to 5 PM and account for about fifteen percent of all trades. Tokyo accounts for about 10% of trades and is most active 7 PM to 3 AM EST.

The way to make money in the Forex market is by accurately predicting a price movement of a currency pair and investing right before and exiting right after. This usually happens a few times in a day.

Day traders move in and out of trades several times a day capturing a portion of the profit. Large Wall Street companies employ thousands of professional traders that take advantage of daily fluctuations.

There are many financial news services to choose from. The Wall Street Journal's reputation for acute accurate market coverage is legendary. In order to stay abreast of the constantly changing financial landscape, it pays to subscribe to the Wall Street Journal. - 23305

About the Author:

Finding current financial information you know is dependable as well as profit from on is foremost on the minds of traders. Secure a Barrons subscription or buy Wall Street Journal subscription now. Barrons, Investors Business Daily and the Wall Street Journal have led the way for unbiased reporting and analysis. Your subscription gets you miles ahead of the crowd.

Automatic Forex System Trading - What You Don't Know Can Cost You

By Bob K. Drummond

FAP Turbo has probably become the most popular Forex software released ever. It has been sold and used by over 43,000 Forex traders worldwide and is considered by many to be the most profitable Forex robot in the world. But is this merely clever marketing or does FAP Turbo really work?

We can learn reliable information about it from a number of sources:

1. Automatic forex system trading experiments performed on back data over a number of years demonstrated that FAP Turbo delivers very good outputs over time. You can make money no matter how small your account is. In fact you can start with only $50.

2. FAP Turbo was run on live accounts. This isn't back testing on market data which has already happened but real live accounts happening in real time. Developers of FAP Turbo use REAL LIVE trading results to prove that their robot makes money, doubling, tripling and quadrupling the money in your account. This alone is a huge factor in the success of this robot as most other products post the results of back testing, which are based on "what if" scenarios and vary under different market circumstances.

3. There are innumerable reviews by regular Forex traders and experts alike which speak very highly of FAP Turbo. FAP Turbo is designed to give serious investors who are afraid of high-risk trading a piece of mind by implementing a highly effective Stop Loss Strategy.

While it is true that you can get rich overnight trading Forex, doing so would be financial suicide. I know what the official website says but this may not be the case in each and every month and may depend on how much money you trade as well as other factors. Professional traders and banks always manage their risk and so should you. There is no zero risk trading.

Automatic forex system trading is not perfect, and it is possible that you might lose trades once in a while but I know for sure that the profit with FAP Turbo will be greater than its losses. But FAP Turbo is designed to give serious investors who are afraid of high-risk trading a piece of mind by implementing a highly effective Stop Loss Strategy. However, as this robot does have impressive results and has worked for so many traders before you, it is worth trying it out to see how you like it. - 23305

About the Author:

Bob K. Drummond is a successful currency trader. To find out more about FAP Turbo, visit http://fapturbo.iiqtec.com.

Investing In Stocks - Three Market Trends You May Not Be Aware Of

By Mike Swanson

It's a no brainer that there is money to be made investing in stocks. But then it is just as likely you can lose money. The key is to pick stocks that will perform as you want. There are three terms that you may not have heard of and why they are important to you.

DEAD CAT BOUNCE: This is when a stock price increases after a long and sustained downward movement, but the effect is only temporary and the stock reverts to its down ward trend. In many cases the increased price causes investors to buy again and then lose when the price drops again.

Why this is important for stock trading: No one can really predict when a market or stock recovery will happen. It can however provide an opportunity for investors to buy or sell quickly to take advantage of the temporary price increase.

A BELLWETHER STOCK: This is a stock (or security) that usually signals the direction the market will take.

Why is this important? These sorts of stocks usually have a history of correctly indicating which way the market is going to go. They on themselves may not be attractive in terms of gains to be made, but will be useful to watch to get a general feel for the market sentiment.

THE JANUARY EFFECT: This is the effect that sees the beginning of a new year heralding higher stock prices in January. It has been attributed to tax factors and to investor sentiment. People often unconsciously expect prices to rise in a new year.

Why is this important to me? While research shows the effect to be real, it is hard to turn these gains into profits. The chances have become less and less. However it is important to be aware of this phenomenon so that if an opportunity presents itself, you may be lucky to be able to take advantage of it. - 23305

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Triangle Formations In Forex Trading (Part II)

By Ahmad Hassam

Spotting a descending triangle in a downtrend signals the downside breakout of the support level. The crowd psychology behind the descending triangles is that every time the currency price goes down to a certain level that forms the support there are buyers who want to hold that level stubbornly. They thus push the price up each time the support level is tested.

Sellers are quite anxious to sell as they feel that the currency price should fall over time. Thus when the price bounces off the support level, the bears take the opportunity to short again.

Spotting a descending triangle should allow you to be prepared for a downside breakout from the support level especially if it is a down trend. Bulls and bears face a skirmish with both camps not feeling confident of the next market move as with an ascending triangle.

Prices tend to break in the middle or the final third part of the triangle formation. Many of those long positions which have been placed above that level soon get stopped out when the support level is broken.

Unless you have reversal signals in the form of technicals or turn around of the market sentiment, you should always assume the continuation of the prevailing trend. It tends to give off even more bearish vibes than if it is formed during an uptrend if the descending triangle is formed during an existing downtrend.

If the descending triangle appears in the midst of a downtrend, the triangle serves as a continuation pattern. A descending triangle should not be considered to be the final word on impending downside breakout. However, with that said prices also sometimes breakout from above the descending triangle successfully in a burst of bullish momentum.

Symmetrical Triangles: A symmetrical triangle consists of two converging trendlines that join a series of lower highs and higher lows. A symmetrical triangle has some resemblance to a wedge pattern. There are no horizontal lines in symmetrical triangles. This differentiates it from the ascending and the descending triangles.

As they are willing to accept less and less of the price over time, the lower highs reflect the mildly bearish conviction of the sellers. When buyers of the currency pair are willing to pay a bit more to get a piece of action, the higher lows are formed.

A symmetrical triangle tends to be less reliable as compared to an ascending or descending triangle. There is no way to predict the future breakout direction until one of the symmetrical triangle lines is penetrated. As with the other sloping triangles, breakouts usually occur in the middle or the final third of the triangle.

When trading triangle breakouts, you should always consider other pieces of information so that you can better pinpoint a higher probability trade set up. Besides the triangle formation, decreased volatility can also be detected with the exponential moving averages and the Bollinger bands. - 23305

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know These Forex Charts. Learn Forex Trading!

Tips for Choosing a Forex Software

By Bart Icles

Forex Brokers usually provide their clients with Forex trading software, to help make their daily trade transactions easier and more convenient, as well as provide them relevant market quotes for their reference. Online trading has attracted many investors with its promises of fast returns on their investments. True as this may be, it has also created a demand for individuals and financial institutions where their expertise in the currency market is much sought out - particularly in the Forex software segment. There are currently two types of Forex software systems - the web based and the client or desktop based. The type most suited to your needs falls entirely on your part, but you should bear in mind some useful tips to help you decide correctly.

Since the FOREX market is so intense, fast paced and volatile, FOREX software's, in essence, should be able to provide fast, real time market updates that is accurate in a few seconds time in order to keep traders abreast of all pertinent Forex data, to help them in all decision making matters. With so many various trading businesses available today, choosing one to suit your needs may be hard to do.

Before deciding what Forex software to buy, there are some important points you should do to avoid any problems with the software program you have in mind. Security should first, and you should consider looking for a system with a 126 bit SSL encryption to help block out hackers from stealing all your important datas. The right software program should have 24/7 service support for all technical concerns, maintenance and repair issues, and regular information storage backups.

One can never too careful when it comes to anything to do with doing business in the Internet, most especially when it involves Forex currency trading where large sums of money is being dealt with in a daily basis. It's best to look out for the above features with the company you are dealing with to help you decide if the software program offers more benefits to your trading.

Last, but not least, be sure to check if the software you are planning to purchase includes some perks such as free software updates and notifications of relevant Forex training programs to help train you become a well-rounded and well-informed Forex trader. These packages can be a great source of help to gaining some extra insight about the currency market.

Forex currency trading is a very complicated market which can only be simplified with the right Forex software that will help greatly increase your chances to achieving success. - 23305

About the Author:

Come learn how to use forex charting software properly on an online forex trading platform with some skill to better your chance for success in forex trading.